A PROJECT REPORT

ON
ANNUAL REPORT OF AJOONI BIOTECH LTD.

Submitted by – Tanmoy Lahkar (23BSPHH01C1263) Seat No. 62

Sunny Dagar (23BSPHH01C1234) Seat No. 68

Submitted To: Prof. Srikanth Potharla

In partial fulfillment of course of MBA at IBS Hyderabad Semester – I

Academic Year 2023-25
Date of Submission – 13/09/2023

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 TABLE OF CONTENTS
S.NO TITLTE PAGE
NO

1 Introduction 3

2 Standalone Statement of Profit and Loss 4

3 Analysis for Profit and Loss A/C 5-7

4 Standalone Balance Sheet 8

5 Analysis of Balance Sheet 9-11

6 Standalone Statement of Cash flow 12

7 Analysis of Statement of Cash Flows 13-14

8 Director’s Report 15-16

9 Management and Discussion Analysis 17-18

10 Auditor’s Report 19-20

11 Corporate Governance Report 21

12 Conclusion 21

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 INTRODUCTION

Established in 2010 Ajooni Biotech Limited (Ajooni, ABL) is a one of the leading animal health
care solutions company dedicated to improving the productivity of Dairy farmers and
sustainably increase livestock yields. Ajooni is one of the among leading players in the
Compounded Animal Feed and feed supplements in India and its portfolio offers a wide range
of Quality Cattle feed, Cattle feed Chips, Camel Feed, Cotton Oil Cake, Mustard Oil Cake and
wide range of Feed supplements to cover the entire life-cycle of an animal. Ajooni is fully
committed to build and sustain itself as an organization where innovation is a key driver.
Company is constantly experimenting and working on developing cost effective research based
different healthcare solutions with the help of leading universities and independent scientists.
The Company is among main suppliers to leading companies like IFFCO Kisan, Mother Dairy,
Paras Dairy & Saahaj Dairy. The Company is registered with Department of Dairy Development,
Govt of Punjab (India) and India’s first GMP certified Cattle feed company with ISO 9001:2015.
The company is registered with Bureau of Indian Standards ( BIS) and manufacturing ISI Mark
Animal feed. ZED process implemented and TQM process is under implementation. The
Company is using modern technologies for all its operations such as ERP software, PLC system
to control production process and most effective logistic system. The Company came up with
it’s IPO on NSE Emerge platform in December 2017 & The Company migrated to the main board
of NSE in May 2021

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 ANALYSIS FOR PROFIT AND LOSS A/C
Income:

 The company earned ₹74,03,77,673.00 from its core operations (Revenue from operation).
 Additional income of ₹51,03,88,901.00 was generated as Other Income.
 In total, the company's revenue for the year was ₹74,07,58,965.00.

Expenses:

 The cost of materials consumed during operations amounted to ₹63,91,49,425.00.

 Changes in inventories of finished goods, work in progress, and stock in trade accounted for
₹9,84,549.00.
 Employee benefit expenses totaled ₹1,48,14,961.00.
 Financial costs incurred amounted to ₹54,00,692.00.
 Depreciation expenses were ₹1,11,07,074.00.
 Various other expenses, including operating and administrative costs, summed up to
₹1,04,88,229.00.
 In total, the company's expenses for the year amounted to ₹72,61,47,830.00.

Profit:

 Before accounting for income tax and exceptional items, the company's net profit was
₹1,46,11,135.00.

Tax Expenses:

 The company incurred current tax expenses of ₹43,35,59,989.00.

 There was a deferred tax benefit of -₹34,32,815.00.
 After accounting for taxes, the company reported a profit for the period of ₹1,14,78,437.00.

Other Comprehensive Income:

 The company had items not classified in the Profit & Loss statement, including changes in
the fair value of FVOCI (Fair Value through Other Comprehensive Income) equity
instruments amounting to ₹58,40,690.00 and profit/loss on the sale of shares totaling
₹57,75,160.00.
 The total other comprehensive income for the year was ₹1,72,15,850.00.

