Mandeep Auto Industries Ltd Management Discussions

In compliance of Regulation 34(3) and 54(f) read with Schedule V of Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, The Managements views on the Companys Performance and outlook are discussed below:

1. Overall & Business Review:

Presently our Company is engaged in the business of manufacturing and supplying sheet metal components, auto parts, and all types of sprocket gears and machined components, that finds its application in a diverse industry, such as tractor, automobiles, material handling & earth moving equipment, railways, defense, machine tools, DIY industry etc.

In the year 2000, Mr. Gurpal Singh Bedi laid the foundation for a sheet metal component manufacturing unit in Faridabad, Haryana, under his Sole Proprietorship M/s Mandeep Industries. In order to give a corporate structure to the entire set-up, M/s Mandeep Auto Industries Limited was incorporated on April 19, 2023, with the object to take over the entire business and operations of M/s Mandeep Industries. Subsequently, a Business Transfer Agreement was executed on June 30, 2023, by and between Mr. Gurpal Singh Bedi, Proprietor M/s Mandeep Industries and Mandeep Auto Industries Limited.

Our Company is backed by skilled professionals with years of experience in Press and Machining Components and has ISO 9001: 2015 and ISO 14001: 2015 certifications. We also manufacture customized components as per customer specific requirements and use, with high degree of precision both in quality and time with personalized services to our strong customer base in India.

2. Economic Outlook:

The long-term fundamentals of the Indian economy continue to be strong due to rising incomes and large investments. These growth drivers are expected to sustain over a long period of time.

3. OPPORTUNITIES AND STRENGTH:

> Increase geographical presence

We are currently located in Faridabad, Haryana. Going forward we plan to establish our presence in the other regions. Our emphasis is on expanding the scale of our operations as well as growing our supply chain network, which we believe will provide attractive opportunities to grow our client base and revenues.

> Diversify our Product Portfolio

Going forward, we intend to diversify our product portfolio using advanced electronic integration technology and add more products to our portfolio based on our own assessment of market, demand, and supply position. Our Companys strategy is focused towards introducing new product designs to cater to the requirements of our customers as well as garnering the attention of more customers. This helps in strengthening the relationship with the existing customer network through a wide range of products while also onboarding new customers from untapped geographies. Identifying and developing new products and designs is a continuous exercise that our management team engages into as we believe that there is an immense demand in the global markets for unique designs, good quality and competitively priced products.

> Better working capital management

We attract new customers by offering extended credit period to them. This strategy requires a strong working capital position. Hence we intend to raise funds from the IPO and ensure we have available liquidity and resources ensuring better working capital management. We believe that this will widen our available equity capital base and allow the Company to expand its operational levels as well as earn higher margins due to low debt.

> Leveraging our Market skills and Relationships

Our Company believes that our business is a by-product of relationships. This is a continuous process in our organization and the skills that we impart in our people give importance to customers. We aim to enhance the growth by leveraging our relationships and further enhancing customer satisfaction. We plan to increase our customers by meeting orders in hand on time, maintaining our customer relationship and renewing our relationship with existing buyers.

4. THREATS AND RISK:

The Company has taken adequate preventive and precautionary measures to overcome all negative factors responsible for low trend to ensure steady growth.

5. Product wise performance:

The performance of barcode labels & printers depends on a variety of factors, including the quality of the components used, the design and installation of the system. The Company, during the year has given much importance to increase the performance of the products which suits the best for the future operational plans of the Company.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has strong internal control procedures in place that are commensurate with its size and operations. This ensures that all transactions are authorized, recorded and reported correctly. Regular internal audit and checks are carried out to ensure the robustness of the system.

7. FINANCIAL PERFORMANCE:

During the year under review, the Company has total operational Income of Rs. 32,21,68,000/- and the Company has earned profit of Rs. 1,41,01,000/- during the year ended 31.03.2025.

The Board assures that the management will leave no efforts untouched to increase the profitability of the company gradually and to maintain the consistency of attained results in the fourth coming years.

8. COMPETITION:

The automotive component manufacturing industry is very competitive with multiple organized and unorganized players operating in the said Industry. We face fair competition from both organized and unorganized players in the market. Further, there are many large and well-established corporates operating in the same segment as us, who might have better resources than those available to us as well as other economic advantages as compared to our business, owing to which we might face competition from such established players.

We believe that our experience in this business and quality assurance will be key to overcome competition posed by such organized and unorganized players. We believe that we have the potential to compete effectively in the market with our quality of products. We believe that the principal factors affecting competition in our business include client relationships, reputation, and the relative quality and price of the products. We compete with these competitors to enter directly into deals with customers. Our twenty-five plus years of presence in the market coupled with the high quality and vast range of products as well as our product development capabilities, helps us in having a competitive edge in the market. While these factors are key parameters the in-clients decisions matrix in purchasing goods; product range, product quality and product price is often the deciding factor in most deals.

9. HUMAN RESOURCES:

We believe that our employees are key contributors to our business success. We focus on attracting and retaining the best possible talent. Our Company looks for specific skill- sets, interests and background that would be an asset for our business. Our manpower is the prudent mix of experienced and youth which gives us the dual advantage of ability and growth. Our work progress and skilled/semiskilled/unskilled resources together with our strong management team have enabled us to successfully implement our growth plans.

10. CAUTIONARY STATEMENTS:

All statements made in Management and Discussion Analysis have been made in good faith. Many unforeseen factors may come into play and affect the actual results, which may be different from what the management envisages in terms of performance and outlook. Factors such as economic conditions affecting demand/supply and priced conditions in domestic & international markets in which the Company operates, and changes in Government regulations, tax laws, other statues and other incidental factors, may affect the final results and performance of the Company.