Jain Irrigation Systems Ltd Management Discussions.

Late Shri Bade Bhau, our Founder, believed that a Company is made by its people and for us, the people are not only our associates but the stakeholders, partners and farmers. If we keep everyone together and value their contribution to our Company, we are going a long way. And we have a new generation of talent that breathes and lives this legacy passed on by our Founder. Each a true owner of their work and a guardian of the DNA of the organisation. We think micro-level, even in our commitment.

In ourjourney so far, we have realised that theres no single parameter for success. We measure success through the lands we reach, the paths we break, the values we carry and the lives that we inspire. Our success story involves the success of many people together. Which is why, when we look to the future, we keep everyone in mind and create shared value.

Overall Economic Scenario

The Indian economy has advanced at the rate of 7.1% during FY 2017. However, the Agricultural Growth of the country for FY 2017 was 4.1% as compared to 1.2% of FY 2016, as a result of good monsoon. In a surprising move Government of India had announced withdrawal of high-value currency on 8 November, 2016, the full economic impact of which is yet to be thoroughly ascertained. Demonetisation has had short-term costs in the form of slow growth but holds the potential for long-term benefits. Long-term benefits include reduced corruption, greater digitalisation of the economy, increased flows of financial savings, and greater formalisation of the economy, all of which could eventually lead to higher GDP growth, better tax compliance and greater tax revenues. The Asian Development Bank (ADB) in April, 2017 said Indias economy is set to grow at 7.4% in Financial Year 2017-18 against 7.1% the Previous Year, on the back of a pick-up in consumption demand and higher public investment. IMFs projection makes India the fastest growing major economy in 2016-17, with China estimated to have grown at 6.7% during 2016. Chinas economy is expected to steadily slow down to 6.6% in 2017 and 6.2% in 2018 due to the "complex process of rebalancing" by reorienting demand from exports and investment & consumption. Further, GST implementation is also believed to be a short term disruptive force but is going to result in good growth going forward. The GST will create a common Indian market, improve tax compliance and governance, and boost investment and growth; it is also a bold new experiment in the governance of Indias cooperative federalism.

Global growth has been raised marginally to 3.5% in FY 2017 from the January 2017 estimate of 3.4% due to a "long-awaited cyclical recovery in investment, manufacturing and trade" that may take it to 3.8% by 2022, driven by an "acceleration of activity in India resulting from the implementation of important structural reforms, and a

successful rebalancing of Chinas economy to lower, but still high, trend growth rates."

The outlook said Indias economy has grown at a strong pace in recent years owing to the implementation of critical structural reforms, favourable terms of trade, and lower external vulnerabilities.

Parameter 2016-17 2015-16
GDP Growth % 7.1 7.6
CPI inflation (Average, %) 4.7 5.7
10-year G-sec (Year-end, %) 6.5 7.1
/ US$ (Year-end) 64.8 66.3
Fiscal Deficit (as a % of GDP) 3.5 3.9

1) Overview of Business

Jain Irrigation Systems Limited (JISL) is the flagship Company with operating subsidiary companies (Including fellow subsidiaries) and diverse businesses across the globe and aggregate revenues of over 69 billion. The Company is a leading agribusiness enterprise, present in the entire value chain. It is the second largest micro irrigation Company globally, and is the largest manufacturer of micro irrigation systems in India. It is also the largest manufacturer of Mango pulp, puree and concentrate in the world, and the third largest manufacturer of dehydrated onions. JISL is also Indias largest manufacturer of polyethylene pipes, leading PVC pipe manufacturer, and is also the worlds largest manufacturer of Tissue Culture banana plants in the world. The Company is additionally into hybrid & grafted plants; greenhouses, poly and shade houses, bio- fertilizers, biogas and green energy (solar), solar water heating systems, solar panels, solar water pumps and plastic sheets. Many of its plants are ISO 50000 & HACCP certified, and meet International FDA statute requirements. JISL renders consultancy for complete or partial project planning and implementation, e.g. watershed or wasteland and/or crop selection, and rotation. Over the preceding few years, the Company has concluded a few of acquisitions and merged some companies. Last year the Company separated its food business. All acquisitions and mergers have been a strategic fit, in order to strengthen the business and increase reach in every segment. The acquired companies have done well within 3 to 5 years after acquisition and are performing well in the countries where they operate.

Each of the Companys products is an outcome of an effort to conserve natures precious resources, through substitution or value addition. This is the legacy of a deliberate and conscious endeavour that stems from a deep-rooted concern for nature with a consistent focus for development and growth of agriculture, resulting in higher income for farmers.

2) Corporate Structure

A) Indian Subsidiaries

a) Jain Farm Fresh Foods Ltd., India ("JFFFL")

The Company has been incorporated in April-2015 and is owned to the extent of 88.81% by JISL India & JPFTIPL. JISL has sold "Indian Food Business" to JFFFL by way of slump sale including all assets, liabilities, employees, customers, IP, brands, etc. Effective date of slump sale was March 31st, 2016 (Close of business hours). Revenue of the Company is 8,098.08 million during the FY 2016-17 on standalone basis.

Revenues from domestic business of the Company have increased by 7.8% in fiscal year 2017 at 3,325 million from 3,084 million in fiscal year 2016. The revenues from exports have decreased by 12.8% in fiscal 2017 at 4,773 million from 5,475 million in fiscal year 2016.

Dehydrated Onions

Since the Company has separated the Food Business recently, the figures are not comparable. The business reported revenue of 2,803 million, reporting a 0.7% growth, during FY 2017.

Fruit processing

Since the Company has separated the Food Business recently, the figures are not comparable. The business reported revenue of 5,291 million, reporting a 8.2% degrowth. It has also maintained all quality certifications reguired and necessary for a food business.

b) Jain Processed Foods Trading & Investments Pvt. Ltd., India ("JPFTIPL")

It is a wholly owned subsidiary of the Company. JPFTIPL holds 74% share of Driptech India Pvt. Ltd. & 7.16% share in JFFFL. Revenue of the Company has increased by 241% from 1.03 million by trading activity during the year 2015-16 to 3.50 million in FY 2016-17.

c) Driptech India Pvt. Ltd., India

It is owned to the extent of 74% share by JPFTIPL and 1% share by the Company directly. The Company produces affordable, high-quality irrigation systems designed for small-plot farmers. The Company caters both to domestic and international markets. Revenue of the Company has increased by 33% from 44.47 million in FY 2015-16 to 59.10 million in FY 2016-17.

