On 11th September 2009

Mr. ARUN,

I AM VERY MUCH PLEASED BY THE WAY YOU TREAT YOUR SHAREHOLDERS. I, USUALY INVEST, AFTER STUDYING A COMPANY'S FUTURE GROWTH AND TALENT OF ITS MANAGEMENT. GUJARAT NRE COKE IS ONE AMONG TOP 5 SCRIPS IN MY MULTIBAGGER LIST. GUJARAT NRE COKE IS HAVING MINES IN AUSTRALIA. RECENTLY I HEARD A COMPANY NAMED 'VARUN INDUSTRIES' ENTERING IN TO URANIUM MINING IN MADAGASCAR, AFRICA. THEY DONT HAVE ANY PREVIOUS EXPERIENCE IN THAT SECTOR.BUT GUJARAT NRE COKE HAVE THAT. WHY CANT YOU TRY URANIUM MINING THEN?. I THINK, IT WILL BE EASY FOR YOU TO OWN URANIUM MINES IN AUSTRALIA OR MADAGASCAR OR ANYWHERE ELSE AS YOU HAVE MINING EXPERIENCE AND TALENTED MANAGEMENT GROUP. IF YOU ENTER IN TO THE URANIUM BUSINESS THAT WILL BE AN EXTRA WEALTH FOROUR COMPANY. DO YOU HAVE ANY SUCH FUTURE PLANS?

WAITING FOR YOUR REPLY.

Thank you

Priyanka.

Thanks for your kind words and some good advise.

Presently we are concentrating on the development of 2 excellent hard coking coal mines that we have and it does not make sense to divert valuable energy or resources elsewhere. At the same time we are looking to add power plants in India and multiplying our coke making capacities in India.

We should never bite more than what we can chew.

Cheers
 
Arun

On 11th September 2009

Thank you for your reply. you again proved your talent n excellent decision making.

Cheers

Priyanka

On 7th September 2009

To
The MD
Gujarat NRE Coke Ltd
Kolkata

Dear Mr. Jagatramka ,

We have just read the announcement made to the Stock Exchanges reg. Board Meeting to be held on 19.09.2009 reg. issue of Class B Equity Shares as bonus issue, and we are unable to understand that what has prompted the Management to do so.

The Cos. Diluted EPS on expanded equity base for 2008-09 is below Rs. 2 per share.
The June qtr EPS is hardly anything due to poor market conditions & Co. carrying high value inventory.

The market conditions hv improved but China is still selling Met Coke below USD 400 per tonne FOB. This means that even this years EPS will not be nothing much to write home about.

Now if u further expand the equity base, we fail to understand where this EPS will come from. Additionaly Dividend burden will increase for the coming years specially when the co. is expanding its production base & is in need of funds for doing so.

Last year when Bonus was declared the Shares fell badly on the exchages due to some of the above mentioned reasons.

SO WE FAIL TO UNDERSTAND WHAT R U DOING?? WHY DONT YOU WAIT FOR EPS TO INCREASE SUBSTANTIALLY TO LEVELS ABOVE Rs. 20-30 per share & then declare Bonus.

DONT YOU WANT TO BE RUNNING A CO. WHICH HAS GOOD EPS.

WE REQUEST YOU HUMBLY to reconsider this Bonus issue very very carefully & if possible decide against it.

Our no. of shares is going on increasing but the per Share Value is still waiting to come to decent levels at the Stock Exchanges. We are anguished & are sorry if our words are on the stronger side, but if the Co. is going to be so liberal regarding increasing its Equity but not being able to simultaneously maintain its EPS & hence its share price, we may to have to reconsider reg continuing our investment in the shares of the Co. We have not sold a single share till date since June 2006 when we first purchased the shares & now hold 82,000 shares. We dont want more shares as Bonus but we want good EPS which leads to Shares maintaining at levels above at least Rs.100 at the stock exchanges.

DON'T YOU WANT TO ENSURE THAT AT LEAST RS 100 IS MAINTAINED FOR DIGNITY SAKE UNDER NORMAL CIRCUMSTANCES.

