Creative Castings Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS

I. An Overview:

The Managements Discussion and Analysis ("MDSiA") summarizes the financials and relays managements insights into the companys performance. This Management DiscussEon and Analysis Report of Creative Castings Limited, for the year ended on Match 31, 2025 contains financial highlights but does not contain the complete financial statements of the Company. I his should be mad in conjunction with the Companys audited financial statements, the schedules and notes thereto and the other information included elsewhere in the Annual fie port. Statements in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results might differ materially from those expressed or implied. MD&A is headed towards providing a narrative explanation of a companys financial statements that enables investors to see the company through the eyes of manegement and io enhance financial disclosure.

II, About the Company:

Creative Castings Limited, established in 1930, is Indias most trusted and quality-focused investment casting manufacturer and exporter, specializing in the lost wax process. With as installed capacity of 340 MT per annum, the Company is dedicated to delivering precision parts with assured material and casting quality. We are equipped with state-of-the-art facilities and expertise to uphold this commitment. The companys office and plant cover a total area of a,924 square meters, including approximately 3,500 square meters dedicated to production. Dur facilities are outfitted with the latest technology In production, testing, and measurement, and we have a full standby captive power gene ration system to ensure uninterrupted production.

The company is engaged in supplying over 5,655 different types of castings in as cast Si in fully machined conditions io almost every field of engineering applications such as pumps & valves, defense, oil & refinery, fire control equipment, automobiles etc.

Wi rh almost fpu r d a cad es of pxpe rie n ce in d 6 s igni ng a n if man ufectu ri ng com pi icated parts we ighrng from few grams to 120 kg:, the Company con handle large volumes 100000 pieces /month ability to handle more than 250 different alloys to customized specification.

The Company has had strong business relationships for over 40 years with 50%t Rs.f the worlds largest customers,

III, financial Performance;

Particulars	2024-2025	2023 2024
	(Rs. In Lakhs)	(Rs. In Lakhs)
Total Income	4,463.34	5,316.99
Total Expenses	3,931,45	4,663.71
Profit before tax	531419	653.2S
Tax Expenses	163,97	146.62
Profit After Tax	36 2 92	506.66

The Company reported a decline in revenue to Rs. 4,453.34 iakhs in FY 2024 -25, down 16D5W- from Rs.5,315 39 lakhs in the previous year, reflecting reduced business activity. Consequently, PtiFfUT dropped to Rs. 5 95.05 lakhs from Rs.719.11 lakhs, and Profit 5efo re Tax (PBT) fe II to Rs. 531.39 lak h,s fno m Rs.6 5 3.2 3 lafc hs.

Tax expenses nose to Rs.16fl,9V lakhs from Rs.146,62 lakhs, leading to a Profit After Tax (PAT) of J 3(52,92 lakhs, down 28-36% year-on-year. The decline in profitability is primarily attributed to reduced revenue and increased tax outgo, despite stable finance costs and marginal savings in depreciation

As we progress, our company remains dedicated to continuous improvement in performance and the implementation of effective and efficient management strategies to propel us toward our financial objectives.

Your Company has prepared its financial statements in accordance with Indian Accounting Standards rind AS") as per the Companies (Indian Accounting Standard} Rules, 2015 as amended and notified under section 133 of the companies act 2013 (the "Act") and other relevant provisions of the Act. These financial statements have been prepared and presented on the accrual basis of accounting under historical cost convention or fair value: a; per the requirement of Ind AS prescribed under

section 133 of the- Act. The- financial statements prepared as per the applicable Accounting Standards and there fe-.no material departure or deviation in giving treatment to anv transactions hence no further management discussion is required thereon.

IV. History:

The company was incorporated as "Creative Castings Private limited" on November 22, 19135. After Incorporation, the said company took over the running business of the erstwhile Partnership firm, M/s. Creative Castings with effect from March 21,

1986 on dissolution of the Partnership firm. All the assets and liabilities were transferred to Creative Castings Private Limited.

The busi ness set up by the fi rm In 1980 was ce rri ed by the company a n d a II the erstwh il e pa rtners of t h e fi rm were a ppo inted ? s the d irecto rs on t h e board of the company. Th e Com pa ny betam e a Pu bl it Lim ited Com pa ny o n October 06,1994.

V. Product Line:

Creative Castings Ltd. is a manufacturer & exporter of machined as well as unmachined investment castings to all key user industries like Pumps $ Valve industries. Oil $ Refineries, General Engineering, ElectrieaS engineering. Fire control equipments. Medical implants, Agricultural Machineries, Defense industries etc.

The company has two furnaces with capacities of 300 kg each per heat. The companys product has wide range of application in different industries vi!. Industrial Pumps, Electrical Engineering, Valve Industries, Fire Safety Equipment, Defense Industries, instrumentations. Medical Implants, General Engineering, Oil and Gas Industries, Power Industries etc. The Company has developed over 5,6B5 various types of castings titl date.

