milk partners india ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS

(Forming part of Directors Report)

A) Financial Performance:

The Company has recorded a turnover of Rs. 3576.79 lakhs and the profit of Rs. 0.84 Lakhs in the current year against the turnover of Rs. 1232.20 lakhs and loss of Rs. 24.79 Lakhs in the previous financial year ending 31.03.2013.

B) Future Outlook:

According to India Dairy Products Market Forecast & Opportunities, 2017, the market for dairy products in India has grown rapidly over the last few decades and anticipated to be growing at a faster rate when compared to the global dairy products market. The revenues of Indias dairy products market is expected to be growing at the CAGR of around 5% during 2012-17.

The Company has been taking necessary steps to upgrade the Plant & Machinery at the Shameerpet premises in order to improve the sales. It is also contemplating to expand the business into packing and other milk related products apart from procurement and distribution of Milk at wholesale and retail.

C) Internal Control System and adequacy:

The Company has adequate internal control systems commensurate with the size and the nature of business of the Company.

The internal control system is constantly assessed and strengthened with tighter control procedures. The internal control systems ensure effectively of operations, compliance with internal policies and applicable laws and regulations, protection of resources and assets, and accurate reporting of financial transactions.

The audit committee periodically reviews the adequacy and efficacy of the said internal control systems. All the issues relating to internal control systems are resolved by the audit committee.

D) Human Resources, Industry Development relations:

The Company recognizes the importance and contribution of the employees. Human Resource is viewed to be as one of the most important factor in the growth process with a view to cross further frontiers in business performance, the Company strives to organize training modules for understanding and improving the core skills of the employees. It is the continuous effort by the Company that helps to provide the right environment in order to maximize team efforts while exploiting individual growth potential in the right manner.

The Directors record their appreciation of the support and continued contribution of all employees towards the growth of the Company

E) Cautionary Statement:

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and international markets in which the Company operates, changes in the Government regulations, tax laws and other statues and other incidental factor.