Crown Lifters Ltd Management Discussions

A. INDUSTRY STRUCTURES. DEVELOPMENT. OPPURTUNITIES & OUTLOOK:

• GLOBAL ECONOMY OVERVIEW:

The global economy has demonstrated notable resilience in the face of multiple shocks over the past year, supported by strong macroeconomic fundamentals in several developed and emerging economies, alongside robust public and private spending. The United States successfully navigated recessionary pressures, while Europe displayed stronger-than-expected resilience. China, however, continues to grapple with structural challenges in regaining economic momentum.

Inflation, though still above target in many countries, has been on a declining trajectory across all major economies. In Asia, inflationary pressures were comparatively lower than in the West and have moderated more rapidly, which allowed interest rates to remain relatively stable. Globally, inflation is expected to ease faster than earlier anticipated, projected to decline to 4.2% in 2025 and 3.6% in 2026 , aided by easing supply-side constraints and the continuation of tight monetary policies.

Nevertheless, the recovery in global growth remains fragile, weighed down by high debt levels, the energy crisis, and persistent geopolitical tensions. The Red Sea crisis has further disrupted global trade routes, resulting in longer transit times, higher shipping costs, and rising insurance premiums, thereby adding stress to global supply chains.

According to the International Monetary Fund (IMF) , the global economy is projected to expand at 3.0% in 2025 and 3.1% in 2026 . This moderate uptick is underpinned by the sustained resilience of the United States, selective strength in emerging markets, and anticipated fiscal support measures in China. However, growth continues to trail the long-term historical average, constrained by elevated central bank policy rates, reduced fiscal stimulus, and subdued productivity improvements.

• INDIAN ECONOMY OVERVIEW:

The Indian economy has demonstrated strong resilience amid global geopolitical tensions and uncertain external conditions. Buoyed by robust private consumption and elevated public investment—particularly in infrastructure—the country maintained high growth levels in FY 2024. India remains the fastest-growing major economy globally, and it is projected to become the third- largest economy by 2027-2028 in USD terms. Estimates further suggest that Indias contribution to global growth will rise by nearly 200 basis points over the next five years.

According to the International Monetary Fund (IMF)s July 2025 World Economic Outlook Update, Indias GDP growth is forecast at 6.4% for both 2025 and 2026, revised upward from earlier estimates due to a more favorable external environment. On a fiscal-year basis, growth is estimated at 6.7% in FY 2025 and 6.4% in FY 2026, reaffirming Indias status as the worlds fastest-growing major economy.

Economic fundamentals continue to strengthen—with moderating inflation, expanding financial markets, prudent fiscal management, and rising foreign exchange reserves. Capital expenditure has nearly tripled over the past four years, generating a significant multiplier effect on growth and employment. The Make in India initiative, supported by enabling policies and incentives, has accelerated growth in the manufacturing sector, while the services sector is rapidly scaling up with digital transformation and technology adoption, enhancing Indias global competitiveness.

• INDIAN CRANE MARKET

In 2025, the Indian crane market is estimated at USD 1.48 billion and is projected to reach around USD 2.06 billion by 2030, registering a strong CAGR of 6.8% during 2025-2030. The sectors growth is being propelled by rapid urbanization, large-scale infrastructure investments, and the Governments sustained push through initiatives such as Smart Cities Mission, metro rail expansion, highway and port development projects, and industrial corridors. Additionally, the residential and commercial real estate boom continues to fuel crane demand across high- rise construction and complex project sites.

The industry is evolving rapidly with increasing adoption of advanced technologies such as IoT- enabled telematics, automation, predictive maintenance, and eco-friendly hybrid systems. These innovations enhance efficiency, safety, and compliance with sustainability norms. Furthermore, the crane rental market, which already accounts for a significant share of industry usage, is expanding steadily—driven by cost efficiency and flexibility for project-based requirements. With these factors in play, the Indian crane industry is well-positioned to maintain a positive growth trajectory, adapting swiftly to technological innovations, sustainability imperatives, and changing market dynamics.

B. OPPORTUNIES & THREATS:

OPPORTUNITIES:

The Union Interim Budget 2025 has created a strong platform for growth in the infrastructure and construction equipment industry. With a record capital expenditure outlay of ^11.11 lakh crore, significant allocations to roads (^2.72 lakh crore) and railways (^2.52 lakh crore) are expected to drive sustained demand for construction equipment such as earthmoving machinery, cranes, and pavers. Further, the launch of the Urban Infrastructure Development Fund (UIDF) to strengthen Tier-2 and Tier-3 cities, along with the continued expansion of metro rail networks under NAMO Bharat, opens opportunities for specialized urban construction and material-handling equipment.

In parallel, Indias manufacturing sector is on a fast-track growth path, supported by the Production Linked Incentive (PLI) schemes, the revival of the industrial capex cycle, and the governments ambition to scale the sector towards US$1 trillion in the coming years. These policy initiatives are translating into greater investment in industrial construction, driving demand for industrial cranes, heavy lifting equipment, and modern material-handling systems. With strong policy backing, infrastructure expansion, and industrial growth momentum, the Company is strategically positioned to capture opportunities from Indias evolving growth story.

THREATS:

• The Indian economys growth could be badly impacted by a slowdown brought on by unfavorable macroeconomic and international trends. The slowdown in the economy may hurt the infrastructure and manufacturing sectors which in turn can cause a slowdown in the Companys growth;

• Inadequate construction project management, project risks might result in financial and legal difficulties, as well as disproportionate availability of workforce. Poor scheduling, planning, or inefficient resource allocation are just a few examples of how uneven project management can lead to risks that increase delays and increase costs for businesses;

• Banks play the most vital role in financing the projects, however, due to reasons like restricted balance sheet, absence of willingness to lend to infrastructure sectors and drastically increasing nonperforming assets may lead to decrease in funding projects;

• The risk of raw material price volatility translating into margin pressure due to a sharp rise in raw material prices, increase the cost of goods sold and affect the profitability of the industry;

• Environmental issues and strict laws may hinder the strong growth of the Company;

• Fluctuations in the demand of construction equipments can affect the Companys operations;

• Emergence of new foreign and domestic companies can cause the Company to face stiff competition;

• Current war situation around the world may drastically affect the business of the company.

C. SEGMENT:

The company is operating as one of the largest and most preferred supplier of construction equipments servicing all industrial sectors by offering competitive technological edge. Your company has adopted various marketing strategies for sustained growth including increase in number of clients / customers to reduce the dependency on any single client / customer.

D. BUSINESS HIGHLIGHTS:

Turnover:

Crown Lifters Limited has turnover of Rs. 3503.45 lakhs in 2024-25 as against Rs. 2810.07 lakhs of the previous year.

Employee Benefit Expenses:

Employees emolument (other than managerial remuneration) is Rs. 286.51 lakhs during the F.Y 202425 as against Rs. 163.87 lakhs during the previous year.

Managerial Remuneration:

The Managerial Remuneration for the F.Y. 2024-25 is Rs. 90,00,000

Administrative, Selling and Other Expenses:

Major components of administrative and other expenses includes Bank Charges & Commission, Sales Promotion & Presentation, Brokerage & Commission, Site Exp., Legal and Professional Tax, Rent, listing fees, insurance premium, Sundry Exp., Bad Debts written off, etc. Administrative and Selling expenses for the year amounted to Rs. 134.55 lakhs during the F.Y 2024-25 as against Rs. 95.70 lakhs during the previous year.

Finance Costs:

Finance Costs/bank charges during the year come to Rs. 333.41 lakhs during the F.Y 2024-25 as against Rs. 162.92 lakhs during the previous year.

Depreciation:

Depreciation charge for the current year came to Rs. 598.83 lakhs during the F.Y 2024-25 as against Rs. 688.64 lakhs of the previous year.

Provision for Tax:

The Company has made provision towards current tax for the financial year 2024-25 amounting to 127 lakhs as against Rs. 160 lakhs of the previous year. There are no prior period tax adjustments.

Profit/Loss after Tax:

The company has made profit after tax of Rs. 1898.01 lakhs as against the profit after tax during previous year of Rs. 550.83 lakhs. The Directors are hopeful for the better performance in the future.

Earnings per Share: CROWN LIFTERS LIMITED 23 rd ANNUAL REPORT

Basic and diluted earnings per share for the current year worked out to Rs. 16.91* as against Rs. 5.28 during the previous year (Depreciation policy changed from WDV to SLM method).

FINANCIAL CONDITION:

Non Current Liabilities:

The Companys Non Current Liabilities aggregating to Rs. 7216.16 lakhs which includes Trade Payables of Rs. 3359.25 lakhs and deferred tax liabilities of Rs. 786.20 lakhs as at 31 st March 2025 as against Non Current Liabilities of previous year of Rs. 6277.82 lakhs which includes Trade Payables of Rs. 3920.98 lakhs and deferred tax liabilities 263.67 lakhs as at 31 st March 2024.

