ShreeOswal Seeds And Chemicals Limited

Investor Presentation

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DisclaimerThis Investor Presentation has been prepared by Pantomath Capital Advisors Private Limited in consultation with ShreeOswal Seeds &Chemicals Limited (SSCL) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. Thispresentation or any other documentation or information (or any part thereof) delivered or supplied should not be deemed to constitute anoffer. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy,completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only currentas of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward lookingstatements”, including those relating to the general business plans and strategy of SSCL its future financial condition and growth prospects,future developments in its industry and its competitive and regulatory environment, and statements which contain words or phrases such as‘will’, ‘expected to’, ‘horizons of growth’, ‘strong growth prospects’, etc., or similar expressions or variations of such expressions. Theseforward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities andgrowth potential to differ materially from those suggested by the forward-looking statements. Further, no representation or warrantyexpressed or implied is made nor is any responsibility of any kind accepted with respect to the completeness or accuracy of any information.Also, no representation or warranty, express or implied, is made that such information remains unchanged in any respect as of any date ordates after those stated herein with respect to matters concerning any statement made in this Investor Presentation. SSCL may alter, modifyor otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. Thispresentation cannot be copied and disseminated in any manner. No person is authorized to give any information or to make anyrepresentation not contained in and not consistent with this presentation and, if given or made, such information or representation must notbe relied upon as having been authorized by or on behalf of SSCL . This presentation is strictly confidential. The earlier versions of thispresentation, were in draft form, and should not be circulated or referred to by any person.

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Company Overview

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Company Overview• ShreeOswal Seeds & Chemicals Ltd. was incorporated in the year 2002 as a

partnership concern at Neemuch, Madhya Pradesh.

• The Company is engaged in production, processing and sale of different kind ofagricultural seeds like wheat, mustard, soybean, blackgram, isabgol & maize.

• The Promoters of the Company are Mr. Sanjay Kumar Baigani & Dr. Anil KumarNahata.

• The Company was converted from partnership concern into public limited in theyear 2017.

• Company is involved in the research of all kinds of seeds.

• The Company processes various kinds of seeds which includes 5 varieties ofWheat seeds, 5 varieties of Soybean seeds, 3 varieties of Mustard seeds, 1 varietyof Black gram, 1 variety of Corn seeds and 1 Variety of Isabgol/Psyllium.

• The products are sold under the brand name of “OSWAL”.

• The majority of the sales are through our own brand name which contribute85.32% in the year 2016 and 95.25% in the year 2017 respectively.

• The Company has a diversified customer base covering states like Bihar,Jharkhand, Maharashtra, Madhya Pradesh, Rajasthan, Uttar Pradesh and Punjab.

• The subsidiary Company ShreeOswal Psyllium Export India Limited, is engagedin the business of manufacturing, processing and sale of psyllium husk andpsyllium husk powder.

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Milestones

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2017

Awarded most promising MSME in MP leadership series, presented

by Union Bank Of India.

2017

Conversion from partnership firm to

public limited Company in the

name and style of “ShreeOswal

Seeds and Chemicals Ltd”

2017

M/s Oswal Psyllium Exports

in which our Company was a

partner was converted into

public ltd co. and later on became

our wholly owned subsidiary

2018

ISO 22000:2005 Certification for

Food Safety Management

System

2015

The Company increased the production

capacity from 1000 tonnes to 22,500

tonnes2002

Commencement of the business under

the Partnership firm

Industry Overview

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Industry Overview

157.35 160.8 140.77 132.71

244.74 252.82

FY11 FY12 FY14 FY15 FY16 FY17

GDP by value added – size of agriculture and allied activities (US$ billion)

128 124 128 126 126 137

131 132 129 126 125 139

FY12 FY13 FY14 FY15 FY16 FY17

Production of food grains(million tonnes)

Rabi Kharif

• Gross Value Added by agriculture, forestry and fishing combined was US$ 252.82 billion in FY17 at constant

prices.

• According to the advanced estimates of MOSPI, agriculture and allied sector recorded a CAGR rise of 7.09 per

cent during FY07-17.

• Quarterly Gross Value Added (GVA) by Agriculture, forestry and fishing increased 1.7 per cent in Q2 2017-18.

