Indo US Bio-Tech Ltd Management Discussions.

BUSINESS HIGHLIGHTS Turnover:

Indo Us Bio-Tech Limited has turnover of Rs. 35,34,79,981 in 2018-2019.

Employee Benefit Expenses:

Employees emoluments (other than managerial remuneration) is Rs. 58,88,828/- during the year as against Rs. 54,41,460/- during the previous year.

Administrative and Selling Expenses:

Major components of administrative and other expenses includes Bank Charges & Commission, Sales Promotion & Presentation, Brokerage & Commission, Site Exp., Legal and Professional Tax, Rent, listing fees, insurance premium, Sundry Exp., Bad Debts written off, etc. Administrative and Selling expenses for the year amounted to Rs. 1,73,81,786 as against Rs. 1,82,73,910 during the previous year.

Interest and Finance Charges:

Interest and finance charges / bank charges during the year come to Rs. 39,56,410 as against Rs. 72,05,992 during the previous year.

Depreciation:

Depreciation charge for the current year came to Rs. 24,01,654 as against Rs. 15,41,297 of the previous year.

Provision for Tax:

The Company has make provision towards current tax of Rs. 43,05,630 and deferred tax of Rs. 29,00,649 & short provision of Rs. 16,946 as against Rs. 45,35,734 of the previous year and deferred tax was 13,78,161.

Profit/Loss after Tax:

The Company has made profit after tax for the current year is Rs. 2,08,82,959 as against profit of Rs. 1,44,91,033 during the previous year. The Directors are hopeful for the better performance in the future.

Earnings per Share:

Basic and diluted earnings per share for the current year worked out to Rs. 4.45 as against Rs 4.23 during the previous year.

Financial Condition:

Non Current Liabilities:

The Companys Non Current Liabilities includes Long Term borrowings of Rs. 1,28,80,241 as at 31st March 20 against Long Term Borrowings of Rs. 1,78,44,932 as at 31st March 2018.

Current Liabilities:

Companys Current Liabilities includes Trade payables and Other Current Liabilities which are amounting t 8,67,68,867 as at 31st March 2019 against Rs. 10,41,85,742 of the previous year.

Fixed Assets:

Net block of the fixed assets at the end of the year is Rs. 2,54,10,246 as against Rs. 1,50,11,092 in the previous ye

Current Assets:

During the year, the Company has current assets of Rs. 21,21,60,614 against Rs. 15,26,68,239 of the previous ye

SEGMENT WISE PERFORMANCE :

The company is an ISO 9001-2008 Company involved in crop Research and Development through breeding, Produ of seeds, processing, packing and marketing of high performing hybrid and open pollinated varieties of agricu crops. Your company has adopted various marketing strategies for sustained growth including increase in numb clients / customers to reduce the dependency on any single client / customer.

BUSINESS OVERVIEW:

Industries overview:

The management is confident of improvement in the companys working in the near future with fast growth.

The seed industry has witnessed a substantial change in the past century, with farmers re- lying on purchasing se from market with better traits rather than relying on seeds from previous season‘s harvest. Developments in see technology have increased the momentum of the industry‘s growth, and the introduction of genetically modi- fi crops has further boosted the seed market.

Diversified Product Portfolio:

Companys Product Portfolio includes diversified variety of agriculture seeds namely vegetable seeds, oil seeds, pulse seeds, cereals seeds, spcies seeds used in cultivating all kinds vegetables, pulses, crops like Tomato, Okra, Brinjal, Onio Bit Root, cucumber, Bottle g ourd, groundnut, mustard, Bajra, Wheat, Cumin, Corainde etc. Wide range of products allows the existing customers to source most of their product requirements from a singl vendor and also enables the company to expand the business from existing customers, as well as address a larger bas of potential new customers.

Well Equipped Research and Development facility:

Company has a well equipped Research and Development facility to improve quality of the products and to produce hig performance of agriculture seeds. The R&D team includes plant breeders, crop protection specialists, agronomists, see technologists, biotechnologists and physiologists.

Well Established in Domestic as well as Export Market:

Company is catering the customers needs both in domestic market as well as overseas market.

Broad base Distribution Network:

Company is having wide distribution network in the state of Gujarat, Maharashtra, Madhya Pradesh, Chattishgar Rajasthan, Himanchal Pradesh, Punjab, Bihar, Uttar Pradesh, Karnataka, Jharkhand etc.

They also export to many countries namely USA, New Jersey, Palestine, Maimi USA, Cameroon, Kuwait, Srilanka an Mauritius etc through direct or Merchant Export.

SWOT ANALYSIS OF THE COMPANY : Strengths:

Huge collection of Germplasm Indepth knowledge of industry

In-house Research and Development (R&D) unit Broadbase Distribution Network

Weaknesses:

Dependency upon external factors like climate, weather conditions

Hybrid seeds are costlier than natural seeds, farmer prefers natural seeds rather than Hybrid seeds No Intellectual protection of all our products Time period for developing product is long

Opportunities:

Government initiative to promote agriculture industry will help our industry to grow Continues development in R&D work resulting into yielding of new product (seed) Abundant water, electricity and subsidies to farmer by government will help the agriculture industry to grow

Threats:

Competition from producer of certified seed Industry is prone to changes in government policies

No entry barriers in our industry which puts us to the threat of competition from new entrants Fluctuations in the market prices

E. RISKS AND CONCERNS:

Your company is mainly focusing on manpower and the intelligence. Apart from the risk on account of governmental policies and regulatory changes, business of the company are exposed to certain operating business risks, which is mitigated by regular monitoring and corrective actions. The company has taken necessary measures to safe guard its assets and interest etc.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The company has proper and adequate system of internal controls commensurate with its size and nature of operations to provide reasonable assurance that all assets are safeguarded, transactions are authorized, recorded and reported properly and to monitor internal business process, financial reporting and compliance with applicable laws.

The internal control system has been designed so as to ensure that the financial and other records are reliable and reflects a true and fair view of the state of the Companys business. A qualified and independent committee of the Board of Directors actively reviews the adequacy and effectiveness of internal control systems and suggests improvements for strengthening them.

G. HUMAN RESOURCE MANAGEMENT :

The Company believes that human resource is the most important assets of the organization. It is not shown in the corporate balance sheet, but influences appreciably the growth, progress, profits and the shareholders values. During the year your company continued its efforts aimed at improving the HR policies and processes to enhance its performance. The vision and mission of the company is to create culture and value system and behavioral skills to insure achievement of its short and long term objectives.

Cautionary Statement:

Statement made in the Management Discussion and Analysis Report describing the companys o projections, estimates, expectations may be “Forward-looking statements” within the meaning of securities laws and regulations. Actual results could differ from those expressed or implied. Importa that could make a difference to the Companys operations include economic conditions affectin supply and price conditions in the markets in which the company operates changes in the go regulations, tax laws & other statutes and other incidental factors.