KPT Industries Ltd Management Discussions.

KULKARNI POWER TOOLS LIMITED ANNUAL REPORT 2008-2009 MANAGEMENT DISCUSSION AND ANALYSIS MANAGEMENT REVIEW/MANUFACTURING FACILITIES: As you are already aware, world economy went into recession led by U.S.A., our economy has suffered relatively less. Nevertheless, from Diwali 2008 until May, 2009 the market was dull. With the new Congress lead UPA Government assuming control of Government, there is an agreement that growth will resume in a six to twelve months. We see this slowdown reflected in our results, although we sold 15% more number of power tools. We have made a decision to take over Marketing and Selling ourselves, mainly to have direct pulse of the market in our hands. We believe, it is in the Companys long term interest. This may result in some disturbance initially and may impact our profitability in the short term. We have made investments in winding shop to increase motor production. During the year under review, industrial relations continued to be harmonious. EXPORTS: Your Company is making strong efforts in the export market. The FOB value of exports during the year is Rs. 996.23 lacs which was Rs.966.58 lacs in the previous year, showing a growth of over 3.07%.