• Agriculture is the primary source of livelihood for about 58 per cent of India’s population.

• Cotton production in India is expected to increase 9.3 per cent to 37.7 million bales in 2017-18.

• Kharif season lasts from April to September (summer); Rice (paddy) is the season’s main crop

• Rabi season lasts from October to March (winter); Wheat is the season’s main crop

• Total food grain production in the country was 275.68 million tonnes in FY17.

• As of December1 2017, total area sown with Rabi crops in India crossed 54.6 million hectares.

• India imported 2.7 million tonnes of wheat in FY17 (till January 16, 2017) and an additional 1.2 million tonnes

are to be imported by February 2017. India is expected to import up to 4 million tonnes of wheat in FY18.

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Business Overview

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Product Profile

Black Mustard

Wheat Soybean Hybrid Maize

Black gram Isabgol Yellow Mustard

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Manufacturing Unit

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Network Presence

Currently the Company has entered into the contracts with 752 farmers, there by giving access to around 2680 hectares of land.

4%

34%

36%

18%

7%

1%

State-wise Revenue Breakup (FY17)

Bihar

Maharashtra

MP

Rajasthan

UP

Jharkhand

(INR in lakhs)

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Business Process

•Nucleus Seeds•Breeder Seeds•Foundation Seeds•Certified /Research Seeds•Hybrid Seeds•High Quality Seeds•Truthful Seeds

Seed Production

•Crop (Field)Testing •Grow Out Testing •Insect Test •Germination Process•Purity Test•Moisture Test•Seed Health Test•Physical Purity Test

Quality control in Seed Process •Seed Cleaning

•Grader•Gravity Separation•Destoner•Spiral Separator•Milling Separator•Sortex Cleaning

Seed Processing

•Packaging under Our Own Brand

•Packaging for third party supplier

Packaging

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Psyllium/Husk Manufacturing Process

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Raw Material

Cleaning Unit

Other particles, foreign matters, sand

etc

Destoner Kice Aspirator Cleaned Seeds Dehusking (Grinders) Clearning by Blowing/Winnowing

Sand Dust (waste Particles)

Repeated Winnowing & Aspirator

Raw Material (Isabgol)

Lali & Powder

Finished Product (Psyllium Husk)Mixing to StandardPacking for DeliveryReady for Export

Pulverised Room for Powder

Fumigation, ETO or GAMMA RAYS

Organization Structure

ShreeOswal Seeds And Chemicals

Limited

Sanjay Kumar Baigani (Managing Director)

Anjali Bamboriya(Company Secretary)

Ashok Dhakar(Chief Financial Officer)

Dr. Anil Kumar Nahata(Director & CEO)

Krishna Kumar Sankhla

(Quality Controller)

Ram Patidar(Chief Production

Officer)

Arvind Jain (Plant Head)

Mahesh Bhatt(Chief Marketing

Officer)

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Key management

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Sanjay Kumar Baigani, Promoter, Chairman and Managing DirectorSanjay Baigani aged 45 years is associated with the Company since Incorporation. He has practical and handson experience in field related with taxation, accounting and computers. He has work experience of more than 10years with Anil Kumar Sanjay Kumar. He is the guiding force behind strategic decisions of the Company andhas been instrumental in planning and formulating the overall business strategy and developing businessrelations of our Company. He majorly looks after accounts department and finance department of our Company.

Dr. Anil Kumar Nahata, Promoter and CEO Dr. Anil Nahata aged 42 years is associated with the Company since Incorporation. He looks after the overallbusiness affairs majorly taking care of sales department, purchase department, production department andmarketing department of our Company. He has work experience of more than 9 years with M/s. NahataBrothers. He has also participated in many conventions related with Agri-Industry, ICAR- National ResearchCentre on seed spices and India Expo, which was held in Karachi Expo. Center, Pakistan.

