Electro Force (India) Ltd Management Discussions

1. INTRODUCTION:

Electro Force (India) Limited ( the Company ) was originally incorporated as the Company on June 14, 2010, under the provisions of the Companies Act, 1956, bearing Corporate Identity Number U51909MH2010PTC204214, issued by the Assistant Registrar of Companies, Mumbai. Pursuant to a Special Resolution passed on April 15, 2023, the Company was converted into a public limited company. Consequently, the name was changed to Electro Force (India) Limited, and a fresh Certificate of Incorporation was issued on May 11, 2023, by the Registrar of Companies, Mumbai. The Company is now registered as a public limited entity under Corporate Identity Number U51909MH2010PLC204214.

The Company is an ISO 9001:2015 certified company engaged in the design and manufacture of electrical components, precision metal/plastic contact parts, and related assemblies. The Company operates primarily under a BusinesstoBusiness (B2B) model, catering to industry clients by supplying highgrade precisionengineered products. Since its inception in 2010, the Company has served as a trusted supplier of precision metal electrical contact parts, connectors, and subassemblies used in electronics, lighting, switchgear, and allied industries across India.

The Companys manufacturing facility is located in Vasai, Maharashtra, and is equipped to deliver endtoend product solutions, encompassing product design, precision manufacturing, quality testing, packaging, and logistics. Additionally, the Company also supplies products at intermediate manufacturing stages, depending on client requirements. Electro Force (India) Limited has consistently focused on providing integrated services, particularly to Indian manufacturers of electrical components.

Our core capabilities include precision metal stamping, assembly, and molding, executed with a strong emphasis on quality, accuracy, and responsiveness. The Companys management believes that its dedicated and qualified team of professionals is a key pillar of its success. What truly differentiates the Company from its competitors is not only its commitment to quality, but also its agility and customercentric approach, enabling it to swiftly respond to evolving client requirements.

Over the past 14 years, the Company has built significant expertise in helping customers develop innovative designs, adopt advanced technologies, and optimize the use of materials and production processes. Leveraging this experience, the Company continues to refine and expand its product offerings, with the goal of delivering greater value and performance to its customers.

2. INDUSTRY STRUCTURE:

The Indian Electronics System Design and Manufacturing (ESDM) sector continues to emerge as one of the most dynamic and rapidly expanding industries within the Indian economy. The sector has witnessed robust growth over the past few years and is gaining significant global traction due to its substantial domestic consumption base and competitive manufacturing landscape .

India is now widely recognized as a key global destination for electronics manufacturing, owing to a favorable policy environment, a large talent pool, and competitive cost structures. The shift in global electronics supply chains, coupled with increasing localization trends, has encouraged multinational corporations to establish and scale up their manufacturing capabilities in India. This growing interest is not only aimed at serving the domestic market but also at leveraging India as an export hub for global markets.

The ESDM sector encompasses a wide array of products and services, including electronic hardware components and systems used across IT, telecommunications, consumer electronics, aerospace, defence, renewable energy (solar photovoltaics), nanoelectronics, and medical electronics. The sector also includes designrelated services such as product design, chip design, Very LargeScale Integration (VLSI), PCB design, and embedded system development.

Indias position as the secondlargest mobile phone manufacturer globally, coupled with increasing internet penetration and smartphone adoption, has fueled the demand for electronic products across both urban and rural segments. The Government of India has also identified electronics manufacturing as a key sector under flagship initiatives like Make in India, Digital India, and Startup India. These programs aim to strengthen the domestic manufacturing ecosystem and reduce dependency on imports.

The governments ambitious target of achieving US$ 1 trillion in digital economy value by 2025 places the ESDM sector at the core of national economic planning. Policy support such as the Production Linked Incentive (PLI) schemes, investments in Electronics Manufacturing Clusters (EMC 2.0), and increased support for innovation and R&D have already begun to stimulate significant interest and investment in the sector.

In this evolving environment, characterized by technological advancements, global realignments, and heightened competition, companies operating in the ESDM space are focusing on scaling operations, improving asset efficiency, enhancing profitability, and accelerating innovation. The emphasis is increasingly on building resilient supply chains, delivering valueadded services, and integrating nextgeneration technologies to meet the dynamic needs of the market.

3. INVESTMENTS/ DEVELOPMENTS:

During the year under review, the Company continued to focus on broadening its industry footprint by expanding its client base across multiple sectors and verticals. This strategic approach is aimed at strengthening our market presence and enhancing longterm business sustainability.

The Company is actively investing in the development and diversification of its product portfolio, with an emphasis on catering to a wider range of industryspecific applications. Product development initiatives have been undertaken to deepen engagement with existing clients while also exploring new sectoral opportunities. These efforts are aligned with our vision to offer customized, highquality solutions that address evolving customer needs.

