UTL Industries Ltd Management Discussions.

INDUSTRY STRUCTURE AND DEVELOPMENT:

M/S. UTL INDUSTRIES LIMITED is engaged in the business of construction activities and supply and engagement of labours in the construction and development of projects. The company is focusing to increase the revenue by adopting better business development policies and managing the business in efficient manner.

EMERGING TREND AND FUTURE OUTLOOK:

Your Company is exploring various possibilities of diversifying into new areas of business such as entered into construction activities. The business activities are largely influenced by several external factors including the international Commodities and financial markets. During the year the demand and the market of Ferrous and Non ferrous Metal products were subdued due to financial crisis and lower margins in the manufacturing sector which adversely affected new projects and expansion plans of companies. Your Company will aggressively make efforts to further improve its performance in construction activities and improve its financials.

FORWARD LOOKING STATEMENTS:

The report contains forward-looking statements identified by words like "plans", "expects", "will", "believes", "Projects", "estimates" and so on. All statements that address expectation or projection about the future, but not limited to the Companys strategy for growth, Market position, expenditure and financial results are forward looking statements. Since these are based on certain assumptions and expectation of future events, the company cannot give guarantee that these are accurate or will be realised.

BUSINESS STRATEGY:

The boards of Directors of your Company are exploring the opportunity to raise and generate the financial resources as to crystallize the plans to expand business activities in India and abroad. Merchant exports offers relatively better margins in trade as compared to the domestic sector currently.

RISKS AND CONCERNS:

Your company is in the business of construction activities and engagement of labour for its projects. The Company is exposed to the fluctuations of economy and industry cycles / downturns. Even though the promoters are very much dedicated and concerned about the development of the company the operations of the company are largely influenced by the foresaid external factors beyond control of the management. To that extent the investors are exposed to the risks and the concerns for the return and investments.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

Your company has adequate internal procedure commensurate with the companys size and nature of the business. The objects of these procedures are to ensure efficient use and protection of the companys resource, accuracy in Financial Reporting and due compliances of statute and company procedure. The existing system provides for structured work instruction, clearly laid down procedures of authorization and approvals for purchase and sale of goods, providing accurate services, reserve responsibility of custodial control with identified personnel, and used of computerized system to ensure control at source.

HUMAN RESOURCE MANAGEMENT:

The company because of its low activity level has few employees but still Your Company firmly believes that its greatest strength lies in the quality of its manpower. The companys "People philosophy" has given it a competitive edge. There is a conscious effort on the part of the management to develop the knowledge, skills and attitudes of its people through variety of training interventions specifically aimed at as individuals need with a specific thrust on enhancing functional / domain knowledge across disciplines. The employees and management relations remained cordial through 2017-18.

OUTLOOK:

As per the latest GDP growth estimates, Indian economy grew sharply in compared to last year, mostly driven by improved economic fundamentals and revision of GDP methodology calculation. Even inflation showed signs of moderation, a welcome sign - wholesale price and consumer price inflation declined. Reduced inflation, falling crude oil prices, stable Rupee, improved purchasing power and consumer spending, higher capital inflows supported by the government policy reforms have already put India on an accelerating growth track an improved the business outlook.

Reforms like e-auctions of coalmines and telecom, FDI hike in insurance, speedier regulatory approvals etc. will be critical growth enablers to de-bottleneck stalled projects, improve the investment outlook and the ease of doing business in the country. Reforms currently underway such as GST implementation, Amendment on Land Acquisition Bill, Labour Reforms, etc. are expected to provide the requisite thrust for growth in the medium- term.

CAUTIONARY STATEMENTS

Statement in the Directors Report and The Management Discussion & Analysis describing the companys objectives, projections, claims, disclaims, estimates, achievements are forward looking statements and progressive within the meaning of applicable security laws ,and regulations. Actual results may vary from these expressed or implied depending on the economic conditions, global recessionary trends Governmental policies, cost inflations, crude oil price movements and all other incidental factors affecting the performance of your company. Industry information contained in the Report, have been based on information gathered from various published and unpublished report and their accuracy, reliability and completeness cannot be assured.