Unique Organics Ltd Management Discussions

Your directors are glad to present below the management discussion and analysis for the year 2023-24:

Overview of the Industry Structure and Developments:

The agriculture sector remains the largest source of livelihood in India, making the country one of the worlds leading producers of agricultural and food products. During the fiscal year 2023-24, the growth rate of Indias agriculture sector was estimated at 0.7%, a decrease from 4.7% in 2022-23. India continues to produce a diverse range of crops, food grains, and cereals.

Recent data from the Department of Commerce indicates that both agricultural exports and imports in India have reached new heights in the fiscal year ending March 31, 2024. The value of farm exports was estimated at $48.82 billion in 2023-24, showing a decline from the record $53.15 billion in 2022-23, and $50.24 billion in the previous fiscal year. Despite the decline, the sector remains robust, with a strong focus on increasing export volumes and expanding market reach.

Source: https://commerce.gov.in/trade-statistics/

The largest importers of Indias agricultural produce/products are Bangladesh, UAE, USA, Vietnam, Saudi Arabia, Nepal, Malaysia, and Indonesia. The other importing countries are Iran, Egypt, Iraq, and China.

In the upcoming FY 2024-25, the exports growth is expected to increase due to improved momentum in the global demand and incentive schemes of government of India. Good monsoon expectation will help to overcome the poor sentiments in the agriculture segment. Though, a higher dependency on monsoon in this sector is major factor.

The management of your company has been continuously working on to identify and select new products and markets. Further, the management anticipates good volume of business in year ahead.

UOL Business:

During the year under review, export sales contributed major role in source of income in total revenue of the Company. The export activities were focused on broadly on cereals, animal feed ingredients whereas domestic activities were focused on cattle feed and other animal nutritional products. Cereals and feed ingredients were the major contributor the export sales during the year under review. Your Company identified the demand of above products and has been focusing on its exports mainly on these. Further, your company is working to identify more such high demand products and is hopeful of developing a good market base on international level.

Total revenue of the Company increased by 10.28 % this year as compared to previous year. Export turnover of the Company increased by 10.07% this year as compared to previous year. The export activities were majorly focused on cereals, animal feed ingredients whereas domestic activities were focused on cattle feed and other animal nutritional products. Rice, Maize, Soybean Meal/Extractions and, Barley, RSM and De-oiled Rice Bran were the major contributor to the export sales during the year under review.

The management of your company has been continuously working on to identify and select new products and markets. Further, the management anticipates good volume of business in year ahead.

Opportunities:

The advantage of your company is its 31 years of experience in the sector of agricultural produce exports that has created a trust among its customers worldwide. The management policies are aimed at satisfying the requirements of the present customers while adding on new pool of customers, products and markets. The company is continuing to manufacture and supply cattle feed and animal feed supplements under the brand name ROHINI with an aim to tap the domestic market and diverse its portfolio.

The product range of the company includes Cattle feed, Mineral Mixture, Madhu Amrit, DCP Rohini Brand, Toxin binder. Out of these products the international demand of Toxin binder was unleashed. Further to this our proposed products launched this year are Liquid Calcium, Goat feed, Horse feed, Bypass protein (RSM) etc. These products are planned to be launched in international markets as well driving new channels in international market.

Your Company is also supplying feed products to reputed milk producing companies in Rajasthan as well as adjoining states on contract basis and joining hands with new entrants in the dairy field.

Your company is hopeful of positive results in the exports and domestic market on the basis of:

Productive and effective leadership having a dedicated and committed team.

o Following the ethical, transparent and clearly defined business practices. o Strong buyer and seller base - enhanced competitiveness.

o Positive reputation among the buyers and the sellers worldwide.

o Utilization of in-house manufacturing and testing facility. For ensuring end to end services to our customers

Given that the primary products of your company are agricultural, the business is susceptible to a range of unpredictable and unavoidable factors that can significantly impact the industry. These factors include:

o Weather forecasts, monsoon season, climate condition and rain.

o Government policies for exports and Fiscal policies.

o Prices of various Agri commodities and exchange rate volatility.

o Demand and supply in local and global market. o Changing purchasing and pricing patterns across the Globe.

o Political situation at national and international level.

o Foreign policy of India as well as importing Countries.

o Currency fluctuations.

Your companys performance has to be viewed in context of the aforesaid political, economic and market environment.

Segment-wise performance:

a) Business (Primary) Segment

The Company operates in a single primary business segment, namely, Feed, food, herbs and Spices products, and hence there is no

reportable primary segment as per AS-17 on segment reporting.

b) Geographical (Secondary) Segment

i. The company primarily operates in India and overseas and therefore the analysis of geographical segment is demarcated into its Indian and Overseas operations as under:

Particulars/ Revenue (Gross Sales)	F.Y. 2023-24 (Lakhs)	F.Y. 2022-23 (Lakhs)
India	1639.35	1297.04
Overseas	18471.29	16780.74
Total	20110.65	18077.78

Refer Note-34 to P&L for more details.

ii. Non-Current Assets: All non-current assets other than financial instruments of the company are located in India.

Outlook:

The business environment presents a blend of risks and opportunities, encompassing both successes and failures. While macroeconomic factors inherent to the industry cannot be avoided in a liberalized market, our company employs market research, trend analysis, and other techniques to anticipate risks and take proactive measures to mitigate their impact.

The management is optimistic about future improvements in both export and domestic trade. We are vigorously expanding our product range and market presence at both domestic and international levels. Given the current situation, the company will prioritize prudent risk-taking to address negative business environment factors efficiently and with minimal losses. Our Internal Audit Control and Risk Management Policies are regularly reviewed and adapted to evolving market conditions.

Risk and concerns:

In the usual course of the business, the company is exposed to varied types and levels of risks. For instance, price fluctuations of the dealing commodities at national and international level, currency fluctuations, legal, market and financial risks, Govt. Policies etc. Due to liquidity concerns in the market and volatility of the prices, the threat of defaults by customers is high at both national and international level and your company is already making efforts to avoid this circumstance by thoroughly checking buyer credentials and taking trade insurance policies.

To ensure that the risks are efficiently, effectively and promptly answered, your company has prepared a Risk Management Policy, which lays down standards of identifying potential threats, their likelihood of occurrence and taking appropriate actions to address the same. Also, it involves periodic review of the operations so that proper actions can be taken to minimize the risk.

Internal Control System and their adequacy:

Our organization operates on a foundation of strong ethics and professionalism. To address the complexities of business development, we have established internal frameworks that facilitate task completion in a professional manner. Each member of our team has clearly defined roles, which are regularly reviewed and monitored as per the given environmental factors.

We have implemented an Internal Audit Control system designed to assess and enhance the effectiveness of risk management and governance practices. This system ensures adherence to established standards, thereby improving organizational performance and providing a competitive advantage by minimizing avoidable costs.

Financial and Operational Performance:

Total revenue of the Company from operational and other income increased in the year under review from Rs 20438.10 to Rs. 18532.91 lakhs, registering an increment of 10.28 % in total revenue as compared to previous financial year.

Human Resources:

Company strongly belief that employees are the assets of the company, your company is committed for proper utilization of its human resources with an aim to achieve professional excellence and sustainable mutual growth. As on 31^st March, 2024, Company has 36 Employees on its roll.

Cautionary Statement:

Statements made in "Management Discussion & Analysis" describing projections, companys objectives and planning may be somewhat forward looking within the meaning of applicable laws and regulations. The Actual results might differ depending upon prevailing trends, international business scenario, government policies, demand and availability of products and government support by means of direct or indirect assistance for export of products from time to time.

Acknowledgement:

Your directors express their sincere thanks to Central and State Government departments, Banks, foreign buyers, suppliers and all stakeholders for their cooperation and encouragement they always extended to the company and look forward for their continued support. For the continuous support and meticulous efforts of Dealers, Business Associates and employees in ensuring an all-round improved operational performance, your directors wish to place on record their sincere thanks and appreciation.

By order of the Board of Directors of Directors
For Unique Organics Limited
Sd/-	Sd/-
Jyoti Prakash Kanodia	Madhu Kanodia
DIN: 00207554	DIN:00207604
Managing Director	Director
Jaipur, August 9, 2024
Registered Office:
E-521, Sitapura Industrial Area,
Jaipur-302022 (Raj.) India
Phone No. +91 141 2770315/509
Email: compliance@uniqueorganics.com
CIN:L24119RJ1993PLC007148