External Risks/Threats: 1.

There may be changes in the regulatory framework that could adversely affect the company: The statutory and regulatory framework for the Indian earth moving and construction equipment, railways and defence industry may see changes in the next few years. Changes may severely affect the financial condition. 2. Terrorist attacks and other acts of violence or war involving India and other countries could adversely affect the financial markets and the business: It could adversely affect the equity shares of the company. 3. Political, economic and social developments in India could adversely affect our business: The operations and financial results and the market price and liquidity of the companys equity shares may be affected by changes in Indian Government policy or taxation or social, ethnic, political, economic or other developments in or affecting India. Business Segments: Construction and Mining equipment Industry Defence Product Industry Railway and Metro Product Industry Product segments in Construction and Mining equipment Industry: Crawler Dozers Wheel Dozers Excavators Trucks etc. Competitors: Caterpillar Inc, L&T Komatsu, Ashok Leyland, etc Consumer Markets: Competitive Strengths: 1. Diverse Product Portfolio: Not dependent on any single sector for the revenues. It caters to diverse core segments such as mining, steel, cement, power, construction, road building, etc. 2. Leadership position in mining and construction equipment: significant market share. Manufacture a wide range of products for opencast mining, underground mining and construction sectors. 3. Leading metro coach manufacturer in the country. 4. Strong and experienced management team: experienced senior management team in the engg. And manufacturing industry 5. R&D capabilities: Thrust is on continuous innovation and design and development of new products and technologies to suit the customer requirement by using concurrent engineering practices. During the fiscal 2005, 7T Class Excavator BE7I and economy version Motor Grader BG6O5X have been developed successfully, which cater mainly to the small contractor segment in road and canal building projects. Other successful launches include BLl SDE Discharge Loader, 8H100 Rear Dump Truck and 1 OOT Class Pipe Layer BP100.

6. Increasing global alliances and operations: Tie-ups with reputed international players for the manufacture of draglines, rope shovels, dumpers, etc. Partners: Mining and Construction: Bucyrus International Inc, USA walking draglines & rope shovels 7. High Quality product offering with value added services: product support packages during their lifetime include annual maintenance contracts, service contracts and maintenance and repair contracts. Value-added services include application engineering services encompassing pre- and post-sales, preparation of pre-feasibility reports, equipment selection studies, total fleet optimization solutions and customization of equipment. 8. Stringent Quality norms: ISO 9001-2000 certification.