servotech engineering industries ltd Management discussions

(a) INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Indian Process Engineering industry is serving as a major contributor to the Indian Economy, through its export earnings and employment generation potential. The 1980s saw the transition phase of the Industry from being a supplier of process engineering goods to an exporter of high standard and quality engineering products and value-added products and 1990s witnessed implementation of long-term program implemented by Government provided the required fillip for the Industry.

(b) OPPORTUNITIES & THREATS:

The long-term growth prospects of Industry continue to remain grim. The threats to the Companys products Include severe competition both in domestic market through increased Inflation, labor cost, Interest rates, etc.

(c) SEGMENT - WISE OR PRODUCT - WISE PERFORMANCE.

Your Company operates in only one segment

(d) RISKS & CONCERNS:

The risk management function is integral to the Company and its objectives include ensuring that critical risk is identified continuously, monitored, and managed effectively in order to protect the companys business. Top management of the company is well acquainted with risk inherent to the business and strategic decision taken by the Board.

Directors and officers liability are risks arising out of their commitment, statement and decision, which may result in legal liability.

(e) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company is working on to establish framework of Internal Controls to safe guard and protect the loss from unauthorized use of assets. The Board, through the Audit Committee, reviews the key issues like timely and accurate recording of financial transactions and adherence to applicable Accounting Standards, optimum utilization and safety of assets, an effective management information system and Compliance with applicable laws, regulations, SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 and Management Policies.

(f) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE.

Your company is committed to offer the most competitive price with the overall parameters set by the general market conditions. Your director perceives that the business of the company stands on a normal ground & hope to improve in the coming years.

(g) MATERIAL DEVELPOMENTS HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED.

Human Resource is the most valuable asset in any organization. The Company efforts to strengthen positive work Culture and environment which promotes innovation and excellence as also mutual trust between all the personnel and the company. It lays strong emphasis on training and developing the technical and behavioral skills of the employees at each level so as to upgrade the competence and remove all level of Inefficiency.

By Order of the Board

Sd/-	Sd/-
Radheshyam Lahoti	Jyoti Kasat
Managing Director	Director
DIN:00755363	DIN:07143575

Place: Mumbai

Date:14/08/2023