shri khodiyar industries ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

(A) FINANCIAL PERFORMANCE:

The Company has improved its Financial performance and accounted profit of Rs 4 76 Lacs as compared to Profit for previous year of Rs. 1.19 Lacs and it has been Continuously trying to improve its financial performance in order to strengthen companys financial position in the industry in which it exist and also for the betterment of all stakeholders.

(B) INTERNAL CONTROL SYSTEMS:

The Company has a risk focused, Internal Control System to analyze and report to the management on the day-to-day operations of the Company. Efforts are being made to continuously strengthen it further. The internal control system ensures protection of assets and proper recording of all transactions.

The Internal Audit programme is finalized in consultation with the internal Auditors and the audit committee of the Board. The reports of the internal auditors, observations and recommendations, significant risk area assessments and adequacy of internal controls are periodically discussed and reviewed in Audit Committees observations.

(C) OUTLOOK:

The performance of the Company is expected to remain encouraging and the company looks for the better future with all-round expansion and developments taking place in the paper markets.

(D) INDUSTRIAL RELATIONS:

There is conscious effort on the part of the management to continuously develop knowledge, skills and attitudes of its employees. Throughout the year Industrial relations continued to remain cordial and harmonious in the Company.

(E) CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities, laws and regulations. Actual results may differ materially from those expressed in the statement.

CERTIFICATE ON COMPLIANCE WITH THE CONDITIONS OF CORPORATE GOVERNANCE UNDER CLAUSE 49 OF THE LISTING AGREEMENT(S)

1. We have examined the Compliance of conditions of Corporate Governance by Khodiyar Industires Limited ("the Company") for the period from during the year ended 1st April, 2010 to 31st March, 2011 as stipulated in Clause 49 of the Listing Agreement of the said Company with the stock exchange.

2. The compliance of conditions of corporate governance is the responsibility of the management. Our examination has been limted to a review of the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

3. In our opinion and to the best of our information and according to the explanations given to us, and the representations made by the Directors and the Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.

4. As required by the Guidance Note issued by the Institute of Chartered Accountant of India we have to state that based on the report given by the the Company to the Investors Grievance Committee, as on 31st March, 2011. there were no investor grievance matter against the Company remaining unattended /pending for more than 30 days.

5. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

Date 31st May, 2011	For, Vishves A. Shah & Co.
Place: Ahmedabad	Chartered Accountants
	Firm No:- 121356W
	Sd/-
	(Vishves A. Shah)
	Proprietor
	M. No. 109944