Ultra Wiring Connectivity Systems Ltd Management Discussions.

1. This section shall include discussion on the following matters within the limits set by the listed entitys competitive position:

A) Industry Structure and Developments:

We have been in the business of manufacturing of Couplers, Connectors and allied products for OEMs and Tier 1 manufacturers from past 3 decades, and are glad to announce that our company has now also entered into the diversified fields of automotive section such as manufacturing of Blade Fuse and Wiper- Blades that will help us in enhancing our business manifolds. The Company has been recently listed on SME Emerge Platform of National Stock Exchange of India Limited. Our Company has 3 Manufacturing Plants - Unit 1 & 2 are situated near Delhi in the HSIIDC Industrial Area, Faridabad and Unit 3 in Industrial Model Town Faridabad. Our Company also owns warehouses in Pune and Chennai to cater the Western and Southern markets in India. Recently the Company has imported a specific machine for manufacture of this item which will enable the Company to increase its productivity enormously.

B) Opportunities and Threats:

Due to the Company being listed the scope for public financing has increased. The Company can tap financial market any time it requires thus the scope for increase in productivity and up gradation of technology has increased. The Company has been using unconventional raw materials for its products which is both an opportunity as well as threat. With the installation of the new machine, the Company would compete more effectively and tap the potential market. The Company continues its efforts in innovation and product development.

Threats

Raw material price increase would threaten the financial backbone of the Company. The squeeze on margin caused by increased raw material prices, rising energy cost, transportation cost and labour cost is putting enormous pressure on the Company. Competition from unorganized sector is a threat to be reckoned with.

C) Outlook:

Our Company continues to maintain its relatively stable and progressive growth outlook. The initiative taken by your Company for technology up gradation, reducing overheads and finance costs, improving operating parameters and optimizing operating costs will enable the company to face challenges in coming times.

D) Risks and Concerns:

Automotive Sector in general faces a risk of high fluctuation in demand which the Company has to face and by product innovation and raw material changes the Company is meeting such risk.

E) Internal control system and their adequacy:

In the opinion of the Management, there are adequate internal control system and procedures commensurate with the size of the Company and nature of its business. The Company has engaged the services of highly experienced personnel having vast experience to carry out the internal audit and ensure that recording and reporting are adequate and proper, the internal controls exist in the system and that sufficient measures are taken to update the internal control system.

F) Discussion on financial performance with respect to operational performance:

The Company continues to see marginal growth in its overall performance in the financial year 2018-19 driven by the performance of the segment in which the Company operates. The revenue from operations of the Company is Rs. 1987.80 Lakhs as against Rs. 1771.71 Lakhs in the previous year-a growth of 12.18%. The profit before tax of the Company is Rs. 147.75 Lakhs as against? 163.65 Lakhs in the previous year-a slight decline of 9.71%.

G) Material Developments in Human Resources/lndustrial relations front, including number of people employed: The Company has adequate number of employees at its Registered Office and Factory at IMT and there is no labour unrest.

The Company recognised the importance of human value and ensured that proper encouragement, both moral and financial, is extended to employees to motivate them. The Company maintains a constructive relationship with its employees by creating a positive work environment with focus on improving productivity and efficiency. The Company has a team of qualified personnel contributing to better performance of the Company. The Company enjoyed cordial relationship with workers and staff at all level of management during the year under discussion.

2. Disclosure of Accounting Treatment:

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standards.

Sd/-

SANJAY MATHUR

CHAIRMAN & MANAGING DIRECTOR DIN: 00285032

Place: Faridabad Date: August 23, 2019