Oasis Tradelink Ltd Management Discussions

Global economy

In 2023, the global economy experienced a modest recovery, growing at an estimated rate of 3.2%. This growth was propelled by pent-up consumer demand, accumulated savings, and tight labor markets. However, the economy faced significant challenges like supply chain disruptions, geopolitical tensions, and the lingering impacts of the Covid-19 pandemic, putting its resilience to the test.

Advanced economies displayed varying results, with the U.S. experiencing 2.5% growth driven by robust consumer spending, while the Euro zone witnessed slower growth at 0.4%, primarily due to high energy prices. Emerging and developing economies performed better, achieving a growth rate of 4.3%, supported by Chinas reopening and Indias strong domestic demand. Global inflation rose to 6.8%, although it began to moderate later in the year. Despite the recovery, inflation rates remained persistently high worldwide, surpassing central bank targets in most countries. However, projections indicated a decrease in global headline inflation to 5.8% in 2024 and further to 4.4% in 2025 as supply conditions improved. Overall, the modest rebound of the global economy in 2023 demonstrated its resilience in the face of significant challenges.

Outlook

In 2024, the world economy is projected to continue its growth trajectory, albeit at a slower rate compared to before. Despite the easing of job markets and sustained high prices, consumer spending is poised to be a key driver of this growth. Major economies like the U.S., China, and India are anticipated to contribute to overall expansion, while Europe faces an increased risk of economic downturn due to high government debt levels. Several obstacles lie ahead, including high interest rates leading to costly borrowing, weak consumer demand in certain regions, labor shortages, soaring housing costs, disruptions from less global trade, and geopolitical tensions posing threats to energy supply issues. Aggressive interest rate hikes, escalating debt levels, and the potential for financial crises could further impede economic progress. To effectively navigate these complex challenges, policy makers must exercise caution in their decision-making, implement reforms to enhance productivity, foster global cooperation to revive trade, and address common problems like transitioning to sustainable energy sources. By doing so, sustainable growth can be achieved, benefiting all parties amid the nuanced circumstances faced by different countries.

Indian Economy

Indias economy demonstrated remarkable resilience and growth in FY 2023-24, with GDP significantly outperforming expectations. The Ministry of Statistics and Program Implementation revised GDP growth upwards to 8.2% from its earlier estimate of 7.6%, marking a substantial improvement from the 7.0% growth recorded in the previous fiscal year. This robust performance has propelled the Indian economy to a milestone of USD 3.5 Trillion, setting a strong foundation for achieving the ambitious USD 5-Trillion target in the coming years

As India progresses towards its economic targets, the country is adopting a multi-faceted approach to growth. While infrastructure development remains a priority, the government is also focusing on key sectors such as energy. India aims to boost its oil refining capacity by over 20% within five years to meet rising energy needs, although volatile crude prices pose a persistent concern. Simultaneously, efforts are being made to reduce reliance on imported edible oils through domestic production incentives and strategic trade partnerships, showcasing a balanced approach to energy and food security. Building on these sector-specific initiatives, India is leveraging broader growth enablers to reinforce its economic trajectory. These include strengthening human capital through skill development initiatives, enhancing the business environment to attract investment, leveraging technology for improved governance, and promoting sustainable development. By focusing on these fundamental drivers of growth, India is positioning itself to not only achieve its economic targets but also to enhance its standing in the global economic landscape, ensuring a more resilient and sustainable path forward.

Outlook

Indias economic prospects remain strong, supported by robust fundamentals like a shrinking current account deficit, high forex reserves, and inflation hovering around 5%. The Reserve Bank anticipates a growth rate of 7% for FY 2024-25, in line with the IMFs forecast of 6.5%, driven by resilient domestic demand. Looking ahead, increasing FDI inflows, a youthful demographic, rising urban incomes, and strategic initiatives in manufacturing, clean energy, export diversification, skills development, business facilitation, and sustainable growth contribute to a positive long-term outlook. Despite challenges like geopolitical tensions and the shift towards cleaner energy sources, post-election policy consistency is expected to reinforce Indias growth trajectory, positioning it as a crucial market for multinational corporations in the long term.

Industry Overview

Major consumer goods companies are now focused on meeting the demand for ready-to-cook meals, snacks, edible oils, pulses and juices, especially with consumer preferences shifting from unbranded to branded products following COVID. This is leading to a greater demand in the packaged food market in India. During the period from 2019 to 2023, the Indian retail industry witnessed substantial expansion; it registered a growth of 34%, reaching USD 1.2 trillion from USD 890 billion. This growth has established India as the fifth-largest retail market globally.4 Factors contributing to the growth of the packaged food market include the increasing popularity of quickservice casual restaurants, evolving lifestyles, urbanisation, changing consumer preferences, the expansion of e-commerce services in rural areas and mushrooming contemporary retail outlets.

BUSINESS OVERVIEW:

Our Company was originally incorporated at Ahmedabad as “M/S Oasis Tradelink Private Limited” on 20th November, 1996 under the provisions of the Companies Act, 1956 vide certificate of incorporation issued by the Registrar of Companies, Gujarat, Dadra and Nagar Havelli. Our Company was converted in to a Public Limited Company and consequently the name was changed to “M/S Oasis Tradelink Limited " vide fresh certificate of incorporation dated 22nd August, 2013 issued by the Registrar of Companies, Gujarat, Dadra and Nagar Havelli.

Currently the operation of the company stood suspended and company is not doing any business.

Threats:

HUMAN RESOURCES AND INDUSTRIAL RELATIONS:

The Company recognizes human resources as its biggest strength which has resulted in getting acknowledgement that the Company is the right destination where with the growth of the organization, value addition of individual employees is assured. The total number of employees as on 31st March, 2024 is NIL

INTERNAL CONTROL:

The Company was an adequate internal control system for safeguarding the assets and financial transactions of the Company. The strong internal control systems have been designed in such a way that, not only it prevents fraud and misuse of the Companys resources but also protect shareholders interest.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The company is not currently doing any business and during the year the income from revenue is Nil.

FINANCIAL RATIO:

NETWORTH:

Networth of the company as on 31st March 2024 is Rs. 1,207.55 Lakh compared to Rs. 12,08.85 Lakh of previous year.

GENERAL BODY MEETINGS:

The details pertaining to last three Annual General Meetings of the Company are provided:

Liquidator Certificate

[Under Regulation 17(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

To,

The Board of Directors

Oasis Tradelink Limited

CERTIFICATION TO THE BOARD PURSUANT TO REGULATION 17 (8) OF SEBI LODR

I hereby certify that:

a) I have reviewed the financial statements and cash flow statements of the Company for the year ended March 31, 2024 and

i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

ii) these statements together present a true and fair view of the Companys affairs and are in compliance with existing Accounting Standards, applicable laws and regulations

b) There are no transactions entered into by the Company during the year ended March 31, 2023, which are fraudulent, illegal or violative of the Companys Code of Conduct.

c) I accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting. I have disclosed to the Auditors, deficiencies in the design and operations of such internal controls, if any, of which we are aware and steps that have been taken to rectify these deficiencies.

d) I have indicated to the Auditors, wherever applicable:

i) Significant changes in the internal control over financial reporting during the year;

ii) Significant changes in the accounting policies during the year and that the same has been disclosed in the notes to the financial statements; and

iii) Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or any employee having a significant role in the Companys internal control system over financial reporting.