Eastcoast Steel Ltd Management Discussions

The Managements Discussion and Analysis ("MDA") mainly focuses on various factors and their impact on the business of Eastcoast Steel Limited (the "Company") during the financial year 2022-23 and to the date of this report. MDA also contains the overall scenario of the industry, its growth at global and domestic level, this further contains the possible effect of such industry scenario on the business of the Company.

The management of the Company opine and give their comments on the various resources that may affect necessary development of the Companys business.

ECONOMIC AND INDUSTRY OVERVIEW GLOBAL ECONOMY

Global GDP growth is estimated to fall from 3.4% in 2022 to 2.8% in 2023. The continuing

Russia-Ukraine war along with central banks hiking rates to tame inflation continues to weigh on economic activity. The energy shock, a result of the war in Ukraine, continues to impact the economic activity in Europe. Chinas economy is set to rebound to 5.2% as mobility and industrial activity pick up after lifting of pandemic restrictions.

Economic Outlook

The factors that drove inflation in 2022 appear to be reversing. These include increase in commodity prices

Expansive fiscal and monetary policy, and supply chain disruptions. Global inflation is expected to fall from 8.7% in 2022 to 7% in 2023 on the back of lower commodity prices.

Inflation has already peaked in the US and Europe in early 2023. It is fund declining in other major economies including Japan, China and India. In the US, economic growth is expected to be slower in 2023 given the tightening monetary and fiscal policy. Contrary to late 2022 estimates, US will avoid a recession due to declining energy prices, strong employment growth, and easing of supply chain stress. Threat of recession continuous to loom over

Europe as wages and consumer spending has fallen significantly. Elevated natural gas prices are fuelling inflation and driving down purchasing power

INDIAN ECONOMY

GDP growth rate in 2023 is expected to be 5.9%, lower than the 2022 growth of 6.8% due to subdued external demand and tightening monetary policy. However, India will remain the fastest growing major economy. Brent oil prices are expected to remain range bound in 2023, given the continuing war in Ukraine and sanctions imposed in response by the USA and European Union. India meets nearly 80% of its oil needs through imports. High oil prices will also have a trickledown effect on the prices paid by consumers for goods and services. Persistent inflation resulted in RBI to increase the repo rate by 250 basis points throughout FY2022-23. Further rate hikes are expected in the coming year, despite no rate hike in the April Monetary Policy Committee meeting. Focus is expected in the energy sector, with significant capital investments towards energy transition and green hydrogen mission. Overall, the key steel consuming sectors are expected to perform well in FY2023-24 supported by a rise in infrastructure spend by the Government and gradually improving semiconductor supply.

INDUSTRY STRUCTURE AND DEVELOPMENTS Steel Industry

The Company is no longer engaged in manufacturing steed. However, the global demand and supply would have an impact on its activity of international trade.

RISKS AND CONCERNS

The Companys foray into trading of steel products in international market shall of course be subject to the overall demand stabilising in the world market, which looks promising.

OPERATIONAL PERFORMANCE

The Company continues trading in Iron & steel products, including engineering products, in the international market.

FINANCIAL PERFORMANCE

A brief review of the financial performance of your Company for the financial year 2022-23 is given below:-

Particulars	FY2022-23	FY2021-22
Revenue from Operations	496.01	1,092.03
PBT	78.87	(32.10)

A summary of the major financial ratios of your Companys performance:

Please refer Note. 35 to the financials for the detailed report on the ratios.

HUMAN RESOURCE

The Companys Human Resource Policy provides an environment that motivates its employees to realise their full potential. The Company respects each employee and motivates them by offering opportunities based on their skill-sets, and in the process, builds mutually benefiting relations between the Company and its employees. The Company has put in place a policy that not only increases productivity but also increases the job satisfaction of its employees.

INTERNAL CONTROL SYSTEMS down policies, guidelines and procedures The Companyhaseffectivelyand efficiently keeping in mind the nature, size and complexity of Companys business objectives. The

Company maintains proper and adequate system of internal controls with well-defined policies, systems, process guidelines and operating procedures. The Company positively ensures strict adherence to various procedures, laws, rules and statutes. All transactions are recorded and reported in accordance with the applicable Accounting Standards and within the terms of accounting policies.

The Company has also ensured the periodical Internal Audit by an independent auditor, whose report is submitted to the Audit Committee and Board of Directors for consideration. During the Audit Process no material discrepancies have been reported by the Internal Auditor.

The Audit Committee is responsible to ensure the monitoring of Internal Control System and oversees the various financial transactions on a regular basis and any deviations are promptly reported to the Senior Management to ensure normalcy is established at the earliest, though, no such deviations had been reported by the Audit Committee during the FY 2022-23.

CAUTIONARY STATEMENT

Statements made in the Management Discussion and Analysis describing the Companys projection, estimates and expectations may be interpreted as "forward looking statements" within the meaning of applicable securities, laws and regulations. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent information or events.