a)     Industry structure and developments

India's textiles and garment industry is one of the significant contributing sectors to Indian economy in terms of direct and indirect employment generation and net foreign exchange earnings. Textile sector contributes about 14% to industrial production, 4% to the gross domestic product (GDP) and 27% to the country's foreign exchange inflows. It provides direct employment to over 45 million people and second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the economy of the nation.

The calendar year 2014 started with a low demand, falling yarn prices against high priced raw material inventory and subdued sentiments which continued till almost end of the year. With the arrival of new cotton in October/November 2014 at affordable prices, there was parity between raw material and finished goods which helped in recovering profit margins.

Textile industry at international level, seems to be quite unbrdictable and uncertain for various reasons including stagnant / diminishing demand as against increasing supply, Chinese policy on cotton, imports & currency and above all growing competition from some countries prominently Vietnam, Bangladesh, Cambodia, Thailand, Indonesia etc.

Recently the Government's initiatives towards sick textile units and funds allocation for developing textile cluster and Facilitation Centre heal confidence among the spinners. In addition, the campaign launched by the government intends to provide a further boost to the Indian textile industry and enable it to achieve growth in exports and domestic market. The campaign also focused on providing investment opportunities for foreign companies and entrebrneurs across the entire value chain of synthetics, value-added and specialty fabrics, fabric processing set-ups for all kinds of natural and synthetic textiles, technical textiles, garments and retail brands.

Real estate market has played a vital role in the Indian economy at least in the last about two decades. It is the fourth largest sector in the country in terms of foreign direct investment (FDI) inflows. FDI in the sector is estimated to grow to US$ 25 billion in 10 years. Real estate contribution to India's gross domestic product (GDP) is estimated to increase to about 13% by 2028, on the back of increasing industrial activity, improving income level and urbanization.

Currently, the real estate segment is passing through a rough phase of its business cycle. The year 2014-15 was a bag full of mixed emotions and there was nothing much to excite the buyers, investors or the realtors, as a whole. There were many political changes that led to the amendments into otherwise hard and stringent policies. However, Union Budget 2014-15 has given hopes for this sector because this time it has brought in the much-needed relief for the Indian realty sector that may not only bring positivity for the domain/ sentiments but may also help hassle-free investments.

b)     Opportunities and Threats

Opportunities:

• Government initiatives to boost textile industry.

• Make in India campaign.

• Scope for automation.

• Large overseas and domestic market.

Threats:

• Shortage of skilled labour.

• Ever increasing input cost i.e. power, finance & logistics.

• Volatile Government policies particularly for raw cotton.

• Regional imbalance in taxation/ incentives by States.

• Temporary phase of seemingly over supply.

c)     Segment wise Performance

The Company has two segments i.e. Textile and Real estates.

d) Economic Scenario and Outlook

As per the IMF forecast, India is set to become the world's fastest growing major economy by 2016 ahead of China. India is expected to grow at 6.3 per cent in 2015, and 6.5 per cent in 2016 by when it is likely to cross China's projected growth rate.

In the global exports of Textiles, India has improved its ranking. To perform consistently at global level appears to be challenge for the textile sector due to varied reasons including Indian Government's policy on cotton/fibres, Chinese policy on cotton, erratic demand, currency fluctuations, high conversion & logistic costs and Trans-pacific partnership (TPP) agreement with Vietnam by US & other countries.

Considerable cash incentives doled out by certain States in the country to attract investment will hasten build up of capacities in spinning sector which may lead to oversupply and unhealthy competition, resulting into eroded profit margins.

In order to survive, sustain and thrive in the global market, it would be necessary to differentiate and improve brsence in value added products in the near future. Further, Technical textile, which has been a thrust area for the Government, is expected to grow at a faster pace as compared to other textiles products. It would be prudent to be an early bird and earmark some investments for this area for better and sustainable profitability.

e) Management perception of Risk & concerns

In today's challenging and competitive environment, strategies for mitigating inherent risks in accomplishing the growth plans of the Company are imperative. The main risks inter alia include strategic risk, operational risk, financial risk and compliances & legal risk. The fast technology obsolescence, high cost of manufacturing and irrational taxation are the major risk/ concerns of the business.

The Company has devised and implemented a mechanism for risk management and has developed a Risk Management Policy. The Policy provides for constitution of a Risk Management Committee, which consist directors and senior management personnel. The Company through a risk management committee oversees the Risk Management process including risk identification, impact assessment, effective implementation of the mitigation plans and risk reporting.

f) Internal control system & adequacy

Your Company has an adequate internal control system. There is a system of continuous Internal Audit which aims at ensuring effectiveness and efficiency of systems and operations. The internal audit is conducted by external agency/professionals together with in-house Internal Audit Department lead by a qualified Chartered Accountants alongwith sufficient qualified & experienced staff. The scope of the Internal Audit is not limited to accounts only but includes operations, inventories, costing records, physical verifications of immovable and movable assets etc on regular basis.

The Audit Committee of the Board of Directors approves and reviews audit plans for the year based on internal risk assessment. Audits are conducted on an on-going basis and significant deviations are brought to the notice of the Audit Committee following which corrective action is recommended for implementation. All these measures facilitate timely detection of any irregularities and early remedial steps.

g)     Financial Performance

•      Resource utilisation

Fixed assets

The gross fixed assets as at 31st March, 2015 were Rs. 58,361.10 lac against Rs. 57,057.28 lac in the brvious year. The Net block of assets as on 31st March, 2015 was Rs. 25,783.85 lac as against Rs. 28,322.86 lac in the brvious year.

Current assets

Inventory levels as at 31st March, 2015 were Rs. 13,790.03 lac as against Rs. 9,219.17 lac in the brvious year. The trade receivable as at 31st March, 2015 were Rs. 5,251.99 lac as against Rs. 6,595.01 lac in the brvious year. Increase in current assets is due to conversion of land into stock in trade.

h) Human Resources Management

Your Company gives utmost importance to human resource. It considers "Human Resource as Human Capital" and believes in the development of Human Resource. The Company strongly believes in the Performance Management System and always tries to explore and tap high potential at the Group level to meet new challenges and competition. Our main tool is training and developing talent at various levels. Internal and external trainings are regularly organized for the development of the members/employees.

i) Safety, Health & Environment

The Company's top priority is safety, with regard to employment. It encourages safety measures at all operational levels, especially at floor level. Regular training programs are conducted to create awareness about the importance of safety at work. Medical Camps are organized periodically for welfare of the members. Additionally, regular medical facilities are also provided to them.

Cautionary Statement

Certain statements made in the Management Discussion and Analysis Report relating to the Company's objectives, projections, outlook, expectations, estimates and others may constitute 'forward looking statements' within the meaning of applicable laws and regulations. Actual results may differ from such expectations whether exbrssed or implied. Several factors could make significant difference to the Company's operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, natural calamities over which the Company does not have any direct control.

For and on behalf of the Board

Sd/- (Ashok Kumar Oswal)

Chairman & Managing Director

(DIN-00009403)

Place: Ludhiana

Dated: 25th May, 2015