Incon Engineers Ltd Management Discussions

ANNEXURE - IV

a) Company overview

The Company has taken up design changes of the Fluid Energy Mills for other applications such as grinding of pharmaceuticals, minerals and other high value chemicals.

b) Structure and Developments, Opportunities and Threats, Performance, Outlook, Risks and Concerns:

The company had taken up the diversification programme to modify its equipment to meet the requirements of the pharmaceutical and specialty chemicals industry. The company is hopeful that these modified designs will be well received.

c) Internal Control Systems and their Adequacy

The Company has adequate internal control systems and procedures in all operational areas and at all levels such as manufacturing, procurement, finance, administration, marketing and HR departments. The Company also has Internal Audit systems commensurate with its size and nature of business. The internal audit function will be done by a firm of Chartered Accountants. The Audit committee reviews the internal audit reports and the adequacy of internal controls from time to time.

d) Financial Performance & Operational Performance:

A. FINANCIAL HIGHLIGHTS: Capital Structure:

The Authorised Share Capital of the Company is Rs. 840 lakhs comprising of 8,400,000 Equity Shares of Rs.10/- each.

The Paid up Capital of the Company is Rs. 432.71 lakhs comprising of 4327100 Equity Shares of Rs.10/- each.

Other Equity:

The Other Equity of the Company as on 31.03.2025 stand at Rs.(606.93) lakhs as compared to Rs.(565.99) lakhs in the previous year.

Property, Plant & Equipment:

Property. Plant & Equipment as on 31.03.2025 is Rs. 47.35 lakhs as compared to Rs. 48.94 lakhs in the previous year.

Inventories:

Inventories, as on 31st March, 2025, is Rs. 10.62 lakhs as against Rs. 0.35 lakhs in the previous year. Trade Receivables:

Trade Receivables decreased to Rs. 24.36 lakhs as on 31st March, 2025 as against Rs. 1.50 lakhs in the previous year. These receivables are considered good and realizable.

Cash and Cash Equivalents:

Cash and Cash Equivalents stood to Rs. 1.30 lakhs as against Rs. 1.87 lakhs in the previous year and the balances deposited with banks as Security is 1.22 lakhs as on 31st March, 2025 and Rs.13.24 lakhs in the previous year.

Loans:

Non-current Loans as on 31st March, 2025 is NIL as against Rs. 45.50 lakhs in the previous year. Current Liabilities:

Current liabilities for the F.Y. 2024-25 is Rs. 125.06 lakhs as against Rs. 18.23 lakhs in the previous year.

B. OPERATIONAL RESULTS: Turnover:

During the year 2024-25, the turnover of the Company is Rs.20.64 Lakhs as compared to Rs. 0.45 Lakhs in the previous year.

The Income from other sources as on 31st March, 2025 is Rs.16.14 Lakhs as compared to Rs.23.61 Lakhs in the previous year.

Depreciation:

The Company has provided a sum of Rs.1.71 lakhs towards depreciation for the year as against Rs.1.89 lakhs in the previous year.

Profit after Tax:

The Profit of the Company after tax is Rs. (40.98) lakhs as against Rs. (47.19) lakhs in the previous year.

The total comprehensive income for the year stood at Rs. (40.94) lakhs as compared to Rs. (47.93) lakhs in the previous year.

Human Resource Development And Industrial Relations:

The Company has a team of able and experienced staff and executives and the relation with the employees remained cordial throughout the year. Its management training schemes strive to develop business managers of tomorrow. In house training is given to the employees to induce contribution for enhanced productivity and development program for all levels of employees are being given as the company considers human resources are invaluable asset. As on 31st March 2025. The Company has a total strength of 7 employees.

Significant Changes in key financial ratios as on 31.03.2025.

S.No	Ratios	31.03.2025
1	Debtors Turnover	1.60
2	Inventory Turnover	3.76
3	Interest Coverage Ratio	(5.02)
4	Current Ratio	0.37
5	Debt Equity Ratio	(2.38)
6	Operating Profit Margin	(1.99)
7	Net Profit Margin	(1.99)
8	Return on net worth	(115.34)

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the Companys objective, projections, estimates, expectations may be forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand / supply and price conditions in the domestic and overseas markets in which the Company operates changes in the Government regulations, tax laws and other statutes and incidental factors.

	By Order of the Board of Directors
	Sd/-
	Sreedhar Chowdhury
Date: 08/08/2025	Managing Director
Place: Hyderabad	DIN:00188924
Registered Office:
B-6/3, IDA, Uppal, Hyderabad - 500039.