Jeet Machine Tools Ltd Management Discussions

Annexure IV

The following Management Discussion and Analysis Report has been prepared in accordance with the Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 with a view to provide an analysis of the business and financial statements of the Company for the F.Y. 2025-26, hence it should be read in conjunction with the respective financial statements and notes thereon. Management assumes full responsibility for the integrity, objectivity, and accuracy of these financial statements. All key estimates and judgments were made prudently and reasonably to ensure the statements present a true and fair view of the Companys financial position and performance for the year. Investors are cautioned that this discussion contains forward looking statements that involve risks and uncertainties.

Business Overview:

Jeet Machine Tools Limited, established in 1984, has built a reputable legacy in the manufacturing, trading, distribution, export, and import of heavy fabricated metal products and machinery, along with their component parts. The company has carved out a niche in providing robust technical solutions and heavy machinery that cater to a diverse international market.

Jeet Machine Tools Limited has extended its reach to several countries, including Sri Lanka, Nepal, Bhutan, Germany, Bangladesh, Dubai, and Kenya, underscoring its capacity to meet various industrial needs and standards across the globe. This extensive network not only demonstrates Jeet Machine Tools Limiteds prowess in navigating complex markets but also highlights its commitment to quality and customer satisfaction in the heavy machinery industry.

Business Outlook:

The Company has earned profit of Rs. 290 Lakh in the financial year 2025-26. This is on account of the increase in total income resulted from the sale of the companys Industrial Gala situated at C.T.S. No. 837 (Part), Village Mohile, Mumbai, admeasuring approximately 1,459 square meters. The management of the Company is focusing on strengthening its core business activities.

Internal control system and their adequacy:

We maintain an adequate and effective internal control system tailored to our size, business scope, and operational complexity. These control procedures protect company resources, maximize efficiency, and ensure compliance with internal policies and statutory regulations. Additionally, independent auditors regularly review cross-divisional transactions to evaluate and strengthen our internal controls. The Audit

Committee also meets the Companys Statutory Auditors to ascertain their views on the financial statements, financial reporting system, internal control system and compliance to accounting policies and procedures.

Risk Management:

The Board of Directors of the Company has designed a Risk Management Policy and Guidelines to avoid events, situations or circumstances which may lead to negative consequences on the Companys businesses, and define a structured approach to manage uncertainty and to make use of these in their decision-making pertaining to all business divisions and corporate functions. The Companys success hinges on effectively navigating significant risk areas, including input cost pressures, rising wages, skilled manpower shortages, potential contract execution delays, and the cascading impact on cash flows

Key business risks and their mitigation are considered in the annual / strategic business plans and in periodic management reviews.

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

The Company places a strong emphasis on training and skill development initiatives to enhance employee capabilities and consistently engage its workforce. The Company regards its human resources as its most valuable asset and acknowledges their pivotal role in the Companys growth journey. The Company advocates for equal opportunities and encourages competitiveness to unlock the full potential of its workforce. The HR department responds to varied human resources needs of the Companys business to enable the human strategic advantage.

Discussion on financial performance with respect to operational performance:

- Total net sales for the year were Rs. 7 .2 6 Lakhs as compared to Rs. 8.50 Lakhs in 2024-25.

- Total profit earned for the year was Rs. 290 Lakhs as compared to Loss of Rs. 52.30 Lakhs in 2024-25.

Opportunities and Threats:

Growing Domestic Market: Indias large and expanding domestic market provides ample opportunities. Also, due to changing demographics and economic conditions in India, coupled with rigorous competition, the machinery business is set to grow in the years to come. Global trade tensions and a sluggish global economic outlook pose potential headwinds for Indias growth. The Company is exposed to specific risks that are particular to its businesses and the environment within which it operates, including competition risk, interest rate volatility, human resource risk, execution risk and economic cycle.

Outlook:

Going forward, technology will also be one of the key differentiators for driving revenue & profitability. These discussions led to the development of our long-term strategy along with an action plan that would help us exploit the available opportunities and measure progress against key milestones and take corrective action when required.

Key Financial Ratios:

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations 2018, the Company is required to give details of significant changes (changes of 25% or more as compared to the immediately previous financial year) in key sector-specific financial ratios.

The Company has identified the following ratios as key financial ratios:

Sr No.	Ratio	Numerator	Denominator	FY 2025- 26	FY 2024- 25	Reason for Variance
1.	Current Ratio	Current Assets	Current Liabilities	8.08	0.57	-
2.	Debt Equity Ratio	Total Liabilities	Shareholders Equity	NA	NA	NA
3.	Debt Service Coverage Ratio	Net Operating Income	Debt Service	NA	NA	NA
4.	Return on Equity Ratio	Profit for the period	Avg. Shareholders Equity	(0.17)	(0.21)	-
5.	Inventory Turnover Ratio	Cost of Goods sold	Average Inventory	NA	NA	NA
6.	Trade Receivables Turnover Ratio	Net Credit Sales	Average Trade Receivables	NA	NA	NA
7.	Trade Payables Turnover Ratio	Total Purchases	Average Trade Payables	2	NA	NA
8.	Net Capital Turnover Ratio	Net Sales	Average Working Capital	0.02	(0.10)	-
9.	Net Profit Ratio	Net Profit	Net Sales	-760%	-507%	-
10.	Return on Capital employed	Profit before Interest and Taxes	Capital Employed	-5%	-22%	-
11.	Return on Investment	Net Profit after Tax	Total Equity	NA	NA	-

 

For JEET MACHINE TOOLS LIMITED

Sd/-

KAWALJIT SINGH CHAWLA

MANAGING DIRECTOR

DIN: 00222203

Place: Mumbai