A Industry structure and developments

Electronic Metallised Polypropylene and Polyester film industry is well organised in India. Your Company is one of the five major players in the Country. The market domestically has been growing at about 5-10% per annum.

B Opportunities and threats.

The Company faces excessive competition resulting in reduction in margins and fluctuations in import exchange costs.

C Segment wise or product wise performance

There are no segmental operations as per Accounting Standard 17 issued by the Institute of Chartered Accountants of India.

D Outlook for the company

The Company has successfully paid Financial Institutions all dues. The Company is now looking forward positively to restart commercial production to improve profitability.

E Risks and concerns

The opening up of the Indian economy consequent to India becoming a member of WTO may adversely impact the market scenario.

F Internal control system and their adequacy

The internal Control Systems of the Company are adequate and are constantly reviewed and supported by internal audit.

G Discussion of financial performance with respect of operational performance.

The negative financial performance of the Company is mainly due to its operational performance. Benefits from write backs of Financial Institution has resulted in positive Net profit

H Material development in human resources / industrial relations front, including number of people employed

The Company continues to give thrust to human resource development and industrial relations. The Company effected reduction, maximum of its employees during the year, by paying suitable compensation as per Law. Permanent Employees: 3

Cautionary Statement

Statements in this "Management Discussion and Analysis" contain forward looking statements which may be identified by the use of words in that directions or connoting the same. All statements that address expectations or projections about the future, including, but not limited to statements about the company's strategy for growth, product development, market position, expenditures and financial results are forward looking statements.

These are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realized. The company's actual results, performance or achievements could thus differ materially from those projected in any such forward looking statements, on the basis of any subsequent development, information or events.