Porwal Auto Components Ltd Management Discussions

CAVEAT

This Management Discussion and Analysis ("MD&A") contains certain forward-looking statements relating to the Companys business, operations, financial performance, prospects, plans, strategies, objectives and future outlook. Such statements are based on the Companys current expectations, estimates, assumptions and assessments and are subject to various risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied in such statements.

The performance of the Auto-Components industry is influenced by a range of factors, including developments in domestic and global automotive markets, changes in vehicle production and demand, volatility in the prices and availability of key raw materials, foreign exchange movements, interest rates, regulatory and environmental requirements, technological developments, and changes in customer preferences. The industry is also exposed to risks arising from dependence on Original Equipment Manufacturers (OEMs), supply-chain disruptions, geopolitical developments, trade policies, changes in import and export regulations, and the transition towards electric, hybrid and other alternative-fuel vehicles.

The information contained in this MD&A has been prepared based on information, data and sources considered by the Company to be reasonable and reliable as of the date of this Report. However, the Company does not guarantee the completeness, accuracy or reliability of such information and undertakes no obligation to publicly update, revise or modify any forward-looking statements, whether as a result of new information, future events or otherwise, except where required under applicable laws and regulations.

Readers are advised that the statements and information contained in this MD&A should not be construed as a guarantee or assurance of future performance. Investors and other stakeholders are advised to exercise due caution and undertake their own independent assessment and analysis before making any investment or other business decisions based on the information contained in this Annual Report.

The Company does not undertake to provide any assurance that the anticipated results or developments referred to in forward-looking statements will be achieved, and actual outcomes may vary depending on the circumstances and factors prevailing from time to time. This MD&A should be read in conjunction with the Companys financial statements, notes thereto and other disclosures forming part of the Annual Report for FY2025–26.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Indian automotive industry is one of the key pillars of the countrys manufacturing sector and plays an important role in supporting economic growth, employment generation, industrial development, and technological advancement. The industry comprises a broad ecosystem of vehicle manufacturers, auto-component manufacturers, suppliers, dealers, and service providers, with strong linkages across the manufacturing and infrastructure sectors.

The automotive industry can broadly be classified into passenger vehicles, commercial vehicles, two-wheelers, and three-wheelers, supported by a large and diversified auto-components ecosystem. India has developed a well-established automotive manufacturing base, supported by a growing domestic market, a strong supplier network, skilled manpower, increasing localization, and improving manufacturing capabilities. The auto-components sector forms an integral part of this ecosystem, supplying components and systems to both domestic OEMs and international customers.

The Indian automotive industry continues to evolve in response to changing consumer preferences, technological advancements, regulatory requirements, and global supply-chain developments. Increasing demand for safety, comfort, fuel efficiency, connectivity, and improved vehicle performance is encouraging OEMs and component manufacturers to invest in advanced technologies and product development. At the same time, the industry is witnessing a gradual transition towards electric and alternative-fuel mobility, creating new opportunities across the automotive value chain.

Key Industry Developments:

Electrification and Alternative Fuels:

The transition towards electric mobility is gaining momentum, supported by government policies, improving charging infrastructure, technological advancements, and increasing consumer awareness. While electric vehicle adoption is progressing at different rates across vehicle segments, two-wheelers, three-wheelers, and urban mobility applications are witnessing increasing electrification. CNG, hybrid, and other alternative-fuel technologies are also contributing to the diversification of Indias mobility ecosystem.

Increasing Localization:

The industry is witnessing greater emphasis on domestic sourcing and localization of critical automotive components. Government initiatives, including the Production Linked Incentive (PLI) Scheme for automobiles and auto components, are encouraging investments in advanced automotive technologies, domestic manufacturing capabilities, and supply-chain development. This is expected to strengthen Indias position as a competitive manufacturing and sourcing destination.

Technology and Product Innovation:

Automotive manufacturers and component suppliers are increasingly adopting automation, advanced manufacturing processes, digital technologies, and Industry 4.0 practices. Demand is also increasing for lightweight, high-strength, precision-engineered, and technologically advanced components that can improve vehicle efficiency, safety, durability, and performance.

Growth of the Auto-Components Sector:

Indias auto-components industry has developed into an important manufacturing and export-oriented sector. Component manufacturers serve domestic OEMs as well as global customers across various vehicle platforms. Increasing outsourcing by OEMs, greater localization, and the diversification of global supply chains are creating opportunities for Indian component manufacturers to expand their domestic and international presence.

