ToThe Members,

The Directors are delighted to present the 32nd Annual Report on the business and operations of yourCompany, together with the audited Statement of Accounts, for the year ended March 31, 2014.

FINANCIAL PERFORMANCE

The important financial highlights for the year are as under:-

1 Turnover & Other Income 21725 24184

2 Material Cost 13637 15350

3 Employment Cost 2230 2219

4 Other Revenue Expenses 3612 2439

5 Gross Margin (PBDlT) 2246 4177

6 Depreciation 167 135

7 Gross Profit 2079 4042

8 Finance & Service Charges 91 113

9 Profit Before Tax (PBT) 1988 3929

10 Profit After Tax (I'AT) 1358 2637

II Net Worth 8271 7158

12 Capital Employed 9102 7794

13 Order booking 27177 15631

14 Book Value Per Share(Rs.) 67.52 58.43

15 Gross Margin/Gross Block (% age) 67.25 125.21

16 PAT/ Net Worth (% age) 16.42 36.84

17 Gross Profit! Capital Employed (% age) 22.84 51.86

18 Gross Margin/Total Employment(Rs.ln lac) 9.32 17.26

19 Added Value/ Gross Sales (% age) 6.19 14.18

STATUS OF COMPANY'S AFFAIRS

Against the backdrop of a challenging business environment, your Company has achieved a top line ofRs. 217.25 crore and bottom line ofRs. 13.58 crore during the financial year ended March 2014.

The Company entered into the Performance MoU with Department of Heavy Industry, Ministry of HeavyIndustries & Public Enterprises (MoHI&PE), Government of India to set the perfornlance targets for theyear 2014-15. It is expected that the Company will receive an Excellent rating, as per the computationsperformed on the unaudited figures. This outcome is subject to final computation of rating by the DPE, forthe year 2013-14.

The MoU performance ofREIL, for the year 2012-13 has been rated as 'Excellent' in respect of the MoUsigned with the Government of India. REIL, and has been awarded the MoU Composite score of '1.130'.REIL is the only Company under Department of Heavy Industry, MoHI&PE, Government of India, NewDelhi to achieve Excellent rating for FY 2012-13.

REIL joined fellow Public Sector Enterprises namely Bharat Heavy Electricals Limited (SHEL), SolarEnergy Corporation of India (SEC I), Hindustan Salts Limited (SSL), Power Grid Corporation of IndiaLimited (POWERGRID) and SJVN Limited to sign the MoU for formation of Joint Venture Company forsetting up of the world's largest 4,000 MW Ultra Mega Solar Power Project at Sambhar, Rajasthan.

In order to address the long felt need to measure the harmful adulteration in the milk, your Company hassuccessfully offered completely indigenous and cost effective solution of Electronic Milk AdulterationTester (EMAT), which detects the harmful adulterants such as Urea, Salt, Soda, Detergent and Liquid soapin raw milk.

Company has entered in providing substantial off-grid Solar Power solution offerings, in large number ofBPL housing schemes, in a project mode in the State of Uttar Pradesh and in collaborative mode in the Stateof Tamil-Nadu.

The Company adopted innovative practices by creation of web portal www.reildairy.comfordairysector.tobe used for complaint redressal solutions by the stakeholders including beneficiaries. This solution alsofulfilled the compliance commitment ofMoU 2013-14.

Your Company continues with its task to built business with long term goals based on intrinsic strength intenTIS of its powerful brands, quality manufacturing process, excellent after-sales-service and customerrelationships. It accords high priority to rationalizing and streamlining operations to bring about betterefficiencies and reduction in costs. The Company continued to be a "MINI RATNA" amongst Public SectorEnterprises.

DIVIDEND

In view of the good operating profits, it is proposed to recommend dividend, out of the amount available forappropriation, of 20% including dividend tax on equity for the year ended 31sl March 2014.

TRANSFER TO RESERVES

It is proposed to transfer Rs. 10.50 crore to General Reserve of the Company as against Rs. 23 crore incorresponding period of previous year.

CREDIT RATING

The Company has obtained its credit ratings from CARE. It has been given a rating 'CARE BBB+' byCARE for its long-term bank facilities. Similarly, for its short-tern] bank facilities the Company has beenassigned 'CARE A3+' rating by CARE

The ratings continue to derive strength from the established operations with long track record and diversifiedproduct portfolio.

BOARD OF DIRECTORS

Appointment

During the year under review, Smt. Veenu Gupta, lAS, Managing Director Rajasthan State IndustrialDevelopment and Investment Corporation Limited, Jaipur (RIICO) has been appointed as Chairman &Director w.e.f. 03.01.2014.

During the year under review, Shri Prakash Tekwani, Financial Advisor, RIICO has been appointed asDirector w.e.f. 11.03.2014.

During the year under review, Shri A. Muralidhar, Director (Production), Instrumentation Limited, Kota hasbeen appointed as Director w.e.f. 27.08.20 I3.

Cessation

Shri Naveen Mahajan, lAS, Managing Director, Rajasthan State Industrial Development and InvestmentCorporation Limited, Jaipur (RIICO) consequent upon his transfer ceased to be as Chairman & Director ofthe Company w.e.f. 03.01.2014.

Ms. Aparna Sahay, Financial Advisor, Rajasthan State Industrial Development and Investment CorporationLimited, Jaipur (RIICO) consequent upon her transfer ceased to be Director of the Company w.e.f.11.03.2014.

The Board of Directors places on record the deep appreciation of the valuable services rendered as well asadvice and guidance provided by Shri Naveen Mahajan and Smt. Aparna Sahay during their tenure.

VISIBILITY

During the year, REIL has played key role through participations in various Exhibitions andSeminars/conferences of National/International level, 111 the fields of Dairy, Renewable Energy,Governance, and Infonnation Technology, such as:

• Dubai Global Convention 20 I3, organized by Institute of Directors (100), on "BusinessExccllence";

• CII National Conference on "Green Building & Renewable Energy";• 42nd Dairy Industry Conference, organized by Indian Dairy Association (IDA), on the theme

"Growth In Indian Dairying & Trading Issues";• 7'h Renewable Energy India 2013 Expo, at India Expo Center, NOIDA;• 4th International Renewable Encrgy Conference organized by World Renewable Energy Technology

Congress (WRETC), on "Innovation in Renewable Energy & its vision for future"; and• Conference by National Productivity Council (NPC) on "Enhancing Productivity and Food Safety of

Dairy Processing Industry".

CORPORATE AWARDS AND RECOGNITIONS

During the year under review, perfonnanee of the Company has been recognized by way of bestowing of thefollowing prestigious awards:

• "PSE Excellence Award 2013" for Operational Excellence.

• Governance Now "PSU Award 2013" Asset Utilization (Winner) & Utilization of Human Resource(Runner up).

• e.lndia "PSE Award 2013" for Financial Resource Management through ICT.

• "Best Employer Award - 20 I2" for 5th time in a row, in the Medium Scale Industries category, byEmployers' Association of Rajasthan.

