Indus Tubes Ltd Management Discussions.

INDUS TUBES LIMITED ANNUAL REPORT 2008-2009 MANAGEMENT DISCUSSION AND ANALYSIS The Current global crisis has no parallel after the great depression of 1930, which shook the world economy. The Financial System across the World got disrupted leading to severe contraction in demand, steep fall in prices , heightened risk aversion. The Steel Industry could not also could not keep itself detached from the reeling economic turmoil for long time and with the onset of second half of the year, it suffered severe dent globally thereby breaking the long rally witnessed by the Indian steel Industry. With steep decline in the demand for infrastructure, construction, housing and automobile sector during the later half of the year , from where the steel sector derives most of its demand, steel was the worst hit. In spite of this turbulence and turmoil, your Company has achieved Sales and other Income of Rs 124.22 Crores in comparison to the previous year figures of Rs. 106.60 Crores. Whereas the Profit before Tax and Depreciation (PBTD) has increased to Rs. 1.49 Crore in comparison to the previous year figures of Rs. 1.37 Crore. QUALITY CONSCIOUS: Your Company has a policy to adopt stringent quality norms for its production and made all out efforts to ensure the quality of its production for which it has been awarded ISO 9002 by INTERNATIONALLY renowned BUREAU VERKTAS QUALITY INTERNATIONAL, LONDON. FUTURE PROSPECTS: Your Company has created brand image of its product in the market and is starving hard to maintain the same for future. Major clients of your Company are satisfied with the performance and quality of production of your Company. Your Company is always open to adopt innovative new techniques of product management at one hand and on the other it is impressing upon to improve its supply line. The production of the Company is mainly supplied to Government/Semi Government Departments/Undertakings/ Boards and other corporate entities. Your Company has poised itself to an unassailable position to capture a larger share of the expanded steel market which is likely to offset the impact of the global slowdown in the demand to a great extent. FIXED DEPOSITS: Your Company has not accepted any Fixed Deposits from the Public during the year under review in violation of the RBI guidelines.