B) Operating Subsidiary Companies

a) Sleaford Quality Foods Ltd., UK ("SQF")

It is based in Sleaford town in Lincolnshire County in the East Midlands region of England. Primary nature of its business is blending, repacking, trading & distribution of food ingredients. The sales of the Company increased by 10% from GBP 50.09 million in FY 2015-16 to GBP 55.14 million in FY 2016-17.

b) Ex-cel Plastics Ltd., Ireland ("EPL")

The Company is wholly owned subsidiaries through Jain (Europe) Ltd., The Company is engaged in manufacturing of Plastic Sheets. The sales of the Company increased by 14% from EUR 16.43 million in FY 2015-16 to EUR 18.66 million in FY 2016-17.

c) Cascade Specialties Inc. USA ("CASCADE") (Including White Oak Frozen Foods)

It is a wholly owned subsidiary of the Company through Jain America Foods Inc., USA (Erstwhile Jain (Americas) Inc.). It is engaged in onion, garlic dehydration and frozen foods business with specialization in natural low bacteria and organic dehydrated products. The sales of the Company increased by 11% from US$ 42.70 million in FY 201516 to US$ 47.23 million in FY 2016-17.

d) Jain Irrigation Inc.,USA ("JII")

(Including Chapin Watermatics Inc., Point Source Irrigation Inc., Jain Agricultural Services.-erstwhile PureSense Environment, Inc.& JIIO-erstwhile Jain Irrigation Inc. California) and a new Company Jain Agriculture Services Australia Pty Ltd was formed in February 2017, for the purpose of purchasing the assets of Observant Pty Ltd, an Australian Company. Jain Agriculture Services Australia Pty Ltd is owned 100% by Jain Agriculture Services, LLC, USA which is owned 100% by Jain Irrigation, Inc. The Company is engaged in the business of hardware and software development for farm weather management. These are wholly owned subsidiaries of the Company through the Jain America Holdings Inc. Jain Irrigation Inc. is engaged in drip tape manufacturing and distribution business. Jain Agricultural Services sells a moisture monitoring system for agricultural use. The products include both hardware and monitoring systems on a subscription basis. The sales of the Company marginally declined by 4% from US$ 75.65 million in FY 2015-16 to US$ 72.86 million in FY 2016-17.

e) NaanDanJain Irrigation Ltd., Israel ("NDJ")

Israel is a wholly owned subsidiary of the Company through the Jain (Israel) B.V. & Jain Overseas B.V.It is engaged in the manufacturing of drip / sprinkler irrigation. NaanDanJain has manufacturing facilities in Israel, Chile, Brazil, Turkey and Spain. During the year Company has acquired Jain Sulama, Turkey from Jain Overseas B.V. The sales of the Company increased by 5% from ILS 518.73 million in FY 201516 to ILS 545.28 million in FY 2016-17.

f) Gavish Systems Ltd., Israel ("GAVISH")

It is owned to the extent of 51% through the Jain (Israel) B.V. It is engaged in the manufacturing of software and computer equipment for agriculture applications. The sales of the Company increased by 46% from ILS 4.24 million in FY 2015-16 to ILS 6.20 million in FY 2016-17.

g) THE Machines Yvonand SA, Switzerland ("THE")

It is a wholly owned subsidiary of the Company through the JISL Systems SA. It is a Switzerland based manufacturing of conceives, builds and develops lines and Precision machines and complete production line for drip irrigation and precision and welding lines for global customer base. The sales of the Company increased by 23% from CHF 11.90 million in FY 2015- 16 to CHF 14.64 million in FY 2016-17.

h) Pro Tool AG, Switzerland ("PRO TOOL")

It is a Switzerland based manufacturing and developing mods for plastic moding, engineering and tooling. The Company is owned to the extent of 75% through the THE Machine SA.The sales of the Company increased from CHF 2.18 million in FY2015- 16 to CHF 2.71 million in FY 2016-17.

i) Excel Plastic Piping Systems SAS, France ("EPPL")

It was formed in March 2017, for the purpose of purchasing the assets of Unistar Europe, France. Excel Plastic Piping Systems SAS is owned 100% by Jain (Europe) Ltd., UK. The Company is engaged in the distribution of plastic fittings and pipes in various countries worldwide.

C) Overseas Marketing Companies

a) Jain (Europe) Ltd., UK ("JEL")

It is a wholly owned subsidiary of the Company and was incorporated in 1996, under English laws. Jain (Europe) Ltd. is our key marketing and distribution arm in the UK and other European countries. The sales of the Company declined by 64% from GBP 21.79 million in FY 2015-16 to GBP 7.86 million in FY 2016- 17 primarily due to shifting of Food business to Jain International Foods Ltd., UK.

b) Jain International Foods Ltd., UK ("JIFL") [Erstwhile SQF 2009 Ltd.]

It is a wholly owned subsidiary of the Jain Farm Fresh Foods Ltd., India and incorporated under English laws. As a part of Food business restructuring Jain Farm Fresh Foods Ltd., India ("JFFFL") has acquired JIFL from Jain (Europe) Ltd., UK. and further Food marketing business of JEL has been transferred to JIFL. Its Sales for the year 2016-17 is GBP 24.89 million.

c) Jain America Foods Inc., USA ("JAF") [Erstwhile Jain (Americas) Inc.]

It is a wholly owned subsidiary of the JIFL and was incorporated in 1994, under the laws of Ohio, USA. It is our key marketing, distribution and investment arm in the United States for Food business. The sales of the Company increased many fold from US$ 4.07 million in FY 2015-16 to US$ 16.92 million in FY 2016-17.

d) Jain America Holdings Inc., USA ("JAH")

It is a wholly owned subsidiary of the Company and was incorporated in February 2016, under the laws of Delaware, USA. It is now our key marketing, distribution and investment arm in the United States for Plastic sheet business. The sales of the Company increased from US$ 1.73 million in FY 2015-16 (one month) to US$ 14.89 million (12 months) in FY 2016-17.

D) Overseas Holding Companies

a) JISL Overseas Ltd., Mauritius ("JISO")

It is a wholly owned subsidiary of JISL India and was incorporated in 1994 under the laws of Mauritius. JISO acts as a Holding Company for the UK and USA based overseas subsidiaries. It holds 54.53 % in Jain (Europe) Ltd., and 69.45% in Jain America Holdings Inc., USA. Its total income includes interest income from its fellow-subsidiaries. It has made a net profit of US$ 154,128 in FY 2016-17 against net profit of US$ 5,187 in FY 2015-16.

b) Jain International Trading B.V., Netherland ("JITBV")

It is a wholly owned subsidiary of JISL India and was incorporated in March 2010 under the laws of Netherland. It holds 45.47 % in Jain (Europe) Ltd., and 30.55% in Jain America Holdings Inc., USA. JITBV had a net loss of US$ 1,277,896 in FY 2016-17 against net loss of US$ 464,255 in FY 2015-16 mainly on account of interest payable on Bond funds. It recently made a US$ Bond Issue of $ 200 million.

c) Jain Overseas B.V., Netherland ("JOBV")

It is a wholly owned subsidiary of the Jain International Trading BV, Netherlands and was incorporated under the laws of Netherland. It is in Business since 2007. JOBV has a net loss of US$ 327,652 in FY 2016-17 against net Profit of US$ 2,880,517 in FY 2015-16 primarily on account of higher interest payable during the year to Parent Company / related parties on funds borrowed. Also earlier there was a dividend income from JISL Global SA in FY 2015-16.

