Sarda Proteins Ltd Management Discussions.

Managements Discussion and Analysis Report for the year under review, as stipulated under Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, forms part of the Annual Report for the Financial Year 2017-18, which is presented as under:

a) INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian economy is striving on a relatively strong path. However, there was a strong competition in edible oil market due to imports and lower taxation to new MSME units. The market was hit due to demonetization, which affected the sales for around two months.

Your Companys vision and business strategy remain strongly in sync with the proposed growth areas.

b) OUTLOOK ON OPPORTUNITIES

The company is mainly dealing in Edible oils and other Agro products viz. oil seed, cereals etc. The current year after initial good going, took a steep fall which is very rarely seen in the first quarter due to fall in sales for no body stocking the goods due to imposition of GST. Earlier performance of the company was also affected due to benefit of taxation to MSME But with the advent of Goods and Services Tax from 1st July 2017, there is going to be level playing field for all the players in the industry from the taxation point of view. The management now hopes this will help your company to regain market share in the edible oil market.

The Board of Directors is hopeful to deliver better results in the current financial year after the advent of Goods and Services Tax.

c) OUTLOOK ON THREATS, RISKS AND CONCERNS

Government policies, political situation and global speculative trends in the commodities company is dealing pose some risk to the operations of the Company.

Risk management techniques have been deployed at every level to ensure the competitiveness of the company without making itself vulnerable to the macro as well as micro risks. All the risks are dealt in the best possible manner safeguarding an efficient working environment throughout the organization culture. In event of unforeseen risks the company would rely on the experience and dedication of its board to tackle any issue that may affect its performance.

d) PRODUCT-WISE PERFORMANCE

The edible oil business continues to account substantial part of companys turnover. Your company mainly deals in mustard oil, refined oil and other edible products backed up with strong distribution network. The Market environment continues to be very competitive and the Company faces intense competition with regional players in edible oil segment.

Amount in Rs.lakhs

Revenue from product 2017-18 2016-17
Mustard Oil 4,44,30,968 1,94,75,785
Refined Oil 1,11,40,963 2,88,20,906
Husk Nil 10,68,582
Barley Cut and Thin Nil 5,26,092
Mustard Seed Nil 15,17,410
Wheat 5,63,775 50,62,700
Seasame Seed Nil 44,47,241

The overall revenue from its products has declined as compared to previous years however the Company is hopeful that there would be healthy market growth in the forthcoming years.

e) INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has established its internal control system commensurate with the requirement of its size. In the company is well staffed with experienced and qualified personnel who will play an important role in implementing and monitoring the internal control environment and compliance with statutory requirements.

f) FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year under review, total revenue for the financial year ended March 31, 2018 stood at Rs. 563.19 Lakhs as against Rs. 610.61 Lakhs for the financial year ended March 31, 2017 further the Loss after tax for the financial year ended March 31, 2018 stood at Rs. 33.08 Lakhs as against a loss of Rs. 13.21 Lakhs for the financial year ended March 31, 2017. The company has incurred expenses of Rs. 600.92 Lakhs as against Rs. 635.71 Lakhs in the previous year. The EPS for the financial year ended March 31, 2018 is Rs. (1.92) as compared to Rs. (0.77) for the previous year.

FINANCIAL PERFORMANCE FOR THE YEAR ENDED ON 31.03.2018

Particulars F.Y. 2017-18 F.Y. 2016-17
SALES 563.19 610.61
Other Income 2.03 7.42
Expenses 600.92 635.71
Profit/(Loss) before Depreciation and Extra Ordinary Income (35.74) (17.68)
Depreciation 1.11 1.45
Extra Ordinary Income - -
Profit/(Loss) before Taxes (36.81) (19.14)
Provision for Taxes (3.73) (5.93)
Net Profit/(Loss) (33.08) (13.21)

g) HUMAN RESOURCE MANAGEMENT

Human resources are a valuable asset for any organization. The company is giving emphasis to upgrade the skills of its human resources. This is in keeping with its policy of enhancing the individuals growth potential within the framework of corporate goals. Total number of employees as on March 31, 2018 stood at 7.