McNally Bharat Engineering Company Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The world has been in turmoil since last few years. We lived through the West Asia and Ukraine war zones and with the new Trump Government in America we witnessed a line of tariff wars. As the global conflicts escalates with US putting tariffs on China and stressing on manufacturing in America, we had a severe blow in Jammu & Kashmir (J&K) with an inhuman terrorist attack. This will be a decisive year for the world at large. After the attack, India has stepped back from the Indus Water Treaty and curtailed diplomatic relations. It remains to be seen, how India responds to its hostile neighbor. Situation in J&K was brought under control and tourism was flourishing in the past 2-3 years. However, at the same time Pakistans political and economic condition was deteriorating with an insurgent Baluchistan. In such a state a desperate attempt to attract world attention by Pakistan will have severe consequences not only for them but the whole world.

The war in West Asia escalated with the Israel waging war on Iran after it attacked terrorist outfits in Syria and Lebanon. Israel attacked the nuclear and military facilities in Iran. After 1980s this was the first time direct confrontation war between Iran and Israel. The de-escalation happened after US backed Israel in the war.

While we have a severe tension globally where US, China, Korea, Japan are financially and demographically on a decline, our neighboring countries of Nepal, Bangladesh and Sri Lanka are also in dire straits. Indian economy on the contrary has had a fabulous year with a 6.5% growth rate. While continuing to grow our country is a favorable place for US companies with Apple recently announcing manufacturing in India. We shall have investments pouring in this year as well. However, it remains to be seen how the world responds to the uncertainties it shall face and how it impacts our sub-continent.

As per RBI, in 2025-26, prospects of agriculture sector remain bright on the back of healthy reservoir levels and robust crop production. Manufacturing activity shows signs of revival with business expectations remaining robust and the services sector resilient. The RBI reports that headline inflation moderated during last quarter following a sharp correction in food inflation. The prospects for food inflation have turned decisively positive. Indias services exports remained resilient driven by software business and transportation services in January-February 2025. As per the central bank the liquidity buffer is well above the regulatory threshold in the banking system. Profitability indicators are also healthy reflecting robust operational efficiency of the system. Similarly, the system- level parameters of NBFCs too are sound.

As per the World Trade Organizations (WTOs) assessment, the immediate impact of tariffs on world trade is expected to be substantial as, global merchandise trade volumes could contract by around 1% in 2025, owing to new tariffs announced by the US along with those introduced at the beginning of the year. Much of this decline is expected to be driven by an 80 per cent fall in the bilateral trade between the US and China. However, for India the impacts on tariffs will be quite low considering just 2% exports to the US market. Nevertheless, there could be diversion

of Chinese products through Vietnam, Thailand etc. when the doors of US close and would find dumping grounds in India. To safeguard domestic producers we recently saw safeguard duty of steel and similar policies will be witnessed in other sectors.

Growing policy uncertainty and tariff war escalation are weighing on global economic prospects amidst fears that the combined effect of tariffs and expected retaliations will intensify headwinds for global growth. Against this backdrop, estimates of global GDP growth, inflation and trade are likely to be revised downwards. Our model- based nowcasts also point to a significant deceleration in global growth momentum in Q1:2025 (refer Chart below).

Trade and policy uncertainties have started to impact

Sources: CEIC : and RBI staff estimates

consumer sentiments across geographies. Consumer sentiments worsened in the US in March 2025, reaching their lowest level since November 2022, on account of surging inflation expectations, worsening business conditions and uncertain economic outlook on account of tariff escalations. Eurozone also witnessed weakening sentiments, while it improved marginally in the UK and Brazil.

COMPETITIVE ADVANTAGE, EXTERNAL VIEW & INTERNAL VIEW

Every year brings a new challenge and as the focus of the organization changes, we need to factor in the internal and external factors which impact our business. We had

in the past made explicit analysis of our competitive advantage and we had seen a volatile world with our own restructuring taking shape. At the cusp of the revitalization as a new investor attempts to spearhead the Company, it is time to reflect on the same once more.

However, that been said we must factor in disruptions happening in the world. While we have diagnosed the economic patterns above, we must also reflect on the other patterns. One of course is a volatile and war-torn global landscape, but another more important change happening is the interconnected world with the internet, social media and the impact of Artificial Intelligence. The third is sustainability solutions. We must acknowledge that this will have a tremendous impact on all businesses and hence we shall reflect on each of the segments here with these there in mind. Furthermore, it is important where the focus of the organization is, internal or external and this year we shall swing towards the external.

