Assambrook Ltd

Pursuant to Clause 49 of the Listing Agreement, we give below the Management Discussionand Analysis Report-

(a) INDUSTRY STRUCTURE AND DEVELOPEMENT

The all India production of tea in season 2010 was marginally lower in comparison tothe previous years production, which was mainly due to unfavorable weather condition andunprecedented pest attack in North East India. India is the largest producer of the blacktea in the world representing 38% of global black tea production. The main tea producersin the world are Kenya, Sri Lanka and other African countries, Vietnam, Indonesia andBangaladesh.

Kenya and Srilanka had a favorable weather condition during 2010 gaining over 100million kgs. of black tea over the previous year. India, however, lost 30 million kgs, ofcrop during 2010 as compared to the previous year.

The market continued to pay better for quality teas during the whole season 2010. Thedifferential in prices between good and plainer types widened considerably in 2010.

(b) OPPORTUNITIES AND THREATS

The production of the black tea in India was more or less stagnant during the season2010. The exports declined by 5 million kg. during 2010 on the back of strong domesticdemand and production shortfall. However, worldwide trends, including India, clearlyindicate a healthy increase in the consumption of black tea. Cultivation and planting oftea has a long gestation period, as such in the near future it is estimated that theproduction of black tea will be stagnant to very insigficant growth, as no furtheraddition to the land under tea cultivation by organized sector has taken place in the last34 years.

Tea crop is dependant on good growing conditions and climate change and generalvagaries of nature do impact production and quality as was the case in 2010 and thesefactors are not in our control. However, good agricultural practices can minimize theeffects of droughts and floods to some extent.

(c) SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company produces CTC teas and continues to undertake steps for quality improvement.

(d) OUTLOOK

It is expected that during the season 2011 production in India to be normal based onthe current weather conditions. Lower carry forward inventory in India, productionshortfall in Kenya and other African countries due to dry weather in the first four monthsof the current year, strong consumption growth should have a positive impact during the2011. Tea prices in India in the first four months were higher as compared to the lastyear. The increase in cost of production per kg. due to revision in wages, abnormalincrease in input costs particularly fuel should be off set with revival of production andbetter realization levels.

(e) INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Internal audit and controls are carried out on a regular basis. The Company has anAudit Committee, the details of which have been provided in the Corporate GovernanceReport. The Audit Committee reviews the audit reports periodically. Suggestion forimprovements are considered and the Audit Committee follows up for implementation ofcorrective actions. The Committee also meets the Company's Statutory Auditors toascertain, interalia, their views on the adequacy of internal control system in thecompany and keeps the Board of Directors informed of its major observations from time totime.

(f) FINANCE AND OPERATING PERFORMANCE

In the current financial year the profit of the Company was Rs. 18.47 lacs against theprevious year profit of Rs.112.11lacs. This was largely due to large amount spent towardsreplanting and other related activities during the year under review.

(g) MATERIAL DEVELOPMENT IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS

The Company has a separate team for monitoring and dealing with matters of staff andworkers welfare and industrial relations. These are being continuously monitored and theindustrial climate has remained satisfactory during the year.

(h) CAUTIONARY STATEMENT

Any policies, objectives, expectations, projections outlined in the Management analysisReport may differ with the actual results in so far as these have a bearing to theclimatic conditions, economic factors, statutory regulations, taxation, force majure etc.