Mr. Jagatramka, i saved your phone no. when you called me but on your request, have not called you back again, neither have i shared it with anybody else because i don't want to disturb you in day to day work. So please understand our point of view & take wise decisions for the future of the Co. Thanking You Waiting for quick & positive response.

Regards
On behalf of Smt. Santosh & Ruchi Agarwal
C.A. Anuj K. Agarwal
Haridwar

Dear Mr Anuj,

Pl be rest assured that all your queries are seen as well as replied by me personally.

I appreciate your sentiments and can only remind you that what matters for any investor is the total value of his wealth (or shares held by him) and terms like EPS or PE are relevant only in the context in which they are used.

I am sure you have a copy of my letter written in March this year, but I have enclosed a copy again for reading once again.

Effect of Bonus on market price of shares as well as total wealth of shareholders is a matter subject of debate and I have never found favour with most of my decisions on the day they were taken, but with the benefit of hindsight they have generally been found to benefit our investors immensely.

I can once again assure you that I strongly believe in a very interactive democratic thought building as part of our decision making process and all actions are taken with a strict sense of shareholders value creation in the longer term, which is proved beyond doubt in the attached letter as well.

As such my request not to be deeply concerned or carry any anguish and have faith in us to keep enhancing shareholders’ wealth.

I do appreciate your kind understanding in not disturbing me on phone.

Cheers
 
Arun

On 9th May 2009

Dear Mr. Arun,

             I am am an investor who has just started investing in stock market. After really getting into research for a couple of months I zeroed down on NRE Coke as the company to look forward in the near future. I hope my optimism stays afloat as I have recently bought shares of your company. Mr. Arun my query was regarding nre's future plans outside the country, are you looking forward to see the company growing more aggressively and acquiring other players in the long term or are you just satisfied by your presence only in Australia. To be more precise how would you define the pace of growth plan of Gujarat NRE Coke in the future ahead. Would it be aggressive?.

Regards
Abhinav Bhushan
DP ID:IN302269

Dear Sir,

Acquisition for the sake of it makes no sense. The coal mines that we have acquired in Australia are all based on the quality & quantity of raw-materials availability at a given price. While our immediate focus is on the development of these mines with a view towards enhanced production to meet the growing global demand of coking coal, we are open and will consider good opportunities as and when they present themselves to us.

Allow us to take this opportunity to thank you for coming on board as an investor.

For further details, please visit our website www.gujaratnre.com

Thanks and regards,

Investor Service Cell
Gujarat NRE Coke Limited
Block C 5th Floor,
22 Camac Street,
Kolkata - 700016
Ph: (033) 22891471-75,
Fax: (033) 2289 1470,
Please Visit Us at: www.gujaratnre.com

Dear Arun,

            It gives me immense pleasure to congratulate you for having such an efficient investor service cell. I also thank everyone at NRE Coke for such an immediate and quick response on my query. I thank you for welcoming me aboard as an investor. I am happy to see that my hard earned money is in good and safe hands. My query just reflects on the way I want to see NRE Coke growing  as not only India's but world's largest and best Met Coke producing company in the world. I am an investor with a very long term view and hope that my dream realizes for NRE Coke sooner than later.

Regards
Abhinav Bhushan
DP ID:IN302269

On 22nd January 2009

Hi
 
Thanks for the information.

I went through your Press Release and found that the Co is gradually going to increase the Production Capacity to high amounts in the coming 1-2 years. Also, i found Mr Arun's statement that the Coke Demand is not just decreasing but has nearly Vanished. In such a time why is it being thought of Increasing the production since you already have piled up the stocks with the current level of Production.
 
My another doubt is that many investore are creating panic by posting their views on sites like moneycontrol.com etc. that there might be many other cases like Satyam and NRE can be one of them. I would suggest you to Respond to such things as this can also affect the value of shares significantly.
 
Awaiting your(Mr Arun's) Response to my doubts.

 
Regards,

Ashish

Dear ashish
 
I have said that the current demand has suddenly gone down as if vanished, but that does not mean that coke consumption is going to stop or we shall stop producing steel.  Demand would certainly come back if not in 3 months then certainly in 6 months time, and we need to be geared up when the demand booms again in 2-3 years time rather see the opportunity go away just because we did not take the right decision which we are taking right now.  I am not operating the company for one or 2 quarters but with a much longer term lifetime view and as such my remarks should not be read in isolation but request to read the full press release.
 
As far as various sites mentioned by you, these are for investors to correct themselves since we can only respond to those that ask us and post whatever information we have on our web site rather than posting on 3rd party sites which we are not supposed to do.
 
Cheers
 
Arun Jagatramka

On 17th January 2009

Dear Sir

This is thank you for your CD on Gujarat NRE Coke Ltd. I have heard and saw the CD interviewed by CNBC. I appreciate your family co-operation for allowing you to travel India & Abroad.

I was little regretted as yourself have lesser estimated than Mr. Dhirubhai Ambani

Yourself has given to share holder by way of Bonus but every time Mr. Dhirubhai Ambani has given shares with extra premium. Actual Dhirubhai, Anil, Mukesh must try to become like you, inform this thing to CNBC.

Yourself must be praised or honored by share holder having started in Gujarat, in fact Mr. Ratan Tata has realised now about Gujarat for Nano car project.

I am little depressed to know that in the year 1997 yourself have traveled from Surat to Kolkata with Rs.200/- cash. Mr. Karsan Patel the Chairman of Nirma use to sell his Nirma Washing Powder on bicycle from door to door in the year 1975. This is possible only with God grace & good deeds from
Gujarat minerals, yourself also will be like Dhirubhai Ambani in few days
time.

I wish you healthy, Happy & Prosperous New Year.

Regards

Baburao Naik

Dear Mr Naik

Thanks for your kind words.

In line with the global melt down, our industry is also passing through a slowdown phase, but we remain fully optimistic about a bright future and shall certainly meet all your expectations in the years to come.

We are using the current slow down to build up the company further with an eye on the future and remain committed to shareholders wealth creation as we move forward.

Cheers

Arun

On 20th November 2008

Dear Arun

I am the Investor in your company for the past many years.
I am very much convinced the way you manage the affairs of the business.
We the investor community is very much grateful to you particularly, becuase unlike others who try to exploit the investors to the core, you care for the investor & reward him the maximum.

In this falling market, your promoter group companies are trying their best to absorb the floating stock and give support to the scrip and mopped up around 2.25 crores of shares from the market till date. Still the fall is not been arrested. why? and who is selling?
Where will it get support? Is Q4 order book is full? When are the earnings from mines get reflected in the company?

In this worst scenario when all the  companies are cutting down the output and postponing their development activities so to avoid debt trap, you are going ahead with your plans of expansion and increase the production.

I have invested about Rs.5 Lacs and bought around 10000 shares.

I was very confident when I was invested and I am observing the changes in my  mind that It is moving from very confident to just confident, Confident to ridiculous, ridiculous to worrisome and finally from woorisome to fear ( the big devil).

GOD BLESS YOU, ME AND THE INVESTOR COMMUNITY AT LARGE.

If you have any solace for me. please reply.

Thank you,

with regards
VIJAY

Dear Vijay

FIIs have been selling heavily without any regard to individual company fundamentals because of their own individual liquidity crisis.  Their holding has come down from around 35% in August to below 20% currently.  And everybody including yourself and ourselves have been caught unawares.

Fundamentally, yes the global economy is going through a freeze situation where nothing is moving but our working on the ground is not hampered because of the strength of the industry we are in and more particularly because of our faith in the Indian growth story.  It is only a matter of time before I would expect things to get moving. Of course, in the current shake up weaker players would be wiped out but those that remain thereafter shall certainly emerge much stronger.

I can only add this much that this is the worst period that all of us are facing in the best ever year that we have had for no fault of our own. We are confident of emerging much stronger from this crisis.

Have patience

cheers

arun