G R Cables Ltd Management Discussions.

Management Discussion and Analysis Report on the business of the Company as applicable and to the extent relevant is given below:

Industry Structure and Development

The company is primarily engaged in the manufacture of different types of Polythene Insulated Jelly Filled under Ground Telecom Cables (PIJF), Power Cables and Conductors, Signalling Cables, Switch Board Cables, Domestic Flexible and PVC Power and Control Cables. Demand for Telecom Cables is mainly depends on requirement of BSNL and MTNL and policies of the Government. BSNL and MTNL float tenders every year for procurement of Cables for their requirement and finalize the Tenders on competitive basis. There is an excess capacity and falling demand for for Jelly Filled Telecom Cables. So the focus of our company is to convert the existing facilities to modify and manufacture different cables for Railways and Power Cables for Discoms. The Railway cable tenders are floated by Indian Railways and similarly Power cable tenders are floated by different Discoms and State electricity boards (SEBs) and these tenders are finalized on competitive basis.

Opportunities

The wires and cables market in India comprises nearly 40% of the electrical industry and is growing strongly as a result of growth in the power and infrastructure sectors. These sectors have been witnessing robust growth owing to the boost provided by the recent policy and regulatory initiatives as well as ambitious Government schemes. The company also for sees good demand in power cables both for housing and infrastructure development compensating for the decrease in demand for Polythene Insulated Jelly Filled under Ground Telecom Cables (PIJF). The Government has announced an expenditure of 100 Lakh Cr over FY 2019-24 into infrastructure. The increasing emphasis by the government for better infrastructure will further enhance its growth. So the demand for power cables is expected to be increased substantially in coming years.

Threats

Usage of Optical Fiber Cables in high traffic / density areas and introduction of wireless technology by telecom operators, the requirement of JFTC is expected to decline in future.

Future Outlook

The management is exploring various options has identified new areas of business wherein there will be improvement in operation from the next financial year onwards.

Segment-wise/Product-wise Performance

As the company has only one line of product i.e. Wires and Cables, segment-wise or product-wise performance is not applicable for the year 2018-19.

Internal Control Systems and their Adequacy

The Company has an adequate Internal Control System to commensurate with the size of operations of the company. Further, the Audit Committee reviews the procedures of periodically.

Discussion on financial performance with respect to operational performance A. Financial Conditions:

1. Capital Structure:

The Authorized Share Capital of the Company as at 31st March, 2019 is Rs. 3400 Lakhs divided into 340 Lakhs Equity Shares of face value of Rs. 10/- each. The Share Capital of the Company consists of only Equity Shares. The Paid-up Capital of the Company as on 31st March, 2019 is at Rs. 2889.49 Lakhs comprising of Rs. 28894861 Equity Shares of Rs. 10/- each fully paid-up.

2. Reserves and surplus:

The Reserves and Surplus of the Company as on 31st March, 2019 stands at Rs. - 3953.37 Lakhs

3. Secured Loans:

The Secured Loan as at 31st March, 2019 stand at Rs. 19.99 Lakhs

4. Unsecured Loans:

The Unsecured Loan amount as at 31st March 2019 stand at Rs.529.08 Lakhs.

5. Fixed Assets:

The Gross Block stood at Rs.3280 Lakhs and the net block stood at Rs.164.03 Lakhs as at 31st March, 2019 compared to Rs. 3280 Lakhs Previous year 31st March 2018.

6. Revenue:

During the year, the Company achieved sales Rs.0.00 Lakhs compared to Rs. 0.05 Lakhs in the previous year ended 31st March 2018.

Environment and Safety

The company maintains and effects continual improvement in environmental standards and complies with the safety requirements. The company cares for the safety of its employees and safety training is imparted to the employees in the factory. Personal protective equipment is provided to the employees in conformity with statutory requirement.

Human Resources

The company believes that the quality of its employees is the key to its success in the long run and is committed to provide necessary human resource development and training opportunity to equip them with skills, which would enable them to adapt contemporary technological advances.

Cautionary Statement

Statement in this "Management Discussion & Analysis" may be considered to be "forward looking statements" within the meaning of applicable securities laws or regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand-supply conditions, increased installed capacity, finished goods prices, raw materials availability and prices, cyclical demand and pricing in the Companys markets, changes in Government regulations, tax regimes, besides other factors.