Moreover, the castings produced by the company find applications in automobiles, chemical processing, food processing, pharmaceutical, fertilizer industry and engineering products,

The Company manufactures hoth ferrous and non-ferrous castings. Ferrous castings comprise of Stainless Steel castings of various grades and Carbon steel, which accounts for around 60% and 30% respectiydy of the production, jim-ferrous castings consist of Cobalt base alloy and Nickei base alloy castings, which accounts for around 10% of the production.

VI, Segment-wise or product-wise performance:

Segment-wise detailed performance is provided in the Note no. 27 and 44 to the financial statement.

VII. Global and Indian Economy: An Overview and Outlook Global Economy:

According to the International Monetary Fund (IMF), global-GDP growth stabilized at 3 3% in 2024, maintaining the same pace as in 2023. However, in its April 2025 reference Forecast, the IMF projected global growth to slow to 2-8% in 2025 and recover modestly to 3.0% in 2026, citing rising trade tensions and elevated policy uncertainty. The 2025 projection was 0.3 percentage points tower than earlier estimates, highlighting increased risks to the globe! economic outlook.

In its July 2023 update, the IMF revised these projections upward, forecasting global growth at 3.0% in 2025 and 3.1% in 2026, reflecting stronger-than-e*petted resilience in key economies and easing Financial conditions.

Despite the revision, these growth eslimetes remain well below the historical average of 37% recorded between 2000 and 2019, indicating a continued period of below-trend global expansion.

The global economy faces uncertainties, with growth expected to moderate due to persistent geopolitical risks and financial market volatility, inflation may remain a concern in some regions, though centra! banks efforts coutd keep it in check.

Indian Economy:

Indias economy remained resilient amid global headwinds. As per provisional estimates from the National Statistical Office (NSO), GDP grew by 6.5% in FY 2024-25, compared to 9.2% in the previous year. While growth moderated, India retained its position as the fastest-growing major economy in the worid.

The growth figure was marginally below the Reserve Bank of Indias (RBI) revised forecast of 6.6%. Gross Value Added [GVA) increased by 6,4%, down from &,&% m FY 2023-24,

Among the major sectors, agriculture rebounded sharply, with the primary sector growing by 4.4% compared to 2.7% a year earlier aided by an above normal southwest monsoon. The secondary sectors growth moderated to 6.1%, down from 11 4%, while the tertiary sector slowed to 7.2% from 9.0%.

India is expected to sustain its growth trajectory, driven by ongoing infrastructure development and the continued strength of A

the services sector. Nevertheless, evolving global conditions and domestic inflationary trends will need to be closely

monitored.

VII kin dustrys structu re and o u t!o ok:

Global Scenario:

Based on various independent industry analyses, the global mistsil casting market was valued in the range of USD d&S-241 billion in 2024 and is anticipated to witness steady growth in the medium to longterm. Projections vary across -sources, with estimated compound annual growth rates ranging between 4.8% and 6.95%, potentially reaching USD 233-326 biton by 2033-2034.

Demand continues to be supported by automotive, aerospace, infrastructure, and industrial equipment sectors, with advancements in casting technologies, adoption of 3D printing and CAD/CAM, and increased use of recycled metals contributing to expansion. Asia-Pacific remains the largest regional market, led by China and India, while Europe and ivorth America focus on high-precision, value-added applications.

The industry is also undergoing gradual transformation through automation, digital integration, and the use of lightweight non-ferrous alloys, enhancing efficiency, quality, and compliance with environmental norms, However, challenges such as volatile raw material prices, high energy costs, supply chain constraints, a-ntf tightening environ mental regulations remain.

Going forward, market prospects are expected to be shaped by sustainable manufacturing practices, technological adaption, end evolving customer requirements, particularly in green mobility and renewable energy applications. Companies with operationaI agenity and innovation capabilities are likely to be be tte t pos itro n e d to cap ital ise on em e rgmg opportunities.

Domestic Scenario:

Based on various industry sources, India retained its position as the worlds second-largest producer of castings in FY 2Q2A-25, with an estimated annual output of around 12 million metric tonnes and a market turnover of approximately USD 19.8-21 billion Demand was driven pnmanly by automotive, industrial machinery, railways, and infrastructure sectors, which together accounted for a major share of consumption. Export revenues remained strong at about USD 4.CM.1 billion.

The domestic market is projected to expand steadily, supported by infrastructure development, growth ir. renewable energy components, and the increasing adoption of advanced manufacturing technologies. Industry estimates suggest the market could grow to USD 25-6 billion by 202&, with a healthy tAGR of around 11%, Initiatives suen as Make in India and the Production Linked incentive) PLI) scheme, coupled with rising ?V demand, are expected to create significant opportunities, particularly in high-value and lightweight castings.

