Ennore Coke Ltd

Your Directors have pleasure in presenting the Twenty Fifth Annual Report together withthe accounts of your Company for the year ended March 31, 2010.

FINANCIAL HIGHLIGHTS

OPERATIONS & FUTURE PROSPECTS

During the year, your company commenced commercial production at Haldia in Battery no 1and 2 during April 2009 equivalent to one third of the coke capacity. We are happy tostate that the output parameters matched with the best in the Industry. In October 2009Batteries 3 and 4 were commissioned augmenting another one third of the total cokecapacity. Concurrently the Implementation of the Power Project was carried out in fullswing and the Power plant is expected to be operational by the Third Quarter of 2010 asalso Batteries 5 and 6. Further the operating capacities of your company gallopedlaterally to nearly 4,00,000 M.T. by end of the March 2010. This was possible throughidentification of units whose manufacturing capacities and process synergized evenly withthat of your company.

During the year your company also carried out trading in Coal and Coke to keep in touchwith the pulse of the Market which was volatile through out the year This has helped thecompany to scale a Turnover of Rs 388.95 Crores during 2009-10 from Rs 101.06 Crores in2008-09 (an increase of 385 %). As on date your company has operating capacities in fourstates and Marketing activities in Seven States. Your Company is on the constant lookoutfor opportunities to laterally expand on capacity and hopes to achieve a Gross Capacity ofHalf a Million tonnes of coke during the forthcoming year.

Your Company hopes to focus on Exports during the forthcoming year. It has alreadysigned annual Contracts for exports with Natural Resources Singapore, MitshubushiCorporation Japan, Severstal Steel Inc USA as also continue the ongoing Export Orders withPakistan and Durban.

On the Domestic Front, Your Company has successfully commenced supply to Tata Steel,IDCOL, Tata Metallicks as also foundries at Belguam and Coimbatore.

MANAGEMENT DISCUSSION AND ANALYSIS

A detailed review of the operations, performance and outlook of the company and itsbusiness is given in the Management Discussion and Analysis report, which forms a part ofthis report.

BUSINESS PERFORMANCE REVIEW

During the year your company continued the Implementation of Co generation Power Plantof 12mw capacity at Haldia as also continue the implementation of the coke project. TheCoke project has now commenced operation on two thirds of its capacity and is expected toachieve full capacity by the forthcoming year. Your Company has already signed a PowerPurchase agreement with West Bengal State Electricity Board. On the Basis of performanceand operating Capacity the State Bank of India Consortium enhanced the Working Capitallimits to Rs. 175 Crores. Your Company has successfully started utilizing four more thirdparty manufacturing units in the states of Gujarat/ West Bengal/Orissa/Jharkhand. Duringthe year, your Company had carried out significant volume of Exports to Pakistan andDurban as also USA. Your Company has also commenced direct supplies to end users prominentamongst them are Tata Metalicks, Tata Steels, IDCOL Kalinga, Narasingh Ispat, MaheswariIspat as also foundries at Coimbatore and Belguam.

Opportunity

a) Fully Integrated Coke and Power Plant means no input cost for power

b) Low Transmission Cost

c) Stamp Charging technique to improve yield

d) Export potential

STRENGTHS

a) Lateral Expansion of capacity reduces the per unit cost

b) Environment friendly Technology

c) Possibility of Incentives from Government

d) Minimum Inventory holding time because of utilizing external capacities

WEAKNESS

• Possibility of statutory levies in future

• Scarcity or increase in price of Raw Material

THREATS

a) Change in Govt Policy affecting the price and availability of Raw Material andFinished Goods

b) Recession

c) Currency Fluctuation

d) China likely to dump again

CORPORATE GOVERNANCE

Your company is in compliance with the requirements and disclosures with respect to theCode of Corporate Governance as required under Clause 49 of the listing agreements withthe stock exchanges. A report on Corporate Governance along with a certificate from theAuditors forms a part of this report.

DIRECTORS

Mr. Rajeev Agarwal and Mrs. Uma Karthikeyan retires by rotation at the ensuing AnnualGeneral Meeting and being eligible, offer themselves for re-appointment.

Subsidiary Status

During the year under review, M/s. Haldia Coke and Chemicals Pvt. Ltd., have acquiredthe holding of M/s. Shriram EPC Ltd., and M/s. Shriram Auto Finance, Chennai in ourCompany through an Inter - se transfer of shares amongst group (under Regulation 3(1)(e)(i) of the Takeover Regulations) and currently holds 60.86 % of the paid up capital ofour Company.

Haldia Coke is an integrated merchant met coke producer with met coke plants andcaptive coking coal mines. Haldia Coke owns an 80,000 metric ton per annum capacity metcoke plant at Nergundi in Orissa through its wholly owned subsidiary Wellman Coke Ltd. Inaddition, Haldia Coke owns a 130,000 metric ton per annum capacity met coke plant and aby-product power plant at Haldia in West Bengal.

Haldia Coke also holds two coking coal mines in West Virginia and Arkansas, USA withcombined production capacity of 423,000 ton per annum and extractable reserves of 25million MT.

Thus, by virtue of the above, your Company has become a subsidiary of M/s. Haldia Cokeand Chemicals Pvt. Ltd., Chennai, during June 2010.

Audit Committee

The company has constituted an Audit Committee as per the provisions of the CompaniesAmendment Act, 2000 and under Section 292 A of the Companies Act, 1956. The presentmembers of the Committees are:

Chairman : Mr. R. Ramakrishnan

Members : Mrs. Uma Karthikeyan Mr. M.R. Rajagopal Mr. Rajeev Agarwal

The Committee has met so far four times during the year.

PARTICULARS OF EMPLOYEES

As required under the provisions of section 217 (2A) of the Companies Act, 1956 readwith the Companies (particulars of Employees) Rules, 1975, as amended, the names and otherparticulars of employees or set out in the Annexure I to this Report.

Your directors confirm:

1. That in the preparation of the annual accounts, the applicable accounting standardshave been followed;

2. That they had selected such accounting policies and applied them consistently andmade judgments and estimates that are reasonable and prudent so as to give a true and fairview of the state of affairs of the company at the end of the financial year and theprofit of the company for that period;

3. That they had taken proper and sufficient care for the maintenance of adequateaccounting records, in accordance with the provisions of the Companies Act, 1956 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities; and

4. That they had prepared the annual accounts on a going concern basis.

AUDITORS

M/s. Walker Chandiok & Co., Chartered Accountants, Chennai, the Statutory Auditorsof the Company retires at the ensuing Annual General Meeting and are eligible forreappointment.

Audit report and EXPLANATION UNDER SECTION 217 (3) of the Companies Act, 1956

The Auditors' Report is self explanatory and does not require any further commentsunder Section 217 (3) of the Companies Act, 1956, except that:

Point no (iii) (f) & (iii) (g) of Annexure to the Auditors' Report

The transactions between two companies covered under Section 301 of the Companies Act,1956 are an internal arrangement between these two companies, hence no other terms hasbeen stipulated. However, necessary disclosures have been given by the directors underSection 299{3) of the Companies Act, 1956 which have been duly recorded in the registermaintained by the Company and taken on record by the Board of Directors.

Point no (vii) of Annexure to the Auditors' Report

The Company is in the process of expanding the scope and coverage of the Internal auditsystem in the current year.

Point no (ix)(a) of Annexure to the Auditors' Report

The Company is in the process of regulating all statutory remittances to the concerneddepartment.

Point no.xi of Annexure to the Auditors' Report

The term loan amounting to Rs.24,525,000 has been repaid to the bank by 30th June 2010and there is no dues payable to any financial institution or debenture holders as on thedate of this report.

APPRECIATION & ACKNOWLEDGEMENTS

The Directors wish to thank all the bankers for their continued assistance and support.The Directors also wish to thank the Shareholders of the Company for their continuedsupport even in this global recession. Further the Directors also wish to thank thecustomers and suppliers for their continued cooperation and support. The Directors furtherwish to place on record their appreciation of employees at all levels for their commitmentand their contribution.

Annexure to the Directors' Report

Information as per Section 217(2A) of the Companies Act, 1956, read with the companies(particulars of employees) Rules, 1975, and forming part of the directors' report for theyear ended March 31, 2010