MANAGEMENT DISCUSSION AND DEVELOPMENT:

1. Industry Structure and Development:

The Company is largely dependent on the performance of core electrical business, the year was still not favourable for the manufacturing in general. The power sector in India continue to be victimize by structural issues like fuel shortages, poor financial health of State run power distribution companies and numerous regulatory issues. The new Government that came to power in May 2014 has taken some steps to address these challenges, but the situation is far from satisfactory. The demand for power in India continue to grow with increasing industrialization and faster urbanisation. Company is exploring opportunities for new products and also in the process of changing technology as per the current market requirement in cost effective manner. Apart from manufacturing the other segment mainly real estate services is also not picked up and continue to be slow, with the inflation seems to be in control, further rate cut on loan is inevitable for further boost in the sector.

2. Opportunities & Threats:

Fiscal 2015 was a year of recovery and positive changes for the Indian economy. The real estate sector, however, continued to face challenges. Tight fiscal spend control by Government, combined with heightened real interest rates had an adverse impact on the savings ability of the population resulting in a continued slowdown in demand for housing and real estate for the second straight year. During the financial year, the slowdown in the real estate sector was more prominent in the Western markets where company has its brsence . The performance of the real estate sector on the whole has been subdued. Inflation, high real interest rates, high risk weightage for loans to companies operating in the sector, non-availability of right priced working capital fund, employment growth, time lag during the approval process while launching a project, higher statutory levies, non-availability of skilled manpower, uncertainty of title continue to remain as challenges being faced by the Sector as a whole. As long as the government's action plans focus on a progressive economy, we believe that the industry operations will revive in the near future. We hope that the government will focus on policies that will reduce the burden on real estate builders by accelerating the approval process, reducing the interest costs and taxes levied and controlling the inflationary brssure on inputs. Several factors still continue to act as strong drivers for long term sustainable real estate demand like latent demand for homes, continued economic growth, trend towards nuclear families, young working population, rising disposable incomes, increased urbanisation, inherent desire to own a home etc.

3. Segment wise performance:

The Company is continuing it's efforts to explore new market in export as well as in domestic market by new technology adoption and also in the process of launching new products in the market according to current market trend specialy in new sector like telecommunication and It industries apart from existing brsence in power sector for its core manufacturing activities.

4. Risks, Concerns and Outlook:

Company is known to deliver products that meet to the highest benchmarks of quality. The Company is committed to maintain the same quality benchmark in future as well. The outlook for the company remains largely similar to FY 2014-2015.The Real Estate Industry continues to one of the most highly regulated sectors in India. It is also one of the highest tax paying sectors. The Sector is awaiting the enactment of The Real Estate (Regulation and Development) Bill, 2013. The new law is expected to bring in greater transparency and would be beneficial for the end customers. While transition to the new regime may be onerous for small and medium players, it should be fairly smooth and seamless for the company as our current practices are in line with the new requirements. Further, various operational parameters for implementation of the law have to be brscribed by respective state governments. As it is an evolving piece of legislation, the benefits from this regulation will be realised over a period of time The Company anticipates tax reforms especially the introduction of GST to rationalize the tax impact and avoid multiple taxation impact thereby providing relief to the end customers as well. As the Indian economy recovers its growth momentum, we remain positive about the markets in which we operate and maintain an optimistic outlook on a long term

5. Internal control system & its adequacy:

Company has adequate internal control system to optimise the use and protection of assets , facilitate accurate and timely compilation of financial statements and management reports and ensure compliance with statutory laws, regulations and Company policies . The Company also instituted budgetary control mechanisms pursuant to which the management regularly reviews actual performance with reference to budgets and forecast

6. Human resource and Industrial relations:

Employee relations throughout the year was satisfactory.

CAUTIONARY STATEMENT:

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