Shri Bajrang Alliance Ltd Management Discussions.

Pursuant to the regulation 34 read with the Schedule V of the SEBI (Listing obligations and Disclosures Requirements) Regulations, 2015 youre Directors wish to report as follows:

A. INDUSTRY STRUCTURE AND DEVELOPMENTS Domestic Scenario

India was the worlds second largest steel producer, as of 2018. The country is slated to surpass USA to become the worlds second largest steel consumer in 2019.

In FY18, India produced 104.98 million tonnes (MT) and 103.13 MT of finished steel and crude steel, respectively. Crude steel production between April 2018- February 2019 - Provisional (P) reached 97.15 million tonnes. India was also a net exporter of steel in FY18. Exports and imports of finished steel stood at 6.36 MT and 7.84 MT respectively in FY19 (P). The Government has taken various steps to boost the sector including the introduction of National Steel Policy 2017 and allowing 100 per cent Foreign Direct Investment (FDI) in the steel sector under the automatic route. Between April 2000 and December 2018, inflow of US$ 11.18 billion has been witnessed in the metallurgical industries as Foreign Direct Investment (FDI). Indias per capita consumption of steel grew to 68.9 kgs, during 2017-18. National Steel Policy 2017 aims to increase the per capita steel consumption to 160 kgs by 2030-31. (Source: www.ibef.org )

Global Aspect

In 2018, the world crude steel production reached 1789 million tonnes (mt) and showed a growth of 4.94% over 2017. China remained worlds largest crude steel producer in 2018 (928 mt) followed by India (106 mt), Japan (104 mt) and the USA (87 mt). World Steel Association has projected Indian steel demand to grow by 7.3% in 2019 while globally steel demand has been projected to grow by 1.4% in 2019. Chinese steel use is projected to show flat growth in 2019. Per capita finished steel consumption in 2017 is placed at 212 kg for world and 523 kg for China by World Steel Association. The same for India was 69 kg in 2017. Per capita steel consumption for 2018 is yet to be published by WSA. (Source: www.steel.gov.in )

B. OPPORTUNITIES AND THREATS

• Indias comparatively low per capita steel consumption and the expected rise in consumption with growing infrastructure construction, automobile and railways sectors have offered scope for growth. Infrastructure, oil and gas and automotives should drive the growth of the industry.

• For alloy steel sector, the major market is automotive industry (85% share) which is also the backbone of the Indian manufacturing sector. Large investments are forthcoming in automobile sector, and soon, India will become auto hub on the global map which will give long term opportunity for sustainable growth of alloy steel industry.

• Efforts are being taken towards optimization of cost in all areas of production.

• Focus on value added products is expected to improve realisation as well as margins, going forward.

• Easing regulatory hurdles ensuring adequate key raw material at sustainable price, availability of more liquidity are some of the issues which will continue to remain critical for the overall steel sector which includes alloy steel sector as well.

C. SEGMENT - WISE OR PRODUCT-WISE PERFORMANCE

Our Company is currently producing only one type of product i.e. Structural steel hence there are no different segments for separate data to reproduce.

D. FUTURISTIC STATEMENT

Companys performance as expressed or implied could differ materially due to economic conditions affecting demand/ supply and price condition in the domestic & overseas markets, changes in the Government regulations, tax laws & other incidental factors.

E. CHALLENGES RISKS AND CONCERNS

The banking system continues to be over burdened with large Non Performing Assets (NPA) restricting the investment by Public and Private Corporate Sectors. Margins in the industry continue to be under pressure due to severe competition. We are up-grading our skills, modernization and cost saving to the extent possible. Risk and concerns are being addressed on a continuous basis RISK MANAGEMENT

Risk is an integral factor in virtually all businesses. At SBAL, risks are adequately measured, estimated and controlled. Irrespective of the type of risk or the activity that creates it, the Companys fundamental approach to risk management remains the same: identify and measure risks, leverage an in-depth knowledge of the business and competitors and respond flexibly in the understanding and management of risks.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company believes in systematic working and placing appropriate internal control systems and checks. Proper checks and systems are in place and regular reviews are held by the Head of Department and Senior Management to check that the systems and controls are adhered. The reviews also prescribe changes wherever required. The efficiency of Internal Control Systems is ensured as a combined result of the following activities:

1. Operational performance is reviewed each month by the Senior Management.

2. Performance of each function is closely monitored by the Head of Department and Senior Management through daily/weekly/ monthly review meetings. Reviews of all independent functions are regularly undertaken. Cross functional activities are subjected to periodic review.

3. Various policies are introduced from time to time to ensure effective functioning of various departments, such as Business Development, Projects, Procurement, Commercial, Finance, HR, etc.

4. The Internal Auditors of the company conducts financial, operational and management audit of various functions and areas. Their reports are placed before the Audit Committee and appropriate actions as deemed fit are initiated based on the reports.

5. The Audit Committee also oversees financial systems, procedures and internal controls and competent to call for any information/document from any department/function.

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

HUMAN RELATIONS

Human resources are considered as one of the most valuable asset in forming the organization structure of the Company. The Human resources development process of the Company promotes co-operation and innovation among the employees, within the organization which provides flexibility to keep in pace with the changing business needs of the Company and in retaining our personnel.

We have an elaborate performance management system in place involving goal setting and periodic reviews involving confirmation and annual reviews. The review sessions impress upon several aspects of the professionals careers such as career and competency development, financial rewards and recognition. We endeavor to link careers to competencies, individual preferences and organizational needs.

The Company endeavors to make all possible efforts for developments in Human Resources, including number of people employed and in Industrial Relations front.There is no material development in human resources with respect to number of people employed.

SAFETY

Safety management is integrated with the Companys overall environment, health and safety (EHS) management and zero accident is taken up as the Companys goal. The following measures have been taken by the Company:

• Identification of hazard and risk present in the work environment and its rectification.

• Continuous monitoring of unsafe conditions and unsafe acts through safety inspections.

• Specific job safety awareness on a continuous basis.

ENVIRONMENT FRIENDLY OPERATIONS

Environmental protection is prime concern for us and we are aware of our core responsibility to the society. The Companys plant complies with all norms set up for clean and better environment by the competent authorities. The Company undertakes regular checks / inspection for the maintenance of environment, health and safety. The company has adequate effluent treatment equipments to avoid pollution. The Company is continuously endeavoring to improve the quality of life in the community surrounding its industrial complex.

H. CAUTIONARY STATEMENT

Statement in Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations may be 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 difference to Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas market in which the Company operates, Changes in Government regulations and policies, tax laws and other statutes and incidental factors, dustry

FOR, SHRI BAJRANG ALLOYS LIMITED

Sd/-

SURESH GOEL

(CHAIRMAN)

DIN: 00115834

RAIPUR, 28.05.2019