Cryogenic OGS Ltd Management Discussions

This section shall include discussion on the following matters within the limits set by the listed entitys competitive position:

(a.) Industry Structure and Developments:

Cryogenic OGS Limited provide high-quality measurement and filtration equipment and systems by fabrication and assembling for various sectors like oil, gas, chemicals and allied fluid industry.. The Company provides customized solutions to the customers by focusing on innovative and tailored services, for oil, gas, chemicals and allied fluid industry. The team of experts works closely with clients to understand their unique requirements, developing tailored strategies that maximize efficiency and minimize costs.

Companies in-house engineering and design capabilities helps to offer diversified products and solutions to the customers in each of the segments in which they operate. Comprehensive solutions include design, process engineering and manufacturing including fabrication, assembly and testing facilities. The Company use Auto-CAD ELD software along with other pairing software for preparing designs of our products.

GOVERNMENT INITIATIVES FOR THE ENGINEERING SECTOR

The oil and gas sector in India hold a pivotal position as one of the eight core industries, exerting a significant influence on the countrys economic landscape. With Indias economic growth intricately tied to its energy demand, the sectors importance is set to surge, fostering a conducive environment for investment. The government of India has implemented various export promotion schemes, such as the Zero Duty Export Promotion Capital Goods (EPCG) scheme, Towns of Export Excellence (TEE), Market Access Initiative (MAI), etc. These schemes are aimed at encouraging the exporter and to help increase the revenue from international markets.

Developments:

• Create new markets quickly through products based on technology

• Enhance growth by reaching new customers, deepening the customer experience and allowing them to dynamically mange pricing

• Increase profitability by altering operating cost structures through greater process automation

• Adopt business models that increase asset efficiency and long-term competitiveness

(b.) Opportunities and Threats:

Opportunities:

• Expansion into emerging markets with increasing demand for electronics.

• Bigger horizon for innovation and developing new products.

• Government incentives for electronics manufacturing.

• Threats:

• Intense competition from global and local electronics manufacturers.

• Environmental impacts associated with oil and gas operations.

• Global Pandemics and Health Crisis

• Compliance with evolving regulatory standards.

(c.) Segment-wise or product-wise performance:

The company is having only one Geographical and one business Segment and therefore disclosure regarding segment information is not applicable to the company.

(d.) Outlook:

• The outlook for business is positive as the company continue to remain focused on risk management and mitigation.

• Total turnover during the year 2024-25 was Rs. 3,290.46 lacs compared to 2,426.32 lacs of previous year 2023-24 which shows increase of Rs. 864.14 lacs (35.62%). There is profit of Rs. 608.98 lacs (after tax) during the year 2024-25 compared to profit of Rs. 512.45 lacs (after tax) during the year 2023-24.

(e.) Risks and concerns:

• Commodity Price Risk: Risk of price fluctuation on basic raw materials like steel, components, power as well as finished goods used in the process of manufacturing.

• Uncertain global economic environment - slow growth in global economy: Impact on demand and realization of exports of food processing plant and machinery.

• Interest Rate Risk: Any increase in interest rate can affect the finance cost

• Foreign Exchange Risk: Any volatility in the currency market can impact the overall profitability

• Human Resources Risk: Your Companys ability to deliver value is dependent on its ability to attract, retain and nurture talent. Attrition and non-availability of the required talent resource can affect the overall performance of the Company

• Competition Risk: Every company is always exposed to competition risk from European Countries. The increase in competition can create pressure on margins, market share etc

• Compliance Risk: Increasing regulatory Requirements: Any default can attract penal provisions

• Industrial Safety, Employee Health and Safety Risk: The engineering industry is exposed to accidents and injury risk due to human negligence.

(f.) Internal Control Systems and their adequacy:

The Company has strengthened its internal control and audit aspects by appointing outside agency for internal audit of certain important aspects of operations, apart from usual transactional verifications. There are adequate checks and controls to ensure compliance of various statutes.

(g.) Discussion on Financial performance with respect to operational performance:

Total turnover during the year 2024-25 was Rs. 3,290.46 lacs compared to 2,426.32 lacs of previous year 2023-24 which shows increase of Rs. 864.14 lacs (35.62%). There is profit of Rs. 608.98 lacs (after tax) during the year 2024-25 compared to profit of Rs. 512.45 lacs (after tax) during the year 2023-24.

(h.) Material developments in Human Resources / Industrial Relations front, including number of people employed:

The Company believes that a motivated and empowered employee base is the key to our operations and business strategy. The Company focuses on building an organization through induction and development of talent to meet current and future needs. Various HR initiatives have been taken to align HR policies of the Company with the growth projections of the company.

The Company has in its team, experienced and young people which gives dual advantage of stability and growth, consequently execution of services within time and quality. They are committed & dedicated to maintain the specified standard, quality & safety of the products and services.

The permanent employees include personnel in manufacturing activities such as machine operations, assembling and testing of products, quality assurance, and receipt and dispatch of materials. As on 31st March, 2025, the Company has employed approximately 30 employees at various levels of the Organization.

(i.) Details of significant changes in financial ratio:

Details of significant changes as compared to the immediately previous financial year in key financial ratios, along with detailed explanations therefor, including:

Particulars	F.Y. 2024-25	F.Y. 2023-24
(i) Debtors Turnover	5.50	4.63
(ii) Inventory Turnover	0.97	1.16
(iii) Interest Coverage Ratio	NA	NA
(iv) Current Ratio	5.26	3.64
(v) Debt Equity Ratio	NA	NA
(vi) Operating Profit Margin (%)	25.13	28.39
(vii) Net Profit Margin (%)	18.02	19.95

(j.) Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof:

Particulars	F.Y. 2024-25	F.Y. 2023-24
Return on Net Worth	21.01%	22.38%

Disclosure of Accounting Treatment:

The financial statements for the year ended 31st March, 2025 have been prepared as prescribed in accounting standards and there is no change in treatment of the said accounting standards. Therefore, no explanation by the management is required for the same.

		On behalf of Board
Date: 04-08-2025	Sd/-	Sd/-
Place: Por	DHAIRYA PATEL	NILESH NATVARLAL PATEL
	Whole Time Director	Managing Director
	DIN: 09145811	DIN: 01368574