MANAGEMENT DISCUSSION AND ANALYSIS REPORT

A. INDUSTRY STRUCTURE AND DEVELOPMENTS

With over the span of three decades, India has transformed from a country of acute milk shortage to the world's leading milk producer. India has one of the largest livestock populations in the world including 50% of the buffaloes and 20% of the cattle in the world are found in India.

With mass population and powerful purchasing power, India is amongst one of the fastest growing consumer market and expected to be the strongest economy in the world in coming future. However, worldwide slow down and external challenges have also affected Indian economy resulting in average growth rate of 5.65% in last financial year which is better than economy growth rate ofWorld ranging around 3.5% to 4%.

Your Company is primarily engaged in the business of processing of Milk & Milk Products, Trading of Agri- Commodities & coal and Wind power Generation.

India has been ranked first amongst the world's milk producing countries, which accounts for around more than 18% of global milk production, most of which is consumed domestically. The per capita availability of milk has increased from 176 grams per day in 1990-91 to more than 300 grams per day in brsent time, comparable with the world's milk per capita availability of 275 grams per day. India, where consumption of dairy products is rapidly increasing, is well poised for higher growth in the coming  years in dairy sector.

In terms of wind power installed capacity, India is amongst top five countries in the world. India has rapidly grown in the Wind Power Energy Sector, despite being a relative newcomer. The Installed Capacity of India remained 23,763 MW during the year 2014-15, growing by more than 7% as compared to brvious financial year. The unexploited resource has the potential to sustain the growth of wind energy in future.

B. OPPORTUNITIES & THREATS

(I) Dairy Business:

With Introduction of major transformation and reforms in dairy industry, India has retained the leadership position in Milk production in the world. India became world's No. 1 milk producer from 1/10th of the world production some year ago, its milk production now accounts to 1/6th of total global milk output. For the financial year 2014-15 Milk Production of the Country is estimated to more than 140 million tonnes. Milk production in India is growing at 4 per cent per annum, whereas in the rest of the world it grows at 2.1 per cent.

In India, milk is an important source of protein for a sizable portion of India's large vegetarian population. Since most of share of milk production is with unorganized sector, therefore increasing hygienic & quality awareness offers great opportunities to entrebrneur worldwide, who wish to capitalize on with hygienic & quality conditions for the world's largest and fastest growing market for milk and milk products. In India potential is there for expansion in smaller towns.

Indian Dairy industry is in unorganized form where quality of milk and animal are poor with yield per cow less than that of  the foreign producer who have already entered in Indian dairy market. Poor quality prohibits Indian milk from being  exported. Indian dairy industry will see tough competition from exporters. Technological up gradation with aim to provide nutrition, health and high quality are key factors for success in dairy business. In years to come greater demand for unadulterated pasteurized liquid milk in poly pouches, high quality nutrition products will be the thrust area for growth.

The Government of India has permitted for exporting of Skimmed Milk Powder (SMP), therefore, export prospects of these products as well as WMP, Soya Protein Isolate and Concentrate and Casein are very bright. This will help Company to get noted in other countries.

(II) Wind Power:

With the encouraging policy for renewable energy, this sector has shown great growth pace which helped India to become the new "Wind Superpower". The Company has Two Wind Power projects at Nagda Hills, Dewas (M.P.) and Jaisalmer (Rajasthan) are successfully generating energy.

(III) Others:

In current year monsoon improved in Central India, where Company's plants exist, therefore good quantity of milk and agri commodities is expected. The symptoms of global commodity business are favorable for coming future and suitable steps of Government and Reserve Bank of India will also keep lower movement in exchange rates. The Company proposes to continue to recognize the full potential in agro commodities & coal in the coming period.

The future performance of your Company would depend to a large extent on its ability to successfully run its existing and forthcoming plants, successful diversification, introduction and market of dairy products and other commodities on opportunity basis. We are hopeful that through the combination of market developments and expansion activity, there will be healthy growth over the next few years.

