Bagrrys India Limited Unlisted Shares

Annual Report Summary

Bagrrys India Private Limited, formerly known as Bagrrys India Limited, presents its 33rd Annual Report for the financial year 2019-2020. The company is engaged in the business of manufacturing and marketing breakfast cereals and health foods, with multiple manufacturing units. It also operates Quick Service Restaurants under the name “Bagrrys Health Café.”

Financial Performance: The company's revenue from operations increased from Rs. 15,452.70 Lakhs to Rs. 15,515.54 Lakhs, while other income increased from Rs. 81.76 Lakhs to Rs. 98.29 Lakhs. Profit after Tax amounted to Rs. 1110.51 Lakhs, compared to Rs. 841.86 Lakhs in the previous year. The Board of Directors attributes this to a focus on health products and increased consumer awareness, despite intensified competition in the breakfast cereals and health food category. Key financial figures (Rs in Lakhs): | Financial Metric | 2019-20 | 2018-19 | |-----------------------------------------|-----------|-----------| | Revenue from Operations | 15,515.54 | 15,452.70 | | Other Income | 98.29 | 81.76 | | Total Revenue | 15,613.83 | 15,534.46 | | Profit Before Tax | 1,568.20 | 1,191.61 | | Profit for the Year | 1,110.51 | 841.86 | | Balance Carried to Balance Sheet | 3,203.30 | 2,092.79 |

Business Operations & Developments: The company has introduced new products and variants and successfully added third-party manufacturers to meet growing demand. Direct exports have expanded to countries like Nepal, Bangladesh, and Seychelles, with recent invoicing for exports to Nigeria. The company has strengthened its Export Department to increase future growth in exports. A first installment of grant-in-aid amounting to Rs. 1,44,50,000/- was received from the Ministry of Food Processing Industries (MoFPI) for expansion of its Himachal Pradesh manufacturing unit.

COVID-19 Impact: The COVID-19 pandemic forced temporary shutdowns of production facilities at Newai and Baddi, resulting in losses towards the end of the financial year. The company focused on employee health and well-being, enabling work from home for most employees.

Corporate Changes: The company converted from an Unlisted Public Limited Company to a Private Limited Company on 13th April 2020. As a result, the company's name changed from "Bagrrys India Limited" to "Bagrrys India Private Limited". The Annual General Meeting was held via Video Conferencing due to COVID-19 restrictions.

Share Capital: The company redeemed 36,954 8% Non-Cumulative Compulsorily Redeemable Preference Shares. The Issued, Subscribed and Paid-Up Equity Share Capital is Rs. 76,96,090, comprising 7,69,609 Equity Shares of Rs. 10 each.

Board & Committees: During the financial year 2019-20, 10 Board Meetings were held. The Audit Committee and Nomination and Remuneration Committee were dissolved post conversion to Private Company.

Statutory Auditors: M/s. S S Kothari Mehta & Co. were appointed as Statutory Auditors.

Loans, Guarantees & Investments: The company has given loans and made investments within the provisions of Section 186 of the Companies Act, 2013.

Related Party Transactions: The company entered into transactions with related parties in the ordinary course of business and on arm's length basis.

Reserves & Dividend: No amount was transferred to the General Reserve. No dividend was declared to conserve profits.

Corporate Social Responsibility (CSR): The company focuses on promoting health care as part of its CSR policy. It contributed towards organizations including Swami Vivekananad Health Mission Society and Bhaorao Deoras Seva Nyas. It also participated in events like the "Eat Right Mela," where it received the "Eat Right Awards." The Company was unable to spend the total prescribed CSR amount due to the lack of proper expertise. Rs. 29,050 was donated to the Indian Cancer Society from a dedicated mutual fund investment.

Directors and Key Managerial Personnel: Key Directors and their designations are:

• Shri Sushil Kumar Chetani - Whole Time Director
• Shri Laxmi Narayan Sain - Whole Time Director
• Shri Raj Kumar Sharma - Director

Ms. Shiwani Goyal was appointed as Company Secretary. Mr. Hemant Sharma resigned as Chief Financial Officer ("CFO").

Evaluation of Board Effectiveness: The performance evaluation of the Board is not applicable in terms of the provisions of the Companies Act, 2013.

Prevention of Sexual Harassment: The company has a policy on prevention of sexual harassment at the workplace and an Internal Complaints Committee (ICC). No complaints were reported during the year.

Internal Financial Controls: The company has adequate Internal Financial Controls in place.

Directors' Responsibility Statement: The Directors confirm their responsibility for the preparation of financial statements in accordance with the Companies Act, 2013, including adherence to accounting standards, maintenance of accounting records, safeguarding of assets, and operating effective internal financial controls.

Other Disclosures: Information related to employee remuneration, conservation of energy, technology absorption, foreign exchange earnings and outgo, and risk management are disclosed in the report. There were certain sales tax matters under appeal.

Independent Auditor's Report: The independent auditor's report by S. S. Kothari Mehta & Co. confirms that the financial statements present a true and fair view in accordance with accounting standards and the Companies Act, 2013. The report also includes annexures regarding auditor responsibilities, the Companies (Auditor's Report) Order, 2016 (CARO), and internal financial controls. There is mention that the company is engaged in a legal battle contesting Rs. 5 Lakh in sales tax.