For Dynamic Leadership at Workplace and following the Best IIR Practices for Sustainability andgrowth of the Company, MD, Shri A.K. Jain has been recognized and rewarded at individual level:• Indian Dairy Engineers' Association (IDEA) during its 8th convention presented a citation, for

meritorious services and professional excellence in Jast 30 years in dairy engineering.

• "CEO with HR Orientation" Award, at Asia Pacific HRM Congress.2013, by Institute of PublicEnterprises (lPE).

• "Super Boss of the Year 2013" Award by World CSR Congress and Super Boss.

• "The Greatest Corporate Leaders of India" Award by World HRD Congress.

QUALITY & RELIABILITY

REIL continues to deliver value to its clients through significant investments in Quality programmes acrossthe process of delivery. Its integrated quality program drives quality and productivity improvements acrossthe organization, by developing and implementing quality-check programmes for the various stages ofprocesses that includes services to the end consumers. REIL is certified undcr various standards to meet thedemand of the clients and deliver improved services to them. These certifications include ISO 9001- 2008and ISO 14001- 2004. The Quality Systcm established and implemented by the Company, has beenrecertified by Del Norske Veri/as, for conformance to the requirements of International Standard ISO9001 :2008

The Government of Rajasthan has included the products manufactured by REIL in the provisions of theGF & AR, for the first time, to facilitate government institutions to undertake direct procurement of productsof REIL. This will pave the way for the customers to avail quality products and dependable technologyservices from REIL.

PRODUCTION

The production, during the financial year 2013.2014 amounted to Rs. 152.83 erore. The Company hasproduced 7464 Nos. of Electronic Milk Analysers. The Company has achieved enhanced production inSolar Photovoltaie Modules due to commencement of production from newly installed fully automatic 12MW PV Module line, which resulted in an increase of 29% in nos. and 41% in MW as compared to theprevious year and also matches on achievement of MoU targets for the year 2013.14, when compared inNos. i.e. 59903 as against I I MW.

DEVELOPMENT OF SUPPORT UNITS & MSEs

REIL as a policy puts emphasis on devclopment of support industries and is now planning to put moreemphasis on rural industrialization. REIL is in close interactions with support industries for their technologyup-gradation which in tum helps in their quality improvemcnt and volume production. REIL is fulfilling allits rcquirement of raw material and components, required for regular production of Electronic MilkAnalyzers and Solar Photovoltaic Modules ctc., from support industries.

REIL is regularly developing support industries by advertising in the news papers and participating in thevendor development programmes organized by MSME from time to time. Procurement from MSEs during2013-2014 is of Rs 42.23 crore.

DISCLOSURE OF PARTICULARS

In terms of Clause (e) of Section 2 I7(1) of the Companies Act, 1956 read with the Companies (Disclosureof particulars in the Report of Board of Dircctors) Rules, 1988, we have to state as under:

Conservation of Energy

REIL closely monitors its energy consumption, and is taking steps to reduce the same systematically, as perits Environment Management Programme.

Efforts are being made to improve the energy efficiency and substitute conventional energy with renewableenergy wherever possible. The Company aims at achieving the 5-Star rating in the coming years.

RESEARCH & DEVELOPMENT:

The R&D activities of the Company are aimed at achieving its corporate mission, by addressing customerexpectations through innovation of new products and up-gradation of existing products/ scrvices to delivercompetitive, economic and reliable products/solutions while protecting the intellectual property rights.

The Company has a Research &' Development center, equippcd with latest equipment and competentmanpower to meet the organization needs. The R&D centre is recognized by Department of ScientificResearch, Ministry of Science & Technology since past two decades.

The Company opcrates mainly in the areas of Dairy Electronics & Solar Photovoltaic by providing reliable,transparent and dependable solutions for socio economic up-liftment of rural India. The focus of R&D is todevelop the products/processes to meet the cmerging nceds of the above sector based on state of arttechnology and upgrade the existing products and services to meet the changing rcquirements. The productsdcveloped in-house and launched during last 2-3 years have not only been able to fulfill the requirements ofthe Indian Dairy industry and Solar Photovo!taic industry but also contributed significantly to achieve longterm business goals of the organization.

Major products developed/upgraded and launched recently include:

a) Electronic Milk Adulteration Tester (EMAT):

Adulteration in milk has been a cause of concern for both the Government and the Dairy Industry. Theindustry was looking for a cost effectivc solution for detection of adulterants in milk to resolve the problems.The available methods based on chemical analysis are time consuming.and involve use of various chemicals.

REIL, being actively involved in the development of dairy industry through delivery of state-of-art solutionsto their requirements, was fully aware of the problem and was looking for a suitable solution that can bcplaced preferably at Society/ BMC level for identification of adulterated milk.

Looking to the need, REIL signed an agreement with CEERI, Pilani for Transfer of Technology (ToT) ofElectronic Milk Adulteration Tester (EMA T). The instrument was further modified! up-graded to meet theneed of the dairy industry and is now ready for commercial launch.

The Electronic Milk Adulteration Tester (EMAT) is a low cost and reliable solution, to discriminatebetween genuine and spurious milk. It detects the harmful adulterants such as Urea, Salt, Soda, Detergentand Liquid soap in raw milk. These adulterants are hazardous to human health.

The instrument is accurate, simple, economical, reliable and rugged and suitable for the Village MilkCollection Centers, Milk Chilling Centers, Bulk Milk Cooling centers (BMC's), Dairy Plants and MilkTesting Laboratories.

b) Automatic Power Factor Correction Controller:

The Automatic Power Factor Correction Controller (APFC) for Power Factor Correction in Low Voltageapplications measures the actual power factor and connects or disconnccts the capacitors to achieve a targetpower factor. The single phase electronic measuring system detects the reactive and active component of thenetwork through the current and voltage path and calculates the phase shift between current and voltage andcompares this with the set target power factor. If there are deviations of the power factor, capacitor stagesare switched in and out by the APFC relay. The contactor control logic is optimized so that the desiredpower factor is achieved with minimum switching operations, thus ensuring an optimized life cycle of thecapacitor bank.

e) Hybrid Charge Controller (2KVA):

A Hybrid Charge Controller is interface between SPV Modules/ Grid Supply and batteries. A chargecontroller limits the ratc at which electric current is added to or drawn from storagc batteries. The intent wasto develop a solution whereby maximum power could be obtained from the voltage and current multipliedtogether (MPPT). The MPPT Chargc Controller generates around 5% to 10% more charging current andimproves the system efficiency. The Hybrid Charge Controller was conceived to facilitate charging ofbatteries in the absence of Sun. i.e. when sun is available, the charging will be done through Solar Panelsotherwise, the charging is done through grid supply.

Hybrid Charge Controller is a microcontroller based design, programmed to control battery charging and itsvarious parameters. It is also' facilitated with RS 232 communication as well as short circuit protection. Italso provides LCD output display and low/high battery voltage indication.

d) Monitor & Control of Temperature & Volume in llMC:

The Automatic Milk Collection System, developed by REIL, is being used for milk collection at MilkChilling Centers (MCC). Some of the MCCs are already equipped with Bulk Milk Coolers. Thc parameters

like temperature and volume of BMC arc manually recorded and there is no hourly logging of temperature.The temperature plays crucial role in maintaining quality of milk.

