Harshdeep Hortico Ltd Management Discussions

1. INTRODUCTION:

Our Company was originally incorporated as a Limited Company under the name "Harshdeep Hortico Limited" on December 30, 2022 under the provisions of the Companies Act, 2013 with the Registrar of Companies, Mumbai, Maharashtra bearing CIN U26994MH2022PLC396421. Later, on April 03, 2023, our Company took over the business of proprietorship concern of the promoter Hitesh Chunilal Shah, namely M/ s Harshdeep Agro Products along with the assets and liabilities of the proprietorship concern as going concern.

We are primarily engaged in the business of designing, developing, manufacturing, and supplying of various types of pots and planters like: plastic Indoor Planters, Outdoor Planters, Illuminated Planters, Decorative Planters, Roto Moulded Planters, Fiber Reinforced Plastic (FRP) Planters, Eco series Planters etc. along with related accessories like Garden Hose Pipe & Water CaN.Apart from this recently we have also entered into the field of Roto Moulded Outdoor Furniture.

2. INDUSTRY STRUCTURE:

The resilience that global economic activity exhibited earlier this year is expected to fade. Growth in several major economies was stronger than envisaged at the beginning of the year, with faster-than-expected economic reopening in China and resilient consumption in the United States. Nonetheless, for 2023 as a whole, global activity is projected to slow, with a pronounced deceleration in advanced economies and a sizable pickup in China. Inflation pressures persist, and the drag on growth from the ongoing monetary tightening to restore price stability is expected to peak in 2023 in many major economies. Recent banking sector stress will further tighten credit conditions. This will result in a substantial growth deceleration in the second half of this year. This slowdown will compound a period of already-subdued growth over the first half of the 2020s (20202024), growth in EMDEs is expected to average just 3.4 percent, one of the weakest half-decades of the past 30 years. This slowdown reflects both cyclical dynamics and the current trend of declining global potential output growth.

3. INVESTMENTS/ DEVELOPMENTS:

The Government of India, from time to time, has made policy pronouncements on Foreign Direct Investment ("FDI") through press notes and press releases.

Strength:

• Diverse range of products across consumer preferences.

• Consistent focus on Quality

• Revenue from multiple geographies

• In-house Manufacturing capabilities

• Experienced and Qualified Management

Opportunities:

• Vast Industrial Presence in both Public and Private Sectors

• Huge demand for Domestic services

• Avail of Low-cost, Skilled Human Resources.

• Proactive government continued thrust on reforms- Further liberalization under process.

Threats:

We operate in a competitive atmosphere. Some of our competitors may have greater resources than those available to us. While product quality, brand value, distribution network, etc are key factors in client decisions among competitors, however, price is the deciding factor in most cases. We face fair competition from both organized and unorganized players in the market. We believe that our experience in this business and quality assurance will be key to overcome competition posed by such organized and unorganized players. Although, a competitive market, there are not enough number of competitors offering services similar to us. We believe that we are able to compete effectively in the market with our quality of services and our reputation. We believe that the principal factors affecting competition in our business include client relationships, reputation, and the relative quality and price of the services.

5. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

Currently, we market our products to around 27 states & Union Territories in India of which majority portion of the revenue comes from the state of Maharashtra. We had also exported our products from our Proprietorship concern- M/s Harshdeep Agro Products in past to countries such as Djibouti, East Africa, United Kingdom, Nepal etc. Our revenue from exports for fiscal 2023 and 2022 was Rs.75.58 lakhs and Rs.70.25 lakhs respectively which constituted 1.85% and 2.02% of our revenue from operations for the respective fiscal.

Our company has diverse product portfolio across various segments of pots and planters which includes Roto Moulded Series, Grower Series, Indoor Series, FRP Series, Illuminated Planters etc. along with related accessories. We deal in a wide range of products, which enables us to cater widespread customer base across various states in India and also expand our reach in international locations. We believe that we have necessary resources and experience that can be customized and leveraged to cater to wider range of planters as per requirements of the customers.

Recently, we have also entered into the field of Roto Moulded Outdoor Furniture that designs outdoor illuminated furniture for gardens keeping in mind customers outdoor living area, offering options to accommodate gardens of any size or shape. We have also introduced an Eco-friendly series of planters "Eco Series" which are planters crafted from a blend of sustainable materials, including rice husk and natural fibers. Our commitment to diversity empowers us to meet the requirements of customers.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Share Capital: During the year under review, the Company has increased Paid-up Share capital of Company as per details mentioned below:

Reserves and Surplus:

The Reserve and Surplus of Company is Rs. 21,03,08,174 as on period ended on 31st March, 2024.

Total Income: The Company has earned total Income Rs. 48,42,31,773 as on period ended on 31st March, 2024.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Your Company follows a policy of building strong teams of talented professionals. People remain the most valuable asset of your Company. The Company recognizes people as its most valuable asset and the Company has kept a sharp focus on Employee Engagement. The Companys Human Resources is commensurate with the size, nature, and operations of the Company.

9. DETAILS OF KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE:

10. FORWARD-LOOKING STATEMENT:

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates, and others may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, whether expressed or implied. Several factors could make a significant difference to our operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, any epidemic or pandemic, and natural calamities over which we do not have any direct/indirect control.

Hitesh Chunilal Shah

Chairman and Managing

Director

DIN - 09843633

Place: Thane

Date: 14-09-2024.