Executive Summary:

The company was established in 2004 by our promoters, including s. Balwant Singh, our
managing director, who is a first generation entrepreneur with approximately 9 years of
experience in the compounded cattle feed industry. The company provide best quality
products like edible oil, cattle feed etc. at competitive rates. The information about various
other factors of the company is also given: its objectives, mission vision, and qualitative
brands of products. It is responsible towards its consumers, society, employees, and
shareholders. Focus of our company while offering any product to the customer is health
with value. Over the years, the company have developed products that are not only healthy
but also relatively cheaper than the alternatives in the same segment. Its integrated plant is at
Jittwal Kalan. It is well established logistics and supply chain management system. Historical
aspect of Tara Health foods industries ltd. Are also given thereafter starts the main topic of
study working capital is main topic. It provides information about THFIL. It study & find
real application of aspect of industry.

The concept of working capital is very wide. Every business needs funds for our purposes for
its establishment & to carry out its day to day operations. Funds are also needed for short
term purposes of raw material, payment of wages, and other day to day expe

nses. Initial part of the project focuses on the objective of study, company’s history, swot
analysis of the company, its competitors etc. this part covers the overview of THFIL and its
various plants in Punjab, followed by history of plant, Jittwal, its products, work done for
betterments of society, swot etc. & description meaning of working capital. Objectives of
maintaining optimum working capital, its importance, need of working capital
 Introduction about Company:
The company was incorporated in 1977 and was acquired in 2004 by our promoters,
including, s. Balwant Singh, our managing director, who is a first generation entrepreneur
with approximately nine years of experience in the compounded cattle feed industry. They
are amongst few organized players of the oil and cattle feed industry in India, catering to the
needs of both human and animal nutrition through our products with a present capacity of
120 TPD of solvent extraction and 250 TPD of cattle feed manufacturing each at Punjab unit,
Jammu unit, Sitarganj unit, Hanumangarh unit.

The future will see us emerging as an even bigger players as they plan to set up 300 TPD of
refining capacity and 250 TPD of cattle feed manufacturing facilities at Bihar, Gujarat and
400 TPD of cattle feed at Punjab unit. Their group has been growing as an unexceptional rate
since 2004 due to the combined efforts of their promoters & the team.

S. Jaswant Singh, Chairman, ours in such history, a dream to capitalize the opportunity
presented in the rural heartland of India, aptly termed as the “Granary of India”. Serving the
growing needs of farmers of the “Cow- belt of India is a unique way by providing excellent
quality animal nutrition to the most productive livestock”, being fed into by conventional
methods and by a largely unorganized sector.

S. Balwant Singh, Managing Director,The future belongs to those who commit to quality and
trust! What we are today comes from our thoughts of yesterday. From our first cattle feed
plant a decade ago in a small village in Sangrur District, Punjab to today’s Tara health foods
limited with crores of revenue, producing tons of cattle feed and edible oil per day , we have
come a long way with longer path still ahead of us.

In the year 2011, THFL proposes to come out with an initial public offer (IPO) amounting to
Rs. 160 crore through the book building route. THFL plans to utilize the IPO proceeds
forexpansion of cattle feed and refinery business and set up a captive power plant.In the
starting years the company faced many problems like increase heat in the area of production.
But it control it through their developments & use new researchment.
 History of the company:

