Envair Electrodyne Ltd Management Discussions

Annexure-VI

INDUSTRY STRUCTURE AND DEVELOPMENTS

due to various factors such as the increasing emphasis on environmental regulations, growing demand for cleaner air and water, and the rapid industrialization in developing countries. Key players in the market are constantly innovating and developing advanced filtration technologies to meet the evolving needs of industries such as pharmaceuticals, food and beverage, and automotive.

OPPORTUNITIES

The Company has realised its investment in Land and Building in Pune and is now looking for investment avenues to deploy its cash in new businesses. The management and the board are evaluating proposals to setup new manufacturing projects.

THREATS

However, the industry is facing challenges such as the high cost of filtration systems, stringent regulatory requirements, and the emergence of alternative technologies. Despite these challenges, the market presents opportunities for growth, with the rising awareness about the importance of contamination control in various industries and the increasing focus on sustainable practices.

FUTURE OUTLOOK

The Company has realised its investment in Land and Building in Pune and is now looking for investment avenues to deploy its cash in new businesses. The management and the board are evaluating proposals to setup new manufacturing projects. Given the experience and expertise of the owners in setting up new manufacturing facilities - the Company will soon utilize its cash resources to improve its return to shareholders. Meanwhile, the Company in the last year has invested in one of the manufacturing units in Singapore also.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company believes that strong internal control system and processes play a critical role in the health of the Company. The Company is having an internal control system including suitable monitoring procedures commensurate with its size of operations;

Our Internal Auditor, M/s. S.M Bhat & Associates, Chartered Accountants, has certified that the Company maintains an adequate system of internal financial controls, evaluates and assesses its adequacy and effectiveness in a satisfactory manner which takes care of requirements under the Companies Act, 2013.

RISKS AND CONCERNS

Risk is an integral part of the business and almost every business decision requires the management to balance risk and reward. The ability to manage risks across geographies, products, asset classes, customer segments and functional departments is of paramount importance for the hindrance free growth of every organization. In the business world, the different types of risks have come to mean an impediment towards the achievement of an organizations objectives. Your Company is exposed to specific risks that are particular to its business and the environment in which it operates.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Financial Statements have been prepared in compliance with the requirements of the Companies Act, 2013, guidelines issued by the Securities and Exchange Board of India (SEBI). Our management accepts the responsibility for the integrity and objectivity of these financial statements, as well as for the various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on prudent and reasonable basis, so that the financial statements reflect in a true and fair manner the form and substance of transactions, and reasonably present our state of affairs, profits and cash flow for the year.

The Companys financial performance is given as below:

Revenue and Operating expenses

During the year, the Company has not done any business activity. The Company earned total revenue (including other income of Rs. 76,99,395 (Seventy Six Lakhs Ninety Nine Thousand Three Hundred Ninety Five) for FY 2024-25 & total revenue (including other income) of Rs. 69,17,507 (Sixty Nine Lakhs Seventeen Thousand Five Hundred Seven) for FY 2023-24. Detailed overview is given in Financial Statement attached to this Report.

Human Resources / Industrial Relations

In Envair Electrodyne Limited, we have built a warm and receptive work environment that evokes deep feelings of pride and belonging and is based on the highest standards of excellence and integrity. We have a tradition of excellence that has been built by passionate, talented people who are driven to succeed. Working together, we thrive in this environment and are proud to make a difference. We need and seek out people who are dedicated and driven to create the future. People with passion and commitment to get it right and a never ending desire to learn, improve and contribute. We are committed to enhance the skills and competencies as well as personal growth and development of its employees.

Details of Key Financial Ratios: