Mukat Pipes Ltd Management Discussions

(a) Industry Structure and Developments:

The Punjab Government is going to announce a new industrial policy to promote and develop Industries in Punjab. The Punjab Government has also scheme for the development of Smart Cities in which modern infrastructure are to be constructed. This policy is going to support the pipes sector. There is a perfect competition in the pipe sector. The big players have higher scales of production and latest technology. These units are availing internal and external economies and making production at lower cost. The fiscal policy of the Government is promoting infrastructure and this is a big promotion of the pipe sector. The future of the pipe sector is encouraging.

(b) Opportunities and Threats:

The encouragement and support in the fiscal policy of the Government is a big opportunity to have fresh orders from development agencies of the government and from private investors. The cheap substitutes products of plastic and other technologies are a threat to the steel pipes.

(c) Segment-wise or product wise Performance:

The company has business activity within a single primary business segment viz "Longitudinal & Helical Pipes" and is a single geographical segment.

(d) Outlook:

The Company is hopeful to get orders from the existing customers and the new customers going to emerge from the infrastructure growth of the country. The infrastructure development is the engine of the economic growth of the Indian economy.

(e) Risk and Concerns:

The company is not having any credit facility from banks & financial institutions. The risk management for the repayment obligations is minimum.

(f) Internal Control Systems and their adequacy:

An adequate Procedures and Guidelines are issued from time to time to achieve best Practices for adequate control in regard to operations of the Company.

Comprehensive internal audit is also carried out by an independent internal auditor to ensure Compliance and identify weaknesses in the system.

(g) Discussion on financial performance with respect to operational performance:

The company is still performing at below breakeven point. The demand for the products of the company is inadequate to operationalize the production to the level of installed capacity. The company is doing job work due to shortage of working capital.

(h) Material developments in Human Resources / Industrial Relations front, including number of people employed. :

The industrial relations continued to be harmonious and cordial providing an atmosphere conducive to sustenance the present trajectory of the production. Adequate safety measures have been taken at all the Places of Businesses. Highest standard of hygiene is maintained. Our permanent employees as on 1st April, 2024, were 40 and as on 31st March, 2025 were 38.

(i) Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios,

There were no significant changes in key financial ratios except cost output ratio has deteriorated.

(j) Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof:

The company has a Loss of Rs. 16.03 Lacs this year and accumulated losses of the company are Rs.1634.86 Lacs.

(k) Cautionary Statement:

Some of the statements contained within this report may be forward looking in nature and may involve risks and uncertainties. Actual Result and Outcomes in future may vary materially from those discussed herein. Factors that may cause such variances include, but are not limited to management of growth, market acceptance of Companys product and services, risk associated with new product version, dependence on third party relationship and the activities of competitors.