Metkore Alloys Management Discussions

a. Industry structure and developments

The company falls under Iron & Steel Industry and in Particular Ferro Alloys Products. Every fortune of Ferro alloys industry depends on the fortunes of Iron & steel industry. Presently there is stable market for Iron & steel and Ferro alloys products domestic and international. Ferro alloy industry witnessed growth in recent days.

b. Opportunities and Threats

The end user of Ferro chrome is mainly stainless steel. The growth of Ferro chrome is predominately driven by growth in its end user segments. In India per capita consumption of steel is lower compared with other countries. There is every opportunity due to new technology, cost reduction and Governments priority to Housing sector and home for every family.

c. Segment-wise or product-wise performance

The company dealt with only one segment of Iron & steel the total performance relates to Ferro chrome products. As the company stopped the production activity the performance becomes NIL.

d. Outlook

The company still expects there is bright future for alloy products, due to Government priority to rapid industrial growth and identification new markets, technology, priority to aviation industry and housing sector, infrastructure facilities etc .

e. Risks and concerns

The global economic situation continues to be concern. Availability of products at cheaper price due to high production and low consumption is always risk factor for every industry.

f. Internal control systems and their adequacy

The company has in place adequate internal control and audit system commensurate with its size and operation. During the year such controls were tested and no reportable material weakness in the operations was observed.

g. Discussion financial performance with respect to operational performance

There is no production during the financial year. The turnover of the company is very marginal which is not comparable to gauge for performance of the company.

h. Material development in Human Resources /Industrial front, including number of people employed

Effective Human resources management plays a key role in companys performance. There is no major material development and human resources of the company as the operations are suspended. Your company always believes in the importance of human resources who are key to success of any organization.

i. Research and Development

The company believes in Research & Development which will make the company to stand in competitive and challenging environment.

j. Technology Absorption

The company updates its technology by training the skilled/semiskilled workmen for adopting latest technology which results cost reduction and quality product production.

k. Environment, Safety, Health and Energy Conservation

The company always believes the principle of SAFETY FIRST by conducting seminars, training the staff to meet emergency contingencies if any. Taking care of health tests, Swatch awareness among workmen and employees.