The product developed, by REIL, measures temperature in real time and maintains a log of temperature atspecific predefined time interval (adjustable) say every 10 minutes. Depending on the temperature of BMC,the compressor can be controlled by AMCU software. The log can be downloaded later on AMCU softwarefor further storage/analysis. Additionally a sensor measures level of milk in BMC which can be calibrated intenns of volume.

I'roduct Up-gradation

,,) Auto EMT:

Innovated & Developed Advance version of Automatic Electronic Milk Tester (Auto EMT) that deploys DCmotor, which is efficient, reliable and lighter in weight. The instrument has advantage of elimination ofmanual operation in the EMT, thereby making it suitable for usc at centers with large number of samplesand managed by women or senior citizens.

Il) DI'U with GI'RS:

The Data Processor Unit is a dedicated unit, which receives and processes the data to generate the reports indesired fonnats. The unit communicates with Milk Analyzer, Electronic Weigh Scale (EWS), RemoteDisplay Unit and Printer attached to it to receive and transmit the data. The GPRS functionality has beenadded to its feature list to transfer data using GSM Cellular network from Collection point to main server.

c) Manual tracking structure for Water Pumping System (WI'S):

The SPY System for Water Pumping uses 16 modules each of250W (Total 3KW) mounted on the structure.The structure was designed with a provision of manual adjustment periodically, to ensure optimum outputfrom the panels. These structures for the solar pancl are so designed that they can be manually adjusted foroptimal tilt throughout the year and can be rotated with a maximum swing of up to 135 degree.

d) Auto tracker structure for 'Vater Pumping System (WI'S):

The Manual Tracking Structure was up-graded to make it auto tracking type with the use of linear actuatorand microprocessor based controller. Auto tracking mechanism is used for automatic movement of modulesat a pre defined interval so as to ensure optimum power output from the SPY Modules. This structure hasbeen designed so as to avoid possibility of shadow of one ann on the other.

e) Solar tracker controller:

In order to make the optimum usc of solar energy for electricity generation, the solar modules and relatedstructure are moved with high precision in ordcr to track the Sun's position, by automatic alignment of solarpanels through solar traekcr controller. Thc output from solar module mounted on such structure is expectedto improve up to 20%.

Besides above, the R&D also undertakes Enginccring & Documcntation that includes initiating measuresto safeguard intellectual property of the Company, process optimization, maintenance of design &development documents & data and issue to various agencies, providing alternate sources for criticalmaterials, cost reduction in existing products through re-engineering, etc

The Company's innovation efforts have becn recognized at National level with prestigious awards likeBest PSU Award 2014 for Excellence Innovation by Bureaucracy Today, SCOPE Award for innovation

2012-13, DSIR National R&D Award 2004, Excellence in Electronics Award 199I & 200 I etc. by variousdepartments/ organizations.

R&D Expenditure

The expenditure on Research & Development (R&D) during the year is as under:

(a) Capital(b) Revenue

(c) Total

(Rs. in Lac)2.00

246.82

248.82

(d) Total R&D expenditure, as a percentage of total turnover, stood at 1.15 %

Foreign Exchange Earnings and Outgoings

During the year the Company has earned a sum of Rs. 278.46 Lac in foreign currency. The Company hasalso used total foreign exchange worth of Rs. 2877 Lac.

Effective corporate governance practices constitute the strong foundation on which successful commercialenterprises are built to last. The Company's philosophy on corporate governance oversees businessstrategies and ensures fiscal accountability, ethical corporate behavior and fairness to all stakeholderscomprising of regulators, employees, customers, vendors, investors and the society at large. The Companybelieves that all its operations and actions must ultimately enhance overall benefits over a sustained period.We will continue to focus our resources, strengths, strategies to achieve the mission and vision. At the heartof Company's Corporate Governance policy is the ideology to transparency and openness in the effectiveworking of the Management and Board.

The Company's governance framework is based on the following principles:

.:. Proactive flow of information to the members of the Board and its Board Committees to enableeffective discharge of fiduciary duties;

.:. Timely disclosure of material, operational and financial information to the stakeholders;

.:. Proper business conduct by the Board, Senior Management and Employees; and

.:. Robust systems and processes for internal control.

The Board of your Company constantly endeavors to set goals and targets aligned to the Company's visionand mission - "To be the lellder in the rural sector for business area of Dairy Electronics, significantplayer in Renewable Energy and in related areas of Information Technology application" and "To putin efforts to meet the existing and emerging needs of customers and serve them throughdeveloping/marketing and delivery of quality products and dependable after sales services"

BOARD AND COMMITTEES:

a) Board of Directors:

As on 31 st March, 2014, the Board of Directors consists of six Directors. During the financial year ended31st March, 2014, five Board Meetings were held on 21th June, 2013, 16th Aug., 2013, 18th Sept., 2013, osth

Dec., 2013 and 27th March, 2014.

The details of composition of the Board as at 31.03.2014, the attendance record of the Directors at the BoardMeeting held during the financial year 2013-14 and at the last Annual General Meeting (AGM), as also thenumber of Directorships, Committee Chairmanships and Memberships held by them in other Companies aregiven here below:

'!rr;c/~ c1 ,'., ,'<h~",'T;;;'. '~m'oJ!' \Wt'8'1lJ.:rr ~';JcG:j)3?:!J.I 1~1J!!T1:mru'Ci:toTITIilllxlo:s 1NJlti~lliJ11)\, '" ';\rriS,r~ lli.!Efol~lJ[h;!j :'ih".i\i);I:'l.:! Clj]l;1JloJ.I11tn,,'~1L!;iib

_-'(irt,nt!-.J ~~'(I'h"lIj~~~'[iTllJ!- [!J'flB~ 'I~.~(i~u;,l)!'~~~1.~(ijl1'i: vjI!11tr:.J:' [;J.!I.f.t.(lill"

G1i..fi'i I •• dB]

Shri. Naveen Mahajan Chairman 3 Present 6 Nil Nil(Part Time)

(Up' to 03.01.2014)

Smt. Veenu Gupta Chairman N.A 8 5 Nil(Part Time)

(W.E.F.03.01.2014)

Shri A.K. Jain Managing 5 Present Nil Nil NilDirector

Sm!. Apama Sahay Director 4 Present Nil Nil(Part time)

(Up. to 11.03.2014)

Shri. Prakash Tckwani Director N.A. Nil Nil(Part time)

(W.E.F. 11.03.2014)

Shri A. Muralidhar Director 3 Present Nil Nil(Part time)

(w.e.r.27 .08.2013)

Shri. S. Jainendra Kumar Director 2 No 5 Nil Nil(Part time)

Shri. M.L. Bhargava Independent 4 Present Nil Nil NilDirector

b) Board Procedure:

The Board generally meets once in a quarter to review the quarterly business and financial performance ofthe Company. Additional meetings are held, when necessary. These Meetings arc scheduled well in advanceand the notice of each Board Meeting is given in writing to each Director.

The agenda and the relevant notes are sent in advance separately to each Director and only in exceptionalcases; the same is tabled at the meeting. The Board reviews the performance of the Company every quartervis-a-vis the targets set by them and helps in the major strategic decisions and policy formulations. Themembers of the Board have access to all information of the Company and are free to recommend inclusionof any matter in agenda for discussion in consultation with the Chairman.

e) Board's Responsibilities:

The Board of Directors oversees the overall functioning of the Company. The Board provides and evaluatesthe strategic direction of the Company, management policies and their effectiveness and ensures that thelong-ternl interests of the stakeholders are being served.

d) Audit Committee:

The Audit committee comprises of Four Dircctors namcly Shri M.L. Bhargava, Shri AX. Jain,Shri A. Muralidhar and Shri Prakash Tekwani. Shri M.L. Bhargava, Independent Dircctor is the Chairman ofthe Audit Committee. During the financial year cnded 31st March, 2014, four Audit Committee Meetingswere held on 21th June, 2013, 161h Aug., 2013, 041h Dec., 2013, 27th March, 2014.

The composition of the Audit Committee and attendance of Directors at Audit Committee Meetings arcgiven below:

Shri M.L. Bhargava

Shri A.K. Jain

Sm!. Apama Sahay

Shri Prakash Tekwani

Shri A. Muralidhar

Chairman

Managing Director

Director (Part timc)Up to 11.03.2014

Director (Part Time)w.e.f 11.03.2014

Director (Part time)w.e.f27.08.2013

4

4

3

2

Broad terms of reference of the Audit Committee:

The Audit Committee oversees the Company's financial reporting process and the disclosure of its financialinfonnation to ensure that the financial statement is correct, sufficient and credible.

Reviewing, with the management, the annual financial statements before submission to the Board forapproval, with particular reference to:

The Power and Role of the Audit Committee shall include the following:

I. To invcstigate any activity within its terms of referencc.2. To seck information from any employee.3. Oversight of our Company's financial reporting process and the disclosure of its financial

information to ensure that the financial statement is correct, sufficicnt and credible;

4. Recommending to the Board, the appointment, re-appointment and, if required, the replacement orremoval of the statutory auditor and the fixation of audit fees;

5. Approval of payment to statutory auditors for any other services rendered by the statutory auditors.6. Review with the management of, the annual financial statements before submission to the Board for

approval, with particular reference to:• Matters required to be included in the Director's Responsibility Statement to be included in

the Board's report in terms of clause (c ) of sub-section 3 of Section 134 of the CompaniesAct, 2013;

• Changes, if any, in accounting policies and practices and reasons for the same;• Major accounting entries involving estimates based on the exercise of judgment by

management;• Significant adjustments made in the financial statements arising out of audit findings;• Disclosure of any related party transactions; and• Qualifications in the draft audit report.

7. Review with the management of the quarterly financial statements before submission to the Boardfor approval;

8. Review and monitor the auditor's independence and performance, and effectiveness of audit process;9. The appointment, removal and terms of remuneration of the chief internal auditor shall be subject to

review by the Audit Committee.

e) Remuneration Committee:

The Remuneration Committee comprises of three Directors namely Shri M.L. Bhargava,Shri Prakash Tekwani and Shri A. Muralidhar. Shri M.L. Bhargava, Independent Director is the Chairman ofthe Remuneration Committee. During the financial year ended 31st March, 2014, one RemunerationCommittee Meeting was held on 23'0 October, 2013.

The composition of the Remuneration Committee and attendance of Directors at Remuneration CommitteeMeeting is given below:

Shri. M.L. Bhargava

Smt. Aparna Sahay

Shri. Prakash Tekwani

Shri. A. Muralidhar

Chairman

Director (Part time)Up to 11.03.2014

Direetor (Part time)w.e.f 11.03.2014

Director (Part time)

Nil

t) Other Major Committees of Directors:

In addition to the above-referred Committees which are constituted pursuant to the Corporate GovernanceCode, The Board has constituted the major Committees of Directors and delegated thereto powers andresponsibilities with respect to specific purposes. The Committees such as the CSR Committee,SO Committee, R&D Committee, Ethics Committee and Steering Committee having representation of

Independent Director and meeting of each of them has been duly conducted during the year. Company has aWhistle Blower Policy where no personnel has been denied access to the audit committee.

MANAGEMENT ANALYSIS AND DISCUSSION

The Management discussion and analysis statements are attached to this report.

PARTICULARS OF EMPLOYEES IN TERMS OF SECTION 217(2A) OF THECOMPANIES ACT, 1956

There was no employee of the Company who received remuneration in excess of the limits prescribed underthe Sec.217 (2A) of the Companies Act, 1956; hence the information may be treated as NIL.

HUMAN RESOURCE MANAGEMENT:

The Company takes pride in its highly efficient and engaged workforce and has been recognized as the BestEmployer in its category, according to the survey undertakcn by Employers' Association of Rajasthan. REILhas cnsured that its Human Resource policies and processes arc transformed and evolved continuously, inorder to stay relevant to the changing environment, enhancement of organizational agility and ensurecompliance with the changing rules and regulations time to time. The progressive HR policies followed bythe Company have been recognized and awarded by the Employers' Association of Rajasthan for manyyears in row. For maintaining the competitive advantage the company considers human resource as strategicto its strategy formulation processes. The induction of the right candidate is critical to the success of theorganization and therefore, substantial emphasis is given on talent acquisition, retention and training &development. To secure our leadership position, we continue to attract, recruit and retain talent - a task wehave always accorded special attention. In knowledge-oriented society, the human capital is a strategicresource, critical to attainment of competitive advantage and the numbers of employees on permanent rollsof the Company at the close of the year were 241.

The highly engaged and committed workforce continues to deliver rise in productivity levels which arc nowmoving towards the mark of RS.I 00 Lac per employee, in the current financial year.

Training & Development

The Training and Development programs arc an integral part of the Company plans for its human resources.The Company deploys adequate resources for continuous learning for its employees. The Company investsin encouraging its employees to acquire newer technical as well as behavioral skills, and benefits fromimproved quality, productivity and achievements in their respective areas. In the financial year 2013-14, atotal of lSI man days of training have been conducted for officers, supervisors and workers of the company,in various aspects of management like Risk Management, Stress Management, Companies Act, SustainableDevelopment, Public Speaking and Presentation Skills, lUI Act, Industrial Safety, Health Management etc.

A lecture on "Gandhian Ideology for Good Corporate Governance" organized, at the works premises on theideas and teachings of Mahatma Gandhi pertaining to eco-conservation, usage of local natural resources,trusteeship concept, customer relationship, team work.

I'rogressive Use of Hindi -

The Company is continuously making vigorous efforts for the propagation and successful implementation ofthe Official Language Policy. The Ollicial Language Implementation Committee regularly monitors andreviews the progress. To inculcate the knowledge of ollicial language, training programme on Hindi Typinghas been designed and implemented. Various competitions, prizcs and incentives were declared by theCompany for promoting the usc of Hindi language. Employces from non-Hindi speaking areas are also

motivated for the same. Company has successfully organized "Hindi Pakhwada" from 14.09.2013 to28.09.2013.