Continue to expand & diversify our product portfolio & widen

our customer base

Promotion of our brand recognition

Expansion of our production capacity

Leveraging our Marketing skills & Relationships

Continue to improve operating efficiencies

Business Strategy

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Financials Highlights

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Financial Performance Chart

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140210

303 348

598

FY14 FY15 FY16 FY17 FY18

EBITDA (INR in lakhs)

CAGR 43.74%

18 31 32

102

229

FY14 FY15 FY16 FY17 FY18

PAT (INR in lakhs)

CAGR 89.71%

3,350

5,860

3,887 4,300

7,819

FY14 FY15 FY16 FY17 FY18

Revenue (INR in lakhs)

CAGR 23.60%

Figures of FY18 are as per Consolidated Basis and other financial as per Standalone Basis

Key Ratios (Standalone)

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ParticularsFor the half year ended 31st Mar,

2018

For the half year ended 30th Nov,

2017FY17 FY16 FY15 FY14

EBITDA Margin 12.95% 7.94% 8.09% 7.81% 3.59% 4.18%

PAT Margin 6.85% 2.51% 2.38% 0.83% 0.53% 0.53%

EPS 1.23 1.44 1.66 0.52 0.50 0.29

NAV 10.64 11.95 9.81 7.90 8.19 5.03

RONW 8.03% 12.02% 16.92% 6.61% 6.13% 5.71%

ROCE 6.74% 15.39% 15.61% 13.54% 8.54% 9.60%

Debt Equity Ratio 1.06 1.24 2.31 3.31 3.57 3.26

Our Company was converted from partnership to public limited Company wef Dec,2017

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Particular As at 31st Mar, 2018 As at 30th Nov, 2017 FY17 FY16 FY15 FY14 FY13

EQUITY AND LIABILITIES

Shareholders Funds:

Share Capital 1,066.90 755.31 605.06 487.49 505.09 310.28 265.57

Reserve & Surplus 102.36 - - - - - -

Non Current Liabilities:

Long Term Borrowings 18.57 6.27 59.00 122.46 132.91 109.79 106.21

Deferred Tax Liabilities 0.25 0.87 2.62 5.34 2.23 1.73 1.57

Long Term Provisions 3.97 3.79 3.66 2.74 1.77 1.32 1.15

Current Liabilities:

Short Term Borrowings 1,218.54 926.62 1,329.99 1,479.91 1,660.31 889.42 300.72

Trade Payables 50.08 137.48 10.24 7.55 11.17 19.45 7.93

Other Current Liabilities 660.52 23.63 681.89 382.38 692.61 1,508.64 795.20

Short Term Provisions 11.52 30.71 42.42 2.01 3.07 3.35 1.60

Assets

Non Current Assets:

Fixed Assets 150.80 157.58 186.99 209.71 129.99 115.58 109.60

Non-current Investments 353.16 3.17 - - - - -

Long Term Loans & Advances - 332.76 - - - - -

Current Assets:

Inventories 1,759.28 291..87 1,491.10 1,948.26 2,574.25 2,550.72 1,273.28

Trade Receivables 493.65 971.74 619.61 134.08 85.21 21.40 29.82

Cash & Cash Equivalent 68.46 71.24 398.84 60.16 184.99 31.62 32.20

Short Term loans & Advances 230.37 36.25 38.34 137.67 34.71 124.62 35.05

Other Current Assets 76.99 20.07 - - - - -

Total 3,132.71 1,884.68 2,734.88 2,489.88 3,009.15 2,843.94 1,479.95

Balance Sheet (Standalone)

(INR in lakhs)Our Company was converted from partnership to public limited Company wef Dec,2017

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Particular For the half year ended 31st Mar, 2018

For the half year ended 30th Nov, 2017 FY17 FY16 FY15 FY14 FY13

Revenue from Operations 1,294.26 3,520.06 4,284.24 3,878.02 5,853.62 3,342.94 2,252.71

Other Income 36.59 10.10 15.88 9.02 6.63 7.17 1.62

Total Revenue 1,330.85 3,530.16 4,300.12 3,887.04 5,860.25 3,350.11 2,254.33

Expenses:

Cost of Materials Consumed 1,628.40 2,845.65 3,548.30 3,366.27 5,317.09 3,533.54 2,307.30

Changes in Inventories (519.26) 328.22 262.42 40.20 109.33 (435.87) (204.56)

