Vistar Amar Ltd Management Discussions

Report for the year ended 31st March, 2024

The Management of VISTAR AMAR LIMITED presents its Analysis report covering performance and outlook of the Company. The Management accepts responsibility for the integrity and objectivity of the financial statements. However, investors and readers are cautioned that this discussion contains certain forward looking Statements that involve risk and uncertainties.

Economic Review

1.1 Global Economy

The world economy is projected to maintain a steady growth rate of 3.2% throughout 2024 and 2025, mirroring the momentum observed in 2023. Amidst a dynamic global economic landscape, the emergence of in ationary pressures prompted a tightening of monetary policies across various regions. As a result, capital in flows in most nations have remained sturdy.

Following the peak of global in ation in mid-2022, economic activity has steadily expanded. There is stability in employment and income growth leading to favourable demand dynamics. This includes substantial government expenditure and household consumption, alongside an expansion in supply, supported by unexpected increases in labour force participation. Major advanced economies have stayed on track with their growth trajectories path despite significant adjustments in central bank interest rates. Risks are now broadly balanced, and households are observed tapping into their savings.

Outlook

As in ation moves closer towards targeted levels and central banks in several economies adopt a more relaxed policy stance, the implementation of tighter scal measures, aimed at addressing elevated government debt, is expected to potentially dampen growth prospects.

Projections indicate a decline in global headline in ation, with an estimated annual average of 6.8% in 2023, moderating to 5.9% in 2024 and further to 4.5% in 2025. Advanced economies are expected to reach their in ation objectives sooner compared to emerging markets and developing economies. A plausible growth acceleration is expected in G20 emerging markets that could support global growth and, with a positive correlation, affect the growth in other countries. Strengthening policy frameworks to absorb any potential shocks is needed.

1.2 Indian Economy

Despite considerable global disruptions, India recorded a strong growth rate of 7.6% in FY 2023-24, improving upon the 7% growth achieved in the previous scal year, FY 2022-23. This growth rate stands as the highest among both advanced and emerging economies globally. The growth has been primarily supported by a targeted monetary policy aimed at maintaining in ation within the target levels, which has been crucial in promoting sustainable growth over the medium term. This policy has not only stabilised the economy but also increased consumer con dence, leading to higher demand across multiple sectors.

Moreover, capital expenditure saw a significant boost, increasing from H10.5 lakh crore in FY23 to H12.7 lakh crore in FY24. This surge in spending has catalysed private investment and expanded economic activities across the country. The economy further benefited from a solid foundation of domestic demand, majorly driven by continuous private consumption and enhanced public infrastructure projects. Together with prudent scal management and strong tax revenue performance, these factors have laid a strong foundation for continued economic growth.

Outlook

The economic forecast for India in scal year 2024-25 is highly optimistic, with the GDP expected to grow by around 7%4. This substantial growth is driven by major infrastructure investments, supported by solid scal strategies and ongoing policy improvements. The growing workforce and focused development in smaller cities are poised to boost demand in critical sectors such as transportation, real estate, and consumer goods, which are crucial for long-term economic stability and growth. Internationally, as economic conditions improve and developed nations adopt more relaxed monetary policies, India is likely to attract more private investments. This increase in investment is expected to enhance exports and stimulate additional economic activities, which could help reduce the scal de cit more swiftly. Although in ation remains a concern due to high consumer demand and rising food prices, increased private sector investment is expected to help stabilize prices and maintain economic momentum.

Industry structure and developments

Fisheries sector plays an important role in the Indian economy. It contributes to the national income, exports, food and nutritional security as well as employment generation. Fisheries sector is recognized as the Sunrise Sector and is instrumental in sustaining livelihoods of around 30 million people in India particularly that of the marginalized and vulnerable communities.

Beyond its delectable taste, ‘ sh holds a profound significance in the Indian context, contributing to rich cultural significance and multiple health benefits. The intricate relationship between sh and Indian culture goes beyond the plate, in uencing traditions, health practices, and economic prosperity. Consumption of sh has the potential to positively impact not just individual nutritional status but also contribute to the food and nutritional security of the country.

Indias sh market is thriving, primarily due to its significant export potential with a substantial growth in both domestic consumption and sh exports. The market growth can be attributed to factors including changing lifestyles and growing awareness of sh as a healthy option with high digestible protein, cholesterol-lowering qualities, and PUFA.

Indias seafood exports achieved a record high in volume for the financial year 2023-24, overcoming challenges in major export markets like the USA, EU, and the UK. Frozen shrimp continued to be the top export item, both in quantity and value. The United States and China remained the largest markets for Indian seafood. Indias seafood export sector has demonstrated resilience and growth, achieving a record high in export volumes for FY 2023-24. With ongoing initiatives to enhance value addition and processing capabilities, India is poised to further strengthen its position in the global seafood market.

According to a new report by EMR titled, ‘India Fish Market Report and Forecast 2024-2032, the India sh market size reached approximately INR 1,881.84 billion in 2023. The market is projected to grow at a CAGR of 11% between 2024 and 2032, reaching a value of around INR 4,813.81 billion by 2032.

India is the third largest sh producing country in the world accounting for 8% of global production and contributing about 1.09% to the countrys Gross Value Added (GVA) and over 6.724% to the agricultural GVA. The sector has immense potential to grow hence calls for focused attention through policy and financial support for sustainable, responsible, inclusive and equitable growth.

Our Company, "Vistar Amar Limited" is engaged in processing of sh and sh related activities. Our commitment to excellence has earned us a leading position in the market. As we continue to excel in the processing of sh business, we remain focused on delivering excellence, innovation, and value to our customers and stakeholders. With a strategic vision and unwavering dedication, we are poised to lead and thrive in the competitive seafood market and is continued to progress in utilizing all the opportunities during 2024-2025.

