orient beverages ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

a. Industry structure and developments: In year 2022, global economies faced significant headwinds as a result of broadening inflationary pressures, less favourable financial conditions, supply chain disruptions and rising energy costs due to geopolitical tensions in Europe, specifically due to ongoing Russia and Ukraine War. The global economy continues to face these challenges in 2023, growth is projected to slow further to 2.7%, marking one of the weakest growth profiles since 2001, with the exception of the global financial crisis and the acute phase of the COVID-19 pandemic. The situation for the global economy in 2023 remains uncertain as the world continues to navigate the ongoing challenges caused by the pandemic.

The Indian economy performed exceptionally well compared to the rest of the world. India is set to remain the bright spot in CY 2023 with a potential to contribute 15% to the global GDP growth, according to IMF. India economy is projected to grow at 5.9% in FY 2024 after having grown at an estimated 6.8% in FY 2023, to be among the fastest growing major economies.

b. Opportunities and threats: The Companys main threat is competition from multinational giants and local entrepreneur who are also engaged in beverages industry. The change in taste of consumers gives opportunities to the Company to grow further.

c. Segment wise performance: The Company is operating in one Segment only i.e. Beverages. Sale of Beverages has increased to " 962,529 thousand in the FY 2022-23 from " 660,969 thousand in the FY 2021-22, showing an increase of 46%.

d. Outlook: The Company is likely to focus mainly on beverages segment. The Company will also look forward for any attractive opportunities, if available in other sectors.

e. Risks and concerns: The risk of the Company are interest risk, market risk etc. Increased competition from multinational giants and increase in government levies, from time to time, are main concern of the Company.

f. Internal control systems and their adequacy: The Company has adequate systems of Internal Controls commensurate with its size and operations to ensure orderly and efficient conduct of business. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information.

g. Financial performance with respect to operational performance: The financial performance of the Company for the year 2022-23 is discussed in the Directors Report under the head Operation and State of Companys affairs.

h. Material developments inhuman resources and industrial relations front: The Company sincerely make efforts and gives special attention to Human Resources/Industrial Relations development. Industrial relations remained cordial throughout the year and there was no incidence of strike, lock out etc.

i. Cautionary statement: The statements describing the Companys outlook, estimates or predictions may be forward-looking statements based on certain assumptions of future events. Actual results may differ materially from those expressed or implied, since the Companys operations are influenced by external or internal factors. Your Company closely monitors all major developments likely to affect the operations and will respond to meet the potential threats and to gain from any possible opportunities.

	For and behalf of the Board
	N. K. Poddar
Kolkata, 30th May, 2023	Chairman
	(DIN : 00304291)