Telesys Info Infra (I) Ltd Management Discussions.

a. Industry structure and developments

Information Technology

An infrastructure of computing and communication technology, providing 24-hour access at low cost to almost any kind of price and product information desired by buyers, will reduce the informational barriers to efficient market operation. This infrastructure might also provide the means for effecting real-time transactions and make intermediaries such as sales clerks, stock brokers and travel agents, whose function is to provide an essential information link between buyers and sellers, redundant. Removal of intermediaries would reduce the costs in the production and distribution value chain. The information technologies have facilitated the evolution of enhanced mail order retailing

Infrastructure

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling Indias overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. India has a requirement of investment worth Rs 50 trillion (US$ 777.73 billion) in infrastructure by 2022 to have sustainable development in the country. India is witnessing significant interest from international investors in the infrastructure space.

NBFC

NBFCs have been playing an important role in channelizing the scarce financial resources in capital formation. NBFCs have been supplementing the role of the organized banking sector by bridging the credit gaps, i.e., in meeting the increasing financial needs of the corporate sector, delivering credit to the unorganized sector and to small local borrowers. NBFCs have enjoyed a more flexible structure than banks in the organized sector. The contribution made by these NBFCs in the economic growth as well as in meeting the credit needs of the economy is needed to be appreciated.

b. Opportunities and Threats

Every industry facing threats like fall in international market, low consumption, increase of prices of Input.

To overcome the Company taking initiatives effective utilization resources, developing own mines, upgrading of new technology and new avenues for products and value added products.

c. Segment-wise or product-wise performance

The Company has only one Info-tech.

d. Outlook Infrastructure

India Ratings and Research has maintained a negative outlook for the infrastructure sector for FY18. The infrastructure sector, marred by a host of issues like lack of finance and poorly performing assets, will not do well in the coming fiscal year as well, according to ratings agency India Ratings and Research Pvt. Ltd. Road projects on toll-based revenues and coal-based thermal power sector, which have the highest loan exposure, are more likely to weigh down the overall ratings for the sector.

"The infra sector continues to grapple with high concentration of poorly performing assets resulting in not only fragile coverage metrics but also lower-than-expected equity returns to sponsors

information technology (IT)

Outlook for the Indian information technology (IT) sector is cautiously positive in 2018 as challenges remain n amidst prospects of greater IT spending with global and US economies improving, industry body Nasscom said.

NBFC Sector

Rating agency Icra NSE 1.21 % today revised the outlook on NBFCs retail credit growth upwards to about 17-19 per cent for FY18 and said the growth trend will hold in the current financial year also.

"The growth was supported by a healthy uptick witnessed in some key asset classes namely, commercial vehicles (CV), unsecured credit (including microfinance) and SME credit; these segments together accounted for about 60 per cent of the total NBFC-retail credit The credit growth had dipped, post demonetisation, and remained subdued because of the uncertainties.

e. Risks and concerns

The global economic climate continues to be volatile, uncertain and prone to geo-political risks. The market is recovering slowly and global markets are expected to grow in 2019. The divergence in developed market growth as a result of the US recovery is expected to add to the volatility in the currency markets. In this global backdrop, India is expected to perform better, aided by improving macroeconomic fundamentals. However, execution of the reform and kick starting the investment cycle will be the key determinants of Indias economic performance. Currently inflation is benign, upside pressures on inflation from the vagaries of monsoon or sudden changes in the rupee, could have a significant bearing on inflation.

f. Internal control systems and their adequacy

Internal control is an essential part of corporate governance and any weakness or inadequacy can have a greater impact on the profit of the Company. The Company remains committed in its endeavor to ensure an effective internal control environment that provides assurance on the efficiency and effectiveness of operations, reliability of financial reporting, statutory compliance and security or assets

g. Discussion financial performance with respect to operational performance

The financial performance is very negligible during the year, since there was no production during the year except metal recovery from the slag. h.Material development in Human Resources /Industrial front, including number of people employed

Your Company is value based organization with a culture that promotes empowerment and freedom. In a challenging and competitive environment, the organization believes people are key to success.

i. Research and Development

Your Company continues to derive sustainable benefit from the tradition of Research Development and many such innovation has helped significantly to develop for better product with cost effective.

j. Technology Absorption

The Company maintains interaction with experts globally which has facilitated for better management. Periodical upgradation of Technology and new developments in the Industry.

k. Environment, Safety, Health and Energy Conservation

Your Company has a vision of being Zero accident plant. This has been achieved through a combination of training and upgradation leveraging core technology concepts and safety standards.