d) Jain (Israel) B.V. Netherland ("JIBV")

It is a wholly owned subsidiary of the Jain Overseas B.V., Netherlands and was incorporated under the laws of Netherland. It is in Business since 2007. JIBV had a net loss of US$ 2,496,552 in FY 2016-17 against net loss of US$ 1,797,939 in FY 2015-16 primarily on account of higher interest payable during the year to Parent Company / related parties on funds borrowed.

e) JISL Global SA, Switzerland ("JGSA")

It is a wholly owned subsidiary of the Jain Overseas B.V., Netherlands and was incorporated under the laws of Switzerland. It is a Holding Company since 2007. JGSA had a net profit of CHF 10,568 in FY 201617 against net profit of CHF 680,031 in FY 2015-16.

f) JISL Systems SA, Switzerland ("JSSA")

It is a wholly owned subsidiary of the JISL Global SA., Switzerland and was incorporated under the laws of Switzerland. It is in Business since 2007. JSSA had a net loss of CHF 6,070 in FY 2016-17 against net profit of CHF 730,348 in FY 2015-16.

3) The Strategy

A new business model had been launched in 2011-12 for the Companys primary business of micro irrigation systems (MIS). The Companys objective is to leverage its strengths to continue to expand its business in long term as well as in the short to medium term. The Company intends to be the best water, food & natural resource management Company while creating value in the entire agriculture chain.

The principal elements of our current strategy are:

a) Expand the geographic markets and product offering

The Company plans to continue to expand the geographic reach of its operations in India and overseas. While sales of the MIS products and piping systems in India have historically been focused primarily in the Western and Southern parts of the country, the Company intends to increase its sales in other regions through expanding the reach of its distribution network and leveraging the existing marketing capabilities. In addition, the Company intends to continue expanding its capabilities to provide integrated irrigation solutions and turnkey services and capture the significant opportunities for growth provided by anticipated increases in infrastructure spending by governments in India and abroad. The Company also intends to continue to expand its sales of MIS products and expand the sales of solar pumping systems into Africa geographies which the Company believes provide attractive opportunities for growth. By further diversifying the revenue stream geographically, the Company believes that they will reduce concentration risks, such as foreign exchange related risks, weather and crop-related risks and economic risks.

The Company also intends to capitalize on growth opportunities and further strengthen its market position through the expansion of its product offering. It intends to leverage its R&D capabilities to diversify the application of the MIS products in India, with staple crops even though currently primarily concentrated in sugar cane, cotton, vegetables and fruits, to applications for wheat and rice. The Company believes this constitutes a significant opportunity for horizontal expansion to increase the sales of its MIS products. Its subsidiary Jain Farm Fresh Foods Ltd. also intends to expand its processed fruit products offering by commencing the manufacture of processed citrus pulps and concentrates. In addition, Jain Farm Fresh Foods Ltd. also plans to commence the manufacture of processed spices made from turmeric, chili, pepper and ginger for both the wholesale and retail markets, in export markets to start with but later in India also.

In order to bolster the manufacturing capabilities in India, JISL intends to develop an integrated agriculture and horticulture park in Andhra Pradesh, which is expected to comprise manufacturing and R&D facilities for MIS products, cultivated tissue culture plants and Jain Farm Fresh Foods Ltds agro-processed products. In addition, Jain Farm Fresh Foods Ltd. has entered into a memorandum of understanding with Hindustan Coca-Cola and the state government of Maharashtra for the development of a manufacturing facility to produce orange juice and orange juice concentrates and a nursery to cultivate orange plants. The Company plans to commence development of these projects in 2017-18. In addition, it intends to maintain its position as a leading agricultural technology player. The Company intends to develop its current portfolio of high technology irrigation monitoring devices and software products to add features which enable data collection, processing and analysis which the Company intends to sell as a service to its customers. It believes these services would provide significant analytical tools for farmers to optimize planting strategies to improve production, cut operational costs and minimize environmental impact.

b) Expand the retail product portfolio

The Companys subsidiary Jain Farm Fresh Foods Ltd. intends to expand the retail product portfolio of agro-processed products in order to capture opportunities to produce value added products. It intends to commence the production of processed fruit snacks in India under an in-house brand. The Company intends to use the processed fruit pulps that it produces as raw materials for the manufacturing of such value added processed fruit snacks. In addition, Jain Farm Fresh Foods Ltd. is currently conducting trials for the introduction of retail fruit juice vending machines with a leading fast-moving consumer goods Jain Farm Fresh Foods Ltd. Again Jain Farm Fresh Foods Ltd. intends to use the processed fruit pulps that it produces as raw material for the manufacturing of such fruitjuice. Jain Farm Fresh Foods Ltd. also intends to introduce additional retail processed fruit products, such as frozen fruit puree made from jamun, strawberry and guava as well as ready-blend spices.

c) Implement prudent financial strategy

The Company seeks to optimize its capital structure by assessing the benefits and suitability of utilizing different funding sources. In addition, it intends to reduce the working capital requirements by continuing to implement the cash and carry policy for the sales of MIS products to dealers in India, which it is expected will reduce the gross credit days for the sales of MIS products. The Company also intends to leverage its relationship with SAFL, an associate Company, to bolster the liquidity position, as SAFL expands its operations in the extension of credit to the Companys customers, providing upfront cash for the purchases of its products. The Company expects these measures to increase its free cash flow, enabling it to better pursue the development of the business.

d) Pursue merger and acquisition opportunities that are in line with our vision and strategic objectives

An experienced management team of the Company monitors markets and taps their broad business networks for potential merger and acquisition M&A opportunities that fit the vision, mission and strategic objectives. The Company plans to prudently and selectively pursue strategic M&A opportunities that will allow it to expand and/or complement its current portfolio of products, marketing capabilities and geographical footprint. In evaluating potential M&A opportunities, It will consider the following selection criteria: the strategic fit and attractiveness of the M&A opportunity, the value to be created by such M&A opportunity, the capabilities of the targets management team, the scope of organic growth that it can achieve through such M&A, and its targeted internal rate of returns that it aims to realize in making such investments.

4) Competitive Strengths

The Company believes that the following are their principal competitive strengths;

a) Integrated products and solutions across an extended value chain

The Company provides total solutions to farmers to enhance their productivity and yield by leveraging its expertise in agriculture and relationships with the various stakeholders. In addition, the breadth of its product offerings enables it to provide integrated solutions which are customized to the needs of its customers. Its MIS products, solar pumping systems and piping systems provide integrated irrigation solutions which are essential to the efficient operations of farmers. The Company also provides cultivated tissue culture plants which aid the cultivation of crops by farmers by reducing growing time and creating higher crop yields. The Company undertakes integrated irrigation projects to large farming communities and provide turnkey services for the construction of piping systems which utilize its MIS and piping systems products. Furthermore, the Company also manufactures capital machinery and equipment for the production of irrigation and other products. In addition, the Company bolsters the marketing of its hi tech agri input products by offering fee-based advisory services such as agricultural consultancy, training, agronomy services, surveys and analysis of water and soil samples. Through its strategic relationship with SAFL, the Company is able to arrange financing for the sales of its MIS products to end customers. Furthermore, the Company is committed to provide end- to-end total solutions for farmers in India to enhance their management of irrigation, soil and crops and farming cultivation and operations. The Companys "Jain Self Sustaining Agricultural Development Cycle" business model, which has evolved over a period of 50 years, is a farmer-centric business model encompassing the manufacturing and marketing of high technology agricultural products and related services. This business model aims to improve productivity, save input costs and optimize resources for farmers through the provision of agronomic support, knowledge and the creation of value through the processing, marketing and distribution of agricultural produce. For instance, JISL and Hindustan Coca-Cola have undertaken Project Unnati under which

they are jointly promoting the application of ultra-high density plantation (UHDP) techniques amongst mango farmers in India in order to increase the utilization of available farmland and thereby improve yield. The Company also develops varieties of high yielding and hybrid onion seeds which it sells to farmers with whom it has purchase arrangements. In addition, its business positions it as an end customer to certain farmers. For example, it purchases onions, tomatoes and other vegetables for the manufacturing of its dehydrated onion and vegetable products, and mangoes and other fruits for its manufacturing of processed fruit products.

b) Leadership in each of the markets in which it operates

The Company is among the market leaders in each of the markets in which it operates. In addition, as one of Indias leading high technology agricultural solution provider, the Company believes it has established a first- mover advantage in the markets in which it operates. The Company has won the APEDA Golden Trophy for the last five consecutive years which recognized its position as the largest exporter of processed fruits and vegetables in India. In addition, it is one of the major players in the MIS and agriculture PVC pipes and the HDPE pipes segments. The Company believes its leadership position provides it with leverage with its customers, dealers, suppliers and other stakeholders, thereby helping them strengthen the recognition and appeal of its products, brands and preserve the margins. In addition, the Company believes its leadership position provides it with significant credibility with respect to creditors and investors, which allows them to access financing and capital on favourable terms.

c) Diversified revenue base

The Companys extensive range of product portfolio and global geographical presence provides it with a diversified revenue base. The Company operates four business segments which offer an extensive product portfolio. The Companys hi-tech agri input products segment comprises of MIS products, solar pumping systems, integrated irrigation projects, cultivated tissue culture plants, precision farming products and advisory services. Its Plastic Products segment comprises of Piping systems, PVC sheets and Turnkey services The Companys Agro-Processed products segment comprises of Dehydrated Onion and Vegetable products, Processed Fruit products and Biogas Power generation The Companys Solar segment provides solar pumps, solar PV module, solar power, solar thermal systems and solar appliances. The Company believes its extensive product portfolio has allowed it to maintain a well balanced operating revenue stream without excessive reliance on a single product.

In addition, the Company believes its diversified product portfolio provides a robust platform of products and services that seek to address pertinent global issues

such as food and water security and the effects of climate change. With a sales presence in approximately 120 countries, including its warehouses and sales offices in 19 countries, the Company believes it is well positioned to increase the market share of its products. The Company has a diversified global geographical footprint, with India, Europe, the United States and the rest of the world. The Company believes its geographic diversification mitigates the exposure to adverse weather or other conditions in any single region. The diversity of its business across geographies also provides a range of expansion opportunities across major agro-climatic regions around the world.

d) Extensive manufacturing, marketing, sales and distribution platform

The Company believes its large capacity manufacturing facilities provide it with economies of scale. The Company believes it is able to realize such economies through its ability to spread fixed operating expenses over a large amount of products which reduces its per unit cost of production. In addition, the Company believes the scope of its manufacturing capacity allows it to meet the demand for most of its products without the need of making substantial capital expenditures. The Company currently has the capacity to produce 233,030 tons of MIS products, 392,660 tons of Plastics products, and 90 million cultivated tissue culture plants per year. The Company believes it has demonstrated a strong track record of operating large-scale manufacturing capacities efficiently across various product lines and geographies. In addition, the Company believes that the manufacturing facilities that it operates across the globe provide a strong platform for further expansion of its distribution network.

The Companys extensive network of dealers in India provides a significant competitive advantage which it believes its competitors cannot easily replicate. The Company has more than 7,000 dealers in India who market its hi-tech agri input products and plastic products to end customers, approximately two-thirds of which market such products on an exclusive basis. Most of these dealers come from farming backgrounds and have deep relationships in the farming communities in which they operate. In addition, such dealers are primarily located in rural areas placing them in close proximity to the farmers which constitute a significant portion ofthe Companys end customers of hi-tech agri input products and plastic products. The Company believes its strong local sales force gives it a deep understanding of the needs of its end customers in India and assists them in providing strong after-sales support and sharing its knowledge with its end customers. The Company also has a pool of approximately 1,364 agricultural scientists, technicians and engineers in India, they provide agricultural and infrastructure solutions to its customers which allows them to customize the application of its products in accordance with its customers needs.

The Companys international marketing, sales and distribution platform is comprised of approximately 4,028 distributors and customers, 130 sales managers and 66 agents located in North America, Europe, South America, Asia, Australia and other locations. In addition, it operates 18 manufacturing facilities outside of India located in four continents, namely Europe, North America, South America and other parts of Asia. The Companys international footprint includes sales operations in the United States and South America which it believes are attractive growth markets for the sales of its products. In addition, the Company believes its international marketing, sales and distribution platform allows for a global recognition of its brands and products.

e) Strong R&D capabilities and intellectual property

The Company has strong competence in R&D in each of its business segments. The Company focuses its R&D operations in the development of new products and improvement of existing products. The Companys R&D team is also responsible for developing new and more efficient production processes and the enhancement of existing production processes. The Company believes that providing timely and cost-effective improvements in product quality is a key factor in ensuring customer satisfaction and retention. The Company has gained significant product development expertise, which has enabled it to create a portfolio of innovative products. For instance, the Companys subsidiary JFFFL has the R&D capabilities to develop agro-processed products for the retail markets. In addition, it began the production of irrigation monitoring devices and software, which monitor and analyze soil moisture, nitrogen, nutrient and weather conditions, under the Puresense brand in the United States, positioning it as a leading agricultural technology player in the United States. The Companys "Puresense" products provide technology and software for farmers to monitor irrigation requirements at crops root levels on a real time basis. In addition, the Company has developed a wireless sprinkler with modifiable water flow and pattern under the "Genesys" brand. In 2016, the Company introduced other product innovations such as a self-cleaning automatic filter, sand separators, fertilizer injection machines and water jets. The Companys dedication to technological leadership has enabled it to maintain a long track record of introducing innovative products.

