Cenlub Industries Ltd Management Discussions

ECONOMY AND MARKETS

The year under review, 2024-25, was a year of Elections with 3 major world democracies, India, US and Indonesia going to Elections. This had partial impact on Global economic scenario. However, Indian Economy has displayed steady growthamidst Global uncertainties. Market sentiments were better and there was steady demand for your Companys products from domestic industrial segments as well as from international sector. Some international conflicts and wars in some regions of world have affected the demand from International clients but overall, your company has been able to maintain growth, as compared to previous year.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Cenlub maintained its leading position as a reliable vendor in the field of Industrial lubrication systems for Machine tools, Steel, Cement, Sugar, Paper and vehicles. Your company is OEM to most of the reputed and established machine tool builders, particularly of CNCs and our plants at Faridabad and Bengaluru successfully catered to this sector in 2024-25.

With many Indian companies opting to set up Captive power plants, Cenlub has emerged as major manufacturer of Lube oil systems for Power sector. Companys production of these systems has remained steady in current year, and our customer list includes reputed domestic customers as well as MNCs.

Your company has consolidated its position in prestigious Oil and Gas sector, adding more domestic as well as International clients and MNCs. Company now providesCE certified systemson demand for export markets InEurope.Our customer base in this sector is growing at a very fast rate, contributing significantly to companys turn over.

Company is projecting robust growth in its Lubrication business in upcoming years and therefore, investing heavily in Its infrastructure to meet targeted growth. Companys manufacturing capacity is being augmented by adding more facilities and new work areas are being created by intelligent restructuring of existing plant area. More material handling facilities including additional forklifts and cranes have been provided to improve manpower efficiency and to shorten project delivery times. Company has maintained excellent On-delivery performance due to these efforts and customers confidence in Cenlub as a preferred supplier has increased. Company has also made significant investment on plant and machinery for meeting statuary compliances regarding Environment and Pollution control, for maintaining overall sustainability.

FINANCE AND ACCOUNTS

The following financial review is intended to convey the managements perspective on the financial performance of the company at the end of the financial year 2024-25.

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013 and generally accepted Accounting Principles in India.

FINANCIAL PERFORMANCE

Financial performance of your company has been good in current year. Profit/(Loss) before taxation (PBT) for the current financial year 2024-25 was Rs. 1293.93lacs as comparedto Rs. 1220.72 lacs for the previous year.

Due to steady performance of company in the year under review, there is appreciation in value of its share which is being traded at high values.

OPPORTUNITIES AND THREATS

Your Company is continuing to explore opportunities in the field of Power Generation and Oil and Gas sector and it is making

best use of available opportunities. Company is also targeting good business in the field of Grease Lubrication systems for Vehicles and Heavy earth moving machinery. However, threats also exist as business in these fields are subject to various factors, Including Government policies and International business trends. Competition from other suppliers also exists, putting pressureon pricing.Hovvever,threats, wherever seen are being mitigated by taking preventive measures, customization and sustained developmental efforts. Companys sustainability in this regard is very high and it is in a sound position to meet any such challenge.

Company is also trying to venture into Non-Lubrication products, such as fuel dispensing systems to expand its product base. Further opportunities are also being explored to frame up policies and direction of companys business in the time to come.

OUTLOOK

Going forward with the current situation, overall outlook is good and Companys business is expected to expand appreciably. Company as such, Is confidant of growing its existing domestic as well as International business in the coming year and also optimistic about venturing successfully into new sectors.

RISKS AND CONCERNS

Due to inflation, there is impact on cost of raw materials and other inputs. Manpower has also become expensive and attntion rate has gone up significantly which is affecting timely execution of Projects. As such, system pricing and profitability is under pressure, affecting project order booking. Also, International political situation Is not stable, putting export projects at risk. All these matters are of concern. However, company management is intelligently handling the situation and mitigating the risks & concerns with precise planning, following lean manufacturing procedures and motivating work force to minimize attrition and to increase productivity so that impact of above risks can be eliminated/minimized.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has invested in implementation of a new ERP system which has made major improvements in companys working including better internal financial control, Inventory and supply chain optimization and effective Human resource management which ensure that all activities and transactions are recorded, authorized and reported correctly with superior efficiency and accuracy, apart from safeguarding its assets against loss from wastage, unauthorized use, and removal.

The internal control system is supplemented by documented policies, guidelines, and procedures. The Companys internal auditors continuously monitor the effectiveness of the internal controls with a view to provide to the Audit Committee and the Board of Directors an independent, objective and reasonable assurance of the adequacy of the organizations internal controls and risk management procedures. The Internal Auditor submits detailed reports on quarterly basis to the Audit Committee and management. The Audit Committee reviews these reports with the executive management with a view to provide oversight of the internal control system.

The Company reviews its policies, guidelines, and procedures of internal control on an ongoing basis in view of the ever changing business environment.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES AND INDUSTRIAL RELATION FRONT

The Company is maintaining good relations with its employees and values the need for continuous growth and development of its people, In order to have greater productivity and provide job satisfaction and also equip them to meet growing organizational challenges. For this, Company is taking various initiatives to enhance their capabilities by providing internal trainings and by skill-development of lesser-experienced staff. This will help in enhancing their emotional and intellectual engagement with the company.

Your Company has genuine concern and accords top priority to safety and welfare of its employees and all necessary environmental health and safety measures are adopted and enforced.

CORPORATE GOVERNANCE

Your Company is in compliance with the governance requirements provided under the Companies Act,2013, the aforesaid Companies (Amendment) Act, SEBI (Listing Agreement and Disclosure Requirement)Regulabon, 2015, the applicable Secretarial Standards issued by the Institute of Company Secretariesof India and approved by the Central Government

The Company has in place all the statutory committees as required by the law. Details of Committees are given in the Corporate Governance Report.

The policies framed and adopted by the Company in compliance with statutory requirements are available on the website of the Company http://cenlub.in/investor-relations. The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 also provided for formulating the Code of Conduct for members of the Board and Senior Management, Codes of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information and Code of Conduct to regulate, monitor and report trading by its employees and other connected persons. Your Company has formulated the above codes and abide with the regulations.

STATUTORY COMPLIANCE

A declaration is made at the Board Meetings regarding Compliance with provisions of various statutes after obtaining confirmation from all the units of the Company. The Company Secretary ensures compliance with the SEBI regulations and provisions of the Listing Agreement.

	For and on behalf of the Board of Directors
Date: August, 12 2025	MADHU MITTAL
Place: Faridabad	Chairman
Registered Office:	DIN:00006418
233-234 Sector-58
Faridabad-121004
CIN-L67120HR1992PLC035087