E-mail received from investor on 10th March 2017

Dear Mr.Arun K J,

After your letter in June 2016 there were lots of hope to see Gujnre in Profits by Dec.2016 but in vain. 

We have seen selling increasing day by day from promoters or bank still not revealed.

If we have no major revival plans, our stock which is languising at Rs.2.70 might soon see now LOWS. 
We expect you to announce some major revival plans for Gujnre.

Looking for some aggressive action plans ahead. 

Regards,
Deep vyas

Dear Mr. Vyas,

Thank you for your mail. 2016 was a year full of positive and encouraging factors, at both—the micro- and the macro-economic levels. Accordingly we at Gujarat NRE had begun to ramp up production and plan for a future full of profits. Thus in June 2016, we had communicated our hope to you, our shareholders.

But, we never could have predicted the googly delivered by our Hon’ble Prime Minister on 8 November 2016 in the form of the Demonetization drive. It has had an obvious impact on the market.  While the country would certainly gain in the long term, in the interim there was an all round fall in demand leading to a sudden and vertical fall in sales which lasted for more than 3 months.

We are already working on the revival plans which would bear fruits only when the external environment improves, of which we are hopeful and optimistic. As an industry specific measure anti-dumping duty on coke is already in place which would benefit the company in a big way once the market revives back.

Times are tough and big bang announcements don’t help and as such we don’t indulge in the same.

Thank you,
Arun Kumar Jagatramka
Chairman & Managing Director

E-mail received from investor on 29th May 2014

Hello Sir,

I and my family members are the shareholders of Guj NRE coke Ltd and also Guj NRE Mimerals Ltd. since last five years.

I can understand that last three years market domestic as well as globly was having problems. Our share price went down.

Now with new BJP Government under the leadership of Prime Minister Narendra Modi,  things look better future ahead.

What are your Group Planning for next three to Five years?

-          Whether Still Industry will revive and what is your projection planning?
-          Whether Are you planning to list the Guj NRE Minarals Ltd?
-          What is your Sales and Profit Target for next  3 to 5 years?
-          Are we, shareholders will be revorded ? waiting with our Investment for last 5 years.

Your response to our queries will gude us to plan our Investment for next 3 to 5 years.

Kind Regards

Ramesh Atha

Dear Sir,

We share your views that with the stable Govt. at the Centre with focus on growth and to give boost to the investment cycle particularly in infrastructure space like steel and power, things are looking promising for the coal & coke sector, the business we are in. 

Regarding future plans of the Company, with the approval of CDR package, we look forward to turn the Company to profitable in the near future. Approval of the CDR package establishes the fundamental viability of our business. The package would certainly help us in realigning our debts and help revive the company.    

Regarding listing of GNMRL, please note that the Company is the single largest shareholder in Gujarat NRE Coke Ltd. (GNCL) holding around 34% of the equity capital. At the current market price of GNCL, the valuation of the GNMRL has been adversely affected. We expect to get GNMRL listed in the current year as the valuation of GNCL is expected to improve consequent to revival of that company, which in turn will help improve the valuation of GNMRL as well.

Thanks and regards

Investor Service Cell

E-mail received from investor on 3rd January 2013

Dear Sir,

On group company GNCL website, in late 2011, in response to a letter by Mr. Bhushan Vimal, Mr. Arun Jagatranka stated as follows:

Quote:

Thank you for the valued suggestion. We believe in good communication with all our stakeholders. We regularly post the updates in our website www.gnmrl.com as and when important event happens. We do also regularly communicate with the shareholders in all troubled times viz. meltdown in stock markets, any rumour mongering about us etc. to dispel their misconcepts and to restore confidence in the group. 

Unquote

In the month of September and October 2012, a few newspapers has carried reports that the company had sold off its entire stake in two oil exploration blocks in Western Australia. In this regard no details or information is available on the company website. The last letter available on the Investor Relations is the letter from the CMD dated 2nd May 2011 i which item 7 made reference to oil exploration.

