MANAGEMENT DISCUSSION AND ANALYSIS

1 (a) Industry Structure & Development

The Vitrum Glass Division is manufacturing Amber Glass Bottles for the Pharmaceutical Industry by using its production capacity fully. The division carries out R&D activities regularly in various manufacturing operations with the objective of improving quality, reducing energy consumption and improving the overall efficiency/productivity.

(b) Opportunities & Threats

The Company has developed Industrial Properties at its Lower Parel and Vikhroli brmises for the use of office purposes and entered into Leave & License Agreements with various Multinational Companies and Banks. The demand from the Pharmaceutical Industry for Glass Containers manufactured by Vitrum Glass Unit is sufficient and hence the Company does not foresee any risks for the product in near future. The revenue of the Divisions involved in agency businesses for marketing the products manufactured by foreign principals are dependent on the Government Policies declared from time to time. In the business of Frozen & Chilled Foods, the Company is a Market Leader in India in most of the products have strong distribution network and valuable support from suppliers and clients. The Company is getting good response / support in the areas of providing office space on Leave & License basis, developing the property at Ambernath and providing flexible and customizable work space solutions.

(c) Segment-wise or product-wise performance

The Company is engaged in the following activities:

(1) Manufacture of Amber Glass Bottles for the Pharmaceutical Industry.

(2) Rebrsenting a number of foreign manufacturers of Precision Machine Tools, Measuring Instruments, Testing Machines, designing and marketing of Industrial Equipments.

(3) Imports Frozen & Chilled Foods from around the Globe and distribute it to leading chains of Five / Four Star Hotels and leading Restaurants.

(4) Provides office space on Leave & License basis to multinational companies and banks.

(5) Developing land admeasuring to 35 Acres at Ambernath with the consent of MIDC.

(6) Provides flexible and customizable work space solutions to clients to run their business without increasing massive start-up costs and over-head expenses.

(7) The performance of all these Divisions is reviewed in the Directors' Report.

(d) Outlook

Overall outlook for the Company's various activities is satisfactory. The Division-wise outlook and details are given in the Directors' Report.

(e) Risks and concerns

The Company is investing its funds only for the purposes of normal business activities and there are no financial risks except normal business risks. The Company is regularly taking adequate insurance policies for covering the risks to Company's properties.

(f) Internal control systems and their adequacy

Mr. R. C. Shah, Vice President is the Internal Auditor who is carrying out the internal audit functions of the Company. He regularly carries out the internal audit of all the Divisions of the Company and submits the report to the management from time to time and immediate corrective actions are taken on the recommendations in such reports.

(g) Discussion on financial performance with respect to operational performance

The General Manager-Accounts daily circulates drawing power statements to the management. The said statement discloses daily transactions of cash flow / outflow, Loans / Advances Division-wise, receivables positions etc. and required actions are taken immediately to bring the financial position in order so that no inconvenience is caused to any Division in carrying out its business activities smoothly.

(h) Material developments in Human Resources / Industrial Relations front, including number or people employed.

During the year under review, cordial relationships were maintained between the management and the employees. The Directors place on record their apbrciation for the support and contribution of all employees of the Company. The number of people employed are shown in the Annexure to the Directors' Report.