The sector is undergoing technological transformation, with greater use of automation, CAD/CAM, and industry 4.0 practices, heading to improved quality, efficiency, and environmental compliance At the same time, the industry faces challenges including volatile raw material prices, rising energy costs, and skilled laoour shortages, prompting investments in sustainable snd clean manufacturing solutions.

Overall, the Indian metal casting industry is positioned for sustained growth, leveraging strong domestic demand, a competitive export base, and supportive policy measures, whrle navigating evolving technological, environmental, and market dynamics.

IX. Opportunities & Threats:

Opportunities:

* Global Supply Chain Diversification (China Plus One Strategy):

Global OEMs are actively diversifying their supplier networks to mitigate geopolitical risks. India, with its manufacturing capabilities and competitive cost structure, is emerging as a preferred sourcing destination, offering strong export growth opportunities.

• Adoption of Advanced Manufacturing Technologies:

Integration of automat Ion, simulation software, 3D printing for prototyping, and Industry 4.0 practices is enabling higher quality, reduced cycle times, and cost efficiencies in casting operations. Companies that embrace this shift wiil be better positioned for long-term competitiveness,

• Expansion in flenfivotlc Energy and Medical Devices:

Emerging sectors such as wind energy j turbine components) and medical rm pi ants {ortho pa edre and dental applications) are creating new demand for precision castings due to their high reliability and complex geometry requirements. ^*

* Rising focus on SuJtoHnabfe Manufacturing:

As global customers prioritize E$G compliance in their supply chains, Indian casting manufacturers with investments in energy efficiency, recycling, and pollution control will have a competitive edge and access to sustainability conscious clients.

• Expanding Demand from High-Growth Sectors:

Industries such as aerospace, defence, energy, medical devices, and electric vehicles are increasingly relying on complex and precision-engineered components, which aligns well with the capabilities of the lost wax casting process.

Th reals:

* Row Material Prite Volatility

Prices of key inputs like stainless steel, nickel alloys, and wan are subject to global fluctuations, impacting cost structures and eroding margins, especially under fixed price export contracts.

* Environmental and Regulatory Pressures

Stricter global norms on emissions, waste disposal, and workplace safety are increasing compliance costs and requiring capital investments in cleaner technologies.

* Skilled Labor Shortage

A global shortfall of trained workers in precision casting, combined with rising labor costs in traditional manufacturing hubs, is affecting productivity and quality assurance.

• Supply Chain Disruptions

Geopolitical tensions, port delays, and dependency cm imported raw materials or equipment expose manufacturers to delays and uncertainty in delivery schedules.

• Intensifying Global Competition

Growing competition from low-cost producers, especially in China and Eastern Europe, is creating pricing pressure and necessitating continuous innovation to retain market share in summary, while the casting and foundry industry is poised for growth due to demand from key sectors and technological advancements, it faces substantial risks from economic uncertainties, regulatory pressures, and the need for continuous technological adaptation.

X. Risks and areas of concern:

Every business operates in an environment of uncertainties, where risks are an integral part of pursuing returns, The investment casting industry, partcularly in the context of global operations and export markets, is exposed to a range of strategic, operational, and external risks, While the Company remains committed to sustainable growth and operational excellence, it recognres that proactive identification arid mitigation of key risks is essential to maintain resilience, competitiveness, and long-term value for stakeholders,

The responsibility for risk oversight rests with the Board and senior management, whd regularly evaluate the internal and external factors that could affect the Companys operations, performance, or long-term strategy. In addition to the risks disclosed in the financial statements, the following section outlines key operational and strategic risks that may influence the Companys business, along with their potential impact and corresponding mitigation measures.