Other Opportunities and Strength

The global seafood market has been witnessing a continous uptick in recent years riding on recognition of its benefits to health. The growing awareness of the health benefits of seafood, with its nutritional and protein content, presents a favorable environment for increased consumption.

Health experts promoting seafood as healthier alternative further contributes to the markets potential. Additionally, the rising purchasing power of the middle class and their desire for diverse food choices create opportunities for the seafood industry. India, with its long coastline, farming community, and availability of land and labor, has emerged as a major player in the global seafood industry. The marine Products Export Development Authority (MPEDA), under the Union Ministry of Commerce, has drawn up a plan to achieve marine products exports worth Rs. 1 Lakh crore by 2025, showcasing the governments commitment to supporting and promoting the industrys growth. But to mitigate the risks associated with excessive reliance on exports, there is aneed to focus on promoting and expanding domestic consumption and markets. The companys performance over the past years, with increased top-line growth, is a testament to its readiness to tap into domestic opporunities and adapt to market dynamics.

Other Opportunities and Strength

I. The Company is expecting a good season ahead. ii. Experienced Promoters and Management iii. Strong Relationship with reputed institutional customers iv. Fully indigenous plant. Experienced Marketing Team v. Operational Excellence vi. Quality Control

Threats and risk

Seafood industry faces various threats and challenges that need to be addressed for sustainable growth. These threats can be categorized into following factors.

i. Significant Economic changes ii. Climate related risk iii. Seasonal factors iv. Technological advancement and changes v. Market volatility vi. Real or perceived Product Contamination vii. Significant changes in Government or regulatory policies viii. Competitive prices and desired Quality

Segments

The Company does not have multiple segments. Hence, comments on segments are not required.

Outlook

With a rapid growth in the aquaculture industry, your Company believes the use of sh meal for feed will have a big demand going ahead.

In order to meet the changing market realities, your Company has been following the philosophy of providing the highest quality products and services at the lowest possible prices. All endeavours are made to achieve possible cost reduction in every area of operations. Your Companys philosophy to provide high class quality products i.e. full value for money, to consumers would greatly benefit in the long run. In the otherwise increasing cost arena, every expense, whether capital or revenue is minutely reviewed to achieve all possible savings.

Risks and areas of concern

The Company has a robust Risk Management process in place, which is a holistic, integrated and structured approach to manage risks with the objective of maximizing shareholders value.

The risk management process at our Company broadly consists of identi cation, assessment, mitigation, prioritization and monitoring of risks with the following objectives:

- Enhance con dence in achieving its desired goals and objectives;

- E ectively restrain threats to acceptable levels;

- Take informed decisions about exploiting opportunities;

The health of our employees is of paramount importance and in this regard the Company has also range of Covid-19 awareness, prevention and other risk mitigation controls in place.

Internal control systems and their adequacy

The Company has proper and adequate systems of internal controls in order to ensure that all assets are safeguarded against loss from unauthorized use of disposition and that all transactions are authorized recorded and reported correctly. An Audit Committee headed by a non-executive independent Director is in place to review various areas of the control systems.

Discussion on financial performance with respect to operational performance

The details of the financial performance of the Company are appearing in the Balance Sheet, Pro t & Loss Account and other financial statements etc. appearing separately. Highlights for the year 2023-2024 are as under:

(Rs. in 000)

Sales for the year 2023-2024	Rs.7,40,893
Provision for taxation	Rs.12,800
Pro t / Loss after tax	Rs.37,083
Paid up equity share capital as on 31st March, 2024	Rs.32,000.00

The financial performance of the Company has been explained in the Directors Report of the Company for the year 2023-2024 appearing separately.

Signi cant changes in Key Financial Ratio

The details of significant changes in Key Financial Ratio alongwith detailed explanation thereof for the year 2023-2024 (previous year 2022-2023) are given as under:

Sr. No.	Description	2023-2024	2022-2023	Remarks
1	Debtors T/O	8.06	7.17	NA
2	Inventory T/O	12.36	14.45	NA
3	Interest Coverage Ratio	NA	NA
4	Current Ratio	4.25	3.36	There is no change in company policy. However there was higher bank balance during the year end.
5	Debt -Equity Ratio	NA	NA
6	Operating Pro t Margin (%)	12.90%	14.64%	NA
7	Net Pro t Margin (%)	0.05%	0.06%	NA
8	Return on Net-Worth (%)	0.25%	0.28%	NA

Material developments in human resources/industrial relations front, including number of people employed

At the heart of every successful Company lies its dedicated workforce, serving as the cornerstone of business continuity. Employees bring invaluable expertise, passion, and adaptability to the table, making them indispensable assets in navigating the dynamic external and internal landscapes. Their role in crafting and executing strategic plans, coupled with their keen ability to identify and mitigate risks, is paramount in driving the Companys growth and resilience.

The Company cherishes the profound contributions of its employees, recognising their instrumental role in propelling our success forward. Through collaborative efforts and innovative strategies, our workforce has been pivotal in shaping the trajectory of our growth. To nurture and empower its employees further, the Company has implemented a range of human resources programmes aimed at fostering motivation, engagement, and well-being. These initiatives not only cultivate a secure and supportive work environment but also prioritise career development and upskilling opportunities, ensuring that our employees thrive and remain instrumental in our continued success.

Total Employees strength in the Company is 10.

Cautionary Statement

The statements in the Management Discussion and Analysis Report that describe your Companys projections, estimates and expectations are "forward-looking statements". They are within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied depending on the economic conditions affecting demand and supply, the price scenario in the domestic and international markets in which it operates, changes in government regulations, tax laws and other statutes. The Company undertakes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information, or events.