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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 OAML. Statement in this Management Discussion and Analysis of financial condition and Results 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. Forwarding looking statements are based on certain assumptions and expectations of future events. Oswal Agro Mills has been at the forefront of adopting world class operational practices and promoting responsible infrastructure development in India.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forward-looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those in the statement. The financial statements are prepared under historical cost conversion on accrual basis of accounting and in accordance with Generally Accepted Accounting Principles (GAAP) in India.

The following 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.

During the year company was mainly engaged in investment activities and has earned income from interest only and no activities in Real State Sector were undertaken by the company. The year under review was a challenging year.
Segmentwise Performance
During the year-ended 31st March 2014 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. 2.33 Notes on Accounts, forming part of the Annual Report.
The Company has a Wholly Owned Subsidiary company named ‘Oswal Overseas Ltd.,in UAE for pursuing various international projects
Development in Human Resources And Industrial Relations
The Company firmly believes that its greatest strength lies in the quality of its people and that its “people philosophy” gives it a competitive edge. The Company believes that the human resources are vital in giving the Company a competitive edge in the current business environment. The Company philosophy is to provide congenial work environment, performance oriented work culture, knowledge acquisition/ dissemination, creativity and responsibility. The relation with employees remains cordial throughout the year. The relation with employees remained cordial throughout the year.
Internal Control Systems And Their Adequacy
The company has an effective Internal Control System which duly commensurate with its size and nature of business. The system fully provides and ensures that all he trasactions are properly authorized, recorded and reported correctly. The Management continuously reviews the system to carry out out various operations of the company transparently, effectively and efficiently with due protection for the Company’s Assets. The system also ensures due compliance with all applicable laws of the acts and statutory regulations as applicable to the Company from time to time.
Corporate Social Responsibility
Before the commencement of Corporate Social Responsibility (CSR), being a part of Companies Act, the Company is already investing the good amount in the welfare or development of society from the long time. Over the years, the company management are expanding the huge amount in social development and paying attention to the needs of various charitable institutions, who are involved in the welfare of society in India & Abroad. The company has continuously contributed funds to hospital/educational development programmes and actively helped in establishing Schools, Hospitals etc. The Company is also running a senior secondary school, a hospital having treatment of various diseases, specifically of cancer .
CSR and Sustainability is a company commitment to its stakeholders to conduct business in an economically, socially and environmentally sustainable manner that is transparent and ethical.
Risks & Concerns
The company is exposed to specific risks that are particulars to its businesses and the environment with which it operates including inter alia material risk, competition risk, interest rate volatility, human resources risk, execution risk and any significant downtown in the economic cycle. It is the endeavor of the management that the profitability of the Company is insulated to the extend possible from all the above risks by taking appropriate steps for mitigating the risks in a proper manner.
Opportunities And Outlook
The company is exploring the possibilities of undertaking some real estate projects, the outlook for which seems to be quite encouraging.
Risk Management
The Board takes responsibility for the risk 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 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. The Audit Committee reviews the Audit reports covering operational, financial and other business risk areas.
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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