abee info consumables ltd share price Management discussions

MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Companys primary business is to carry on the business of manufacturers, buyers, sellers, importers, exporters, dealers and distributors of computer ribbons, computer stationery and other computer consumables. The company has incurred losses in the current year. The main reason for downside of the growthofthecompanyisthechangeinthetechnologicalpreferences,printing technology and reduction in the usage of Dot Matrix Printers. Your company has been strategically focusing on increasing its revenue through various technological products and systems.

2. OPPORTUNITIES AND THREAT:

The companys management continuously endeavors to maintain and enhance its market presence in the businesses that it operates through. Your management is striving hard to improve its operational efficiency and is also focusing on cost optimizations. The company is in process of promoting its products in the market more efficiently. There is, of course, always a possibility of the time for realization to become more than envisaged.

Due to the significant changes in the printing technology, your company is facing heavy competition from the unorganized sector.

3. OUTLOOK:

The company is in the business of computer stationery, peripherals, and computer consumables. The company endeavors to meet the market requirement and focus on the latest technology relating to the printing preferences.

4. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company maintains adequate internal control system, which provides, among other things, reasonable assurance of recording the transactions of its operations in all material aspects and of providing protection against significant misuse or loss of Companys assets. The company uses an Enterprise Resource Planning (ERP) package, which enhances the internal control mechanism.

5. OPERATIONAL PERFORMANCE:

In the financial year under review, the Companys revenue is Rs.13,747,083/- as compared to Rs.10,186,230/- in the previous year. The company has incurred losses of 733,819/- in the current year. The Company has been able to mitigate the losses in the current year as compared to the losses of previous year which are Rs.6,278,609/-. Your company is in the process of looking forward for more avenue and opportunities to lessen further losses.

6. HUMAN RELATION / INDUSTRIAL RELATION:

Human resource at Abee Info-Consumables continues to be the core strength and always endeavors to work towards having sound & progressive strategies. Fostering people development and harnessing their creative potential to the maximum, identifying and grooming management talent at all levels remains a priority. Your Company is privileged to have the right blend of professionals and harmonious relations among them. The relations in the Company remained cordial throughout the year. The Management wishes to place on record, the cooperation and contribution made by the employees at all levels of the organization to the continued growth of the company.

7. FUTURE PLANS:

The company is taking all necessary steps to re-list the companys trading of Shares on the Bombay Stock Exchange (BSE). The company is also taking continuous follow-ups with the BSE for re-listing its securities back.

The Management of the company is looking forward to various avenues for the growth, new activities and development of the company.

Cautionary statement

Statements in this Management Discussion and Analysis describing the companys objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those either expressed or implied.

FORABEE INFO-CONSUMABLES LIMITED,

SD/-

BADRINARAYAN SOMANI

CHAIRMAN & MANAGING DIRECTOR

Date: 16.07.2012

Place: Pune