The company website has not been updated for over a year and this is true for the various web pages and presentation. Some communication and queries regarding this company are answered on the GNCL website. GNMRL website does not have a 'queries' webpage. At the very least there should be a link directing GNMRL shareholders to the GNCL website investors query page.

As a concerned shareholder, having invested in the company for many years I have been looking forwarded to be rewarded and have some liquidity. This year no dividend payout was made to the shareholders. Earlier we were informed that the company would list by end of 2011 or early 2012. The listing has not take place and I would be grateful if you can indicate when it can be expected. 

Under the circumstances it may be appropriate if a letter of similar nature from the CMD as mentioned above, is made available to all shareholders. This will to enable them to be better informed on the progress made by the company and its future plans and have confidence in the company and NRE group.

I would appreciate if you would address these issues and give me a reply.

Regards,

Ajit Aranha

Dear Sir,

First of all, many thanks for your valued suggestions on updating of the GNMRL website and we will accordingly take requisite steps.

We have always kept and assigned our shareholders interests utmost priority and it has always been our endeavour to accomplish this objective in all matters concerning our shareholders.  

We, at Gujarat NRE, have always believed in making investments with a thought and vision to reap the benefit out of it at a time when it is most favourable and beneficial to all. The investments in oil blocks in Australia was one such investment whereby either one could have awaited until the full length of the gestation period and a much more longer period thereafter when the benefits would have actually flown or encash such valuable investment at a time when one gets the best potential value out of it. We chose the latter course of action to the best interest of the shareholders of the company, being most favourable at this juncture. Therefore, weighing all these things together, we thought it prudent to encash the potential benefit out of the block.

Regarding liquidity to the shareholders, we reiterate that we are exploring various options to provide liquidity to the shareholders while ensuring that maximum returns accrue to them.  

Considering all above we would advise you not to worry and keep your faith alive for the company.

Thanks and regards

Investor Service Cell

E-mail received from investor on 20th November 2012

Dear Sir,

Thanks a lot for your prompt reply , below information clarifies and would like to mention that have full faith in the company that it  will bounce back from current level.

Regards
Pravin

Dear Sir/Madam,

Please note that the company has recommended payment of dividend for the year 2011-12 out of reserves and therefore, its payment is subject to approval from Ministry of Corporate Affairs. Hope this clarifies your query.

Thanks & Regards
Investor Service Cell

Dear Sir ,

Please advise who is the regulatory authorities here ….I assume it’s the management of the company

Regards
Pravin

Dear Sir/Madam,

Please note that the payment of dividend for the year 2011-12 by the Company is subject to approval from regulatory authorities. Under the circumstances, we are unable to make payment of dividend till we receive the requisite approval. We had applied for the approval long back and we are awaiting the same.

We may assure you that we shall disburse the dividend immediately upon receipt of the requisite approval.

Thanks & Regards,
Investor Service Cell

Hello Sir ,

I am a Shareholder in your company and holding 1,75,000 shares , As per your announcement of dividend
Of 50p , sorry to inform you that I have not received till date whereas your book closure was last month.

Please advise are we going to get this dividend

Please revert
Pravin Mendonca

E-mail received from investor 0n 30th October 2012

Dear CMD of GNMRL,

further to our mail on 5th oct,further detils are given below  as per  advise of some more gnmrl share holders. the amount of rs 192crs they feel is peanut compare to 10000 &add sq klmts of area wtichi is one of the best &very potential areas as per your  profile details.when such is the case the amount reailised is very small instead of some 2 to 3billions dollars.now question is how to improve the market sentiment &confidence after loosing such valuable asset.also even with  these so called black gold materials like coal, metcoke like kind of material not giving any value to the coy how gnmrl will command good valve in the market for going to public issue. with all these back ground gnmrl share holders are loosing interest though you are mentioning that management is minority shareholders friendly creating wealth for them.they all strongly feelng that all these facts  to be published in importent financial news papers.but i told them to be patient &get a reply for all these details. we all hope you also would have been felt at the same wayas we are feeling today if your in our postion. hope get a clari fication at the earliest in a convincing way.

Gowramma,
GNMRL share holder, this is on  behalf of southern india shareholders

Dear CMD,

on oct 4th we leart that oil &gas exploration area was sold for rs 192 crs. by gnmrl.this is a shoking news for all most all southern india gnmrl share holders. reason is that in all right issue time it was indicated that oil &gas blocks are of world class quality which has huge potentiality.we are banking on this area only as we may get good share value when it goes for public issue since manage ment &we all belived that coal &met cocke areas areas  like black gold but only in gnmrl/nre its value is less than black stone. mainly though it is really black gold but in gnmrl it has no value because  gnmrl/nre performence becoming bad to worst year after year.now we shareholers strongly  feel that we are all cheated &feel that management is interested only grabing the money  from share holders &other sources as much as possible ,finally it will drop us to water at the appropriate time.all said &done in coy profile  appears to be bunkum.now we all  feel no hope in this coy only thing we have to wait &see how fast we loose our money invested & remember for  our cmd with all credentals for ever.these wards are comming from shareholders community as we all invested our hard earned money in this coy thinking that cmd is well qualified with credentials from the premier institute of india.

any way kindly clarify the factual situation about future plan of the coy reg public issue or any future plan before things  becomes worst.this is mainly out of frustration.hope you all unerstand our feelings.

Gowrmma,
GNMRL share holder.

Dear Sir/Madam

We have always kept and assigned our shareholders interests utmost priority and it has always been our continuous endeavour to accomplish this objective in all matters concerning our shareholders.  Further it is regardless to mention that we have always communicated with our shareholders on a regular basis to mitigate their concerns and to give them an update and overview of the group’s  operations, its performance and developments, both in India and Australia.

We, at Gujarat NRE have always believed in making investments with a thought and vision to reap the benefit out of it at a time when it is most favourable and beneficial to all. The investments in oil blocks in Australia was one such investment whereby either one could have awaited until the full length of the gestation period and a much more longer period thereafter when the benefits would have actually flown or encash such valuable investment at a time when one gets the best potential value out of it. We chose the latter course of action to the best interest of the shareholders of the company, being most favourable at this juncture when the global economic scenario is in doldrums and the world financial markets are experiencing turbulent times.

Safety of the investments of the minority shareholders is of paramount importance to us. Therefore, weighing all these things together, we thought it prudent to encash the potential benefit out of the block.
We reiterate that we are exploring various options to provide liquidity to the shareholders while ensuring that maximum returns accrue to them.  

Considering all above we would advise you not to worry and keep your faith alive for the company.

Thanks and regards
Investor Service Cell

E-mail received from investor on 14th May 2012

Dear Mr A. K. Jagatramka,

I am writing to you after months and the reasons are mentioned below.

Market Capitalisation of Gujarat NRE Coke has gone nowhere as compared to what it was in early 2007.

However the company can boast of an Asset base which is multiple times higher than in early 2007.

REASONS : The Net Profits of the Co have not gone up in any big way in last 5 yrs inspite of big presentations and expectations. All Cos which have been declaring good results and dividends are being getting good valuations.

EXPECTATIONS : Shareholders expect that since now both the mines in Australia are under Longwall Production Technique, Production is bound to increase significantly over next few months and stay at high levels for years to come (as stated in the Latest Presentation of the Co.). Price of Coking Coal is still at very good levels and hence Consolidated Results of Gujarat NRE Coke should be very good starting from the next 1 or 2 Qtrs.

The management should do everything to keep shareholders informed regarding higher production levels being achieved etc.

