MANAGEMENT DISCUSSION AND ANALYSIS REPORT / OPERATIONS REPORT OF COMPANY'S PERFORMANCE

The Company during its operations during the year took efforts to optimise the overall performance.

A. EXPLOSIVES DIVISION

The sale of Explosives for the year under review was 43,484 MT valued at Rs. 17,250 lacs as against 34,026 MT valued at Rs. 12,676 lacs of the brvious year. The Sales turnover on Explosives increased by 28% in Quantity Terms and 36% in value. This increase was mainly due to commissioning of Company's modern emulsion explosives plant and catering to the Dealer Market segment of business. During the year, the turnover in regard to traded goods and export of finished goods in Explosives sector was Rs. 1,41 I lacs as against Rs. 1,320 lacs for the corresponding period of the brvious year.

The sale of Detonating Fuse and related products during the year under review was valued at Rs. 760 lacs as against Rs. 733 lacs for the corresponding period of the brvious year.

B. PERLITE DIVISION

The sale of Perlite and Perlite based products for the year under review were 9253 MT valued at Rs. 1,510 lacs as against 7,856 MT valued at Rs. 1,267 lacs for the corresponding period of the brvious year, registering a growth of 18% in quantity and 19% in value.

The turnover of service contracts during the year under review was Rs. 187 lacs as against Rs. 514 lacs for the corresponding period of the brvious year. The export of Perlite products during the year was valued at Rs. 90 lacs as against Rs. 413 lacs for the corresponding period of the brvious year. The reduced turn-over in these two sectors significantly affected the profitability.

The operations for the year 2014-15 have resulted in a net profit of Rs. 342 lacs after charging debrciation, interest and tax as against Rs. 595 lacs for the corresponding period of the brvious year.

3. INDUSTRIAL REVIEW, THREATS, RISKS AND CONCERNS:

(A) EXPLOSIVES DIVISION

The Explosives Sector registered growth due to wider customer base and addition of Packaged Emulsion Explosives. However other major consumers like Coal India and Singareni Collieries have finalised long term Contracts and there were no new opportunities for break-through in these segments.

In regard to D.Fuse and related products, the demand was consistent and the licenced capacity utilisation was achieved.

(B) PERLITE DIVISION

The Domestic market sale of Expanded Perlite was satisfactory during the year under review. However, there was no significant exports and overseas service contracts due to which the overall performance of this sector was affected.

(C) INDUSTRIAL RELATIONS

The industrial relations during the year under review were cordial and there were no industrial disputes.

(D) CAUTIONARY STATEMENT

The statements, exbrssions, information given in this Management Discussions and Analysis Report describing the Company's objections, projections, estimates, expectations may be deemed to be as "forward looking statements". Actual results might substantially or materially from those exbrssed or implied. Important developments that could affect the Company's operations included demand supply conditions. Changes in Government, global economic scenario and such other developments different from Company's combrhension.

(E) OUTLOOK FOR 2015-16

During the current financial year 2015-16, on account of stiff competition coupled, the Explosives Division is expected to be under brssure. The Explosives Accessories Divisions are showing encouraging performance. The Company will consolidate its growth in the new segment of business of Emulsion Explosives. The Company has secured orders for Perlite based Insulation products during the current year 2015-16. The Company has also taken effective steps for implementation of diversification of manufactured perlite performance.