ASL Industries Ltd Management Discussions

Annexure -II

Industry Structure and Development

In Financial Year 2024-25, the Indian manufacturing sector witnessed steady growth, supported by government initiatives such as “Make in India,” rising infrastructure investments, and increasing demand from core sectors. The railway industry saw strong momentum driven by modernization programs and enhanced public spending, while the defense sector continued to benefit from indigenization policies and higher budgetary allocations. The automobile industry, despite facing cost pressures, recorded sustained demand in both passenger and commercial vehicle segments.

As disclosed earlier after the completion of takeover formalities the change in management take place and the ongoing activity of the Company shut down i.e. manufacturing of steel parts, etc.

• The Company remains debt-free, enabling it to maintain financial flexibility and pursue opportunities in line with its long-term strategic direction.

• Policy focus on domestic manufacturing enhances opportunities for local suppliers and reduces reliance on imports.

• Government policies at both Central and State levels may directly or indirectly influence the overall economic climate and, consequently, the Companys performance.

• Intense competition from both domestic and global players may limit pricing power.

The risk factors are classified as under for the sake of better clarity and increased understanding:

• The Companys performance is closely linked to the availability and retention of key personnel, including senior management. Any inability to attract, retain, or effectively replace such individuals could adversely impact business operations, financial results, and overall growth.

• The Companys revenue stream is dependent on the demand for its manufactured products. A slowdown in demand from end-user industries such as railways, defense, or automobiles poses a significant risk to the Companys business and profitability.

• Political, economic, or macro-environmental developments beyond the Companys control may adversely affect operations, cash flows, and financial performance.

• Frequent changes in laws, rules, and regulations in India, including those related to corporate governance, taxation, and industry compliance may create uncertainties. Adverse application or interpretation of such laws could materially impact the Companys business, financial results, and future outlook.

The Company has adequate systems of internal control meant to ensure proper accounting controls, monitoring cost cutting measures, efficiency of operation and protecting assets from their unauthorized use. The Internal Audit department of the Company reviews control measures in the management of risks and opportunities and ensures adherence to operating guidelines and compliance with regard to regulatory and legal requirements.

Your directors take this opportunity to express their deep sense of gratitude to the all the stakeholders for their continued support and co-operation during the year under review.