Kaytee Switchgear Ltd Management Discussions.

KAYTEE SWITCHGEAR LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS WORKING RESULTS: The Companys working has resulted in for the year ended for the year ended 31.3.2008 31.3.2007 Rs. in million Rs. in million Gross profit including Extra ordinary item Amounting to 397.191 371.544 Less : Provision towards: - Deprecation & other Provisions 98.509 225.328 - Taxation 27.500 5.000 Profit for the year 271.182 141.216 OPERATIONS: During the year under report, your Company has achieved a turnover of Rs.4042.14 million (previous year Rs.3310.97 million). The turnover has increased by 22.25% as compared to previous year. The Company has made a profit of Rs.271.18 million (previous year Rs.141.22 million). OUTLOOK: Outlook for the Company is good. The core industrial sectors like steel, cement, mining, power generation, telecom, railways etc have increased their capacity utilization which is providing a steady market for the products of the Company. Further with India being recognized as manufacturing hub for global supplies there is a scope for increase in demand for the products of the Company. Your Company is having orders in hand valued at Rs. 1790.00 million. Scheme of Arrangement and amalgamation of the Company with Kirloskar Electric Company Limited. Your Company proposed amalgamation of the Company with M/s. Kirloskar Electric Company Limited (KECL). The proposed Scheme is in the larger interest of the companies, their shareholders, creditors, employees and the general public. The restructuring would result in unlocking and enhancement of shareholder value through the integration of your Company with KECL. In terms of the said Scheme with effect from the Appointed date the Company shall be amalgamated with KECL. The Petition filed by your Company pursuant to the provisions of sections 391-394 of the Companies Act, is pending before the Honble High Court of Karnataka.