m s securities ltd Management discussions

ANNEXURE- C

(Forming part of Directors Report for the year ended 31st March, 2023)

Swadha Nature Limited (Formerly Known as MS Securities Limited) (“the Company”) is a public listed Company incorporated in February 12, 1992. The equity shares of the Company are listed on BSE Ltd and CSE Ltd. since the Year 1995 under Security Code No.: 531039 at BSE and 023059 at CSE.

Overview

The Company is engaged in Agriculture Sector and agriculture plays a vital role in Indias economy. 54.6 of the total workforces is engaged in agriculture and allied sector activities (Census 2011) and accounts for 18.6 % of Indias GVA at current prices during 2021-22. Given the importance of the agriculture sector, Government of India has taken several steps for its development in a sustainable manner.

India is one of the major players in the agriculture sector worldwide and it is the primary source of livelihood for ~55% of Indias population. India has the worlds largest cattle herd (buffaloes), the largest area planted for wheat, rice, and cotton, and is the largest producer of milk, pulses, and spices in the world. It is the second-largest producer of fruit, vegetables, tea, farmed fish, cotton, sugarcane, wheat, rice, cotton, and sugar. The agriculture sector in India holds the record for second-largest agricultural land in the world generating employment for about half of the countrys population. Thus, farmers become an integral part of the sector to provide us with a means of sustenance.

Consumer spending in India will return to growth in 2021 post the pandemic-led contraction, expanding by as much as 6.6%. The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year due to its immense potential for value addition, particularly within the food processing industry. The Indian food processing industry accounts for 32% of the countrys total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

Market Size

According to Inc42, the Indian agricultural sector is predicted to increase to US$ 24 billion by 2025. Indian food and grocery market is the worlds sixth largest, with retail contributing 70% of the sales. Indias agricultural and processed food products exports stood at US$ 43.37 billion in FY23 (April 2022-January 2023). As per Second Advance Estimates for 2022-23 (Kharif only), total foodgrain production in the country is estimated at 153.43 million tonnes. At current prices, agriculture and allied sectors account for 18.3% of Indias GDP (2022-23). As per the third Advance Estimates of National Income, 2021-22 released by the National Statistical Office (NSO), Ministry of Statistics & Programme Implementation, the agriculture and allied sectors contributed approximately 18.6 % of Indias GVA at current prices during 2021-22. Between April 2000-December 2022, FDI in agriculture services stood at US$ 4.43 billion.Rapid population expansion in India is the main factor driving the industry. The rising income levels in rural and urban areas, which have contributed to an increase in the demand for agricultural products across the nation, provide additional support for this. In accordance with this, the market is being stimulated by the growing adoption of cutting-edge techniques including blockchain, artificial intelligence (AI), geographic information systems (GIS), drones, and remote sensing technologies, as well as the release of various e-farming applications.

In terms of exports, the sector has seen good growth in the past year. In FY22 (April 2022-February 2023)

Exports of marine products stood at US$ 7.4 billion.

Exports of rice (Basmati and Non-Basmati) stood at US$ 10.2 billion. Buffalo meat exports stood at US$ 2.88 billion. Sugar exports stood at US$ 5.28 billion. Tea exports stood at US$ 759.96 million. Coffee exports stood at US$ 1.01 billion.

Opportunities and Threats

Increase in income levels will aid greater penetration of new customers and purchasing power of the consumer market.

Positive regulatory reforms including MSP.

Increase in corporate growth & risk appetite.

Greater efficiency in debt market operations which will also help greater penetration.

Increase in demand of natural base and agriculture product in the market

Focus on selling new product/services.

Global recession and increase in minimum wages of labour

Inflation could trigger increase in consumer price inflation, which would dampen growth.

Increased competition in both local & overseas markets.

Unfavorable economic development.

Segment wise or product wise performance

The Company has identified its activities as single segment. Hence, the Companys performance is to be viewed as a single segment company operating in agricultural produce, Chemical and natural extracts Industry.

Recent trend and future outlook

Notwithstanding global uncertainties, regulatory tightening and cyclical economic downtrend, chemical industry in India on the whole, will continue to much ahead at a healthy pace in the long term. We expect more favourable policy in the coming years for chemical and agricultural segment to remain stable or move southward and liquidity to ease in the coming quarters. This should augur well for demand growth also. However, your company is making all possible efforts will improve its position.

Risks and Concerns

Like any other industry, this industry is also exposed to risk of competition, government policies, natural factor etc. As the Company is proposed to export raw materials/ finished product, the Company has risk on account of Exchange Rate fluctuations. The Company has taken necessary measures to safeguard its assets/interests etc. Prolonged limited economic activities due to fear of world war resulting from Ukraine Russia war, would severely hamper demand of our product in domestic and international markets.

Internal Control Systems and their Adequacy

The Company has proper and adequate system of Internal Controls to ensure that all the assets are safeguarded, protected as against loss from unauthorised use or disposition and that transactions are authorised, recorded and reported correctly.

The Company conducted the audit of various departments through an independent internal auditor. The views of the statutory auditors are also considered to ascertain the adequacy of the internal control system.

Discussion on financial performance with respect to operational performance

The Company has adopted Indian Accounting Standards (Ind AS) from 01st April, 2017, accordingly, the financial statements for the Financial Year 2022-23 have been prepared in accordance with Ind AS.

The Net Worth of the Company as on 31st March, 2023 is Rs. 62.98 lakh. The Total Revenue and Net Profit (after tax) of the Company during the year under review was Rs. 7.71 lacs and Rs. 0.67 lacs respectively as compared to Rs. 0.00 lacs and Rs. (15.44) lacs respectively in the previous year.

Material Developments in Human Resources/ Industrial Relations front, including number of people employed

Human resources are considered as one of the most critical resources in business which need to be continuously nurtured to maximize the effectiveness of the organization. The Company recognizes its employees as a critical asset of the organization and lays due emphasis on all round development of its employees. Various initiatives have been taken up for developing employees at all levels and to make them future ready for higher roles and responsibility.

Cautionary Statement

Statements made herein describing the Companys objectives, projections, estimates and expectations may be ‘forward looking within the meaning of applicable laws and regulations. As forward-looking Statements are based on certain assumptions and expectations of future events over which the Company exercise no control, the Company cannot guarantee their accuracy nor can it warrant that the same will be realized by the Company. Actual results may differ from those expressed or implied. Important factors that could make a difference to the Companys operations include changes in Government regulations, tax laws, economic developments and other incidental factors.

Place: Patna	By Order of the Board of Directors
Date: 10/08/2023	For Swadha Nature Limited
Registered Office:	(Formerly Known as MS Securities Limited)
601B, Ashiana Plaza Budh Marg,	Sd/-
Patna- 800001, Bihar	Dipakkumar Shah
CIN: L01100BR1992PLC004781	Managing Director
Email: swadhanaturelimited@gmail.com	DIN: 08234203
Website: www.snl.in.net