MANAGEMENT DISCUSSION AND ANALYSIS REPORT We submit hereunder Management Discussion and Analysis Report on the business of the company as applicable to the extent relevant: Your Company has explored its activities by taking up new activities like Bakery and retailing in order to meet competitive market situation. OPPORTUNITIES, RISKS, CONCERNS THREATS & OUTLOOK: Indian consumer with constantly expanding wallet and higher aspiration constitutes the largest opportunity for your Company. Second opportunity lies in the constant force of technology change. This provides your Company with opportunity to meet consumer needs differently from its competitors. Technology also gives us opportunity to improve efficiency and productivity. Growth of individual categories is linked to the overall economic growth. Primary risk to the business will be on account of adverse changes to the economy. Volatility in commodity prices is the other risk. Your Company is looking forward to meet the needs of changing economic scene in India and also to enhance the size and value of business activities of the company so that it will be able to achieve optimal return on capital employed. INTERNAL CONTROL SYSTEMS & ADEQUACY: Your Company's internal control systems are commensurate with the nature, size and complexity of its business and ensure proper safeguarding of assets, maintaining proper accounting records and providing reliable Rs.nancial information. The Board and Audit Committee regularly evaluates the functioning and quality of internal controls and provides assurance of its adequacy and effectiveness through periodic reporting. FINANCIAL AND OPERATIONAL PERFORMANCE: The company has subsidiary which mainly deals in Food industry and the consolidated highlights of financial Performance are given below: The consolidated sales and other income were Rs. 1740.42 Lakhs as against Rs. 2227.21 Lakhs in the brvious year. The Consolidated net profit/(loss) for the year was Rs. (32.42) Lakhs against Rs. (89.62) Lakhs. SEGMENT-WISE PERFORMANCE: M/s. Sai Aditya Foods and Retail Private Limited which is a subsidiary company of your company, primarily deals in the business segment of Food Industry. HUMAN RESOURCES, INDUSTRY DEVELOPMENT RELATIONS: Your Company has laid high emphasis on driving an effective and transparent Performance Culture and an open mind-set. Your Company is committed to creating an environment of learning and development, promote internal talent and develop cross functional expertise. The human resource strategy is focused on creating a performance driven environment in the company, where innovations is encouraged, performance is recognized and employees are motivated to realize their potential. SENIOR MANAGEMENT DISCLOSURES: The Company's senior management makes disclosures to the Board relating to all material financial and commercial transactions as when they occur. CAUTIONARY STATEMENT: Statements in this Management Discussion and Analysis describing the Company's objectives, expectations or brdictions may be forward looking within the meaning of applicable laws and regulations. Actual results could differ materially from those exbrssed or implied. For and on behalf of Board R.Ravichandran Wholetime Director DIN 00110930 Place: Hyderabad Date : 29.05.2015 |