eco friendly food processing park ltd Management discussions

INDUSTRY STRUCTURE AND DEVELOPMENT

On macroeconomic front the financial year 2014- 15 was among the most challenging years. Recognizing the importance of Agriculture Sector, the Government during the budget 2014-15 took a number of steps for sustainable development of Agriculture. These steps include enhanced institutional credit to farmers; promotion of scientific warehousing infrastructure including cold storages and cold chains in the country for increasing shelf life of agricultural produce; Improved access to irrigation through Pradhan Mantri Krishi Sichayee Yojana; provision of Price Stabilisation Fund to mitigate price volatality in agricultural produce; Mission mode scheme for Soil Health Card; Setting up of Agri-tech Infrastructure fund for making farming competitive and profitable; provide institutional finance to joint farming groups of "Bhoomi Heen Kisan" through NABARD; development of indigenous cattle breeds and promoting inland fisheries and other non-farm activities to supplement the income of farmers.

OPPORTUNITIES AND THREATS

Your Company being an agricultural Company seeks opportunities and making efforts to fully utilize it. The Immediate challenge to the Ministry of Agriculture when the new Government had taken over, was to sustain the increasing agricultural output of the country in the face of impending deficit rainfall in this year 2014-15.

• An allocation of Rs. 50 crore for development of indigenous cattle breed has been provided.

• Target for providing institutional agricultural credit to farmers during 2014-15 has been enhanced to Rs. 8 lakh crore which is expected to surpass.

• Agriculture credit at a concessional rate of 7% with an interest subvention of 3% for timely repayment will continue during 2014-15.

• An allocation of Rs. 5,000 crore for 2014-15 has been made for scientific warehousing infrastructure for increasing shelf life of agricultural produce and thereby increasing the earning capacity of farmers.

• To mitigate price volatility in the agricultural produce a sum of Rs. 500 crore has been provided for Price Stabilization Fund.

• Setting up of Agriculture Infrastructure Fund of Rs.100 crores to encourage research and development in the critical area.

It has highlighted various challenges and reforms in the agriculture sector. According to the survey, GDP declined to 15.2% during the Eleventh Plan and then further decreased to 13.9% in 2013-14. There also has been decrease in the number of cultivators from 127.3 million (Census 2001) to 118.7 million (Census 2011).

OUTLOOK

Results of FICCI’s latest Economic Outlook Survey point towards a recovery in the year 2014-15. The median GDP growth forecast is estimated at 5.5% for 2014-15, with a minimum and maximum range of 5.0% and 6.0% respectively. The industrial sector is projected to witness an uptick, with a median growth forecast of 3.3% in 2014-15. Though both agriculture and services sector growth are likely to be in line with broad expectations, pressure might arise on agriculture sector with chances of El Nino effect marring growth prospects next year.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a proper adequate internal control system to ensure that all the assets are safe guarded and protected against the loss from unauthorized used or disposition and that transactions are authorized, recorded and reported correctly. The internal control is supplemented by an extensive internal audit, periodical review by the management and documented policies, guidelines and procedures. The internal control is designed to ensure that the financial and other records are reliable for preparing financial statements and other data and for maintaining accountability of assets.

FINANCIAL AND OPERATIONAL PERFORMANCE

Share Capital

The Paid up Share Capital of the Company as on 31st March, 2015 stands at Rs. 247,650,000 divided into 2,47,65,000 equity shares of Rs. 1/- each fully paid up.

Reserves and Surplus

The Reserves and Surplus is Rs. 968.27 Lacs as on the end of the Current year.

Total Income

During the year under consideration, total income of Rs. 330.26 Lacs against Rs.292.29 Lacs in the previous year.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

There has been no material development on the Human Resources front during the year. as on 31^st March, 2015. The Company continues to lay emphasis on developing and facilitating optimum human performance. Performance management was the key word for the Company this year.

	By Order of the Board
	For Eco Friendly Food Processing Park Limited
	Sd/-
	BRIJ KISHORE SABHARWAL
Date: 18/08/2015	DIN: 01303907
Place: New Delhi	Executive Director