Few years back your Company has diversified in mining business. Few of the mines allotted to your Company are in process of getting necessary permissions/ approvals to start commercial production in short span of time. Further, sincere efforts of your Company are continue to set up mineral based industry in Madhya Pradesh to use explored minerals from own mines in future. However, recently introduced Amendment Act, 2015 having stringent provisions, has created obstacles in existing mining application/ proposals and process of allotment, which is going to affect mining industry to substantial extent.

On the front of Real Estate business, the integrated township project 'Active Acres' at Kolkata launched few years back by M/s. Mahakosh Property Developers, a partnership firm, wherein your Company is a partner with major stake, is continuously getting good response from all segments of public even in the phase of recession period in the Real Estate Sector, where, out of completed 5 towers and 1 tower under construction, booking of about 90% of the residential units has been done and more than 400 families have started living in township, which is a good sign of your Company's reputation and sustainability which will result in good profits in the years to come. Company is also planning to launch one more tower in the township. Your Company is also having keen interest in entering into new venture in real estate.

C. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Your Company has identified three business segments in line with the accounting standard on segment reporting. These are: Dairy Products - Milk, Ghee, Milk Powder and other Dairy products.  Wind Power - Wind Power Generation

Others - Trading of Coal, Agri Commodities, Edible Oil etc.

The segment wise performance in detail is given in Note 37 to the audited accounts of the Company as available in this annual report.

D. OUTLOOK

To capture additional market share and to fulfill coming demand of dairy products, the Company's endeavors are also continuing to enter into remaining parts of Central, Western and Southern parts of India also. We have started concentrating more on supplying hygienic quality liquid milk in pouches and in tetra pack with longer shelf life and hopeful that this will further strengthen our position in the market.

Further, the Wind Power Projects of the Company are generating electricity satisfactorily. Electricity produced in Rajasthan Plant is being sold to Rajasthan Electricity Board (RSEB) while in Madhya Pradesh we have captive consumption in our plant  and remaining electricity is sold to Madhya Pradesh Electricity Board. We see ecological power generation as the sunrise  industry of tomorrow and have positioned ourselves to save the nature and to reap the reward for our stakeholders.  With our strong focus on core business activities and our competitive position, better performance is expected in the years to come.

E. RISK AND CONCERNS

The major risks and concerns attributed to the performance of the Company are:

a. The Company is exposed to risks from market fluctuation of foreign exchange. Hence the erratic movement in foreign exchange rates and international prices of dairy products may influence the performance of the Company. Change in duty structure may affect adversely.

b. Increase in input costs, change in tax structure, change in interest rates, changes in govt. policies/ laws of land, development and stability of Indian economy against the negative external and internal forces may also impact the overall performance of the Company.

c. Profitability may be affected on account of competition from existing and prospective manufacturers of the Company's  products.

d. Dairy business basically based on monsoon. Unfavorable monsoon may affect the milk availability and Company may not get milk up to installed capacity and demand.

F. INTERNAL CONTROL AND THEIR ADEQUACY

Your Company has a good and effective internal control system for its various units in respect of efficiency of operations, financial reporting, proper recording and safeguarding of assets, compliance with applicable laws and regulations etc.

Pursuant to Section 134 of the Companies Act, 2013, the Board, through the Operating Management has laid down Internal Financial Controls and procedures to be followed by the Company. The adequacy of the same has been reported by the statutory  auditors of your Company in their report.

H. INFORMATION TECHNOLOGY

SAP has been implemented in all plants, depots, regional offices and head office of the Company enabling better supply chain, debtors control at operational level and access to consolidated data of the Company since the system is integrated. Among other benefits, SAP will provide real-time data, support in strategy formulations, lead to adoption of uniform and transparent business practices, render cost optimization and value enhancement

I. MATERIAL DEVELOPMENT IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT

Your Company considers the quality of its human resources to be most important asset and constantly endeavors to attract and recruit best possible talent. The number of people employed during the year was 399.  The industrial relations of the Company continue to remain harmonious and cordial with focus on improving productivity and  quality.

J. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Company's objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results might differ materially from those either exbrssed or implied.