Nakoda Group of Industries Ltd Management Discussions

CORPORATE OVERVIEW

Nakodas group is a Leading manufacturer of Tutti Fruity (Diced Chelory) also called as "Papaya Preserve", Karonda Cherries (Indian Cherries), Sweet lime peels, Orange Cut Peels, Sesame Seeds Hulled Auto dry, All Variety of Jams, Sauces, Spices, Chikkis (Fruity Bars), Pickles, Papads, Canned Vegetables and Frozen Fruits & Vegetables.

Nakodas Group has kept its legacy to make people fall in love with their most delicious, healthy and natural products. Nakodas Group brings you the finest natural ingredients from all around the world to satisfy your heart with its delightful taste.

Since 1998 we are existing exporter of all above items in Middle East & European Countries. Our Company has around 80% export oriented business and rest is on domestic market of India. Our factory is situated in heart of Nagpur which is also known as the heart of India as it is located centrally to all the conveniences. Hence, we are very conveniently making supplies of the above products very promptly & regularly with less loss of time to the states of India. Our Major Clients are Ice-Cream Factories, Bakeries, Sweets & Namkeens Factories, Airline Companies, Railway Catering & Indian Military.

The Financial statements are prepared in accordance with accounting principles generally accepted in India, including the Accounting Standards notified under the Companies Act, 2013 ("the Act") read with Section 133 of the Companies Act, 2013. Your Management accepts responsibility for the integrity and objectivity of the financial statements, as well as for the various estimates and judgments used therein. These estimates and judgments relating to financial statements are prudently made to reflect in a true and fair manner the form and substance of transactions. This also enables in reasonably presen ting the Companys state of affairs and profits and cash flows for the year ended March 31^st, 2020.

ECONOMY OVERVIEW

The Indias Economic performance in 2019-20 has moderated as shown in the Economic Survey. The Economic growth is expected to revive in upcoming years with the expected normalization in the economy as the cash crunch eases. This is indicative of the relative stability of the economy. There has been an improvement in the governments fiscal management in 2019-20 aided by the buoyancy in revenue collections.

The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry.

IMPACT OF COVID-19

COVID - 19 has spread globally and during the last quarter of F.Y. 2019-20 in India. This has an impact on the business operations of the Company and all the available resources as well. Your company has taken all the necessary precautions measures at office as well as factory premises to ensure personal safety along with continuity of business such as temperature monitoring, compulsory use of face mask, frequent use of hand sanitizers. Sanitization of work places, frequent use of hand wash, work from home facility, working with alternate employee facility etc. we have provided Emergency leaves to the employees to take care of health issues which they may face while working.

Your company also rapidly adopted the guidelines announced by the Central and State Government as well as by the Local Authorities. The same guidelines are placed in the work place for the employees and workers so that personal safety can be ensured.

The business operations faced several challenges including:

a) Limited working Time at work place.

b) Reduced employee attendance due to local transport restriction.

c) Temporary stoppage of some activities at work place.

d) Lack of Raw Material due to non availability of Transport.

e) Delay in supply of Finished Products due Transport issues.

f) Non availability of Workers due to migration.

g) Cancellation of Export Orders.

h) Reduced demand of the finished products.

i) Working with the limited work force as per the guidelines of local authorities.