SM Energy Teknik & Electronics Ltd Management Discussions

APPROVAL FOR SALE OF UNDERTAKING

The Board has entered in to a MOU for sale of Textile Machinery Division. The proceeds of the sale have been utilized for clearance of the residual liabilities of the company with an intention to make the company totally debt and liability free. The residual formalities with regard to completion of sale is under progress.. Pending formalities of sale formalities, the unit has been given on rent.

COMMENCEMENT OF NEW BUSINESS

The Board has taken further steps in commercially entering in to the business of Industrial Estate Development as well as redevelopment of realty projects. The Board is hopeful that in the ensuing years these businesses will gather swift momentum which would result in facilitating revival of the companys financial position.

FINANCIAL & OPERATIONAL PERFORMANCE:

During the year under review, the Company saw a fall in its overall performance. The Company has incurred losses of Rs. 1,515 thousands as against Rs. 3,489 thousands in the previous year.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be considered to be forward looking statements and actual results could differ materially from those expressed or implied. Important factors which could make a significant difference to the companys operations include downtrend in the pharmaceutical sector, demand supply conditions, market prices, input components costs and availability, changes in government regulations and tax laws besides other factors such as litigation over which the company may not have any control.