Ganga Forging Ltd Management Discussions

OVERVIEW OF INDIAN FORGING INDUSTRY:

The Indian forging industry has emerged as a major contributor to the manufacturing sector of the Indian economy. It acts as a vital backbone for the manufacturing sector, serving automotive, aerospace, defense, and railway segments by producing high-strength, durable metal components. The Indian forging industry is well recognized globally for its technical capabilities. With an installed capacity of approximately 37 lakh MT, this industry has a capability to forge variety of raw materials i.e. carbon steel, alloy steel, aluminium and many more type of steel. Quality standards in the industry have improved significantly and the sector is now well known globally for its high quality.

This industry is concentrated around its end user customers location and hence, the majority forging plants are found in the state of Maharashtra, Punjab, Gujarat, Haryana, Delhi, Tamil nadu etc.

In forging industry, medium and large units are more mechanized but the small and very small forging units are mainly dependent on manual labour. Therefore, the forging industry of India provides direct employment to around 95000 people.

Any changes in the automobile industry directly impact the forging industry, as the forging components are the key elements for automobile sector. In order to reduce the impact of demands and dependence on auto sector, the industry plans to divert into non-automotive sectors also.

Ganga Forging Limited ("The Company") is also a forging and casting manufacturer, catering the closed die forged products to both automotive and non-automotive segment. Automotive segment includes manufacturing of products catering to commercial vehicle, passenger car, three wheelers, two-wheeler and tractor. Non-automotive segment includes electric power transmission, dairy equipment manufacturing, agricultural, gear and gear box, crank shafts, connecting road, heavy engineering industrial, hubs and flanges.

Our Company also complies with Quality Assurance System like ISO and strives to deliver quality products to the customers. Our Company is ISO 9001:2008 certified. We believe in manufacturing and delivering quality products and our manufacturing process is under constant supervision by Engineers. The entire system is backed by proper documentation, traceability until the end product, with full proof checks required as per ISO regulations. We are dedicated towards supply of quality products by controlling the procurement of our raw material, monitoring the process parameters and maintaining appropriate measures to comply with applicable statutory and regulatory requirements of our products.

• Rising adoption of Automation in manufacturing to drive market growth

• Government initiative "Make in India" have boosted the manufacturing industry in the region by creating a positive business environment

• Increasing export of forging products

• Increasing Foreign Direct Investment to boost Market Growth

• Automotive to be fastest growing end-user due to rising growth of electric vehicles

• Continues development of new Railway lines

• Changes in automobile industry directly impact

• The industry lacks acutely the resources for upgrading its technological status and there is also a dearth of quality or skilled manpower.

• Increased competition in the sectors / areas in which we operate;

• Our ability to meet our capital expenditure requirements;

• Fluctuations in operating costs;

• Changes in political and social conditions in India, the monetary and interest rate policies of India and other countries;

• Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

• The performance of the financial markets in India and globally;

• Any adverse outcome in the legal proceedings in which we are involved;

• Our failure to keep pace with rapid changes in technology;

• The occurrence of natural disasters or calamities;

• Other factors beyond our control;

• Changes in government policies and regulatory actions that apply to or affect our business.

Effective internal financial controls are essential for the integrity of the Companys financial reporting. Management and employees at all levels are responsible for understanding and implementing these policies and procedures to ensure robust internal controls.

There is an adequate internal control system commensurate with the size of the company and nature of the business for inventory, fixed assets and for the sale of goods or services. The Company has implemented proper and adequate systems of internal control to ensure that all assets are safeguarded and protected against loss from any unauthorized use or disposition and all transactions are authorized, recorded and reported correctly. The system ensures appropriate information flow to facilitate effective monitoring. The internal audit system also ensures formation and implementation of corporate policies for financial, reporting, accounting and information security.

The Company has constituted Audit committee to overlook the internal control systems and their adequacy. Audit committee regularly reviews and gives recommendations on proper and adequate internal control systems.

During the reporting year, the company has recorded Revenue of Rs. 356163.87 (In thousand) as compared to Rs. 432194.39 (in thousand) during the previous financial year 2024-25. The revenue of the company has been decreased by more than 15 percent as compared to previous financial year. Further, during the reporting year the company has recorded total loss of Rs. 36538.45 (in thousand) as compared to profit of Rs. 6130.59 (in thousand) in the previous year. Performance trend of last three years is as given under:

Ganga Forging Limited is operating in single segment. Hence, comments on segments wise performance is not required.

Our company is committed to provide work environment that ensures every employee is treated with dignity and respect and equitable treatment for all irrespective of their designation. The company is also committed to promoting a work environment that is conducive to the professional growth of the employees and encourages equality of opportunity.

Further, the company will not tolerate any form of sexual harassment and is committed to take all necessary steps to ensure that the employees are not subjected to any form of harassment. Company always be responsible for the safety of employees as well as the public. Create a positive and dynamic work environment that enable personal achievements, work life balance and business success. We inspire each other to explore ideas that can make the community and world better place.

Analysis of key financial ratio for the year as compared to previous financial year is as given under: