Gujarat Carbon & Industries Ltd Management Discussions.

A. Industry Structure And Development:

After a careful analysis of the MEK business scenario in India, the Company has already exited from this business

B. Opportunities And Threats:

After the exit from the MEK business the management is now exploring possible alternative businesses which the company could profitably pursue.

C. Risks And Concerns:

The risks and concerns would be outlined after the management has finalized the future business strategy and plans.

D. Internal Control System And Their Adequacy:

Considering the absence of production activity and stable revenue stream, the company has not appointed any outside firm for carrying out internal audit.

E. Material Development In Human Resources And Industrial Relations:

Industrial relations had been cordial till such time as production operations were continuing.

F. Cautionary Statement:

This Report deals with the Company’s objective, estimates, expectations and forecasting which may be forward looking within the meaning of applicable Security Laws and/or Regulations. The aforesaid statements are based on certain premises and expectations of future events as such the actual results may differ materially from those expressed or implied. Government Regulation, Tax structure, demand-supply conditions, cost of raw materials & their availability, finished goods prices and economic development within India and the countries with which the Company has business relationship will have an important bearing on the statements in the above report. The foregoing discussions and analysis only sets out the management’s perception of the Company’s operational environment in the coming months, which by its very nature is uncertain and may undergo substantial changes in view of the events taking place later. Thus, the Company should not and need not be held responsible, if, which is not unlikely, the future turns to be something quite different, even materially. Subject to this management cautionary statement this discussion and analysis should be perused.