COMPETITIVE ADVANTAGE

1. Technology prowess: The pedigree of your Company has been design & engineering based products and solutions. This has enabled it to wade through the toughest times in sectors like bulk material handling, beneficiation etc.

The Internal View:

The attrition in the engineering workforce and the depleting orderbook had led to certain unexploited strengths of the Company. The Company shall focus on regaining its position as a market leader with strong marketing efforts and fund infusions. It will also take steps to attract best talent in the industry to regain this position.

Impact of War:

Your Company operates in a domestic market while it also has access to international markets. In the present scenario it should service engineering services abroad and tread carefully for any supplies considering the nature of the world. However, the domestic market is an open field with competition not so high in the band where your Company would like to operate. This shall certainly enable the Company to expand rapidly.

Impact of AI:

Most core sector companies have not exploited this in its products and services. Some international competitors are however, leveraging this power. Being an EPC player, there is a strong impact which may come in terms of the process technology we offer to customers and how this can be differentiated with application of AI and your company shall have this in mind in the coming years.

Impact of Sustainability:

Your Company has technology in most mineral sectors and this enables it bring forward sustainable solutions as in mineral beneficiation, bulk material handling, switchyards, BOP, water etc. As the world moves towards clean energy your Companys technological prowess shall be strengthened. There will be a need to bring specific collaboration in green energy and updating the technology it possesses which shall be an endeavor in the long run.

2. Project Management & References: A strong project management ability has enabled your Company to have some of the largest references in power and material handling sectors. It also forayed into a 100 MW solar power project with a successful completion of construction and O&M period.

The Internal View:

The cashflow monitoring of legacy projects, efficiently completing new projects and bagging new orders are essential for survival and growth of the organization at this crucial stage. The hive off of the manufacturing units did deplete the control of critical lead equipment like ball mills etc. in project control and shortening lead times due to our own manufacturing units. However, over the last 5 years your organization has had an excellent vendor base and an equally commendable sub-contractor base. A strong Supply Chain Management team enables it to overcome this element. Its excellent procedures and SOPs in this area will be crucial to future success and spearheading the business.

Many of the references are now old, but the coal handling project references and some delayed projects have enabled fresh references still live for bidding in new projects. It shall be crucial for bringing new orders to continue this pipeline.

Impact of War:

Your Company operates in a domestic market while it has also access to international markets. In the present scenario it shall not undertake construction in war torn nations, and selectively tread with proper financial and contingencies factored in. However, the domestic market is an open field with little competition which shall enable us to expand rapidly.

Impact of AI:

Your Company, unlike most competitors, have already a risk management system for pre-bid and post bid projects powered by an AI algorithm based on random forest which helps categorize risks. The system brought in by KPMG in 2010 was transformed in-house and used as per need by an excellent project management team. This will be a platform to automate project management tasks and bring analysis with power of AI.

Impact of Sustainability:

Your Company has project references in sustainable sectors like water, solar, mineral beneficiation. Further,

it has also collaborators in multiple countries where disruptive technologies can be brought in to India and licensed. With an excellent adaptive project management skill base this can generate value. Your Company is watching battery storage system projects, data centre projects, railway electrification, green steel etc. which are adjacent technology areas. Your Companys construction also is aware of the use of sustainable material which we bring as value add to customers through our integrated project management in EPC segment.

3. Operation and maintenance: This has been a constant sustainable business and fuelling and supporting bad patches of your Company. This shall be a focus area and area of improvement in coming years.

The Internal View:

There is a strong O&M team and your Company is confident to grow leaps and bounds in this segment.

Impact of War:

Your Company operates in a domestic market while it has also access to international markets. In the present scenario it has no projects abroad and is immune from such impacts.

Impact of AI:

While this will be an area where prescriptive and predictive maintenance will be disrupted, your Company is already providing condition monitoring solutions in this segment through our skilled force. Your Company shall build products in this area to increase the value add to the customer. However, an opposing element i.e. "peoplecentric" solutions is also rising, and your Company is aware of this and working towards skilling people.

Impact of Sustainability:

The O&M segment has always followed safety protocols and bring efficiency to clients a key element of sustainability. It shall follow this patch with stronger commitment in the future.

4. Culture & Technology Absorption: Your Company has been one of the favored places to work, with a healthy work culture characteristic of McNally Bharat. We shall improve upon this and becoming the market leader in EPC segment, shall be our aspiration.

