MANAGEMENT DISCUSSION AND ANALYSIS I. Economy "It was absolutely clear that the economy is in recovery mode" so said by Finance Minister Mr. Arun Jaitley in his speech on 30th May 2015 after data showed that the economy grew at 7.3 per cent in 2014-15. The country posted a 7.5 per cent growth in the January to March quarter of the fiscal, outpacing China's GDP of 7 per cent in that quarter. The electronics market of India is one of the largest in the world and is anticipated to reach US $ 400 Billion in 2022 from US $ 69.6 billion in 2012. The market is projected to grow at a compound annual growth rate (CAGR) of 24.4 per cent during 2012-2020. Electronic exports from India was expected to reach US $ 8.3 billion in FY 2013. CAGR of 27.9 per cent during FY 07-12. Technological improvements and competitively cost effectiveness are main drivers for demand of Indian Electronics products abroad. The Government of India has set up Electronics Hardware Technology Parks (EHTPs), Special Economic Zones (SEZs) and brought about a favorable climate for clearing Foreign Direct Investment. It has also increased liberalization and relaxed tariffs to promote growth in the sector. In addition, the government gave its green signal to the modified Special incentive Package Scheme (MSIPS) under which the central government will be offering up to US $ 1.7 Billion in benefits to the electronic sector in next five years. Over view of Company's Business during the year During the year company though Company though company has attempted to maintain the performance, Company could not earn good returns due to high maintenance cost and obsolete technologies. Company has incurred loss for Rs. 20.96 lacs compared to last year's loss of Rs. 12.72 Lacs. II. Risks and concerns: - Presence of number of electronic manufacturers in the market creates a healthy competition. - Bulk Imports from overseas country in to India is great threat to Indian industry. III. Internal Control System The Company has an adequate system of Internal Controls aimed at achieving efficiency in operations, optimum utilization of resources and compliance with all applicable laws and regulations. The observations and recommendations following such audit, for improvement of the business operations and their implementation are reviewed by the Audit Committee. IV. CAUTIONARY STATEMENT: Certain statements in Management Discussion and Analysis Report describing the Company's analysis and interbrtations are forward looking and may vary from those exbrssed or implied. The Company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent development or events. |