Apple Credit Corporation Ltd Management Discussions

a) Industry Structure and Developments:

Indian economy is likely to grow in the range of 5.4 to 5.9 per cent in 2014-15 overcoming the sub5 per cent GDP growth of past two years, even as poor monsoon and disturbed external environment remain a cause for concern. As regards the downside risks, factors like poor monsoon, the external environment and the poor investment climate can have a bearing on the growth recovery.

b) Opportunities and Threats:

The Management of the Company discussed about the Strengths, Weakness, Opportunities and threats for the same. While slow down in economy and automotive sector is a threat for recoveries ,the expected turnaround in the near future will bring in opportunities for more and more recoveries.

c) Segment wise or Product wise performance:

While LCV sales continue to be in the slow lane, the gradually improving sales of medium and heavy commercial vehicles (M&HCVs) indicate that the new fiscal year should bring new gains for OEMs. With mining activities resuming in certain parts of the country and a larger push for infrastructure spending by the government the CV sector should benefit in 2015-16.

The Company is concentrating on recovery of its old Loans given under Financing of Vehicles and Machinery. The Company has set up required personnel and also taking steps legally to recover its outstanding.

d) Outlook

Prospects for the coming year remain hopeful. The fact remains that until the severe fiscal imbalances are corrected, economic growth will continue to suffer. In recent months,the government has made some course corrections by way of policy responses and spelt out a path of fiscal consolidation..

e) Risk and areas of concern

Market and legal risks involved in recovery process are adequately addressed by the internal control systems and are continuously reviewed and monitored by a dedicated team of people.

f) Internal Control system and their adequacy:

The Company has adequate internal control procedures commensurate with the size of the company and the nature of business. Mr.Subrahmaniya Sivam R.,Chartered Accountant has been appointed to conduct Internal Audit and the findings and recommendations are place before the Audit Committee of the Board regularly. The Audit Committee regularly reviews the audit findings as well as the adequacy and effectiveness of the internal control measures and reports to the Board..

g) Vigil Mechanism / Whistle blower Policy.

As per Sec.177 (9) of Companies Act,and Rule 7 under Companies (Meetings of Board and its powers)Rules 2014,the Company has vigil mechanism policy to deal with fraud or mismanagement if any,Details are given in Corporate Governance Report and also posted on the website.

h) Related Party Transactions:

There are no related party transactions during the year.

I) Material developments in Human Resources / Industrial relations front:

Your Company believes that its greatest assets are its people and training is an investment in long term people development, for organizational excellence. The Company has maintained cordial relationship with its employees throughout the year.