Halder Venture Ltd Management Discussions.
A) INDUSTRY STRUCTURE AND DEVELOPMENT
Haider Venture Limited is mainly engaged in Trading of rice and cashew nuts as its principal business. Rice is the staple food of 65% of Indias population and its cultivation is a major source of employment in South Asia. India, Bangladesh and Pakistan supply almost 30% of the worlds paddy rice. India is one of the worlds largest traders of rice, accounting for about 20% of all world rice trading where our Company is also primarily present. The Indian production of cashews is around 4.6 lakh tons per year. As India is the largest processor country in the world, it is left with more quantity for exports that also makes it the largest exporter in the world cashew market. It annually exports around 4 million cartons in one year. There is a cohesive focus on maintaining the demand supply balance in the country. 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
Favorable policy initiatives towards exports are encouraging the rice industry and cashew nuts industry towards higher exports. Increasing popularity of rice-based snacks, cashew nuts and other eatables made of cashew nuts is increasing institutional demand. Growing popularity of large format retail is enabling marketers to launch and display more and more specialized varieties, leading to higher than usual off take off the shelves. Marketers response with niche variants for restaurants is also adding to the growth. Indian prices of agriculture commodities are controlled by the Government. The Minimum Support Price for Paddy (Common) has increased from 1550 per quintal in 2017-18 to 1750 per quintal for the year 2018-19 and Paddy (Grade A) has increased from 1590 per quintal in 2017-18 to 1770 per quintal in 2018-19. 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. The Company has started trading of cashew nuts also from previous year, revenue from which constituted 55.41% of the total standalone revenue of the Company whereas trading of rice formed 44.59%
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 industry as well as the cashew nut industry appears to be better and is 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 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 and there was no incidence of strike, lock out etc.
|For and on behalf of the Board of Directors|
|Date: May 30,2019||KESHAB KUMAR HALDER|
|Place: Kolkata||MANAGING DIRECTOR(DIN: 00574080)|