The company was incorporated on feb.28, 1977 as Angoora Wool Combers private limited,
with the objective of setting up wool combing unit. Subsequently, in the year 1986, the name
was changed to Ram Sahai wool combers private limited. In the year 2004, the present
management namely, Mr. Balwant Singh, Mr. Jaswant Singh, Mr. Mr. Kulwant Singh took
over the management of the company from Est. while promoters with a view to undertake the
cattle feed manufacturing activities in a corporate structure as against sealing up the existing
cattle feed activity being carried out in partnership firm manually, Tara feed factory (TFF)
since the year 2001 by them i.e. Mr. Balwant Singh, Mr.Jaswant Singh and Mr. Kulwant
Singh. The firm has been engaged in the manufacture of cattle feed at village Gajjan Majra,
Malerkotla, Punjab with a capacity of 20 tons per day (TPD). Having being able to create a
market for its products it was thought prudent by them to set up and thereafter scale up
operations in an organized set up which would enable them achieve economies of scale,
besides, increasing reach. In addition in the year 2004- 2005, a no. of incentives, subsidiaries,
schemes were offered by the government of Punjab to encourage the farmer fraternity to
diversify from agriculture to dairy farming. This began exploring the options of shifting to
dairy farming with gave an impetus to the demand for cattle feed. Given this background &
the cater to the demand likely to emerge our company set up facility at Jittwal Kalan,
Sangrur, Punjab for manufacture of cattle poultry feeds with an installed capacity of 250 tons
per day (TPD). The name of the company on taking over was changed to Tara feeds private
limited in sept.2004. Thereafter, in October 2005, the company was converted from a private
limited company to a public limited company and accordingly name was changed to Tara
feed limited. In April 2006, as a step towards achieving backward integration, we installed a
250 TPD solvent extraction plant. This solvent extraction plant ensured continuous supply of
raw material ( de- oiled rice bran) being key ingredient of compounded cattle/ poultry feed
formulation, besides, enabling us have better control over the quality of raw material. The
solvent plant became operational in November 2006. The crude oil produced in the solvent
extraction plant was initially marketed by them in the open mandis. Currently, the crude oil
so produced is a key raw material for their edible oil refinery to effectively cater to the cattle
breeding northern part of India, besides, reducing costs and availing of the tax concessions
being offered by the Uttaranchal government, in feb.2007. They set up a cattle/ poultry feed
manufacturing unit at Sitarganj, Uttaranchal with an installed capacity of 250 TPD. The said
plant an becoming operational is catering Marjory to the states of Utter Pradesh, Bihar and
Uttaranchal. Being in close proximity to the source of raw material and end users of their
products, this plant has helped them control their costs, including the transportation costs and
enable them penetrate further in the market and set a strong foothold for their selves. Besides
their manufacturing facilities have been design to undertake manufacture of poultry feed,
another synergistic produce addressing the same customer base. The manufacturing activity
for the same is carried out by the company based on orders received from their distributors,
dealers/ retailers. As a result of growing awareness among the masses towards one’s well
being the refined rice bran oil began gaining popularity over conventional refined oil as it
contained micro- nutrients like tocopherols and tocotrienols, which act as natural antioxidants
owing to these features it was increasingly being accepted the world over as a health oil and
is widely accepted in advanced countries like Japan and Usa. To tap this emerging market of
healthy oil and also as step towards achieving forward integration, they set up a refinery unit
with an installed refining capacity at their existing facilities in the year 2008. This plant was
installed with the state of art technology. It offered us a foothold not only in the indigenous
market but offered also afforded us an opportunity to explore the options to export. Due the
higher purchasing power there has been an ever growing culture amongst a high number of
young people of consuming unhealthy junk food. This coupled with diminishing habit of
exercising and unhealthy diet in general has created an alarming health situation in the
country. In the growing concern about the general wealth and wellness, our company under
the stewardship of our top management sensed an opportunity to explore into developing and
promoting new generation health oils. As company they were consistently on the look out for
opportunities and carried out strategic research in this subject. Besides, rice bran oil, olive oil
was amongst the best options which offered ump team advantages to the growing health.
Conscious population and made a good business opportunity. Given the renewed focused on
olive oil we decided to rename the company to Tara olive India limited, effective from
june11, 2008. We set up a refinery unit with an installed refining capacity of 120TPD for
refining of edible oil at our existing facilities in the year 2008.

Their name was again changed to m/s. Tara health foods limited effective nov.24, 2008.
Their facility at village Jittwal Kalan, Malerkotla is an ISO 9001:2000 certified facility.
Besides, we have been assessed by das certification limited. Hampshire, U.K., and found to
meet the requirement of the codex based HACEP, safety management system for
manufacture of blended oil.

Objectives of the Company:

1. Setting up a new edible oil refining plant at existing location.

2. Expansion of cattle feed plant at existing location.

3. General corporate purposes.

4. Achieve the benefit of listing on the stock exchanges

5. To manufacture, process, import, export, distribute or otherwise deal in all kind and
descriptions of poultry, cattle and animal feeds.

