MANAGEMENT DISCUSSION AND ANALYSIS

Pursuant to Clause 49 of the Listing Agreement, the Management Discussion and Analysis Report is as under:

a) INDUSTRY STRUCTURE AND DEVELOPMENTS

The industry of Coding and Marking is driven by legal requirements to provide product information to customers, printing specifications, ISI logo and Company logo; inventory control by reduction in wastage of packaging material and printing on the production line; traceability of products by date of manufacture, batch numbers, shift numbers, and real time-date and ensuring quality control, counterfeit brvention, marketing promotion by printing variable information and logos.

Overall the industry growth is closely co-related to packaging industry growth and the manufacturing sector growth as a whole. The Indian Coding & Marking industry has reached a level of maturity and acceptance across applications and is dominated value-wise by 4 players with your Company being amongst them. Your Company is a br-eminent Company in the Coding & Marking Industry in India with a strong management team, significant financial resources and investments, unsurpassed infrastructure, a rock-solid reputation, combrhensive reach and huge network of skilled and experienced manpower. Your Company has modern production facilities located at Vasai, Nalagarh and Guwahati. Your Company manufactures printers for printing variable information and thereafter also sells their consumables, brventive & breakdown services, filters, spare parts, etc. Your Company's product portfolio includes:

• Continuous Inkjet Printers (CIJ)

• Drop-on-Demand Valvejet Printers (LCP)

• Thermal Transfer Over-printers (TTO)

• Thermal Inkjet Printers (TIJ)

• Laser Coders

• Thermal Ink Coders

• Piezo High Resolution Drop-on-Demand Inkjet Printers (HR) and

• Related consumables and spares.

b) OPPORTUNITIES AND THREATS

The marking and coding industry is growing rapidly in India almost at a Compound Annual Growth Rate (CAGR) of approximately 15%. Being a manufacturer of majority of the items required for Coding and Marking industry and having a leadership edge in technological terms, your Company has an advantage over other players in the industry and can increase market share and installed base. The primary threat is the greater installed base of a few key competitors enabling them to get a higher number of repeat and reference sales. In addition in certain products & applications the competition is well entrenched and therefore establishing market share will be a lengthy and difficult exercise.

As the Indian Packaging Industry has developed and also with the further maturation of various Coding Technologies worldwide there is a consistent growth in overall market size. However, the growth is sbrad across all the various Coding technologies rather than around Continuous Inkjet Technology as was the case in the past. This is both an opportunity and a threat depending upon how successful your Company is in establishing market share in these other Coding Technologies. Your Company is working on providing a variety of strong products coupled with marketing & distribution muscle behind these products to be successful across the Entire Coding Technology Spectrum.

c) PERFORMANCE REVIEW & OUTLOOK

The market is witnessing better integration capabilities among marking and coding products and machinery used on production and packaging lines. Your Company aims to mark its brsence in all possible segments with upgraded model. In the past years Company has seen reasonable sales and profit growth and we are confident that we can maintain steady growth in the future as well.

Financial Performance

During the year 2014-15, your Company has total net sales of Rs. 11,292.33 lakh as against Rs. 9,105.77 lakh in the brvious year, rebrsenting a growth of 24%.

Profit before debrciation and tax during the year under review is Rs. 2,794.91 lakh compared to Rs. 1,945.07 lakh in the brvious year. Profit after tax is Rs. 1,915.25 lakh compared to Rs. 1,411.20 lakh in the brvious year.

Domestic Sales Review:

Domestic sales which constituted 98% of total net sales increased from Rs. 8,878.95 lakh to Rs. 11,050.65 lakh reflecting a growth of Rs. 2,171.70 lakh. Export Sales:

Export sales contributed to Rs. 241.68 Lakh of total net sales against Rs. 226.82 Lakh in brvious year rebrsenting a growth of 6.55%.

This year Your Company plans to have increased sales growth with a strong range of products across all Coding Technologies.

d) OTHER HIGHLIGHTS:

Partnerships:

In order to enhance the Customer value by delivering effective and prompt services and with a view to have a performance check, Your Company has undertaken a shift towards technological advancement. It shall always strive to better its performance in line with market requirements. To achieve this objective, Your Company during the current year had partnered with Digital Design Inc., USA for manufacture and sale of Thermal Inkjet Printers for South Asian markets; Product Launches:

Your Company, during the year under review, had launched the following new products / upgraded version of the existing products:

•Upgraded Tropical version of current Continuous Inkjet Printer which will provide customers benefit of improved reliability, better cooling and built in power backup.

•New printers for carton coding which will provide customers benefit of improved reliability, extremely rugged build, ability to handle all fluids types, massive feature set

•Thermal Inkjet Printer

•High Resolution Piezo Inkjet Printer that shall be used for printing text, graphics, and variable barcodes on corrugated shipper cartons

•New version of the Thermal Transfer Overprinter

Your Company has just launched latest Continuous Inkjet Printer model which will provide customer benefits of extensive feature set including touchscreen display, native Unicode support, improved reliability, built in power backup

Keeping in view the broad base and scope of Coding and Marking industry in the market with only few players chasing the vast opportunity and resources, Your Company is currently implementing growth plans to enhance its production in a phased manner. Expansions:

Your Company's Branch Office at Sri Lanka has received statutory clearances and is now functioning. The Branch is expected to expand business activities and operations and contribute to the revenues and bottom-line in coming year.

The construction work for setting up Manufacturing Unit at Guwahati, Assam is completed and has commenced production 25th May 2015.

e)RISKS MANAGEMENT:

The Company is laying down a well-defined risk management mechanism covering the risk mapping, risk exposure, potential impact and risk mitigation process. A detailed exercise shall be carried out to identify, evaluate, manage and monitor both business and non-business risks.

The Company is re-visiting its approach towards risk and shall periodically review and mitigate them through proper policies in place to manage all types of risk majorly financial risk, business risk, inventory pricing risk, regulatory risk and HR risk through review, audit and reporting mechanism.

In line with the new regulatory requirements, the company has formally framed a Risk Management Policy to identify and assess the key risk areas, monitor and report compliance and effectiveness of the policy and procedure. A Risk Management Committee under the Chairmanship of Mr. S. S. Jangid, Independent Director, has also been constituted to oversee the risk management process of the Company.

f)INTERNAL CONTROL SYSTEMS:

Your Company has internal controls in place and internal auditors periodically reviews the same and reports on the effectiveness. The Company now also recognizes the need of reviewing the internal control systems to ensure the same is commensurate with its size, scale and ever increasing complexities of its operations. The Audit Committee and the Board of Directors welcomes the change in the Companies Act, 2013 in terms of emphasizing the importance of internal financial controls and shall take all requisite action to ensure a robust control mechanism is put in place through organization structure, policies and processes with manual and automated control built and tested to ensure safeguarding of its assets, accuracy and completeness of the accounting records, timely brparation of reliable financial information and brvention and detection of frauds and errors.

g)HUMAN RESOURCES:

Your Company takes pride in the commitment, competence and dedication shown by its employees in all areas of business.

The relations between the employees and the Company remained cordial throughout the year. There has been no material development in Human Resources / Industrial relations during the period covered by this Annual Report. As on 31st March 2015, the employee strength of the Company was 468.

h)CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the Company's objectives, expectations, brdictions and assumptions may be 'forward looking' within the meaning of applicable Securities Laws and Regulations. Actual results may differ materially from those exbrssed herein. Important factors that could influence the company's operations include global and domestic economic conditions affecting demand, supply, price conditions, change in Government's regulations, tax regimes, other statutes and other factors such as litigation and industrial relations, natural calamity etc. over which the Company does not have any direct control.