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.

Considering, the Company was facing pricing pressure with respect to manufacture of pressure dies, fixtures and die casting components for the past many years and consequent losses being incurred each year, the Board at its meeting held on 22 July 2024 had decided not to continue the tool room operations of the Company at its factory. During FY2025, the Company had also implemented Voluntary Separation Schemes for all its factory workers and staff, which had been accepted by all factory workers and staff who have since been relieved from their duties. The CEO and some Finance professionals, at present, continue to be on the rolls of the Company.

Considering, the continuing unviability of manufacturing operations, it was decided to permanently shut manufacturing operations keeping with the Companys main objective of being a Core Investment Company (CIC). Accordingly, after due process, the lease-hold rights in factory land at Satara together with Plant and Machinery were transferred with the approval of the Board on 21 February 2025 for a reasonable consideration.

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.

c) Outlook

The Company will continue to operate as an Unregistered CIC and hold investments in the Bajaj Group entities which deliver remarkable value through dividends and capital appreciation to shareholders.

d) Segment-wise or product-wise performance

During the year, the Company has closed its manufacturing operations. The Company is essentially an investment company. Hence, the Companys business activity falls within a single business segment i.e. investments.

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

During FY2025, the Company had implemented Voluntary Separation Schemes for all its factory workers and staff, which was accepted by all and the factory workers and staff have since been relieved from their duties. As on date, only the CEO and some Finance personnel continue to be on the rolls of the Company.

Status of implementation of the aforesaid VSS along-with financial impact thereof is mentioned in the financial statements.

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:

Considering closure of manufacturing operations, the inventory turnover ratio, Trade receivables turnover ratio, Operating profit margin are not relevant.