MANAGEMENT DISCUSSION AND ANALYSIS REPORT 

The company's activity during the year primarily was of management of its subsidiary companies and restarting activities on Circuit Breakers and related spares and services.

The Company has appointed a Whole time Managing Director to look after the Indian operations of Group Companies.

The company has made progress in procuring ser­vice and spare orders for circuit breakers and has also started to participate in tenders for the manufacture and supply of 11kV and 33kV Indoor and outdoor Circuit Breakers. As a result of which, the company is expect­ing a breakthrough order in the next financial year.

CONSOLIDATED FINANCIAL STATEMENTS AND SUBSIDIARY COMPANIES

CONSOLIDATED FINANCIAL RESULTS

The Company has five subsidiaries namely;

1. Acrastyle Limited (AL), U. K.

2. S&S Power Switchgear Equipment Limited, Chennai (S&SPSE)

3. Acrastyle Power (India) Limited, Chennai (APIL)

4. Acrastyle Switchgear Limited, U.K. (ASL, Subsid­iary of APIL)

5. Acrastyle EPS Technologies Limited, Chennai(AEPS)

As required under the Listing Agreement with the Stock Exchanges, a Consolidated Financial Statement of the Company and all its subsidiaries are attached in the Consolidated Accounts. The Consolidated Financial Statements have been brpared in accordance with the relevant Accounting Standards as brscribed under Section 129 (3) of the Companies Act, 2013 ("Act"). This consolidated financial statement discloses the assets, liabilities, income, expenses and other details of the Company, its subsidiaries and associate company.

Pursuant to the provision of Section 129(3) of the Com­panies Act 2013, the Company shall also attach along with its financial statement, a separate statement con­taining the salient features of the financial statement of its subsidiary or subsidiaries in such form as may be brscribed. Accordingly statement containing brief financial details of the company's subsidiaries for the financial year ended March 31, 2015 is included in the Annual Report. The Annual Accounts of these subsidiar­ies and related information will be made available to any member of the company / its subsidiaries seeking such information are available for inspection at the registered office of the company. The annual accounts of the said subsidiaries will also be available for inspection, at the registered office of the respective subsidiary companies. 

ACRASTYLE LIMITED (AL)

Acrastyle Limited is engaged in the designing and man­ufacturing control and protection equipment for power generation, transmission and distribution systems. It has extended its support to customize Disconnector for UK Utilities by sourcing Disconnector from Manufactur­ing Unit SSPSE in India.

During the period under review the turnover of AL was Rs. 610.89 Mn as compared to Rs. 626.22 Mn during the brvious year. The Operations of the Company resulted in a profit of Rs. 25.22 Mn.

Future Developments

Generally the UK electricity market is improving with a new regulatory spend period agreed with the util­ity companies, allowing them to place more business. 90% of our business is now with utility companies, the end users of our products and services.

The company has secured framework contracts for the relay control panels from certain utilities in UK, providing a good base load of regular enquiries and orders. Also, a framework contract with one of the utilities for engineering services have been entered. Company has strengthened the sales team to support the sale of disconnectors in UK.

The company projects a growth of over 10% in the business for the next financial year, with similar year on year growth for the foreseeable future. 

S&S POWER SWITCHGEAR EQUIPMENT LIMITED (S&SPSE)

S&SPSL had established a Joint Venture with Coelme Construzioni Elettromeccaniche SpA, Italy for manu­facture of Disconnector products in the name and style of "S&S Power Switchgear Equipment Limited" (S&SPSE).

During the period under review the turnover of S&SPSE was Rs. 190.50 Mn as compared to Rs. 205.47 Mn dur­ing the brvious year. The Operations of the Company resulted in a loss of Rs 9.96 Mn.

During the year, company has appointed a Contract Manager for business operations.

Our sales to Coelme increased 2.5 times over brvi­ous year. New components for supply into Europe have been focussed now, in addition to focussing on Quality to meet the standards in this market. Component sup­ply would remain a strong focus of the company in the next year.

Significant Highlights during the year:

i) Supply of DC disconnectors for Powergrid HVDC.

ii) Development of Aluminium structure for UK market.

iii) Development of hybrid disconnector for UK market.

iv) Launch of a new development program for com­petitive Disconnector for the entire range.

v) Restructuring of Sales & Marketing areas to expe­dite growth programs.

vi) Focus on aftermarket sale for Disconnectors. 

vii) Secured 220KV Disconnector order and delivered to Vietnam after a long gap.

viii) Highest ever despatch of Metallics in the last quar­ter and execution of short cycle orders.

Efforts of Sub-station automation and remote control by PGCIL in India is requiring old manually operated dis­connectors to be converted into electrically operated for remote operation as a part of PGCIL improvement pro­gram. This has offered very strong pipeline for up-gra-dation, retrofit and overhauling opportunity for our large installed base. This will drive growth in next financial year.

S&SPSE acknowledged the continued support of S&SPSL through grant of interest free loans, reduced lease rentals and increased management time for achievement of these results.

ACRASTYLE POWER (INDIA) LIMITED (APIL)

APIL is into design of control and protection systems and also manufacture of control and protection panels.

During the period under review the turnover of APIL was Rs. 98.29 Mn as compared to Rs. 78.32 Mn dur­ing the brvious year. The Operations of the Company resulted in a loss of Rs. 3.12 Mn.

During the year, company has appointed a General Manager for Manufacturing & Engineering operations. Company has also appointed young & talented engi­neers to improve execution and innovation for growth of the Company.

Company's strong Engineering setup has made good impact on Middle East & Saudi market which has engi­neering projects in abundance.

Significant Highlights during the year:

i) Secured orders from customers like Siemens-UAE, National Contracting Co, ETA PCS-Dubai, Alstom-Saudi.

ii) APIL has engineered complex 1&1/3 Configuration (4 Breaker arrangement) for Generator protectionauto / manual Synchronising / Bay control / inter­lock / logics for Alstom- Singapore

Highlights:

The challenges faced by the company has been its over dependence on a single customer for engineering and manufacture of control and protection panels. The com­pany has during the year put in place a new marketing team and has also invited several other leading brands in the electrical field to make use of the existing facili­ties to operate as a brferred OEM manufacturer. We are glad to say that we received consultant approval from Avant Garde, got orders from new customers like Toshiba, Prolec GE, Schneider

The company has launched development programs to improve the substation automation capability of the company and develop installation and commissioning team for CRP & SAS this will augment the efforts of OEM's like Schneider, ALSTOM, Siemens etc and win service contracts from these companies in future. We are continuing to work for approval of APIL as a manu­facturer and supplier of control and protection panels from select utilities specially TNEB.

Apart from the above, order wise got sample approval from AL UK for Solkar Panel this will help us in exporting to UK.

 ACRASTYLE SWTICHGEAR LIMITED (ASL)

The principal activity of Acrastyle Switchgear Limited is that of an investment Company. Acrastyle Switchgear Limited is a holding Company for Acrastyle Limited (AL).

ACRASTYLE EPS TECHNOLOGIES LIMITED (AEPS)

Acrastyle EPS Technologies Limited was floated as a Joint Venture Company for manufacture of Magnetic Actuators. The factory has been set up at Maraimalai Nagar. This Joint Venture Company has completed the prototype of the maglatch and established a supplier base.