Eastcoast Steel Ltd Management Discussions.


(i) Industry Structure & development:

Steel Industry in general did not perform well during the year under review. Large Companies with integrated steel making facilities alone could maintain the performance in terms of productivity. The demand throughout the year did not however stabilise both in domestic and international market.

(ii) Segment-wise or Product-wise performance:

The Companys activities having stood at a standstill throughout the year and therefore, no details to report in terms of performance.

(iii) Outlook:

The Company is no longer engaged in steel making. The proposal for diversification would much depend upon the restructuring of the Company.

(iv) Opportunities & Threats:

Although the Companys activities have remained suspended since April 1995, it has considerable possibilities to diversify in view of the strategic location at Pondicherry. No imminent threats are foreseen as of now to remain afloat till diversified activities take root.

(v) Risks & Concern:

In view of the Company having not undertaken any activity, the risk & concern factor has not been of much significance.

(vi) Internal Control:

The present internal control system is adequate enough to meet the requirements.

(vii) Financial performance with respect to operations, etc.:

As reported earlier, there have been no operations during the year. However, the maintenance, housekeeping, statutory corporate expenses, etc. have been kept low to the minimum as far as possible.

(viii) Material developments in human resources, industrial relations, etc.:

After the closure of the plant, the company has kept minimum number of employees for obvious reasons of watch & ward, maintenance, etc. However, the management is aware of its social responsibility and shall endeavor to fulfill the obligations, when operations restart and revenue earned in due course.