Gujarat Metallic Coal & Coke Ltd Management Discussions.

The Company is engaged in trading of coal and coke. Metallurgical Coke, being a derivative of coking coal is the main source of heat and is also the reducing agent required to facilitate the conversion of metallurgical ores into metal during the smelting process. Coke is mainly consumed in Steel industry, Cement industry, furnaces for small castings and gas producers among others

OPPORTUNITIES & THREATS

Thrust on development of infrastructure and manufacturing by the current government is likely to increase steel demand in the country. Coking Coal and Iron Ore are prime ingredients for production of steel. Hence, it can be understood that the demand for coking coal is due to improve in the coming years subject to favorable impetus from the government.

Although, fluctuation in demand in global steel industry or increase in use of other mode of steel Industry i.e. Electric ARC furnace by steel industry or indiscriminate imports from China might act as a threat to the met coke Industry in India.

RISKS & CONCERNS

The prospects of the met coke industry are correlated with the prospects of the steel industry. Any adverse market conditions like global recession and severe competition from old and established players are the main concerns of the Company. The latest issue of dumping of met coke by Chinese manufacturers is a concern for the Company.

OUTLOOK

The demand of coke in the year to come is expected to increase due to continuing Industrialization and growth in the steel sector in the country. The biggest opportunity lies in the growing middle class in India and its burgeoning demand. Also indiscriminate dumping by Chinese coke manufacturers is a cause of grave concern.

HUMAN RESOURCES

During the year, the Company maintained harmonious and cordial relations with its employees. The Company has taken steps to create a sense of belongingness in the minds of the employees, which in turn initiates them to give their maximum contribution while gearing them to face the challenges in the competitive business environment and to achieve the desired goals.

INTERNAL CONTROL SYSTEMS

The Company has developed adequate internal control system commensurate to its size and business. The Internal control system is supplemented by an extensive programme of internal audits, review by management, guidelines and procedures.

DISCUSSION ON FINANCIAL PERFORMANCE

The financial performance has been discussed in the Directors report. CAUTIONARY STATEMENT

The report may contain "forward looking statement" that describes our objectives, plan or goals. All these forward looking statements are subject to certain risks and uncertainties including but not limited to Government action, economic development, risks inherent in the Companys growth strategy that could cause the actual results to differ materially from those contemplated by the relevant forward looking statements.

S. K. Tailor
Place : Kolkata Managing Director
Date : 30th May, 2018 DIN - 02022077