The Internal View:

The Company unlike other competitor respects design and engineering as the core. Its construction prowess is a supplement as it has always been. While competitors have construction as the core. This differentiation brings a unique DNA to your Company. However, the past years, due to financial stress, have had an impact on the culture too. Hard steps are needed in stringent phases which do appear to be of a different kind but your Company is committed to keep the culture elements bound even in the hardest times.

Your Company, with its unique culture, has embraced and infused technology in mining, mineral processing, ports and material handling sectors. This shall be a major driver for its growth.

Impact of War:

Your Company has been immune to any war elements due to its strategic positioning and cultural quotient. This will remain a strength in coming days. However, many of its collaborators do exist globally and it shall be crucial for it to keep strategic relationships with them and renew them strategically. A key element shall also be to build new technology partners.

Impact of AI:

Your Companys culture has enabled it to embrace and absorb technology disruptions in the past. The impact of AI shall be new embrace. However, that been said we are aware of the impacts it may have on the business and we shall formulate policies to leverage this impact.

Impact of sustainability:

Your Companys culture enables it to remain sustainable and bring sustainable solutions to the country. The culture shall enable to do this in the future.

THE EXTERNAL VIEW

Your Company will emerge from Insolvency and be an unlevered company. While this is definitely a silver lining, how to sustain in the competitive market shall be enabled by key drivers.

Impact of War:

The need for steel shall increase fuelled by war. Your Company has excellent references in this segment with key projects in SAIL, TATA, RINL, NMDC etc. As the wars rage, metals industry shall also grow and our solution are present in these sectors. Though war is uncalled for and the Company does not view it as a necessary condition, the external world shall be driving the need for metals exponentially due to the present world scenario.

Impact of AI:

The AI driven economies shall call for the creation of data centers. Your companys construction abilities shall open this space for growth. The company also can leverage its services with AI. There is a huge shortage of workmen due to socio-demographic changes. Leveraging AI shall be a key element of success in the EPC segment.

Impact of sustainability:

While the war across the globe is an anti-sustainability condition, construction is the exact opposite. While wars shall break nations and societies, our services shall rebuild the lost. Your Company shall play a key role in building a sustainable world.

STRENGHTS, WEAKNESSES, OPPORTUNITIES AND THREATS

STRENGHTS:

1. Resource Mobilization: Ability to deploy resources all over India to execute large scale projects in sectors like power, steel, cement etc. with multidisciplinary engineers, supervising personnel and highly skilled or semi-skilled workmen.

2. Supply Chain Partners & Vendor Development: Large vendor base for construction material and other supplies like proprietary equipment, for last few decades working as partners. Even in the financially constrained times, these partners have stayed with this Company and since last 6 decades of its existence, such partners have been created through a strong vendor development process. The Company has a strong vendor development process in place.

3. Quality & Safety: In house NABL accredited QA laboratory and a QA/QC department with highly qualified and experience engineers. It has its inhouse Quality Assurance and Safety teams.

4. Arbitration claims: The Company being an EPC has no physical assets but arbitration claims remain as a contingent asset at various stages.

WEAKNESSES:

1. The Company is unable to bid in tenders as the approved Resolution Plan is yet to be fully implemented and the Company does not have the requisite working capital facilities. Many tenders are restricting companies in NCLT proceedings to participate.

2. The Company has lost substantial good talent during the last 4-5 years of financial stress.

OPPORTUNITIES:

1. The Company offers an open playing field as most of its competitors are weak or vanquished with a handful of players in EPC market space in this same band.

2. Huge infrastructure growth in India is expected where the Company shall play a major role as an engineering and technology house.

3. Most companies in NCLT do not have live project references. This Company has just completed Rs. 1100 Cr. CHP projects which shall be a basis to bid in more projects in the coming years.

4. The Company enjoys the patronage of satisfied customers such as NTPC, GSECL, CIL etc who are highly satisfied with the commitment and sincerity with which the company had been executing the projects even in the toughest times to maintain its legendary reputation.

THREATS:

The Company entered Corporate Insolvency Resolution Process (CIRP) under IBC on 29th April 2022, which posed a threat to its survival. However, a fast and agile resolution professional team with help of lenders has enabled it to overcome this threat and hope for the successful implementation of the Resolution Plan of BTL EPC Limited (the "Successful Resolution Applicant/ SRA") approved by the Honble NCLT on 19th December 2023, for the resuscitation of the Company as a "going concern". The Company is on the verge of completing implementation of the Resolution Plan.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Steel

Tenders in pipeline, order backlog and outlook.

