Management’s Discussion and Analysis

Clause 49 of the listing Agreement stipulates disclosure under specific heads which are given in the following paragraphs and which continue to be followed in the usual course of the Company’s business over the years in discussion amongst the Directors and other Senior Management Personnel.

- Industry Structure and Developments

Financial Year 2014-15 was year of challenges marked by economic disruptions and lagging growth in India and around the globe as well. India’s GDP was lowest in decade at 5%.

Balurghat Technologies Limited showed real grit. We committed to a strong performance and we delivered –no small feat given the years challenges Revenue from operation increased by 9.58% to 4120398 hundred for the year as against 3760121 hundred of the brvious year. PBDIT increased by 11.51% to 116413 hundred for the year as against 104393 hundred of the brvious year. Profit before tax increased by 7.67% to 86455 hundred for the year as against 80298 hundred of the brvious year. Net Profit increased by 5.34% to 68472 hundred for the year as against 64997 hundred of the brvious year.

? Opportunities and Threats

Logistics:

a) Opportunities

Highly Competitive Conditions inherent in industry and the company’s ability to compete.

Contemporary economic processes have been accompanied by a significant increase in mobility and high levels of accessibility .Societies have become become increasingly dependent on their transport system to support wide variety of activities ranging among others from supplying energy needs to distributing parts between manufacturing facilities and distributing centers.

Credit risk is considered to be low and not overly concentrated due to the strength ,diversity and long standing relation with its customer base . India’s transport contributes in growth of industries whose product requires quick marketing. Government’s initiative like development of SEZ logistics parks ,infrastructure , building ,privatization of transport operations ,implementing PPP models etc will encourage private sector investments and lead to greater demand for logistics services.

Threats:

Adverse weather conditions that impede the movement of the bulk materials. This also increases BTL’s operating cost .This reduces consignee’s requirement The industry is becoming more competitive with strategic maneuver of companies. Outsourcing solutions in transportation and logistics industry is threat . Smaller companies would continue to be adversely impacted due to low demand for road freight during the slowdown. The company is unable to revise freight rates in tandem with hikes in diesel prices.

Travel & Tourism:

a) Opportunities

The promotion and aggressive marketing measures undertaken by the government is expected to aid influx of tourists. The industry would also benefit from introduction of new forms of tourism and development of niche segments. Opportunities also exist in ecotourism, adventure tourism, and cruise tourism. Eco-tourism is increasing in popularity, evident in the development of eco-friendly hotels and tour packages. With increasing environment awareness and consciousness among tourists and given efforts undertaken by the government and private players, the ecotourism segment is expected to record handsome growth in the coming years.

b) Threats:

For inbound international tourists, visa procedures are seen as a hindrance. Security has been a major problem as well for growth of tourism for a number of years. Terrorist attacks or political unrest in different parts of the world and within country have adversely affected sentiments of tourists.

- Risks and Concerns:

Risks: * Competition from other players

* Exchange Fluctuation

* Hike in Fuel Prices

Concerns: * Government Polices

*Bad weather Conditions

- Outlook:

The demand for transport is linked to overall health of Indian economy. As a result significant change in the economy could affect the company’s performance. The company continues to focus on bulk hauling niche. The company has mitigated risk through customer base diversification.

Your Company will continue to focus on both development and expansion of markets and share gains as appropriate to secure competitive growth. Supply Chain Security & Risk Management will be a key area to brvent disruptions due to factors like weather, labour issues.

- Discussion of Financial Performance:

This has been adequately stated in the Directors’ Report.

- Segment Wise Performance:

The performance in Logistics / Travel Segment has been very encouraging in-spite of the global recession. The company’s current year turnover in this segment is Rs. 1818678 hundred as against Rs. 1550409 hundred in the brvious year, showing a growth of 17%%.

 The performance of trading segment is Rs. hundred as against Rs. 2116678 hundred in the brvious year, showing a growth of 4%.

- Material Developments in Human Resources

Your company strongly believes that its intrinsic strength lies in the quality of its pool of dedicated and motivated employees. All the success so far achieved by Balurghat Technologies Limited is mainly on their account. Management remain confident of the ability of our company employees to stand up to the business expectations in this difficult scenario and serve the Company satisfactorily in the days to come.