Management Discussion and Analysis Report

Your Directors brsent the Management Discussion and Analysis Report for the year ended 31" March, 2014.

The management discussion and analysis have been included in consonance with the code of corporate governance as approved by The Securities and Exchange Board of India (SEBI). Investors are cautioned that these discussions contain certain forward looking statements that involve risk and uncertainties including those risks which are inherent in the Company's growth and strategy. The company undertakes no obligation to publicly update or revise any of the opinions or forward looking statements exbrssed in this report consequent to new information or developments events or otherwise.

The management of the Company is brsenting herein the Business overview, opportunities and threats by the Company and overall strategy of the Company and its outlook for the future. This outlook is based on management's own assessment and it may vary due to future economic and other future developments in the country.

BUSINESS OVERVIEW

The Company is engaged in processing and manufacturing of Coated Paper.

As you are aware that your Company had suspended the manufacturing operation from June 2009 due to unfavourable market condition and continuous cash losses and Company was under BIFR purview for its rehabilitation since then. Considering the delay in getting approval of Rehabilitation Scheme, Company had increased its paid up capital and turned its net worth positive and has been discharged by BIFR from their purview by order dated 14.02.2013. Now Company is considering its revival plan for the business and looking for some financial partners who can bring in additional money for its business plans.

INDUSTRY STRUCTURE AND DEVELOPMENT

The Indian economy has witnessed flat growth in year ended 3r'March, 2014 and in particular the paper industry has been passing through a difficult period for a reasonable growth in the year ahead.

OPPORTUNITIES AND THREATS:

At brsent operation of the Company are suspended and proposal for revival of business activities with new business plans are under active consideration of the Board.

OUTLOOK

The Company had temporarily suspended its manufacturing activities w.e.f. 14.06.2009. The Company has brought in an investor who had subscribed brference capital and net worth of the Company turned positive, and the Company had come out from the purview of the BIFR. Now the Company is actively considering various business plans for the revival of its business and at the same time approaching various investors/institutions/banks to provide the required finances for carrying out the business activities. So far nothing has been fructified and therefore Company's current year working looks to be negligible.

RISKS AND CONCERNS

The company is exposed to risks from market fluctuation of its major raw material and imported Coated Paper. The Company is also exposed to national price fluctuation for its products.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company had been maintaining a well established procedure for internal control system. There had been a review conducted on regular interval by the Internal Auditors about the financing and operating control at various location of the Company and any, significant findings are reviewed by the Audit Committee of the Board of Directors.

HUMAN RESOURCES / INDUSTRY RELATIONS

The Company valued, human resources as its most valuable assets, among all other assets of the Company. It has been the policy of the Company to actuate the talent by providing opportunities to develop themselves within the organization. The Company continued to have a very cordial and harmonious relations with its employees.

FINANCIALS

The internal fund availability has suffered a setback at the year end with continues losses in the Company. The Company has repaid entire secured loans. With a view to strengthen the working capital which may be required by the Company for restarting of its operation, from Banks, Institutions and Investors.

Due to non availability of sufficient working capital Company has not carried out any activity during the year related to its manufacturing activity.

CAUTIONARY STATEMENT

Statement in the Management Discussion and analysis describing the Company's objectives, expectations or brdictions may be forward looking within the meaning of applicable securities, laws and regulations. Actual results may differ materially from those exbrssed in the statement. Several factors could make significant difference to the company's operation. These include climatic conditions and economic conditions affecting demand and supply, government regulations and taxation, natural calamities etc. over which the company does not have any control.

CORPORATE SOCIAL SERVICE

The Company is committed to its corporate social responsibility and undertakes programmes that are sustainable, have meaningful impact and relevant to local needs.