wardwizard foods beverages ltd share price Management discussions


Your Directors are pleased to present the Management Discussion and Analysis Report for the year ended 31st March, 2022.

Investors are cautioned that these discussions contain certain forward-looking statements that involve risk and uncertainties including those risks which are inherent in the Companys growth and strategy. The company undertakes no obligation to publicly update or revise any of the opinion or forward-looking statements expressed in this report consequent to new information or developments, events or otherwise.

OVERALL REVIEW

There is change in the Management & Control of the Company pursuant to acquisition of shares under Share Purchase Agreement (SPA) between the Acquirers & existing Promoters. The Acquirers have made Open Offer & draft Letter of Offer was filed with SEBI under SEBI (SAST), Regulations, 2011.

INDUSTRY STRUCTURE:

Indians across the globe are united over one factor: their love for food and keeping in consideration this factor, the present management proposes to carry out the business activities of frozen foods, ready to eat foods. It is our constant endeavour to create a range of delicacies with ready-to-eat and frozen food items.

BUSINESS PERFORMANCE AND SEGMENT REPORTING

The analysis in this section relates to the financial results for the year ended March 31, 2022. The financial statements of the company are prepared in compliance with the Indian Accounting Standards (referred to as Ind AS) prescribed under section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, as amended from time to time. Significant accounting policies used in the preparation of the financial statements are disclosed in the notes to the Standalone financial statements.

SUMMARY OF FINANCIAL PERFORMANCE

During the financial year 2021-22; the company achieved Total Income amounting to ^ 3358.91 Thousands, which is 21.67% lower than the financial year 2020-21 i.e. ^ 4288.07 Thousands.

Net Loss for the financial year 2021-22 is ^ 2018.08 Thousands which is 29.39 % higher than the financial year 2020-21 i.e. ^ 1559.63 Thousands.

VISION:

The present management proposes to carry out the business activities of frozen foods, ready to eat foods, aerated drinks, soft drinks, drinking water and all kinds of organic and inorganic foods and beverages items. Presently, these business activities are carried on by the various companies of the group. The management proposes to conduct these business activities in "WARDWIZARD FOODS AND BEVERAGES LIMITED". The management proposes that the new business activities in the listed entity will make a value addition to the net worth of the Company by increased top line and its profitability & sustained earnings in the future. This will benefit public shareholders at large. The management proposes to consolidate all foods & beverages business activities in the Company & thus to enjoy all its operations with greater cost efficiency.

HUMAN RESOURCES:

Human capital is the most essential part of the Company. The Company keeps promoting a collaborative work environment where all the employees feel safe and a part of the Company. The Human Resources policies of the Company are aimed at attracting, nurturing and retaining talent in a constantly evolving business environment while ensuring trust, transparency and teamwork amongst its employees.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a well-framed internal control system commensurate with the size and nature of its business. These internal controls ensure safeguarding of assets from unauthorised use or disposition, proper recording and reporting of all transactions and compliance with applicable regulatory requirements. The internal control systems are reviewed and modified continually to keep up with the changes in business environment and statutory requirements.

The framework is monitored by the internal audit team of the Company. The Audit Committee of the Board is periodically apprised of the internal audit findings. The Audit Committee reviews the efficacy and effectiveness of the internal control system, takes corrective actions and suggests measures for strengthening it. The Company has a robust Management Information System which forms an integral part of the control mechanism.

OPPORTUNITIES:

India is the worlds second largest producer of food next to China, and has the potential of being the biggest with the food sector. Indian consumers are rapidly changing their eating habits. Trends indicate a sharp increase in on-the-go eating, snacking in between meals, switching to healthier eating alternatives, pre-cooked ready to eat meals and increasing consumption of organic foods. This has led to a host of new opportunities in the consumer foods market for company to build a stake in this fast growing processed food market.

Factors contributing towards the sharp growth in demand for processed foods include the increasing urbanization, increasing disposable incomes, changing spending patterns/ priorities, emergence of nuclear families and the growing need for convenience foods in dual income nuclear families.

