Garware Marine Industries Ltd Management Discussions

INDUSTRIAL STRUCTURE & DEVELOPMENT:

Your Company continues to operate its Ship Repair Division.

OPPORTUNITIES:

The Company has incurred a loss during the year in view of the drastic reduction in its income, even though costs continued to be controlled. The Company strives to improve its customer base in the future and will hopefully be able to achieve the same as vessel upkeep requirements become more affordable in view of the improvement in the industry conditions. The Company also hopes its main customer will grow in the future.

THREATS:

The Companys main Customer has sold majority of its fleet and therefore revenue for the Company will come under pressure with less vessels to repair.

SEGMENT–WISE OR PRODUCT-WISE PERFORMANCE:

The Company operates in a single segment viz. ship repairs.

OUTLOOK: (to be changed)

While, during the current year, costs continued to be controlled, revenue from operations declined substantially, and the Company incurred a loss.

In the short term the Company will continue to face challenges since the Companys main customer has reduced the strength of its fleet. As a result, the scope to carry our repairs has also reduced. Therefore, the Company will strive to widen its customer base as well.

On a medium to long term horizon, the Company hopes that it is successful in widening Customer base and that its main Customer grows its fleet so that it can generate sufficient revenue to defray all costs and earn a healthy profit.

INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

Your Company has an Internal Control System commensurate with its business. Adequate measures have been taken to mitigate all types of unforeseen risks and to protect the Company from any potential risks which may affect the existence of the Company and the Board of Directors. Utmost care has also been taken to ensure preservation of interest of all its stakeholders. The Audit Committee reviews the report of Internal Auditors and recommends steps for future improvement with respect to internal control.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Revenue from operations (including other income) for the year ended 31st March, 2024 stood at Rs. 71.21 lakhs as against Rs. 122.53 lakhs for the previous year ended 31st March, 2023 (lower by 41.81%).

The loss for the year ended 31st March, 2024, stood at Rs. 6.81 Lakhs as against a profit of Rs. 11.58 lakhs for the previous year, in view of a substantial reduction in revenue from operations.

As a result of an increase in market price of listed investments, other Comprehensive Income stood at a "surplus" of Rs. 320.28 lakhs as opposed to a "deficit" of Rs. 339.85 lakhs for the previous year. Therefore, the Total Comprehensive Income for the Year stood at a profit of Rs.313.67 Lakhs as against a loss of Rs. 327.72 Lakhs in the previous year. No material changes/commitments have occurred after the financial year ending till date of this report, which affected the financial position of the Company.

The Company does not have any debt outstanding.

FINANCIAL RATIOS:

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, following are the details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key financial ratios.

Key Financial Ratios	F.Y. 2023- 24	F.Y. 2022- 23	Change in %	Remark
Return on equity Ratio	-0.72%	1.21%	-159.24%	Substantial fall in Sales which led to a loss during the year.
Trade Receivable Turnover Ratio	0.14%	0.28%	-47.89%	Substantial fall in Sales for the current year as compared to previous year.
Trade payable Turnover Ratio	4.05%	6.10%	-33.56%	Increase in trade payables in the current year.
Net Capital Turnover Ratio	0.14%	0.26%	-45.17%	Substantial fall in Sales in the current year as compared to the previous year.
Net Profit Ratio	-10.29%	9.46%	-208.81%	Substantial fall in Sales which led to a loss during the year.
Return on capital employed	-0.58%	1.51%	-138.49%	Net loss during the year.

RISKS AND CONCERNS

While in the short term the Company will face challenges, in view of the reduction on the fleet of Vessels owned by the

Companys main Customer, we hope the medium /long term will be better in terms of sales and margins for the Company.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

Cordial relations were maintained at all levels. The Company wishes to place on record its appreciation of all the sacrifices made by dedicated employees.

FORWARD-LOOKING STATEMENTS:

Statements in this Management Discussion and Analysis report describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. The

Companys actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events. Further, important factors that could make a difference to the Companys performance are circumstances in the industry, tax regimes and acts of God. We are gradually leveraging our competencies to solve for our clients issues. As we look ahead to the future, we are optimistic about the opportunity that awaits us.