Now is the time for Gujarat NRE to stand up and give good results which everyone has been waiting for from last 4-5 years. I sincerely hope that the markets will respond positively to good results that the co will declare for qtrs to come. If the time is not ripe now, with both mines under longwall production and after heavy investments and 4-5 yrs of patience, then i doubt that there will be a better time to stand up and deliver for the Gujarat NRE Group. Investors are frustated with seeing only Good Presentations, ONLY THING REQUIRED NOW IS GOOD CONSOLIDATED RESULTS.

Yours faithfully.

Anuj K. Agarwal
Haridwar

Dear Mr Agarwal

Thank you for your valuable insights.

As rightly observed by you, our mine development plans are on track and we do expect that the production from both the mines will rise considerably in the coming days. We do keep investors informed about our latest status through information shared on our website www.gujaratnre.com

You would appreciate the fact that mine development is a longer gestation period activity and it is after some time we can actually start benefitting from the fruits of the development. Also, the results of the Company is influenced by a host of factors, like the current economic and industrial activity scenario, foreign exchange rate, market demand, etc, apart from increased production of the company. Our basics are strong, and we feel that is only a matter of sometime that the investors will reap the benefits of staying invested with Gujarat NRE. We value our long term investors and look forward to having your association as our valued investor in future as well.

Thanks and regards

Investor Service Cell

E-mail received from investor on 12th January 2012

Dear Vimal Taparia,

We are shareholders of GNMRL for over 4 years now and Gujarat NRE Coke for many years now. Your (past dated) offer of OFCB of GNMRL being received on 10th of Januray 2012 by email and that even without any forms is untimely and time pressing for any early bird discount to be meaningful - would you agree? Please raise this concern to Mr. Arun Jagatramka.

I would certainly appreciate few unknowns if you can help answer after consulting Mr. Jagatramka with whom I had many occasions to meet in Ahmedabad-

1) If market conditions turn favorable say by August 2012, what is the most likely time in year 2012 for IPO of GNMRL to come assuming your Red Herring is already SEBI approved, is current and you do not need any extension?

2) If we are interested in your OFCB of GNMRL, what can you do about offering early-bird discount of Rs.600 (YES, I know about Rs.300 discount
till January 28, 2012) for which there is practically no time left to get your application form, understand the terms, arrange for funds - nothing can be done in rush?

3) Hypothetically say someone has 4500 shares of GNMRL, would you only allow 4 bonds or would you approve request for more than 4 bonds say 10 or 20 or 200 ...?

Your timely response is appreciated.

Warm Regards,

Mihir Sandesara

Dear Mihir

Thanks for raising your concerns.

we are expecting GNMRL to be listed within March, 2013 and as such have allowed 18 months time in the OFCBs.

There is no limit on additional bonds application by shareholders and the same would be favourably considered subject to overall size of the issue.

Early bird discount dates were fixed in relation to the last date of the issue.  Hope you would understand the same.  Physical forms have already been posted and email was sent only as a backup.  However, your request is noted.

cheers

Arun

E-mail received from investor on 20th December 2011

SIR,

I AM A SHAREHOLDER AT GUJARAT NRECOKE LTD SIR I AM VERY MUCH WOORIED ABOUT RECENT PERFORMANCE OF OUR SHARE PRICE IN THE MARKETS.   SIR WHAT WENT WORNG IN THESE FEW MONTHS THAT THE PRICE OF OUR MAINE EQUITY SHARE IS MORE OVER SAME AS DVR SHARE PRICE 15.00 RS 16.00RS I UNDERSTAND THE MARKETS ARE NOT DOING WELL BUT AS A SMALL RETAIL INVESTOR SIR I AM LOOSING MY HARD EARN MONEY THAT TO IN  A COMPANY WHICH I KNOW THE FUNDAMENTALS. AN HAS A MUCH QUALIFYIED MANAGEMENT AS YOURS, MARETS ARE IN NOT GUD SHAPE FROM FEW MONTHS BUT  15.00 16.00 RS. ITS SOME THING I HAVE NEAVER SEEN WITH A COMPANY WHICH HAS SUCH A GOOD FUNDAMENTALS AN WHICH IS LEADER IN ITS SEGMENT.

