MANAGEMENT DISCUSSION AND ANALYSIS REPORT

BACKGROUND

The Management Discussion and Analysis Report sets out the developments in the business environment and the Company's performance since our last report. This analysis supplements the Director's Report and the Audited Financial Statements forming part of this Annual Report.

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company's actual results, performance or achievements can thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

BUSINESS ENVIRONMENT

Reference may be had to the "Operations" in the main body of the Directors' Report. INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company has sound internal control system, which ensures that all the assets are protected against loss from unauthorized use and all the transactions are recorded and reported correctly.

The internal control system is supplemented by an extensive programme of internal audits and reviews by management. The internal control systems are designed to ensure that the financial and other records are reliable for brparing financial statements and other data and for maintaining accountability of assets.

Further the reliance of all the internal control functions and its entire gamut of activities are covered by independent audit conducted by separate internal auditors whose findings will be reviewed regularly by the Audit Committee and top management of the Company.

The internal audit is conducted as per the requirement of the Company and the report will be submitted to the Audit committee and to the management. It reviews the policies and procedures followed. The committee reviews the quarterly and half yearly financial results before they are submitted to the Board of Directors.

HUMAN RESOURCE DEVELOPMENT

Human capital is one of the key elements of your Company. The Company has employed the employees who are highly motivated and have been contributing for the growth of the Company. The Company's human resources policies are aimed at motivating its employees to deliver high quality performance and reward talent with adequate compensation and accelerated career growth opportunities. The loyalty and faithfulness exhibited by employees at all levels, sustained and untiring efforts put by them show the motivation and commitment on their part.

BUSINESS OVERVIEW

During the year under review, the turnover of the Company reduced by 15.54% approximately and the Company registered net profit of Rs. 5,63,66,921/- compared to brvious year profit of Rs. 3,89,16,797/-.

SEGMENT WISE REPORTING

During the year under review, Company has achieved sales through sale of asbestos cement brssure pipes and electric wind power.

RISKS AND CONCERNS

In any business, risks and prospects are inseparable. As a responsible management, the Company's principal endeavour is to maximize returns and minimize risks. The Company continues to take all steps necessary to minimize its expenses through detailed studies and interaction with experts.

OUTLOOK

The Company believes that its focus on profitable growth and targeting leadership position will create significant value in the future. The Company has a positive outlook for the next year.

CAUTIONARY STATEMENT

The management has brpared and is responsible for the financial statements that appear in this report. There financial statements are in conformity with the Accounting Standards and accounting principles generally accepted in India. Statement in this Management's Discussion and Analysis detailing the Company's objectives, projections, estimates, estimates, expectations or brdictions are "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those exbrssed or implied. Important factors that could make a difference to the Company's operations include global and Indian demand-supply conditions, finished goods prices, feedstock availability and prices, cyclical demand and pricing in the Company's principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations.