Mount Shivalik Industries Ltd Management Discussions.

A. OUTLOOK

• Global Economic Overview:

• Global growth is projected to accelerate to 2.7 percent this year and further strengthen to 2.9 percent in 2018-19, in line with previous projections. However, the world economy continues to face a number of downside risks. They include increased protectionism, heightened policy uncertainty, the possibility of financial market turbulence, and, over the longer run, weaker potential growth. These risks highlight the urgency for policymakers in emerging market and developing economies to rebuild macroeconomic policy space and implement policies that support investment and trade.

• India Economic Overview:

• Indias economy has grown at a strong pace in recent years owing to the implementation of critical structural reforms, favorable terms of trade, and lower external vulnerabilities. Beyond the immediate challenge of replacing currency in circulation following the November 2016 currency exchange initiative, policy actions should focus on reducing labor and product market rigidities to ease firm entry and exit, expand the manufacturing base, and gainfully employ the abundant pool of labor. Policy actions should also consolidate the disinflation under way since the collapse in commodity prices through agricultural sector reforms and infrastructure enhancements to ease supply bottlenecks; boost financial stability through full recognition of nonperforming loans and raising public sector banks capital buffers; and secure the public finances through continued reduction of poorly targeted subsidies and structural tax reforms, including implementation of the recently approved nationwide goods and services tax.

The improvement in Indias economic fundamentals has accelerated in the year 2017 with the combined impact of strong government reforms, RBIs inflation focus supported by benign global commodity prices.

India was ranked the highest globally in terms of consumer confidence during October-December quarter of 2015, continuing its earlier trend of being ranked the highest during first three quarters of 2015, as per the global consumer confidence index created by Nielsen.

• Global Beer Industry:

• The global beer market is expected to generate about $688.4 billion in sales by 2020. Besides this, the aforementioned industry is likely to register a CAGR of 6% during the forecast period, 2015 - 2020.

• A significant increase in the consumption volume is believed to fuel the market growth in developing regions. Beer is a yeast fermented alcoholic drink prepared from malt, and flavored by adding hops.

• Indian Beer Industry:

• In 2014-15 financial year beer market in India has grown by 6% to 22.3 mln hl (or to 286 mln cases). On the one hand, this growth rate is twice faster as compared to the previous year; on the other hand, it is twice slower than the average rate over the last 10 years.

• India is an unusually young country (the average age is 25.1 years, and the portion of people aged up to 24 years of age is 47%), and this fact significantly restricts the consumption of beer today, but makes the market more promising for the brewers. The number of potential consumers of beer increases by about a million people a year only due to the balance of growth/ loss of population.

B. RISKS, CONCERNS AND THREATS.

Risks and Concerns

• The Industry is highly regulated by the Government with regulations pertaining to pricing, licensing, manufacturing capacity and process, marketing, sales and advertisement. Heavy taxes duties levied on beer manufacturers.

• Each State Government of India has its own regulations, tax rates and different duties other from Central Government Regulation.

• Alcohol industries has not included in the range of Goods and Service Tax, also improve uncertainty for the industry.

Threats

• Banning of Alcoholic Products in certain states of India is also a matter of concern, impacting industry growth, Jobs, and revenue of states and also influences the black marketing.

C INTERNAL FINANCE CONTROL SYSTEMS:

• Mount Shivalik Industries Limited has a team of external professionals to monitor our internal processes through Internal financial control functions.

• The scope, coverage, control, weakness and other relevant issues and updates are shared by Internal Financial Control System at appropriate management levels including Director - Finance for corrective action and the progress thereof is tracked.

D HUMAN RESOURSES:

• The Companys constant endeavor has been to attract, retain and nurture human potential by developing culture of family and human values. The Company ensures that proper encouragement both moral and financial is extended to the employees to motivate them. The Company enjoys the excellent relationship with workers and staff.

• We continued to significantly improve our performance in the area of productivity and safety by means of focused initiatives.

• The Management of the Company maintained the harmonious behavior with the employees of the Company.

E CAUTIONARY STATEMENT:

• Investors are cautioned that statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable securities laws and regulations.

• Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand / supply and price conditions in the domestic and overseas market in which the Company operates, risks inherent in the Companys growth strategy, change in Government regulations, tax laws and other statutes and other incidental factors.

For Mount Shivalik Industries Limited
Date: 05th September, 2019 Director
Place: Jaipur, Rajasthan DIN 00226806