MRC Agrotech Ltd Management Discussions

The performance of Agriculture Produce Segment with regard to industry structure and development, opportunies and threats, segment wise performance, outlook, risks and concerns, internal control systems and its adequacy, discussion on financial performance with respect to operaonal performance and material developments in Human Resources/Industrial Relaons Front, including number of people employed is analyzed in detail below:-

1) BUSINESS PROFILE

The Company, MRC Agrotech, is engaged in Agriculture Produce acvity and the main business being culva on, manufacturing, sales, and exports of agriculture produce. The factory has facilies to produce agriculture produce. Good manufacturing pracces systems are followed in the factory. Currently, the company produces various agriculture produce.

2) INDUSTRY SCENARIO

The agricultural industry being the basic need is rising rapidly. The company has promising products which are staples of people in India such as wheat our, lemon grass etc. With correct markeng strategies and great product quality and export of products, the future of the company is looking pro table.

3) PERFORMANCE

During the year under review, sales has increased by 120.5% to Rs. 14,65,91,695 from Rs. 6,65,18,602 in the previous year..

The summary of the performance is given below:-

(Amount in Rs.)

Par_culars	Year ended March 31, 2024	Year ended March 31, 2023
Net Sales/Income from Operaons	14,65,91,695	6,65,18,602
Other Income	52,67,201	53,77,515
Less: Expenditure	15,20,00,127	6,72,14,701
Pro t/(Loss) before taxa_on	1,15,58,976	46,81,416
Less: Tax provisions	26,44,694	12,65,855
Deferred Tax		1,853
Prior Year Tax
Pro t/(Loss) a er tax	89,14,282	34,13,709

4) OPPORTUNITIES AND THREATS

Opportuni es:

Market potenal is there for agriculture produce, which however is constrained by s compe on from global, na onal, and local players.

Threats:

Any recession in the general economy may affect the agriculture produce industry. The major threat for the agriculture produce industry is the yearly increase in the cost of producon, which is not proporonate with the increase in sale realizaon.

5) OUTLOOK

The outlook for the industry depends on (a) consistent demand for agriculture produce throughout the year, (b) higher realizaon commensurate with the cost of producon, and (c) growth in the agriculture produce segment. The company has been constantly endeavoring on this. Quality upgradaon and a ainment of cost efficiency are the prime missions of the company. Plant modernizaon and eld development have been undertaken with the above missions in mind.

6) RISKS AND CONCERNS

With regard to the business risk, the same has been dealt with under Opportunies and Threats stated above. Regarding the general risk, the company follows a minimal risk business strategy as given below:-

Par_culars	Risk minimizing steps
Fixed Assets and Current Assets	The company has taken adequate insurance coverage of its xed assets and current assets which will minimize the impact of another event or development
Financial Risk	The company has a conservave debt policy. The debt component is very marginal
Credit risk on exports	The credit is insured through Export Credit and Guarantee Corporaon Limited (ECGC)

7) INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

The Company has appropriate and adequate internal controls and also has appointed a leading rm of Chartered Accountants as Internal Auditors to cover Internal Audit of the Company. The Internal Audit coverage is adequate to ensure that the assets of the company are safeguarded and protected and there is regular review by Management on policies, internal controls and procedures and also internal audit reports.

8) FINANCIAL PERFORMANCE ANALYSIS

During the year under review, the company’s financial performance showed significant growth, with Net Sales/Income from Operaons increasing by 120.5% to Rs. 14,65,91,695 from Rs. 6,65,18,602. Other Income was Rs. 52,67,201, with total expenditure at Rs. 15,20,00,127. The company reported a Pro t before taxaon of Rs. 1,15,58,976 and a Pro t a er tax of Rs. 89,14,282, compared to Rs. 34,13,709 in the previous year.

9) INFORMATION TECHNOLOGY

The company has upgraded all its informaon systems resources and review of the same is done on a periodic basis.

10) HUMAN RESOURCES

The company a aches significant importance to connuous upgradaon of Human Resources for improving the producvity of employees at all levels leading to improvement in quality of the produce, which will ensure a be er customer sasf acon and a higher growth. As a part of HR strategy, training programmes are organized for employees at all levels.

11) CAUTIONARY STATEMENT

The analysis given above may contain certain statements which are futurisc in nature. Such statements represent the intenon of the Management and the efforts put in by them to realise certain goals. The success in realising these goals depends on various factors, both internal and external. Therefore, the investors are requested to make their own independent judgements by taking into account all relevant factors before taking any investment decision.

ANNEXURE- I

DETAILS OF EMPLOYEES / MANAGERIAL REMUNERATION

A) Details of the rao of the remuneraon of each director to the median employee’s remuneraon and other details as required

pursuant to Rule 5(1) of the Companies (Appointment and Remuneraon of Managerial Personnel) Rules, 2014

B) Details of top ten employees in terms of remuneraon drawn and other employees of the Company as required pursuant to rule 5(2) of the Companies (Appointment and Remuneraon of Managerial Personnel) Rules, 2014: During the year under consideraon, none of the employees of the company was in receipt of remuneraon in excess of limits prescribed under rule 5(2) of the Companies (Appointment and Remuneraon of Managerial Personnel) Rules, 2014 hence parculars as required under rule 5(2) of the Companies (Appointment and Remuneraon of Managerial Personnel) Rules,2014 are not given.

FOR MRC AGROTECH LIMITED

Sd/-

Uamkumar Abhinandan Singh

(Chairman, Board of Director)

DATE: 04.09.2024

PLACE: MUMBAI