CHALLENGES:

Consumers demand: The ultimate goal of any company is to satisfy the customers demand. Similar, the demands of the customers in food industries is quite challenging because of its diverged class of consumers with various demands. So, the company should ensure that they deliver their products in the right time according to the consumers requirements.

Manpower: This is one of the important aspects which plays a vital role for successful operation and performance of the company. So, finding skilled labourers for the work is always a challenging tedious task yet this is a high prioritized task for any owner. Most of the companies in food industries are struggling to find good skilled labourers, unskilled labourers, researchers, consultants etc.

Research and development: In todays commercial world, people are running so fast and theyre always demanding only for the best upgraded products in the market. So to maintain the standard and the customers demands, the role of food development consultants, researchers and scientists in delivering advanced upgraded products becomes inevitable.

Investment: This is one of the mandatory factors to drive the company to greater heights. It is highly recommendable to seek advice from a business expert before investing in any business. A wise businessman always understands the consumers demands and market before investing on a new product.

RISKS AND CONCERNS:

Risk management is integral to your Companys strategy and to the achievement of long-term goals. Our success as an organisation depends on our ability to identify and leverage the opportunities generated by our business and the markets we operate in. In doing this we take an embedded approach to risk management which puts risk assessment at the core of the Boards agenda, which is where we believe it should be.

Our assessment of risk considers short and long term as well as internal and external risks including financial, operational, sectoral, sustainability (particularly Environment, Social and Governance related risks), information, cyber security, legal & compliance and any other risks as may be determined by the Company Leadership teams. How the identified risks are changing as well as emerging risk areas are reviewed on an ongoing basis.

REVIEW OF OPERATIONS OF THE COMPANY

The financial operations of the company for the financial year ended on 31st March, 2022 are as under:

(Rs in Thousands)

Particulars Standalone
FY 2021-22 FY 2020-21
Net Sales/ Income from Operations NIL NIL
Other Income 3,358.91 4,288.07
Total Income 3,358.91 4,288.07
Total Expenses 4,583.05 5,840.20
Profit/(Loss) from operations before exceptional items and Tax (1224.14) (1552.13)
Exceptional Items (793.94) 0
Profit/(Loss) from operations after exceptional items and before Tax (2018.08) (1552.13)
Profit/(Loss) before Tax (2018.08) (1552.13)
Tax Expense NIL 7.50
Net profit after Tax (2018.08) (1559.63)

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS The details of significant changes in key financial ratios are as under:

Particulars FY 2021-22 FY 2020-21
Debtors Turnover NA NA
Inventory Turnover NA NA
Interest Coverage Ratio (0.38) (0.71)
Current Ratio 16.47:1 16.32:1
Debt Equity Ratio 0.05:1 0.04:1
Operating Profit Margin 16.55% 41.41%
Net Profit Margin NA NA
Return on Net worth -0.37% -1.68%

COMPLIANCE:

The Compliance Department of the Company is continued to play a pivotal role in ensuring implementation of compliance functions in accordance with the directives issued by different regulators, the Companys Board of Directors and the Companys Compliance Policy. In compliance with the provisions of the SEBI Listing Regulations, the Company has an optimum combination of executive and non-executive directors with a woman independent director.

The Different Committees of the Board reviews the performance of the Compliance Department and the status of compliance with regulatory/internal guidelines on a periodic basis.

CAUTIONARY STATEMENT

Statements in this report describing the Companys objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations that involve risks and uncertainties. Such statements represent the intention of the Management and the efforts being put into place by them to achieve certain goals. Actual results might differ materially from those either expressed or implied in the statement depending on the circumstances. Therefore, the investors are requested to make their own independent assessments and judgments by considering all relevant factors before making any investment decision.

For Wardwizard Foods and Beverages Limited
(Formerly known as Vegetable Products Limited)
SD/- SD/-
Sheetal Mandar Bhalerao Yatin Sanjay Gupte
Managing Director Non-Executive Non- Independent Director
DIN:06453413 DIN:07261150
Place: Vadodara
Date: 27th August, 2022