halder venture ltd Management discussions


(a) Industry Structure and Development: Halder Venture Limited is mainly engaged in Trading of rice as its principal business. Rice is the staple food of 65% of Indias population and Indias total area of rice cultivation is around 44 million hectares, whereas the overall rice production accounts for approx 144 million tons. There is a cohesive focus on maintaining the demand supply balance in the country. This year onwards the Company has also explored into the business of palm oil. Palm oil refers to an edible vegetable oil that is naturally extracted from the mesocarp of palm fruits. Palm oil currently represents the most consumed edible oil in India followed by soybean oil and mustard oil. As per the statitical data, the Indian palm oil market is to exhibit a growth rate of 5.6% during 2023-2028. The Company is expected to continue to be a dominant player in the agricultural sector with increasing demand for processed food in recent years with the growth of population, rapid urbanization and changing life styles.

(b) Opportunities and Threats: The booming agri-market has remained a major priority for the Indian government. To substantiate, the guidelines on import and subsidies have generously upscaled farming and the rice market. Further, the Government has introduced major policies concerning factors associated with the rice market trend such as the Minimum Support Price (MSP) Scheme which removes non-tariff barriers, and contributes to increasing Indian rice market value. Furthermore, it has also doubled the demand for Indian rice globally. Similarly, the implementation of schemes like Pradhan Mantri Fasal Bima Yojana (PMFBY), Pradhan Mantri Krishi Sinchai Yojana (PMKSY), and Soil Health Card Scheme (SHCS) are additionally the major steerers.

Speaking of palm oil market, compared to other oil crops, the oil palm produces high yields, is easy to cultivate and bears fruit all-round the year. Oil palm produces 10 to 46 times more oil per hectare compared to other oilseed crops and has yield of around 4 tons of oil per hectare. The Government has recently launched a Mission on Oil palm to be known as the National Mission on Edible Oils - Oil Palm (NMEO-OP) as a new Centrally Sponsored Scheme.

The Companys main threat is competition from multinational giants and local entrepreneur who are also engaged in this industry.

(c) Segment-wise or product-wise performance: The Company is a single segment company therefore details of segment-wise performance is not applicable.

(d) Outlook: Outlook for the current year remains strong.

(e) Risks and concerns: The Companys operations are subject to risks which can impact business performance essentially with regard to prices of basic materials. The management assesses such risks and takes measures to address the same. The fundamental of the rice and the palm oil industry appear to be better and are growing fast because of the improvement in the agricultural sector. The Company is committed to adhere to all applicable environment regulations and improve upon the environmental performance on a continued basis.

(f) Internal control systems and their adequacy: The Company has an adequate system of internal control procedure as commensurate with the size and nature of business, which ensures that all

assets are safeguarded and protected against loss and all transactions are recorded and reported correctly.

(g) Discussion on financial performance with respect to operational performance: The

Management is pleased to report that the Companys business plan is progressing as per the Managements satisfaction. The year in review shows a moderate performance by the Company with respect to sluggish demand in the agricultural industry. The present order position is healthy and we are expecting the markets to improve both in terms of liquidity and also demand in the coming years.

(h) Material developments in Human Resources / Industrial Relations front, including number of people employed: The Company believes that human assets constitute the driving force behind the Companys growth plans and has a healthy management and worker relationships and pledges to strengthen the same to improve quality of work culture and productivity. The human resource/ industrial relations remained cordial throughout the year.

Date: 14.08.2023

For and on behalf of the Board of Directors

Place: Kolkata

(KESHAB KUMAR HALDER)

(MANAGING DIRECTOR)

(DIN: 00574080)