Pradhin Ltd Management Discussions

1. Strategic Location:

Pradhin Limited is highly involved in Argo based Products, Dairy products, Food Stuffs, Cereals, Grains, Groceries, Cosmetics, Provisions, Tea, Coffee etc. marketing activity on retail as well as on wholesale basis. Companys total Sale during the year was Rs. 543.90/-.(Rs. in Lakhs)

In future, Company will make such strategy by which it increases its production and create demand for the said product. By this it will earn high value and serve best to its stakeholders.

A. Industry structure and developments.

Milk production & consumption in India: India has come a long way since the milk deficit days to becoming the worlds largest producer as well as consumer of milk. Globally, the EU, India and the United States are currently the largest milk and dairy product producers and consumers. The Indian dairy industry owing to favourable demographics will drive multiyear growth in the industry. The shift from "unorganised to organised market and consumer upgradation from pouch milk /powders to value-added dairy products will provide strong growth opportunities. In India, the unorganised sAGMent comprising of local vendors and self-consumption commands a lions share of 80% by value. The organised sAGMent is divided between cooperatives and private dairy companies. The share of organised sAGMent has gradually increasing. However, with rising disposable incomes and bourgeoning proportion of working women, there will be greater consumption of value added dairy products.

B. Opportunities and Threats.

Company has huge opportunity to expand business in the dairy industry. In Dairy Industry there are various opportunities like New attitude regarding the role of agriculture in national development, The growth of the population, The increasing information technology, The increasing industries that are related to agriculture, The development of new technologies, Governmental support in policy programs for agriculture etc.

Apart from this wide opportunity Company face challenges include, Incoherent government policies, Production risk, Marketing and prices risk, The price of inputs have a large tolerance, Rainfall is very low, The price of crops is low, Increasing use of external inputs.

However, our company has been successful enough to compete with them with increasing market share.

C. SAGMent-wise or product-wise performance.

Financial Performance

Geographic Revenue Analysis

D. Outlook.

The company expects a positivity in revenue and growth in FY 2023-24. Revenue will be dictated by the consistent expansion in the business of Agro based products.

Outlook as provided above is based on certain assumption and expectation of future events, eco-political and other development across the country, the Company cannot guarantee that from these sources company will generate revenue. The Companys actual results, performance or achievements could thus differ from those projected in above dictated key points or dictated in any other forward looking statement. The Company assumes no responsibility to publicly amend or review any such statement on the basis of subsequent development, information or events.

E. Risks and concerns.

Although the company has long been following the principle of risk minimization as is the norm in every industry, it has now become a compulsion. Therefore, in accordance with the provisions of the listing agreement the Board members were informed about risk assessment and minimization procedures after which the Board formally adopted steps for framing, implementing and monitoring the risk management plan for the company.

The main objective of this policy is to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the business. In order to achieve the key objective, the policy establishes a structured and disciplined approach to Risk Management, in order to guide decisions on risk related issues.

In todays challenging and competitive environment, strategies for mitigating inherent risks in accomplishing the growth plans of the Company are imperative. The common risks inter alia are: Regulations, competition, Business risk, Investments, retention of talent and expansion of facilities. Business risk, inter-alia, further includes financial risk, political risk, fidelity risk, legal risk. As a matter of policy, these risks are assessed and steps as appropriate are taken to mitigate the same.

F. Internal control systems and their adequacy.

The Company has adequate system of internal control to safeguard and protect from loss, unauthorized use or disposition of its assets.

All the transactions are properly authorized, recorded and reported to the Management. The Company is following all the applicable Accounting Standards for properly maintaining the books of accounts and reporting financial statements.

All the investments related activities are done under the direct supervision of the Chairman of our company. Considering the size and nature of business the company has appointed an Internal Auditor for the company for the financial year 202223, to ensure proper and adequate systems and procedures commensurate with its size and nature of itsbusiness.

G. Discussion on financial performance with respect to operational performance.

The Company has been continued to grow during the Financial Year 2022-23 in the sAGMent in which company operate. During the year under review, your company has achieved Revenue from Operation of Rs. 1706.41 as against Rs.1929.02 which recorded a decline of (11.54%).

Other Income during FY 2022-23 was Rs.12.47 as against Rs. 102.59 which recorded a decline of (87.84%).

The Company recorded Profit before Tax of Rs. (11.51) as against Rs. 39.61 which recorded a decline of (129.06%).

H. Material developments in Human Resources / Industrial Relations front, including number of people employed.

The well-disciplined work force which has served the company for the last 5 years lies at the very foundation of the companys major achievements and shall well continue for the years to come. The management has always carried out systematic appraisal of performance and imparted training at periodic intervals. The company has always recognized talent and has judiciously followed the principle of rewarding performance.

Company has sufficient Human Resource to meet the standard decided by Company to meet their future goals.

2. Disclosure of Accounting T reatment.

The Company has followed all the treatments in the Financial Statement as per the prescribed Accounting Standards.