MANAGEMENT DISCUSSION AND ANALYSIS REPORT....>>>>

(Forming part of Directors' Report)

Economic Review & Industry Review

The newly elected government in the center assumed the office with high expectations and in its first year has come out with various new polices, initiatives and national programmes to facilitate investment, foster innovation, enhance skill development and build best-in-class infrastructures. To improve macroeconomic parameters, the government has taken certain policy initiatives such as enhancing of FDI in defence, insurance, real estate, reduction of subsidies, decontrol of petroleum pricing, transparent mechanism for allocation of telecom and natural resources etc. The government has also significantly stepped up budgetary allocation for infrastructure development with several new initiatives like development of Smart cities, Digital India, High Speed Rail Corridors, New Industrial Clusters and has announced ambitious projects such as linking of rivers and Clean Ganga along with the measures for revival of power sector.

Indian economy showed early signs of growth post various initiatives and reform measures undertaken by the Central Government. The Company believes that public and private investment spending to drive the capex growth will be critical to India's growth outlook. The Government has taken measures to boost spending by increasing the capex allocation towards infrastructure projects by reforms in the budget. The Government is also taking various initiatives to unlock stuck investments in the core and infrastructure projects, revive investments from the private sector by reforming policy environment, improving the ease of doing business and accelerating the project related approvals.

India remains rich with potential. With a stable government in place coupled with improving business sentiments and a rapidly emerging environment that is conducive for policy making, the future looks promising especially for the Infrastructure and Construction sector.

We believe that the government's current prudent policies, programs (specially the 'Make in India' and 'Digital India' programme) and commitment to fiscal consolidation open a huge scope for India to grow at faster speed. We further expect that the lower fiscal deficit would definitely help the government in reducing expenditure on interest payout and unblock funds for aggressive investments in growth oriented sectors like infrastructures and energy. The responsibility is now on industry to take full advantage of new policies and more resourceful operating environment. Industry now needs to embark on the new wave of investments to drive India's future growth and development.

Opportunities and Threats, Outlook, Performance and Risks and Concern

The Company understands that in order to ensure consistent business growth, it is indispensable that risks be effectively identified, analyzed and then mitigated by means of appropriate control measures. Your Company is exposed to a number of risks such as economic, regulatory, operational, taxation and environmental risks. Your company foresees some of the risks that may arise in its normal course of its business and impact its ability for future developments include inter-alia, credit risk, liquidity risk, regulatory risk and market risk. Accordingly, your Company has established a framework and process to monitor the exposures to implement appropriate measures in a timely and effective manner.

Internal Control Systems and Their Adequacy

The Company has a proper and adequate system of internal controls to ensure that all resources are utilized optimally, compliances are done regularly and financial reports are accurate. The internal control system is supplemented by an internal audits, review by management and documented policies, guidelines and procedures. The Statutory Auditors and Internal Auditors of the company also interact with the Audit Committee to share their findings and the status of corrective actions under implementation. The Audit Committee regularly evaluates the internal financial controls and risk management systems of the Company.

Human Resource Development and Industrial Relations

Your company lay great emphasis on proper management of human resource and recognizes human assets as a primary source for the accomplishment of its long term goals and objectives. Your company has qualified and experienced staff, ready to take challenges in day-to-day activities. Their unfailing and on-time performance allows us to run the company smoothly.

Cautionary statement:

The above Management Discussion and Analysis contains certain forward looking statements that reflects Company's performance with respect to future events. The actual results may differ materially from those anticipated in the forward looking statement as a result of many factors.