Company has a portfolio of approximately 610 trademarks in India, out of which 419 trademarks are registered for its various products and service lines, including MIS products and services, piping systems, agro-processed products, PVC sheets, renewable/green energy systems, Tissue Culture and other products. Company has registered 34 trademarks in the United States, and two in each of Canada and Mexico. Company has also applied for 105 trademarks for its MIS products, piping systems, agro-processed products, PVC sheets, renewable/greenenergy systems, Tissue Culture and other products in Turkey, out of which Company has received registration for 101 trademarks. The Company has applied for 64 trademarks for its agro processed products in Middle East Countries, out of which registration certificate for 41 trademarks received. The Company has 6 registered trademarks in UK. The Company has applied for 27 Copyrights out of which Company has received registration for 15 Copyrights. The Company has The Company has applied for 63 designs of products out of which Company has received registration for 49 designs. Company also owns several patents worldwide including in the United States, Europe, Israel and India, and have applied for one in Australia. Company has built its patent portfolio by placing a continuous focus on R&D and by acquiring R&D-driven companies outside of India to expand its intellectual asset base.f) Strong product quality and internal quality controls The Company has implemented a comprehensive quality management program and adheres to a strict quality control system over its entire operations. The Company believes its strong product quality and internal quality controls allow it to operate its manufacturing facilities efficiently by reducing defects and waste and have fostered the trust of its customers in the products that it manufactures. For instance, the Companys operations in India possess the certifications which allow its product to access export markets. With respect to its agro-processed products, the Company also implements "Jain Good Agricultural Practices and Sustainable Agricultural Codes" to promote traceability, food safety, worker welfare, hygiene, sanitation as well as environmental and biodiversity protection, conservation and enhancement. In addition, the Companys manufacturing facilities of MIS products utilises equipment which automatically rejects defective products.

g) Experienced board and management team

The Company has a highly experienced management team with extensive experience and domain knowledge in each of the segments in which it operates. The Companys management team has a demonstrated track record of achieving improved financial results and has solidified its customer relationships as well as enhanced its respective local management teams. Each of the senior management has significant experience in the Company due to his or her extensive periods of service. In addition, the Company benefits from the support of its senior management and principal shareholders whom it believes is committed to the long-term growth and prospects of the Company. Furthermore, the Company has experienced senior managers at the regional levels with significant experience and understanding of their respective markets and regions. The Companys local management has ownership of day-to-day operational decisions while being guided by central principles aligned to its vision and strategy. The Company believes that the strength of its management team combined with its local management enables it to take advantage of strategic market opportunities, to make decisions at the local level quickly and to better serve its customers. The Company believes that its management team has been instrumental to its achievement of increase in operating margins and allowed them to be able to leverage its long-standing relationships with customers and distributors to drive revenue growth and win new and repeat business.

5) Overview of Segments

[A] High-Tech Agri Input Products

This segment comprises of Micro and Sprinkler irrigation systems and Tissue Culture. Revenues from domestic sales of our Hi-Tech Agri Input Products increased by 5.9% in FY 2017 to 18,084 million from 17,064 million in FY 2016, primarily due to increased sales in retail business. Exports of Hi-Tech Agri Input Products have increased by 34.1% at 2,130 million from 1,588 million as compared to the FY 2016.

a) Micro and sprinkler irrigation

i) Industry MIS

India has a total geographical area of 328.7 million hectares. The net area under agriculture is 142.0 million hectares and the gross area under agriculture is 198.0 million hectares. In comparison, the net area under irrigation is 65.3 million hectares. As against this only 8 million hectares is under micro irrigation. The global micro irrigation system market is one of the fastest growing segments of the global agricultural industry. This growth is fuelled by the Government encouragement for adoption of micro irrigation system as a regular practice for future safety due to water scarcity, in order to conserve natural water resources. The Company is one of the biggest market players in MIS and enjoys a dominating position in the present scenario. In India though fragmented, the industry is in a position to aid Government programmes like Prime Ministers Krishi Sinchai Yojana (PMKSY). The Pradhan Mantri Krishi Sinchayee Yojana ("PMKSY") was launched in July 2015 for a five year period, with an outlay of 50,000 crore. The major objective of the PMKSY is to achieve convergence of investments in irrigation at the field level, expand cultivable area under assured irrigation (Har Khet Ko Pani), improve on-farm water use efficiency to reduce wastage of water, enhance the adoption of precision-irrigation and other water saving technologies (more crop per drop), enhance recharge of aquifers and introduce sustainable water conservation practices by exploring the feasibility of reusing treated municipal water for semi-urban agriculture and attract greater private investment in

precision irrigation system. The scheme also aims at bringing together concerned ministries, departments, agencies, research and financial institutions engaged in the creation, use, recycling and potential recycling of water under a common platform, so that a comprehensive and holistic view of the entire "water cycle" is taken into account and proper water budgeting is done for the household, agricultural and industrial sectors.

ii) Performance MIS

MIS revenues have increased by 7% as compared to last years level. The monsoon was favourable this year and it will speed up the business further. The domestic revenues showed a growth of 5% YoY while exports increased by 34%. The business contributed over 48.9% the Companys total turnover. The division is in a phase of cautious growth, by change of business model in the last 3-4 years. The states of Maharashtra, Andhra Pradesh, and Gujarat continue to dominate sales of this division. The business incurred 281 million capex during FY 2017.

iii) Opportunity & Outlook MIS

Micro irrigation has grown steadily over the years Since 2005, area under MIS has grown at a CAGR of 9.6%. Geographically, states with the largest area under MIS include: Rajasthan (1.68 million hectares), Maharashtra (1.27 million hectares), Andhra Pradesh (1.16 million hectares), Karnataka (0.85 million hectares), Gujarat (0.83 million hectares) and Haryana (0.57 million hectares). Majority of the area covered under MIS comes under sprinkler irrigation accounting for 56.4%, and 43.6% under drip irrigation Area under drip irrigation has shown stronger growth in recent years, growing at a CAGR of 9.9% from 2012 to 2017 while sprinkler irrigation has grown at a pace of 6.6% in the same period. Overall, the area under MIS has grown at a CAGR of 8.0% in this time frame. Penetration of micro irrigation in states of India varies. The average penetration at the national level is 5.5% which is lower than countries like Israel (90%), the US (55%) and even China (10%). India now has close to 8 million hectares under micro irrigation. This is attributed to the large cultivable area and area under irrigation. The general penetration of micro irrigation is still very low in India. With half the cultivable land in the country still being rain-fed, there is significant potential for promoting micro irrigation on Indias 142 million hectares of arable land.

iv) Risks & Challenges MIS

The scarcity of a large pool of trained and skilled people on a continuous basis has been a hindrance for the industry, we have been working hard on building up a strong dealer network to cater to this situation and it seems those efforts are paying off now.

b) Biotech Tissue Culture

i) Industry

At present, there are around 200 commercial tissue culture companies in India with gross installed production capacity of about 500 million plantlets per annum out of which the Company is a leading one. Banana, Potato, Sugarcane, Apple, Pineapple, Strawberry, Gerbera, Orchids, Bamboo, Date Palm, Teak and Pomegranate are some of the major plants tissue cultured in India. The industry witnesses a gross installed production capacity of about 500 million plantlets per annum and an actual production of approximately 350 million plants.

