MANAGEMENT DISCUSSION & ANALYSIS:

Your directors are glad to brsent below the management discussion and analysis for the year 2014-15:

Industry structure and developments:

Company is mainly engaged in export as well as domestic business of Agriculture products viz. Oil Seeds, Herbs, Food Grains, Feed Ingredients, dry fruits etc. The year 2014-15 was a challenging year for the export business with market witnessing strengthening of Indian currency and increased prices of raw material in the local market. On international front as well, it faced challenges due to weaker economic prospects in many countries, softening of crude oil and commodity prices, and changing paradigms for trade across the globe. During fourth quarter of the financial year, unseasonal rains in February and March 2015, continued to pose challenges in the agriculture export sector.

Worldwide, the agricultural market saw a drastic decrease in the prices of the commodities in contrast to the high prices locally in India.

On the other hand, we saw new products and new markets emerging up with new opportunities in agriculture sector.

Opportunities:

The management of your company is hopeful of expanding the business more & more in the coming years on account of strengths it has which will help to have a competitive edge to your company and thus getting new opportunities, which are briefly as under:

• Energetic management team leading self motivated employees.

• Continuous efforts for exploring untapped market of animal feed and food Products

• Ethical and professional relations with the customers.

• High quality standards and after sale services.

Threats:

The year under the review saw various unforeseen and unavoidable risks which can adversely affect the business at any point of time, which are briefly as under:

Weather conditions & Monsoon

Government Policies/Fiscal policies

Price Volatility

Local market (demand & supply)

International market ( costs locally cheaper in other countries which may help them to be more price competitive)

Your company's performance has to be viewed in context of the aforesaid economic and market environment.

Segment-wise performance:

a) Feed Products:

Feed products accounts for the major exports of your company. The management is committed to explore more in this sector. However, the current year saw steep decrease in the demand of Indian agricultural commodities like Rapeseed meal, Soyabean Meal, Yellow Corn, Wheat, etc. in major Asian countries like Vietnam, Indonesia, Taiwan, etc. because of the apbrciating Indian currency, higher prices of material in local market and cheaper prices of the same commodities in US, Brazil, Argentina Origin. Moreover, various new other products like DDGS from US, Dubai were introduced in the market at cheaper prices.

However, your company made all efforts to cope up with this scenario. We explored the opportunity of business in Bangladesh and started third country exports. We are further planning to start the same by offering products of other countries as well.

To explore the feed market in UAE, your company participated in AGRAME-2015, held in Dubai in March 2015 and the company is hopeful to get its positive results in the coming years.

In the domestic market, against all odds, revenue from local sales stood at Rs. 946703570.34 registering a growth of 4.19% and hopeful to perform better in coming years.

b) Spices /Food:

This sector too was affected by fierce competition. However, your company did fairly well in this sector also. In an effort to explore new products and market, your company started import of pulses and is hopeful of its long term beneficial results.

Outlook:

The company showed a good performance in the year 2013-14 and was hopeful to achieve the same during the year under review i.e. 2014-15. The sales of the company is good however the economic and market conditions lowered the margins and thus affecting the profitability of your company.

The management will keep working towards the successive growth of the company with a positive outlook and will make efforts to minimize various risks being posed in the regular working of the business from time to time. We are continuously working to expand third country exports and trading of pulses.

Your company will continue to exhibit in various exhibitions of international repute as a step towards exploring new trade possibilities in different markets the world over.

For domestic sales as well, we are in close communication with big institutional buyers and in the coming years we estimate to cater to serve increased domestic demand. We are already meeting the local demands in South, East & West parts of India. Also, trying to add more products in your company's product mix so as to be able to cope with the stiff competition in the domestic market. However, price volatility and seasonal factors remains a matter of concern and accordingly your management will keep reviewing the policies enabling the Company to follow commercial wisdom.

Risk and concerns:

Company is engaged in exports of agricultural commodities and is prone to inherent business risk like any other organization. Major factors of risk may be e.g. Market, currency fluctuation, competition, financial and legal risks. Risk management policy of the company lays down standards of identifying the potential threats, their likelihood of occurrence and taking appropriate actions to address the same. Also it involves periodic review of the operations so that proper actions can be taken to minimize the risk.

Internal Control System:

Your company is driven by ethics and believes in the concept of professionalism. For managing the complexities of growing business, your company has made internal systems which help in completing the tasks, in a professional manner. All the employees of the company have br-defined roles to perform which are monitored from time to time and thus helps to make sure that systematic and disciplined way of working is followed. An Internal Audit Control has been developed which helps to evaluate and improve the effectiveness of risk management and governance. This helps in getting an edge in this competitive market and eliminating the avoidable costs.

Financial and Operational Performance:

The revenue from operations showed a decrease from Rs. 24220.11 lakhs to Rs. 19545.77 lakhs, decline of 19.3% in turnover, and profit after tax (PAT) from Rs. 455.91 lakhs to Rs. 140.20 lakhs, decline of 68.96% in profitability due to severe adverse market conditions.

Human Resources:

With a belief that employees are the assets for a company, your company is committed for proper utilization of its human resources with an aim to achieve professional excellence and sustainable mutual growth. As on 31st March, 2015, Company has 13 Employees on its roll.

Cautionary Statement:

Statements made in "Management Discussion & Analysis" describing projections, company's objectives and planning may be somewhat forward looking within the meaning of applicable laws and regulations. The Actual results might differ depending upon brvailing trends, international business scenario, government policies, demand and availability of products and government support by means of direct or indirect assistance for export of products from time to time.

ACKNOWLEDGEMENT:

Your directors exbrss their sincere thanks to Central and State Government departments, Banks, foreign buyers and customers for their cooperation and encouragement they always extended to the company and look forward for their continued support. For the continuous support and meticulous efforts of Dealers, Business Associates and employees in ensuring an all round improved operational performance, your directors wish to place on record their sincere thanks and apbrciation.

For & on behalf of the Board of Directors

J.P. Kanodia Chairman & Managing Director

DIN: 00207554

Place: Jaipur

Date: 08.07.2015