Management Discussion and Analysis Report 1. Industry Structure and Development and Outlook The Indian economy in 2014-2015 has emerged as one of the largest economic with promising economic outlook on the back of controlled inflation, rise in domestic demand, and increase in investment decline in oil price among other. On demand side growth of final consumption increased to 7.6% in the year 2014-2015 from 6.5% in the year 20132014. Export in 2014-2015 recorded a growth of just 0.9% on compared to 7.3% in 2013-2014. The macroeconomic situation in India has improved significantly during the current year. Acceleration in services and manufacturing growth in the face of subdued global demand conditions points to the strengthening of Domestic demand. However, concern surrounding the Construction and Infrastructure activities in the country still exist. In the light of Government commitments to reforms, a growth of 8.5% is in realm of possibilities in 2015-2016. 2. Opportunities & Threats Tarmat has been the pioneers in airport runway works and airside works. We have also been executing highways and roads. The Government of India has planned for 1,00,000 Km. of National Highway by the end 2017 and USD 19 Billion earmarked for infrastructure development between 2012-2017. In India, the transport sector contributes 6% of the Country's GDP and 70 % of the Shares of the road sector. India has an extensive road network of 4.86 Million Km which is the second largest in the world, more than 60% of freight and 90% Passenger traffic in the country is handled by road. The government of India has launched major initiative to upgrade and strengthening the highway and exbrssway in the country. The private sector has emerged as key players in the development of road infrastructure. In spite of this, the future is not bright as we foresee. Inflation at an alarming rate has created a situation where there is no margin on the projects. Inordinate delay occurs in obtaining clearance from the various government agencies. We are aware that some reputed infrastructure companies withdrew from National Highway projects due to delay in getting all clearances. 3. Internal Control The company has a proper and adequate system of internal controls covering all operational and financial functions commensurate with the size of the company. The company's internal control is designed in such a way that it ensures corporate strategy is implemented, achieve effective and efficient corporate processes, safeguard the value of corporate assets, reliability and integrity of accounting and management data, and operations comply with all existing rules and regulations. All the financial and audit control systems are also reviewed by the Audit Committee of the board of Directors of the company. 4. Operations The company continued its focus on cost reduction and cost control at all levels. 5. Human Resources and Industrial Relations The company understands the value of acquiring the highly intellectual human capital which the company believes is a crucial asset of the company. For this purpose, company follows the strategy "to attract, to retain and tomotivate" the personnel through providing the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. We have focused on to build positive attitude in the employees while working with Tarmat Limited. Tarmat Limited follows the principle - "good performance should be apbrciated by good rewarding." For and on behalf of the Board of Directors: Sd/-CHAIRMAN Date: 08th August, 2015 Place: Mumbai. |