Power

Tenders in pipeline, order backlog and outlook.

Port

Tenders in pipeline, order backlog and outlook. Infrastructure

Tenders in pipeline, order backlog and outlook.

Bulk Material Handling

Tenders in pipeline, order backlog and outlook

OUTLOOK & BUSINESS STRATEGY

Your Company has been successful in restructuring through NCLT and with the Successful Resolution Applicant having an NCLT award in December 2024 and payments under the Resolution Plan substantially remitted, the handover is expected during the current financial year. With the new debt-free company, its strategy will be focused on:

1. Marketing: The Company will strongly focus on marketing for new order bookings in private and public sectors. Most orders are through a tender process and teams will identify and choose tenders with maximum chances of winning. Requisite finances and non-fund based sources are being mobilized to achieve success in winning tenders. An approach to bring order with trust and relation based connects is also being pursued.

2. Talent: The Company is formulating a talent-training and retaining strategy for sustainable growth. Balanced approach of size and remuneration with incentives shall be key elements of this strategy.

3. Technology: Your Company, being technology driven, would have a focused approach to reignite relationships with collaborators and technology suppliers. It will also focus on building new partnerships.

4. Efficiency: The Company will aim to work in a frugal way and shall remain cost sensitive for the next few years considering the stress it has gone through.

RISKS & CONCERNS AND RISK MANAGEMENT

Over the next few years, the supplier risk management shall be made robust and the lost credit line, tried to be regained.

The risk management system architecture covers from initiation of tender, bid decision and transfer of the risks envisaged to the project execution team. For the other operational and fraud risk control the Internal Audit team has already commenced the process and its integration with the Enterprise Risk Management (ERM) is underway.

As an improvement of the risk management system, supply chain risk has been developed in further detail.

This coupled with the Oracle Cloud Infrastructure (OCI) Analytics Solutions to capture macro risks like commodity price variations, WPI Indices which impact our projects can be a great asset and intellectual property for the Company. This digital transformation to the Cloud opens opportunities to create value with data enabled solutions and also increasing operational efficiencies by monitoring the Key Performance Indices (KPIs) of the Company.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a detailed well spelt internal control system in place to ensure that all financial, commercial and legal transactions are fully authorized, recorded and correctly reported. The Audit Committee of the Board of Directors, chaired by an experienced Independent Director, reviews the adequacy of the Internal Control System. The Companys Internal Audit Department is in charge for periodically carrying out detailed audit of the transactions of the Company at various project sites, manufacturing locations and offices to ensure that recording and reporting are adequate and as per the policy of the Company. The Internal Auditor conduct physical verification of the Companys assets and ensures that there is no unauthorized usage. The assets are kept in proper conditions and are covered under adequate insurance.

Business strategy of the organization has guided the formation of the Enterprise Risk Management (ERM) for the Company. The process started two years back and is under implementation. Considering the flexibility and execution requirements for a projects driven company the system is being continuously re-evaluated to establish a robust system. The focus will now work as a partner to major expansions in the core sector for clients and hence the EPC outlook to minimize cost will be replaced by an outlook to add value with time saving and environment friendly solutions.

The risks are broadly categorized into Strategic, Operational, Financial (Compliance & Reporting) & Hazardous Risks. The components of Enterprise Risk Management include:

a) Entity level controls

b) Process Risks & Controls

S Internal controls over financial reporting

S Operational controls

S Fraud risk controls

c) IT General Controls

Entity level & IT General controls are being followed as per standard practice of EPC business.

For the rest of the components, the Implementation of ERM is divided into phases as below:

Phase I: Implementation of Internal controls over financial reporting

Phase II: Implementation of operational & fraud risk controls

The Companies Act, 2013 mandated Indian Companies to implement internal controls over financial reporting effective from 01st April 2018. The Management has documented all key finance and business processes impacting financial reporting, tested the key controls for adequacy and operating effectiveness during the financial year 2024-25.

Since majority of the business is in Projects, a project risk management framework has been implemented in the ERP and being monitored periodically for all new projects on the ERP. The risk framework captures Strategic, Operational, Financial and Hazardous risks. This is supported by an issue management interface.

FINANCIAL AND OPERATING PERFORMANCE

The details of financial performance with respect to operational performance have been provided in the

Boards Report under section 134 of the Companies Act,

2013.

Major projects under execution during the financial year

include:

Lime & Gypsum portion of CHP, LHP & GHP Plant for 3x250 MW TPS at Bongaigaon of NTPC - B020

Commissiong of Coal Handling Plant.

Ash Handling Plant for 2x660 MW at Mouda (Stage II) of NTPC - A374

Ash Handling Plant for 3x800 MW at Kudgi of NTPC - A377

Ash Handling Plant for 2x250 MW at Bhavnagar of M/s. BECL - A369

Limestone Milling and Conveying System for 2x250 MW at Bhavnagar of M/s. BECL - A370

Water Pre-Treatment Plant Package for Barh Super Thermal Power Project Stage -II(2X660 MW) - W013

CW & Make up Water Package for 2x600 MW at Nabinagar of NPGC - W024

RMHS PROJECT FOR 3.0 MTPY STEEL PLANT OF M/s NMDC at NAGARNAR - P039

Residential Accommodations for DGMAP at Jammu and Udaipur - T007 & T008

Major O&M Projects under execution by the Company include: Name of Customer	State	Details of the project	Tenure of the Contract
HPCL Mittal Energy Ltd.	Bhatinda, Punjab	Pet-Coke Handling Plant	31.12.2025
KSK Mahanadi Power Co. Ltd.	Akaltara, Chattisgarh	Coal Handling Plant	Concluded on 30.06.2025
Jindal Stainless Ltd.	Duburi, Jazpur, Odisha	Ash Handing Plant	31.12.2025
Adani Infrastructure Management Services, Kawai	Kawai, Rajasthan	Coal Handling Plant	31.12.2026
Kurmitar Iron Ore Mining Pvt. Ltd.	Kurmitar, Odisha	Iron Ore Handling	Extended till 30.09.2025
Adani Infrastructure Management Services, Tiroda Growth Centre	Tiroda, Maharashtra	Coal Handling Plant (only maintenance)	31.03.2027
Andhra Pradesh Power Generation Corporation Ltd.	Tadipatri, Anantapur, Karnataka	100 MW Solar Power Plant	Concluded on 31.01.2025
Orissa Coal & Power Ltd.	Manoharpur, Odisha	Coal Handling Plant	Concluded on 31.12.2024
OCPL a/c BGR Mines & Infra Ltd.	Manoharpur, Odisha	Coal Handling Plant	31.12.2025 (to be extended till 31.12.2028)

Very recently, the organisation has been successful in securing two major 3-year O&M contracts:

?–  Adani Raipur CHP - Site mobilised from 01.04.2025

?–  Adani Kurmitar - Site is expected to be mobilised

from 01.10.2025

The organisation has been booking sustained profits in this business domain with appreciable list of satisfied customers including the Adani Group, where the presence is formidable. Efforts are already under way for scaling up the business volume by 50% within the next financial year. However, major constraint remains in the area of Commercial Qualification for PSU tenders and the ban on MBE from Mahanadi Coalfield Ltd. Hopefully, issue pertaining to Net Worth, Insolvency and Working Capital would be resolved at the earliest with the successful implementation of the Resolution Plan.

Following is a brief report on the five Coal India First Mile Connectivity projects that the organization is executing through Joint Ventures:

A. Projects of Mahanadi Coalfields Limited (MCL):

?–  CHP of Sardega was awarded by MCL on MBE- Trolex-Kilburn JV. Plant erection is complete and load trial run has already started. PG is expected shortly.

?–  CHP of Ananta OCP was awarded by MCL on MBE- AML JV. The organisation had to face challenges related to unfavourable soil conditions due to varying nature of overburden. All erection jobs are under progress now and the project is targeted for completion by December, 2025.

B. Projects of South Eastern Coalfields Limited

(SECL):

All projects of SECL were inaugurated by the Honble

Prime Minister, Mr. Narendra Modi on 24.02.2024.

?–  CHP of Dipka OCP was awarded by SECL on MBE-AML JV. The PG is yet to be conducted and Operation & Maintenance will start thereafter.

?–  CHP of Chhal OCP was awarded by SECL on MBE-Trolex JV. The PG has been successfully conducted on 29.05.2024 and the plant is under our Operation & Maintenance since 26.06.2024.

