Tentiwala Metal Products Ltd Management Discussions

The Managements views on the Company’s performance and future possibilities are discussed below:

INDUSTRY OUTLOOK:

WIRE:-

The Company produces Winding Wires made of Copper which are used in the manufacture of both rotating and static electrical equipments. Though there are number of players in the Industry including many in SSI sector, due to quality of our products and long standing relationship with OEM customers, we continue to remain Industry-Leader. Despite adverse operational conditions prevailing in the country, we have performed well.

The overall capacity utilization of the Industry in the Country is marginally lower than the previous year. This is due to the sluggish demand from Electrical Equipment Manufacturing Sector which did not have adequate orders from Electric-Power Sector and infrastructural projects. Both Industrial & economic structure of the Industry remains affected due to high Cost of input, inflation, substantial volatility in Forex.

ALUMINIUM:-

• For the period between 2010 to 2016, India would be the only country in the world registering a compounded annual growth rate in the consumption of aluminium. This would be a little above 1%. While China will slow down sharply, USA would remain stagnant for this corresponding period.

• Companies in India are investing heavily in the aluminium sector. Hindalco Industries Ltd which is Asias largest integrated primary producer of aluminium has already made a capital expenditure of US$ 5.5 billion, since 2009. This is a sure sign of dynamism in this sector.

• The planned investment of over US$ 1 trillion in infrastructure over the period 202017, as per the 12th five year plan, would provide a gre at opportunity to the aluminium industry.

• Indias consumption of aluminium has grown at a CAGR of 15%, in the last 5 years.

• In terms of aluminium consumption, power sector would lead the way, in the years ahead.

• Strong trends also visible in areas like automotive, food packaging and electrical. For example tetra packs will grow at 22% p.a., in India. Aluminium industry would be a direct beneficiary of this.

• India is importing aluminium products from various countries, across the world. The major items being imported are aluminium processing machinery, raw materials, surface treatment materials and plates/sheets/foils.

THE ALUMINIUM INDUSTRY IN INDIA

India with its abundant supply of quality bauxite and low cost labour has established itself as a low cost producer of primary aluminium. Global primary aluminium production in 2012 was 45.2 million tonnes, with China accounting for an astounding 19.8 million tonnes or 44%. However, in India, the production of primary aluminium has stagnated around the 1.6 to 1.7 million tonne mark for the last three years. The three primary aluminium producers, viz. Hindalco, Vedanta and Nalco have expansion plans as well as greenfield projects that should take the production to 2.5 to 3.0 million tonnes in the foreseeable future.

Import and export of primary aluminium in India have increased over the years and kept pace with each other, making the sector increasingly globalised.

Recycled (secondary) aluminium production has surged in India, driven strongly by the demand for castings from the automotive sector. As the generation of aluminium scrap is limited within the country, scrap imports have grown significantly. However, the recent imposition of 2.5% customs duty on aluminium scrap import will act as a damper and some slow-down in the recycled aluminium sector can be foreseen.

The total aluminium usage (primary plus secondary) in the country is estimated at around 2.5 million tonnes in 2012. The principal user segment in India for aluminium continues to be electrical & electronics sector followed by the automotive & transportation, building & construction, packaging, consumer durables, industrial and other Applications including Defense.

Company is basically dealing with two kind of products i.e.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

Your Company is basically dealing with two kinds of products i.e. Winding Wires made of Copper and Aluminium Extrusion. Despite adverse operating condition, we have almost maintained production level. Sale income is marginally lower. Profit during the year under review is lower due to higher depreciation.

OPPORTUNITIES AND THREATS:

Increasing global and indigenous demand of our product segments is certainly is good growth indicator for us but ever increasing debt & cost of principal raw materials is a worry in the future to come.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS INCLUDING NUMBER OF PEOPLE EMPLOYED:

Industrial relations during the year were generally satisfactory.

INITIATIVES:

At TWPL our main focus is on delivering utmost quality products to our diversified clientele; further to bring down our cost of production we are focusing mainly on capacity expansion so as to bring more economies of scale.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the company objectives, estimates and expectations may be Forward Looking statements within the meaning of applicable laws and regulations. Actual performance may differ substantially or materially from those expressed or implied

DISCLAIMER: THE ABOVE MENTIONED REPORT IS BASED ON INTERNET SOURCE.

FORM NO. AOC-2

(PURSUANT TO CLAUSE (H) OF SUB-SECTION (3) OF SECTION 134 OF THE ACT AND RULE 8(2) OF THE COM PANI ES

(ACCOUNTS) RULES, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto.

1. DETAILS OF CONTRACTS OR ARRANGEMENTS OR TRANSACTIONS NOT AT ARMSLENGTH BASIS

All transactions entered into by the Company during the year with related parties were on an arms length basis.

2. DETAILS OF MATERIAL CONTRACTS OR ARRANGEMENT OR TRANSACTIONS AT ARMSLENGTH BASIS

The transactions entered into by the Company during the year with related parties on an arms length basis were not material in nature.

Place: Mathura	SD/-
Date: 30/05/2016	Radha Pad Tentiwala
	(Managing Director)

ANNEXURE II-A

POLICY ON RELATED PARTY TRANSACTIONS

The Company shall enter into transactions with related parties only on arms length basis, supported by agreement or formal letter. If the transaction is not on arms length basis, then, necessary compliances under Companies Act, 2013 and / or Listing Agreement will be adhered to.

For the purpose of the above clause, transaction with a related party shall be considered material if the transaction / transactions to be entered into individually or taken together with previous transactions during a financial year, exceeds 10% of the annual consolidated turnover of the company as per the last audited financial statements of the company