Trombo Extractions Ltd Management Discussions

The management of your Company is pleased to present the discussions and analysis on the industry structure, developments, future outlook and operating and financial performance.

1) INDUSTRY STRUCTURE AND DEVELOPMENT:

The per capita consumption of vegetable oil is relatively low in India leaving a scope for market expansion consistent with high disposal income in future. Keeping in view the rising input costs of account of imports, various measures are being taken by the Government to step up the domestic oil seed production arid moderate import duties with a view to ensure adequate availability and price stability, taking into account the equitable view towards various stakeholders such as domestic farmers, industry, consumers etc.

2) OPPORTUNITIES AND THREATS:

Opportunities

• Increase in income levels will aid greater penetration of new customer demand.

• Positive regulatory reforms.

• Increase in corporate growth & risk appetite.

• Increased trend of fashion in textile industry.

• Focus on selling new product/services.

Threats

• Inflation could trigger increase in consumer price inflation, which would dampen growth.

• Increased competition in both local & overseas markets.

• Unfavorable economic development.

• Market risk arising from changes in the value of financial instruments as a result of changes in market variables like interest rate and exchange rates.

3) SEGMENT-WISE PERFORMANCE:

The Company has identified its activities as single segment. Hence, the Companys performance is to be viewed as a single segment company operating in Cement industry.

4) RECENT TREND AND FUTURE OUTLOOK:

The introduction of Goods and Service Tax has brought in the much needed uniformity and transparency in the edible oil industry. The industry is in the process of consolidation with the large domestic and multinational entities having strong business capabilities, efficiencies in logistics, operations in strategic locations and strong consumer focus and seeking opportunities to expand the growing market share.

5) RISK AND CONCERNS:

Your Companys business was exposed to price fluctuations on its major raw materials with bulls of them being agro based and subject to market price variations during the year. Prices of these commodities continue to be linked to domestic prices, which depend oil the various external factors like good monsoon in the country. The setting tap of commodity exchange and introduction of commodity futures and other hedge strategies in the country has opened up reasonable opportunities for the industry to hedge and manage the impact of these price fluctuations.

6) INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

Monthly information system is backbone of our internal control system. Roles and responsibilities for all managerial positions have been clearly defined. All operating parameters are closely monitored and controlled. The management also regularly reviews the operational efficiencies, utilization of fiscal resources, and compliance with laws so as to ensure optimum utilization of resources and achieve better efficiencies.

7) ANALYSIS & DISCUSSION OF FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During the Year the Company was not having any business due to heavy losses and other reasons.

8) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT:

The employees are basically its human resource assets. They have played significant role in growth of the Company and enabled Company to deliver superior performance during the year. The Company has initiated several steps for overall development, training and welfare of its human resource asset and progress is monitored on regular basis. Employee relations have continued to remain cordial during the year under review.

9) DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

As mentioned in clause B(i) of Schedule - V read with Regulation 24(3) and 53(f) of the SEBI (Listing and Disclosure Requirements) Regulations, 2015 specifying requirement of additional disclosure as inserted by the SEBI (Listing and Disclosure Requirement (Amendment) Regulations, 2018 applicable w.e.f. 01.04.2020, it is confirmed that, there is no significant change in any ratios for more than 25% as compared to previous Financial year 2019-20.

10) CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the companys objectives, projections, estimates, expectations may be forward- looking statements within the meaning of applicable securities laws and regulations. Actual results could defer materially from those expressed or implied. Important factors that could make a difference to the companys operations include economic conditions affecting demands/supply and price conditions in the domestic markets in which the company operates; changes in the Government regulations, tax laws and other statutes and other incidental factors.