Employees Benefit Expenses 18.88 18.10 22.95 25.58 28.76 24.70 25.64

Other Expenses 30.52 57.93 118.77 151.58 194.18 87.70 58.76

EBITDA 172.31 280.26 347.68 303.41 210.29 140.04 67.19

Depreciation and amortization expense 9.72 20.47 34.82 18.93 13.13 13.25 1.18

EBIT 162.59 259.79 312.86 284.48 197.16 126.79 66.01

Finance Cost 50.37 127.22 159.59 237.96 152.34 101.15 47.92

Profit Before Tax 112.22 132.57 153.27 46.52 44.82 25.64 18.09

Tax expense:

(1) Current tax 21.70 45.71 53.59 11.20 13.34 7.78 4.02

(2) Deferred tax (0.61) (1.76) (2.71) 3.11 0.50 0.15 1.57

Profit (Loss) for the period 91.13 88.62 102.39 32.21 30.98 17.71 12.50

Profit & Loss Statement (Standalone)

(INR in lakhs)Our Company was converted from partnership to public limited Company wef Dec,2017

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ParticularFor the half year ended 31st Mar,

2018

For the half year ended 30th Nov,

2017FY17 FY16 FY15 FY14 FY13

Cash Flow From Operating Activities:Net Profit before tax as per Profit And Loss A/c 112.19 132.58 153.30 46.51 44.80 25.66 18.10 Adjustments for:Depreciation & Amortisation Expense 9.72 20.48 34.81 18.93 13.13 13.24 1.17 Provision for Gratuity 0.19 0.11 0.95 0.99 0.46 0.18 0.25 Finance Cost 50.38 127.21 159.58 237.97 152.35 101.15 47.92 Interest Income (36.59) (10.10) (15.88) (9.01) (6.63) (7.17) (1.62)

Operating Profit Before Working Capital Changes 135.89 270.29 332.77 295.39 204.11 133.07 65.83 Changes in Working Capital (731.77) 240.70 421.48 159.56 (821.58) (631.97) (129.74)

Net Income Tax (paid) / refunded - - (61.55) (11.43) (13.76) (7.75) (4.17)Net Cash Flow from/(used in) Operating Activities: (A) (595.87) 510.99 692.70 443.42 (631.22) (506.65) (68.08)Cash Flow From Investing Activities:Purchase of Fixed Assets (including capital work in progress) (2.93) 8.91 (12.08) (98.65) (27.54) (19.20) (106.90)Interest Income 36.59 10.10 15.88 9.01 6.63 7.17 1.62

Investments (made) / sold (349.99) (3.17) - - - - -Long Term Loans & Advances Given 332.76 (332.76) - - - - -

Net Cash Flow from/(used in) Investing Activities: (B) 16.42 (316.91) 3.80 (89.64) (20.91) (12.03) (105.28)Cash Flow from Financing Activities:Net Increase/(Decrease) in Short Term Borrowings 291.92 (403.36) (149.92) (180.40) 770.88 588.72 300.72 Net Increase/(Decrease) in Long Term Borrowings 12.29 (52.73) (63.46) (10.44) 23.12 3.57 (267.23)Net Increase/(Decrease) in Share Capital / Partners Capital 322.84 61.62 15.14 (49.80) 163.86 26.97 211.84 Interest paid (50.38) (127.21) (159.58) (237.97) (152.35) (101.15) (47.92)Net Cash Flow from/(used in) Financing Activities ( C) 576.68 (521.68) (357.83) (478.61) 805.51 518.11 197.41

Net Increase/(Decrease) in Cash & Cash Equivalents (A+B+C) (2.78) (327.60) 338.68 (124.83) 153.37 (0.58) 24.04 Cash & Cash Equivalents As At Beginning of the Year / Period 71.24 398.84 60.16 184.99 31.62 32.20 8.16 Cash & Cash Equivalents As At End of the Year / Period 68.46 71.24 398.84 60.16 184.99 31.62 32.20

Cash Flow Statement (Standalone)

(INR in lakhs)Our Company was converted from partnership to public limited Company wef Dec,2017

23 (INR in lakhs)ShreeOswal Psyllium Exports India Ltd. became subsidiary Company in the FY 2017-18 wef 6th Dec, 2017

Particular FY18

Revenue from Operations 7,775.30

Other Income 43.27

Total Revenue 7,818.57

Expenses:

Cost of Materials Consumed 7,248.95

Changes in Inventories (191.04)

