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Kohinoor Foods Ltd.

BSE: 512559 Sector: Agri and agri inputs
NSE: KOHINOOR ISIN Code: INE080B01012
BSE 00:00 | 03 May Kohinoor Foods Ltd
NSE 05:30 | 01 Jan Kohinoor Foods Ltd
OPEN 7.21
PREVIOUS CLOSE 7.55
VOLUME 5605
52-Week high 9.79
52-Week low 6.41
P/E
Mkt Cap.(Rs cr) 28
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.21
CLOSE 7.55
VOLUME 5605
52-Week high 9.79
52-Week low 6.41
P/E
Mkt Cap.(Rs cr) 28
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kohinoor Foods Ltd. (KOHINOOR) - Chairman Speech

Company chairman speech

Dear Members

It is my privilege to write to you and present theAnnual Report of yourCompany for the financial year2019-20.

I hope this letterfindsyou safe and in good health.

India is among the top five rice-producing nations which include ChinaIndonesia Bangladesh and Vietnam in the list. India produces above 23% of overall globalrice production. Indian rice market is primarily dominated by unorganized sector becauseof the presence of several local players and the easy availability of rice through smallretail stores. The rice production is projected to register a CAGR of 2.7% during theforecast period 2020-2025.

As you know the paddy industry has grappled with multiple issuesduring the year. The mounting trade tensions muted global growth and enhanced regulatorynorms have fundamentally changed the contours of the business environment in which weoperate. Next came the onset of the COVID-19 pandemic in the final quarter of the yearwhich has ushered in a new reality for industries across the world where your company isstruggling its own battle for revival of financial crises as the Banks have alreadydeclared your Company NPA.

The current scenario is expected to continue in the near term andexporters are likely to continue facing financial stress in the near term. Weak salesgrowth and decline in profitability along with inventory losses are expected to be thekey trends in the financials of basmati rice players in 2019-20. This is expected tofurtherweaken the leverage profile of industry players.

Any improvement in the situation is likely only from the next basmatipaddy harvest season that is the second half of 2020-21. In the meantime supply ofbasmati paddy is expected to witness some moderation as farmers are likely to shift awayfrom basmati given the non-remunerative prices in the last two crop cycles. Moreoverdemand is also expected to witness some improvement going forward.... Challenges werefurther exacerbated in the final quarter of the year by the country's strict lockdownmeasures in response to the pandemic.

Against this volatile macro backdrop your Company is charting out adisciplined

path towards a robust and resilient future. I would like to firstaddress the current year's performance followed by various transformative initiativesbeing undertaken.

Your Company achieved a total consolidated turn-over of INR 2158Million (Mn.) as against INR 6026Mn. of last year the lower turnover is on account oferratic global rice market conditions pandemic and cash crunch faced by the Company. Theconsolidated rice business value stood at INR 1839 Mn. as against INR 5420 Mn. of lastyear.

Basmati Rice Export is mainly driven by demand from some of the MiddleEast Countries like Iran Saudi Arabia Yemen Iraq UAE etc. Iran Yemen Iraq arefacing various problems making it difficult to export and realize sale proceeds from thesecountries.

Nevertheless last year had been challenging one because of financialconstraint ongoing economic pressure and current pandemic. On the hindsight export marketwas low on sentiments & actual realization due to economic instability aroundcountries beside our own constraint of business operation due to liquidity crunch. HoweverKohinoor is still striving to grew steadily and place its presence around world acrossrenowned players.

KFL participates across nations and around world under its fewprestigious brands for sale of rice and processed & packed food business.

Our UK operations continue to focus on growth both in Rice andprocessed food range of products.

We further inform the members that with an objective to improve thefinancials of the company your company is exploring the possibilities such as:

a. Monetising some of the assets of the company

b. Lookingfor Investor to infuse funds in the company.

c. Negotiating with the Banks for restructuring of borrowings orsettlement of loans.

The company is working aggressively on the said lines to improve itsfinancial/business to achieve the seemless working.

With the objective of bringing authentic Indian flavours to the peopleall over the world we want your company Kohinoor Foods Ltd. to become a leading name inthe food business globally as well. In pursuit of our vision to make Kohinoor the mosttrusted & preferred food brand in export markets we would continue to developproducts increase operational efficiency and follow our successful strategies.

I am grateful to the Board of Directors for their unwavering supportand guidance. I also take this opportunity to express my gratitude to all our consumersbusiness partners employees and stakeholders who have shown their trust in us and haveextended theirconstant support.

As we look ahead over the next two years we anticipate a tremendousdeal of transformation stemming from COVID-19. Consumer behavior will change in numerousways experiences to prioritising health and taste and its purchasing decisions. Greaterscrutiny will be placed on building environmental sustainability and climate resilienceinto the very core of business models. The management believes that with resolution of theon going liquidity problems KFL will be well placed to meet the demand opportunities thatwill arise from these important and fundamental shifts.

I would like to take this opportunity to thank you for your continuedtrust confidence and support as we enter a brave new decade—one that is alreadyrewriting the rules of the past

With bestwishes
Sincerely
Sd/-
JugalKishoreArora
Chairman

.