Gee Gee Granites Ltd Management Discussions

1. Industry Structure and Developments:

After discontinuing the manufacturing facilities, your Company plans to venture into other avenues like trading in granite slabs, blocks and also construction activities. However, the global economic slowdown is posing new difficulties for your Company to venture in to new market. Your Directors hope to see soon recovery.

2. Opportunities and threats

Your Company believes that niche opportunities exist in the global arena which, if exploited, would yield positive results. The Company accordingly plans to build a business model in order to exploit these opportunities.

However, the number of dealers catering to the domestic and international markets is increasing, thus posing a serious threat to the Company.

3. Outlook

With the improvement in global economic conditions, your Company expects a favorable environment in the desired business ventures. The Company also plans to improve its available resources in order to aid the future plans of the Company.

4. Risk and Concerns

The new business ventures in which your Company plans to operate can pose their own problems. Also, other areas of concern include increasing competition and lack of proper infrastructure / resources.

5. Internal Control Systems

The Company has suitable internal control systems which are safeguarding the Companys assets and promoting efficiency. The internal control systems are commensurate with the size and the nature of Companys business and are regularly reviewed and updated by incorporating changes in regulatory provisions.

6. Financial performance

The financial performance of the Company for the year under review is discussed in detail in the Directors Report.

7. Human resources

The Company continues to lay emphasis in nurturing and strengthening the overall development of Human Resources and has always been recognizing manpower as a vital tool in the Companys growth.

8. Cautionary Statement:

Many factors could cause the actual result to be materially different from those projected in this report, including among others, changes in the general economic and business conditions affecting demand / supply and price conditions in the segment in which the Company operates, changes in business strategy, changes in interest rates, inflation, deflation, foreign exchange rates, changes in competition in our industry, changes in the Government regulations, Tax laws and other statutes & other incidental factors. We undertake no obligation to publicly update any forward looking statements, whether as a result of new information, future events or otherwise.