Bhagawati Gas Ltd Management Discussions

The Management of the Company is pleased to present its report on the Industry Scenario including on the Companys performance during the financial year 2024-25.

In 2025, we proudly launched our Health Care Division, dedicated to ensuring hospitals have continuous, safe, and cost-effective access to medical oxygen.

Global economy overview

Indian Economy REVIEW

The Indian economy in 2024-25 witnessed marked increasing consumption, growing dependence on LNG imports, ongoing infrastructure expansion, and proactive government efforts to promote a gas-based economy. However, challenges related to domestic production and competition from alternative energy sources necessitate continued strategic planning and policy support. The government implemented a Unified Tariff for natural gas pipelines to promote a "One Nation, One Grid, One Tariff" system. Policy initiatives like HELP (Hydrocarbon Exploration and Licensing Policy) and OALP (Open Acreage Licensing Policy) are in place to attract investment in exploration and production.

THREATS, RISKS AND CONCERNS

The Company is concerned about prevailing exposure norms, financial position, entry of new players in the market, rising competition from banks & multilateral agencies, uncertain business environment, fluctuation in rupee, likely increase in cost of capital due to volatile market conditions. Further, the state of business and policy environment in the country also has a cascading effect on the interest-rate regime, cost and availability of raw materials and gestation period & capital outlays required for raw material. General economic conditions may also affect the capacity and production of the company.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

As on date your company is doing business activity of supply and installation of medical oxygen gas plant and the Company is continue doing the business of treatment of waste water and water bodies like River, Lake, Pond, Drain etc. as well treatment of Industrial effluents by using Phytoremediation technology.

OUTLOOK

Bhagawati Gas Limited aims to consolidate and expand its diversified operations in the coming year. The Company is focusing on strengthening its presence in industrial gases, wastewater bioremediation, renewable energy, composite products, and international trading.

With rising demand for medical oxygen and PSA/VPSA technologies, the Company plans to expand its healthcare solutions portfolio to support hospitals and healthcare institutions with reliable oxygen supply. At the same time, its micro-algae based wastewater bioremediation and carbon capture solutions continue to position the Company as a key player in addressing industrial and environmental challenges.

The Company is also advancing discussions with ONGC for collaborative projects in rare gas extraction, geothermal initiatives, and sustainable energy technologies. These initiatives are expected to strengthen BGLs role in the emerging green energy ecosystem and open new avenues for growth.

With its proven expertise, strong technical base, and focus on sustainability, the Company is confident of achieving steady growth in FY 2024 25 while continuing to deliver innovative solutions across its core business segments.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company maintains an adequate system of Internal Controls including suitable monitoring procedures to ensure accurate and timely financial reporting of various transactions, efficiency of operations and compliance with statutory laws, regulations and Company policies. Suitable delegation of powers and guidelines for accounting has been issued for uniform compliance. In order to ensure that adequate checks and balances are in place and internal control systems are in order, regular and exhaustive Internal Audit of Office/plant are conducted by the in-house Internal Audit Division and external professional audit firm. The Internal Audit covers all major areas of operations, including identified critical/risk areas, as per the Annual Internal Audit Programme. The Audit Committee of Directors periodically reviews the significant findings of different Audits, as prescribed in the Companies Act, 2013 and in the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

FINANCIAL AND OPERATIONAL PERFORMANCE

During the period under review, your company diversifies its business activities in the business of Healthcare Division, dedicated to ensuring hospitals have continuous, safe, and cost-effective access to Medical Oxygen.

Your company is expecting to get good business in this area in coming years.

KEY FINANCIAL RATIOS

During the year, on a Financial Statement, there was no significant change in the financial ratios compared to that of the previous year.

HUMAN RESOURCES / INDUSTRIAL RELATIONS

Human resource management practices and processes play an active role at the company. The HR function is responsible for institutionalizing the values amongst the employees through robust foundation architecture, organizational effectiveness and strong winning culture. We nurture our employees for the long run though a structured role architecture and job responsibilities. Our workforce planning and segmentation further help our employees evolve in their career progressions. This leads to high performance culture and brings in a sense of maturity to handle larger responsibilities and further accelerate into leadership roles.

The company has a competency-based performance and potential appraisal systems for identifying and developing managerial talents and is reviewed on an ongoing basis. Emphasis is laid on providing adequate training to its employees, to meet the attitudinal and cultural values of the organization ethos to achieve customer satisfaction. As on March 31, 2025, the Companys total Manpower stood 12 employees.

The Companys internal control systems adequately include set of rules, policies and procedures that drive business, increase efficiency and strengthen adherence to policies. These controls and systems are designed keeping the nature of our business, its size and complexity in mind. Our statutory and internal auditors review our business and procedures on a periodical basis to avoid errors and a systematic flow of our business activities. All the significant observations, if any, are duly acted upon promptly. Reports of the same are thoroughly reviewed by the Audit Committee at their meeting.

The internal control systems are supplemented by an extensive program of internal audits. The internal audit function is empowered to examine the adequacy, relevance and effectiveness of control systems, compliance with policies, plans and statutory requirements.

This document contains statements about expected future events, financial and operating results of Bhagawati Gas Limited, which are forward looking. By their nature, forward looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as several factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirely by the assumptions, qualifications and risk factors referred to in the Managements Discussion and Analysis of Bhagawati Gas Limiteds Annual Report 2024-25.