Emgee Cables & Communication Ltd Management Discussions.

INDUSTRY STRUCTURE & DEVELOPMENTS:

Among the top stories globally, is the resurgence and consistent bullishness of the Indian economy in future. The Company is in the business of wires and cables. The product is generally used item and demand is continuous. The Company products quality is well known. The Company is maintaining its quality and price despite tough competition. Moreover, in view of Internet and Broadband penetration at larger level, the Industry is going to be benefited in terms of better volumes and realizations. The Company has also expanded its capacity by installing new machines and also developed new products.

OUTLOOK ON OPPORTUNITIES:

The Company is looking for good Government tender which previously successfully handled by the Company. In view of internet, broadband penetration at larger level, the industry is going to be benefited in terms of better volumes and realizations. In the current age where the focus of all the Companies is to build a better brand image for itself, the Company needs to continue the good work in market for years to come, as there is cutthroat competition in the market. In this scenario, the principal of survival is perfectly valid because whoever tightens the grip on its customers will end up making a strong market base for itself. The Company is also focusing more on export business.

OUTLOOK ON THREATS, RISKS AND CONCERNS:

The road ahead is challenging. It is difficult to pen-down the risks and uncertainties with certainty. The initiatives of the Company to provide good quality with competitive rates are expected to provide the necessary drive to meet the challenges and spot the growth opportunities. The raw products prices and validity continues to be the main risk factor. Competition is also a key factor. The Company tries to overcome it by maintaining quality.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

EMGEE identifies a risk based internal audit scope and assesses the inherent risk in the processes and activities of the department within EMGEE and ensures that appropriate risk management limits, control mechanisms and mitigation strategies are in place. The Internal Auditors, via, their internal audit reports, make observations relating to the deficiencies /non-compliance of various audit areas and give suggestions /recommendations and control directives like periodic reconciliation, proper authorizations /approvals, processing controls, segregations of duties, maker – checker approach, etc. so as to mitigate the deficiencies and make the process, procedure, systems and functions more robust, accountable, reliable and compliant. The observations made by the Internal Auditors and the compliances thereof are placed before the Audit Committee.

The Audit Committee reviews adherence to internal control systems and internal audit reports

The Finance Department of the Company is well staffed with experienced and qualified personnel who will play an important role in implementing and monitoring the internal control environment and compliance with statutory requirements.

In the opinion of the Board, The existing internal control framework is adequate and commensurate to the Size and nature of the business of the Company.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Total revenue for the financial year ended March 31, 2017 stood at Rs. 1,755,313,152/- as against Rs. 1,470,813,698/ - for the financial year ended March 31, 2016, further the profit after tax for the financial year ended March 31, 2017 stood at Rs. 7,475,693/- as against Rs. 6,196,953/- for the financial year ended March 31, 2016. The EPS for the financial year ended March 31, 2017 is Rs. 1.38 as compared to Rs. 1.37 for the previous year. The Company has recorded a growth in Profit of 20.63% during the year under review.

LIQUIDITY:

Our primary liquidity requirements are to finance working capital requirements and funding capital expenditure. The financing need is met through a combination of internal accruals, longterm borrowings and short-term borrowings. A detailed cash flow statement forms part of the financial statements.

SEGMENT WISE REPORTING:

The Emgee has only one reportable business segment i.e. Manufacturing and Trading of Wires and Cables and hence does not have any reportable segment as per accounting Standard 17 on "Segment Reporting."

INFORMATION TECHNOLOGY:

The Emgee is committed to improving their operating systems, tools and procedures in order to become more efficient and effective.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Company recognizes the importance of Human Resource Management in realizing its growth ambitions and believes in nurturing talent within the organization to take up leadership positions. The Company believes that the development of employees is one of the most important enablers for an organization. This is being done at both individual and team levels. Sustained development of its employees, professional and personal, is the hallmark of its human resource policies. The Company is giving emphasis to upgrade the skills of its human resources in context of its new ventures in Knowledge Industry. This is in keeping with its policy of enhancing the individuals growth potential within the framework of corporate goals.

The employee relations scenario was also satisfactory during the year.

As at March 31, 2017 the Company Employed 39 employees.

CAUTIONARY STATEMENT:

Statements made in this report describing the Companys objectives, projections, estimates and expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates; changes in the Government regulations; tax laws and other statutes and incidental factors.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
JAIPUR, MAY 30, 2017 (SHRIPAL CHOUDHARI) (ABHINAV CHOUDHARI)
MANAGING DIRECTOR & CEO DIRECTOR & CFO
DIN: 00403872 DIN: 03634672