PALCO Ltd Management Discussions.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Company had no operations during the year, as the assets of the Company had been taken over by Asset Reconstruction Company (India) Limited (ARCIL) under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and hence the Board could not discuss and analyze the following:

1. Industry Structure and Development

2. Opportunities and Threats

3. Future Outlook

4. Risks and concerns

5. Internal Control Systems and their adequacy

6. Material Developments in Human Resources / Industrial Relations Front, including number of people employed:

7. Discussion on financial performance with respect to operational performance: