Auroma Coke Ltd Management Discussions

The Company is engaged in manufacturing and trading of coal and coke. Metallurgical Coke, being a deriva ve of coking coal is the main source of heat and is also the reducing agent required to facilitate the conversion of metallurgical ores into metal during the smel ng process. Coke is mainly consumed in Steel industry, Cement industry, furnaces for small cas ngs and gas producers among others

OPPORTUNITIES & THREATS

Thrust on development of infrastructure and manufacturing by the government is likely to increase steel demand in the Country. Coking Coal and Iron Ore are prime ingredients for produc on of steel. Hence, it can be understood that the demand for coking coal will improve in the coming years subject to favorable impetus from the government. Coke is also extensively used in the Foundries, Ferro Alloys, Steel and Chemicals industries. The Company foresees good scope in coke business.

Fluctua on in demand in global steel industry or increase in use of other mode of steel Industry ie. Electric ARC furnace by steel industry or indiscriminate imports from China might act as a threat to the met coke Industry in India which will consequently dampen the fortunes of met coke business.

RISKS & CONCERNS

The prospects of the met coke industry are correlated with the prospects of the steel industry. Any adverse market condi ons like global recession, and severe compe on from old and established players are the main concerns of the Company.

OUTLOOK

The current outlook of coke industry is reasonable good considering the focus of the government policies on economic development of the country. The biggest opportunity lies in the growing middle class in India and its burgeoning demand.

HUMAN RESOURCES

During the year, the Company maintained harmonious and cordial rela ons with its employees. The Company has taken steps to create a sense of belongingness in the minds of the employees, which in turn ini ates them to give their maximum contribu on while gearing them to face the challenges in the compe ve business environment and to achieve the desired goals

INTERNAL CONTROL SYSTEMS

The Company has developed adequate internal control system commensurate to its size and business.

DISCUSSION ON FINANCIAL PERFORMANCE

The fi nancial performance has been discussed in the Directors report.

CAUTIONARY STATEMENT

The report may contain statements that the Company believes are or may be considered to be "forward looking statement that describes our objec ves, plan or goals. All these forward looking statements are subject to certain risks and uncertain es that could cause the actual results to di er materially from those contemplated by the relevant forward looking statements.