Corporate Social Responsibility-

It has always been REIL's endeavour to act as a responsible corporate citizen, committed to working forwelfare of the society through inclusive growth aimed at capability building, empowerment of communities-Children, Women, Girl Child etc, environment protection, development of backward regions and upliftmentof the marginalized and under-privileged sections of the society. The Company addresses rural energyneeds & energy security through SPY solutions and encourages Dairying as livelihood through deploymentof milk testing solutions. The Company undertakes number of CSR projects every year as per the MOUtargets signed with the Ministry. In the current financial year, the Company undertook the following CSRprojects and incurred an expenditure of Rs. 30.80 lac.

a) As part of the CSR projects done in the year 2013-14, the company has installed and commissioned12 Solar Power Systems for running computers in schools/ health centre/ Post Office/ NGOinstitutions and 10 Solar Blinkers for general public use.

The company has deployed 12 Solar Power Systems of 1.12 KWp capacity and 10 Solar Blinkers at thefollowing locations.

Sr. No. Locations1. From Factory premises to 200 Feet By Pass Sirsi Road, Jaipur (10 Solar Blinkers)

2. PrimarY Health Center, Anand3. Post Office, Asnawar, Jhalawar4. Government Secondarv School, Bardoti(Dudu), via Sambhar lake, Jaiour5. Government School at Banswara, Block Saijangarh, KGBV, Kadiamal6. Government School at Chittorgarh, Block Badi Sadri, KGBV, Kalvannura7. Government School at Dungarpur, Block Aaspur, KGBV, Ghanail!hati8. Government School at Jalore, Block Aahor, KGBV Rama9. Government School at Karoli, Block Sapotrara, KGB V Naroli Dan"10. Government School at Sawai Madhopur, Block Gangaour KGBV, Khanour Baroda11. PrimarY Health Center, Gondia12. Government Inter Colle"e, Chamroli, Unnao13. Government Secondarv School, Mandikhatikan, Jaipur-I, Jainur

b) The company has also organized Free Medical! Health Awareness/ up gradation of knowledge &skills among users of Solar Power Camps in the backward regions/ Block.

The brief details of the camps are as follows:

Sr. No.1.2.3.4.

REIL signed a MoU with CONCOR for supply, installation & commissioning of a Spy Power Plant at theirInland Container Depot (ICD), Kanakpura. Jaipur under their environment sustainability initiative, in linewith the CSR and sustainable guidelines of the OPE.

l~i~ht To Information Aet-2005

With the coming into effect of the RTI Act on 12.10.2005, the Company has complied with the provisions ofthe Act and has placed the details like - name of 1'10, APIa, AApIO, Appellate Authority, on its website.The applications arc replied within time and the Act is followed with due rules and regulations. Aninteractive workshop on RTI Act, 2005, was organized by SCOPE on 71h March, 2014, in Jaipur whereinMD, REIL delivered a concluding remark and also threw light on role of RTI Act in strengthening corporategovernance in pSEs by promoting fairness, transparency, integrity and accountability.

SUSTAINABLE DEVELOPMENT INITIATIVES

Rajasthan Electronics & Instruments Limited is a non-polluting energy efficient electronic manufacturingindustry. The Company operates with a commitment to make the organization a 'Green' organization byadopting and continually improving the practices that support conservation, preservation and revitalisationof the Environment.

Innovation! up-gradation of products and processes and sustainable activities play an important role in thegrowth of the Company. The products and processes arc continuously reviewed and upgraded to makethem environment friendly and energy efficient.The Company has integrated sustainability as a part of its business processes. We realize that for REIL toachieve competitive advantage -and ultimately better profitability-sustainable development needs to be apart of its processes. A systematic approach has been adopted in order to ensure effective implementation ofSustainable Development initiatives.

The I'olicy

The Sustainable Development Policy has bcen defined which guide the actions related to achievemcnt ofsustainable devclopment initiatives. The writtcn policy statement, which is reviewcd periodically forsuitability, also indicates the commitment of the top management towards sustainable development.

The REiL Sustainable Development Policy statcs that "We, at REIL, arc committed to optimize theprocesses so as to make the opcrations Environment Friendly, Socially Responsible and EconomicallySound"

Monitoring Energy Consumption

The energy conslIlI/plioll in manufacturing process and ofiice arca is being monitored continuously. Useenergy efficient cquipment and the energy efficicnt LED lights have resulted in reduction in Electronicmanufacturing process by 6%. Similarly the Energy Performance Index of Office Arca improved to38.68 KWh! sqm from 45.60 KWh/Sqm in2012-13.

Tri- ClIO/oro Elflulle (TCE) is being used as a cleaning agent in both Electronics & SPY manufacturingprocess. As TCE is harmful to the environment being Ozone depleting substancc, it was decided to eliminateits use in phase manner. Accordingly, the SPY manufacturing process was' modified and usc of TCE hasbeen eliminated from SPV manufacturing process. The consumption of TCE was 600 Itrs. as against 1776Itrs. during 2012-13.

Besides above following projects are also bcing implemented/ pursued 111 ordcr to improve sustainablepcrformance ofthc Company.

I. Creating sustainable development awarcness through training by inviting internal & extcrnalfaculties.

2. Monitoring & improvement in energy Consumption per unit production.

3. Monitoring & improvement in energy consumption in office area.4. Monitoring & Improving the Efficiency of DG Sets through periodic maintenance and load

scheduling.5. Reduction in TCE consumption.6. Reduction in Paper Consumption.7. Monitoring of water consumption.8. Maintaining Green Area.9. Waste Management-Segregation & safe disposal waste10. Installation of Light pipes for providing natural light in newly constructed Manufacturing area.II. Preferring RoHS compliant components in manufacturing etc.

Monitoring Mechanism

In order to ensure effective implementation of Sustainable Development Initiatives, a committee of seniorofficials has been nominated that appraises the Board on the progress from time to time.

AUDITORSIn accordance with Section 619(2) of the Companies Act, 1956, Auditors are required to be appointed by theComptroller & Auditor General of India. Accordingly, Mis J.N. Gupta & Co., Chartered Accountants,Jaipur, was appointed as Statutory Auditors for the year under report.

The Auditors' Report is self - explanatory and do not call for any further comments.

DIRECTORS RESPONSIBILITY STATEMENTPursuant to Section 217(2AA) of the Companies Act, 1956, the Directors, to the best of their knowledgeand belief, confirm that:

I. in the preparation of the annual accounts for the financial year ended 31st March, 2014 the applicableAccounting Standards have been followed along with proper explanation relating to materialdepartures;

II. the Directors have selected such accounting policies and applied them consistently and madejudgments and estimates that were reasonable and prudent so as to give a true and fair view of the stateof affairs of the Company as at the end of the financial year 2013- I4 and of the profit of the companyfor that period;

Ill. the Directors have taken proper and sufficient care for the maintenance of adequate accounting recordsin accordance with the provisions of the Companies Act,1956 for safeguarding the assets of theCompany and for preventing and detecting fraud and other irregularities;

IV. that the Directors have prepared the annual accounts for the financial year ended 31st March, 2014 ona 'going concern' basis.

APPRECIATIONS & ACKNOWLEDGEMENT

The Board places on record its sincere appreciation towards the Company's valued customers in India andconfidence reposed by them in the management of the company and look forward to the continuance of thismutually supportive relationship in future. Your Directors gratefully acknowledge the ongoing co-operationand support provided by Central and State Governments and all Regulatory bodies.

The Board also gratefully acknowledges the support and guidance received from various Ministries of theGovernment of India, particularly the Department of Heavy Industry, in Company's operations anddevelopmental plans.

The Directors takes it on record the opportunity and guidance provided by Ministry of New and RenewableEnergy, Government of India, Department of Animal Husbandry, Dairying & Fisheries, Ministry ofAgriculture, Government of India.

The Directors also express their sincere thanks to the Management of National Dairy Development Board,NDDB Dairy Services. State Milk Federations and all leading brands such as Mother Dairy, Amul, SARAS,PAAYAS. Nandani, Verka etc. and Rajasthan Renewablc Energy Corporation Ltd, Rajasthan HorticultureDevelopment Society, Department of Rural Development and Panchayati Raj, Gov\. of Rajasthan, Dept\. ofRural Development. Gov\. of V.P., BREDA, Gov\. of Bihar, MPVVN Gov\. of M.P. and Assam Rifles fortheir valuable support, assistance and the confidence reposed by them in the Company.

The Directors take this opportunity to express their thanks to the Management of Instrumentation Ltd., Kotaand Rajasthan State Industrial Development & Investment Corporation Ltd., Jaipur for their continuedsupport and guidance.

At last, the Board wishes to place on record its deep gratitude to all REIL employees whose enthusiasm,team efforts, devotion and sense of belongingness has made this great Company proud.

FOR AND ON BEHALF OF THE BOARD OF DIRECTOI{S

Sd/-CHAIRMAN

PLACE: )aipurDATE: 19.09.2014

Annexure to Directors' Report

ll) CORPORATE OVERVIEW

Thc Rajasthan Electronics & Instrumcnts Ltd .. Jaipur (REIL) opcrates with an objective to idcntifyingcustomcr's specific needs, translating them into quality products and providing dependable aftcr salcsserviccs. The Company aims at relating its primacy in thc area of rural electronic, non-conventional energysystems & information tcchnology by developing, manufacturing and markcting quality products and byoffering quality services.

Thc Company prepares its financial statements in compliance with the requircmcnts of the Companies Act,1956 and the Gcnerally Accepted Accounting Principlcs (GAAP) in India. Overall the financial statemcntshavc becn prepared on the historical cost basis.

b) GLOBAL ECONOMY

• The outlook for the global economy is "cautiously optimistic". The USA is showing signs ofrecovery from a long recession, Japan's economy is responding to stimulus. Euro zone isreporting a fractional growth of 0.2% and China's growth slowed during 2013-14.

• The pacc of global cconomic activity and world trade gathercd steam in the second half of2013, with dctcrministic impctus from the advancc economics, although their recovericsremain uneven. Whilc export growth improved, domestic dcmand growth remaincd mostlyunchangcd. IMF put the growth in thc advanccd economies at 1.3% in 2013 marginallybelow 1.4% in 2012.

• While the global cconomy recalibration is playing out in a relatively measured way, globalbusiness Icadcrs arc bccoming incrcasingly. confident about thc sustained economic andbusiness growth than they werc last year. Global corporation' performance and investors'confidcncc wcrc rcflccted in thc sharp movcment of world capital markets during 2013.

c) INDIAN ECONOMY

• The Indian cconomy weathered thc global financial crisis well. It quickly recovcred from thedeclinc in FY2008-09 to a healthy growth rate of around 9% annually during FY2009- I0 andFY2010- II. However, the recovery was short-lived as economic growth deceleratcd to 6.2%in FY20ll- 12 and further to 5.0% in FY 2012-13. The Indian economy grew by 4.7% inFY 14. This marks a second straight year of below 5% growth.

• The IMF has cstimated a better ycar ahead for the Indian cconomy per the World EconomicOutlook that it rcleased in January 2014. A series of reform measurcs have been takcnineluding considcring scveral large-scale projects by thc Cabinet Committee on Invcstmcnt.These are collectively projectcd to help rcvive the Indian economy and invcstor sentimcnt. Inaddition, thc resurgcnce of exports, prospects of a rcvival in the global economy andmoderation in inflation point towards a bettcr outlook for the domestic economy duringFY2014-15.

d) INDUSTRY OVERVIEW

In the reeent past, the Indian eeonomy had to overcome varied challenges in its resolve to sustain itseconomic success. The major challenges included unsupportive external environment, domestic structuralconstraints. growth slowdown and inflationary pressure. Companies in this environment are now focusingeven more on their core business objectives, such as revenue growth, profitability and asset efficiency.

The manufacturing industry in India has all the qualities which enhance economic development and increasethe productivity of that industry. It is a highly labor intensive industry and availability of cheap labor makesit a more successful deal after China being much cheaper option. Sustained growth in manufacturing sectoralso depends on vertical as well as back and forth integration alignment with large size opportunities.

Increasing trend towards dairy related products:

Various factors such as rising income, urbanization, ehanging food habits, and increase in population andexport opportunities fuel the demand for milk. According to Associated Chamber Of Commerce andIndustry (ASSOCHAM) in India study. the Indian dairy industry is growing at a rate of 10% per annum. Thevalue of this industry is expected to touch Rs.5,00,OOOcrore by 2015. This will result in the increaseddemand of Company's dairy related products and diversification opportunities.

The National Dairy Plan launched by the Government of India picked up momentum resulted in businessopportunity for the Company's products. This plan aims to increase the productivity of milk animals byadopting focused and scientific processes and help provide rural milk producers with infrastructure togreater access to the organized milk processing sector. Currently milk production is growing @ 4%annually. The above initiatives are expected to generate huge opportunity for the Company to grow.

Increasing trend towards renewable energy:

Global warming, climatic change, incrcasing costs of fossil fuel are driving the demand for renewed focuson Renewable Energy. The government has initiated schcmes and incentives like subsidy, soft loan,concessional duty on raw material imports, excise duty exemptions on certain devices etc, to boost theproduction and use of solar energy systems. The Government of India has launched the "Jawahar Lal NehruNational Solar Mission" wherein total of20,000 MW SPV generating eapacity is envisaged till 2022 againstcurrently installed of about 2700 MW. The provision for Domestic Content Requirement is expected toprovide momentum to local SPY manufacturing industries including REIL. The Off grid & grid interactiverooftop small generating plants also offer a big potential in the perspective of increasing demand for power.The objective of this mission is to touch 20,000 MW by 2022 and establish India as a global leader in solarenergy while giving impetus to domestic manufacturing base through domestic component requirementmode. Given government's recent policy announcement which gives thrust to green and renewable energy,there are commercial opportunities which can be exploited.

e) Opportunities

• Expansion of market for EMT/Milk analyser (multi parameter) in new areas• Expansion of market for use of Spy power packs to power DPMCUlSDPMC/AMCU at primary

milk collection centers.• Commitment to superior quality and process exccution• Parallel market potential due to entry of private dairies and multi state cooperative dairies.• The 15 year National Dairy Plan (NDP) for the period 2007-08 to 2021-22 has a layout of

Rs. 17,371 crore, including Rs. 15.216 crore towards infrastructure for Milk Production, Processingand Marketing. In addition to that. for next 5 year for period 2011-12 to 2015-16, there is market forRs. 200 crore for dairy equipments (DPMCU. Analyser etc.) in NDP plan.

