Omega Ag Seeds (Punjab) Ltd Management Discussions.

i. ECONOMIC REVIEW

India has the 10th largest arable land resources in the world and the country possesses 45 of the 60 soil types across the globe. The country is the largest producer of spices, pulses, milk, tea, while it ranks second in the production of wheat, rice, fruits and vegetables.

Indias agriculture sector is considered to be the backbone of the nations economy. Providing livelihood to over 58 percent of households in the rural areas, the agriculture sector, along with fisheries and forestry, is also one of the largest contributors to the Gross Domestic Product (GDP).

ii. INDUSTRY STRUCTURE AND DEVELOPMENT

At 179.9 million hectares, India holds the second largest agricultural land in the world. A majority of the Indian population relies on agriculture for employment and livelihood. Steady investments in technology development, irrigation infrastructure, emphasis on modern agricultural practices and provision of agricultural credit and subsidies are the major factors contributing to agriculture growth.

iii. OPPORTUNITIES AND THREATS

In spite of some of these positive cues, the agricultural sector has a whole set of complex challenges. The sector continues to be significantly dependent on the monsoons, as majority of the area is rain-fed and is dependent on timely and adequate rain fall. The effects of global warming and unseasonal rains have a negative impact on the crops and the farmers ability to take risks. Changing food consumption patterns as well as volatility in agricultural price has an important impact on the sowing patterns of the crops across various states of India.

Harvesting and post harvesting practices need significant improvement to avoid huge losses. The pressure on land usage for alternate purposes of real estate and industry are shrinking the availability of cultivable land in the country.

Opportunities

• Agriculture reforms targeted at doubling farmer income over next five years to support agri inputs consumption for improving crop yields

• Irrigation projects and Micro irrigation focus to reduce dependence on monsoon and improve nutrient use efficiency

• Infrastructure development- Cold Chains, rural connectivity (133 km roads/day), 100% rural electrification by May 2018 to improve market access

• Higher disposable income on account of improved Minimum Support Price (MSP), augmented MGNREGA allocation, better price discovery through electronic National Agriculture Market and price support through crop insurance scheme

• Governments focus towards improving soil health through Soil Health Cards and Organic fertiliser marketing assistance to promote balanced nutrition practices and organic usage. Further, Direct Benefit Transfer to improve subsidy targeting and increase soil health based recommendations.

iv. RISK MANAGEMENT INITIATIVES

Risk management policies and limits are evaluated by the Board of Directors. Risk limits, policies and procedures are periodically revised keeping in mind changes in market conditions. Risk management in your Company entails an integrated approach with margin protection considerations forming the back-bone of risk management initiatives. The long -term objective of risk management is to provide stability in margins over a longer period and through downturns in economic cycles.

v. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has in place adequate and appropriate systems of internal controls commensurate with its size and the nature of its operations and these have broadly withstood the test of time. The systems have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorizations and ensuring compliance of corporate policies.

vi. CAUTIONARY STATEMENT

"Managements Discussion & Analysis Report" contains forward looking statements, which may be identified by the use of the words in that direction, or connoting the same. All statements that address expectation or projections about the future, including, but not limited to statements about the Companys strategy for growth, product development, market position, expenditures and financial results are forward looking statements. The Companys actual results, performance or achievements could thus differ materially from those projected in such forward looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward - looking statements on the basis of any subsequent development, information or events.

By Order of the Board
For Omega AG Seeds (Punjab) Limited
Sd/-
Lakshmanarao Kondaveti
Place : Hyderabad Managing Director
Date : 05.09.2019 DIN:07706939

ANNEXURE TO DIRECTORS REPORT

The particulars as prescribed under Section 134(3)(m) of the Companies Act, 2013, read with Rule 8(3) of the Companies (Accounts) Rules, 2014 are forming part of the directors report for the year ended 31st March 2019 are as follows:

I. Power and Fuel Consumption 2018-2019 2017-2018.
1. Electricity
a) Purchased Units (in Lakhs)
Total Amount (Rs. In Lakhs)Rate/Unit(Rs.) NIL NIL
b) Own Generation
2. Coal: (Steam used for
Generation of Steam boiler) NIL NIL
Qty. (Tones) NIL NIL
Total Amount (Rs. In Lakhs)
Averages/Tones (Rs.)
3. FURNACE OIL NIL NIL
Consumed Qty. (Kilo Meter.)
Consumed Cost (Rs. In Lakhs)
Averages/Kilo Meter(Rs.)
4. Other/Internal Generation NIL
NIL
Steam Purchased
Qty. (Tones)
Total Cost (Rs. In Lakhs)
Averages/Kilo Meter(Rs.)
5. Consumption per unit of Production NIL NIL
A. Product (Single Super Phosphate)
Electricity
Coal
Furnace Oil
Steam
II. TECHNOLOGY ABSORPTION NIL NIL
Efforts made in technology absorption As per B of the Annexure to the Rules.
1. Research & Development (R & D) NIL NIL
A) Specified areas in which (R & D) carried out by the company
B) Benefits derived as result of the above R&D: NIL NIL
C) Expenditure on R & D NIL NIL
i) Capital
ii) Recurring
iii) Total
iv) Total R&D Expenditure as a percentage of total turnover
2. Technology absorption, adaptation, and innovation NIL NIL
A) Efforts in brief made towards technology absorption adaptation and innovations NIL NIL
B) Benefits derived as a result of the above efforts e.g. product improvement cost reduction, product development, import substitution etc. NIL NIL
C) In case of imported technology (imported during the last five year recknoned from the beginning of the financial year). NIL NIL
Following information may be furnished:
1) Technology Imported
II) Year of Imported
III) Had technology been fully absorbed NIL NIL
IV) If not fully absorbed, areas where this has not taken NIL NIL.
Place reason thereof and future plan action NIL NIL
III FOREIGN EXCHANGE EARNING AND OUT GO
A) Activities relating to exports, intiative taken to increase exports, development of new export markets for products and service and export plans. NIL NIL
B) Total foreign exchange used NIL NIL
C) Total foreign exchange earned NIL NIL