Maharashtra Scooters Ltd Management Discussions

a) Industry structure and developments

Maharashtra Scooters Limited (‘MSL or ‘the Company) continues to be an Unregistered Core Investment Company (CIC). As a CIC, a minimum of 90% of its assets stand invested in the Bajaj Group and the balance representing accumulated surpluses, is invested in debt and other instruments with the sole objective of earning a reasonable rate of return whilst protecting the principal.

The opportunity in manufacturing of pressure dies, castings, jigs and fixtures, primarily meant for two and three - wheeler industry amongst other industries, which is the current manufacturing activity of the Company has been challenging in the past year and is expected to be so despite the expansion in the customer profile from auto component to Telecom segment, Generator segment, Electrical Vehicle segment and LED Light parts.

b) Opportunities, Threats, Risks and Concerns

Being a CIC, MSL continues to remain strategically invested in the securities of its group companies and hence any fluctuations in stock market prices are not of concern. As far as investments in debt securities are concerned, MSL invests only in highly rated issuers and securities i.e. in AAA, AA+ and the like rated papers. The Companys business of manufacturing pressure dies, fixtures and die casting components continues to face pricing pressure and sustainable profitable demand.

c) Outlook

As a CIC, the Company continues to hold investments in the Bajaj Group which has delivered remarkable value through dividends and capital appreciation to shareholders which it intends to continue to do so. As regards the insignificant manufacturing activity of the Company, which continue to operate at a loss, the management is reviewing the prospects of continuing the unviable manufacturing activity with a possibility of discontinuance.

d) Segment-wise or product-wise performance

There being two reportable segments, segment-wise information is given under Financial Statements.

e) Internal control systems and their adequacy

The Company has effective internal control systems, which have been found to be adequate by the Management of the Company. The Internal Auditors periodically bring to the attention of the Audit committee any deficiencies and weaknesses in the internal control systems, if any. The Audit Committee reviews and monitors the remedial actions to ensure its overall adequacy and effectiveness.

f) Discussion on financial performance with respect to operational performance

The details have been furnished in the Directors Report to the Members as well as in the Financial

Highlights included in the Annual Report.

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

MSL had earlier entered into an agreement with the workers union on 24 December 2019, for the wages and service conditions in respect of daily rated workmen employed at Satara / Pune. The agreement was valid for a period of three and half years i.e. from 1 October 2019 upto 31 March 2023. The Company had entered into a fresh wage agreement with the workers union on 10 January 2023, which is effective from 1 April 2023.

As at the end of 31 March 2024, the Company had 25 permanent workers, 49 permanent staff and 13 trainees.

With a view to rationalise the existing operations and manpower at its Satara factory, considering lower demand for its products and increased competition, the Board at its meeting held on 24 April 2024 has approved a Voluntary Separation Scheme for daily rated Workmen and Staff. The Scheme will be opened from 2 May 2024 to 20 May 2024.

Status of implementation of the aforesaid VSS along-with financial impact thereof will be intimated to stock exchanges in due course of time. h) There are no material financial and commercial transactions, where the Management has personal interest, which may have a potential conflict with the interest of the Company at large.

i) Significant changes in financial ratios:

Particulars	Ratio in 2023-24	Ratio in 2022-23	% Change Over 2022-23	Remarks
Inventory Turnover Ratio	1.47	1.87	-22%	Inventory turnover has reduced due to higher work in progress in FY2024.
Trade receivables Turnover Ratio	2.63	2.10	25%	Higher trade receivables turnover ratio due to lower trade receivables during FY2024.
Current Ratio	21.73	20.69	5%	Higher current ratio is due to increase in current investments.
Net Profit Margin (%)	89.16%	89.68%	-1%	-
Operating profit margin (%)	-92.82%	-40.44%	130%	Operating loss has increased due to decrease in turnover and increase in other overheads.
Return on equity (%)	0.87%	0.93%	-7%	-