KPT Industries Ltd Management Discussions

1) INDUSTRY STRUCTURE:

Your Company is known for commitment to excellence and quality. Factory is located at South Western Maharashtra at Shirol- 416 103, Dist. Kolhapur. The state of the art facility is dedicated in bringing up electric power tools, spares, control motors, roots blowers, and battery operated vehicles (E-cart) and many other engineering products.

Professional electric power tools for metal, wood, concrete, the new range of Shakti power tools for artisans to meet their everyday needs, garden tools, blowers for pneumatic conveying system, power plants, steel, effluent water treatment is our specialty over decades.

2) INDUSTRY OVERVIEW:

The engineering sector is the largest of the industrial sectors in India. It accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations. Indias engineering sector has witnessed a remarkable growth over the last few years driven by increased investment in infrastructure and industrial production. The engineering sector, being closely associated with the manufacturing and infrastructure sectors, is of strategic importance to Indias economy. India, on its quest to become a global superpower, has made significant stride towards developing its engineering sector. The Government has appointed Engineering Export Promotion Council (EEPC) as the apex body in charge of promotion of engineering goods, products, and services from India. India exports transport equipment, capital goods, other machinery/equipment, and light engineering products such as castings, forgings, and fasteners to various countries of the world.

3) DEVELOPMENTS:

The Company has very good opportunities because of the long term business relationship with valued customers both domestic and export and also in time supplies, superior quality products.

The Company continues its drive for sustainable growth in this growing domestic and international engineering industry. Considering the good distribution network, Company has poised for good growth.

4) OPPORTUNITIES AND THREATS:

For detailed explanation kindly refer Point No. 25 of the Boards report.

5) SEGMENTWISE & PRODUCTWISE PERFORMANCE:

KPT continues to do better in all the segments it operates, viz. power tools, blowers & e-vehicles.

6) OUTLOOK:

Since the fuel prices are on rise and likely to continue, the scope for e-vehicles shall be on rise as well.

7) RISK AND CONCERNS:

For detailed explanation kindly refer Point No. 30 of the Boards report.

8) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

For detailed explanation kindly refer Point No. 35 of the Boards report.

9) DISCUSSION ON FINANCIAL & OPERATIONAL PERFORMANCE:

For detailed explanation kindly refer Point No. 1 & 2 of the Boards report.

10) DEVELOPMEMTS IN HUMAN RESOURCE, INDUSTRIAL RELATIONS FRONT , WORKERS EMPLOYED & THEIR WELFARE:

At your Company, we continue to provide a growth & innovation orientated environment. Continuous steps are taken to assure steady progress of the work force which ultimately will lead to the organization success. So, we consistently aim to provide a sustainable, work friendly environment for learning & educating our employees, right from joining stage followed by retention & retirement. There are 225 workers employed.

11) KEY FINANCIAL RATIOS:

I n accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, the Company is required to give details of significant changes (changes of 25% or more as compared to immediately previous financial year) in financial ratios are as follows: