nardhana infrastructure ltd Management discussions

OVERALL REVIEW

Your Company has changed its object to take up the business of projects and infrastructure development pursuant to amendment of the objects. As the company has taken up the new line of business, your directors are focusing towards this field. To unlock the potential and expertise of the management and in view of the available opportunities in infrastructure and related activities, the Company ventured into project and infrastructure development and related business.

The Company being engaged in the Infrastructure and Realty sector and having expertise and support of group developers, it has huge potential for growth.

OUTLOOK, OPPORTUNITIES AND THREATS

Your Company has entered into new arena of the business of projects and infrastructure development. These industries are poised for huge growth for several years to support the GDP growth of India. The Government of India has estimated the GDP to grow approximately at 5.8% for the financial year 2013-14. Accordingly, your Directors expect huge opportunity in these areas.

The same group Company M/s Vertex Spinning Limited has set up Asias Biggest Textile Park in Nardhana Dist. Dhule, Maharastra. The Company proposes to carry out infrastructure activity in Nardhana, which is expected to grow the profitability of the company multifold.

The Company is planned to shift its whole operations to its new project location at MIDC, Nardhana Industrial Area, Dist. Dhule and close its activities from Pithampur Dist. Dhar. As the company have only assets of building and land at the Pithampur Dist. Dhar. The plant and machinery are turned into scrap and these are written down fully in the next financial year. Also the company is not received any subsidy etc. therefore the Company is not in a position to compete with others due to its increase cost of production.

In the process of shifting, the Company has already purchased land situated at MIDC, Nardhana Industrial Area, Dist. Dhule and taking off possession from MIDC Authorities. The power and water has reached to the site and the Company will start building construction activity their. The company is in process to do joint collaboration with a Russian steel industry for its Nardhana Project.

Business risks are evident in any business. However, your Company has tried to mitigate the risk. Among other, competition from market, increases in cost of raw material are the major challenges. However, easy accesses to technical expertise available with its group companies are advantages enjoyed by company.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The company has established internal control systems, which provide reasonable assurance with regard to safeguarding of the Companys assets, promoting operational efficiency and ensuring compliances with various statutory provisions. The internal Audit Department reviews internal control systems in various business processes and also verifies compliance of the laid down policies and procedures. Reports of the internal auditor are reviewed by the senior management and are placed before the Audit Committee of the Directors. The statutory auditors also review their findings with the senior management and Audit Committee.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The key performance indicators providing an insight into the performance of the company vis a vis previous year performance are presented below:

PERFORMANCE

			(Amount in Rs.)
Sr. No.	Particulars	31.03.2013	31.03.2012
1.	Income	19,489,000	238,348,232
2.	Total expenditure	19,740,425	239,953,524
3.	Profit/(Loss) before tax	(251,425)	(1,605,292)
	Add: Prior period income
	Profit before tax after prior period item	(251,425)	(1605292)
4.	Current Tax
	Deferred tax liabilities	332,761	(292,156)
5.	Profit after tax	(584,186)	(1,313,136)

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT

The industrial relations remained good across all locations. Human resource continued to be recognized as the most valued asset. The company is adequately manned with professionals in the field of Engineering, Finance and Administration etc. In order to meet the challenge of growth and new product line, the company has organized in-house training of its staff and workmen to improve soft skills, technical knowledge, work culture and efficient manufacturing practices.

The Company has formed work committee in order to increase workers participation in the management. This initiative has paid dividends and the Company has experienced improvement in efficiencies, overall workmen satisfaction and stability.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the companys operations include raw material availability and prices, cyclical demand and pricing in the companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries in which the company conducts business and other incidental factors.