Heritage Foods Limited | 30th Annual Report 2021-22

30 th Annual Report 2021-22 Heritage Foods Limited 58 Ɣ In the preparation of the annual accounts (Standalone & Consolidated) for the financial year 2021-22, the applicable accounting standards have been followed along with proper explanation relating to material departures. Ɣ They have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year 2021-22 and of the profit and loss of the Company for that period. Ɣ They have taken Proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities if any, Ɣ The annual accounts of the company have been prepared on a going concern basis. Ɣ They have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively; and Ɣ They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively. Variation in market capitalization As at March 31 2022 2021 Market Capitalization ( ` in million) 14,838.08 13,622.50 Price earning Ratio 14.62 9.38 Note: Data based on share prices quoted on BSE Management Discussion and Analysis In terms of the provisions of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 as amended from time to time, the Management’s Discussion and Analysis is provided in a separate section and forms an integral part of this Report. Corporate Governance Corporate governance is an ethically driven business process that is committed to values aimed at enhancing an organization’s brand and reputation. This is ensured by taking ethical business decisions and conducting business with a firm commitment to values, while meeting stakeholders’ expectations. It is imperative that your company’s affairs are managed in a fair and transparent manner. This is vital to gain and retain the trust of the stakeholders. In terms of Regulation 34 of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter “Listing Regulations”) as amended from time to time, a Report on Corporate Governance along with Compliance Certificate issued by Statutory Auditors of the Company forms integral part of this Annual Report. Business Review Your Company has not changed its nature of business during the period under review. Your Company has two divisions i.e. Dairy division and Renewable division in operation in different States in India as on March 31, 2022. Dairy Business: Global Dairy Industry: World milk production is expected to increase by 1.6 percent annually between 2021 and 2029 and reach 997 million tons in 2029, according to a report prepared by OECD-FAO. This report reveals that the increase in milk yield is highly related to the diet. In countries where grazing-based livestock breeding is carried out, milk production increases are mostly related to the number of herds, while in countries where special feeding is common, production increases due to productivity. Indian Dairy Industry: India has been the leading producer and consumer of dairy products worldwide since 1998 with a sustained growth in the availability of milk and milk products. Dairy activities form an essential part of the rural Indian economy, serving as an important source of employment and income. India also has the largest bovine population in the world. However, the milk production per animal is significantly low as compared to the other major dairy producers. Moreover, nearly all of the dairy produce in India is consumed domestically, with the majority of it being sold as fluid milk. On account of this, the Indian dairy industry holds tremendous potential for value-addition and overall development. Along with offering profitable business opportunities, the dairy industry in India serves as a tool of socio-economic development. Keeping this in view, the Government of India has introduced various schemes and initiatives aimed at the development of the dairy sector in the country. For instance, the “National Dairy Programme (Phase-I)” aims to improve cattle productivity and increase the production of milk expanding and strengthening and expanding the rural milk procurement infrastructure and provide greater market access to the farmers. On the other hand, the private participation in the Indian dairy sector has also increased over the past few years. Both national and international players are entering the dairy industry, attracted by the size and potential of the Indian market. The focus is being given to value-added products such as cheese, yogurt, probiotic drinks, etc. They are also introducing innovative products keeping in mind the specific requirements of the Indian consumers. These players are also improving their milk procurement network which is further facilitating the development of the dairy industry in India. Dairy Market Forecast: As per the research report by IMARC Group, The dairy market in India has reached a value of ` 13,174 Billion in 2021. Looking forward, IMARC Group expects the market to reach ` 30,840 Billion by 2027, exhibiting a CAGR of 14.98% during 2022- 2027. Organized & Unorganized Dairy Market in India: Being one of the primary dairy consumables in India, the demand increase for milk in the country is owed to the increasing population. As of