Prospect Commodities Ltd Management Discussions

Pursuant to Schedule V of the Listing Regulations, the Management Discussion and Analysis Report is given below:

Industry Structure and Developments

Company is engaged into Cashew processing business. The company is Processor, exporter and supplier of Natural Cashew Kernel and many types of Flavoured Cashew Kernel. It supplies variety of grades of Cashew Kernel into domestic market and International market. DRIFRUTZ is a brand name by PROSPECT COMMODITIES LIMITED. It also deal into by-products of Cashew nuts like Cashew Husk / Cashew husk pellets / Cashew Shell. The Company has hi-tech Cashew processing infrastructure. Processing facility ensures end to end processing, sorting, grading and packaging processes. Company supply different grades like W180, W210, W240, W320, Split Cashew, Broken Cashew etc. of cashew Kernel with brand name DRIFRUTZ.

Opportunities & Threats

Global economic and political factors that are beyond control, influence forecasts and directly affect performance. These factors include interest rates, rates of economic growth, fiscal and monetary policies of governments, change in regulatory framework, inflation, deflation, foreign exchange fluctuations, consumer credit availability, consumer debt levels, unemployment trends, terrorist threats and activities, worldwide military and domestic disturbances and conflicts, and other matters that influence consumer confidence, spending.

Company derive 100% of its revenue from operations in India and, consequently, performance and the quality and growth of business are dependent on the health of the economy of India. However, the Indian economy may be adversely affected by factors such as adverse changes in liberalization policies, social disturbances, terrorist attacks and other acts of violence or war, natural calamities or interest rates changes, which may also affect the micro finance industry. Any such factor may contribute to a decrease in economic growth in India which could adversely impact business and financial performance.

Segment wise performance

The Company is primarily engaged in the business of trading of cashew in to B2B Market. Business of Company come under Single Segment reporting.

Outlook & Risk and Concern

The Management has to regularly monitor the changing market conditions and the trends. Further, any slowdown of the economic growth or volatility in the financial market could also adversely affect the Companys performance.

Internal control systems and their adequacy

The Company maintains an adequate system of Internal Controls including suitable monitoring procedures to ensure accurate and timely financial reporting of various transactions, efficiency of operations and compliance with statutory laws, regulations and Company policies. Suitable delegation of powers and guidelines for accounting have been issued for uniform compliance. The Audit Committee periodically reviews the significant findings of different Audits, as prescribed in the Companies Act, 2013 and in the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Financial and Operational Performance

During the year, Company has achieved the Total Revenue of Rs. 1269.30 Lakhs. There is no other income during the year. Total expense of the company during the year is Rs. 1189.42 Lakhs. After meeting the expenses your Company has earned profit of Rs. 54.67 Lakhs.

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

The Company gives utmost importance to the capacity-building and well-being of its employees. The Industrial Relations in the Company continued to be on a cordial note. There are regular interactions between the management and Employees. The Company has an atmosphere of trust and cooperation, which results in a motivated work force and consistent growth in the performance. The total employee strength as on March 31, 2023 was Eight.

Significant changes in Key Financial Ratios

This is first financial year of company. The provision relating to significant changes in Key Financial Ratios is not applicable to company.

Cautionary Statement

Statements in this management discussion and analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include a downtrend in the industry- global or domestic or both, significant changes in political and economic environment in India, applicable statues, litigations etc.