Total Comprehensive Income for the Year:

 Taking into account both the profit for the period and other comprehensive income, the
company's total comprehensive income for the year was ₹73,16,426.00.

Earnings per Equity Share:

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  The company reported earnings per equity share of ₹15,03,280.00 (basic) and
₹1,91,424.00 (diluted).

This statement provides a detailed overview of the company's financial performance, including its
income, expenses, taxes, and comprehensive income for the year ending March 31, 2022, and allows
for comparison with the previous year's figures.

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 ANALYSIS OF BALANCE SHEET
Let's analyze each component of the provided balance sheet as of 31.03.2022 and compare it to the
previous
Year, 31.03.2021(All the values are in Lakhs):
1. EQUITY AND LIABILITIES
A. Shareholders' Funds
a) Share Capital: The share capital remained unchanged at Rs. 100055820 from the previous year. This
Indicates no new issuance or buyback of shares during the year.
b) Other Equity: There has been a significant improvement in the Other Equity category from a
Negative value of (Rs. 334.23) in 2021 to a positive value of Rs. 28.98 in 2022. This suggests that the
Company has likely generated profits or resolved some of its previous losses during the year,
Resulting in a positive impact on equity.
B. Non-Current Liabilities
a) Financial Liabilities: Long-term borrowings decreased from Rs. 3.48 to Rs. 2.41. This might
Indicate the repayment of long-term debt during the year.
b) Deferred Tax Liabilities (Net): This decreased from Rs. 1.38 to Rs. -0.01. A negative value may
Indicate a deferred tax asset or the reversal of previously recognized liabilities.
C. Current Liabilities
a) Financial Liabilities:
Short-Term Borrowings decreased from Rs. 1,325.20 to Rs. 1,187.50, indicating a reduction in short term
debt.
Trade Payables decreased from Rs. 285.55 to Rs. 257.57, which may suggest better management of
Trade credit.
b) Other Current Liabilities increased slightly from Rs. 30.54 to Rs. 33.04.
c) Current Tax Liabilities Net increased from Rs. 170.74 to Rs. 228.49, indicating a higher tax
Liability for the year.
2. ASSETS
A. Non-Current Assets
a) Property, Plant, and Equipment: This increased from Rs. 93.27 to Rs. 94.20, suggesting some
Investment in tangible assets during the year.
b) Intangible Assets: Increased from Rs. 1.28 to Rs. 1.64, indicating potential investments in

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Intangible assets.
c) Financial Assets: Non-current investments decreased from Rs. 537.37 to Rs. 525.07.
Long-term loans & advances decreased from Rs. 704.67 to Rs. 69.73.
B. Current Assets
a) Financial Assets: Trade Receivables decreased from Rs. 31.99 to Rs. 22.46, which could be due to
Improved collections or lower sales on credit. Cash and cash equivalents decreased from Rs. 894.76
To Rs. 832.88. Short-term loans and advances increased from Rs. 618.50 to Rs. 1,026.58.
b) Inventories: Decreased from Rs. 1,316.03 to Rs. 1,242.34.
c) Other Current Assets: Other Current Assets increased from Rs.24.71 as of March 31, 2021, to Rs.
31.05 As of March 31, 2022.
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❖ Percentage Change Analysis of each component of Balance Sheet:

I. EQUITY AND LIABILITIES
A. Shareholders' Funds
(a) Share Capital: No change (0.00%).
(b) Other Equity: There was a significant improvement in Other Equity from a negative value of (Rs.
334.23) in 2021 to a positive value of Rs. 28.98 in 2022, resulting in an approximate 109.16%
Increase.
B. Non-Current Liabilities
(a) Financial Liabilities:
• Long-term borrowings: Decreased from Rs. 3.48 to Rs. 2.41, representing a percentage decrease
Of [(2.41 - 3.48) / 3.48] * 100 ≈ -30.74%.
(b) Deferred Tax Liabilities (Net): Decreased from Rs. 1.38 to Rs. -0.01, indicating a percentage
Decrease that exceeds 100% (due to a reversal).
C. Current Liabilities
(a) Financial Liabilities:
• Short-Term Borrowings: Decreased from Rs. 1,325.20 to Rs. 1,187.50, representing a percentage
Decrease of [(1,187.50 - 1,325.20) / 1,325.20] * 100 ≈ -10.39%.
• Trade Payables: Decreased from Rs. 285.55 to Rs. 257.57, representing a percentage decrease of
[(257.57 - 285.55) / 285.55] * 100 ≈ -9.80%.

