Cubex Tubings Ltd Management Discussions

Pursuant to SEBI (LODR) Regulations 2015, a Management Analysis Report is given below: A. INDUSTRY BACKGROUND

The Copper and Copper Alloy products have shown impressive growth in the last decade. Copper because of its high electrical conductivity and heat transfer characteristics finds wide application in the form of rods, tubes, strips, flats and wires. The user industries are generally Power Generation, Switchgear, Motors, Refrigeration, Heat Exchanger, Automobile, Electrical Equipment industries and ship building company.

B. INDUSTRY OUTLOOK

1. Since there is lot of emphasis of power generation the consumption of Copper Alloy tubes, Rods and Semis would increase.

2. The manufacturing capacity of condenser / refrigeration tubes are in short supply compare to its requirements in India.

3. There is huge export potential for copper alloy extrusions.

C. OPPORTUNITIES AND THREATS

The fundamental growth drivers of the countrys economy as well as Copper industry continue to remain strong despite the pressures of slowdown and inflationary conditions prevalent till recently in the nation and also globally. The Copper Industry in the country is continuously attracting investments from domestic and foreign investors.

The threats to the segments in which the company operates are volatility in Exchange rate & Metal Prices.

D. STRENGTH AND RISKS & CONCERNS

The existing management has a strong technical knowledge and experience in the metal industry. Sri., Virendra Bhandari, Managing Director and Sri Akshay Bhandari ,Executive Director , are having vast technical knowledge and expertise in handling the business of the Company.

Your company is concerned about the vide Fluctuations in Copper prices globally and locally and increase in foreign exchange value.

FUTURE PROSPECTS

We are mostly manufacturing general copper and copper alloy products to standard specifications.

FUTURE PLANS

There is a huge market for supply of specialized copper & Nickel tubes to desalination Plants in Middle East. This opens a new segment which holds lot of promises in Europe & USA. Further, we are only company in India to manufacture this type of tubes, by way of enhancing the Production Capacities.

47th Annual Report 2025-2026

The demand for high performance alloys finds its applications in Defense, Aerospace, Electronics, Automobiles, Hydro Carbon Industries etc. With the Strategic push by GOI in Space & Defense manufacturing under MAKE IN INDIA it ensures sustained demand for such materials. The Company is mapping out a major Capex Plan. The mode of raising funds is still to be freezed.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Internal control systems are aimed at promoting operational efficiencies while stressing adherences to policies. The systems are designed with adequate internal controls commensurate size and nature of operations. Transactions are executed in accordance with the company policies. Assets are safeguarded and deployed in accordance with the Companys Policies.

The Company has in place adequate internal financial controls with reference to financial statements. Periodic audits are undertaken on a continuous basis covering all the operations i.e., manufacturing, sales & distribution, marketing, finance, etc. Reports of internal audits are reviewed by management from time to time and desired actions are initiated to strengthen the control and effectiveness of the system.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS:

The Company is able to retain the experienced staff, in spite of the copper consuming Industries are under recession, the Company feels confident of keeping its manpower costs to below industry norms. The atmosphere that is created in the organization is conducive for self-development and career growth; this is the success in retaining our manpower.