Monnet Industries Ltd Management Discussions.

V FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements can thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

V INDUSTRY STRUCTURE AND DEVELOPMENTS

Ferro alloys production in India is about six decades old. In India, bulk Ferro alloys production through electric submerged arc furnace route made a beginning in late 1950s.

The initial phase of the industry was marked by the installation of small capacity furnaces mostly for the production of Manganesealloys with the starting up of the first furnace at VISL, Bhadravati, total of 18 furnaces were commissioned by the mid-sixties to cater to the domestic steel industrys requirement.

The expansion of the industry took place between late sixties and late seventies, when thirteen more moderately sized furnaces were added to undertake production of Silicon and Chromiumalloys. The third phase of expansion in the country was prompted by product diversification, availability of advanced technology and encouragement from Government by way of incentives for setting up 100% export oriented plants, to earn valuable foreign exchange.

V OPPORTUNITIES AND THREATS

The Company is exploring through various means to utilize the opportunities available to carry on the objects for the growth of the Company. The threats are the vibrations in the economy and government policies.

V SEGMENT WISE REPORTING

There is no segment reporting in the Company during the period under review.

V OUTLOOK

Global economic growth remains moderate with uneven prospects across the main countries and region. The outlook for advanced economies is improving while growth in emerging markets and developing economies is expected to be lower primarily reflecting weaker prospectus for some large emerging market economies.

V INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has placed systems and procedures of internal control and checks in operation commensurate with the size and the nature of its business for optimum utilization of available precious resources. The mechanism of internal control and checks are reviewed by the management, internal and statutory auditors from time to time and suitable changes/modifications are implemented so as to ensure that an effective scheme of checks and balances exists at all times. The management is reasonably satisfied with the existing internal control systems. The Audit Committee of Board of Directors also reviews these matters from time to time in their meetings.

V MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The company recognizes the fact that manpower is the most vital resource. The company ensures that its employees are provided the best working environment and compensated with attractive remunerations. Employees are encouraged to be innovative and involved to pursue their goals which are allied with the larger interest of the company. Presently the operations of the company are not going on large scale and there were five employees in the Company in the end of the Financial Year

V DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Your companys revenue from other Income for the current financial year, 2018-19is317.65. Further, your company has posted a loss of Rs. 14,333.82Lacs this year as against loss of Rs. 898.70Lacs in the previous year.

V RISKS AND CONCERNS

In any business, risks and prospects are inseparable. As a responsible management, the Companys principal Endeavour is to maximize returns. The Company continues to take all steps necessary to minimize its expenses through detailed studies and interaction with experts; major risks and concerns are as follows:

Global Economic Slowdown

In the past years, the continuing Euro-zone problem, slow growth in developed economies and a cooling of emerging economies took a toll on the industry.

V DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS;

During the year under review the Inventory turnover ratio and Debtor turnover ratio has not been computed due to NIL turnover in the Company in the financial year 2017-18 and 2018-19.

S.NO Key Ratios FY 2017-18 FY 2018-19 Change in %
1 Current Ratio 0.002 0.182 7251.133
2 Interest Coverage Ratio -0.049 2.557 -5281.073

Further, the Debt equity ratio has not been computed due to negative equity, the Operating Profit margin has not been computed as there are no revenue from operations in the Company and the net Profit Margin cannot be computed due to losses in the financial year 2017-18 and 2018-19.

Reason for significant changes in above key ratios are as follows:

• Current ratio increase as compared to previous financial year 2017-18 due to increase in the Current assets and reduction in the Current Liabilities in the current Financial Year 2018-19.

• Interest coverage ratio increase as compared to previous financial year 2017-18 due to increase in the EBIT (Earnings before Interest and Tax) and reduction in Interest Expenses in the current Financial Year 2018-19.

V DISCLOSURE OF ACCOUNTING TREATMENT

The Financial statement of the Company is prepared as per the prescribed Accounting Standards and reflects true and fair view of the business transactions and there is no deviation in following the treatment prescribed in any Accounting Standards (AS) in the preparation of financial statements of the Company.

V CAUTIONARY STATEMENT

Statement in this Managements Discussion and Analysis detailing the Companys objectives, projections, estimates, expectations or predictions are "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 global and Indian demand-supply conditions, finished goods prices, feedstock availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations.

By Order of the Board
For Monnet Industries Limited
(Keshav Sharma) (Mahesh Kumar Sharma)
DIN:08275228 Whole-time Director & CFO
Date: 13.08.2019 Director DIN:07504637
Place: New Delhi