Current Liabilities:

Companys Current Liabilities includes borrowings, Trade payables, Other Current Liabilities, provisions and current tax liabilities aggregating to Rs. 4523.08 as at 31 st March 2025 as against Rs. 984.81 of the previous year.

Fixed Assets:

Net block of the fixed assets at the end of the year is Rs. 12405 lakhs as against Rs. 7286.93 lakhs in the previous year.

Current Assets:

During the year, the company has current assets of Rs. 5501.64 lakhs as against Rs. 3573.85 lakhs of the previous year.

E. RISKS AND CONCERN:

The company operates in an environment which is affected by various risks, some of which are identifiable and controllable. Some others are unexpected and cannot be controlled. Under these conditions, proper identification and management of risks is very important in determining the ability of the organization to sustain value creation for its stakeholders. The impact of the key risks, which are potentially significant are listed below has been identified through a formal process by the management. Your company recognizes that every business has its inherent risks and the company has been taking proactive approach to identify and mitigate them on a continuous basis. Your company is mainly focusing on manpower and the intelligence. Apart from the risk on account of governmental policies and regulatory changes, business of the company are exposed to certain operating business risks, which is mitigated by regular monitoring and corrective actions. The company has taken necessary measures to safe guard its assets and interest etc.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company has in place adequate internal control system and procedures commensurate with its size and nature of operations. Internal control systems comprising of policies and procedures are designed to ensure sound management of your Companys operations, provide a reasonable assurance over reliability in financial reporting, ensure appropriate authorization of transactions, safeguarding the assets of the Company and prevent misuse/ losses and legal compliances.

The internal control system includes a well-defined delegation of authority and a comprehensive Management Information System coupled with quarterly reviews of operational and financial performance, a well-structured budgeting process with regular monitoring of expenses and Internal audit.

The Company has a proper and adequate system of internal controls, commensurate with its size and business operations to ensure the following:

• Timely and accurate financial reporting in accordance with applicable accounting standards;

• Optimum utilization and safety of assets;

Compliance with applicable laws, regulations, listing applications and management policies; and CROWN LIFTERS LIMITED 23 rd ANNUAL REPORT

• An effective management information system and reviews of other systems. Systems and procedures are periodically reviewed to keep pace with the growing size and complexity of your Companys operations.

G. AN INDUSTRY OVERVIEW :

The management is confident of improvement in the companys working in the near future with fast growth.

The scenario of the infrastructure industry and economy in general is buoyant even after the industry is exposed to competition with policy of the government. The process of development, increasing thrust of the government on the infrastructure industry, the future of the industry in which our company is working i.e. renting of cranes appears quite bright.

H. SWOT ANALYSIS OF THE COMPANY :

Strength:

a. Management depth and ability to manage client/customer relationships.

b. Enhanced presence in the market through clientele basis.

Opportunities and Threats:

The renting of Construction Equipments industry is subject to tough competition amongst various segments within and outside the country. The threat of competition is relatively less in the area in which your company is operating. The increase in demand from business sector will provide opportunity to your company to increase more market share. Moreover, suppliers of construction Equipments industry witnessing changes in business dynamics.

I. HUMAN RESOURCE MANAGEMENT :

The Company believes that human resource is the most important assets of the organization. It is not shown in the corporate balance sheet, but influences appreciably the growth, progress, profits and the shareholders values. During the year your company continued its efforts aimed at improving the HR policies and processes to enhance its performance. The vision and mission of the company is to create culture and value system and behavioral skills to insure achievement of its short and long term objectives.

J. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THERE FOR, INCLUDING:

Particulars	Ratio		Definition	Explanation
	2025	2024
1. Trade Receivables Turnover	3.73%	3.98 %	Trade Receivables turnover ratio (times) = Net Credit Sales / Avg. Accounts Receivable	Slight decrease in Trade Receivable Turnover Ratio indicates a marginally slower collection cycle in FY 2025 compared to FY 2024.
2. Inventory Turnover	0.00	0.00	Inventory turnover ratio (times) = (Cost of goods sold or	As there is no inventory at the end of year, this ratio is not applicable.

CAUTIONARY STATEMENT:

Statement made in the Management Discussion and Analysis Report describing the companys objectives, projections, estimates, expectations may be Forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand supply and price conditions in the markets in which the company operates changes in the government regulations, tax laws & other statutes and other incidental factors.

By Order of the Board For, Crown Lifters Limited

Sd/-

KARIM K. JARIA

Chairman and Managing Director DIN:00200320

Date: 11/08/2025 Place: Mumbai