6. To carry on in India or abroad the business as manufacturers, buyers, sellers, traders,

dealers, importers, exporters and distributors of all kinds and description of health
foods, health supplements, oils, food grains and food product.

Company Structure:

Tara health foods ltd, Is north India’s one of the largest human and animal nutrition
company. It is present in both rural and urban base of the country. Encouraged and inspired
managers with speed adequacy in decision making and flexibility marks the company’s
growth and sustainability in operations across the nation.

Board of directors:

An optimum mix of professionalism, experience, and knowledge, intellectual represents their

board of directors. The total strength of the board of directors of the company is six directors,
comprising chairman, two executive directors, and 3 non executive independent directors.
S. JASWANT SINGH, 52 years as the chairman of the company. He completed
bechlors’degree and masters ‘degree in history in 1989 and 1991, respectively from Punjabi
Uni., Patiala. Mr. Singh started pioneer public sen. Sec. School in 1999. He has also started
Tara Vivek College in 2004.

Mr. BALWANT SINGH, 48 years as the managing director of their company. He completed
a bechlors’degree in arts from Punjabi Uni., Patiala in 1989. he along with the other
promoters set up a dairy farm in the year 1997 in Gajjan Majra and subsequently, set up Tara
Gram Udyog Samiti (Regd.) to manufacture cattle feed in 1988. In the year 2001, he along
with the other promoters started Tara feed factory, a partnership firm, at Gajjan Majra,
Malerkotla to manufacture cattle feed. He has approximately 15 years of experience in the
cattle feed business.

Mr. TEJINDER SINGH, 34 years, is the whole time director of their company. He completed
his secondary school education in the year 1999 and joined their company in aug.2004. He
has of 10 years experience in the business. He looks after general administration and the
infrastructure and logistics division of their company. He has been on the board since
aug.2004 and was appointed as the whole time director for a period of 5 years with effect
from dec.1, 2008.

DR. JASPINDER SINGH KOLAR, 70 years, is an independent director of their company.

He completed bechlors’degree in science (agriculture and animal husbandry) from the
college of agriculture, Ludhiana and masters’ degree in science of Punjab agriculture Uni. In
1966 and 1968 respectively. He completed doctorate in philosophy from Punjab agriculture
Uni. IN 1973. He was awarded Punjab Sarkar Parman Patra in 1991 and Indian society of
weed science medal for 200-2001 for his contribution in the field of weed science. He has
work experience of approximately 39 years.

Mr. PARSHOTAM BANSAL, 59 years, is an independent director of their company. He is a

chartered accountant and member of institute of chartered accountants of India. H completed
his bechlors’degree in commerce from Punjabi Uni., Patiala in 1975. He has over 34 years of
experience in business strategy and tax planning. He was appointed as an independent
director on sept.25, 2010.
Management Committee:

The day to day and the regular affairs of the company is vested with the management
committee which takes care of all the normal activities, supervising and controlling functions
of the company.

Key Management:

They are an organisation of talented, goal driven professionals guided by the vision of
Chairman S. Jaswant Singh, the promoters S. Balwant Singh and S. Kulwant Singh.

Our Key Management:

MR. RAJ SKUMAR JINDAL is the chief financial officer of our company. He joined
company as a chief financial officer in Sept., 2010.

MR. MANMOHAN SINGH is senior vice president (technical and production) of our
company. He has work experience of 36 years. He joined our company in aug. 2007.

MR. KAMALJEET PAUL GAUR is the senior vice president (commercial) in charge of
purchases and procurement of cattle feed, refining unit and solvent extraction plant. He
joined Business Company in July 2007.

MR. AVTAR SINGH ROTAL is the senior vice president (marketing and business
development cattle feed) of our company. He has a work experience of 16 years. He joined
Tara Feed Factory in oct.2005.

MS. ASHA PASRICHA is our accounts senior manager, in June 2006; she incorporated a
sole proprietor firm by the name of Asha Gulati and associates. She joined our company in
sept.2010 as an accounts senior manager.

MS. POOJA DHEER is our company secretary and looks after the secretarial and legal
matters of the company. She was admitted as an associate number of the institute of company
secretaries of India in 1st April 2012. She worked with Harsh Goyal and associates from 2010
to 2012. She joined our company in feb.2012 as company secretary and compliance officer.
Company’s Mission and Vision

Company’s Vision:

1) We will strive to be among the best in the business.

