Exotic Coal Ltd Management Discussions

ARSI COSMETICS AND CHEMICALS LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS Your Directors have pleasure in presenting the Management Discussion and Analysis report for the year ended on 31st March 2011. INDUSTRY STRUCTURE, DEVELOPMENT: During the period under review, the Company had been operating in Detergents, Scourers and Chemicals. Now, subsequent to the consent obtained by postal ballot from the members of the Company, the Company shall be shortly entering into the business of COAL AND MIINING activities. PERFORMANCE The Company is looking to do new business in coal and mining. SEGMENT-WISE PERFORMANCE: The Company is into Detergents, Scourers and Chemicals. OPPORTUNITIES AND THREATS The fundamental growth drivers of the countrys economy as well as industry continue to remain strong despite the pressures of slowdown and inflationary conditions prevalent till recently in the nation and also globally. The threats to the segments in which the company shall be operating is pricing pressure arising due to competition from low cost suppliers, technology up gradation, sever competition among competitor and newly emerging competitive nations and stricter environment laws. Further, the Indian economy is now integrated with the world economy to a very large extent and therefore vulnerable to the direct impact of such a slowdown; such an impact could adversely affect the Companys performance as well. STRENGTH The existing management has a strong technical knowledge and experience in the coal and mining industry. Mr. Sushil Kumar Jain, Executive Director is an entrepreneur and is having vast knowledge and expertise in handling various businesses including the coal business. Mr. Susmit B. Sutaria, Director has vast experience and expertise in running factories and related issues. RISKS AND CONCERNS Your company is working essentially in global market place. Change in policy of Govt, of India may have an effect on future working of the Company in the business of Coal and mining. However the capability of providing quality services, timely completing of projects and the excellent performance will provide the competitive edge to the Companys business in this sector. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY The Company has proper and adequate internal control system commensurate with the size of the business operations geared towards achieving efficiency in its various business operations, safeguarding assets, optimum utilization of resources and compliance with statutory regulations. The management is ensuring an effective internal control system to safeguard the assets of the company. Efforts for continued improvement of internal control system are being consistently made in this regard. HUMAN RESOURCES VIS-A-VIS INDUSTRIAL RELATIONS The Company values and appreciates the dedication and drive with which its employees have contributed towards improved performance during the year under review. The industrial relations with workers and officers are cordial during the year under review. All issues pertaining to staff matters are resolved in harmonious and cordial manner. CAUTIONARY STATEMENT Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the* domestic and overseas markets in which the Company operates changes in the Government regulations, tax laws, and other statutes and other incidental factors. FOR AND ON BEHALF OF BOARD OF DIRECTORS Sd/- Date : 5th September, 2011 SUSHIL KUMAR JAIN Place: Ahemdabad EXECUTIVE DIRECTOR