Mukta Agriculture Ltd Management Discussions.


We, Mukta Agriculture Limited, is engaged actively in the business of trading in agricultural goods, natural resources and deals in agro & allied products and has successfully completed Eight years in its trading business. Due to financial crisis your company is not in profits but we are in the process of diversifying and expanding its existing business activities into newer areas to attain profits during the years which shall be beneficial for the growth of the Company and its members


The Indian population currently stands at 1.3 billion and is estimated to rise to 1.7 billion by 2050. India is the second most populous country after China in the world. According to United Nations statistics, India will surpass China to become the worlds most populous country by 2022.With the economic growth in absolute terms, Indian economy is likely to reach US$10 trillion by 2030 making India 3rd largest economy after China and US. Today more than 34% of Indias population lives in cities and account for more than 60% of food consumption which leads to a change in dietary needs of country.

India is an agrarian country, where more than 54% of population is engaged in agriculture and allied activities and accounts for INR 17.67 trillion (USD 274 billion) in 2018,contributing (17.4%4) Gross value to countrys GDP.

Agriculture and food industry are closely connected industries, Indian food and retail market is projected to touch US$ 4826 billion by FY 2020 which also remains key driver for growth of agricultural produce. Agriculture is the principal source of livelihood for more than half population of India. Agriculture provides the bulk of wage goods required by non-agriculture sectors and most of the raw materials for the industries sector. India is a largely agrarian economy - with 52.1% of the population estimated to directly or indirectly employed in agriculture and allied sectors in 2009-10. The combined efforts of Central Government, State Governments and the farming community have succeeded in achieving record production of 244.78 million tonnes of food grains. The agricultural and allied sectors in India have grown at an annual growth rate of nearly 2.9 per cent from 2014-15 to 2018-19.

Government has also taken major initiatives in the agriculture sector such as:

• Prime Minister of India, launched the Pradhan Mantri Kisan Samman Nidhi Yojana (PM-Kisan) and transferred Rs 2,021 crore (US$ 284.48 million) to the bank accounts of more than 10 million beneficiaries on February 24, 2019.

• The Government of India has come out with the Transport and Marketing Assistance (TMA) scheme to provide financial assistance for transport and marketing of agriculture products in order to boost agriculture exports

• In September 2018, the Cabinet Committee on Economic Affairs (CCEA) approved aRs5,500crore (US$ 820.41 million) assistance package for the sugar industry in India.

• In September 2018, the Government of India announced Rs 15,053 crore (US$ 2.25 billion) procurement policy named ‘Pradhan Mantri Annadata Aay Sanraks Han Abhiyan (PM-AASHA), under which states can decide the compensation scheme and can also partner with private agencies to ensure fair prices for farmers in the country.

Your Company is well aware of the industrial scenario and being alert, focuses mainly on long term goals, steady and profitable development. Further, your Company is diversifying its business and targeting to cover the losses and achieve goals of better revenue from this sector by upcoming years.


Government of India is targeting to improve agriculture and allied sector encompasses activities and process to create strong brand for agricultural and allied products. In order to drive sustainable agriculture growth, priority will be on reducing loses post-harvest which could be achieved by value addition through food processing sector which has huge growth potential. Hence value driven growth approach should be considered. Focus on enhancing the market linkages and providing information and communication technologies (ICT) enabled Agri- marketing systems which will adds value in pre and post-harvest phases of agriculture value chain. The primary threat to your Company is inflation and competition in the industry.


Your Company has elaborate Risk Management Procedure. Major Risks identified by the Business and Functions are systematically addressed through mitigating actions on continuing basis. The Key risks are also discussed at the Audit

Committee. Risk is an integral part of agriculture sector. The ultimate risk is inflation and competition in this industry along with the demand in the market. Further the availability of various cheaper options in the industry may hamper the operational income of the Company.


Your Company is expanding its business activity and putting continuous efforts to attain further efficiencies. Further, the Company is confident that in spite of the possible recessionary conditions in the industry it will perform better in view of the strong fundamentals of the company and hope to improve its turnover as well.


The Company is operating on only one segment. Hence separate segmental reporting is not applicable. The Company has no activity outside India.


Company has aligned its current systems of internal financial control with the requirement of Companies Act 2013. Internal controls are commensurate with its size and the nature of its operations. Our management assessed the effectiveness of the Companys internal control over financial reporting (as defined in Clause 17 of SEBI Regulations 2015) as of 31st March, 2019.

Moreover, the Company has appointed Internal Auditors to oversee and carry out internal audit of its activities. The audit is based on an internal audit plan, which is reviewed each year in consultation with the statutory auditors and approved by the audit committee.


The financial performance is covered in the Directors Report and the same can be referred to by the shareholders.


Humans are considered as one of the most critical resources in the business which can be continuously smoothened to maximize the effectiveness of the Organization. Human resources build the Enterprise and the sense of belonging would inculcate the spirit of dedication and loyalty amongst them towards strengthening the Companys Polices and Systems.


YEAR 2019

During the year under review, the detail of changes made in the following key financial ratios as compare to the immediately previous financial year. The details of the same in a form of comparison is provided as:-

S. No. Particulars of Ratio Financial Year 2018-19 Financial Year 2017-18
1 Debtors Turnover Ratio NA NA
2 Inventory Turnover Ratio NA NA


S. No. Particulars of Ratio Financial Year 2018-19 Financial Year 2017-18
3 Interest Coverage Ratio NA 1.00
4 Current Ratio 0.63 1.34
5 Debt Equity Ratio NA NA
6 Operating Profit Margin NA NA
7 Net Profit Margin NA NA
8 Return on Net worth 0.001 (0.15)


Statements in foregoing paragraphs of this report describing the current industry structure, outlook, opportunities, etc., may be construed as "forward looking statements", based on certain assumptions of future events over which the Company exercises no control. Therefore, there can be no guarantee as to their accuracy. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be implied by these forward looking statements. Such risks and uncertainties include, but are not limited to: growth, competition, domestic & international economic conditions affectingdemand, supply & price conditions, changes in Government regulations, tax regimes and other statutes.

By and on behalf of the Board
For Mukta Agriculture Limited
Krishan Khadaria Mohit Khadaria
Director Managing Director
DIN: 00219096 DIN: 05142395
Registered Office:
401/A, Pearl Arcade, Opp. P. K. Jewellers,
Dawood Baug Lane, Off J. P. Road,
Andheri (West), Mumbai 400 058
Place: Mumbai
Dated: 31st August, 2019