Crimson Metal Engineering Company Ltd Management Discussions

This operating and financial review is intended to convey the Managements perspective on the financial and operating performance of the Company as on the close of the Financial Year 2024-25. This Report is to be read in conjunction with the Companys financial statements, the schedules and notes thereto and the other information included elsewhere in the Integrated Report. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) complying with the requirements of the Companies Act, 2013 (Act), as amended and Regulations issued by the Securities and Exchange Board of India (SEBI) from time to time.

Crimson Metal Engineering Company Ltd is in to steel industry. Temporarily, we are not in our main line of business, albeit at low level, due to tough economic environment and will try to resume as situation warrants so.

The Company is exploring the revival of the production and marketing of the Companys product and given the competitive nature of the product the final decision for revival may take longer than expected. Currently the time frame estimated is upwards of 24 months.

The company have been operating in single segment and product viz., manufacture of pipes and recently leased its manufacturing activities for the time being

The Company believes that the overall economy is in the revival mode and due to the absence of the company in the segment they were operating they have to catch up a significant lost ground to achieve quick recovery.

The main risk to which the company is exposed to is the fluctuation in the Raw material prices and the competition from the various competitors. Companys Enterprise Risk Management (ERM) process has matured over the years and the ERM team is regularly working to make it more effective and robust to cover all areas of business.

The ERM process involves periodic identification of risks which is likely to affect the business adversely, rating the risks on their impact and likelihood, preparation of risk heat map, identification of early warning indicators, estimation of risk velocity, implementation of risk mitigation plans by the risk owners and continuous monitoring of the mitigation plans by the Risk Management Committee of the Board and the Management. Risks are being identified in the areas including sales, supply chain, finance, regulatory approvals, environment, operations, safety, projects, industrial relations, etc. Mitigation strategies and plans have been accordingly developed to manage and mitigate the likelihood and impact of such risks.

Adequate management control is in place to ensure quick action on early warnings and to proactively monitor and mitigate all potential risks. A comprehensive risk management strategy act as a framework for all de-risking and risk mitigation activities undertaken by your company with the fullest involvement of top management professionals.

The Company has adequate internal control systems to ensure operational efficiency, protection and conservation of resources, accuracy and promptness in financial reporting and compliance of laws and regulations. The Company regularly monitors that all regulatory guidelines are complied with at all levels.

The Audit Committee constituted by the Board reviews the adequacy of the internal control system.

The financial statements are prepared in compliance with the requirements of the Companies Act and the Indian Accounting Standards (Ind As) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). The financial statements of the Company for the financial year ended March 31, 2025, are prepared in accordance with the Ind As. Previous year figures have been regrouped/rearranged to make them comparable with figures of current year.

The details of the financial performance of the Company are reflected in the Balance Sheet, Statement of Profit & Loss and other Financial Statements, appearing separately. Highlights are provided below:

The financial performance of the Company has been further explained in the Directors Report of the Company for the Financial Year 2024-25 appearing separately.

Management is keen on following the best practices for attracting, retaining and enhancing human resources of the Company. Internal transfer, job rotation and training have been inculcated at different levels of the organization hierarchy to evolve team leaders and managers. The above- mentioned measures will ensure a motivated workforce, promote the ownership and sharing economic growth of the Company.

Competing on the strength of our people, all of us are bonded together by core values of Pride, Integrity, Discipline and Ambition. We thrive in this climate of Right People for Right Culture. Your Company has consciously built an entrepreneurial and empowering culture of Results, Not Reasons. Our culture emphasises on having a workforce that is diverse, agile, eager to learn and driven to succeed.

The Managing Director, after obtaining confirmation from all the departments of the Company, makes a periodic declaration regarding the compliance with the provisions of various statutes, applicable to the Company. An enterprise-wide digital compliance management tool has been implemented to help monitor compliance real-time across the organization. Due systems and processes are in place to ensure effectiveness of this tool. The Company Secretary, being the Compliance Officer, ensures compliance with the relevant provisions of the Companies Act, 2013 and SEBI Listing Regulations.

The Company has made forward-looking statements in this document that are subject to risks and uncertainties. Forward-looking statements may be identified by their use of words like experts, believes, estimates or similar expressions. All statements that address expectations or projections about the future, including, but not limited to, statements about Companys strategy for growth, product development, market position, market expenditures, and financial results are forwardlooking statements.