2) We will offer best quality and value to our customers.

We will provide products that are safe, economically, healthy, hygienic, nutritional and
environmentally sound.

We will strive to meet the highest standard of integrity.

Company’s Mission:

We believe in contributing our commitment to excellence in every aspect of production and

distribution of healthy products. We aspire to discover newer, bigger and brighter horizons
for ourselves, our partners and above all for our consumers. Focus of our company while
offering any product to the customer is health with value.

Values:

We shall continue to strive for the following values:

1) Customer Orientation: Providing process & services of the highest standards to the
customers.

2) Quality First: Practicing process & orientation & excellence in all our actions to create
new benchmarks.

3) Commitment: Dedicated to our responsibilities with appropriate participation of all

concerned to achieve the desired objectives.

4) Innovation: Creating, implementing & introducing new ideas to continuously realize

improvements.

5) Positive outlook: Have a positive frame of mind and energy in our outlook towards life.
We manufacture and market our products under different brand names. This product
segmentation has been done on the basis of its qualitative and quantitative features and with a
view to ensure its reach to the broad class of target consumers.

Our products can be divided into two segments namely

1. Oil

2. Animal feed / Cattle feed

Oil:

We are amongst the few players in organized segment in India producing blended oil (olive
oil and rice bran oil). We are presently concentrating on domestic market. Our offering in oil
can be divided into two parts:

a) Pure refined oil

b) Blended refined oil

Pure Refined Oil

In the pure refined oil segment we are currently offering

i. Rice Bran Oil

ii. Cottonseed Oil

iii. Olive Oil

Blended Refined Oil

We have been constantly engaged on developing new oil by blending oils which would not
only be healthy but also lower in cost than olive oil and still have similar characteristics
(refined oil is tasteless) in terms of nutrition and effect. During this quest we discovered a
blend with high nutritious value and are economical. We are currently producing and
marketing this product by the name Zaitoon Tara and our promoter have filed for a patenting
the process for this product too with the Controller General of Patents, Designs & Trade
Marks. This product is currently being marketed Punjab, New Delhi, and Himachal Pradesh
etc through marketing channels.

Our Range of Brands in Edible Oil is:

Our current product portfolio in edible oils covers premium and low cost edible oils. “TARA
GOLD” AND “TARA LITE” are refined rice bran oils whereas “TARA KOTTON” is
refined cottonseed oil. O”PURE” is produced by processing and refining of imported olive
oil. In our blended oils category, we have a brand by the name of “ZAITOON TARA” that is
a blend of refined rice bran oil and refined olive oil.

Zaitoon Tara – is a unique blend of Refined Rice bran oil Refined olive oil produced by
using machinery manufactured on the Patented design of German company for Winterization
resulting in virtually 0% Trans- fatty acids. It is superior to traditional cooking oils and can
be considered nutraceutical (food as medicine) oil. It has an ideal combination of fatty acids
& is anti- diabetic & anti- obesity.

Health Benefits of Zaitoon Tara Oil:

Zaitoon Tara prevents cancer.

It protects from depression and improves functions of liver.

Tara Lite – is refined rice bran oil produced from semi-edible grade rice bran and is
good for health as it is balanced and versatile oil. It contains natural antioxidants, vitamin E,
and micronutrients like squalling and cinnamic acid. Owing its nutracitical characteristics its
helps in balancing the level of cholesterol in the blood.

Health benefits of Rice Bran Oil: - It helps lowering cholesterol and fights certain kinds of
diseases & thus, enhances the immune system.

Tara O’Pure Cooking Oil- o’pure 100% olive oil is made from the finest olive the

Mediterranean region. It is pale yellow colour and odourless. This product contains a high
quantity of monounsaturated fatty acids and may be used in cooking, frying and dressing for
Indian cuisine as well as western cuisine.

Health benefits of Tara o’pure cooking oil: -

It prevent from heart disease, oxidant stress, cancer, diabetes, blood pressure.

