filtron engineers ltd Management discussions

Introduction:

Filtron Engineers Ltd, has been an established name in the process and plant industry. It has been providing quality equipments and turnkey systems to the Dairy, Food, Beverage and other processing industries.

As on date the operation of the Company has been stopped. However, management is trying to find viable opportunities for the Company to accelerate the business of the Company.

Industry Structure and Development

The wide application of process plant and its equipment will drive the growth in near future. The plant and equipment are engineered in different metals like stainless steel, aluminium, copper, mild steel and carbon steel by adopting the best manufacturing process. The process equipment covers the processing sector essential for producing the desired finished product. The process plant are reputed for design, process technology through various automated processing unit, quality, consistence performance and customer satisfaction.

Opportunities and Threats

In this emerging world, there would be many opportunities which will be available for the Company, however due to business of the Company being inoperative, the opportunities available are not getting converted into result.

The most important threat continues to be competition from low cost imported products. Manpower costs are rising as many large companies are mopping the available talent pool supply of which is limited. Thus, for small and mid-range companies, retaining high quality manpower is a concern.

Segment wise Operational Performance

The company operates in a single business/ geographical segment. Hence, segment wise performance is not furnished.

Outlook

Your Company, keeping pace with the overall market scenario and trying to revive the operation of the Company.

Risk and Concerns

Our Company remains exposed to risks which could impact our operating and financial performance. These risks could be macro, geopolitical, environmental, health related and sector specific in nature.

Internal Control systems and their adequacy

The Company has an adequate internal financial control system commensurate with the size, scale and complexity of its operations. It has put in place adequate controls, procedures and policies for ensuring orderly and efficient conduct of its business including adherence to polices, safeguarding its assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records. Appropriate frameworks have been designed to have internal controls over financial reporting, which ensures the integrity of financial statements of the Company and reduces possibility of malpractice. Design of key processes and various policies are reviewed periodically, from the point of view of adequacy of controls.

The Board of Directors and management at all levels of the Company demonstrate through their directives, actions and behaviours the importance of integrity and ethical values to support the functioning of the system of internal control. The ‘Code of Conduct and the ‘Whistle-blower/ Vigil Mechanism policies form an integral component of the internal control system. The Code of Conduct compliance is mandatory for employees and the Whistle-blower / Vigil Mechanism policies enables employees and vendors to raise genuine concerns about any actual or suspected ethical / legal violations or misconduct or fraud, with adequate safeguards against victimisation, fear of punishment or unfair treatment.

Internal controls are tested for effectiveness, across all project sites and functions by the Internal Audit team, which is reviewed by the management for corrective action from time to time and deviations, if any, are reported to the Audit Committee periodically.

Operational and financial performance

The Company is inoperative and in the process of revival. However, the Company is in lookout for future projects

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

The Company recognise our industry in which we operated is a labour and employees intensive industry and key to the success of the organization and in meeting its business objectives. Hence, our company strive to create a quality of life for its employees. Keeping the spirits high at workplace needs a sound mental and physical fitness and deep-rooted culture which promotes work life balance.

Key Financial Ratios:

The key financial ratios for the financial year 2022-23 and comparison thereof with the financial year 2021-22 has been stated in the Financial statement for the period ended March 31, 2023

Details of Change in Return on Networth

There is no change in Return on Networth of the Company in compared to previous financial year

For and on behalf of the Board of Directors of

Filtron Engineers Limited

Sd/-

Sadanand Ganapati Hegde

Chairperson and Whole-time Director

DIN: 00195106

Place: Pune

Date: November 13, 2023

C/o: Plot No.36, WMDC Industrial Area,

Ambethan Road, Chakan, Pune – 410501,

Maharashtra, India