Emkay Taps & Cutting Tools Ltd Management Discussions

Global Economic Overview

Global Economic growth in 2025 and 2026 is projected at 2.8% and 3% respectively. The recent US tariffs could disrupt global trade drive and result in Inflation and slow economic growth. Unless there is clarity on thlsfront, the exact projections may be difficult.

Near Economic Overview

As per RBI estimates, the GDP Growth rate of around 6.7% for FY 2025-26 Is projected.

Indian Renewable Green Sector

India has set forth funds and considerable allocations have been made in the budget forgreen energy.

Indian Renewable Energy Sector

India being one of the fastest growing economy, it is on the path to ensure energy security.

OurlnrJustry

Director of our Company are Mr. AJayprakash Kanoria, Mrs. Alka Kanoria, Mr. Mahesh Mor, Palathayl Cherlath Ramchandran, Mahesh Mor, Ravindra Lolya and looking out for Investments In Indian Renewable Sector. This process may take some t ime.

Outllook For the Company

Given the space the Company has selected and details in the management discussions about the sector are hopeful that going forward, In this sector the outlook for the Company will be bright.

During the year the Honble Mumbai 8ench of the National Company Law Tribunal (NCLT) granted its approval to the Scheme of Arrangement vide Order No. C.P.(CAA) 122(MB) 2024 dated October 28, 2024. The entire business of manufacturing tools l.e., Demerged Undertaking, as defined in the Scheme, of the Company was demerged, transferred and vested into Emkay Tools Limited (“Resulting Company") on going concern basis In accordance with the Composite Scheme. By virtue of Composite Scheme of Arrangement the Ernkay Tools Limited were ceased to be a Wholly Owned Subsidiary of the Company with effect from 1st April 2024. Internal control systems and their accuracy

Considering the size and nature of the business, presently adequate internal control systems are in place. However, as and when company achieves further growth and higher level of operations, Company will review the internal control system to m3tch with changed requirement.

The company has proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against unauthorized use or disposition and that transaction are authorized and recorded correctly. The company has constituted Audit Committee consisting of non-executive and Independent Directors to look into various aspects of Accounts. The company has a clearly defined organization structure in place.

Discussion on Financial Performance with Respect To Operational Performance

Revenue

Gross Revenue from main business operations was INR 4186.50 lakh as recorded in the financial year 2.024-25 with a decrease of 59.53% as against the preceding year, because the entire business of manufacturing tools i.e.. Demerged Undertaking, as defined in the Scheme, of the Company was demerged, transferred and vested Into Emkay Tools Limited ("Resulting Company") as perorderof the Honble Mumbai Bench of the National Company Law Tribunal (NCLT).

Profits

The company has earned Profit before depreciation. Interest and Taxes (PBDfT) of INR 3,144.27 lakh during the financial year under review as against the previousf inancial years PBDIT of INR 9291.65 lakh. The profit after taxfor the financial Year 2024-25 was INR 2,681.58 lakh as against profit aftertax of INR 7189.87 lakh forthe financial year 2023-24.

Earnings per share (EPS)

The basic and diluted EPS on INR 10/- paid up share are INR 25.13 and INR 25.13 respectively for the financial year ended March 31, 207.5. The basic and diluted EPS on INR 10/- paid up share is INR 67.38 and INR 67.38 respectively for financial year ended March 31,2024.

Reserves and Surplus

The Reserves and Surplus of the Company as on March 31,2025 stood at INR 27,701.97 lakh as against INR 28823.56 lakh as on March 31,2024.

Net worth

As on March 31, 2025 the Net worth of the company stands at INR 28769.10 lakh as against INR 29890.69 lakh in the financial year 2023-24.

Details of significant changes (l.e. Change of 25% or more as compared to the immediate previous financial year) In key financial ratios, along with detailed explanations therefore, including:

The comparative ratios shown on the financial statement are not comparable as the Scheme of Arrangement between Emkay Taps and Cutting Tools limited and Emkay Tools Limited has been effected during the period under reporting which has caused such impact.

Details of any change in return on net worth as compared to the immediate previous financial year along with a detailed explanation thereof:

Return on Net-Worth for current year is 9.32%.

Operating profit margin from manufacturing activities has remained consistent with last year operating profit margin. However the Net Profit Margin has changed due to gain from other income Segment Wise or Product Wise Performance

Tne reportable segments of the Company are Investment and Power. Detailed reporting along with figures relating to each reportable segment is disclosed as a part of the notes to the accounts in Note no. 36.

Material Developments in Human Resources / Industrial Relations Front. Including number of People Employed The company believes that human resources will play a key role in its future growth. Planned efforts are made to develop and retain talent. Learning and development initiatives focus on developing the professional capabilities. The company continues to provide growth opportunities to internal talent by assigning them higher responsibilities with suitable exposure and training fhe company continues to maintain positive work environment and constructive relationship with its employees with a continuing focus on productivity and efficiency.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be forward looking statements. Actual results could differ materially from those expressed or implied Important factors that could make a difference to the Companys operations include, amongst others, economic conditions affecting demand/supply and price conditions in the markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and Incidental factors.

•The information in this section is based on Industry sources and publications. Industry sources and publications generally state that the information contained therein has been obtained from sources it believes to be reliable, but their accuracy, completeness and underlying assumptions are not guaranteed and their reliability cannot be assured