Animal feed / cattle feed: -

We forayed into manufacture of animal feed since our inception with our branded products in
an otherwise unorganized industry. In this segment we have two range of products, which are

1. Cattle Feed
2. Poultry Feed

Cattle Feed- We entered into this industry with our branded products that were developed
by experienced technicians in collaboration with our promoters who are veterans of dairy
industry themselves. Our ranges of products have been formulated on the basis of qualitative
characteristics keeping view the target end users. This has helped us in positioning our
different products for different customer segments

1) Tara Feed: This was our first cattle feed product launched in October, 2005.

It possesses by-pass protein and by- pass fat to meet average requirement of all group and all
ages of animal. Its quality specifications are as per BIS Type - 1 standard. It is suitable for all
weather and all types of animals.

Features of cattle feed: -

1) Rich in protein, highly effective, quality approved, beneficial for cattle’s health, nominal
rates, and rich in minerals.

Raath No.1: It is possess by-pass protein and by- pass fat and is rich in

Minerals and vitamins and provides high energy. Its quality specifications are as per BIS
Type - 1 standard.

3) Raath No.2: it possess minerals, vitamins in addition to by- pass protein and

By- pass fat. The protein and fat content is slightly lower than other products and is targeted
at medium yielding cattle. With a mission to offer best quality feed for the cattle. We are
engaged in offering a huge gamut of RAATH SPECIAL cattle feed that is rich in by- pass
fat, vitamins, minerals, by- pass protein and others, which is beneficial for animal’s growth.

4) Raath Gold: It is our premium product and is rich in by-pass protein and

By-pass fat and provides higher energy. It is best suited for an early lactation of higher milk
yielding animals. The by-pass protein helps in getting a higher milk and fat yield. Its quality
specifications are as per BIS Type – 1 standard. It is being used to feed high yielding cattle
and is being sold directly to big dairy farmers.

Raath Panjiri: This product has been developed to cater the need of

Farmers who use medium priced cattle feed and are suitable for low milk yielding animals. It
complies with BIS Type - 2 quality specifications.

6) Tara Feed Chambal: our organization counted as a leading manufacturers and

Tara feed, which is specially processed for the health benefits of cattle by keeping in mind
the cattle’s requirements and their health care, they are producing these Tara feed. These are
beneficial for cattle and improve their efficiency. Moreover, these Tara feeds contains by-
pass fat and protein that helps in fulfilling the average nutritional requirements of cattle.
They are offering these Tara feeds in different specifications and at most feasible rates in
market.

Our Units:

We are presently having our four units in major states of India like Punjab, Uttrakhand,
Jammu and Hanumangarh.

Punjab unit

Jittwal Kalan Unit- the. Malerkotla, Distt Sangrur, Punjab spread over 27 acres of land.

Cattle feed plant: We have a facility of 250 TPD of cattle feed at village Jittwal Kalan,
Malerkotla plant.

Solvent extraction plant: We have solvent extraction plant operating at production capacity of
250 TONS per day.

Refinery: 120 TPD of refining capacity at this plant.

Uttrakhand unit: Sitarganj Unit- PLOT A- 2, E.S.I.P, US NAGAR, Uttaranchal operating at

the production capacity of 250 TONS per day.
Jammu unit: We have a facility of 250 TPD of cattle feed at JAMMU plant.

Hanumangarh unit: We have a facility of 250 TPD of cattle feed at Hanumangarh plant.

Our projects: -

For the better utilisation of the available resources and to enhance the business activities of
the company, TARA group is getting into many projects and capacity enhancement
initiatives.

Soap plant at Jittwal plant

The company is now going to produce soap for rural households. The soap manufactured by
the premium raw- material, better technology and quality measures will certainly hit the rural
markets.

Tara Uttam seedsFor the welfare of farmers and better seed of paddy, the company has
initiated TARA UTTAM SEEDS. The seed type produced are: PUSA- 44 foundation, PUSA-
44 certified P.R- 114- foundation, PUSA- 1509- BASMATI T/L and PUSA- 1121-
BASMATI- foundation.

New Indian financial services limitedThe company has planned to provide short term and
long term loans in various sectors which will include personal loans, corporate loans,
mortgage loans etc.

Capacity of company: -

Capacity summary:

Total compounded cattle feed capacity- 1250 TPD

Solvent extraction capacity- 250 TPD

Refinery capacity- 120 TPD

Proposed capacity:

At JITTWAL KALAN, PUNJAB: projected 400 TPD of cattle feed manufacturing facility.
At GUJARAT: projected 250 TPD of cattle feed manufacturing facility.

