Latteys Industries Ltd Management Discussions.

Forward looking statement - Statements in this Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Fon/vard looking statements are based on certain assumptions and expectations of future events.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in government regulations, tax laws, economic developments within the country and such other factors globally.

Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 the Listed Companies are required to furnish Management Discussion and Analysis Report (MDAR) as a part of Directors Report to the Shareholders.

As per Schedule V of SEBI (Listing Obligations and Disclosures Requirements), Regulations, 2015, Annual Report shall contain the below points in the Management Discussion and Analysis Report (MDAR):

• Industry Structure and developments.

• Opportunities

• Risk and Concern.

• Internal Control System and their adequacy.

• Discussion on Financial performance with respect to operational performance.

• Material developments in Human Resources/ Industrial Relations front, including number of people employed.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

I According to a published Industry re[ global water pumps market is projects surpass USD 54 billion by 2020.1 expected to grow at a CAGR of 5 I during 2016-2022. Asia-Pa I accounted for the largest share (42. in the global water pump market, and also anticipated to witness the higi I growth (CAGR 6.6%) during 2016-21 I The water pumps market has b

majorly driven by growth in the residential infrastructures and agricultural activities especial growing economies such as China, India and Brazil, among others. China is the largest ma for water pumps in the region. However, India is expected to witness highest growth in the r future.

(Source: http://www.credenceresearch.com/report/water-pumpsmarket, TechSci Resea Global Water Pumps Market Forecast and Opportunities, 2020)

The water pumps industry has been witnessing a significant growth in recent years on account of factors, including the rise in residential and commercial infrastructure in developing nations. In addition, growth in the industrial sector, power and energy and agricultural sector has also supported the demand for water pumps considerably. Various factors such as the need for more healthy and safe drinking water, water and energy conservation and growing industries have boosted the demand for new and improved water pumps. Availability of a wide variety of water pumps catering to numerous applications and evolution of products for enhanced efficiency and optimum use of power, have proven to be the key promoting factors in the water pump market. The overall water pump market is primarily driven by the consistent rise in the residential and commercial projects in developing nations such as China, India and Brazil, amongst others. Asia and Africa are expected to increase their spending on irrigation and drinking water schemes. This, in turn, is expected to drive the demand for water pumps in the regbns. The impact of rising urban population on water pump market is anticipated to remain high over the next few years

2. OPPORTUNITIES & THREATS OPPORTUNITIES

Agriculture and Building Services comprise 46% of the market by value of Rs. 3910 Cr. This segment of the Indian pump market Is highly fragmented as well as competitive with a large number of small and medium enterprises (SMEs) competing to increase their market share. The biggest markets for agricultural pump sets are the central Indian states of Madhya Pradesh, Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh.

THREATS

Markets across the Board are seeing aggressive competition. Both domestic and global

A capacities out last the demand for various products and commodities. Many sectors especially in domestic market are seeing increased competition. Your Company is prudently trying to deal xiv with this. Inward looking policies of Countries would be a threat to global market.

3. INTERNAL CONTROL SYSTEM

The Company has in place an adequate system of internal control commensurate with its and nature of its business. These have been designed to provide reasonable assurance th assets are safeguarded and protected against loss from unauthorized use or disposition and all transactions are authorized, recorded and reported correctly and the business operations conducted as per the prescribed policies and procedures of the Company. The Audit commi and the management have reviewed the adequacy of the internal control systems and suit steps are taken to improve the same.

4. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMAN(

During the period under review the total turnover of the Company Rs. 245,197,073 as compared to previous year Rs. 270,927,929/-. The Profit before tax of the Company is Rs.6012236/- as compared to previous year Rs. 10745422/- and Profit after tax of the company stood at Rs.4200161/- as compared to previous year Rs. 7919364/-

The financial performance of the company is as follows:

Particulars FY 2019-20 FY 2018-19
Revenue from Operation 24,51,97,073.71 27,09,27,929.34
Other Income 32,25,111.53 32,33,265.13
Finance Cost 1,31,88,703.68 1,09,56,774.26
Employee benefit expenses 3,27,10,397.48 2,29,65,718.00
Net profit before tax 60,12,236.00 1,07,45,421.95
Net profit after tax 42,00,160.79 79,19,363.95

The financial performance of the company is as follows:

Particulars FY 2019-20 FY 2018-19
Revenue from Operation 24,51,97,073.71 27,09,27,929.34
Other Income 32r,25,111.53 32,33,265.13
Finance Cost 1,31,88,703.68 1,09,56,774.26
Employee benefit expenses 3,27,10,397.48 2,29,65,718.00
Net profit before tax 60,12,236.00 1,07,45,421.95
Net profit after tax 42,00,160.79 79,19,363.95

5. Material developments in Human Resources/ Industrial Relations front, including number of people employed

Your Company firmly believes that its human resources are the key enablers for the growth of the Company and important asset. Hence, the success of the Company is closely aligned to the goals of the human resources of the Company. The Company aims to develop the potential of every individual associated with the Company as a part of its business goals. The Company focuses on providing individual development and growth in a work culture that ensures high performance and remains empowering. The Company has employed 125 people (including contractual) strong and dedicated workforce travel abreast of the latest trends.