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

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

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

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

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

On 20th November 2010

Mr. ARUN,

I appreciate your vigour in repeating the very same Australian precious met coke story over the years untiringly. Truly you have not bored to do so. But the investors are tired and bored to hear the same old story as nothing is reflected positively in the financial result. One cannot turn around the company by exporting one or 2 shipments. Pl. be kind enough on the investors who believe your words. Pl. do not take them for ride. We are not babies. we also read newspapers and have some common sense to analyse and compare the results.

Bhanu najeemudeen,
Cochin

Dear Mr Bhanu

I can tell you that history is being repeated after a decade.  I have faced the same comments for several years through 1999/2003 as well as 2005/2007 when I was building up the company and those investors who had patience did realise a gold mine in the form of GNCL.

GNCL holds 77% stake in 2 australian coking coal mines with a target production of 6 million tonnes of coking coal in 4 years' time.  The potential value thereof is several times the present net worth/market cap of GNCL and would get reflected over next few years.  We dont believe in playing around with investors with any false promise of short term returns and believe in longer term growth of the company and creating much larger wealth for all stakeholders in the long term. This is in addition to the value that remains and continues to grow due to our dominant position in coke business.

This strategy did lead to unbelievable investor returns in the decade 2000/2010 but was not without continued pain over several quarters and several years in 2001/2002 as well as 2003 as well as 2005, 2006, 2007, 2008/09 etc etc. I personally believe that decade to 2020 would see much higher investor returns than what we saw in the earlier decade, but this doesnt come without the current pains that we are happy to endure and always look forward to having such investors who are prepared to be on this journey with us.

The world is focussed on quarterly to such an extent as if the world is coming to an end tomorrow.  I am an optimist and remain an optimist and cant end my life every quarter to start afresh in the next quarter. As about your comments about being babies and analysis, enclosed find my thoughts penned in april/may-2009 which would tell that sheep are not babies.

cheers

Arun

Click here to see the attachement of the above reply

On 4th September 2010

Dear Mr Armugam,

I am writing to thank your for your kind words.

I have personally believed in delivering my best and that God is there to judge our deeds.

Thank you once again for your noble words.

Regards,

Arun Kumar Jagatramka