Uniphos Enterprises Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT:

The Company is engaged only in trading.

The Company operates in a single segment, viz. trading. During the year, the Company traded in agro commodities totaling to Rs11151.13 lakhs.

The Company continues to look at new opportunities of trading.

The revenue of the Company is from trading activities, the Companys revenue is also from other income consisting of dividend on equity shares, mutual funds and interest on bank fixed deposits. The financial asset of the Company is mainly investment in listed security and accordingly, any material volatility in the capital market may impact the market value of the investment.

Key business risks perceived by the Company and mitigating initiatives are as under:

Funding risk:- As there are only trading activities in the Company, the Company may not be able to mobilize adequate funds, if any, in time. The mitigating factors are that the Company has good investment in the quoted shares, so raising additional funds, if any, will not be difficult for the Company.

Regulatory risk:- Any change in Government / Regulators Policy / Rules / Regulations will require fresh compliances. The mitigating factors are that the group has very strong and dedicated team consisting of professionals to study regulatory changes and fresh requirement.

Foreign currency fluctuation risk: – The Company is engaged in the trading activities, which may subject to risk of less profit / loss on account of volatility in foreign currency exchange. The mitigating factors are that the management ensures to enter in trading transactions in such a way that there are minimal risks of volatility in foreign currency exchange or the Company may take adequate forward cover for foreign exchange fluctuations.

Cyber Security Risk:- The Company is subjected to risks associated with IT and cybersecurity related to dealing with cybercrime, theft of sensitive information. The mitigating factors are that the group has Best-in-class IT Infrastructure and IT security systems that has established robust firewalls and disaster recovery mechanisms. Perpetual event monitoring, implementation of suitable access controls, continuous improvement on IT Infrastructure and Cybersecurity and educating the entire group on safe behaviour and practices are regularly undertaken.

The Company has an internal control system, commensurate with the size, scale and complexity of its operation. The Group has an inhouse internal audit team headed by a qualified professional, which undertakes internal audit and ensures that all transactions are authorized and recorded in the books of the Company. The internal audit department monitors the ef_cacy and adequacy of internal control. Significant audit observations, if any, are presented to the Audit Committee and action taken to correct any de_ciency is informed to them. The report prepared by internal audit team forms the basis of utilization by the Managing Director and Chief Financial Officer for financial reporting as required under Regulation 17 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Company has adequate internal financial controls in place, commensurate with the size, scale and complexity of its operations. The Company is complying with all the applicable Accounting Standards. The accounting records are maintained in accordance with generally accepted accounting principles in India. This ensures that the financial statements reflect true and fair financial position of the Company.

During the year, the Company traded in agro commodities totaling to Rs11151.13 lakhs as compared to Rs5064.79 lakhs in the previous year. Other income was Rs611.83 lakhs as compared to Rs4286.62 lakhs in the previous year.

The Company has earned profit of Rs27.83 lakhs after tax as compared to profit of Rs3861.43 lakhs in the previous year.

The reduction in the other income and profit was due to lower declaration of dividend by UPL Limited of 50% in the current year as against 500% in the previous year.

The relationship with the employees continued to be cordial throughout the year.

This has been dealt with in the Directors Report.

This has been delt with in the notes to the financial statements. Refer note no. 36 of the notes to the financial statements.

Certain statements in this section relating to estimates, projections and expectations may be forward looking within the meaning of applicable laws and regulations. The actual results could differ materially from what the directors envisage in terms of the future performance and outlook. The factors that may affect the performance of the Company will be drought or shortfall in rains, change in government policies, tariff barriers, delay in registrations, changes in local and overseas markets and the related factors.