Kaiser Corporation Ltd Management Discussions

Global growth is projected to moderate at an estimated 3.1% in 2024 however it has come down to 2.8% world wide except India and it is lower than the historical annual average of 3.8%. The lower growth in 2023 is due to the rising central bank rates to combat inflation and the war in Ukraine which is still going on. Emerging market and developing economies are expected to recover in 2024 and 2025, but considering the overall unrest going on in different parts of the world it looks very much difficult. The growth rate for emerging market and developing economies is expected to increase marginally, from 4.0% in 2023, to 4.2% in 2024. However, half of these economies will have a slower growth rate in 2024 compared to 2023. Chinas growth rate is estimated at 5.2% in 2023, while Indias growth is projected to decline, from 6.8% in 2022 to 6.1% in 2023, before rebounding to 6.8% in 2024, but as per IMF the Indian Economy is going to be the fastest Economy in the world.

INDIA ECONOMIC OVERVIEW

India Economic Outlook Indias economy recovered quickly from the pandemic and further growth is expected to be supported by solid domestic demand and increase in capital investments. The International Monetary Fund (IMF) and Reserve Bank of India (RBI) estimate real GDP growth of 6.8% in 2022-23 and 6.1% in 2023-24 to 7.00% in 2025. The agriculture sector has been growing at an average annual rate of 4.6% over the past six years, and the industrial sector is estimated to grow at 5.9% in FY 2024-25. Overall, the various budgetary allocations signal the Government?s determination to accelerate economic growth and create a more prosperous and resilient India.

COMPANY OVERVIEW

Kaiser Corporation Limited through its subsidiary is actively involved in manufacturing of specialized Electronic and engineering services to Pipe, Power plants and Electronic heat industries in India and abroad. The Company through its subsidiary Xicon International Limited is service oriented company which excels in Turnkey projects and systems. The Companys subsidiary Xicon International Limited is offering services to various domestic and international companies and Corporations like BHEL, TATA Power Projects, ONGC, Linde, Indian Oil, Bharat Petroleum,and various other Multinationals.

OPPORTUNITIES, STRATEGIC RESPONSES AND THREATS

Greatest interest in using Technology to drive business growth and accelerated adoption of Public Cloud and great acceptance of E-Service platform. Overall business activities post pandemic has increased with great opportunities but still the industry has not recovered fully on domestic and international level and the effect of full revival will be reflected after six months.

THREATS

Many established businesses and new entrants vying for market share in the industry, which is marked by a high degree of competitiveness. This results in strong pricing intensity, diminished pricing power, and increased marketing and advertising expenditures. Changes in economic conditions, such as inflation or recession, can have a detrimental effect on consumer spending and the demand for the products. This can result in decreased sales and revenue for businesses within the industry.

SAFETY AND HEALTH

Health and safety continues to be one of the most important values at Kaiser with its subsidiary. The Company has a comprehensive approach to ensure that all employees, associates, assets and the environment are protected from harm to achieve Target Zero Harm. It has adopted a proactive approach to health and safety management, which includes creating policies and procedures to promote safe working practices and providing appropriate training to employees.

Additionally, the Company is also ensuring that it has the right systems in place to monitor performance and identify potential risks before they become an issue. By taking these steps, TCL ensures that its commitment to Target Zero Harm? is met. The Company has a Board-level Safety, Health, Environment and Sustainability policy.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

There is adequate internal control system in the company through internal Audit and regular operations review with highest and most ethical standards of Quality, Technical Expertise, Consistency and Customization imparted through the experience, training, knowledge and innovative process implementation providing value for money to customers regularly.

The Company through its subsidiary understands the challenges of coping with quality based pricing and helping to meet the objectives in time and on budget.

Periodical physical verification of stocks during the year and adjustment of discrepancies betweenlhephysicalverificationandlhebooksarerecordedappropriately.

FINANCIAL PERFORMANCE WITH RESPECTTO OPERATIONAL PERFORMANCE

The discussion in this section relates to the Consolidated Financial Reports pertaining to the year that ended on 31st March 2025. The Financial Statement of the Company with its subsidiary is prepared in accordance with Ind AS (Referred to as Accounting standards)as prescribed under Section 133 of The Companies Act 2013. Proper Accounting policies while preparing Financial Statements are disclosed in notes to accounts.

Your Companys consolidated total income was to the tunc of Rs. 2173.801akhs compared to the consolidated income of Rs. 2592.26 lakhs for the year and the net loss of Rs.196.77 lakhs compared to the net Profit of Rs. 55.73 lakhs for the previous year.

STANDALONE

The standalone total income was to the of Rs.73.25 lakhs compared to the stand alone income of Rs. 62.62 lakhs for the previous year.

HUMAN RESOURCES

Frequent communication by Directors and team connects, rewards & recognition, and policy/process changes were in place to keep the employees engaged and motivated. Putting employees safety and well being is a key to the success and growth of The Company. The Company aims to attracts, develop, motivate and retain diversified talent which is critical for success of the Company. The Company through its Subsidiary?s talent management strategy seeks to maximize the potential of every employee by creating purpose driven, inclusive, stimulating and rewards work environment while fueling business growth.

RISK MANAGEMENT FRAMEWORK

The Company has constituted a robust governance structure consisting of five levels, thereby ensuring both bottom-up and top-down approaches. The Companys approach to risk management is designed to provide reasonable assurance that its assets are safeguarded, and the risks facing the business are being assessed and mitigated.

Geo- political situation like Russia-Ukraine war has forced global businesses to revisit their operations, delivery, supply chains and contractual aspects. To safeguard the interests of its stakeholders, the Company has implemented a comprehensive risk management framework to identify, analyse and manage business risks. The foundation for kaiser?s risk management and governance is a strong and well-built internal financial control system. The Companys risk management framework focuses on ensuring that risks are recognised and managed in a timely and reasonable manner from a top-down to the bottom-up approach, and is kept flexible to adapt to evolving business requirements

ENHANCING SHARE HOLDER S VALUE

You company continue to look for ways to achieve greater business success. Whether the measure is growth, profit, return on investment, market share, or another similar way,and this means increasing shareholder value. With the concept of the value delivery process solidly in mind, your company increases shareholder values for time to time.

CAUTIONARY STATEMENT

This document contains statements about expected future events, financial and operating results of your Company, which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. Readers are cautioned not to place undue reliance as several factors could cause assumptions, actual future results and events to differ materially from those expressed. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred to in the management?s discussion and analysis of Kaisers lntergrated Annual Report F.Y. 2024-25