Key Risk	Impact on the Company	Mitigation
Raw Material Cost Volatility	Increased production costs leading to reduced profit margins.	Secure long-term contracts with suppliers to lock in prices; divers if y sou rcing to avoid d a pa n ttency on a ny si n gle sup plier,
Environmental Regulations and Compliance	Potential fines, increased operational costs for compliance, or forced shutdowns fF non-rompfiance is found.	Invest in cleaner technologies and regular audits; stay updated with regulatory changes to ensure proactive compliance.
Skilled Labor Shortage	Reduced productivity and potential decline in product quality, impacting delivery timelines and customer satisfaction.	Implement training urograms to upskili existing workers; offer competitive wages and benefits to attract and retain skilled labor.
Technological Obsolescence	Decreased competitiveness due to the inability to meet customer demands for high-precision, low-defect products.	invest in tire latest casting technologies and automation; engage in continuous R&D to stay ahead of technological trends.
Supply Chain Disruptions	Delays in production due to unavailability of essential raw materials, leading to potential order cancellations or penalties.	Develop a diversified supply chain; maintain buffer stocks of critical materials; establish strong relationships with multiple suppliers.
Economic Uncertainty	Reduced demand for castings, especially in key sectors like automotive, leaping to lower revenues.	Diversify customer base across different sectors and geographies; focus on cost optimization and lean manufacturing.
Export Market fluctuations	Fluctuating export revenues due to trade barriers Dr changes in international trade policies.	Explore new markets to reduce dependency on any single market; Engage in lobbying through industry associations for favorable trade policies.
Customer Concentration Risk	Overdependence on a limited number of customers can iead to significant revenue Idss if major clients shift suppliers or reduce orders.	Expand customer portfolio across industries and geographies; prioritize business development in emerging markets and with small to mid-sized OEMs.
Energy Cast Fluctuations	Investment casting is energy-intensive; rising energy prices com significantly increase production costs and reduce margins.	Invest in energy-efficient machinery and alternative energy sources (e.g., solar, waste heat recovery:; conduct energy audits to optimize consumption.
Reputational Risk from ESG Non-Aligmment	Growing global focus on Environmental, Social, and Governance (ESQ) standards can affect reputation, investor confidence, and customer trust.	Develop and disclose a dear ESG policy; implement sustainability initiatives; regularly report ESG metrics in compliance with international standards.

Quality Control:

The Company underscores its accomplishments In upholding rigorous quality benchmarks. This accomplishment has been realised through our endeavors to harmonize resources and technology; resulting in the creation of products that mirror global excellence standards. Our commitment to quality commences from the inception of the production process, guaranteeing the delivery of products of exceptional caliber.

XI. Human resourses/Industrial relations front:

Human resource is considered as key to the future growth strategy of the Company and looks upon to focus its efforts to further align human resource policies, processes and initiatives to meet its business needs. In order to focus on keeping employees abreast of technological anti technical developments, the Company provides opportunity for training and learning. Industrial relations remained harmonious, with no instances of disputes or work stoppages during the year.

The Company is working on enhancing its competencies to take care of current and future business, its employee strength as on March 31. 2025 was 105 (P.V it was 125). Human Resource and Industrial Relations departments have developed systems and policies on recruitment, performance management, learning end development, and employee engagement.

The high level of motivation of the employees and their identification with the company is the basis for the creation of a strong teem who continuously advance the innovative brands and superior technologies with their inventive talent and pioneering spirit. Tire training courses are evolved to internalize the principles of sustainable development and to uphold the Companys corporate culture based on fairness and team spirit,

Internal control systems and adequacy;

Internal controls are desgned to provide reasonable assurance regarding the reliability of flnancal reporting and the Preparation of financial statements in accordance with Ind AS. Absolute assurance cannot be provided that all misstatements have been detected because of inherent limitations in ail control systems.

The Companys internal control policies are in line with its size and nature of operations and they provide assurance that all assets are safeguarded, transactions are authorised, recorded and reported properly following all applicable statutes, Generally Accepted Accounting Printipies, companys Code of Conduct and corporate policies. The Company has an Audit Committee, which conducts audit in various functional areas as per audit plan approved by the Audit Committee. The audit committee has a good understanding of the organizations framework and related components of internal control. The Company has appointed an internal Auditor who, from time to time, draw attention of chairman of Audit Committee of the Company about the gray area needs improvements. Audit planning and executions are oriented towards assessing the state of Internal controls, making them stronger and addressing the risks in the functional areas of the Company and suggests improvements for strengthening them. Similarly, the Internal Auditors are also responsible for monitoring the Internal Control Systems,

XII. Key Financial Ratios:

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 20IS, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key-specific financial ratios.

Your Company has identified the following ratios as key financial ratios:

Particulars	2025	2024	Change	Explanation for change in ratio by more than 25% as compared to previous year
Debtors Turnover	1.91	3.73	5.36%
inventory Turnover	A.01	6.14	-34.69%	During Financial Year 2024-25; Turnover Si inventory both decreased thereto re Ratio has been decreased
Interest Coverage Ratio	N.A.	N.A,	N.A.
Current Ratio	7,91	6.15	2B.62%	Betterment in Current Ratio signifies an i m provem ent i n Com pa nys abrl ity to meet its short-term obligations.
Debt Equity Ratio	N.A.	N.A.	N..A.
Operating Profit Margin (%)	14.89	14.53	2.4 2%
Net Profit Margin (%)	8.34	9-69	13-93%
Return on Net Worth (%)	8.65	13.00	-33.46%	During the financial year 2024-25, Net profit decreased despite relatively stable equity base.

For and on behalf of Board

Sd/-

? hirnbhai H. Dand

Chairman DIN:002B4065

Dolatpara, July 26, 2025.