Orient Beverages Ltd Management Discussions.

a. Industry structure and developments: The global business witnessed moderate growth in the year 2019, following a slowdown across most advanced and developing nations. Increasing trade barriers, rising geo-political tensions and lower industrial output have cumulatively affected global growth during the year. International Monetary Fund(IMF) estimates that global GDP grew by 2.9% in 2019. However, in 2020, the world economy is expected to show a steady rebound. With the stabilization of economic conditions, recovery in investments, and easing trade tensions, IMF expects global growth to edge up to 3.3% in 2020 and 3.4% in 2021.

The Indian economy was also stable with steady growth. In fiscal 2019, India clocked a GDP growth rate of 6.8%, thus maintaining the tag of the fastest-growing major economy in the world. Although economic growth during the second half of fiscal 2019 slowed down, given the deceleration in investments and private consumption following lower income growth, rural stress, and NBFC liquidity issues, the Government of India has announced a series of structural reforms to boost sustainable economic growth. Among these are liberalization of FDI flows and corporate tax reforms, including a massive reduction in the corporate tax rate. These measures are expected to increase capital inflows, to stabilize the financial structure, improve investments, and strengthen the overall business environment in the country. The Indian economy is expected to pick up momentum from the second half of fiscal 2020, on the back of accommodative fiscal and monetary policy and reform implementations. According to IMF, the growth in India is projected at 6.1% in fiscal 2020 and is then expected to rebound to 7.0% in fiscal 2021. The GDP rise would have a cascading effect on consumer spending, which would in turn further drive growth.

India is one of the fastest growing economies of the World. The Beverages industry being Fast Moving Consumer Goods (FMCG) segment is the fourth largest sector in the Indian economy. The sector is expected to grow at a Compound Annual Growth Rate of 27.86% to reach " 7,11,620 crore by 2020. Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sectors.

b. Opportunities and threats: The Companys main threat is competition from multinational giants and local entrepreneur who are also engaged in beverages industry. The change in taste of consumers gives opportunities to the Company to grow further.

c. Segment wise performance: The Company is operating mainly in two segments i.e. Beverages and Real Estate business. Sale of Beverages has increased from " 6,43,638 thousand in the FY 2018-19 to " 7,62,900 thousand in the FY 2019-20, showing an increase of 18.53%. Rental income from Real Estate business has decreased from " 49,051 thousand in the FY 2018-19 to " 16,886 thousand in the FY 2019-20, due to expiry of lease rights of the Company in the property situated at 225C, A. J. C. Bose Road, Kolkata. However, negotiations for renewal of the lease are going on.

d. Outlook: Considering the Real Estate activities are stable, the Company is likely to focus mainly on beverages segment. The Company will also look forward for any attractive opportunities, if available in other sectors.

e. Risks and concerns: The risk of the Company are interest risk, market risk etc. Increased competition from multinational giants and increase in government levies, from time to time, are main concern of the Company.

f. Internal control systems and their adequacy: The Company has adequate systems of Internal Controls commensurate with its size and operations to ensure orderly and efficient conduct of business. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information.

g. Financial performance with respect to operational performance: The financial performance of the Company for the year 2019-20 is discussed in the Directors Report under the head Operations and State of Companys Affairs.

h. Material developments in human resources and industrial relations front: The Company sincerely make efforts and gives special attention to Human Resources/Industrial Relations development. Industrial relations remained cordial throughout the year and there was no incidence of strike, lock out etc.

i. Cautionary statement: The statements describing the Companys outlook, estimates or predictions may be forwardlooking statements based on certain assumptions of future events. Actual results may differ materially from those expressed or implied, since the Companys operations are influenced by external or internal factors. Your Company closely monitors all major developments likely to affect the operations and will respond to meet the potential threats and to gain from any possible opportunities.

For and behalf of the Board
Kolkata, 26th August, 2020 Chairman