In line with our diversification strategy, we have also initiated focused efforts in the development of material handling instruments and accessories for luggage bags. This move is intended to create new revenue streams and expand into adjacent industry segments, enabling the Company to tap into highgrowth markets and reduce dependence on a limited set of product categories.

The Company believes that these investments in innovation, market expansion, and diversification will contribute meaningfully to future growth and value creation, while also reinforcing its position as a trusted and adaptable player in the electrical components and engineering solutions space.

4. OPPORTUNITIES AND THREATS:

The Company operates in a dynamic environment with several competitive strengths, while continuously exploring new avenues for growth and addressing potential risks. A structured framework is in place to identify, evaluate, and mitigate key business risks, ensuring sustainability and longterm value creation.

Strengths

Experienced and Competent Management Team with deep industry knowledge and strategic foresight.

Commitment to High Product Quality and Customer Service, resulting in strong customer loyalty and repeat business.

Inhouse R&D Capabilities, wellequipped tool room, and a robust culture of continuous product innovation and development.

Diverse Product Portfolio, enabling the Company to cater to the varied requirements of clients across sectors.

Opportunities

Presence in a vast and growing industrial ecosystem in India, offering significant potential for market expansion.

Access to costeffective and skilled human resources, enhancing operational efficiency.

Benefit from the Governments proactive reforms and initiatives promoting domestic manufacturing under schemes like Make in India.

Entry into the material handling instruments segment, which is expected to be a key growth driver and potential gamechanger in the coming years.

Threats

Market Volatility and Competitive Pressures, which may impact pricing and margins.

Customer Concentration Risk, where a significant portion of revenue may depend on a few key clients.

Supply Chain Disruptions, including dependency on timely availability of raw materials and logistics challenges.

Rapid Technological Changes, which require constant innovation and adaptation to stay competitive.

The Company has established welldefined risk management procedures, and regular updates on key risks and mitigation measures are presented to the Board of Directors. This framework ensures that potential risks are systematically assessed and addressed to safeguard the Companys assets, operations, and reputation.

5. SEGMENTWISE OR PRODUCTWISE PERFORMANCE.

The Companys manufacturing operations are carried out from its production unit located in Vasai, Maharashtra, strategically situated on National Highway 8, the key arterial route connecting Mumbai and Gujarat. This strategic location offers seamless logistical connectivity and easy accessibility to a wide range of transporters, enabling smooth and costeffective movement of goods.

The region is an established industrial hub with a concentration of manufacturing units across various sectors, ensuring the availability of skilled and unskilled labor throughout the year. The factory premises, spread over 10,000 square feet (on lease basis), is housed in a reinforced cement concrete (RCC) structure with a high ceiling height of over 14 feet, which is ideal for installing tall industrial machinery and enabling the efficient movement of heavy materials using chain pulley systems and other handling equipment.

Additional infrastructure advantages include a dedicated compound area suitable for the parking of heavy vehicles, and uninterrupted power supply from Maharashtra State Electricity Distribution Company Limited, which ensures consistent and reliable production operations.

The Company manufactures a diverse range of highprecision products within the electrical components segment, catering to various applications in the electrical and electronics industries. The product portfolio includes:

Stamping Components

Components for Electrical MCBs (Miniature Circuit Breakers)

Components for 63A Manual Changeover Switches

Components for MCCBs and RCBs (Molded Case Circuit Breakers and Residual Current Breakers)

Components for Brushless DC Motors

Components for Electrical Motor Starters

Components for Electrical Control Gears

Plastic Components for Electrical Applications

Each of these product lines is tailored to serve specific functional requirements across different customer applications and sectors, enabling the Company to address a wide variety of market needs and support customers through valueengineered solutions.

The Company continues to invest in enhancing manufacturing capabilities, diversifying product offerings, and improving operational efficiencies to maintain its competitive edge and ensure consistent performance across its product segments.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has established a robust and effective internal control system, which is commensurate with the size, scale, and complexity of its operations. These controls are designed to ensure the orderly and efficient conduct of business, adherence to statutory and regulatory requirements, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and the timely preparation of reliable financial information.

The internal control framework encompasses welldefined policies, procedures, and authorization guidelines, which are regularly reviewed and updated to align with changing business and compliance requirements. The Company also maintains standard operating procedures (SOPs) across departments to ensure consistency and accountability in daytoday operations.

The effectiveness of these controls is continuously monitored through:

Selfaudits and internal assessments

Periodic reviews by the internal audit team

Independent evaluations by statutory auditors

Findings from internal audits are presented to the Audit Committee of the Board, along with the managements responses and action plans for any corrective measures. This ensures transparency, accountability, and timely resolution of any controlrelated issues.

