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, 2019 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.

REVIEW OF ECONOMY

India has emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers of the world over the next 10-15 years, backed by its strong democracy and partnerships.

Indias GDP is estimated to have increased 7.2 per cent in 2017-18 and 7 per cent in 2018-19. India has retained its position as the third largest startup base in the world with over 4,750 technology start-ups. Indias labour force is expected to touch 160-170 million by 2020, based on rate of population growth, increased labour force participation, and higher education enrolment, among other factors, according to a study by ASSOCHAM and Thought Arbitrage Research Institute. Indias foreign exchange reserves were US$ 405.64 billion in the week up to March 15, 2019, according to data from the RBI.

Indias gross domestic product (GDP) is expected to reach US$ 6 trillion by FY27 and achieve upper-middle income status on the back of digitisation, globalisation, favourable demographics, and reforms. Indias revenue receipts are estimated to touch Rs 28-30 trillion (US$ 385-412 billion) by 2019, owing to Government of Indias measures to strengthen infrastructure and reforms like demonetisation and Goods and Services Tax (GST).

INDIAN AGRO-COMMODITY INDUSTRY

Agriculture is the primary source of livelihood for about 58 per cent of Indias population. Gross Value Added by agriculture, forestry and fishing is estimated at Rs 18.53 trillion (US$ 271.00 billion) in FY18. 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. The Indian food and grocery market is the worlds sixth largest, with retail contributing 70 per cent of the sales. The Indian food processing industry accounts for 32 per cent 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. It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13 per cent of Indias exports and six per cent of total industrial investment.

Market Size

• During 2017-18* crop year, food grain production is estimated at record 284.83 million tonnes. In 2018-19, Government of India is targeting foodgrain production of 285.2 million tonnes. Milk production was estimated at 165.4 million tonnes during FY17, while meat production was 7.4 million tonnes. As of September 2018, total area sown with kharif crops in India reached 105.78 million hectares.  India is the second largest fruit producer in the world. Production of horticulture crops is estimated at record 314.7 million tonnes (mt) in 2018-19 as per third advance estimates.  Total agricultural exports from India grew at a CAGR of 16.45 per cent over FY10-18 to reach US$ 38.21 billion in FY18. In FY2019 agriculture exports were US$ 38.54 billion. India is also the largest producer, consumer and exporter of spices and spice products. Spice exports from India reached US$ 3.1 billion in 2017-18. Tea exports from India reached a 36 year high of 240.68 million kgs in CY 2017 while coffee exports reached record 395,000 tonnes in 2017-18.  Food & Grocery retail market in India was worth US$ 380 billion in 2017.

Achievements in the sector

• Sugar production in India has reached 27.35 million tonnes (MT) in 2018-19 sugar season, as of March 15 2019, according to the Indian Sugar Mills Association (ISMA).   The Electronic National Agriculture Market (eNAM) was launched in April 2016 to create a unified national market for agricultural commodities by networking existing APMCs. Up to May 2018, 9.87 million farmers, 109,725 traders were registered on the e-NAM platform. 585 mandis in India have been linked while 415 additional mandis will be linked in 2018-19 and 2019-20.  Agriculture storage capacity in India increased at 4 per cent CAGR between 2014-17 to reach 131.8 million metric tonnes.  Coffee exports reached record 395,000 tonnes in 2017-18.  Between 2014-18, 10,000 clusters were approved under the Paramparagat Krishi Vikas Yojana (PKVY).

Between 2014-15 and 2017-18 (up to December 2017), capacity of 2.3 million metric tonnes was added in godowns while steel silos with a capacity of 625,000 were also created during the same period.  Around 100 million Soil Health Cards (SHCs) have been distributed in the country during 2015-17 and a soil health mobile app has been launched to help Indian farmers.

BUSINESS & FINANCIAL OVERVIEW

Your Company was originally incorporated in 1982 as Maharashtra Industrial Leasing & Investments Ltd. Your Company is currently involved in Trading & Distribution of Agro commodity products.

During the year under review, the Company have generated total revenue of Rs. 1.74 Lakhs in comparison to the total loss of Rs. 0.48 Lakhs generated in previous year ended 31st March 2018. The Company incurred loss of Rs. 9.25 Lakhs during the year as compared to loss of Rs. 197.98 Lakhs for the last year ended 31st March 2018.Your Directors are trying hard to increase the revenue so that the loss can be recovered and profit margin can be increased. They are optimistic about favourable market conditions in the coming years which shall further result into good profits.

The net worth of your company at the year end stands at Rs. 1272.65 Lacs.

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 forward-looking 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.