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Management Discussion And Analaysis


The following Management Discussion and Analysis (MD&A) is intended to help the reader to understand the results of operation financial condition of the Company, Industry, Trade and Commerce. Statement in this Management Discussion and Analysis of operations of the company describing the company’s objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. The statements stated herein are based on certain assumptions and expectations of future events.

Based upon the current scenario of the economic development in the country and the level of uncertainty factors therein, the Company cannot guarantee these assumptions and expectations to be accurate and achieved. The Company assumes no responsibility to publicly amend, modify or revise forward-looking statements, based on any subsequent developments, information or events. Actual results may differ materially from those in the statement.

The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, so that the financial statements reflect in a true and fair manner, the form and substance of transactions, and reasonably present our state of affairs, profits and cash flows for the year. The long-term prospects for the economy appear optimistic.

The discussions on our financial condition and result of operations should be read together with our audited consolidated financial statements and notes to these statements included in the Annual Report. MD & A is provided as a supplement to, and should be read in conjunction with, our financial statements and the accompanying Notes to Financial Statements.

Financial Year 2017-18 was a good year for Oswal Agro Mills Limited. We achieved or growth towards and increased overall turnover of the company. The Company always adhere to achieve best in the industry and try to optimize the cost and its efficiency level which translating into profit margins. Here’s the performance highlights of the Company.
  • Revenue strengthened 44.29 % from INR 155,50,01,000/- in 2016-17 to INR 22.36,65,000/- in 2017-18.
  • Profit before exceptional items & tax grew 1.97% from INR 155,001.00 thousand in 2016-17 to INR 98,910.07 thousand in 2017-18.
  • As compared to previous the PAT is positive i.e. INR(82,036.01) thousand in 2016-17 to INR 128,857.92 thousand in 2017-18.
  • EPS improved from INR -0.61 per share in 2016-17 to INR 0.96 per share in 2017-18.
The Company is also continuing the business of investments and the future outlook looks bright.
Segmentwise Performance
During the year ended 31st March 2018, the company was operating under the business of Real Estate and Investing activities and Trading as separate business segments. Details of segment wise revenue, results and capital employed are given in Note No. 39 of Notes of Accounts, forming part of the Annual Report.
The subsidiary company - namely M/s 'Oswal Overseas Ltd.' at UAE has been liquidated w.e.f. 28th February 2018.
The Company has one associate company namely M/s Oswal Greentech Ltd.
Development in Human Resources And Industrial Relations
The relation with employees remains cordial throughout the year.
Internal Control Systems And Their Adequacy
We have implemented an internal control framework to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and transactions are authorized, recorded and reported correctly. The framework includes internal controls over financial reporting, which ensures the integrity of financial statements of the company and eliminates the possibility of frauds.

The Company has instituted adequate internal control procedure(s) commensurate with the nature of its business and the size of its operations for the smooth conduct of its business. Internal audit is conducted continually, at all locations and covers the key areas of operations. It is an independent, objective and assurance function, responsible for evaluating and improving the control and governance processes. The Internal Auditors do not have any adverse comments on the internal control systems of the Company.
Risks and threats are imminent part of any business. The Company has adequate and appropriate systems in place to ensure that the impacts of these risks are minimized, and interest of the company are protected. Also, based on the operations of the Company, risks are identified, and steps are taken to mitigate them.

Your company at present is exposed to the normal industry risk factor of volatility in Real estate sector and the environment with which it operates including inter alia material risk, human resources risk, execution risk and any significant downtown in the economic cycle.
Opportunities And Outlook
The implementation of the Goods and Service Tax will be transformative for the Indian economy and we expect this to result in a marked boost to consumption and GDP growth.

The Company is exploring the possibilities of undertaking some real estate projects, the outlook for which seems to be quite encouraging. The Company is cautiously optimistic in its outlook for the year 2017-18.
Risk Management
The Company recognizes the importance of risk management and has invested in appropriate processes, people and management structure. Towards this end, the Board of Directors had reviewed the Risk Management Policy towards implementation of its risk management strategy and to review the systems used to manage and identify risks faced by your Company. The risk function is supervised by the Audit Committee of the Board. Audit Committee reviews the asset quality on a quarterly basis.

It is the endeavor of the management that the profitability of the company is insulated to the extent possible from all the risks by taking appropriate steps for mitigating the risks in a proper manner. The Board takes the responsibility for the management in the organization. Results of the risk assessments and residual risks are presented to the senior management and the Audit Committee members. The management is accountable for the integration of the risk management practices into the day-to-day activities. The scope of the Audit Committee includes review of the Company's financial and risk management policies.
Cautionary Statement
Statements in this report on Management Discussion and Analysis describing the Company's Objectives, projections, estimates, expectations or predictions may be "forward looking" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.
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