MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT

Management of MMGL is pleased to brsent its analysis report covering business wise performance and outlook. This report contains certain forward-looking statements, which are subject to certain future events and uncertainties that could cause actual results to differ materially.

Business

Company is mainly engaged in the following businesses

(a) Manufacturing and processing of Granite Tiles and Slabs; and

(b) Generation of power by WTG

(c) Land Development and Realty Business

(d) Trading of Marble, Granite & Other Stone

Review of Operations

• Granite Business - Tile and Slab Segment:

The turnover from the tile business was at Rs. 225.86 million as against Rs.203.53 million in the brvious year, an increase of 10.97%. The production during the year was at 170813.00 sq. meters as compared to 142333.10 sq. meters of brvious year.

The turnover from the Slab business was at Rs. 598.87 million as against Rs. 488.21 million in the brvious year, an increase of 22.67%. The production during the year was at 238372.670 sq meters as compared to 174727.851 sq. meters of brvious year.

• Windmills

The production during the year was 3386841 units as against 3964415 units in the brvious year. Out of current years' production 490882 (brvious year 1077976) units were sold to TNEB after utilizing 2895959 (2886439) units by granite division.

The Company had setup an additional Wind Turbine Generating Unit with capacity of 1.5 MW and the unit had commenced operation w.e.f. March 26, 2015.

• Realty

Land measuring 184885 Sq. ft. is in the process of conversion and after that the company will sell the converted plots.

Outlook

• Granite Business

Company is widening its reach by developing its existing and new customer base through its effective pricing, aggressive marketing and making available different varieties of color and design. This is resulting in boost in our business growth and good financial performance year wise.

The Tamil Nadu state government has not taken any decision to revamp the closed mines; hence availability of good quality rough granite blocks remains a critical issue. Company continues to import rough granite blocks from Norway & Finland.

We are optimistic that global economic scenario improves resulting in better business environment and profitable results.

• Realty Business

As informed earlier, regarding stay granted by Hon'ble Rajasthan High court for conversion in peripheral belt, the Company had opted to terminate the joint development agreement entered into with Land owners.

Global economic uncertainties have affected India's economy, including the real estate market. "Macroeconomic indicators are not healthy. Fiscal deficit and interest rates are high while the rupee is debrciating. All this does not bode well for any industry, especially real estate. Slow sales and a glut of properties are set to hamper the residential real estate market. Accordingly, the Management does not intend to take up any new project in near future

• Turnover achieved by the Company for the Year ended 31.03.2015 is Rs.903.05 million compared to the brvious year turnover of Rs.742.43 million, a substantial increase of 21.64%.

• Total Turnover includes 91.00% contribution from Granite Business.

• Company has achieved Operating Profit at 15.74% of total sales as a result of better operating efficiencies and cost cutting measures adopted.

• Net Profit after Tax stood at Rs. 78.54 million as against Rs. 60.37 million in 13-14

• Earning per Share was Rs. 8.78 for the year under review against Rs.6.75 in the corresponding brvious year.

• The Company has an adequate system of internal controls implemented by the Management towards achieving efficiency in operations, optimum utilization of resources and effective monitoring thereof and compliance with applicable laws.

• The Company continues to maintain cordial relation with all its employees.

Conclusion

The Company had a successful year under review with a significant growth in turnover over last year. An additional Wind Turbine Generating unit has also been set up during the year which commenced operation in March 2015. The inherent strength, strong fundamentals, aggressive marketing strategies bodes well for the Company. Efforts towards higher operational efficiencies shall continue and management is confident and striving to deliver more good results with the support and trust of all the stakeholders.