• Formulation of Renewable Energy policy for setting up of Mega Watt size Spy Power Plants byGovt. of India on generation based incentive.

• Off-Grid and Grid.tied rooftop solar projects for rural electrification.• Patronage of MNRE & State Nodal Agencies for Spy power projects in the country.• Global concern on climatic changes & CDM benefits.• Jawaharlal Nehru National Solar Mission is a major initiative of the Government of India and State

Governments to promote ecologically sustainable growth while addressing India's energy securitychallenge. It will also constitute a major contribution by India to the global effort to meet thechallenges of climate change. Under JNNSM which targets 20,000 MW of solar power capacity by2022.

• The Domestic Content Requirement(DCR) in large MW size plants shall encourage domesticmanufacturing and provides addilionalmarket for the Company.

• These plants also open up opportunity in the operation and maintenance sector which is essential forsustained generation to maximize revenues.

Our strateg)'

We seck to further strengthen our position as a significant player with a forward-looking approach andfuture-centric growth strategy, REIL shall continue to make strategic investments in Research &Development, Manufacturing Capabilities, Diversification, Distribution, Marketing, Human ResourceDevelopment, project implementation capabilities and IT , in order to consolidate and expand its premicrposition and ranking in thc industry. To achieve these goals, we seek to:

• Strengthening our strategic partnership with our clients• Increasing our relevance to clients by being able to work in the entire spectrum of their business• Delivering higher business value to clients through the alignment of our structure and offerings to

their business objectives.• Increased emphasis on research and devclopment• Continue to invest in infrastructure and cmployees• Expansion of production capacity to meet \he increasing demand of solar panels• Reduce dependcnee on cell manufacturing by having its own cell manufacturing.• Build up project managemcnt capability to acquire and execute large MW size projects, and• Capacity building for operation and maintenancc business initiative in Spy sector through inereasc

in infrastructure and augmenting manpower for the purposc

t) Outlook, Risks and Concerns:

This section contains forward looking statements that involve risks and uncertainties. The following lists ouroutlook, risks and concerns:

• The industry is increasingly competitive and our profitability and growth will depend on our abilityto compete effectively and maintain a low effeetivc cost of funds.

• Intermittent temporary dip of market share due to competition from unreliable low cost MilkAnalyzer manufacturer/traders.

• Our production is largely dependent on the imports. We arc subject to the risk of reduced supplywhich may result in non completion of our orders.

• We are exposed to the risk of foreign currency exchange rate fluctuation.• Our clients' contracts arc often conditioned upon our performance and most importantly long

duration support services which, if unsatisfactory may result in less revenue than projected.• In the event that governmcnt of India changes its tax policies in a manner that is adverse to us, our

tax expense may materially increase, reducing our profitability.

• Due to lack of vertical integration our suppliers and competitors arc the same entities that can reduccthe possibility of getting big size orders.

As the Indian economy continues to grow, thc outlook for the sector is quite optimistic with ample marketopportunities available for us.

g) Internal control system llDd its adequacy:

The company has well placed proper and adequate systems of internal control and documented procedurescovering all financial and operating functions. Adequate internal control measures are in the form of variouscodes, manuals and procedures issued by the management covering all critical and important activities viz.Purchase, Material, Stores, Works, Finance, and Personnel etc. The Company continues its efforts to alignall its processes and controls with global best practices. In order to ensure that all checks and balances are inplace and all internal control system are in order, regular and exhaustive internal audit of various divisionsare conducted by firm of Chartered Accountants. Internal control system ensures complete compliance withlaws, regulations, standards and internal procedures and systems.

h) Risk management report:

Overview

Our Risk Management framework encompasses practices relating to identification, assessment, monitoringand mitigation of various risks to key business objective. Our risk management practices seek to sustain andenhance the long-tenn competitive advantage of the Company. Our core values and ethics provide theplatform for our risk management practices.

Our risk Management practices seek to sustain and enhance the long-term competitive advantage of theCompany. This system provides a holistic view of the business, wherein risks are identified in a structuredmanner.

Risk management aims to ensure timely and prudent decisions to:

• Maximize positive impacts of opportunities.• Minimise negative impacts of risks.• Convert risks into opportunities.

Key components of REIL Risk management framework:

Risk Categories- we have categorized the risk under following heads:

~ Strategy: Risks relating to the strategies, we formulate on markets, resources and business model.~ Industry: Risk related to the industry changes including competitive structure, technological

advancement, economic environment and regulatory structure.~ Resources: Risk arising from inappropriate utilization of key resources such as human resource,

capital and infrastructure.~ Operation: Risk related to operations of the Company such as acquisition of client, service delivery

and business support activities.~ Counterparty: Risk arising from our association with entities like clients, vendors etc.

Risk Management I'ractiees- The key risk management practices include the following reporting process.

• Risk Identification and Assessment• Risk Evaluation

c

• Risk Reporting and Disclosures• Risk Mitigation and Monitoring• Integration with Strategy and Business Plan

Risks are governed by the Board of Directors, Managing Director and the heads of concerned departments.

i) Analysis and Review

THE ELECTRONICS AND INFORMATION TECHNOLOGY DIVISION

~ Electronics Division:

The Electronics Division occupies the most prominent posItion in the Agro Dairy segment through itscustomer focused approach ensuring prompt deliveries of products and extending proper backup support.The Division is performing business acquisition & business execution activities. Besides achieving salestargets, the focus of the division has been to satisfy its external esteemed customers.

REIL products are continuously providing the desired services to customer through accurate and reliabletesting at society level! milk collection point. This has helped the company to obtain a trustworthy positionamong the milk producers. It has developed lot of trust in milk producers and thus REIL products havebecome vital and critical equipment in all round growth of dairy industry.

The Sector achieved 15% increase, in highly competitive market situation, through innovation andmanufacturing of most advanced data Processing Unit including Electronic Milk Analyzers & Solar EMT(An outcome of two technologies) and largest business share under National Dairy Plan for creating the dairyverticals to make Milk collection Centers self reliant.

The Division achieved a turnover of Rs. 87.12 erore during the year 2013-14 and deployed approximately15029 milk analysis and automation solutions including Electronic Milk Testers, Automatic Milk CollectionUnits, Smart DP MCU & DP MCU and high-end equipments.

The division has received prestigious orders such as:-• 1271 nos. of DPMCU in Haryana, Uttar Pradesh and Andhra Pradesh.• 130 I nos. of Solar EMT in Bihar.• 147 nos. of Milk Analyser with Prinler in Tamil Nadu.• 53 nos. of AMCU-EMT in Bihar.

Apart from these orders, the Division also received NDP orders which comprise of2169 nos. of AMCU andDPU from across the country. The Division also improved the visibility & business presence across theborders through business acquisition in Bangladesh for 48 nos. ofSDPMCU.

The Division has also launched a new product named Electronic Milk Adulteration Tester (EMAT). It is anideal low cost solution to discriminate between genuine and spurious milk. It detects harmful adulterantssuch as Urea, Salt, Soda, Detergent and Liquid Soap which are hazardous to human health. The instrumentis suitable for Village Milk Collection Centres, Milk Chilling Centres, Dairy Plants and Milk TestingLaboratories and addresses the long awaited need for an instrument, which would detect adulteration in rawmilk and prevent its consumption by people.

The Division has been taking active part in activities such as workshops, seminars exhibitions etc., related toimprovements! up gradation of milk collection processes thereby improving the milk quality in the dairyindustry. They are:-

• 8th Convention of Dairy Engineers Association (2rd -3th Sept, 2013)• 42nd Dairy Industry Conference organized by Indian Dairy Association (IDA) at Chennai from 12th-

14th December, 2013.

•• Progressive Punjab Agriculture Summit- Agritech 2014 (16th -19th Feb, 2014)• A National seminar on "Enhancing Productivity and Food Safety of Dairy Processing Industry" •

organized by National Productivity Council (NPC), on 13th March 2014.

The continued patronage of the Company products has placed REIL as a market leader in Indian DairyIndustry sector. This has brought a lot of advantage to our esteem cd customer in terms of working onexisting technology, up gradation of old technologies, developing new technologies, embedding differenttechnologies and thus fulfilling the generating needs mainly for milk analysis, atomization of milkcollection, process, control and monitoring, data management, data analysis and control to achieve theoverall aim of qualitative and quantitative produce of milk and milk products.

The customer satisfaction is directly linked with the performance of the product. To ensure uninterruptedfunctioning of the products, the division is giving due importance to training to customers on systemoperation & maintenance. On-site training programmers have been arranged for customers. This year varioustraining sessions were conducted in Pune, Godhra, Bangalore, Bharuch etc. The trainers are also givenrefreshers periodically to update them. This not only upgrades the skill of employees but also motivates themto perform still better.

The population of company's products is increasing every year. With a population of more than 103546 nos.of Electronic Milk testers, 13298 nos ..of PCIOP Milk Collection Stations and 31905 nos. Data Processor &Milk Analyzers, the company is practically leading the market.

The Division maintains contact with the customers through its Regional Offices & Field MaintenanceCenters, strategically located all over the country to provide technical support. A regional coordinationdivision at headquarters supports the field network.

}> Information Technology Division:

The Company provided the services as State Level Agency (SLA) to the Election Department. Rajasthan forsecond consecutive year for Electoral Rolls Management System (ERMS) and Electoral Photo IdentityCards (EPIC) data management for around 4.27 crore voters of the state of Rajasthan. In this year theParliamentary election and State Assembly election were held, for which the Company additionally providedthe services for voters data migration and security audit of the website of the Election Department.Rajasthan.

The Company had developed and delivered eight application software modules for the Head Office andRegional Offices of Rajasthan State Land Development Bank (Rajasthan SLOB) Limited. The RajasthanSLOB has now awarded clearance for development of II nos. application software modules to be deployedat 36 nos. of Primary Land Development Banks and their 131 Branch Offices.

The Company had also supplied the server hardware to the Rajasthan SLOB for installation of thecentralized database for the application software modules developed and supplied by REIL.

The Company is executing the Core Banking Solution (CBS) project. As part of project execution. theCompany has implemented 402 branches, and completed the Handhold support at 182 branches, out of total426 branches under 29 District Central Cooperative Banks in the state of Rajasthan.

The Company furthered sustained the growth of e-Learning solutions through its IT Gyan Kendras in thestate of Rajasthan, as one of the Program Support Agency (PSA) to the Rajasthan Knowledge CorporationLtd. (RKCL), Jaipur.

The Division also imparted the IT industrial training for the Engineering students of the Computer Science.Information Technology and Electronics branches.

RENEWABLE ENERGY DIVISION

During the year RE Division achieved tumover of Rs. 126.71 crorc in Rcnewable Energy Products.

The Company has bagged a prestigious project from Department of Rural Development, Ullar Pradesh forSolar Power Packs 120 Wp (LED based) to be installed at Lohiya Awas in 48 districts of Ullar Pradesh.This prestigious and large size off-grid solar project (5MW), will fulfill the energy needs of home segment(BPL families) in UP.

RE Division has achieved a sharp growth of 360%, through deployment of 656 nos. SpV Water PumpingSystems in Rajasthan under subsidy scheme of Rajasthan Horticulture Development Society.

The Company has strengthened its presence in North Eastern States by supplying and installing 8xIOO KWpand Ix50 KWp OIT-Grid SPY Power Plants for Assam Rilles with CFA from MNRE under JNNSM PhaseII.

The Company has acquired business through open bidding and also executed an order from MNIT, Jaipurfor 300 KWp Off-Grid SPY Power Plants installed and commissioning at various buildings of the institute.

The Company has marked its presence in the state of Bihar through supply, installation and commissioningof 124 nos. Spy Water Pumping Systems and 158 nos. Spy Street Lighting Systems.

The Company acquired business to other countries in association with an Intemational NGO, NorwegianChurch Aid (NCA), Oslo, Norway, worth Rs 3.23 crore, for electrification of remote villages by export ofmore than 1000 SPY Home Lighting Systems, Solar Lanterns and Work-shop Equipments. During the year,systems worth Rs 2.1 1 crore were cxported against this purchase order.

The Company has also executed work order from Department of Science & Technology, Jaipur andMaharana Pratap College of Technology, Gwalior for 100 KWp Grid Interactive Power Plants installed andcommissioned at their campuses under SECI Roof top Scheme. The Company has supplied and installed2350 nos. Spy Street Lighting Systems under Watershed Department, Govt. of Rajasthan. 900 nos. SpyStreet Lighting Systems were supplied against the order received from GAIL (India) Ltd for their C5Ractivity and also exccuted order for Assam Rilles.

The Division Established Industry Academia interface and PSU-PSU interface through Memorandum ofUnderstanding (MoU) with Indian Institute of Technology (llT), Jodhpur, MNIT Jaipur and CONCOR NewDelhi, and executed prestigious projects in renewable energy.

SYSTEMIC IMPROVEMENT

Improved the visibility and business presence of the Company while maintaining the fund-flow managementwith project-based accounting and better value addition through efforts for acquiring projects with high-value, and reaching to different parts of the country, through business acquisition in North East states,Jammu & Kashmir, Manipur, and Kerala etc. in renewable energy businesses and countrywide through thesales of Dairy IT solutions.