MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE

With the positive indications, the expansion noticed in Indian Stock Market. The index climbed from 22k in April, 2014 to 29k towards the end of the financial year. With the stock markets hitting new peaks on a regular basis, the financial year 2014-15 turned out to be a bonanza for investors. Indian stock markets have outshined gold and silver, fetching robust returns for investors in 2014-15. Gold has been on the back-foot over the three consecutive years now vis-a-vis equities after outperforming stock markets for more than a decade.

FY 2014-15 was tough for commodity investors. During the year, gold and silver fell 10% and 15% respectively, while MCX metal index fell 8%. The year witnessed huge fall of around 50% in crude prices too. So overall the commodities market witnessed sharp sell off due to US FOMC Policy. However, for the coming years we may see some upswing in commodity market so it is advisable to take advantage of lower commodity prices.

OPPORTUNITIES & THREATS/ RISKS & RESOURCES

Our Prime Minister's mission of "Make in India" will open up huge opportunity for commodity market. Lower commodity prices will help industries having lower cost of productions and high volatility may impact the profit and loss of the company.

Short term economic slowdown and slowdown in global liquidity flows may impact investor sentiments and business activities. The industry may see the increased intensity of competition from local and global players.

RISK MANAGEMENT & INTERNAL CONTROL SYSTEMS

The company has been continuously evaluating its risk management policies and framework to adjust to the continuous changes in the market scenario and the risk environment. It continues to enhance its capabilities in surveillance to make its risk management policies effective and efficient. The company has formed a Risk Management Committee headed by the Managing Director of the Company. The Company has a structure in place to identify and mitigate the various risks that would be faced by it from time to time.

The company has an adequate system of internal controls to ensure accuracy of accounting records and compliance with all laws and rules/regulations. The Company's accounts have been periodically reviewed by the undersigned along with the senior management personnel and the Statutory Auditors. Its effectiveness is assessed regularly through procedures / processes set up by management, covering all critical and important areas. These controls are periodically updated and are subject to review by internal auditors. Post audit reviews carried out to ensure follow up on the observations made by auditors. The audit committee regularly reviews the observations made by auditors.

DISCUSSION OF FINANCIAL PERFORMANCE

Your Directors are very hopeful to continue the performance of the company and post better results in the forth coming financial year and to add value to the shareholders. The Company is hopeful of improving its turnover and bottom line and hopeful of posting better revenue ahead.