Crimson Metal Engineering Company Ltd Management Discussions.

I Industry structure and developments.

Crimson Metal Engineering Company Ltd is in to steel industry. Temporarily, we are not in our main line of business, albeit at low level, due to tough economic environment and will try to resume as situation warrants so.

II. Discussion on financial performance with respect to operational performance

As far as the financial performance of the company is concerned, During the year 2019-2020, the Company has earned a net profit after tax of Rs. .783337 as against Rs. 1146446 earned in the previous year. On the sales front, the Company has achieved a turnover of about Rs. 72564723 during the year 2019-2020 as against Rs. 100814989 achieved in 2018-2019.

III. Opportunities and Threats.

Once economy is revived and demand of the Companys Products improves, our company is confident of bounce back to its normal operations. However, prolonged weak economy and delay in its revival can dampen the resumption of normal operations which requires effective consideration on the part of the management

IV. Segment–wise or product-wise performance.

The company have been operating in single segment and product viz., manufacture of pipes and recently leased its manufacturing activities for the time being.

V. Outlook

Outlook of the industry continues to be weak. With the economy expecting to recover we can expect quick recovery.

VI. Risks & Concerns

The main risk to which the company is exposed to is the fluctuation in the Raw material prices and the competition from the various competitors.

VII. Internal Control Systems

The Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2020 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control. The Company has an adequate Internal Control system, commensurate with the size, scale and complexity of its operations. During the year, such controls were tested and no reportable material weaknesses in the design or operation were observed.

VII. Material developments in Human Resources / Industrial Relations front, including number of people employed

No Material developments have occurred in Human Resources / Industrial Relations front.

VIII. Cautionary Statement:

Statement in the management discussion, prescribing the companys objective and expectations may be "forward looking statements" within the meaning of applicable SEBI laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the companys operations include economic demand/ supply and price conditions in the domestic/ international markets, change in government regulations, tax laws, other statutes and incidental factors.

DISCLOSURE OF ACCOUNTING TREATMENT:

No differential treatment has been followed during the financial year 2019 – 2020 in preparation of the financial statements.

DECLARATION IN COMPLIANCE WITH THE CODE OF CONDUCT

This is to confirm that all the Board Members and the Senior Management have affirmed compliance with the Code of conduct for the year ended 31st March, 2020

For Crimson Metal Engineering Company Ltd.

Sd/-

Vinay Kumar Goyal

Managing Director

DIN-00134026

Place: Chennai

Date: 14th November 2020