orind exports ltd Management discussions

ORIND EXPORTS LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS Industry structure and developments: Growth and performance of your Company, which is in refractory trade, is directly linked to the performance of Steel Industry as it is the largest consumer of refractory products. To sustain inflation, the prices of steel products are under constant watch of the Central Government. This has created an adverse impact on the cost of manufacture of allied products. However, there has been an increase in demand of steel in India and the neighboring countries. Opportunities, threats, risks and concern: By virtue of long experience and vast knowledge of refractory business, your management is confident that company will start benefiting from rising demand and stable prices of refractory products provided there has been input of funds by the promoters. Like any other business, refractory business is likely to have new entrants in view of the expanding markets. The industry is likely to witness a number of mergers, acquisition and consolidation. However, with the experience of the management and continuous thinking on its part, Your Directors are hopeful of meeting such challenges successfully. Segment wise performance: The turnover of the Company declined from Rs. 11.46 lakhs in the previous year to Rs 2.38 lakhs during the year under review. However, there are plans to take up Total Refractory Management contracts involving supply and maintenance of refractory products of consumers provided there has been adequate fund in hand. Internal Control Systems & Their Adequacy: The Company has introduced a proper internal control system commensurate with its size and nature of its business The internal control system has been reviewed from time to time by the Audit Committee of Board level. Steps are being taken to introduce a proper Internal Audit System with the growth of the business. Cautionary Statement: Some of the statements in this Management Discussion and Analysis, describing the Companys objectives, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. The Company takes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events. For and behalf of the Board of Director Place: Kolkata (K.K.Panda) Date : 5th August 2011 MD&CEO