?–  CHP of Baroud OCP was awarded by SECL on MBE-Trolex JV. The PG has been successfully conducted on 27.07.2024 and the plant is under our Operation & Maintenance since 01.08.2024.

McNally Bharat Engineering has faced significant challenges with incomplete power projects, especially under the threat of Bank Guarantee (BG) encashments and rising loan burdens. Despite this, the Company resumed work on key projects with support from clients like NTPC, GSEC, DVC, and BHEL, under the guidance of the Resolution Professional and the Successful Resolution Applicant. A brief of these projects are as follows:

i) OCPL, Manoharpur Coal Handling Plant:

The CHP project at Manoharpur, Sundargarh (OCPL) was completed in December 2023, with all PG and reliability tests successfully done. The O&M contract concluded in December 2024. Minor defects are being addressed, subject to additional financial support. A waiver request for Liquidated Damages is under OCPLs review. Contract closure and release of Rs.60Cr milestone payments are expected post LD waiver approval.

ii) NMDC Stacker Reclaimer & Barrel Reclaimer project a/c BHEL:

The NMDC project via BHEL at Nagarnar (8 Stackers & 2 Barrel Reclaimers) has been completed up to PG test. Defect rectification is underway and expected by Nov25. LD waiver request is under BHELs consideration. Final Acceptance Certificate and balance payment of approx. Rs.4Cr will follow upon closure of all defects.

iii) GSECL LMCS and AHP package, Bhavnagar:

At GSEC Bhavnagar, Ball Mill #1B has been successfully commissioned since Dec 2017. Following renewed discussions in January 2024, the project resumed, with Ball Mill #2A commissioned in March 2025 (PLC commissioning underway). Remaining two Ball Mills and Silos #4-6 are targeted for completion by 31.12.2025. Timely completion is critical to safeguard BGs worth Rs.39.82 Cr and uphold the Companys reputation in the market.

iv) DVC, Bokaro Combined Ash Slurry Disposal System project:

The DVC Bokaro project has been suspended since 2018 due to financial constraints and local disruptions. The company is in talks with DVC to re-mobilize the site for completing key civil, mechanical, and EIC works. Challenges include local contractors and security issues, especially with the Clariflocculator

viii) NTPC, Barh Water Pre-Treatment Plant for 2 x 660 MW Thermal Power plant:

The NTPC Barh WPT Plant, started on 20.08.2009, is currently operational. Tube settler installation will begin in Oct 2025 and finish by September 2026; no BG exposure involved.

ix) NTPC, Mouda Stage-II - PT Plant for 2 x 660 MW Thermal Power Plant:

The project is fully complete with all NTPC certificates received. Final closure by July 2025 will enable release of BG worth Rs.1.21 Cr and retention payment.

x) NTPC, Mouda Stage-II - Ash Handling and Ash Water Recovery System for 2 x 660 MW Thermal Power Plant:

The project, started on 02.05.2012, saw delays due to late working front availability. PG test was completed in March 2021. Balance work is ongoing, with completion targeted by September 2025 for BG release of Rs.12.93 Cr. Descoping request is pending with NTPC.

xi) NTPC, Kudgi Ash Handling and Ash Water Recovery System for 3 x 800 MW Thermal Power plant:

The project, mobilised on 12.08.2013, has units commissioned by 2019 and PG tests completed for 85% of the system. Remaining work is underway and targeted for completion by November 2025, enabling BG release of Rs.9.65 Cr.

DETAILS OF SIGNIFICANT CHANGES (i.e. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS

Key Financial Ratios	2024-25	2023-24	Change(%)	Reasons
Debt Equity Ratio (Number of times)	(1.13)	(1.38)	-18.43	NA
Interest Coverage Ratio (Number of times)	(1.02)	(0.06)	1622.58	Increase in Loss
Current Ratio (Number of times)	0.09	0.24	-61.75	Decrease in Current Assets
Debtors Turnover (Number of times)	0.19	0.22	-13.44	NA
Inventory Turnover (Number of times)	352.68	299.86	17.61	NA
Operating Profit Margin (%)	(1.16)	(0.30)	3655.29	Increase in Net Loss
Net Profit Margin (%)	(16.35)	(5.27)	210.57	Increase in Net Loss
Return on Net Worth (%)	#	#	-	NA

# Not calculated as Net worth of the Company is eroded.

	For McNally Bharat Engineering Company Limited
	Partha Sarathi Bhattacharyya
6th August 2025	(DIN 00329479)
Kolkata.	Chairman