Magna Colours Ltd Management Discussions

MAGNA COLORS LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS Your Directors have the pleasure in presenting the Management Discussion and Analysis Report for the year ended March 31, 2011 INDUSTRY STRUCTURE AND DEVELOPMENT Pharmaceutical, Agro and Chemical sectors form the backbone of the country and need to grow faster. However, because of substantial investment requirements, the growth of the sector is not to the expected level. International Companies have started taking interest in Indian markets and hopefully there will be more growth. OPPORTUNITIES, THREATS AND RISKS The sector is showing healthy signs of growth. The fluctuation of the raw material price put pressure on the profitability. The company is trying to secure orders. SEGMENT WISE PERFORMANCE The Company has currently only one segment (viz. Trading activity) in line with the Accounting Standard on Segment reporting (AS-17). Accordingly, there are no separate reportable segments. INTERNAL CONTROL SYSTEM & THEIR ADEQUACY The company has adequate internal control system commensurate with the size. The committee reviews the implementation of management policies to ensure that transaction has been accurately recorded and promptly reported. OUTLOOK There is expected to be good demand for raw materials in pharmaceutical, agro product and chemical sectors as massive investments have been planned by industry majors. HUMAN RESOUCES & INDUSTRIAL RELATION The company has harmonious relation with its employees. There is continuous emphasis on development of human resources through training. The issues with employees, if any, are resolved in harmonious and cordial manner. TRADING STATUS ON THE STOCK EXCHANGE The companys equity shares are under suspension for trading purposes on Bombay Stock Exchange Limited. WHISTLE BLOWER POLICY The company does not have any Whistle Blower Policy as of now but no personnel are being denied any access to the Audit Committee.