MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Regulation 34 of the Securities and Exchange Board of India (Listing Obligation and Disclosures Requirements) Regulations, 2015 stipulates disclosure under specific heads which are given in the following paragraphs and which continue to be followed in the usual course of the Company's business over the years in discussion amongst the Directors and other Senior Management Personnel.

(a) Industry Structure and Developments

Tea being one of the most popular beverages of the world, still continues to enjoy breminence. Tea crop has specific agro-climatic requirements which are available in tropical and sub-tropical climates and consequently tea production is geographically limited to a few areas in the world. The tea bush is highly sensitive to changes in growing conditions and the vagaries of weather continue to determine the volume and quality. The tea industry in India is in the latter half of its second century; India continues to be the second largest tea producer and also the largest consumer. The industry provides employment opportunities directly and indirectly to more than a million people. Tea is grown in India mainly in Assam, West Bengal, Tamil Nadu and Kerala offering Orthodox, CTC and Green teas. The industry continues to earn substantial foreign exchange and contributes to the country's economy.

(b) Opportunities and threats

Tea is a valuable global agricultural commodity, both commercially and culturally. Assam, an agrarian state in northeast India, is the largest single-tea growing region in the world and the productivity (both in terms of quantity and quality) requires a specific range of enviro-climatic condition. In the last decade, the region has been affected by heterogeneous spatio-temporal distribution of brcipitation and rising temperatures. Climatic changes are occurring across the globe, effect of which is also felt in this country. Your Company continues to produce well made quality tea consistently. Indian tea exports are susceptible to the financial meltdown and to that extent slowdown was inevitable. Other threats are weather related which are not in control of the Industry. Nonetheless, good agricultural practices can minimize the effect of adverse climatic conditions to some extent. Your Company maintains the standards of its produce both in the domestic as well as overseas markets, mainly on account of its consistent thrust on quality. Your Company's estates are Rainforest Alliance and ISO 22000:2005 certified. In addition, Company's Integrated Pest Management Policy relating to agro inputs is in conformity with the Plant Protection Code (PPC) of Tea Board of India and also stringent conditions of the European Commission of the European Union (EU).

(c) Segment-wise or Product-wise Performance

The Company does not have any separate primary business segment as it sells only black tea in bulk. However, it continues to sell such teas both in the domestic and overseas markets.

(d) Outlook

Tea continues to be the most popular beverage in the country and is growing in significance as a health drink also; the per capita consumption of tea in the country is increasing. Your Directors continue in their emphasis on the "Quality" of tea.

(e) Risks & Concerns

Tea being an agro-product is essentially dependent on favourable climatic conditions to generate both quality and quantity. The last few years have seen deviation from the usual climatic pattern, which necessarily has affected both the volume and the quality of the produce. Costs have steadily risen including significantly in labour and welfare expenses. In the face of fluctuating growing conditions coupled with increasing costs, suitable adaptations in the plantations as well as appropriate marketing efforts can improve the performance of the industry, of which your Company is a part.

(f) Internal Control Systems & their Adequacy

Your Company has in place tried and tested internal control systems including combrhensive internal audit by external firms of Chartered Accountants besides checks carried out by the Cost Auditors, the Secretarial Auditor and the Statutory Auditors during the course of their respective audits. These are periodically reviewed by the management as well as by the Audit Committee. Such systems are commensurate with the Company's size and nature of operations and provide reasonable assurance with regard to reliable data, compliances, securing its assets from unauthorized use or loss and ensuring that operations are carried out in consonance with the Company's policies. The different sets of auditors periodically visit the Company's various units, their reports are looked into by the management and by the Audit Committee for effecting corrective action/ improvement as may be called for.

(g) Financial Discussion on Performance with respect to Operational Performances

The Company continues with its emphasis on quality which holds it in good stead in the market. However, steadily increasing costs coupled with lower than target crop as well as lower unit realizations have affected results, details whereof are available in the Accounts. The Company continues with its ongoing focus on good governance and practices across all its operations, including production and manufacture of tea.

(h) Material Developments in Human Resources/Industrial Relations Front including number of people employed

Your Company has always been concerned of its most valuable asset which is human resources. The industry is essentially labour intensive and the role of the employees is critical to the Company's operations. Efforts continue for training of employees at different levels as are considered necessary and appropriate. Employee relations continue to remain cordial during the year under review.