Modern Malleables Ltd Management Discussions.

MODERN MALLEABLES LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS Your Directors are glad to report that the during the year under review the turnover of the Company has increase from 1700.70 lacs to Rs.2432.39 lacs registering as increase of 41% as compared to previous year. Many restructuring initiatives have been taken by the Management in last 18 months and this has shown an improved performance this year. The Company is engaged in Power Sector and diversified in the Tele Communication. Your Company is making all efforts to achieve its core manufacturing activities in order to achieve its objectives. The Company retain its ISO 9002 certified facility. The Company also achieved recognition from Government of India, Ministry of Scientific & Industrial Research for in-house R&D Unit. The Company has also entered into a technical collaboration agreement with M/s. Nuova Elettromeccanica Sud S.p.a of Italy. The members are aware that the Company had made a reference to Honble Board for Industrial and Financial Reconstruction (BIFR) under section 15(i) of the Sick Industries (Special Provision) Act, 1985 (SICA). BIFR had passed an order on 28th March 2001 declaring the Company as Sick Industrial Company under section 3(i)(o) of the Sick Industries (Special Provision) Act, 1985 and appointed the State Bank of India as the Operating Agent for preparation of Rehabilitation Scheme. On the final hearing on 8th April 2003 the Honble Bench had approved the Rehabilitation Scheme and the Scheme was circulated to all concerned creditors. The Company has since able to square off loans on OTS settlement and had then submitted the Draft Revised Modified Rehabilitation Scheme to the Honble BIFR. The modified scheme has been approved by the Honble Bench of BIFR on 5th January 2009. The Honble Bench of BIFR has also reviewed the performance of the Company periodically. As per the directions of the Honble Bench of BIFR the Company has already completed the capital restructuring and the requisite fund has been brought in by the Promoters for the working capital of the Company in the way of fresh equity capital on preferential basis. The Company has also made application to the Stock Exchanges for the listing and trading of equity shares of the Company.