MANAGEMENT ANALYSIS AND DISCUSSION

Financial Results of Operations :

Sales increased to Rs. 446.31 lacs as compared to Rs. 226.88 lacs during the brvious year. However, there was a steep increase in material cost and expenses which resulted in an operational loss of Rs. 146.12 lacs as against Rs. 86.43 lacs in brvious year.

There is an Increase in debrciation on account of a change in computing debrciation for the year. The earlier straight line method is revised and debrciation is now computed on the basis of useful life of assets as per Schedule II of the Companies Act 2013 . The increase in debrciation on account of change in computing debrciation in the current year is higher by Rs. 115 lacs (brvious year nil).

The total loss during the year was Rs. 275 lacs as compared to a profit of Rs. 11.96 lacs in the brvious year. Profit in the brvious year reflected an extraordinary item of impairment written back of Rs. 111.84 lacs.

Industry Structure Overview :

The Indian snack food industry is large and growing. However its a very competitive field with well established players. We are operating in the niche "nuts" segment where the majority of products are sold as commodities without any product differential. Our products have been apbrciated by customers and are positioned in the brmium end.

Outlook :

We anticipate being able to grow the business with access to working capital funds and better control over purchases and expenses.

Opportunities and threat :

We are optimistic about the prospects for the snack food industry and particularly the nuts segment in which we operate. We expect the number of players to increase and that some of our customers may develop house brands. Changes in exchange rates, new regulations covering food products, and the need to finance seasonal purchases are some of the concerns and risks inherent in the business.

Strategy :

With the objective to sustain growth we are pursuing several strategic initiatives in key areas of the business. The key elements of the strategy includes strengthening of product portfolio, refreshing and updating existing products and improving the quality processes with the objective to be the best in class product. Our priority is to build long term relationships with institutional customers and modern retail where we anticipate significant growth in the coming years.

Long Term & Short Term Borrowings :

Short Term borrowing during the year Borrowings was Rs. 238.60 lacs The increase is primarily on account of repayment of advances and funding of losses incurred during the year.