MANAGEMENT DISCUSSION & ANALYSIS REPORT

(I) INDUSTRY STRUCTURE AND DEVELOPMENTS

The world market for colorants comprising dyes, pigments and intermediates is brsently estimated at approximate value of $27 billion. During the last decade, the industry was growing at an average growth of 2-3% per annum. Whereas other countries in the world market contribute nearly 86% of the global share, India accounts for Rs.14%. Size of the Indian colorants industry is $3.9 billion in FY12 with exports accounting for Rs.65%. The overall production capacity of dyestuffs is 200,000 tonnes per annum. With the ever increasing standards of quality and reliability, Indian dyestuffs industry meets more than 95% of the domestic requirement, out of which textile industry consumes nearly 60% and the remaining is shared by paper, leather & other consumer industries. As far as pigments are concerned, the market size is 115,000 tonnes. The main consumer industries for pigments are printing inks, paints, plastics, rubber, etc., accounting for 70% of the end use.

(II) OPPORTUNITIES AND THREATS.

The worldwide market of dyes and organic pigments is expected to grow 6 percent per year to reach $19.5 billion in 2019 from $14.5 billion in 2014, as per report. Expansion of the middle class, particularly in the Asia Pacific and Africa-Mideast regions, will help drive an acceleration in global consumer spending that will benefit important dye and organic pigment markets such as textiles and plastic products. Rising textile production - the textile market accounted for over half of world dye and organic pigment demand in 2014 - will be the primary contributor to increased demand going forward, while growing plastic output will expand demand for organic pigments.

(III) OUTLOOK OF THE INDUSTRY

Rising consumer spending will drive increased demand for organic colorants in textiles and plastics, while strong growth in global construction activity will boost demand in paints and coatings. Increases in value demand will reflect the growing importance of expensive, higher value dyes and pigments that meet increasingly stringent performance standards and brferences for more environmentally friendly products. Despite the healthy growth, even faster advances will be limited by a moderation in global vehicle production and slow growth in printing inks due to the challenges facing the print media industry.

The fastest growth in dye and organic pigment demand will be in paints and coatings applications, driven primarily by strong advances in construction expenditures in North America and continued growth in the Asia/Pacific region. While the outlook for many organic colorant applications remains healthy, more moderate advances in printing inks, due principally to the growing publication of information in electronic form, will restrain overall dye and pigment demand. Opportunities will exist, though, for dyes and organic pigments that can be used in digital inks added the release

(IV) INTERNAL CONTROL SYSTEMS AND ADEQUACY

Your Company has adequate internal control procedures commensurate with the size and nature of business. These procedures ensure efficient use and protection of the resources and compliance with policies, procedures and statutes.. There is a periodical review mechanism for ensuring the sustenance and up-gradation of these systems.

(V) DISCUSSION ON FINANCIAL PERFORMANCE

During the year Company's turnover has been reduced of Rs. 14669.64, Lacs as compared to last years' sales of Rs. 22137.52 Lacs and profit of the current year also reduces to Rs.142.17 Lacs. compared to profit of Rs 191.64. Lacs for the brvious financial year. Your directors are hopeful of getting better results in the current financial year, however debrciation in the rupee as compared to US$ may have some effect on the Company's business.

(VI) HUMAN RESOURCES

Recognizing that people are an important part of the organization, a major exercise in training and development of employees has been undertaken at all levels. The Company gives a lot of importance to Human Resources activities. These activities have helped to retain and motivate employees of the company to face these difficult years.

(VII) CAUTIONARY STATEMENT

Estimates and expectations stated in this Management Discussion and Analysis may be "forward-looking statement" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those exbrssed or implied. Important factors that could make a difference to your Company's operations include economic conditions affecting demand/supply and price conditions in the domestic and international markets, changes in the Government regulations, tax laws, other statutes and other incidental factors.