MANAGEMENT DISCUSSION AND ANALYSIS

In a rapidly changing business environment, the only way forward is to try to anticipate trends and shape strategies accordingly to create long-term value. Our approach at HSIL is to engage with potential customers, listen to their perspectives and understand their aspirations with sensitivity. That provides us the insight to manufacture products, which can address the evolving needs and concerns of a wide cross-section of consumers.

India's youth bulge, economic development, attention on infrastructure creation and social prosperity also encourage us to think innovatively and cater to growing customer aspirations. We closely follow emerging trends across geographies to  bring a 'refreshing experience' in people's life. We are equipped to move forward in step with a transformational India.

GLOBAL ECONOMY

The global economy witnessed marginal growth during 2014-15 and the pattern of growth was uneven across geographies with consequent impact on currencies. While the US economy performed relatively well, Eurozone was in deep trouble. Also, the spectre of deflation haunted Japan, China saw its growth slowing down. Another major event to have dominated the economic landscape during the year was the steep decline in global crude prices and a general softening in commodity prices

India passes China to become the fastest growing economy

Supported by a sharp rise in manufacturing, the Indian economy grew 7.5% in the January-March quarter, 2015, putting it ahead of China as the world's fastest growing large economy. China recorded 7% economic growth during the same  period. (Source: Hindu Business Line)

INDIAN ECONOMY

The Indian economy is definitely in better shape, aided by policy initiatives of the new government. More reforms across all sectors are awaited, but the government has managed to garner some success in bringing the economy back on track, fuelling confidence levels of consumers and investors.

The new government is focusing on providing affordable housing. The existing gap is a huge demand to fulfil. The other two crucial initiatives - 'Clean India' campaign or 'Swachh Bharat', which aims to create facilities towards eradicating the problem of open defecation by 2019 and the 'Made in India' Campaign - bring all round hope and optimism.

India is also expected to emerge as the world's 3rd largest construction market by 2020 with a projected 50% of India's population, expected to live in cities in the near future. Little doubt, the key to India's growth will be its growing middle class population across urban, semi-urban and rural areas. And, the country's young aspirational population with high disposable income will continue to be the principal growth driver of the economy.

BUILDING PRODUCTS INDUSTRY

Sanitaryware and bathroom fittings

India's sanitaryware market has been following an upward trajectory over the last few years.The country has emerged as a major bath and sanitaryware market in theAsia Pacific.India's sanitaryware market consists of organised and unorganised players, with organised players holding the majority share in terms of value. However, in terms of volume unorganised players are brdominant.

Sanitaryware market

India's sanitaryware industry grew at a compound annual growth rate (CAGR) of 18.1% in 2010-14. The industry size is estimated to be around Rs. 35 billion in 2015 and is expected to grow at a CAGR of 12% till 2017. The organised market  will grow at a higher rate of 14-15% owing to the increasing number of foreign players, rising urbanisation and growing demand for brmium range of products

Bath fittings - faucet market

India's faucet market grew at a CAGR  of 16.7% in 2010-14. The industry size is  estimated to be around Rs. 60 billion in 2015 and is expected to grow at a CAGR  of 15% till 2017 (Source: JM Financial).

Demand drivers

Housing shortage

The government aims to develop about 11 crores of housing units, including developments to counter the current shortage of about 6 crore units. Besides, the government plans to provide housing to all Indian citizens by 2022. The housing need is almost equally distributed in urban and rural areas in the range of 5-6 crore units and primarily consists of affordable houses be spent over the next five years in building the proposed 100 smart cities in India.

With new residential and commercial establishments expected to come up, the demand for sanitaryware will also strengthen. Additionally, builders too have started to understand the importance of having bathrooms with a brmium look, as demand for such units is rising. Indian customers are gradually purchasing more brmium and technology-driven products due to their growing earnings and propensity to spend. The returns on high-end flats are better to real-estate players.

Demand for brmium products

More people in India are seeing sanitaryware products, rather bathroom products as a medium through which they can showcase their wealth and brmium lifestyle. This has caused the sanitaryware market to gradually incline towards creating a brmium, niche segment within their offerings. This shift from the mid-segment to the brmium sub-segment has been largely due to the result of higher spending power and change in perceptions of bath products as lifestyle products.

Urbanisation and rise in middle class

The movement of population to town and cities for jobs is resulting in urbanisation. By 2025, India will have six megacities, accommodating a population of 10 million or more. As per estimates, India will have 63 cities with a population of one million or more, compared to 43 cities in 2011 (Source: PwC). Increasing urbanisation and awareness for basic sanitation will create more demand for sanitaryware in the coming years.

India has the potential to become the world's largest middle class consumer market with total consumer spend of nearly US$ 13 trillion by 2030 (Source:  Deloitte report titled 'India matters: Winning in  growth markets').This segment is embracing international lifestyles, translating into a surge in for modern amenities.

Government initiatives for better sanitation

According to the UNICEF, 638 million people in India lack proper sanitation facilities.

Public toilet promotions, such as installing 'Sulabh' toilets in public places, as well as various policies commenced by the government to reduce housing shortages will augur well for industry players.

Swachh Bharat Abhiyan

Through the Swachh Bharat Abhiyan, the government aims to create facilities that will completely stop the need to defecate in the open, by 2019. The government plans to achieve this by constructing over 11 crores rural toilets by 2019 at a earmarked expenditureof X 1,96,600 crores.

Building Products Division

HSIL is the leading player in the Indian organised sanitaryware market and the largest manufacturer of bathroom products. With a capacity of 3.8 million pieces of sanitaryware products and plants located at Bahadurgarh (Haryana) and Bibinagar (Telangana), the Company has persistently tried to reinvent itself through sustained focus on technology and design. HSIL also manufactures faucets with a capacity of 3 million pieces per annum, of which 2.5 million pieces Greenfield plant is recently commissioned at Kaharani, Rajasthan. We provide an array of building

This initiative is not just about building toilets but instilling a behavioural change and inculcating a habit of hygiene, sanitation and cleanliness. Although there may not be any immediate impact on industry players, but this habit ingrained, will result in long-term benefit for the industry on whole.

Replacement market

The demand for replacement market in the sanitaryware industry has been low in India (8%), compared to developed countries (80%). The average life of a bathroom in urban India is expected to come down from 20 years to less than 10 years as urban Indians are upgrading their spaces at a faster pace. This up-gradation will be in the form of refreshing designs and improved fixtures.

products ranging from sanitaryware, faucets, wellness products, kitchen appliances and vents.We are well equipped with best-in-class technologies, a wide product basket and high quality standards.

We have taken the following steps to  maintain our competitive edge:

© We expanded the brmium product range, considering the increasing urbanisation and changing brferences of affluent India

© Created a line of innovative products, keeping sustainability in mind

© Invested on brand building exercises with several below the line (BTL) and above  the line (ATL) activities  

©   Continued strengthening the operating framework with better efficiencies across  all parameters

© Continued enhancing of the distribution network to Tier II and Tier III cities, to firm our footprints in far reaching regions

Key differentiators

Brands across segments We cater to various customer segments through our well-known sanitaryware brands. These brands are QUEO (luxury); hindware Italian Collection, hindware Art and Hinware (brmium segment) and Benelave (value for money). Our cost-effective range that focuses on affordability is Raasi. Our convenient categorisation of the entire range into tiers makes it easy for customers to shop.

We have entered into an exclusive distribution agreement with Groupe Atlantic of France, a US$ 1.5 billion company - experts in all types of heating systems and home comfort appliances, with a worldwide brsence. They are number one in France and among the top players in this category in Europe. We foresee this alliance help us import water heaters for the Indian market, co-branded as 'hindware - atlantic'.

Wide distribution network We market products across India through our strong network of over 3000+ dealers and 19,000+ retailers, enabling higher penetration in Tier I, Tier II and Tier III cities.

Strong R&D expertise: We have a state-of-the-art ultra-modern R&D facility, with the latest equipment to ensure superior quality and improved manufacturing process. We are the first company in the sanitaryware industry with in-house

R&D facility, recognised by the Ministry of Science & Technology, Government of India (GOI). We also have a strong R&D pipeline with a focus on Green Building Products.

Water conservation technology With increasing environmental awareness, customers are moving towards eco-friendly bathroom products and fittings that help in the conservation of water. Solutions such as high-efficiency flushing systems, sensor taps and showers are gaining importance. HSIL was the first company to introduce water efficient products in the market, such as the exclusive eco-ware range of 'Star Rated' water efficient closets. One can save over 65,000 litres of water a year using these products.

Faucet plant technology: HSIL has invested in global technologies which enhances product quality, lowers manufacturing cost, optimises capacity utilisation and maintains consistency. We are the first manufacturer in India and the second in Asia to introduce robotic grinding and polishing technology. This technology ensures flawless surface for every manufactured piece.

Quality: All our plants are recognised for their top-tier quality and environment-friendliness. We have received ISO 9001:2000, ISO 14001 and OHSAS 18001: 1999 certifications. The Institute for Testing and Certification, Czech Republic

The sanitaryware industry is expected to perform better owing to political stability, consistent focus on reforms and growing investments in infrastructure.

Customer service When it comes to our service philosophy, agility and responsiveness are the two pillars of focus. Through our 22 after sales service centres located across India, servicing 600+ districts, 'hindware Care' is a toll free helpline active 6 days a week. With a fleet of 300+ in-house certified service engineers, we strive to nurture great relationships to create better experiences for our stakeholders.

Branding: We have 360-degree marketing communication plans for our brands. We have roped in Shah Rukh Khan as our brand ambassador for the hindware and Jacqueline Fernandez for our luxury brand, Queo, to further enhance visibility and top-of-mind recall.

Highlights, 2014-15

© We have begun production at our Greenfield faucet plant at Kaharani. The plant has the capacity to manufacture 2.5 million pieces per year and is the country's first bath-fitting plant with robotic technology

Outlook

The outlook for creating new, unique products is positive given the rising demand for such categories. These are gaining popularity because they are aesthetically pleasing, eco-friendly and technologically advanced.

The sanitaryware industry is expected to perform better owing to political stability, consistent focus on reforms and growing investments in infrastructure. With growing affluence, more people will shift towards contemporary products in the bathroom products' segment. In addition, nuclearisation of families and the need for personal space will increase the demand for such products. The government's focus on cleanliness, sanitation and house for all are also expected to increase sales.

At HSIL, our foresight has always stood us in great stead and we are shaping our future strategies in line with the evolving macro-scenario and laying the foundation to become a 'complete bathroom solutions' provider.

PACKAGING PRODUCTS INDUSTRY

Container Glass Segment

Container glass plays a critical role in the packaging industry. Sectors using container glass include liquor and beer segment, food and beverages, the pharma industry as well as the cosmetics industry and perfumeries. Growth in per capita income, changing lifestyle patterns and focus on health awareness are some of the key drivers of this product segment.

Increasing competition, necessity for labelling of quality, quantity and price of goods according to government approved norms and brferences for packaged goods are some of the factors that have resulted in innovation and introduction of technology in the packaging market.

According to TechNavio, the global container and packaging giant, the market is expected to grow at a CAGR of 6.87% over the period 2014-19. India's packaging industry is growing constantly and the total worth is about US$ 8.7 billion. The average annual growth rate is about  13-15%. (Source: www.indiapack.org >)

There is significant headroom for growth as India's per capita consumption of packaging is only 4.3 kgs, whereas in neighbouring Asian countries like China and Taiwan, the consumption is about 6 kgs and 19 kgs, respectively. This shows that there are many more products,  which need to be promoted in packaged conditions. Such a scenario reflects a great business opportunity for India's packaging  industry (Source: www.indiapack.org).

Advantage glass

Glass packaging with numerous advantages is brferred in India's consumer packaging market. It is inert, odourless, impermeable and re-usable. Glass can also be recycled without losing its intrinsic quality.

Consumer's acceptance of glass as a brmium medium has helped several end-use manufacturers to better brands of their products. In the alcoholic beverage sector, glass is brferred for its barrier properties compared to rigid plastics. In the cosmetics sector, it is brferred for both its unique design possibilities and brmium feel. Demand for carbonated soft drinks, especially from the rural and semi-urban markets continues to grow and the industry uses returnable bottles made of glass.

Adoption of the latest technologies and usage of automated machines in the manufacture of glass containers in the country has grown in the last decade. The traditional methods (mouth blown and handicraft processes) are used to make decorative and glass tableware products for the domestic and export markets. The Adoption of Narrow Neck Press & Blow (NNPB) technology has also helped India's manufacturers to deliver light weight glass packaging solutions to their end users.