With increasing demand for agricultural, forestry, plantation and horticulture crops, the demand for high-quality, high-yielding, disease-free planting stock has increased significantly over the last two decades. Plant tissue culture has emerged as an important biotechnology and commercially viable tool to multiply elite varieties of high quality, disease free and high yielding plants rapidly in the laboratory irrespective of the season of the year.

ii) Performance

This business contributed about 3.4% to the Companys corporate turnover. The revenues crossed 1,310 million a growth of 28.7% YoY. The Company spent 104 million on Capex during the year under review.

iii) Opportunity & Outlook

Many State Governments are evincing keen on promoting tissue culture. The Company is planning to focus on untapped segment of the markets which contains big scope for the Company to grow further. The monsoon was very good this year and this has helped to boost the demand for the plantlets.

iv) Risks & Challenges

Some of the challenges faced by the industry are short shelf life and stringent quality requirements. However, there is need for proper management of operations by selected alternatives for costly inputs and thrust on developing indigenous varieties with enhanced traits, resulting in improvement of sustainability.

[B] Plastic Products

The segment business includes the varied business lines like PVC Pipe, PE pipes and PVC Sheets for industrial applications. Revenue from domestic business of our Plastic division has increased by 10% in FY 2017 to 15,110 million from 13,731 million in FY 2016. The revenue from export of Plastic products has decreased by 34.4% in FY 2017 to 1,285 million from 1,960 million in FY 2016. The capacity addition during FY 2017 was 13,280 MTpa at a cost of 307 million.

a) PVC Piping

i) Indian Industry Scenario

According to experts, the Indian plastic pipes industry has crossed the worth of 220 billion and has been growing in the range of 10-12% CAGR over the last five

years. The growth has been led by increasing usage of PVC/CPVC pipes in construction activities, a shift from the conventional galvanized iron pipes to plastic pipes, replacement demand, irrigation, and real estate growth in Tier 2 and 3 cities. It is expected that growth will accelerate to 12-15% CAGR over the next five years given the Government of Indias emphasis on housing, sanitation, and irrigation. 70% of the demand arises from residential use of plastic pipes, and 30% of the plastic pipe demand comes from commercial use. Notable trends include new products such as low noise pipes, septic tanks and column pipes.

ii) Performance

During FY 2017, this business contributed about 21.4% to the Companys turnover. The revenues remained marginally low at 8,267 million as compared to the last years level of 8,402 million.

iii) Opportunity & Outlook

The general demand drivers for polymer in India arise from economic growth, where there is a rising middle class with higher disposable income, increased urbanization and brand conscious customers. This would raise the need for infrastructure, housing, automobiles and fast-moving consumer goods, which in turn would require more polymer, a fundamental material, to be produced in order to meet these demands. With an increase in infrastructure development, consumption of PVC in the past 20 years has increased from under 500 kilo tonnes per annum to over 2,500 kilo tonnes per annum. Additionally, the need for plastic pipes arises from a natural base demand, accounting for approximately 65%, and a replacement demand, accounting for approximately 35%. A strong replacement demand has been seen in the PVC plumbing segment in the last 10 years. Plastic pipes are fast replacing conventionally used galvanized iron pipes, as they are approximately 25% to 30% cheaper, and are durable with an average life span of 20 to 25 years, whereas conventional systems tend to corrode over time. West and South India have large replacement demand, and there is still strong replacement potential in North and East India, which could result in strong growth opportunities for the PVC plumbing pipe players going forward. In addition, there is strong growth in the demand for plastic plumbing pipes in residential areas, commercial zones, for hospitals and for hotels, partly attributable to construction activities in metro and Tier 2 cities in the last 10 years. Efforts from processors to introduce products requiring PVC pipes, and stringent specifications to ensure quality products also promote the use of PVC pipes. Government of India has announced Smart City Project to develop 100 cities all over the country making them citizen friendly and sustainable. Financial aid shall be given to the select cities to upgrade the standard of living. Construction work being undertaken at high level, which will create massive demand for plumbing systems. Jains PVC

UDS piping system is the ideal piping solution for all Underground Drainage and Sewerage requirement in residential and commercial colonies, townships, urban and rural sewerage transmission. Jains PVC UDS Piping systems are manufactured as per major national & international standards and parameters. UDS pipes are light in weight, strong, and has excellent load bearing strength. Pipes are available in solvent weld and EPDM ring ft joints.

The Atal Mission for Rejuvenation and Urban Transformation scheme ("AMRUTj, aims to provide basic services, such as water supply, sewerage and urban transport, to households and to build amenities in cities to improve the quality of life. Pursuant to a Financial Year 2009-10 estimate, 39.2 trillion is required for the creation of urban infrastructure, including 17.3 trillion for urban roads and 8 trillion for services, such as water supply, sewerage, solid waste management and storm water drains. Under AMRUT, about 500 cities each with populations of over 0.1 million are identified for budget allocation. A strong demand for soil, waste and rain pipes and drainage pipes is expected in the coming years.

iv) Risks & Challenges

There is a need to keep vigil on the quality of products being offered in market place since there is cut-throat competition. A constant fluctuation in prices of Raw Material is critical and it has a direct effect over the prices offinished goods.

b) PE Piping

i) Industry

The Indian PE pipe market is forecast to grow at a CAGR of 10.4% from 2017 to 2021. The major growth drivers for this market are the growth of government infrastructural spending, increasing residential and commercial construction, industrial production, irrigation sector, and replacement of aging conventional metal pipelines.

ii) Performance

At 7,128 million, the business grew by 19.4%; and was the best performing across the organization in FY 2017. This business contributed about 18.4% to the Companys corporate turnover. The business in domestic area is primarily catering to infrastructure sector segments like telecom, gas and pipelines of water. These segments showed a significant growth.

iii) Opportunity & Outlook

PE pipe market is expanding owing to increasing water development infrastructure, increasing awareness on water conservation and aim to become 100% open defecation free nation. The major aim of the government project(s) is to make sure that every citizen of India has optimum access to safe and hygienic drinking water. The government of India has been focusing on providing housing to each and every citizen of India by 2022. Rise in number of houses in the country will increase the need for constructing pipe infrastructure to transport water. Central Government introduced Make in India initiative on 25th September 2014, the primary goal of this initiative is to make India a global manufacturing hub, by encouraging both multinational as well as domestic companies to manufacture their products within the country. Make in India has introduced multiple new initiatives, promoting foreign direct investment, implementing intellectual property rights and developing the manufacturing sector. This initiative has aided the domestic as well as foreign pipe manufacturing companies through its easy reforms and regulations to setup businesses in India. Many irrigation projects and dams are underconstruction to aid the pipe market in India. Increasing population rate, rising FDI in construction and development, high investment in improving gas distribution network and increasing number of housing units are some other key factors that may have positive impact on the market creating additional and replacement demand in the future.

