Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• stubbed markets and cheaper imports and nonavailability of raw materials
• price volatility of trading was very high

Mitigation Strategies

• Entering into long term contract with the raw- material suppliers for continuous supply
• Direct marketing of by- products to improve the margins

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Price volatility in edible oil trading.
• Operational hampering due to Covid-19 pandemic.
• Raw material availability affecting margins.

Mitigation Strategies

• Focus on refinery of edible oils for long-term sustainability.
• Better working capital management.
• Strengthening HR processes and practices.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Price volatility in edible oil trading.
• Raw material availability affecting margins.
• High credit risk from widespread debtor base.
• Regulatory uncertainties and changes in customs and excise duty structures.
• Global demand-supply dynamics impacting domestic realizations.

Mitigation Strategies

• Optimum utilization of working capital resources and better financial management.
• Better working capital management.
• Use of risk mitigation tools such as agro-commodity futures to manage price risk.
• Forward currency covers for imports and exports to hedge against currency risks.
• Diversification of operations across oil categories.
• Establishment of import-based refining plants in areas with tax breaks.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Decline in sale of edible oil products, specifically rice bran oil, cotton oil and palm carnal oil in the market.
• Slowdown or shutdown in manufacturing/processing operations, or under-utilization at the existing manufacturing facility.
• Inadequate supply of raw materials/finished goods or increase in cost to secure sufficient raw materials/finished goods.
• Disruption in transportation arrangements or increases in transportation costs.
• Improper handling, storage or processing of raw oil or oil products, or any spoilage thereof, or any real or perceived contamination in oil products.
• Inability to manage inventory and foresee accurate demand for products.
• Availability of spurious, look-alikes, counterfeit products.
• Significant competitive pressures.
• Inability to maintain a distribution network.
• Unfavorable local and global weather patterns.
• Non-compliance with safety, health, environmental and labour laws.
• Disputes with consumers regarding the quality of products.
• Failure to obtain, maintain or renew statutory and regulatory licenses, permits and approvals.
• Fluctuations of oil prices in the international market.
• Working capital intensive business with relatively long implementation periods.
• Non-receipt of minimum subscription.
• Related party transactions.
• Negative cash flow.
• Inability to pay dividends.
• Significant shareholding retained by promoters.
• Observations in the secretarial audit report.
• Inability to adequately protect intellectual property.
• Potential infringement on intellectual property rights of others.
• Trade receivables pending for more than 6 months.
• Observations in the statutory audit report (gratuity provision, outstanding statutory dues).
• Dependence on senior management, directors and key personnel.
• Lack of insurance coverage.
• Unsecured loans from related parties.
• Compliance with rules and regulations imposed by Stock Exchanges and SEBI.
• Broad discretion over utilization of Net Proceeds.
• Cyber security risks and security breaches.
• Failure to stay up to date with technological changes.
• Impact of COVID-19 pandemic.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Ind AS

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Price volatility of trading in edible oils.
• Raw material availability concerns.
• Stiff challenges in marketing products due to little product differentiation and lack of long-term contracts.
• High credit risk from widespread debtor base.
• Regulatory uncertainties and changes in customs and excise duty structures.
• Global demand-supply dynamics affecting domestic realizations.
• Highly volatile international oil prices.
• Government interventions through frequent changes in international trade-related regulations.

Mitigation Strategies

• Optimum utilization of working capital resources and better financial management.
• Better working capital management.
• Maintaining adequate stocks to achieve optimal capacity utilization during the offseason.
• Using risk mitigation tools such as agro-commodity futures to manage price risk.
• Using forward currency covers for imports and exports to hedge against currency risks.
• Branding and retailing of edible oils.
• Diversifying operations across more than one oil category.
• Setting up import-based refining plants in areas that offer tax breaks.
• Providing a credit period of 2 to 4 weeks and offering cash discounts.

Supply Chain Management

Climate-Related Risks & Opportunities