Apeejay Surrendra Corporate Services Ltd Management Discussions.

APEEJAY SURRENDRA CORPORATE SERVICES LIMITED (FORMERLY APEEJAY SURRENDRA CORPORATE SERVICES PRIVATE LIMITED) ANNUAL REPORT 2009-2010 MANAGEMENT DISCUSSION AND ANALYSIS REVIEW OF OPERATIONS: The operations of the Company, i.e., the merged entity during the year resulted in a Profit before Interest, Depreciation and Taxation of Rs 6391 lacs. The Profit after taxation for the year was Rs 4348 lacs. During the year the Plantation division of the merged entity manufactured 226 lac kgs of tea. The average Price realization was Rs. 120.86 as against Rs. 101.71 in the previous year. Weather condition was favourable throughout the year though end season was not as conducive as expected. The production of Orthodox Tea increased to 19.90 lac kgs as against 6.23 lac kgs in the previous year. The Company continued to give emphasis on sustainable agricultural practices with the objective to improve yield and quality of tea. At present two Gardens of the Company, Budlabeta & Khobong are Fairtrade certified and steps are being taken to obtain the Rainforest Alliance certificate for the Group. Your Companys focus has always been to produce quality teas, which commanded a premium both in the domestic and international market. Feedback received from the buyers in terms of quality was satisfactory. The Uprooting and Replanting Policy of your Company has proved to be a success also. The Company has been availing of the Tea Boards incentive schemes for quality upgradation and for replanting/rejuvenation of the tea bushes. The Packaged Tea and Fruit Infusion division is also very confident to play a significant role in the present competitive market.