Employees Benefit Expenses 43.04

Other Expenses 119.73

EBITDA 597.88

Depreciation and amortization expense 33.47

EBIT 564.41

Finance Cost 249.68

Profit Before Tax 314.73

Tax expense:

(1) Current tax 87.70

(2) Deferred tax (2.38)

Profit (Loss) for the period 229.41

Profit & Loss Statement (Consolidated)Balance Sheet (Consolidated)Particular FY18

EQUITY AND LIABILITIES

Shareholders Funds:

Share Capital 1,066.90

Reserve & Surplus 121.53

Minority Interest 0.05

Non Current Liabilities:

Long Term Borrowings 139.26

Long Term Provisions 3.97

Deferred Tax Liabilities 0.24

Current Liabilities:

Short Term Borrowings 2,341.86

Trade Payables 740.83

Other Current Liabilities 684.41

Short Term Provisions 19.33

Assets:

Non Current Assets:

Fixed Assets 344.34

Less: Accumulated Depreciation 112.40

Non-current Investments 3.17

Current Assets:

Inventories 3,281.96

Trade Receivables 1,107.66

Cash & Cash Equivalent 94.01

Short Term loans & Advances 218.56

Other Current Assets 181.09

Total 5,118.38

IPO Highlights

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IPO Highlights

Details Particulars

Issuer ShreeOswal Seeds And Chemicals Limited

Issue Type Book Built Issue

Issue Price Rs. 25-26 per equity share

Issue Size Upto 45,76,000 Equity Shares of Rs. 10 through Fresh Issue

Bid/ Offer Opens On 7th June, 2018

Bid/ Offer Closes On 12th June, 2018

Lot Size 4000 Equity Shares

Exchange NSE Emerge

Issue Structure

Market Maker Portion Upto 2,32,000 Equity Shares

Non-Retail Portion Upto 21,72,000 Equity Shares

Retail Portion Upto 21,72,000 Equity Shares

Book Running Lead Manager

IPO Structure

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Particulars Pre Issue Holding (%)

Post Issue Holding (%)

Promoter & Promoter Group 100 69.97

Others - 30.02

Particulars No. of Equity Shares Aggregate Nominal Price (INR In Lakhs)

Issue, Subscribed and Paid up capital before the Issue 1,06,69,000 1066.90

Fresh Public Issue 45,76,000 457.60

Issue, Subscribed and Paid up capital after the Issue 1,52,45,000 1,524.50

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Object of IPO

Sr. No. Particulars Amount(INR in Lakhs)

1. Purchase of Machinery 162.95

2. Working Capital Requirement 625.00

3. General Corporate Purposes [●]

Net Proceeds from the Issue:

• Purchase of New Plant & Machinery

• Funding of Working Capital Requirement

• General Corporate Purposes.

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Competitive Strength

Competitive Strength

We have developed a diverse portfolio of seed

products

We have a distribution network across various

geographies

Our experienced management and dedicated

employee base

Quality certifications

Established Brand

01

02

03

04

05

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SWOT Analysis

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Strength• Location of our

manufacturing unit• Experienced promoters• Established brand

Weakness• Seasonal nature of

business • Absence in foreign

market

Opportunity• Expanding to

geographical markets• Enhancing functional

efficiency• Expanding product

portfolio

Threat• New competitors

entering into market• Increased regulation

Peer Comparison

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Comparison CMP EPS PE Ratio RONW (%) NAV(per Share)

Face Value

Total Income (INR in lakhs)

ShreeOswal Seeds and Chemicals Limited 26 2.66 9.77 15.83% 10.64 10.00 4,861.01

Peer Groups

Kaveri Seed Company Limited 493.90 11.36 43.48 7.83 145.14 2.00 70,424.00

Mangalam Seeds Limited 99.70 5.98 16.67 13.27 42.86 10.00 3,023.66

Monsanto India Limited 2770.40 85.48 32.41 27.86 306.79 10.00 65,416.00

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Lead Manager

Pantomath Capital Advisors Private Limited406-408, Keshava Premises, Behind Family Court, BKC, Bandra East, Mumbai – 400051, Maharashtra

Issuer Company

ShreeOswal Seeds And Chemicals Limited"Oswal House”, Opposite Balkavibairagi

College Nasirabad Highway, Village Kanwati, Neemuch- 458441 , Madhya Pradesh, India

Thank you