R J Bio-Tech Ltd Management Discussions

Industry Structure and Outlook:

Seed is the basic and most critical input for sustainable agriculture. The response of all other inputs depends on quality of seeds to a large extent. It is estimated that the direct contribution of quality seed alone to the total production is about 15 - 20% depending upon the crop and it can be further raised up to 45% with efficient management of other inputs. The developments in the seed industry in India, particularly in the last 30 years, are very significant. Farmer has a wide product choice and seed industry today is set to work with a farmer centric approach and is market driven.

Opportunity

• Government policy framework for double the income of the farmer.

• Rise in consumption pattern of food has provided a room to Indian seed industry to provide more high quality seeds with better productivity.

• The company has continuously invested and focused on its R & D, thus in forthcoming period, there are more high quality seeds to hit the market.

• Faster adoption of new technological seeds by Indian farmers

• Sprawling demand for the food.

• Slow and Steady improvement in the domestic as well as global economy.

Threat

• Worsening of domestic and global economy

• Cultural resistance to change by farmers

• Inadequate Working Capital during the peak period

• High Marketing Cost

• Dependency on monsoon

Segment wise performance:

Segment wise sales breakup of the Company for the Financial Year 2015-16, 2016-17 and 202021 is as follows:

Segment wise Sales - F.Y.2021-22

Risk and Concerns:

• Drastic changes in weather pattern, erratic climate, unseasonal rain, drought etc. have major impact on the cropping pattern in the country & normal sowing cycles are disturbed due to rain.

• Volatility in farm harvest prices & farmers willingness and ability to spend will be an important driver to demand generation.

Internal Control Systems and their adequacy:

The Company has an adequate system of internal controls in place. It has documented policies and procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations and protecting assets from unauthorised use or losses, compliances with regulations. The Company has continued its efforts to align all its processes and controls with global best practices.

Financial Performance with respect to Operational Performance:

Material Developments in Human Resources / Industrial Relation:

The Company believes that the success of any organisation depends upon availability of human capital. Our assets are our people who work to innovate beyond and challenge established boundaries. Thus, employees are vital to the Company. We have favourable work environment that encourages innovation and meritocracy. We focus on attracting the best and brightest talent and the meritocracy is the sole criteria for selection. The Company firmly believes that manpower is the most important asset, above all. No Strikes, Lock outs or any anarchy occurred during the period under review and Company enjoys cordial industrial relations with its employees.

Cautionary Statement:

Statements in the Management Discussion and Analysis describing the Companys objective, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand / supply and price conditions in the domestic market in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors.

Date: 29/07/2022

Place: Aurangabad

(Chairman)

DIN:06742716.