iv) Risks & Challenges

Delay in implementation of projects remains the major risk faced by the business. Lack of awareness about quality needs at the customers end provide significant challenge. Also conversion of HDPE from steel or concrete still sometimes becomes difficult due to unwillingness to change old specification at engineering levels, though we are experiencing the shift of mind-set on large scale now and which is a positive sign.

c) PVC Sheets

i) Industry

The Companys determined efforts to establish the concept of "Life Cycle Cost" among the users of PVC doors and windows is conserving energy, reducing replacement cost and helping in faster installation. Governmental guidelines/codes such as "Eco Homes", GRIHA code for new buildings, promoting the "Green Building Concept" and PVC products like PVC doors can help earn star ratings for the buildings.

ii) Performance

The business contributed about 2.6% to the Companys corporate turnover. This business has de- grown by 24.2% to 1,000 million in FY 2017 as major production lines have shifted to Europe to remain competitive.

iii) Opportunity & Outlook

This segment has been commercialized and used in consumer products, industrial products, agricultural products and construction. The global plastic films and sheets market is fragmented and markets such as North America and Europe are mature. However, the Asia-Pacific market shows huge potential to grow. The rising disposable income of middle class in India and China is expected to drive the plastic films and sheets market in the coming decade. The increasing demand for PVC sheets in growing economies such as China, India, Turkey etc. is driving the global market for PVC sheets.

iv) Risks & Challenges

The threat of substitute products is high in the market. This is primarily due to the availability of a large number of substitute products such as glass and metal.

[C] Others

The Other Division includes Solar Thermal, Solar and Biogas Power, Solar Water Heating Systems and Other Agricultural Products. The revenue for the segment for FY 2017 was recorded at 2,031 million as compared to 1,480 million of FY 2016. It contributed 5.3% to the Corporate Revenue of the Company.

6) Risks and concerns at corporate level

The Company has significant experience in managing risks related to farming, weather, seasonality, global markets, currency fluctuation and impact of government policy. During last few very volatile years, this experience and expertise has helped the Company to navigate turbulent times in a smooth manner resulting in sustained growth, improved margins and increasing market share, despite historical financial meltdown and violent disruption of all types of global markets.

The risk management, interalia, provides for periodical review of the procedures to ensure that executive management controls the risks through a properly defined framework. The Company has identified the risks and their owners within the organization and the following risks have emerged as the top 5 risks: Commodity Price Risk Seasonality in agriculture and monsoon Foreign Currency Exchange Rate Risk Aggressive strategies of competition

• Integration and profitability of acguisitions

Commodity Price Risk

The Company is exposed to fluctuations in prices of polymers and resins and agricultural products which are used by the Company as raw materials. These products are commodities whose prices are determined by the supply and demand in the Indian and international markets for those products and by the price of petroleum. The prices for these commodities are volatile and this volatility has an effect on the Companys income and net profit. They depend on certain key raw materials including raw materials derived from petroleum. Conseguently, the Companys business, financial condition and results of operations may be materially and adversely affected by increases in the prices of these raw materials. The Company currently does not hedge against market risk resulting from fluctuation in prices of these commodities mainly due to the lack of traded futures and other hedging instruments for our plastic resin and fruit and vegetable raw materials.

Seasonality in agriculture:

The Companys performance is also dependent on the seasonality in agriculture sector. The manufacturing of agro-processed products varies over the course of each year, reflecting seasonal changes in the availability of raw materials. The effects of the monsoon and weather in India, including flooding, droughts and subsequent damage to crops, significantly affect the success of crop harvesting and can be more severe in India than in other countries.

Foreign Currency Exchange Rate Risk:

The Company uses forward contracts and swap contracts primarily to partially hedge our foreign currency borrowings and export receivables. Nevertheless, it does not hedge against all of its foreign exchange risks and so a weakening of the Indian Rupee against the U.S. dollar and other major foreign currencies may have an adverse effect on its cost of borrowing and consequently may increase the cost of financing its capital expenditures. Changes in exchange rates can influence the value of our foreign currency borrowings in our Balance Sheet. For its foreign currency borrowings, it applies AS 11 and applicable Ind AS provisions and mark them to market, resulting in a gain or loss depending or the appreciation or depreciation of the Indian rupee relative to the U.S. dollar, which is the primary currency of its foreign currency borrowings and the other currencies under which it has foreign currency borrowings. During fiscal year 2016-17, the Company exercised an option given in AS 11 whereby exchange differences arising on long-term foreign currency monetary items relating to depreciable assets are capitalized under fixed assets and depreciated over the remaining life of such assets. Accordingly, some amounts which previously would have been recognized as foreign currency gains or losses in the profit and loss account for the current year will be capitalized going forward and depreciated over the estimated remaining useful life of the relevant asset to which such losses pertain.

Aggressive Strategies of Competition:

The competition adopts aggressive strategies (large sales force, credits, products offered at multiple price points etc.) and competition from unorganized sector (aggressive pricing) results in pressure on sales/ margins.

Integration of acquisitions:

Inability to capitalize on the opportunities arising from the acquisitions due to sub optimal integration of the people, process and technology from the acquired entities is one of the risks associated with the recently completed acquisitions.

As mandated the Company has a Risk Management Committee in place. The Risk Management Committee met during the year under review to dwell upon the potential risks associated with the business as well as to decide the action plan(s) in order to mitigate the present/future risks.

7) Analysis of the Standalone Financial Performance

a) Net sales ( in Million)

Business 2016-17 2015-16 Change absolute Change %
Hi Tech Agri Input Products Division 20,214 18,652 1,562 8.4%
Plastic Division 16,395 15,691 704 4.5%
Other Division 2,031 1,480 551 37.2%
Total Revenue 38,640 35,823 2,817 7.9%
Domestic 35,299 32,274 3,025 9.4%
Export 3,341 3,549 (208) (5.9%)

The FY 2016 figures does not include Agro Processing Division. Revenue on a standalone basis has increased by 7.9% to 38,640 million vis-a-vis 35,823 million in the previous year. This increase in revenues is in all three segments.