At BIHAR: projected 250 TPD of cattle feed manufacturing facility.

Company profile: -

Business type: - exporter/ manufacturer/ supplier

Year established: - 2004

Number of employees: - 179

Bankers: - state bank of India

Standard certification: - ISO 9000

No. Of employees: - 179 permanent employees, (39 employees in the administrative, sales
and maintenance team, 60 employees in the security and transport team, 59 employees in the
production team, another made packaging).

PRODUCTS exporters, suppliers and manufacturers: - animal nutrition, cattle feed, feed
supplements, mineral mixtures, edible oils, rice bran oil, blend of rice bran oil, refined olive
oil, premium rice.

Tara Health Foods Limited (THFL) was formed when the Gurmukh Singh family took over
the management of an existing unit named Angoora Wool Combers (P) Limited in 2004. The
Singh family ventured into the cattle feed business in 1999 with the setting up of a small
manufacturing unit at Sangrur in the state of Punjab. In 2006 the promoters ventured into the
edible oil business. THFL is engaged in the manufacture of a variety of cattle feeds and
edible oils. The company’s operations are based at Sangrur in the state of Punjab and at
Sitarganj in the state of Uttaranchal. Tara Heart care Products Private Limited, a Group
Company, holds 9.23% of the shareholding of THFL while the remainder is held within the
Singh family.

Distribution networks: -
Cattle/poultry feed is sold through a network of dealers/retailers established in the states of
Punjab, Haryana, Uttar Pradesh (UP), Uttaranchal, Bihar and Rajasthan. Our marketing
personnel visit the villages to educate the farmers on the importance of wellness of the cattle
and the various benefits of a balanced diet. This has helped us to establish a close
connectivity with the farmers and helped increase our customer base.

Distribution Channels:

We market our products through Distributors, Marketing Agents and Dealers/ Retailers. The
structure followed by us in various states is as below:

Distributors:

These are single party exclusively appointed fore pre-defined territory. These distributors
work with our staff and are restricted from stock and sale of directly competing brands,
depending on the prevalent market practices. However, the distributors pricing towards the
dealers and retailers is not decided by us.

Dealers/ Retailers:

The dealers/ retailers are part of the open trade network. These people typically stock all
brands. Our Company freely appoints dealers in the geographical area.

We sell our poultry feed through our Sitarganj facilities and the marketing set up for cattle
feed is used for to caters to the poultry feed market.

Training and Awareness Programs for Edible Oil: -

We conduct extensive training and awareness programs to create awareness for our edible oil
products amongst the consumers. Our focus remains on educating people about the bad
effects on the health and wellness caused by the high intake of unhealthy oil and how healthy
edible oil product’s regular use would affect the heart and health in a positive way.

Health and Safety of Workmen:

We have policy in place for health and safety for our workmen which has following salient
features:

1) Compliance with relevant Safety and Statutory Regulations and Rules both in letter and in
spirit.

2) Maintenance of safe, healthy and congenial working atmosphere by constant monitoring

of environment around the work place.

3) Ensuring cleanliness of work place in compliance with the relevant regulations.

4) Providing work force with ongoing knowledge/instructions on work procedures and safety
precautions.

5) Conducting classes on safety, first aid training, fire fighting, mock drills, safety audit, and
risk analysis studies etc.

6) Ongoing assessment on the status of safety, health and environment at the work place and
take appropriate measures to improve the same.

7) Obligation and responsibility on every employee to perform the tasks ensuring complete
safety.

Shareholding pattern: -

Top ten shareholders:-

Sr. No Name of Partner No of Share Shareholding

Held (percentage)

1 MR. BALWANT 5,000 2.00

SINGH

2 MR. JASWANT 5,000 2.00

SINGH
3 MR. KULWANT 5,000 2.00
SINGH

4 MR. TEJINDER 5,000 2.00

SINGH

5 MS. RAJVIR 5,000 2.00

KAUR

6 MS. PARMINDER 5,000 2.00

KAUR

7 MS. RANJIT 5,000 2.00

KAUR

8 MR. GURMUKH 67,500 27.00

SINGH

9 MR. GURMUKH 67,500 27.00

SINGH- HUF

10 MS. RAJINDER 80,000 32.00

KAUR

TOTAL 250,000 100.000

Employees/ payments: -

Employees: Our Company has 135 full-time employees as on August 31, 2009. And 71
employees on contract basis.

Disclosures regarding employee stock option scheme / employee stock purchase scheme of
the issuer company:

Our Company has not offered any stock option scheme / employees stock purchase scheme
of the Company under the Employee Stock Option Scheme and Employee Stock Purchase
Scheme. Apart from salary and usual perquisites, and the employee provident fund scheme
no other benefits have been offered to the officers of the Company.

Payment or benefits to officers of the company: -Except the remuneration, salary,

and other benefits as per the terms of appointment, there are no specific additional payments
or benefits offered to the officers of the Company.

Factors Affecting Our Results of Operations:-

The factors mentioned below along with number of future developments may affect our
results of operations, financial conditions and cash flow in future periods.

1) Competition from existing players;

2) Growing expenditure on branding costs;

3) Capital expenditure, including capacity expansion;

4) Working capital arrangements;

5) Growth of unorganized sector and threat from national/regional players;

Recent developments: -

The government has in the recent past reduced import duty on olive oil to 7.5% from the
existing 45%; but the prices of olive oil has remained stable owing to a continuous rise in
exchange rates. Olive oil prices in the domestic market ranges from Rs 400 to Rs 900 for
different grades. India is taking to the olive plantation for the first time in the form of a pilot
project in Rajasthan in collaboration with an Israeli firm ‘Indolibe Enterprises’ and Pune-
based ‘Plassron Industries’ for cultivation in over 250 hectares. If the project becomes
successful, the Rajasthan government is planning to extend the cultivation to about 25
million hectares. Punjab and Himachal Pradesh have also announced similar projects with
‘Indolibe Enterprises’ and Spain-based ‘Sojivit’, respectively, for cultivation in over 300
hectares.
During FY2008 and FY2009 the cattle feed industry witnessed an abnormal and steep
increase in the price of almost all the ingredients, which was never experienced in the past.
The price of several ingredients has almost doubled during the last two years. Consequently
the poultry and cattle feed industry through out India was seriously affected. The major
reasons behind the increase in price of ingredients are as follows:

1) Failure of the crops mainly due to drought

2) Forward commodity trading

3) Grains being used for manufacture of bio diesel and ethanol

4) Governments’ stubbornness in holding the retail price of milk at uneconomical levels for
farmers

5) Sudden spurt in crude oil prices coupled with double digit inflation during June, 2008. The
industry has taken the following critical measures to avoid losses arising out of the price rise
of ingredients

6) Smart purchase policy

7) Selling price adjustment

8) Cost optimization

Tara health food website

REGISTERED OFFICE LUDHIANA

Email: - info@tarahealthfoods.com

Website: www.tarahealthfoods.com

CORPORATE OFFICE PUNJAB

Email: - info@tarahealthfoods.com

tarafeed@sifly.com
REGIONAL OFFICE- HANUMANGARH

Email: - tarahealth010@gmail.com

REGIONAL OFFICE- JAMMU

Email: - tarajammu@gmil.com

HEAD OFFICE (SALES)- DELHI

Email: - taradelhi@tarahealthfoods.com

Competitor’s analysis of company: -

Competition:

Our results of operations are affected by competition in compounded cattle feed and edible
oil production industry. Our competition depends on the products being offered by various
companies in the organized segment besides several other factors such as quality, price and
capacity to deliver. Competition emerges not only from the organized sector but also from
the unorganized sector and from both small and big players. In the compounded cattle feed
competition from Milk fed, Mark fed and Godrej Agro vet. In relation to our edible oil
business, we face competition from established regional and national players in the retail and
bulk customers segments. In the retail segment, we face competition from national players
such as, Adani Wilmer Limited, Ruchi Soya Indus Limited and Cargill India Limited and
regional players, such as, A.P. Solvex Limited, Amrit Banaspati Limited and Bhatinda
Chemicals Limited. In the bulk segment, we face competition from A.G. Fats and KC Oils.