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(b) Other Current Liabilities: Increased from Rs. 30.54 to Rs. 33.04, representing a percentage
Increase of [(33.04 - 30.54) / 30.54] * 100 ≈ 8.19%.
(c) Current Tax Liabilities Net: Increased from Rs. 170.74 to Rs. 228.49, representing a percentage
Increase of [(228.49 - 170.74) / 170.74] * 100 ≈ 33.87%.
II. ASSETS
A. Non-Current Assets
(a) Property, Plant, and Equipment: Increased from Rs. 93.27 to Rs. 94.20, representing a
Percentage increase of [(94.20 - 93.27) / 93.27] * 100 ≈ 0.99%.
(b) Intangible Assets: Increased from Rs. 1.28 to Rs. 1.64, representing a percentage increase of
[(1.64 - 1.28) / 1.28] * 100 ≈ 28.13%.
(c) Financial Assets:
• Non-current investments: Decreased from Rs. 537.37 to Rs. 525.07, representing a percentage
Decrease of [(525.07 - 537.37) / 537.37] * 100 ≈ -2.29%.
• Long-term loans & advances: Decreased from Rs. 704.67 to Rs. 69.73, representing a percentage
Decrease of [(69.73 - 704.67) / 704.67] * 100 ≈ -90.11%.
B. Current Assets
(a) Financial Assets:
• Trade Receivables: Decreased from Rs. 31.99 to Rs. 22.46, representing a percentage decrease of
[(22.46 - 31.99) / 31.99] * 100 ≈ -29.80%.
• Cash and cash equivalents: Decreased from Rs. 894.76 to Rs. 832.88, representing a percentage
Decrease of [(832.88 - 894.76) / 894.76] * 100 ≈ -6.91%.
• Short-term loans and advances: Increased from Rs. 618.50 to Rs. 1,026.58, representing a
Percentage increase of [(1,026.58 - 618.50) / 618.50] * 100 ≈ 65.87%.
11(b) Inventories: Decreased from Rs. 1,316.03 to Rs. 1,242.34, representing a percentage decrease of
[(1,242.34 - 1,316.03) / 1,316.03] * 100 ≈ -5.60%.
(c) Other Current Assets: Increased from Rs. 24.71 to Rs. 31.05, this represents a percentage
Increase of approximately 25.60%.These percentage changes provide a clear picture of how each
component of the balance sheet has evolved over the year. Overall, the balance sheet reflects changes
in the company's financial position and provides Insight into its financial health and performance. It's
important to consider these changes in conjunction with other financial information and the company's
specific circumstances to draw meaningful Conclusions.

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 ANALYSIS OF STATEMENT OF CASH FLOWS
This cash flow statement provides a detailed breakdown of the cash flows for the year ended March 31,
2022, and the year ended March 31, 2021. Let's analyze each component:
A. CASH FLOWS FROM OPERATING ACTIVITIES:
• Net Profit before Tax: In 2022, the net profit before tax was ₹41.32 lakh, compared to ₹20.06 lakh
In 2021, indicating a substantial improvement in profitability.
• Adjustments for:

➢ Depreciation and Amortization Expense: This accounts for the non-cash expenses related to the
Depreciation and amortization of assets. In 2022, this expense was ₹1.62 lakh, up from ₹1.33 lakh in
2021.

➢ Loss/ (profit) on sale of fixed assets: In 2022, there was a loss of ₹0.05 lakh from the sale of fixed
Assets.

➢ Finance Costs: This represents the interest and borrowing costs. In 2022, finance costs were ₹10.78
Lakh, down from ₹13.62 lakh in 2021, indicating a reduction in borrowing expenses.