There are various factors fuelling the demand for glass packaging in the country. Some of these are:

© Positive economic outlook for the key users of glass as a packaging medium that pushes demand

© Glass is inert and there is no change in taste and odour of the food items packaged in it

© Glass can be moulded into any shape or intricate design, hence it's attractive

© Glass can be used for high-speed fillings, thus saving time and increasing profitability

© Glass containers made from cullet or weight reduction technology save energy. Every ton of glass recycled saves 322 KwH of energy, 246 kg of CO2 and 1.2 tonnes of virgin raw material

© Glass is 100% recyclable

Demand drivers Favourable demographics

India's young population, progressive shift from un-branded to branded products and rise of organised retail provide thrust to demand. These factors are expected to drive growth for the user industry, in the future.

Growth in end-user segment

Sustained demand from the user industry group has been the key growth driver for the packaging products segment. Among the user groups, liquor and beer rebrsent the largest user segments of container glass. These segments constitute more than 50% of the requirement and have been growing at 10-12% annually. Food and beverage, soft drinks, and pharmaceuticals account for the rest and are growing at

12-15% annually (Source: Emkay Research).

Low per capita consumption of the user industry is also slated to drive growth in glass under the packaging business.

Relevance of health focused green packaging

More and more people are making buying decisions, based on eco-friendly packaging materials that are also aligned to address rising health concerns. Environment friendly packaging is more of a social development among consumers than a marketer's choice. Glass is increasingly becoming more

The Indian pharmaceutical industry has been consistently growing at a CAGR of more than 15% over the last five years brferred as a green packaging medium, which is also good for health.

Focus on brand

India's young population is expected to grow significantly in the coming years. Young people are now more brand conscious than before. The aesthetics colour scheme, design, shape and size of the packaging affect the choice of the customers, who want to know more about the substance. With more focus on education and general awareness, consumers will ask for branded packaging.

Indian Made Foreign Liquor (IMFL)

The total IMFL market is estimated at around 316 million cases in 2014-15. Select players in the domestic market include United Spirits, Pernod Ricard, Allsed Blenders & Distillers, Radico Khaitan and Jagjit Industries.

Beer

Beer market in the country is estimated at 2.41 billion litres in 2014 valued at X 40, 834 crores. United Breweries is the market leader followed by SABMiller. Other select players include Mohan Meakins, Mount Shivalik, Carlsberg, Crown AB, Yuksom Breweries, Devan Modern Breweries and Asia-Pacific Breweries. Over 98% of beer is packaged in glass bottles with crown closures. In 2014, India's per-capita beer consumption reached 1.9 bottles, the lowest among BRIC nations.

Non-Alcoholic beverage industry

Demand for carbonated soft drinks, especially for rural and semi-urban markets continue to grow and the industry uses returnable bottles. Analysts forecast that the demand for carbonated soft drinks is expected to grow at a CAGR  of 7.5% during 2013 to 2017. According  to a report by researcher Business Monitor International, the Indian market of non-alcoholic beverage, comprising carbonated drinks, juices, bottled water, ready-to-drink tea and coffee and sports drinks, is expected to touch US$ 5.18 billion by 2015.

Carbonated Soft Drinks (CSD) and aerated water (aerated water)

Major players, Coca Cola (ThumsUp, Sprite, Fanta, Coke, Limca) and Pepsico (Pepsi, Miranda, 7Up, Mountain Dew) together account for over 90% of the CSD market. There are more than 100 CSD bottling plants, sbrad across the country.

Flavoured milk: Demand for flavoured milk has been increasing in recent years. Amul is the market leader with over 70% market share. There are over 80 dairies across India producing flavoured milk. Some of the other select players include Mother Dairy, Nestle, Britannia, CavinKare's 'Cavin brand and milk co­operatives such as Aavin, among others. Flavoured milk is packed largely in glass bottles with crown closures.

Fruit drinks (Hot fill): The fruit juice market is fragmented, with a number of small regional players and a few large players, such as Dabur Foods, Godrej Foods, Parle Agro Products, Pepsi Foods, Pioma Industries and Coca Cola. In the artificially flavoured fruit drinks market, Coca-Cola's Maaza, Pepsi's Slice, Parle's Frooti and Godrej's Jumpin make for popular brands. Fruit-based drinks are largely packed in glass bottles.

Pharmaceutical industry

The Indian pharmaceutical industry has been consistently growing at a CAGR of more than 15% over the last five years. The encouraging growth reveals the intrinsic strengths of the industry and the improving healthcare standards in the country. The major industry drivers comprise the following: the rise of a large number of product processing units, formulations, bulk drugs and other related industries that have catalysed the growth of packaging sector. Besides, many of them are implementing advanced packaging technology to ensure protection, quality and a long shelf life of products. In addition, changing lifestyles and the increasing occurrence of chronic diseases will reinforce the demand for healthcare products and services, and thus encourage growth in the healthcare packaging market.

Food packaging industry

The food packaging segment is expected to grow by 15-20%, backed by increasing demand from the nuclear family system, a growing young population and rising per capita income, a higher tendency to spend, health awareness and a greater acceptance of new products.

Gherkins/Cornichons (export market): Processed gherkins (brserved in vinegar, acetic acid and brine) are exported from India to Europe, USA, Russia and Canada. Global Green and Neo Foods, both based in Bangalore are the major exporters of gherkins.

Pickles / Preserves:The market for pickles is highly fragmented with a number of regional players and a few large players in the organised sector. Some of the select players include MTR Foods, CavinKare, Desai Brothers, Ushodaya, V.P. Bedekar and Chordia Foods. Pickles are packed brdominantly in glass bottles with lug caps / plastic caps.

Sauce / Ketchup The sauce /ketchup market has three large players - HUL (Kissan), Nestle (Maggi) and Heinz. Except for Heinz which uses glass bottles with lug caps, sauce or ketchup are largely packed in narrow glass bottles with crown closures and plastic closures.

Honey The honey market has only a few large players, such as Dabur and Lion Honey and a number of small players having local brsence. Honey is packed in glass bottles with lug caps.

PET Bottle

Growing demand for consumer goods and the government's large number of initiatives (Make in India campaign being the most prominent) are expected to boost the polyethylene terephthalate (PET) and polybutylene terephthalate (PBT) market. According to the Research & Markets report - 'India PET & PBT resins market forecast & opportunities 2020' - the PET and PBT resins market in India is expected to surpass US$ 1.9 billion in 2015. Increased demand for PET is driven by replacement of traditional packaging materials like aluminium, paper, metal and growth in the FMCG sector.

HSIL's Packaging Products Division

At HSIL, our foresight and capabilities over the years have made us one of the largest manufacturers of packaging products in India. We manufacture glass containers, plastic containers, plastic closures and caps, as well as specially coloured glass bottles for packaging beverages, food, liquor, beer and pharmaceutical products.

Our divisional growth is the result of a combination of high-quality products with cutting-edge technologies and excellent customer service.

During 2014-15, HSIL took several steps to improve profitability in the segment: © We identified various strategic initiatives to improve our operational efficiencies and reduce operating costs © Changed over to alternate fuel in container glass production to reduce operational costs © I nvested in modern technology and equipment to upgrade the quality and functionality of our products to address changing industry trends and consumer requirements © Focused on debottlenecking of existing facilities to improve operating efficiencies

Key differentiators

Strong relationship with institutional clients Our packaging products cater to institutional clients across various industries, including liquor, beer, food and beverages, pharmaceutical and chemical industry.

Strategically located manufacturing facilities All our manufacturing facilities are strategically located so as to serve major customers. Our glass container manufacturing facilities, located at Telangana, caters to the various alcoholic beverage and other bottling operations that are situated in nearby regions.

Stringent quality standards HSIL follows stringent quality assurance processes to enhance product quality. Our products undergo a series of quality tests and checks, which enable us to ensure lower rejection rates and minimal customer complaints.

Cutting-edge technology HSIL has adopted an advanced cost-effective technology to manufacture bottles across colours and a wide range of shapes and designs to suit user segments.

Highlights, 2014-15

© PET production grew from 6,177 Mts in 2013-14 to 6,438 Mts in 2014-15

© 50 new glass bottles introduced, including 21 light-weight bottle varieties

© 20 new PET bottles introduced © 102 new clients added

Outlook

The demand for glass and PET bottles is likely to grow on account of a trend towards well packaged, branded products rather than the loose and unpackaged formats. Besides rising development in medicine consumption, the acceptance of stricter regulations  and standards governing the production, storage, distribution and labelling of pharmaceuticals will boost growth opportunities for packaging products and accessories.

BUSINESS STRATEGY

Focus on efficient utilisation of  manufacturing capacity  © Stabilise our Greenfield facility in Kaharani (Rajasthan) for manufacturing faucets and bathroom fittings with an estimated installed capacity of 2.5 million pieces. Commercial production started on 1 July 2014. Launching brmium range faucets will be its key focus

© Brownfield expansion of sanitaryware capacities at Bahadurgarh and Bibinagar

© Focus on debottlenecking of existing facilities for improving manufacturing efficiencies

© Continue to have a mix of in-house and outsourced manufacturing given brmium brands in the portfolio

© Carry on adopting best practices and standards through product planning, increasing utilisation rates and reducing the unit cost of production

Continue multi-brand strategy across price points

© Strong emphasis on luxury brands (Queo and Amore) to take the advantage of the trend in consumer brferences moving towards indulgence

© Queo products are currently being sold though the hindware dealer network. Exclusive stores for Queo are also being setup. There are over 30 already and the target is to reach over 50.

© Amore products are aimed at the wellness segment and positioned with the theme of 'bathroom as a spa'

© Plans to strategically use brands, such as Raasi and Benelave to tap into Tier II and Tier III markets

Leverage the brand and distribution network to introduce new synergic products

© Intend to use its brand equity in the industry and widesbrad distribution network to market and distribute other related products

© Over the last few years, HSIL has added products such as faucets, wellness products and kitchen appliances

© Entered into a distribution agreement with Groupe Atlantic (France) to offer a new product category water heaters in India, manufactured by Atlantic International, an affiliate of Groupe Atlantic, the water heaters will be co-branded 'hindware - atlantic'

Focus on new product development and cost efficiency to improve performance of packaging business

© Continue to employ cost-effective manufacturing strategies such as the use of alternative fuels for glass furnaces

© Strengthen relationships with beverage companies through developing new bottle designs, comprising different shapes, sizes and colours

© Continue working on improving capacity utilisation, which currently is ranging between 75 - 80% in both units.

HUMAN CAPITAL

Our people are critical to the success of our strategic objectives — their energy, vision, commitment and intellectual capital drive growth, innovation and profitability. We identify the importance of attracting, developing, rewarding and retaining the best people to deliver business goals. We continue to invest in developing a variety of initiatives that cultivate open, transparent and two-way dialogue. A culture of entrebrneurial energy, coupled with professional persistence is encouraged among all employees. The Company's total employee strength stood at over 3,400 as at 31 March 2015.

As a part of our on-going efforts in retaining and nurturing people, we frequently revisit our HR practices to comply with the best industry standards. These practices recognise, reward and continuously brpare our team to compete with the best in the world. We have survived market transformations, competition and remained a vibrant company on the basis of our people and we believe the same will be true for the future.

We have the best talent on board, because have maintained a tradition of going to campuses and recruiting from various institutions. Also, students are selected from Tier II management institutes and are given 60 days of extensive training. Thereafter, they are sent to the market as our frontline sales force. This programme is called SAKSHAM. Under SAKSHAM, we recruit 50-60 resources every year.

Training is one of the key functions of HR. A training calendar is brpared at the beginning of each year, with inputs from employees and their reporting managers to understand and brpare modules where further developments are required. These can vary from basic organisational culture needs to behavioural requirements, to technical problems that need intervention. Retention of talent is critical to us, thus we have created a 'MUST RETAIN' list and have ensured we follow norms that help mentor these resources.

On a yearly basis, TOWN HALL meets are also organised wherein the employees get a chance to interact with the senior  management. Our JMD shares his vision for the organisation, which enhances transparency and helps build trust. The employees also get to see the bigger picture and the role they play in it.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company has adequate systems of internal control and procedures, covering all financial and operating functions commensurate with the size and nature of operations. The Company believes that a strong internal control framework is one of the most important pillars of Corporate Governance. Continuous efforts are being made to see that the controls are designed to provide a reasonable assurance with regard to maintaining of accounting controls and assets from unauthorised use or losses. The audit committee looks into all aspects of internal control and advises corrective action as and when required.

CAUTIONARY STATEMENTS

Certain statements in the Management Discussion and Analysis describing the Company's objectives, brdictions may be 'forward-looking statements' within the meaning of applicable laws and regulations. Actual results may vary significantly from the forward looking statements contained in this document, due to various risks and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India, volatility in interest rates, new regulations and Government policies that may impact the Company's business as well as its ability to implement strategies it devises for the future. The Company does not undertake to update these statements.