Our total domestic revenue increased by 9.1% in fiscal year 2017 to 35,299 million from 32,274 million in fiscal year 2016. The revenues from exports decreased by 3.6% in fiscal year 2017 at 3,341 million from 3,549 million in fiscal year 2016. Export sales accounted for 8.8% of aggregate standalone sales in fiscal year 2017 as compared to 9.9% in fiscal year 2016.

i) Hi-Tech Agri Input Products Division:

Revenues from domestic sales of the Companys HiTech Agri Input Products increased by 5.9% in fiscal year 2017 to 18,079 million from 17,064 million in fiscal year 2016, primarily due to increased sales in retail business. Exports of Hi-Tech Agri Input Products increased by 34.1% at 2,130 million from 1,588 million compared to the previous year.

ii) Plastic Products:

Revenues from domestic business of the Plastic division have increased by 10% in fiscal year 2017 at 15,110 million from 13,731 million in fiscal year 2016. The revenues from export business of Plastic division have decreased by 34.4% in fiscal 2017 at 1,285 million from 1,960 million in fiscal year 2016.

iii) Others:

Other division include Solar Thermal, Solar, Biogas Power, Solar Water Heating systems, and other Agricultural products. Revenues from other division have increased by 37.6% in fiscal 2017 at 2,036 million from 1,480 million in the fiscal 2016.

b) Operating Income* ( in Million)

Particular 2016-17 2015-16 Change absolute Change %
Incentives & Assistance 677 850 (173) (20.4)%

Incentives & Assistance includes government grant in the form of exemption from electricity duty, stamp duty and industrial promotional subsidy for investment in Jalgaon and Alwar. It also includes saving in import duty on procurement of capital goods and export incentives under MEIS scheme.

c) Raw Materials Consumption* ( in Million)

Particular 2016-17 2015-16 Change absolute Change %
Polymers, Chemicals & additives, packing material, etc. 23,941 21,359 2,582 12.1

Raw materials consumption increased by 12.1% at 23,941 million as compared to 21,359 million in the previous year, mainly due to increase Raw Material prices of plastics.

d) Other Expenses* ( in Million)

Particular 2016-17 2015-16 Change absolute Change %
Other Expenses 7,676 8,470 (793) (9.4)

Other Expenses decreased by 9.4% to 7,676 million compared to 8,470 million in the previous year, mainly due to the transfer of Indian Food business & decline in export selling expenses.

e) Employees Benefit Expenses* ( in Million)

Particular 2016-17 2015-16 Change absolute Change %
Employees Benefit Expenses 2,639 2,568 71 2.8

Employee costs increased by 2.8% to 2,639 million as compared to 2,565 million in the previous year. The escalation is primarily due to increment from July, 2016 and new employment generation. f) Finance Costs* ( in Million)

Particulars 2016-17 2015-16 Change absolute Change %
Interest Expenses 3,053 3,905 (852) (21.8)
Bank Charges 370 379 (9) (2.4)
Total 3,423 4,285 (862) (20.1)

The Finance Cost decreased by 20.1% to 3,423 million compared to 4,285 million in the previous year. The overall finance cost is 9.4% of net sales in current year as against 10% in previous year.

* The figure for note no. (b) to (f) are not comparable as FY 2016-17 does not include Agro Processing Division.

g) Fixed Assets ( in Million)

Particulars 31 Mar 2017 31 Mar 2016 Change absolute Change %
Gross Block :(net of disposal) 39,581 38,593 988 2.6
Less: Depreciation 10,258 8,495 1,763 20.8
Net Block 29,322 30,098 (775) (2.6)

Gross block increased by 988 million during the year & Accumulated depreciation has increased by 1,763 million during the year.

h) Investments ( in Million)

Particulars 31 Mar 2017 31 Mar 2016 Change absolute Change %
Investment in wholly owned subsidiary (WoS)/ Subsidiary Company 10,347 13,647 (3,300) (24.2)
Other Investment 623 623 - -
Total 10,970 14,270 (3,300) (23.1)

The decrease of 3,300 million in investments in WOS is mainly due to redemption of Preference Shares and other investments.

i) Inventories ( in Million)

Particulars 31 Mar 2017 31 Mar 2016 Change absolute Change %
Inventories 8,923 7,342 1,581 21.5

The overall inventory has increased by 1,581 million mainly on account of increase in Hi Tech Agri Input Products during the current year as compared to previous year.

j) Trade Receivables ( in Million)

Particulars 31 Mar 2017 31 Mar 2016 Change absolute Change %
Gross Receivables 16,572 19,388 (2,816) (14.5)
Less: Impairment allowances 1,221 1,402 181 12.9
Net Receivables 15,351 17,986 (2,635) (14.7)

The net receivable was decreased by 14.7% at 15,351 million compared to 17,986 million in the previous year, mainly due to realisation of export receivabl 3,208 million and increase in trade receivables by 392 million the decrease in impairment allowance by 181 million is because of realisation of old outstanding receivables.

k) Short Term Loans and Advances ( in Million)

Particulars 31 Mar 2017 31 Mar 2016 Change absolute Change %
Short Term Loans & Advances 7,001 9,799 (2,798) (28.6)

Short Term Loans & Advances decreased by 2798 million in Current year mainly due to redemption of loans by Subsidiaries and receivables against slump sale.

l) Current Liabilities ( in Million)

Particulars 31 Mar 2017 31 Mar 2016 Change absolute Change %
Current Liabilities (Excluding current maturities of borrowings) 18,086 23,978 (5,892) (24.6)

Current Liabilities decreased by 5,892 million to 18,086 million in current year from 23,978 million in the previous year, mainly due to decrease in current borrowings by 7,427 million, increase in trade payables by 780 million and increase in advances from Customers by 720 million.

m) Long Term Borrowing ( in Million)

Particulars 31 Mar 2017 31 Mar 2016 Change absolute Change %
Long Term Borrowing (including the current maturities) 10,053 14,692 (4,639) (31.6)

*Excludes CCDs issued to investor being treated as equity.

The Long Term Borrowing decreased by 4,639 million mainly on account of repayment of long term loans. n) Shareholders Funds ( in Million)

Particulars Equity Capital Share Premium Other Reserves Retained Earnings Total
Balance as on 1st April 2016 953 11,673 6,496 22,496 41,618
a) Allotted during the year 6 153 - - 159
b) Share option outstanding - 30 - - 30
b) Profits for the year - 1,638 1,638
c) Dividend paid (incl. dividend tax) - (290) (290)
d) Adjustments / other comprehensive income - - 79 (69) 10
Sub Total (a to d) 6 183 79 1,279 1,547
Balance as on 31st March 2017 959 11,856 6,575 23,775 43,165

o) Dividend

The Board has proposed to pay dividend on Ordinary Equity Shares and DVR Equity Shares @ 0.75 per share (37.5%) to all eligible Shareholders, subject to approval of Shareholders at the ensuing AGM. The dividend cash-outgo (including dividend tax) would be 433 million as against 287 million in the previous year. The dividend pay-out as percent of Net Profit works out to 26.4% as compared to 46.9% in previous year.

( in Million)

Particulars 2016-17 2015-16 Change absolute Change %
Equity Dividend 360 238 122 50.9

Disclaimer :

The Management cautions that some of the statements above are directional and forward looking and do not represent correctness of the underlying projections as they are dependent on various factors some of which may be outside control of the management.