➢ Investment written off: In 2022, the company wrote off ₹7.38 lakh worth of investments, likely
Indicating a decrease in the value of certain investments.

➢ Loss/ (profit) on sale of investments: In 2022, there was a gain of ₹1.01 lakh from the sale of
Investments.

➢ Dividend Income: In 2022, there was a dividend income of (₹0.54) lakh, indicating a decrease from
₹0.20 lakh in 2021.

➢ Interest Income: In 2022, interest income was (₹6.68) lakh, down from (₹7.36) lakh in 2021.
14
• Operating profit before working capital changes: In 2022, it was ₹47.52 lakh, up from ₹34.76 lakh
In 2021.
• Adjustments for changes in working capital: Notable items include an increase in trade
Receivables, a decrease in inventories, a decrease in short-term loans & advances, and an increase in
Trade payables, among others.
• Cash generated from operation: In 2022, it was (₹1.29) lakh, indicating that the company used
More cash for operating activities than it generated.

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• Taxes Paid (net): In 2022, the company paid taxes, resulting in a net cash outflow of (₹1.29) lakh.
• Net cash from operating activities: In 2022, it was (₹1.29) lakh, compared to a larger outflow of
(₹29.35) lakh in 2021. This improvement suggests better cash management in 2022.
B. CASH FLOWS FROM INVESTING ACTIVITIES:
• Purchase of fixed assets: The Company invested (₹1.70) lakh in fixed assets in 2022, compared to
(₹0.99) lakh in 2021.
• Sale/disposal of fixed assets: There was a sale of fixed assets, generating ₹0.08 lakh in 2022.
• Purchase of current and non-current investments: The Company invested (₹14.01) lakh in investments
In 2022, compared to (₹10) lakh in 2021.
• Proceeds from sale of current and non-current investments: The Company generated ₹14.18 lakh
From the sale of investments in 2022.
• Dividend on investments: In 2022, the company received ₹0.54 lakh in dividends from investments.
• Interest received: The Company received ₹6.68 lakh in interest income from investments in 2022.
• Increase/ (decrease) in long-term Loans & Advances: The company's long-term loans and advances
Increased by ₹0.30 lakh in 2022.
• Net Cash from/ (used in) investing activities: This section shows that the company generated ₹7.99
Lakh from its investing activities in 2022, compared to ₹2.82 lakh in 2021, indicating increased
Investment activities.
C. CASH FLOWS FROM FINANCING ACTIVITIES:
• Interest and finance cost paid: The Company paid (₹10.78) lakh in interest and finance costs in
2022, down from (₹13.62) lakh in 2021.
• Proceeds from borrowing (net): In 2022, the company generated (₹0.01) lakh from borrowing
Activities, compared to (₹0.66) lakh in 2021.
• Net Cash from/ (used in) financing activities: This section shows that the company generated
(₹10.88) lakh from financing activities in 2022, compared to (₹14.28) lakh in 2021.
Overall Cash Flow Trends: The Company’s cash and cash equivalents decreased from the beginning of
the year to the end of the year. This suggests that, despite the positive changes in profitability and cost
management, the company used more cash than it generated during the year, potentially due to
increased investments or debt repayment.
Conclusion: These analyses provide insights into the changes in each component of the cash flow
statement and how they contributed to the overall cash flow trends from 2021 to 2022

