MANAGEMENT DISCUSSION & ANALYSIS REPORT

Over the last four years, the infrastructure sector in India has witnessed a severe down turn. The slowdown has been very sharp, severe and widesbrad over the last three years. Thus, KMF, like all similar companies in the industry, had to abruptly realign its business from an emphasis on delivering high growth to one that focuses on tightening operations and generating cash flows to meet short term obligations.

Macro Economic Review

While there have been positive signals with the new BJP led government coming to power in 2014, the macro economic recovery is still very gradual. The pace of recovery on the ground has been slow.The central government, suggest that real Gross Value Added (GVA) grew by 7.5% in 2014-15 versus 6.6% in 2013-14. However, the data also shows that much of the improvement occurred because of significantly higher coverage of the services sector, which recorded 10.6% growth in 2014-15. The other positive news is that inflation seems to be under control. Measured in terms of the consumer price index (CPI), inflation reduced to 5.2% in March 2015 from 5.4% in February. So, while there are some positive signals for the India's economic growth, one of the biggest anxieties relate to infrastructure and construction activities, which not only provide the sinews for further economic growth but also provide serious opportunities for increasing employment for the country's huge labourforce. India's Infrastructure Sector

It is amply evident that India needs to invest significantly in creating physical infrastructure of the kind that can support the growth aspirations of the country. If industrial growth is to be ratcheted up to around 10% levels with the kind of trade growth projected, the demand for the provision of power, transportation and logistics will also grow commensurately. The International Monetary Fund (IMF) estimates suggest that overall infrastructure investment will need to increase substantially from around 5-6% of GDP as of today to around 8% during the 2020s and beyond. In so far as public investments are concerned, it is heartening to see that the Government of India has significantly increased allocation of funds by Rs.70,000 crore for investments in infrastructure in the Union Budget 2015-16.

Industry Structure & Development

The real estate sector is quite promising with various advantages like Construction of the multi building projects on the feasible location in the country, good structured national network facilities the boom of construction industry. Real estate development is on high and it is attracting the focus of the industry towards construction.

Your Company is to creating business brmises, residences, buildings that are known for their quality, distinct in design and elegantly crafted. We are focused in our quest to provide our customers, first and foremost, an elegant and beautiful surrounding. We are committed to delivering the expected quality at the promised time. Your company has successfully implemented various projects including KMF Gardens at Kalyan, Golf Manorat Bangalore.

Opportunity & Threats

The Real estate sector is full of opportunities but on the same time it cannot be denied that is also full of threats. Following are few of the examples of both which your company is foreseeing:>   Continuous private sector housing boom will create more construction and opportunities.

> Entry of a number of domestic & foreign players, increasing competition and consumer affordability.

> Fiscal incentives to developers and simplification of urban development guidelines. Long-term market instability and uncertainty may damage the opportunities and brvent the expansion of training and development

Segment-wise or Product wise Performance.

Overvaluation of commercial properties is also a matter of concern. Currently your company is trying to diversify its product and range of industry it caters to. Your company is now also searching possibilities to work with government projects.

> Future Outlook

To achieve international standards of excellence with a focus on quality, aesthetics and customer satisfaction. To provide high quality, safe & innovative construction services in Design, Engineering,Construction with overall Project Management in Hydrocarbon, Metallurgy, Power and Ports Terminals Industry. Completed projects in your Company include "Golf Manor" "Royal Manor". Our other projects include a star hotel in Dalhousie, Himachal Pradesh and a residential apartment complex namelyKMF Gardens atKalyan, near Mumbai.

> Risks & Concerns

The concerns listed above in the point Opportunities & Threats will continue to be risks and concerns for your company. The company will leave no stone unturned to improve the net worth in coming year.

Financial Performance

The construction of Wing B of Purab Manor Project at Bangalore is complete During this year turnover of your company is Rs. 33678689 /- & profit is Rs.14,16,734/-.Net worth of your company as on 31st March, 2015isRs. 10,48,89,289/-

Internal Control System

Your company has adequate internal control systems commensurate with its size and operations, although notdocumented.

Human Resources /Industrial Resources

The Company believes that the human capital is the key engine for its growth and competitiveness. It continues to focus on HR practices, systems and people development initiatives that encourage continuous learning on the job and meritocracy and which enhance the organization's capability. The changing business scenario necessitates continuous development of employees in terms of skills and competencies in line with the Company's requirements.

Cautionary Statement

The above Management Discussion and Analysis contains certain forward looking statements within the meaning of applicable security laws and regulations. These pertain to the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements.