Your directors are glad to present below the management discussion and analysis for the
year 2022-23:
Overview of the Industry Structure and Developments:
The agriculture sector is the largest source of livelihood in India. The country is one
of the largest producers of agriculture and food products in the world. In 2022-23,
Indias agriculture sector growth rate was estimated to be at 3.5% and it was 3.0% in
2021-22. The country produces many crops and food grains, cereals etc. Provisional data
released recently by the Department of Commerce has shown that both agricultural exports
from and imports into India have scaled new highs in the fiscal year that ended March 31,
2023.
The data shows that total farm exports were at USD 53.15 billion and imports at USD
35.69 billion during 2022-23, surpassing their previous years records. The resultant
agricultural trade surplus has marginally dipped from USD17.82 billion to USD 17.46
billion.
Source: https://www.drishtiias.com/daily-updates/
daily-news-analysis/india-latest-farm-exports-data#
:~:text=The%20data%20shows%20that%20total,sur
passing%20their%20previous%20years%20records.
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 2023-24, 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 91.34% this year as compared to previous year. Export turnover of the
Company increased by 124% 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 30 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 customers, products and markets. The company is continue 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.
Company 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. Threats: Major products
of your Company being related to agriculture produce, your company exposed to various
unpredictable and inevitable circumstances that have the capacity to affect the industry
and the business as a whole. The factors are briefly mentioned as below:
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 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 |
F.Y. 2022-23 |
F.Y. 2021-22 |
|
(Lakhs) |
(Lakhs) |
| (Gross Sales) |
|
|
| India |
1297.04 |
1932.85 |
| Overseas |
16780.74 |
7495.44 |
| Total |
18077.78 |
9428.29 |
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:
A business environment is a combination of risks and opportunities; success and
failure. Macro environmental factors specific to an industry cannot be avoided in a
liberalized market.
However, your company, through market research, trend analysis and other techniques,
tend to forecast the risks and take pro-active steps to reduce the impact of such risks.
Management is hopeful that in coming years the trade in exports as well as domestic sector
will improve. Your company is aggressively making efforts to add new products and markets
in the portfolio both at domestic and international levels. Analyzing the present
situation, the company will prefer taking prudent risks so that the negative factors in
the business environment may be faced in the most efficient manner with minimum loss.
The Internal Audit Control and Risk Management Policies are constantly reviewed and
modified as per the changing market situations. 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:
Your organization is driven by morals and believes in doing business based on
professionalism. For dealing with the complexities of developing business, your
organization has made internal frameworks which assist in finishing the tasks, in
professional way. All representatives of the organization have pre-specified roles to
perform that are reviewed and monitored regularly.
An Internal Audit Control system has been designed which assesses and enhance the
viability of risk management and good governance. This helps in ensuring that the work is
done against the set standards thus enhancing the organizational performance and providing
competitive advantage by eliminating avoidable costs.
Financial and Operational Performance:
Total revenue of the Company from operational and other income increased in the year
under review from Rs. 18532.91 lakhs to Rs. 9685.79 lakhs, registering an increment of
91.34% 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 31st March, 2023,
Company has 34 Employees on its roll.
Impact of COVID-19 on the Business:
During the year under review there was no impact of COVID-19 on the operation of the
Company.
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, September 01, 2023 |
|
| Registered Office: |
|
| E-521, Sitapura Industrial Area, |
|
| Jaipur-302022 (Raj.) India |
|
| Phone No. +91 141 2770315/509 |
|
| Email: compliance@uniqueorganics.com |
|
| CIN: L24119RJ1993PLC007148 |
|
+91-9892691696