The Company remains committed to further strengthening its internal control mechanisms by leveraging technology and automation, enhancing risk management practices, and fostering a culture of compliance and ethical conduct across the organization.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Share Capital:

The authorized share capital of the company as on 31 st March, 2025 was Rs. 26,00,00,000/ divided into 2,60,00,000 Equity Shares of Rs.10/ each.

The paidup Equity Share Capital of the company as on 31 st March, 2025 was Rs. 23,40,00,010/ divided into 2,34,00,001 Equity Shares of Rs.10/ each.

Reserves and Surplus:

The Reserve and Surplus of Company is Rs. 4,807.68 as on period ended on 31st March, 2025. Total Income:

The Company has earned total Income Rs. 5,332.64 Lakhs as on period ended on 31 st March, 2025.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Company continues to follow a welldefined human resource policy focused on building strong, capable, and committed teams. Employees are considered the most valuable asset of the organization, and the Company remains dedicated to fostering a performancedriven, inclusive, and growthoriented work environment.

During the year under review, the Company maintained a sharp focus on employee engagement, development, and retention. Initiatives were undertaken to enhance skillsets, improve work culture, and ensure the wellbeing and motivation of employees. The Company emphasizes continuous learning and development to align individual performance with organizational goals.

The human resource strength of the Company is commensurate with its size, nature, and scale of operations. Industrial relations remained harmonious and cordial throughout the year, with no major disputes or disruptions reported.

The Company will continue to invest in employee development, capability building, and leadership training, while also ensuring compliance with applicable labor laws and regulations to maintain a productive and engaged workforce.

9. DETAILS OF KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE:

Sr. Ratios No	As on March, 2025	As on March, 2024	Changes	Reasons
1. Current Ratio (Total current assets/Total current liabilities)	11.47	5.30	116.61%	Due to decrease in Current Liabilities
2 DebtEquity Ratio (Total Debt/Total Equity)	NA	NA	NA	NA
3 Debt Service Coverage Ratio (Profit Before Interest & Tax/Debt Service)	NA	NA	NA	NA
4 Inventory Turnover Ratio (Sale of Products/ Average Inventory)	7.88	7.42	6.29%
5 Trade Receivables Turnover Ratio (Revenue from Operation/Average Trade Receivable)	4.20	6.70	37.34%	Due to increase in in Revenue
6 Trade Payables Turnover Ratio (Net Credit Purchases (Raw Material, Packing Material and Purchase Of Traded Goods) /Average Trade Payable)	13.12	4.97	164.02%	Due to increase in in Purchases
7 Net Capital Turnover Ratio (Revenue from Operations/Working Capital (Total Current Assets Less Total Current Liabilities)	1.04	4.97	88.01%	Due to the increase in Working Capital
8 Return on Equity (Profit for the Year/Total Equity)	1.79%	8.19%	78.14%	Due to increase in capital and reduction in profit
9 Net Profit Ratio (Profit for the Year/Revenue from Operations)	2.44%	15.79%	84.52%	Due to increase in cost of Raw Material Consumed
10 Return on Capital Employed (Profit before Tax and Finance Costs/Capital Employed (Net worth + Lease liability + Deferred tax Liability)	2.47%	11.28%	78.12%	Due to increase in capital employed and decrease in profit
11 Return on Investment (Income Generated from Invested funds/ Average Invested Funds)	NA	NA	NA	NA

10. FORWARDLOOKING STATEMENT:

This report contains forwardlooking statements that reflect the Companys current expectations, assumptions, projections, and beliefs regarding future events and business performance. These statements are based on information currently available with the Company, as well as certain assumptions made by the management in light of their experience and perception of historical trends, current conditions, and expected future developments.

However, such forwardlooking statements are inherently subject to risks, uncertainties, and other factors, many of which are beyond the control of the Company. These may include, but are not limited to, changes in general economic and business conditions, fluctuations in market demand and supply, changes in government policies and regulations, technological advancements, interest rate and exchange rate fluctuations, and other related factors.

As a result, the actual results, performance, or achievements of the Company may differ materially from those expressed or implied in such forwardlooking statements. The Company does not undertake any obligation to publicly update or revise any forwardlooking statements, whether as a result of new information, future events, or otherwise, unless required under applicable laws.

For and on behalf of the Board of Directors Electro Force (India) Limited

Place: Vasai Dated: September 5, 2025

Sd/

Saideep Shantaram Bagale Wholetime Director DIN: 07196456

Sd/

Santosh Kumar Palaria Director DIN: 10094804