Cubex Tubings Ltd Management Discussions

PursuanttoSEBI(LODR)Regulations2015, aManagementAnalysisReportisgiven below:

A. INDUSTRYBACKGROUND

TheCopperandCopperAlloyproductshaveshownimpressivegrowthinthelastdecade.Copperbecauseofitsh ighelectricalconductivityandheattransfercharacteristicsfindswideapplication in the form of rods, tubes, strips, flats and wires. The user industries are generally PowerGeneration, Switchgear, Motors, Refrigeration, Heat Exchanger, Automobile, Electrical Equipmentindustriesandshipbuildingcompany.

B. INDUSTRYOUTLOOK

1. Since there is lot of emphasis of power generation the consumption of Copper Alloy tubes,RodsandSemis wouldincrease.

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

3. Thereishugeexport potentialforcopperalloy extrusions.

C. OPPORTUNITIESANDTHREATS

The fundamental growth drivers of the countrys economy as well as Copper industry continue toremain strong despite the pressures of slowdown and inflationary conditions prevalent till recently inthenationandalsoglobally.TheCopperIndustryinthecountryiscontinuouslyattractinginvestmentsfrom domesticand foreign investors.

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

D. STRENGTHANDRISKS&CONCERNS

Theexistingmanagementhasastrongtechnicalknowledgeandexperienceinthemetalindustry.Sri.P R

Bhandari, Managing Director, and Sri. Virendra Bhandari, Executive Director are having vasttechnicalknowledge and expertiseinhandlingthebusiness oftheCompany.

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

FUTUREPROSPECTS

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

There is a huge market for supply of specialised 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 inIndia tomanufacturethistypeoftubes.

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INTERNALCONTROLSYSTEMSANDTHEIRADEQUACY:

The Internal control systems are aimed at promoting operational efficiencies while stressing adherences topolicies.Thesystemsaredesignedwithadequateintemalcontrolscommensuratesizeandnatureofoperations. Transactions are executed in accordance with the company policies. Assets are safeguarded anddeployedinaccordancewiththe Companys Policies.

The Company has in place adequate internal financial controls with reference to financial statements. Periodicauditsareundertakenonacontinuousbasiscoveringalltheoperationsi.e.,manufacturing,sales&distribution, marketing, finance, etc. Reports of internal audits are reviewed by management from time to timeanddesired actions are initiatedto strengthenthecontrolandeffectivenessofthe system.

MATERIALDEVELOPMENTSINHUMANRESOURCES/INDUSTRIALRELATIONS:

The Company is able to retain the experienced staff, in spite of the copper consuming Industries are underrecession,theCompanyfeelsconfidentofkeepingitsmanpowercoststobelowindustrynorms.Theatmosphere that is created in the organization is conducive for self-development and career growth; this is thesuccessinretainingourmanpower.