SIR AND I WOULD ALSO WANTED TO KNOW WHATS THE RECENT NEWS REGARDING SHARES RELEASING AN ALL AT THE SITES BY RELIANCE CAPITAL.
 
SIR I HOPE AT YOUR MANAGEMENT  COMPANY WILL AGAIN MOVE TOWORDS ITS HIGHS AN HOPE TAHT A BRIGHTER SUN WILL RISE

THANKING YOU,.

Yours truly,
Chandan Amesar

Dear Mr Chandan

I thank you for your faith and confidence on the Company.

First of all I would like to inform you that all the shareholders, whether big or small, are valuable to the Company and you are equally valuable as any other shareholder of the Company.

As you are aware that the global economic scenario is in doldrums and the world financial markets are presently experiencing turbulent times and India being a part of the world economies order is also experiencing the similar fate.

The stock market in India coupled with the debt crisis happening in Europe and the US is running on a bearish platform, thereby having a telling effect on the stock performance of all companies including ours. Stock movements today are irrespective of any fundamentals and are dramatically driven down by external factors.

The performance of our Company is well justified by the half yearly result of the Company ended September, 2011 which is almost twice as compared to half yearly result of September, 2009. Thus, it is quite evident that the share price of the Company today is irrespective of the strong fundamentals of the company, rather it is driven by shaky world economic conditions to which one has no control.

If you go back to the stock movement history of GNCL (since 2008) you will find several such instances wherein the stock has fallen to the present levels and have bounced back to the good heights. Of course, when the global economic condition improves and the market stabilizes one can expect the history to be repeated. 

Further, with regard to your query on share release we would like to clarify that we had made a disclosure to the stock exchanges on 11th Nov, 2011 regarding release of 2 lac shares by Reliance Capital Limited out of the total shares pledged to them.

Considering all I would advise you not to worry and keep your faith alive for the company.

cheers

Arun

E-mail received from investor on 7th October 2011

Sir,

Few months ago, Gujarat NRE Coke Ltd was to raise upto US$ 60 million through issuance of Foreign Currency Convertible Bonds (FCCBs). Nothing is heared about the above mentioned FCCBs. Aleady, Guj. NRE has started its journey towards down south to touch a new low. Yet, you are still claiming that price of met coke, is ruling high. Promotors of Guj. NRE are pledging their shares.  It is rumored that as the share price of Guj. NRE has come down than the pledged price, sources to whome your shares have been pledged, hve started selling. hence, the drastic slide in Guj. NRE share price.  You may be knowing the correct position. yet, there is no clarification from your side to your share holders. Any how, with 2 or 3 weeks, Guj. NRE. fin. result would reveal it all including your claims whetther the same  are true or not.
Please, let me know the latest position on FCCBs. You may pl. treat this most important and urgent.

Yours truly,
Bhanu Najeemudeen
Cochin

Dear Mr Bhanu

It becomes really painful when people ignore the ground realities and choose to remain in their self created glass houses, by keeping their eyes shut and ears closed.  Would request you to wake up.   It seems you are not aware about the current state of stock markets precipitated by the eurozone crisis for which we could not have been responsible in any manner nor could  have envisaged in any manner a few months back.    When you mention that Guj NRE has started its journey down south to touch a new low, have you analysed how many shares in the market have done so, or  do the current stock market price reflect in any manner the true fundamentals of the Company. 10% dividend on current market price gives a taxfree yield of 5% and 6% respectively on the 2 classes of shares.  What else is expected by the investors from Company management.   

We also own 69% in GNCCL(GNM)  which owns 2 hard coking coal mines in Australia with Resources of more than 650 million tonnes which are valued in the range of US$ 3 to US$ 10 per tonne by any valuation expert.  Implying such valuation parameters even at the lower end of US$ 3 per tonne we get a valuation of the mines at 2 billion US $ or Rs 10000 Crores against the current market cap of the company around Rs. 1200 Crores.  Such resource based valuations are not reflected in the usual EPS or PE calculations.  It is for the investors to make their own value judgements.

Yes, we did plan to issue the FCCBs but would like the markets to be stable to get a good value for the shareholders rather than destroy shareholder value by being desperate.

Instead of issuing shares at a throwaway price, raising debt is  a much better option to keep the projects going on and this strategy has allowed us to give fabulous returns to shareholders in the longer term which I am not prepared to change to keep few people happy in the short term.  Promoters have pledged their shares mainly for borrowings for corporate purposes and none of the pledged shares have been sold.  If there was any such sale, our percentage holding would have come down.

Hope things are clearer to you and you would understand the ground realities instead of day dreaming.

cheers

Arun

Dear Shri Arunkumar Jagatranka,

I am an investor in your company GNMRL. It is over 6 months from your last letter dt.2-5-2011 addressed to share holders. Since this company is not listed on the stock exchange I request you to communicate the happening in the company with shareholders atleast once every 6 months (through your website - is also suffecient). Such a step will stop people from spreading unwarranted rumours. Trust you will take this feedback positively.

With Best Regards,

Bhushan Vimal

Dear Mr Bhushan,

Thank you for the valued suggestion. We believe in good communication with all our stakeholders. We regularly post the updates in our website www.gnmrl.com as and when important event happens. We do also regularly communicate with the shareholders in all troubled times viz. meltdown in stock markets, any rumour mongering about us etc. to dispel their misconcepts and to restore confidence in the group. 

We are a core investment company with sizable investments in our Group head, Gujarat NRE Coke Ltd. (GNCL). All important events about the GNCL and the coal & coke industry is updated on website www.gujaratnre.com. These happenings also have bearing on the GNMRL as equity investor. Our Annual Reports also has updates on the progress of our oil exploration venture in Australia.

I would also be sending a personal letter to GNMRL shareholders shortly as suggested by you.

Regards,

Arun Kumar Jagatramka

E-mail received from investor on 3rd March 2011

Hi Mr Arun,

As a retail investor with a lot of faith in you & your company I have invested big chunk of my hard earned savings in gujnre & gnmrl in the last 2 years.

However would like to express my dissatisfaction because in the last 2 years even a bank fix deposit would have given positive returns then your stocks. When the markets are still close to highs gujnre is making new lows everday.

Also would like to understand why the IPO of Gnmrl was not done as per  your commitment that too when the markets were good & huge number of  companies came with their IPO's.

There are no visible steps which the management is taking to resolve the issues. Even the dvr bonus had taken ages to come through what about future bonus plans?

I share the sentiments of the several retail investors & seek clarity & action from you as without which you will only loose confidence of more & more shareholders.

Thank you for your time.

Would like to hear from you soon.

Regards

Harshang Shahn

Dear Mr Shah,

At the outset I would like to put the record straight that the company’s operation has been progressing in the right direction. The production of coking coal is on the rise from our Australian hard coking coal mines and we are investing heavily in further development of the mines to increase production. Back home in India, the met coke production capacity is also increasing and our order books are full with steady export commitments in addition to meeting the growing domestic demand. The massive mine development and expansion works underway does come with some pain and it is only a matter of time when this short term teething issues translate into huge gains and wealth creation for the company and the shareholders.

From my experience I can say that those investors who had patience and confidence in the company did realize a huge gold mine in the form of GNCL in the last decade. Gujarat NRE Coke Ltd was identified as the 4th best performing stock in the last decade, with a history of constant reward to shareholders through dividend and bonuses.  I personally believe that the current decade to 2020 would see much higher investor returns than that we saw in the last decade and always look forward to have such investors who are prepared to be in the journey with us.

The GNMRL IPO is very much in our radar and we are working towards it and would come out with the same at the earliest, at an opportune time.

cheers

Arun