Ovobel Foods Ltd Management Discussions.

a. Industry structure and developments:

The company operates in the domain of egg powder and frozen egg manufacture and exports.

At present, there are only few other companies that are active in this domain in India. Your Company has identified the new markets and increased its customer base and product range.

Your company has built a reputation over the years amongst its customer for quality products. The companys sustainability has been centered around enlarging its presence within profitable and attractive retail niches, capitalizing on robust brand building and manufacturing foundation.

b. Opportunities:

Due to several corrective measures taken by the management, companys products are in high demand both in domestic and international markets. This unique advantage is likely to result in bringing in more and more opportunities of added commercial advantage during the days ahead.

c. Threats:

While international competition could pose a threat to companys future operations, your Directors are confident of effectively countering the same by utilizing its past experience and skills.

d. Segment wise or product wise performance:

The company was operating in one predominant segment i.e. manufacture of standard egg powder and frozen egg. At present the company is involved in making specialized products in this segment.

e. Outlook:

Despite the severe working capital shortage, your directors have prioritized in improving its quality measures and have been successful in keeping its clients happy on the product quality front. The management looks to the future with optimism.

f. Risks and concerns:

• Due to the constant rise in raw material prices in the country in the recent past the cost of production is on an increasing trend.

• Rising manpower costs is also a major concern the industry is facing.

• Severe shortage of working capital funds is again a concern for the industry. The company is successful in retaining its clients and convincing them to get better realization by catering with high quality products.

g. Internal control systems and their adequacy:

The company has got adequate internal control systems in place for the current level of operations of the company and your management would continue to strengthen this.

h. Discussion on financial performance with respect to operational performance:

Your Company prepares its financial statements in compliance with the requirements of the Companies Act, 2013 and the Generally Accepted Accounting Principles (GAAP) in India. These financial statements were prepared on a historical cost basis. Your management accepts the responsibility for integrity and objectivity of the financial statements as well as estimates and judgments used. These estimates and judgments relating to financial statements are prudently made to reflect in a true and fair manner the form and substance of transactions. This also enables in reasonably presenting the Companys state of affairs and profits and cash flows for the year ended March 31st, 2019.

i. Material developments in Human Resources/ Industrial Relations front, including number of people employed:

The company has experienced, loyal professionals working in production, sales and administration. The company has got very good industrial relations and the employees and the management has very cordial relationship between them. Your Company prides in the commitment, competence and dedication of employees. The Companys structured induction at all levels and management development programs have helped enhance competence.

j. Cautionary Statement:

Certain statements made in the management discussion and analysis report may constitute ‘forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections and so on, whether express or implied. Several factors could make a significant difference to the Companys operations. These include economic conditions affecting demand and supply, government regulations and taxation, natural calamities and so on over which the Company does not have any direct control.

For and on behalf of the Board of
Ovobel Foods Limited
Sd/- Sd/-
Shanti Swarup Aggarwal Swapan Kumar Majumder
Managing Director Director
DIN: 00322011 DIN: 03178122
Place: Kolkata Place: Kolkata
Date:30.05.2019 Date: 30.05.2019
Sd/- Sd/-
Sudhir Kulkarni Ritu Singh
Chief Financial Officer Company Secretary & Compliance Officer
PAN: AFEPK8240D Membership No.: A24934
Place: Bangalore Place: Bangalore
Date: 30.05.2019 Date: 30.05.2019