MSR India Ltd Management Discussions.

a) Industry Structure, Development and Outlook:

During the financial year the Company has brought 500 ml Water Bottle and Glass along with 1000 ml with new design & dimensions for easy carry by all age group people including school children and also manufactured the other copper made utensils for household purposes.

The Company has started new manufacturing units in 6.6 Acres of land, which is in the erection process, and has imported new machineries from China of which it is under process of Installation in project site. Whereas the other segments of the company that is in FMCG segment and ISRO segment the company has have turnover 24.82% and 2.84% during the financial year ended 31st March 2018. Exclusively Dr. COPPER could achieve 72.34% Turnover during the financial year.

Dairy activities have traditionally been integral to Indias rural economy. The country is the worlds largest producer of dairy products and also their largest consumer. Almost its entire produce is consumed in the domestic market and the country is neither an importer nor an exporter, except in a marginal sense.

Despite being the worlds largest producer, the dairy sector is by and large in the primitive stage of development and modernization. Though India may boast of one of the worlds largest cattle population, the average output of an Indian cow is significantly lower compared to its American counterpart. Moreover, the sector is plagued with various other impediments like shortage of fodder, its poor quality, dismal transportation facilities and a poorly developed cold chain infrastructure. As a result, the supply side lacks in elasticity that is expected of it.

On the demand side, the situation is buoyant. With the sustained growth of the Indian economy and a consequent rise in the purchasing power during the last two decades, more and more people today are able to afford milk and various other dairy products. This trend is expected to continue with the sector experiencing a robust growth in demand in the short and medium run. If the impediments in the way of growth and development are left unaddressed, India is likely to face a serious supply - demand mismatch and it may gradually turn into a substantial importer of milk and milk products.

b) Opportunities and Threats:

• Growing Demand

• Highly Unorganized Sector

• New Telangana Industrial Policy

• Local Manufacturers

• Pricing Wars

• Logistic costs

c) Business performance and Segment Reporting:

During the year under review, the Company has recorded revenue of Rs.14003.63 Lakhs and made a net profit of Rs.177.00 Lakhs against revenue of Rs. 11260.44 Lakhs and net profit of Rs. 90.64 Lakhs in the previous financial year 2016-17.

The following segment wise turnover in percentage wise during the financial year:

Dr. Copper 72.34%
FMCG 24.82%
Special Components for ISRO 2.84%

d) Business Outlook:

The company is planning to manufacture the copper materials which will be component product for all the sectors like Small, Medium & Heavy Industrial Sectors, Household Sectors, Electrical and Electronic & Communications segments etc. The commencement of product from the new manufacturing unit will be subsidizing the complete turnover which has been achieved till now. The Company is expecting to utilize the 100% production capacity increase the supply chain in all the segments of the company.

Specifically the company shall bring Copper made components and materials for all the business sectors probably by end of current financial year. By the company profits will increase at least by 75% by the next Annual General Meeting of the company. The management announced that there will heavy financial expenditure and may the profits may slightly come down comparatively with the present financial year that is 2017 - 2018

e) Risks and Concerns:

• A large part of our revenue depends on our top clients and loss of any major client may lead to negative impact on our business.

• Our success depends on our top Management and key personnel and our ability to attract and retain them.

• Duplicity of the product may lead to negative reviews in the public opinion.

f) Internal Control System and its adequacy:

The system of internal control has been established to provide reasonable assurance of safeguarding assets and maintenance of proper Accounting Records and its accuracy. The business risks and its control procedures are reviewed frequently. Systems audit is also conducted regularly to review the systems with respect to Security and its Adequacy. Reports are prepared and circulated to Senior Management and action taken to strengthen controls where necessary.

g) Human resources and Industrial relations:

The company continues to have cordial relations with its employees and Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a coowner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results.

For and on behalf of the Board
MSR India Limited
K V Rajasekhar Reddy
Place: Hyderabad Managing Director
Date: 03.09.2018 (DIN:07120513)