Vivid Global Industries Ltd Management Discussions.

A. Industry Structure and Development

The Company is engaged in the business of production of dye intermediates particularly in N-Methyl J. Acid, derivatives of J.Acid, Tobias Acid, Tobias Acid purified Grade & Sulpho Tobias Acid. Further the Company undertakes job work of various dye industries. The main raw material J.Acid is imported from China.

B. Opportunities and Threats

The Company is finding a good market for its range of products and exporting to twenty countries of the World.

C. Segment-wise Performance

The Company has only one business segment viz dye intermediates and dyes and hence product-wise performance is not provided.

D. Outlook

The future outlook of the Company looks very promising in the next 3-4 years and the reasons are as follows:

1. The Company has already started manufacturing of Tobias Acid and Sulpho Tobias Acid in their Boisar Plant.

2. The Company started the production of J. Acid from the financial Year 2019, the Raw material of which is made in house, i.e. Tobias Acid and since J.Acid is also our main raw material of manufacturing its derivatives which are manufactured in our Vapi Plant.

3. In last few months, in China, most of the plants are closed down due to the strict Pollution Control and in future China will not be able to produce in volumes which they were used to manufacture few months back.

4. China Government also in terms of Environment control is going to be very strict and most of the plants which are manufacturing Intermediates, their production capacity has drop down to 45% to 50% because the manufacturing companies will have to do Pollution treatment and now the China Companies will have to add additional cost of pollution treatment as well as economical scale of production. So, they will not be able to dominate the market by selling at lower price.

Thus, our Company stands in a better position since now we will be manufacturing the whole ring from Tobias Acid to J.Acid and its derivatives at our Plant.

E. Risk and Concerns

Since the Company will be manufacturing J. Acid in the year 2019, the Company will not be facing any risk from Chinese market.

F. Internal Control Systems and their Adequacy

The Company has satisfactory internal control system, the adequacy of which has been mentioned in the Auditors Report.

G. Human Resources

In the field of Human Resources, the Company has developed speedily water/air/land pollution control departments and hired qualified people for the same.