Cromakem Ltd Management Discussions.

The Company is in the business of Industrial Machinery, Trading in shares and Finance Activity. The key issues of the Management Discussion and Analysis are given below.

(a) Industry structure and developments

Indian Finance market size is estimated at Rs. 100 Trillion. Approximately one third of this demand is met through Share Market and the balance is met through Financers and lenders. The Industry is mainly dependent on the Investors sentiments. It is now prevailing good and getting healthy.

The fortunes of the Finance industry are, to a large extent, linked to the growth of the Industry and Investment sentiments of the people. The Industry is facing intense competition from the Foreign financial Institution.

(b) Strength

The strength of a company is known from the profit it earns and sound advances. It also depends on the Government policies of taxation. Introduction of Securities Transaction Tax and thereby exempting Long term Capital gain has given a big boost to the market.

( c ) Comment on Current years performance

Receipts : The Receipt has been phenomenal for the first year of its operations.
Operating Expenses : The operating Expenses are well under control.
Operating Profits : The Operating Profits are up to industry mark.
Indirect Expenses : The Indirect Expenses are under control.
Depreciation : Reasonable amount of Depreciation is provided.
Profit before tax : Profit before tax is also an improving trend.
Taxation : Taxation is Provided as per Income Tax Act.
Debtor/Sales : Debtors are reasonable.
Creditors/Purchase : The Company has an established credit.

d) Opportunities and threats

The impact of boom in capital market and real estate market due to government support has provided a boost to the economy and it is set to grow at 7% to 8% supported by a smart growth in manufacturing and services sectors. This brings prosperity to a country and more and more people go for investment in Share market. Outlook for the year 2017 is positive. While the overall demand outlook for the year 2017 remains good, the Company expects the pressure on quality customers to continue due to competition.

(e) Segment wise performance

The business of the Company falls under a single segment.

(f) Outlook

The continual growth in the Finance sector is expected to give the necessary support to the Finance industry. The Company is making all efforts to accelerate growth of its business. It expects to improve its position in the market by focusing on technologically advanced and more profitable products/market segments and working aggressively in the areas of productivity, efficiency and cost reductions.

(g) Risk and concerns

The menace of local Finances and play of angadia has further compounded the problems of the organised Finance Industry as they use inferior way of transferring funds. The

Stock market is also a risky place to put ones fund. The pull back of FIIs will also have an adverse effect on the share market.

(h) Internal control system

Internal audit and other controls have been found to be adequate. These are reviewed periodically by the Audit Committee and found the performance satisfactory.

(i) Developments in human resources and industrial relations

The Company continued to have cordial relations with all the employees.

Place : AHMEDABAD DHAVAL R JADHAV
Date: 01/09/2017 Managing Director