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 DIRECTOR’S REPORT
The Directors' report for the financial year ending March 31, 2022, begins by presenting the
company's financial performance. The report highlights a substantial increase in revenue from
operations, which has risen by 121.17% compared to the previous year. The profit after tax has
also increased significantly, showing a growth of 79.56% compared to the previous year. The
report mentions that there were no transfers to specific reserves during the year, and no
dividends were recommended for the financial year ending March 31, 2022. It states that the
company's business nature remained unchanged throughout the year. Regarding financial
statements, the report complies with regulations and includes a Cash Flow Statement and
Consolidated Financial Statement as part of the Annual Report. The report discusses the
company's Risk Management Policy, emphasizing the identification, assessment, monitoring,
and mitigation of various risks. It mentions the existence of a Risk Management Committee and
provides access to the policy on the company's website. The internal control system is
highlighted as being aligned with the company's vision and routinely tested and certified by
both statutory and internal auditors. Any significant audit observations are reported to the
Audit Committee. The report states that there were no loans, guarantees, or investments made
under Section 186 of the Companies Act, 2013, during the year. It also assures that all related
party transactions were conducted at arm's length and in compliance with applicable
regulations. The Company's zero tolerance policy towards sexual harassment at the workplace
is mentioned, and it confirms compliance with provisions related to the constitution of an
Internal Complaints Committee. The report includes a link to the Annual Return for the financial
year 2021-22 on the company's website and mentions the number of board meetings
conducted during the year. Directors confirm their adherence to accounting standards, prudent
judgments, and proper maintenance of accounting records. They state that the annual accounts
have been prepared on a going concern basis and affirm the effectiveness of internal financial
controls and systems to ensure compliance with applicable laws. The report notes that no
deposits were accepted or renewed during the year, and it provides details of the remuneration
policy for employees. It discusses the reappointment of a director and the independence of
Independent Directors, affirming that there have been no changes in their status. The
Nomination and Remuneration Committee's role in determining director qualifications and
remuneration is highlighted. The report also provides information on the Stakeholder
Relationship Committee's activities. It mentions the annual meeting of Independent Directors
and their declaration of independence, along with familiarization programs provided to them.
Corporate Governance and policies related to the company's operations are referenced, and
compliance with Secretarial Standards is confirmed. The report states that the company's
Corporate Social Responsibility (CSR) initiatives are not applicable due to specific financial
criteria not being met. Lastly, the report expresses gratitude to shareholders, employees,
customers, banks, suppliers, and other business associates for their continued support and
cooperation.

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 MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY OVERVIEW:
Indian capital markets are essential for economic growth and the financial system's development. India's
Capital market has grown significantly in terms of resources, listed stocks, market capitalization, trading
Volumes, and investor base. Technological advancements and good governance policies are making the
Business environment more conducive and investor friendly.
BUSINESS OVERVIEW:
Alacrity Securities Ltd. is a Stock Broking and Financial Services firm listed on the Bombay Stock
Exchange. The company is transitioning into a full-service financial services company. They offer
Services for trading and investing in equity, equity derivatives, currency futures, and mutual funds. The
Focus is on providing a seamless client experience and access to timely research and data.
IMPACT OF COVID-19:
Brokerages are facing income distribution pressure due to the economic slowdown and the COVID-19
Pandemic, leading to market corrections.
FINANCIAL HIGHLIGHTS:
Details about the company's paid-up share capital, income from operations, profit/loss before taxes,
Earnings per share, and net worth as of March 2022.
REGULATORY:
The company is subject to supervision and regulation by multiple authorities, including SEBI and the
Exchanges. Compliance with statutory provisions and applicable laws is a priority.
OUR COMPETITIVE STRENGTHS:
Emphasis on dynamic management, diverse offerings, technology competence, and strong customer
Relationships.
GROWTH STRATEGIES:
Strengthening business, enhancing the client base, harnessing technology, and empowering human
capital are key strategies.
RISKS AND CONCERNS:
Various risk segments, including statutory compliance, economic factors, market-related risks, and
more, are acknowledged. The management seeks proactive risk management.
OUR PRODUCTS AND SERVICES:
Information about the company's offerings in equity and derivatives.

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OPPORTUNITIES AND THREATS:
Opportunities include India's growth rate, affluent customer focus, financial inclusion, technology
Utilization, and increased retail participation. Threats include market volatility, talent attraction and
Retention, economic factors, and competition.
HUMAN RESOURCES:
Human resources are considered essential, with an emphasis on talent identification, development, and
Cultural values.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
Robust internal control systems ensure efficiency, compliance, and protection of assets.
RISK MANAGEMENT:
Effective risk management is critical, and the company outlines its approach to identifying, measuring,
Mitigating, and reporting risks.
CAUTIONARY STATEMENT:
Statements in the report about the company's objectives and projections are forward-looking and
subject to various factors that may affect results.

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 AUDITOR’S REPORT
The auditor's report for AJOONI BIOTECH LIMITED’s standalone financial statements for the year
Ending March 31, 2022, can be summarized as follows:
1. Report on the Standalone Financial Statements & Opinion:
• The audit covers the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statements for the
Year ended March 31, 2022, along with explanatory information.
• Emphasis is placed on Note no. 26, which highlights that Gratuity and leave encashment liabilities are
Accounted for on a payment basis, not in line with accounting standard 15 for employee benefits.
• The auditor's opinion states that, based on their audit, the financial statements conform to the
Companies Act, 2013, and present a true and fair view according to the generally accepted accounting
Principles in India.
2. Basis for Opinion:
• The audit was conducted following the Standards on Auditing (SAs) specified under section 143(10) of
The Companies Act, 2013.
• The auditors assert their independence and compliance with ethical requirements.
• They believe that the audit evidence they obtained is sufficient and appropriate to form their opinion.
3. Key Audit Matters:
• The auditors determined that there are no key audit matters that require separate reporting in their
Opinion.
4. Information Other than the Standalone Financial Statements and Auditor’s Report:
• The responsibility for preparing other information, including Management Discussion and Analysis,
Board’s Report, Business Responsibility Report, Corporate Governance, and Shareholder’s
Information, lies with the Company's Board of Directors.
• The auditor's opinion does not cover this other information, and they do not express any assurance or
Conclusion regarding it.
• The auditor's role is to assess whether this information is materially inconsistent with the standalone
Financial statements or materially misstated, based on their audit work.
5. Management’s Responsibility for the Financial Statements:
• The management and Board of Directors are responsible for the preparation of the financial
statements

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In accordance with accounting principles generally accepted in India.
• Their responsibilities include maintaining adequate accounting records, selecting appropriate
Accounting policies, making reasonable judgments and estimates, implementing internal financial
Controls, and assessing the Company's ability to continue as a going concern.
6. Auditor’s Responsibility for the Audit of the Financial Statements:
• The auditors aim to provide reasonable assurance that the financial statements are free from material
Misstatement, whether due to fraud or error.
• They issue an auditor's report that includes their opinion.
7. Report on Other Legal and Regulatory Requirements:
• The report complies with the Companies (Auditor’s Report) Order, 2020, and reports on various
Aspects required by the Companies Act, 2013.
• The auditors have sought necessary information, confirmed the proper maintenance of books of
Account, and found agreement between the financial statements and the books of account.
• They state compliance with applicable Accounting Standards, confirm that none of the directors are
Disqualified as of March 31, 2022, and express an unmodified opinion on the adequacy and operating
Effectiveness of the Company’s internal financial controls over financial reporting.
• They also confirm the Company's disclosure of the impact of pending litigations and the absence of
Long-term contracts or delays in transferring sums to the Investor Education and Protection Fund during
The reporting year

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 CORPORATE GOVERNANCE REPORT
COMPANY PHILOSPHY ON CORPORATE GOVERNANCE:
The company under consideration consistently emphasizes the importance of managing its
Operations with diligence, transparency, responsibility, and accountability. This approach aligns
With the fundamental belief that an organization's corporate governance philosophy is intricately
Connected to achieving high performance. The company places a strong emphasis on
Understanding and honoring its fiduciary role and responsibilities toward its stakeholders and
Society in general. Its commitment to serving their interests ultimately leads to the creation of
Value for all parties involved. It's worth noting that, based on Regulation 34 of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, the requirement to furnish a Corporate
Governance Report does not apply to this particular company.

CONCLUSION
In this Project we analyzed the Annual Report of the company “Ajooni Biotech Ltd.”, we get to
Know about the company’s background. We also interpreted the Profit and Loss statement;
Balance Sheet and Cash Flow Statements and we came across to see the current scenario of the
Company whether the company is in profit or loss. Discussing the further reports we included
Director’s report, Management Discussion and Analysis, Auditor’s report and Corporate
Governance Report and we got to know about the effect of pandemic on the company, its current
Scenario and the possible future outcomes to achieve a new goal in the market

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 THANK
YOU

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