Premier Capital Services Ltd Management Discussions.


The Indian Dairy industry is at the cusp of another revolution, moving towards increased contribution from various value-added milk products. India, in its quest to become a matured dairy industry, is aggressively transitioning from unorganized to more of an organized and branded market. These two structural shifts from unorganised to organized market and from traditional products to value-added dairy products will provide long-term growth visibility to the organized dairy sector.

The demand for value-added products will be driven by changes in macro-economic factors like increase in urbanization, nuclear families, increasing number of dual income households with working women and improved per capita spending.


Your company is mainly engaged in the business of trading of dairy products such as milk, skimmed milk powder, ghee, butter, cheese etc. which are under one broad segment of the market, so segment reporting is not applicable to it.


Multiple vaccine approvals and the launch of vaccination in some countries since December 2020 have raised hopes of an eventual end to the pandemic and have boosted investor sentiments worldwide. Emerging market and developing economies are expected to track diverging recovery paths as it would largely hinge on the speed of vaccination, effectiveness of policy support and country-specific structural factors. Organization for Economic Co-operation and Development (OECD), in its interim economic assessment, stated that economic activities in China, India and Turkey have moved above pre-pandemic levels led by strong fiscal and quasi-fiscal measures and a recovery in manufacturing and construction. However, renewed waves and new variants of the virus pose concerns to the outlook.


The long-term outlook of Indian dairy sector is favourable on account of increasing population, increase in per capita consumption, increase in expenditure on package food, brand awareness, urbanization & increase in nuclear families and government support. The growth would be primarily driven by increase in the demand for value-added milk products, which is also margin improver for the players. Anticipating and responding to the changing consumer preferences in a timely manner helps building a strong consumer demand for the brand.


Climate change and scarcity of water are the major threats to the dairy industry. A drought or a rainfall deficit results in increased cost of cattle feed and reduced availability of green fodder for cattle thereby constraining milk supply. Such adverse weather and seasonal conditions may lead to a decline in supply and a spike in raw milk prices.


The Company has adequate internal control and Procedures systems commensurate with the nature of its business and the size of its operations. Continuous efforts are being made to see that the controls are designed to provide a reasonable assurance with regard to maintenance of accounting controls and assets from unauthorized use or losses. All significant audit observations and follow-up actions thereon are reported to the Audit Committee. The audit committee looks into all aspects of internal functioning and advises corrective action as and when required.


The financial performance and financial ratios of the company has been covered in the Director’s Report and Financial Statements of the company.


The Company regards its employees as valuable asset and continuously reviews and evolves policies and procedures to attract and retain its pool of technical and managerial personnel through a conducive work environment.

As required under Regulation 17(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the financial year 2021-22.

a) We have reviewed financial statements and the Cash Flow Statement for the year and that to the best of our knowledge and belief:

i) These statements do not contain any materially untrue statement or omit any material fact or contain statement that might be misleading;

ii) These statements together present a true and fair view of the company’s affairs and are in compliance with existing accounting standards, applicable laws and regulations.

b) To the best of our knowledge and belief, no transactions entered into by the company during the year which are fraudulent, illegal or violate of the Company’s code of conduct.

c) We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and we have disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which they are aware and the steps we have taken or propose to take to rectify these deficiencies.

d) We have indicated to the Auditors and the Audit Committee:

i) Significant changes in the internal control over financial reporting during the year;

ii) Significant changes in accounting policies during the year and that the same has been disclosed in the notes to the financial statements; and

iii) There are no instances of significant fraud either by the management or an employee having a significant role in the Company’s internal control system of financial reporting.

Date: 30.08.2022 Sd/- Sd/-
Place: Indore Deepti Dubey Rajendra Kumar Mungar
Chief Executive Officer Chief Financial Officer
4, Bhima Vaitarna Complex,
Sir Pochkhanwala Road,
Worli, Mumbai, (MH) 400 030
CIN: L65920MH1983PLC030629