MANAGEMENT DISCUSSION AND ANALYSIS:

The year 2015-16 was an extraordinary year for the company. The Company has posted the highest Sales in the last decade. During the period under review the Company has continued to manufacture Kurkure for M/s. Pepsico India Holding P. Ltd and infant food products, Farex, Easum and First Food for M/s. Nutricia India P. Ltd. on a monthly basis. The Company has also successfully launched their own product under the brand "Cnergy" in the market. Cnergy is a multi-cereal scoop which has been launched in 3 flavors. The objective is to manufacture and push our own brand along with the existing core contract manufacturing business. This will lead to higher Sales and better financial results.

The Company also has continued to manufacture and market its existing brand "Bonny Mix" in the local market. The Company also has received enquiries from some of the multinationals for new products to be launched in the future.

The Company has recorded the highest capacity utilization till date in manufacturing and now with the addition of new Principals the balance production and packing capacity will also be fully utilized.

The well qualified and experienced team of technical Chemists, Engineers and Specialists ensures continuous improvement to help cut cost and to provide the highest quality products to our Customers. The Company has an established and efficient Internal Accounting, Audit and Administrative control systems to ensure full and timely implementation of the Management Policies and Plans.

Regular Training and Management programs are carried out for employees.

The Company is also exploring potential opportunities to set up units in other parts of the country and also manufacture new categories of products.

The Company enjoys cordial relations with all its employees.

Your Company has proper and adequate system of internal control to ensure that all assets are protected and safeguarded. Your Company has well documented operating procedures and authorizations which itself are adequate for internal controls. Adequate internal checks are built in to cover all financial transactions with systematic delegation of authority.

Some of the statements given in the above Management discussions and analysis about the Company's projections, estimates or expectations may be 'forward looking statements'. Actual results may differ substantially from those exbrssed or implied statements. Your company undertakes no obligations to publicly revise any forward looking statement to reflect future events or circumstances.