McDowell Holdings Ltd Management Discussions.

Overview – Financial Performance

This has been comprehensively covered in the Report of the Directors for the year under review.

Industry Structure & Developments

Your Company is essentially a financing/investment company having strategic investments in other companies, which were / are engaged in the business of Property Development & Exports, Manufacture and Sale of Beer, Chemicals & Fertilizers, etc. The profitability of the Company is linked to the performance of the investee companies which declare dividend based on their performance as well as fluctuations in the quotations on the Stock Market.

Opportunities and Risks

The Company continues to hold significant investments in equity share capital of Investee Companies engaged in the business of Manufacture and Sale of Beer and Chemicals & Fertilizers, etc., which are characterised by fluctuations in prices, regulation and excessive taxation. These investments are subject matter of an Attachment Order by the Enforcement Directorate. The Company has filed submissions in the appropriate Court seeking release of these shares. These investments, being attached, are not in a position to be dealt with till the attachment is vacated. Any downward movement of product prices of the Investee Companies could also affect their margins, which could be a threat to the Companys prospects.

On May 3, 2018 a total of 22,00,360 shares held in the Company by three Promoters were also transferred from their respective demat accounts to the demat account of the Deputy Director, Enforcement Directorate, Mumbai. These shares include the shares held by thetwo Promoters, which were also attached by Order of Attachment dated June 21, 2018 by the Recovery Officer, Debt Recovery Tribunal, Bangalore.

Human Resources Management

The Company presently has 22 employees who are professionals in their field and are given independent responsibilities to perform appropriate roles in the Companys development. The Company will strengthen its operative staff as and when the need arises.