Konndor Industries Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian economy continued to demonstrate resilience during FY 2024-25 despite global economic uncertainties, inflationary pressures and geopolitical challenges. Government initiatives focusing on infrastructure development, manufacturing growth, ease of doing business and digital transformation have contributed positively to industrial and economic growth.

The Companys industry continued to experience changing market dynamics driven by technological advancements, evolving customer preferences and increasing competition. The management continuously monitors industry trends and adopts appropriate strategies to capitalize on emerging opportunities while mitigating associated risks.

OPPORTUNITIES AND THREATS

Opportunities

• Growing domestic demand and expanding market opportunities.

• Government initiatives supporting industrial and economic growth.

• Adoption of technology-driven business processes.

• Potential for diversification and expansion into new markets.

• Improvement in operational efficiency through effective resource utilization.

Threats

• Intense competition from existing and new market participants.

• Volatility in economic conditions and market demand.

• Changes in regulatory and compliance requirements.

• Inflationary pressures affecting operational costs.

• Global economic and geopolitical uncertainties impacting business sentiment. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company operates in its principal business segment. The performance of the Company during the year has been discussed in detail in the Directors Report forming part of this Annual Report.

OUTLOOK

The management remains optimistic regarding the future prospects of the Company. The Company intends to focus on strengthening its business operations, improving operational efficiencies, enhancing customer relationships and exploring growth opportunities. With a prudent business approach and effective management strategies, the Company expects to achieve sustainable growth in the coming years.

RISKS AND CONCERNS

Every business is exposed to various risks arising from economic, operational, financial and regulatory factors. The Company has established appropriate mechanisms to identify, assess and mitigate risks on a continuous basis. The management regularly reviews risk management practices to ensure effective control over potential business risks and to safeguard stakeholders interests.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal control systems commensurate with the size, scale and nature of its operations. These systems are designed to ensure safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

The internal control framework is periodically reviewed by the management and the Audit Committee to ensure its effectiveness and adequacy.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year under review, the Company continued its focus on operational efficiency, cost management and effective utilization of resources. The financial performance of the Company is presented in the Financial Statements forming part of this Annual Report. The management continuously evaluates business performance and undertakes necessary measures for improving profitability and long-term sustainability.

HUMAN RESOURCES

Human resources remain one of the most valuable assets of the Company. The Company maintains cordial industrial relations and provides a conducive work environment for employee growth and development. Continuous efforts are made towards employee engagement, skill enhancement and fostering a culture of professionalism and integrity.

CAUTIONARY STATEMENT

Statements made in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could influence the Companys operations include economic conditions, government policies, taxation laws, market demand, competition and other factors beyond the control of the Company. The Company undertakes no obligation to publicly amend, modify or revise any forward-looking statements on the basis of subsequent developments, information or events.

CEO/CFO CERTIFICATION

(Pursuant to Regulation 17(8) read with Part B of Schedule II of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

To,

The Board of Directors KONNDOR INDUSTRIES LIMITED

We, the undersigned, in our respective capacities as Managing Director/Chief Executive Officer and Chief Financial Officer of KONNDOR INDUSTRIES LIMITED, to the best of our knowledge and belief certify that:

1. We have reviewed the Financial Statements and the Cash Flow Statement for the Financial Year ended 31st March, 2025 and that to the best of our knowledge and belief:

a) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

b) these statements together present a true and fair view of the Companys affairs and are in compliance with existing accounting standards, applicable laws and regulations.

2. To the best of our knowledge and belief, no transactions entered into by the Company during the year are fraudulent, illegal or violative of the Companys Code of Conduct.

3. We accept responsibility for establishing and maintaining internal controls for financial reporting and have evaluated the effectiveness of the internal control systems of the Company pertaining to financial reporting and have disclosed to the Auditors and the Audit Committee deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps taken or proposed to be taken to rectify these deficiencies.

4. We have indicated to the Auditors and the Audit Committee:

a) that there are no significant changes in internal control over financial reporting during the year;

b) that there are no significant changes in accounting policies during the year requiring disclosure in the notes to the financial statements; and

c) that there are no instances of significant fraud of which we have become aware involving management or an employee having a significant role in the Companys internal control system over financial reporting.

We further affirm that all Board Members and Senior Management Personnel have affirmed compliance with the Code of Conduct for the Financial Year ended 31st March, 2025.