MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Management's Discussion and Analysis report for the year under review, as stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges in India is brsented below.

Industry structure and Development:

The Chemical industry as such is not looking good. The scope for development has come down drastically. The Company has sold off all fixed assets during the year. However, it does not affect its status as a going concern as the Company continues to look for various other opportunities.

Opportunities and Threats:

The Company has decided to close down the manufacturing activity and concentrate on other feasible opportunities available in the market by exploring the possibilities which would aid profit making thereby yielding good potentials for future growth.

Segment-wise or Product wise performance:

The Company has not been able to strike a balance between demand and supply. The Company is looking to diversify into various other opportunities.

Business outlook:

The Company is considering a change in the existing management to aid in exploring the opportunities.

Risk and Concern:

The Company has formulated a policy and process for risk Management. The Company has set up a core group of leadership team, which identifies, assesses the risks and the trends, exposure and potential impact analysis at different level and lays down the procedure for minimization of risks. Risk Management forms an integral part of Management policy and is an ongoing process integrated with the operations.

Company has identified various strategic, operational and financial risks which may impact Company adversely. However management believes that the mitigation plans for identified risks are in place and may not threaten the existence of the Company.

Material developments in Human Resources / Industrial Relations front, including number of people employed:

The Company values and apbrciates the dedication and drive with which its employees have contributed towards improved performance during the year under review. The relations with workers and staff are cordial during the year under review. All issues pertaining to staff matters are resolved in harmonious and cordial manner,

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Company's objectives, projections, estimates and expectations may be 'forward looking statements' 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 the Company's operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates changes in the Government regulations, tax laws, and other statutes and other incidental factors.