Arcuttipore Tea Co Ltd Management Discussions.

A Management Discussion and Analysis Report is given below:

(a) Industry Structure and Developments

The tea industry has improved supply position over demand. The margins are comparatively less remunerative on account of continued increase in labour costs and overheads and also with low sale volume with reasonable realization . The Company has achieved its full production of made tea and the same is achieved after introducing significant amount of private borrowed fund into the operating system. The company has sold very small quantity green leaf during the year . The Company has taken steps for cost control & quality control of its and also adopted strategic marketing policy to earn a better margin in future, and in the current season 2018-19, the company is contemplating its market strategy in respect of sale of its product mainly through private parties and least through auctioneers.

(b) Opportunities and Threats

Your companys tea produce is presently restricted in domestic market.

(c) Segment-wise or product-wise performance

In spite of the tea industry operating unfavourable conditions, the performance of your company has somehow been sustainable due to its full production of tea and its sale at reasonable price during the year review.

(d) Outlook

It is hoped that the tea industry would be improving, with the demand for in domestic markets besides exports picking-up in period to come. The Company has been consolidating its brand in domestic tea market.

(e) Risks and concerns

New land for cultivation available to the company, continues to be a constraint. In order to increase production of green leaf and the process of re- plantation, the Company is enduring to take necessary steps in this regards despite fund constraints. It would improve, revive and sustain its manufacturing capacities provided the company gets the cash flow improved.

(f) Internal control systems and their adequacy

The system of internal control is commensurate with the size and nature of the business of the Company. The systems are regularly reviewed to ensure its operational effectiveness.

(g) Discussion on financial performance with respect to operational performance

These have been covered in the Directors Report specifically under the section on Financial Results and operations. The Statement of Accounts show that the net worth of the company has eroded hugely due to losses in operational activities as well as increased overheads coupled with erratic climate affecting green leaf production. The Companys current season performance is moderate and the efforts are being made both at the garden and administrative office to achieve the budgeted production and moderate realization.

h) Material developments in Human Resources / Industrial Relations front, including number of people employed

The Company continues to lay emphasis on training and development of its human resources. The requirement of professionally qualified and trained personnel for the garden is regularly reviewed to obtain optimum results in all spheres of its activity.

The Company continued to maintain healthy and cordial Industrial relations at all its production facilities. It also strives to maintain the best of relations with its employees and ensure providing all mandatory facilities to them.

i) Cautionary Statement

The Management Discussion and Analysis report contain certain statements that might be considered forward looking. These statements are subject to certain risks and uncertainties. Actual results of the company may differ materially from these expressed in the statement as the factors such as Government policies, local, political and economic development, fund requirements, risk inherent to the company could influence the Companys operations.