Muller & Phipps (India) Ltd Management Discussions.

MULLER AND PHIPPS (INDIA) LIMITED ANNUAL REPORT 2009-2010 MANAGEMENT DISCUSSION AND ANALYSIS OPERATIONS: During the year sales were Rs. 1397 lacs against 4229 lacs in the previous year. We regret to advise you that our main distribution line Colormate terminated the distribution arrangement, which resulted in the shortfall in sales. Our efforts in lining up alternate products did not succeed to our expectation mainly because of the worsening market conditions for consumer products and ever increasing input cost on in house brands. In view of the carried forward losses directors do not recommend any dividend for the year under review. FUTURE PROSPECTS: We are happy to advice during the current year we have finalized distribution arrangements with Simla Chemicals Pvt. Ltd. for handling their Simco brand of hair fixers, shampoos etc and the business has commenced in the Northern Region from June 2010. This brand has existing turnover in this area and we hope to. improve upon the same with vigorous distribution efforts. Renewed efforts are being made to revamp our inhouse products portfolio and sales are improving. We are also in final stage of negotiation with a food products company in the Southern Region. It is hoped that with these additional business we will be in a position to break-even in the operation.