1. INDUSTRY OUTLOOK:

During the period under review economy was passing through very good stage .There were tremendous potential growth shown in the markets. Due to new government and changes in government policies, plus government regulations current scenarios are very impressive there is lot of potential demand for the next years. Our company has also made good progress in turnover as well as in profit ratios.

2. OPPORTUNITIES AND THREATS:

The company envisaged remarkable growth over previous years. Company’s turn over shows increasing trends due to expansion of the financial charges and depreciation are higher over the previous year. Government is providing various incentives under TUFs .The Customers also growing rapidly. At the same time, there is intense price pressure from the competitors and international financial crisis.

3. INITIATIVES

The initiatives are being taken by the Company for improving the quality standards and reduction of costs at appropriate level. New machineries were installed to provide better result and to cope up with changing requirement of the industry. The employees at all levels are being made aware of the changing conditions and the challenges of the open market conditions and to train the personnel to tackle the difficult situations which will improve the overall productivity, profitability. Also initiatives were taken by company to direct touch with farmers and also providing them quality services and knowledge.

4. RISKS AND CONCERNS;

Major fluctuations Rupee v/s dollar price corresponding to fluctuation in the raw material price and stringent market conditions can affect the company's performance. Product risk, risk of fluctuation in the raw material price, government policies, financial risk can affect the company , which requires continuous follow up.

5 .DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Significant financial highlights in F.Y. - 2016 are as follows:- Profit Before Tax (PBT)

During the fiscal 2015-16, the Company has reported PBT of Rs. 49.81 lacs when compared to the previous year’s figure of Rs. 164.78 lacs showing a loss of 69.77%.

Profit After Tax (PAT)

During the fiscal 2015-16, the Company has reported a PAT of Rs. 52.91 lakh when compared to the previous year’s figure of Rs. 113.86 lakh, showing a loss of 53.53%.

Earnings Per Share (EPS)

EPS in the fiscal 2015-16 is at 1.27 as compared to EPS of 0.75 in fiscal 14-15.

6. INTERNAL CONTROL SYSTEM:

Your Company has a proper and adequate system of internal controls, to ensure the safeguarding of assets and their usage, maintenance of proper records, adequacy and reliability of operational information. The internal control is supplemented by an extensive audit by internal and external audit teams and periodic review by the top management, Audit Committee and Board of Directors

7. HUMAN RESOURCES:

In a competitive economy, the proper utilization of human resources plays a crucial role. It begins with best practices in recruiting people and moves through learning and development, engagement, employee feedback and rewards and recognition. Towards this, your Company took various initiatives and has maintained healthy and harmonious industrial relations at all locations. The dedication and hard work of productive and dynamic goal oriented team is the key factor to the success of your Company. We believe that hiring the right personnel and proper retaining is key to this success. To keep the Company and its human resource competitive, we organized various training programs and experts were engaged to train the employees at various levels. This active process of learning has allowed employees enhance competence and motivation..

8. FUTURE PLAN:

As a long term planning strategy, company is planning to operate on a larger scale and achieve the highest portion of market demand of its products. Promoters are working very hard to lead company to new horizons and giving better results.

Registered Office: For and on behalf of the Board of Directors
Survey No-257,
Plot No. 23 To 28„N.H. 27,
Shapar-Veraval
Rajkot-Veraval, Gopal D. Khichadia
Managing Director
Date : 27.05.2016
Place : Rajkot