MANAGEMENT'S DISCUSSION AND ANALYSIS

The Directors have the pleasure in brsenting the Management Discussion and Analysis Report for the year ended 31-03-2015.

COMPANY'S OVERVIEW

Your company is leading producer of plastic moulded furniture' and other injection moulded articles and has a major share in the market, your Company is one of the top most leading manufacturer in Udaipur, Rajasthan in manufacturing and production of plastic furniture. Company offers combrhensive furniture solutions and has a wide variety of indoor and outdoor furniture for homes, offices, stadiums, gardens, playgrounds, beaches and many more.

A. INDUSTRIAL STRUCTURE AND DEVELOPMENT

Your Company has a total capacity of 9452.000 m.t. per annum. The company is facing sever liquidity crisis and brsently capacity utilization is very lower. Total production during the period from 01.04.2014 to 31.03.2015 is 3489,41 m.t. against the production of 3095.572 m.t.in the brceeding year registering a growth of 14.24 %. Due to  severe competition and excess availability of products in the market prices of moulded furnitures have fallen down.

B. OPPORTUNITIES AND THREATS.

Plastic moulded furniture is replacing wooden and iron furniture day by day due to its low cost hence demand and scope of plastic moulded furniture is also increasing drastically The capacity utilization is brsently lower due to shortage of working capital, high growth of market competitors and changing demands of consumers. Company is trying to meet the requirements of market by manufacturing new varieties and changes in the existing furniture and has also achieved a level of growth to some extent.

C. SEGMENT-WISE PERFORMANCE.

Your Company operates in only single segment unit i.e. Plastic Moulded Furniture that includes chairs, tables, sunlounger, Patlas, trollies etc.The production of chairs, other articles and house hold articles for the period ended on 31.03.2015 is 3489.41 m.t.

D. OUTLOOK

Margin in plastic moulded furniture are expected to go down on account of increase in supply and possible increase in raw material prices. Your Company is trying to increase its production as soon as working capital is available and is also trying to launch new model of chairs and other articles. Your Company will endeavour to maintain, and enhance its position in the furniture market.

E. RISKS AND CONCERNS

Hike in raw material price, reduction in selling prices and power cost are major issues requiring immediate attentions.The company faces a threat from competitors, which can, with their new low cost machinery, make a dent in the specially market share of the Company.Higher labour cost and distance from consumption centers put brssure on the Company financials.

F. INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

Your Company has an adequate system of internal control commensurate with the size and the nature of its business, which ensures that transactions are recorded, authorised and reported correctly apart from safeguarding its assets against loss from wastage, unauthorised use and removal.

The internal control system is supplemented by documented policies, guidelines and procedures. The Company's Internal Auditors continuously monitors the effectiveness of the internal, controls with a view to provide to the Audit Committee and the Board of Directors an independent, objective and reasonable assurance of the adequacy of the organization's internal controls and risk management procedures. The Internal Audit function submits detailed reports periodically to the management and the Audit Committee. The Audit Committee reviews these reports with the executive management with a view to provide oversight of the internal control systems. The Company reviews its policies, guidelines and procedures of internal control on an on-going basis in view of the ever changing business environment.

Your Company's statutory auditors have, in their report, confirmed the adequacy of the internal control procedures.

G. FINANCIAL PERFORMANCES.

Your company achived a turnover of Rs.3964.03 lakhs during the year 2014-2015 registering a growth of 14.24 % over the brvious year and earned a cash profit of Rs.19.37 lakhs (pr.yr. Rs.62.63 lakhs.

H. SAFETY

Adequate safety measures and safe working practices have been implemented to ensure safety of workforce, plant and Machinery as well as of the enviornment.

I. HUMAN RESOURCES;

The Industrial relation situation was cordial and harmonious and continues to be so at brsent; The Company has conducted computer training programme primarily to enhance the skill of the workforce. Your Company has the strength of 43 staffs and 56 workers.

Our technical and well qualified staff efficiently use their skills in internal as well as external opportunities for capturing new market trends and high growth of your organization.

ACKNOWLEDGEMENT

Your Directors exbrss their deep sense of apbrciation for the contribution made by the Staff, workers and all other employees of the Company for the successful growth in the operations of our buiseness.

The Directors also thank their the banks, financial Institutions, Customers, Suppliers, Shareholders, Central and State Government Authorities etc. for their continuous co-operation and support that contributed in the growth and prosperity of your Company. Your Directors look forward to the continued support of these partners in progress.

For and On behalf of the Board of Directors

sd/- DAUD ALI Managing Director DIN : 185336

sd/- NARENDRA BHANAWAT Whole Time Director and Chief Financial Officer DIN : 146824

Udaipur, 30.5.2015

Cautionary Statement:

The Statement in the "Management Discussion and Analysis Report" Section describes the Company's objectives, projections, estimates, expectations and brdictions which may be "forward looking statements" within the meaning of the applicable securities laws and regulations and actual results might differ materially from those exbrssed or implied, depending on the economic and climatic conditions .Government policies and other incidental factors.