Maharashtra Corporation Ltd Management Discussions.

The management of Maharashtra Corporation Limited presents the analysis of performance of the Company for the financial year ended 31st March, 2021 and its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic and other developments.

Consequent to the outbreak of the COVID-19 pandemic, the Indian Government announced a lockdown in March 2020. Subsequently with the second wave which has seen sudden increase in the number of cases, regional lockdowns continue. The impact of COVID-19, including changes in customer behavior and pandemic fear, as well as restrictions on business and individual activities, has led to significant volatility in global and Indian financial markets.

In India, the economic impact of COVID-19 is trickling in on the backdrop of an already challenging macro-economic environment with lower GDP growth rates, liquidity crunch, and peaking unemployment rate. Responding to the potential serious threat that this pandemic has to public health, the Indian Government has taken series of measures to contain the outbreak, which included imposing multiple lock-downs across the country.

Government has initiated various measures to boost the economy including direct benefit transfer, increased allocations to key sectors like infrastructure, agriculture, MSMEs etc. Reserve Bank of India has cut repo rate by 181 bps on a cumulative basis this year to support the aggregate demand and private investment as well as ease liquidity given the COVID-19 situation. The reduction in corporate tax rate is a big boost to the industry; it makes India much more competitive globally and should accelerate investments in the economy

INDUSTRY STRUCTURE AND DEVELOPMENT

The year witnessed a highly dynamic situation of our Country. India must be consistent in regaining its position as a leading emerging market investment destination. This can only be possible if consistency and clarity is in our policies. Basically, India is experiencing a difficult economic situation on the growth, asset quality, inflation and fiscal deficit fronts. Growth estimation graph shows bottom ward trends but recovery is predicated upon clarity of policy matters and decision making by the Government. Both

of the factors are out of the control of private enterprises. The past year has been a challenging year for our Industry with lots of ups and downs.

In spite of the above, Company has been able to maintain its steady performance during the year under review. Your Companys performance for the year 2020-21 has to be viewed in the context of aforesaid economic and market environment.

INDIAN AGRO-COMMODITY INDUSTRY

Agriculture is the primary source of livelihood for about 58% of Indias population. Gross Value Added (GVA) by agriculture, forestry and fishing was estimated at Rs. 19.48 lakh crore (US$ 276.37 billion) in FY20 (PE). Growth in GVA in agriculture and allied sectors stood at 4% in FY20.

The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year due to its immense potential for value addition, particularly within the food processing industry. Indian food and grocery market is the worlds sixth largest, with retail contributing 70% of the sales. The Indian food processing industry accounts for 32% of the countrys total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

Essential agricultural commodities export for the April-September period of 2020 increased by 43% to Rs. 53,626 crore (US$ 7.3 billion) over Rs. 37,397 crore (US$ 5.1 billion) in the same period last year.

Market Size

• Sugar production in India reached 26.46 MT between October 2019 and May 2020 sugar season according to Indian Sugar Mills Association (ISMA).

• India is among the 15 leading exporters of agricultural products in the world. Agricultural export from India reached US$ 38.54 billion in FY19 and US$ 28.93 billion in FY20 (till January 2020).

• The organic food segment in India is expected to grow at a CAGR of 10% during 2015-25 and is estimated to reach Rs. 75,000 crore (US$ 10.73 billion) by 2025 from Rs. 2,700 crore (US$ 386.32 million) in 2015.

OPERATING RESULTS OF THE COMPANY

The total revenue of Rs. 41.79 Lakhs in comparison to Rs. 1.91 Lakhs generated in previous year. The Company incurred profit of Rs. 0.57Lakhs during the year 31/03/2021as compared to loss of Rs. 7.31 Lakhs for the last year ended on 31/03/2020

OPPORTUNITIES

• There is a provision of more FDI and investment opportunities.

• Withdrawal of quota restriction is contributing immensely in market development

• The global needs are being catered with product development.

• An upsurge in the purchasing power and disposable income of Indian customers has opened room for new market development.

PROSPECT & OUTLOOK

The management is of the view that the future prospects of your Company are bright and the performance in the current year is expected to be very well. The committed customers of the Company are expected to place more orders, which ultimately affect the top line of the Company, positively.

OPPORTUNITIES & THREATS

Your Company sees enormous opportunity in growing demand for commodities and has immense potential for penetrating and reaching the large population across the country. Favourable Government policies and improved infrastructure will greatly benefit the Company in the business.

RISK FACTORS

Several factors may affect our result of operations that may make it difficult to predict the future financial results. Such factors are:

• Movement in Price of Commodities & Raw materials

• Operating cost & Efficiency

• Product and Market Mix

• Exchange Rates

• Government policies, rules and regulations affecting Agro commodities

• Availability of Government Benefits & Subsidies

• Ability to organise funds for projects

• Availability of skilled human forces

• Competition

• Break down of machinery or plant

• Disrupted power supply from state electricity board

• Strike by labourers

• Development / Innovation / Emergence of any substitute for our products

• Natural Calamities & Disasters and other unforeseen/ unavoidable circumstances

INTERNAL CONTROL SYSTEMS & ADEQUACY

Internal Control Systems has been designed to provide reasonable assurance that assets are safeguarded, transactions are executed in accordances with managements authorization and properly recorded and accounting records are adequate for preparation of financial statements and other financial information. Internal check is conducted on a periodical basis to ascertain the adequacy and effectiveness of internal control systems. The management has put in place internal systems for review and monitoring of non-performing assets of the company and to indicate corrective action for effecting recoveries.

DISCLAIMER REMARK

Readers are cautioned that this Management Discussion and Analysis contains forwardlooking statements that involve risks and uncertainties. When used in this discussion, the words "anticipate", "believe", "estimate", "intend", "will", and "expected" and other similar expressions as they relate to the Company or its business are intended to identify such forward looking statements, whether as a result of new information, future events, or otherwise. Actual result may vary from those expressed or implied. The important factors that would make a difference to the Companys operations include economic conditions affecting demand supply and price conditions in the domestic markets, raw material prices, changes in the Governmental regulations, labour negotiations, tax laws and other statutes, economic development within India and the countries within which the Company conducts business and incidental factors. The Company undertakes no obligation to publicly amend, modify or revise any forward-looking statements on the basis, of any subsequent developments, information or events. The discussion and analysis should be read in conjunction with the Companys financial statements included herein and the notes thereto.