Mawana Sugars Ltd Management Discussions

REPORT

Sugar season 2023-24 started with the overall industry opening stock at 57 Lac Tons. All India Production of sugar is estimated to be around 320 Lac Tons (against initial estimates of 305 Lac Tons) and domestic consumption at 285 Lac Tons. As a result, the closing stock of sugar as on 30th September,2024 is estimated to be around 92 Lac Tons which is sufficient for 4 months consumption.

Sugar selling price during April 2023 to March 2024 moved in the range of Rs.3660-4000-3775/qtl. The price is expected to move in the range of around Rs.3850-4000/qtl during April,24 - March,25 unless there is a revision in the Government policies relating to sugar diversion to ethanol / allowing exports.

World sugar price is expected to be driven by Crude (Sugar/ Ethanol Parity), Currency, Indias Export policy and logistics performance in Centre-South Brazil.

The average all India blending percentage touched 12.03% in the tender year 2023-24 as on 21st April 2024, OMCs have procured 257.34 Cr Ltrs out of total requirement of 825 Cr Ltrs. Within this procurement, the sugar sector contributed 139.56 Cr. Ltrs, while the grain sector contributed the remaining 117.78 Cr. Ltrs.

Government has fixed the target of ethanol blending to 20% by 2025.

Nanglamal Distillery has recorded the highest-ever ethanol production during the F.Y. 2023-24 and the supplies to the Oil Marketing Companies is progressing well.

Incidence/infestation of certain insect pests and diseases such as Top Borer, Early Shoot Borer, Red Rot etc. in sugar cane crop has been observed in last two-three years. The major impact of Top Borer is seen in CO-238 variety of cane which occupies the major portion of Companys cane area. Efforts are being made to control its incidence by integrated pest management techniques and also replacing the CO- 238 cane variety in the coming years so that its impact in Companys command area could be minimized.

Details of significant changes as required under SEBI(LODR) Regulations, 2015 are as under:

Please refer to note no. 51 of Standalone Financial statements for variation in Key Financial Ratio.

The Company has proper and adequate internal control systems which provide reasonable assurance regarding all financial and operating functions and compliance with statutory provisions.

The Company has an internal audit section besides an independent external Chartered Accountants firm which undertakes internal audits throughout the year. The internal auditors reports are regularly reviewed by Senior Management and Audit Committee of the Board for its implementation and effectiveness.

The Company endeavors to constantly upgrade internal controls and periodic evaluation of the same is being undertaken.

Use of SAP and other software systems have also resulted in strengthening the internal controls and accurate reporting of operational and financial data.

In the past fiscal year, Companys Human Resources department has been instrumental in driving initiatives aimed at fostering a positive work culture, nurturing talent, and aligning the workforce with the strategic goals of the organization. Through a range of programs and policies, focus is placed on enhancing employee engagement, development, and well-being.

Talent acquisition remains a strategic priority for the Company. Robust recruitment strategies have been implemented to attract top talent and ensure a diverse and inclusive workforce. Companys efforts have included leveraging innovative recruitment methods, establishing partnerships with educational institutions and professional organizations, and prioritizing diversity and inclusion in all aspects of our hiring process.

Investing in the development of Companys employees remains a top priority. Comprehensive training and development programs have been provided to equip workforce with the skills and knowledge necessary to excel in their roles and adapt to evolving business needs. Additionally, emphasis is placed on leadership development initiatives to cultivate a pipeline of future leaders within the organization.

Company believes that engaged employees are key to our success, and therefore, initiatives to enhance employee engagement across the organization are placed at priority. This has included regular communication channels, employee feedback mechanisms, recognition programs, and opportunities for professional growth and development.

Companys commitment to diversity and inclusion is embedded in our corporate culture. Various proactive steps have been taken to promote diversity and foster an inclusive work environment where all employees feel valued, respected, and empowered to contribute their unique perspectives. This has included diversity training, mentorship programs, and initiatives to ensure equitable opportunities for all employees.

Maintaining positive industrial relations is critical to fostering a harmonious and productive work environment and always been a cornerstone of our HR strategy. Through proactive engagement and a commitment to fairness and transparency, we have strengthened our industrial relations and built trust and mutual respect among all stakeholders.

In conclusion, Human Resources activities of the Company reflect its ongoing dedication to fostering a supportive, inclusive, and high-performing workplace culture. Company remains committed to investing in our greatest asset - our people - and supporting their growth and success now and in the future.

Some of the statements in this Management Discussions & Analysis, describing the Companys objectives, projections, estimates, expectations and predictions may be ‘forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied. Important developments that could alter your Companys performance include change in material costs, technology developments and significant changes in political and economic environment, tax laws and labour relations.