SWOT Analysis of our Company Strengths 1) Highly talented and motivated employees; 2) Superior product quality; 3) Highly sophisticated

automated machinery for production of wheat flour and related products; 4) Excellent service to the customers; 5) Strong, transparent and user friendly business dealings; 6) Pioneer in the flour milling industry in the South; Weakness 1) Government policies which are unstable; 2) Increase in cost of borrowings; 3) Slender margin on the turnover; 4) Increased credit period to the customers resulting to reduction in working capital gap; www.reportjunction.com SANSCO SERVICES - Annual Reports Library Services - www.sansco.net NAGA LIMITED, CHENNAI Opportunities 1) With the expected increase in GDP and overall improvements in the standard of living and overall reduction in the number of people living below the poverty line, the consumption of wheat and wheat products is likely to move up, which result in increased share of your Company in the segment catered by it; 2) Since the products dealt by the Company is an everyday necessity, the potential of increase in the market share is very high; . Threats ' 1) Increase in raw material cost and carrying cost of inventory; 2) Cut throat competition; 3) Higher interest burden; 4) Slender margin; 5) Heavy investment required; BOARD OF DIRECTORS Sri. K.S. KAMALAKANNAN Chairman & Managing Director Smt. MAGESWARI KANNAN Joint Managing Director Sri. SOUNDER KANNAN Director - Foods Sri. R. NATARAJAN Director Sri. CSR. KRISHNA Director Sri. S. RAMESH Director Sri. R. THYAGARAJAN COMPANY SECRETARY AUDITORS M/s. S. DHANYAKUMAR & Co. Chartered Accountants 5, South Boag Road, T-Nagar, Chennai-600 017 BANKER: ING VYSYA BANK LTD., MADURAI