kgn industries ltd Management discussions

GLOBAL OVERVIEW :

For the maintenance of industrial civilization in its current configuration Petroleum is vital to many industries thus is a critical concern for many nations. The petroleum industry encompasses the global processes of exploration, extraction, refining, transporting and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). The industry is usually divided into three major components: upstream, midstream and downstream.

Oil includes crude oil, condensates, natural gas liquids, refinery feed stocks and additives, other hydrocarbons (including emulsified oils, synthetic crude oil) and petroleum products (refinery gas, ethane, LPG, aviation gasoline, motor gasoline, jet fuels, kerosene, gas/diesel oil, heavy fuel oil, naphtha, white spirit, lubricants, bitumen, paraffin waxes and petroleum coke).

INDUSTRIES OVERVIEW :

Indian Oil & Gas Market scenario :

As an emerging Economy let us analyze in the Indian context and have the review of market in the current years and years ahead India is the worlds fourth largest consumer of primary energy. Indias tremendously growing energy demand has made the country an energy leader on the global platform with more than 28 billion tones of prognosticated (forecast) reserves. The Government of Indias New Exploration Licensing Policy (NELP) launched in 1997-98 has encompassed all the ingredients of a favorable investment climate, fiscal stability, transparency of the rule of law, contract stability, minimal policy induced uncertainties and a stable legal and regulatory framework.

Oil & Gas - Key Developments and Investments :

Indian energy firms have earned honor by getting placed in the 2012 Platts Top 250 Global Energy Company Rankings.

Oil & Gas - Government Initiatives :

India has been very active in Oil & Gas exploration and production activities on the global front and the Government has played vital role in sustaining the countrys strategic position. India and Canada have mutually agreed to share efforts in energy sector, particularly exports of Canadian oil and natural gas as well as renewable energy cooperation while Iraq is set to become Indias strategic energy partner.

The Indian Government is planning to incentivize energy firms to explore and produce natural gas domestically by extending them similar fiscal incentives which are currently available to only crude oil producers.

Oil & Gas - Road Ahead :

Majorly driven by transportation and industrial sectors, demand for oil is anticipated to rise immensely by 2020 while domestic power and fertilizer industries are projected to drive the demand for natural gas in the country. Furthermore, development of technologies enabling efficient use of fossil fuels coupled with use of renewable energy sources could help in filling the demand-supply gap for Oil & Gas.

CURRENT BUSINESS REVIEW :

KGN Industries Limited is listed on BSE Limited. The Company is in process to increase and develop its business techniques and strategies. The management is in planning to develop the business standards of the Company.

FUTURE OUTLOOK :

The Company is regularly doing research and analysis for better quality and cost effective solutions for its business.

OPPORTUNITIES THREATS RISKS AND CONCERNS :

Oil and Gas are used in a huge way in the Indian as well as in the global market. It is one of the major sectors which are contributing in the revenue generation all over the world. So there are tremendous opportunities across its value chain and sub sectors.

The Oil and Gas sector has many opportunities but at the same time, some fundamental issues can hinder its progress and thwart the achievement of its growth objectives. Shortages of skilled manpower, technology and equipment in upstream sector and general low oil & gas price regime may throw some critical challenges for the sector. Much higher thrust on research & development is required for proper quality control.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES :

The Company believes that employees are the key to achievement of Companys objectives and strategies. The Company provides to the employees a fair and equitable work environment and support from their peers with a view to develop their capabilities leaving them with the freedom to act and to take responsibilities for the task assigned. We provide our employees outstanding career development opportunities and reward to the staff for their good performance and loyalty to the organization. In order to meet the industries demand, we have appointed experienced professionals in Technical as well as Finance Departments. Apart from that every year, we hire new pool of latent from reputed petroleum institute through campus selection process.

The Company is in planning to appoint more qualified and experienced employees to upgrade the quality and overall performance of the Company.

CAUTIONARY STATEMENT

Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable laws or regulations. These statements are based on certain assumptions and reasonable expectation of future events. Actual results could, however differ materially from those expressed or implied. Important factors that could make a difference to the Companys Operations include global and domestic demand - supply condition, changes in Government regulations and tax structure, economic developments within India and the countries with which the Company should and need not be held responsible, if, which is not unlikely, the future turns out to be something quite different. Subject to this management disclaimer, this discussion and analysis should be pursued.

	For and on behalf of the Board of Directors of
	KGN INDUSTRIES LIMITED
	BABULAL JETHALAL HIRANI
Date: 14th August, 2017	DIRECTOR
Place : Mumbai	DIN:02362983