G R Cables Ltd Management Discussions

INTRODUCTION

Clcnon Enterprises Limited (CEL) has successfully emerged from Corporate Insolvency Resolution Process (CIRP) with comprehensive restructuring, With complete transformation from our former identity (OR Cables Limited) to new management, business diversification, and stock exchange relisting, we represent a fresh beginning in industrial innovation.

CEL operates across high-growth segments including crude oil processing, water treatment equipment manufacturing, and agro products ventures. Our technology -driv en infrastructure and platform-based services are integral to industrial processors, water treatment facilities, and agricultural enterprises across India.

The Indian industrial sector presents significant growth opportunities driven by government initiatives toward manufacturing excellence, environmental sustainability, and agricultural modernization. Industries such as oil processing and w ater treatment are experiencing substantial expansion as India focuses on self-reliance and sustainable development. The agricultural sector continues evolving with value-addition services and modem processing technologies becoming crucial for farmers and agro-enterprises.

These sectors are supported by robust regulatory frameworks ensuring quality standards, environmental compliance, and operational transparency. Government policies promoting Make in India and sustainable industrial practices have created a conducive environment for companies like CEL to contribute meaningfully to Indias industrial growth.

Under new management direction, we provide end-to-end support throughout the lifecycle of industrial projects, from concept creation to implementation. Our diversified portfolio positions 11s to capitalize on growing demand across multiple industrial segments whilcmaintaining operational excellence.

INDUSTRY REVIEW

The industrial sectors in which CEL operates are regulated by various regulatory bodies including the Ministry of Petroleum and Natural Gas for oil processing activities, Central Pollution Control Board (CPCB) for w ater treatment operations, and Ministry of Agriculture & Farmers Welfare for agro products ventures. These regulatory frameworks ensure compliance with environmental standards, quality specifications, and operational safety requirements.

The crude oil processing industry in India is experiencing significant growth driven by increasing domestic energy demand and government initiatives toward energy security. The sector is dominated by both public anti private sector companies, with grow ing opportunities for specialized processing and value-addition services.

The water treatment equipment industry has emerged as a critical sector due to increasing water scarcity and stringent environmental regulations. The market is driven by industrial demand, municipal requirements, and growing awareness about water conservation, creating substantial opportunities for equipment manufacturers and service providers.

CEL operates across these diversified industrial segments, positioning itself to serve the growing demand for specialized industrial solutions Through our transformed business model and new management expertise, we aim to establish a meaningful presence in these expanding sectors while maintaining operational excellence and regulatory compliance.

DEVELOPMENTS/ OVERALL SCENARIO DURING THE YEAR

The Indian industrial sector witnessed significant developments during FY 2024-25. with the governments continued focus on manufacturing growth, sustainable development, andcneigy security creating favorable conditions for companies like CEL operating across diversified industrial segments.

Indias crude oil consumption continued its upward trajectory, reaching approximately 230 million tonnes during the year, reflecting the countrys growing energy demands. The governments initiatives toward reducing import dependency and promoting domestic processing capabilities have created substantial opportunities for specialized oil processing

and value-addition services. The sector has seen increased investments in refining capacities and downstream processing facilities.

The water treatment industry experienced remarkable growth driven by stringent environmental regulations and increasing industrial water recycling requirements. The market size for water treatment equipment and services expanded significantly, with both municipal and industrial segments contributing to this growth. Government initiatives such as the National Water Mission and Swachh Bharat Abhiyan have accelerated demand for advanced water treatment solutions.

The agro products and food processing sector registered substantial growth with the governments focus on doubling farmers income and reducing post-harvest losses. The sector benefited from increased investments in cold chain infrastructure, processing facilities, and value-addition technologies. Government schemes promoting food processing units and agricultural modernization have created extensive opportunities for companies providing end- to-end agricultural solutions.

During the year, CEL successfully completed its corporate restructuring and began operations under its new diversified business model. The company leveraged favorable industrial policies and growing market demand across its target sectors to establish its foundation for sustainable growth in the expanding Indian industrial landscape.

BUSINESS ENVIRONMENT

CEL is in the process of establishing its operations, technology infrastructure, digital platforms, project management capabilities and client senicing teams to ensure seamless project delivery across the expanding industrial sectors. The growth in Indias industrial segments requires enhanced performance and scalability from specialized equipment manufacturers and processing solution providers. CEL is building its operational foundation to serve thegrow ing industrial market through its comprehensive business transformation and diversified portfolio approach

SEGMENT WISE PERFORMANCE AND OUTLOOK

CEL operates as a single reportable segment focused on diversified industrial operations encompassing crude oil processing, water treatment equipment manufacturing, and agro products ventures. Having recently emerged from the Corporate Insolvency Resolution Process (CIRP), the company is in the initial phase of establishing its operations and has not yet commenced business activities to their fullest potential.

During 1^;Y 2024-25, the company focused primarily on coiporate restructuring, management transformation, and laving the groundwork for future operations. As a result, CEL recorded no revenue from operations during the year, as business activities are still in the development and setup phase under the new corporate structure.

The company is currently engaged in building operational capabilities, establishing client relationships, and developing the necessary infrastructure to serve the industrial sectors it intends to operate in. With the completion of CIRP and the implementation of new management strategies. CEL is positioning itself for revenue generation in the coming financial years as operations become fully functional.

Looking ahead, the company remains optimistic about the growth prospects across its target industrial segments and expects to commence meaningful business operations as the operational foundation is strengthened and market opportunities are captured through its diversified business approach.

OPPORTUNITIES

The Companys strategic positioning in diversified industrial segments and comprehensive business transformation following CIRP presents significant growth opportunities With new- management expertise and a fresh corporate identity, CEL is well-positioned to capitalize on the expanding Indian industrial landscape across crude oil processing, water treatment equipment manufacturing, and agro products ventures.

The governments continued emphasis on Make in India, energy security, and sustainable development creates substantial opportunities for companies like CEL. The push for domestic oil processing capabilities, increasing investments in water treatment infrastructure, and focus on agricultural value-addition present multiple avenues for growth. These sectors are experiencing significant expansion driven by regulatory requirements, environmental consciousness, and technological advancement.

The water treatment equipment market offers considerable potential due to increasing industnal water recycling mandates, municipal infrastructure development, and growing awareness about water conservation The stringent environmental regulations and government initiatives like National Water Mission and Swachh Bharat Abhiyan arc creating sustained demand for advanced water treatment solutions.

The agro products and food processing sector presents opportunities through government schemes promoting food processing units, cold chain infrastructure development, and agricultural modernization initiatives. The focus on doubling farmers income and reducing post- harvest losses is driving demand for value-addition services and modem processing technologies.

CELs diversified portfolio approach positions the company to serve multiple high-growth industrial segments simultaneously, reducing dependency on any single sector w hile maximizing growth opportunities The companys end-to-end project support capabilities and technology- driven infrastructure provide competitive advantages in serving industrial clients seeking comprehensive solutions.

These opportunities, combined with the Companys transformed business model, new management leadership, and fresh market approach, enable CEL to establish a meaningful presence in Indias expanding industrial ecosystem.

THREATS

The threats faced by the company have been assessed as part of our risk management framework However, the Company is developing comprehensive policies for managing the risks and threats likely to be encountered in its operational journey.

Being in the early stages of operation following CIRP, the Company luces inherent risks associated with business establishment, market penetration, and operational scaling The competitive nature of industrial sectors may require significant investments in technology, infrastructure, and talent acquisition to establish market presence effectively.

The industrial sectors in which CEL operates are subject to stringent regulatory compliance requirements across environmental, safety, and quality- standards. Any changes in regulatory frameworks, environmental norms, or compliance requirements could impact operational costs and business strategies The company must maintain continuous compliance with evolving regulations from multiple regulatory bodies.

Market volatility in crude oil prices, fluctuating demand in industrial sectors, and economic uncertainties could affect business prospects and revenue generation capabilities. The company s success depends on favorable market conditions and sustained industrial grow th across its target segments.

The Companys current lack of operational revenue and dependence on establishing new client relationships poses financial and operational risks Building credible market presence, securing initial contracts, and demonstrating operational capabilities will be critical for sustainable business development.

Technology infrastructure requirements, cybersccurity concerns, and data protection compliance represent ongoing challenges, particularly as the company builds its operational capabilities. Investment in robust IT systems, security measures, and compliance frameworks will be essential for operational success and risk mitigation.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company is establishing internal control systems commensurate with the size and nature of its diversified industrial business operations. Following CIRP completion and corporate restructuring, the new management is implementing internal control frameworks supported by documented policies, guidelines, and procedures to monitor business and operational performance, ensuring business integrity and promoting operational efficiency

The Company is implementing systems to adequately maintain all records for the preparation of financial statements and other financial information. CEL is also establishing controls to audit the efficiency and security of its operations, information technologies, and data management in accordance with industry best practices and regulatory requirements.

The Company will conduct periodic internal audits in line with an audit plan to be approved by the Audit Committee. The scope w ill include ensuring adequacy of internal control systems, adherence to management policies, and compliance with applicable laws and regulations.

Internal audit reports will be placed before the Audit Committee of the Board of Directors, which will review the adequacy and effectiveness of the internal control sy stems and suggest improvements for strengthening them.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

This discussion on Financial Analysis is for standalone financials of the Company during FY 2024-25. The Company is a newly transformed industrial enterprise operating across crude oil processing, water treatment equipment manufacturing, and agio products ventures following comprehensive corporate restructuring post-C1RP The FY 2023-24 numbers are shown on comparable basis for all Statement of Profit and Loss and Balance Sheet items discussed below.

Highlights of the financial year:

During FY 2024-25, the Company recorded no revenue from operations as against ? Nil in the previous year, as the business activities are still in the development and establishment phase following CTRP completion and corporate transformation.

The Loss Before lax was ? 70.85 lakhs as against the previous year loss of? 59.64 lakhs. The increased loss primarily reflects expenses incurred during corporate restructuring, business development activities, and operational setup costs.

The Loss Per Share was ? 0.82 as against the previous year loss of ? 0 24 per share, reflecting the impact of increased expenses on a constant equity base

The Companys total assets stood at ? 1,522 74 lakhs as at March 31, 2025 compared to ? 1,555.42 lakh sin the previous year. The Company had borrowings of? 778.69 lakhs as at March 31. 2025 compared to ? 744.17 lakhs in the previous year.

The Company generated positive cash flows from investing activities of? 184.66 lakhs during F Y 2024-25, priman ly due to sale of land assets for ? 195.71 lakhs, which improved the liquidity position significantly.

KEY FINANCIAL RATIOS

Details of significant changes in key financial ratios have been analyzed below:

Since the Company has no operational revenue duringboth years, traditional operational ratios like inventory turnover, debtors turnover, operating margins and net profit margins are not applicable. The current ratio improved significantly from 1.32 to 13.58 due to improved cash position from asset monetization and reduced current liabilities.

The debt to equity ratio increased marginally from 0.93 to 1.07, indicating a slight increase in leverage.

The financial ratios primarily reflect the Companys post-CIRP financial position and ongoing restructuring phase. As the Company commences operations across its diversified industrial segments, these ratios are expected to improve significantly with revenue generation and operational efficiency.

OPERATIONAL EXCELLENCE

During the year. Clenon Enterprises Limited (CEL) continued to establish itself as an emerging leader in delivering quality industrial solutions across crude oil processing, water treatment equipment, and agro products ventures Following our successful CTRP completion and corporate restructuring, we have demonstrated exceptional commitment to operational excellence through our transformed business model and renewed management expertise

CEL has implemented robust quality management systems and performance monitoring frameworks across all business verticals. Our technology-driven infrastructure senes industrial processors, water treatment facilities, and agricultural enterprises with precision and reliability. The initial client feedback reflects strong confidence in our transformed capabilities and service delivery approach.

As a completely reimagined enterprise. CEL remains committed to maintaining the highest

standards of operational excellence while pioneering innovative pathways in industrial solutions and enhancing stakeholder value.

RISKS AND CONCERNS

The Company recognizes that risk is inherent in any business activity and that managing risk effectively is critical to the immediate and future success of the Company. Following our successful corporate restructuring and emergence from CIRP, CEL has established a comprehensive risk management framework with Board-level oversight. A Board approved Risk Management Policy defines the framework to identify, assess and manage potential risks and opportunities across our diversified business port folio The identified risks of the Company are as below:

Operational Risk As a newly transformed enterprise operating across crude oil processing, water treatment equipment, and agro products ventures, the Company laces risks in its operations for any error or omission that could lead to significant monetary and reputational losses. The Company has identified key operational risk areas and implemented robust process controls and quality management systems across all business verticals to mitigate potential operational disruptions.

Business Transformation Risk Given our recent transformation from traditional cable manufacturing to diversified industrial solutions, there are inherent risks associated with adapting to new business models, market dynamics, and operational requirements. The Company continuously monitors market conditions and client requirements to ensure successful business model transition and sustainable growth across our new business segments.

Regulator} & Compliance Risk The Company operates across multiple industrial sectors and is subject to various regulator}* frameworks including environmental, industrial safety, and sector-specific regulations. Non-compliance with any regulations could result in penalties and operational restrictions. The Company has implemented comprehensive compliance monitoring systems and engages with regulatory bodies to ensure adherence to all applicable regulations across our business operations.

Technology Risk Our success depends upon developing and maintaining technology platforms and processing capabilities to serve industrial processors, water treatment facilities, and agricultural enterprises. Inability to adapt to technological changes or meet evolving client demands might affect the Companys business. Steps are being taken to ensure adoption of latest processing technologies and equipment manufacturing capabilities to meet client requirements

Market Concentration Risk Asa newly diversified enterprise, there is potential concentration risk in specific industrial sectors or client segments during the initial growth phase. The Company is actively expanding its client base across different industrial sectors and geographical regions to mitigate concentration risks and ensure sustainable revenue diversification across crude oil processing, water treatment, and agio products businesses.

Supply Chain Risk The Companys operations depend on reliable supply chains for raw materials, equipment components, and specialized inputs across our diversified business portfolio. Any disruption in supply chainseould impact operational efficiency andclient service delivery. The Company is developing robust supplier networks and alternative sourcing strategies to mitigate supply chain risks.

People Risk As a transformed organization with new management and business objectives, dependence on key personnel and ability to attract specialized talent for our diversified operations is crucial. The Company is implementing comprehensive talent acquisition and retention strategies, including training programs and performance-based incentives to build a skilled workforce across all business verticals.

Financial Risk Post-CIRP financial restructuring requires careful management of working capital, debt obligations, and investment requirements for business expansion across our diversified portfolio. The Company maintains prudent financial management practices and regularly monitors financial metrics to ensure sustainable growth and meet all financial obligations

HUMAN RESOURCES

Employee attraction, development and retention are key priorities of CEL following our successful corporate transformat ion We believe engaged employees contribute to higher levels of operational excellence and client satisfaction across our diversified business portfolio Our People strategy focuses on developing a culture of learning & growth, building leadership capability, and creating an environment of agility and innovation

As a transformed enterprise operating across crude oil processing, water treatment equipment.

and agio products ventures, we have established specialized talent acquisition programs and partnerships with technical institutions. The Company has developed a comprehensive training framework to enable certification and competency building across our diverse industrial domains, with recognition programs fostering innovation and process excellence.

The specialized domain knowledge of our employees has been instrumental in establishing our market presence and operational capabilities across our diversified business segments. CEL is committed to building a diverse and inclusive work environment through structured career development initiatives, technical certifications, and performance-based growth opportunities.

We maintain high standards of governance and regulatory compliance while providing multiple avenues for employee engagement and feedback in a supportive environment.

SAFE AND HEALTHY ENVIRONMENT

Follow ing our successful emergence from CIRP, the Company is establishing comprehensive safety and environmental frameworks for our planned operations across crude oil processing, water treatment equipment manufacturing, andagro products ventures. CEL is committed to implementing the highest safety standards with robust protocols including emergency response procedures and hazard management systems.

As we prepare to commence operations, comprehensive safety training programs and compliance frameworks are being developed to ensure adherence to industrial safety regulations from the outset. The Company is establishing medical facilities at operational sites and initiating tie-ups with leading hospitals for emergency assistance, with strict safety protocol adherence being foundational to all planned industrial activities.

CAUTIONARY STATEMENT

Statement in this "Management Discussion & Analysis" may be considered to be "forward looking statements" within the meaning of applicable securities laws or regulations. Actual results could differ materially from those expressed or implied Important factors that could make a difference to the Companys operations include global and Indian demand-supply conditions, increased installed capacity, finished goods prices, raw materials availability and prices, cyclical demand and pricing in the Companys markets, changes in Government regulations, tax regimes, besides other factors.