Wadala Commodities Ltd Merged Management Discussions

INDUSTRY STRUCTURE & DEVELOPMENT:

The vegetable oil market continued to show high volatility in the prices as in the past few years. Since your Company operates in vegetable oil trading, in the given situation the objective was to avoid any undue risk. The performance and outlook have been covered separately in this report.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The highlights of overall performance are as follows:

SEGMENTAL PERFORMANCE:

The Company is engaged in the business of bulk trading of vegetable oils, which is its only segment. There is no identifiable secondary segment.

HUMAN RESOURCE AND INDUSTRIAL RELATIONS:

Industrial Relations with the employees were cordial. The total number of persons employed in your company as on March 31, 2014 were 2.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company has proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition, and that transactions are authorized, recorded and reported correctly. The internal control is supplemented by documented policies, guidelines and procedures and an extensive programme of internal and external audit and periodic review by management. The system is designed to ensure that financial and other records are reliable for preparing financial information and other data and for maintaining accountability for assets.

OPPORTUNITIES AND THREATS:

Due to large edible oil demand, deficit indigenous production and necessity to import, trading opportunity exists.

RISKS AND CONCERNS:

The business of the Company is likely to be affected by vagaries of weather (local and international), demand for oil, oilseed production and the high price volatility in the market could lead to high risk in trading.

OUTLOOK FOR 2014-15:

In the past your Company has avoided undue risk due to price volatility in the market. The focus of the Company would continue to be avoiding undue risk while looking for profitable business opportunities.

CAUTIONARY STATEMENT:

Some of the statements in this management discussion and analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include a downtrend in industry, significant changes in political and economic environment in India, tax laws, import duties, litigation and labour relations.

For and on behalf of the Board of Directors

N.S. Nabar

Chairman

Place: Mumbai

Date: April 30, 2014.