Hubergroup India Pvt Ltd Management Discussions

MICRO INKS LIMITED ANNUAL REPORT 2009 MANAGEMENT DISCUSSION AND ANALYSIS Financial Highlights: (Rs. in Million) 31/12/2009 31/12/2008 Sales/Income From Operations Domestic (Net)-Including Other Operating Income 6,857.34 6,199.47 Export 6,907.47 7,183.31 PBDIT 2,145.82 2,191.92 Provision for Taxation (Including FBT) 382.81 221.65 Deferred Tax Credit (8.82) (13.80) PAT 1,125.49 902.85 Balance Brought Forward 1,564.27 1,086.01 Profits Available for Appropriation 2,689.76 1,988.86 Appropriations Proposed Equity Dividend 149.23 149.23 Tax on Proposed Equity Dividend 25.36 25.36 Transfer to General Reserve 500.00 250.00 Surplus Carried to Balance Sheet 2,015.17 1,564.27 Performance Review: Consolidated Net Sales grew only by 0.1%, due to global recession and stood at Rs. 16,138 million led by 11% growth in domestic market but 16% (in dollar terms) decline in US market, 3% decline in Rest of the World market (excluding USA and India) and 6% decline in revenue from hubergroup worldwide. Domestic Sales: The Domestic Net Sales and Other Operating Income grew by 11% at Rs. 6,857 million. Your Company continues to maintain its leadership position in the Indian Printing Inks market due to superior products and advantage of hubergroup superior technology. Outlook: Though there are visible signs of revival in global and Indian economy, Printing Ink related markets are not expected to see speedy recovery. Pressure on margin because of increase in input cost and adverse forex fluctuations, which is expected to continue during the coming period. The coming year will be a year of stabilisation and a steady recovery of the growth momentum in several part of the world.