MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Your Directors have pleasure in brsenting this Management Discussion and Analysis Report for the year ended on 31st March 2015.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS :

Shree Rama Multi-Tech Ltd. (SRMTL) is an Multi Product Plastic packaging products Manufacturing Company for oral care, cosmetics, toiletries, food products and pharmaceuticals with focus on Laminated Tubes, Labels / Stickers, brssure sensitive labels, flexible laminates, plastic/paper cups. The packaging industry in India is growing at 14% per annum. SRMTL has also grown at 2.41 % in plastic packaging business during the year under review.

The Company has positioned itself to meet the multiple needs of its various customers. Major FMCG companies source their different packaging requirements from the Company, which enables it to maintain long standing business relationships. The Company is currently servicing major Global Players viz. Hindustan Unilever, Dabur, Emami, Vicco, HLL Life Care Ltd, African Consumer - Nigeria, Dabur International-Tunisia, Chemi-Cotex-Tanzania, STS Pack Holding-Bulgaria, Macbertan-Sri Lanka, Nagode International, Nigeria, Daraju Industries-Nigeria, Hettigoda Industries- Shri Lanka, to name a few.

The Company is focusing on export market. There is intensive effort to penetrate in African and European Market. The company has not done well in export market as product prices are affected on account of reduced bargaining power with its clients due to intense competition . The exports during 2014-15 stood at Rs 1519.66 lacs against Rs.1772.05 lacs in brvious year. The reduction in export market during 2014-15 was 14.24 %.

2. OPPORTUNITIES, THREATS AND RISK PERCEPTION :

The Company has technological advantage and enjoys good relationship with its key customers comprising of FMCG majors. However, there is growth of small tube manufacturers employing Cheaper Chinese machines which have resulted in unfair competition and shrinking margins.

The rise in prices of raw materials due to volatility in Crude Oil Prices and Exchange rate fluctuations remain to be the key concern. The Company's product prices are affected on account of reduced bargaining power with its clients due to intense competition from other players in the market.

3. BUSINESS OUTLOOK :

There is growing demand and FMCG Markets offer interesting Opportunities. The Company has adopted the strategy of competitive pricing, optimizing capacity utilization, cost control, servicing the customers with high quality and efficient deliveries and innovation in high structure in food packaging, which will be beneficial in improving its top line in long run.

4. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY :

The Company has appointed M/s. Ramesh C. Sharma & Co., Chartered Accountants, an outside agency as its Internal Auditors, who conduct internal audit for various activities. The Company has developed adequate internal control system commensurate to its size and business. The reports of Internal Auditors are submitted to the Audit Committee which further reviews the adequacy of Internal Control System. The Board of Directors also considers the report of the Internal Auditors.

5. DISCUSSION ON FINANCIAL PERFORMANCE WITH REFERENCE TO OPERATIONAL PERFORMANCE :

Financial Performance of the Company has improved. The Company has improved the productivity and cost efficiency but due to rising input costs, the margins are under brssure. The Company has also focused on servicing customer's efficiently by way of reduction in delivery time, improving logistics and speedy development of art works. This has led to greater customers' satisfaction.

6. MATERIAL DEVELOPMENTS IN HUMAN RESROUCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED :

The Company attaches importance to the dignity of employee irrespective of position and highly values the cultural diversities of employees. Human Resource is valued as an extremely important and strategic resource and your Company believes in employee empowerment across the entire organization in order to achieve organizational effectiveness.

Cautionary Statement: Estimates and expectations stated in this Management Discussion and Analysis may be "forward-looking statement" within the meaning of applicable 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.