Export Opportunities and Global Integration:

Indian automotive manufacturers and component suppliers are increasingly integrated into global automotive supply chains. Indias competitive manufacturing costs, engineering capabilities, skilled workforce, and improving quality standards provide opportunities to increase exports and develop relationships with global OEMs and Tier-1 suppliers. International trade agreements and the diversification of global sourcing strategies may further support export growth.

Infrastructure and Government Support:

Continued investments in roads, logistics, transportation infrastructure, and industrial development are expected to support automotive demand over the medium to long term. Government initiatives aimed at strengthening manufacturing, promoting clean mobility, improving infrastructure, and enhancing domestic value addition are expected to remain important growth drivers for the sector.

India has made significant strides in its global trade integration, reaching a crucial milestone in the long negotiated Free Trade Agreement (FTA) with the European Union (EU). The structural framework agreed upon in late FY 2025-26 paves the way for substantial tariff reductions, enhanced market access for Indian textiles, pharmaceuticals, and engineering goods, and establishes mutually beneficial terms for digital trade and services.

Indias growing integration with global trade networks is creating new opportunities for the automotive and auto-components industry. The India–UK Comprehensive Economic and Trade Agreement (CETA), which came into force in July 2026, provide Indian exporters with significantly improved market access to the UK. The agreement liberalises 99% of UK tariff lines for Indian exports, while India has committed to liberalising or reducing tariffs across approximately 90% of its tariff lines. The agreement is expected to enhance the competitiveness of Indian manufacturers and create additional opportunities for sectors including engineering goods and auto components.

For the Indian auto-components industry, improved access to the UK market could support export diversification and strengthen the participation of Indian manufacturers in global automotive supply chains. The reduction of trade barriers, together with Indias competitive manufacturing capabilities, engineering expertise and expanding supplier ecosystem, is expected to provide opportunities for domestic component manufacturers to deepen relationships with international OEMs and Tier-1 suppliers.

India has also achieved significant progress in strengthening its trade relationship with the United States. In February 2026, India and the United States announced a framework for an interim trade agreement, under which the United States agreed to reduce the reciprocal tariff applicable to Indian goods to 18%, while both countries committed to further negotiations towards a broader Bilateral Trade Agreement. The framework also envisages greater cooperation in technology, supply-chain resilience, rules of origin and the reduction of non-tariff barriers.

These developments are particularly relevant for the auto-components industry, as the diversification of global supply chains and the search for reliable, cost-competitive sourcing destinations continue to create opportunities for Indian manufacturers. The emerging trade environment could enable Indian auto-component companies to expand their export footprint, diversify their customer base and strengthen their position as global suppliers.

Going forward, the Company intends to leverage these evolving trade opportunities by focusing on product quality, technological capabilities, manufacturing efficiency and adherence to international standards. Expanding export markets, developing relationships with global customers and increasing the share of value-added and precision-engineered components will remain important areas of focus as the Company seeks to participate more actively in the global automotive supply chain.

FAVOURABLE POLICY MEASURES AIDING GROWTH

1. Production Linked Incentive Scheme(PLI):

This scheme encourages companies to invest in expanding their manufacturing capabilities, enhancing production efficiency, and developing new technologies. It also helps reduce the dependency on imports and supports the growth of domestic supply chains. The Union Cabinets PLI Scheme for the automotive sector, with an allocation of $3.5 billion, provides financial incentives of up to 18% to bolster domestic manufacturing of advanced automotive technology products and attract investment in the automotive value chain. This scheme is effective from April 01, 2022, for a period of five years.

2. Automotive Mission Plan 2016-26 (AMP 2026):

This plan includes goals for increasing production capabilities, enhancing research and development (R&D) efforts, and expanding exports. For auto components companies, this translates into opportunities for growth through increased demand for locally manufactured parts and a stronger focus on technological innovation.

AMP 2026 aims to propel the Indian Automotive industry to be the engine of the "Make in India" programme as it is amongst the foremost drivers of the Manufacturing sector. Indian Automotive sector is likely to contribute in excess of 12% of the countrys GDP and compromise more than 40% of its manufacturing sector.The Automotive industry has achieved the target of incremental employment creation of 25 million jobs and shall generate an additional 65 million jobs in the future.

3. National Automotive Testing and research and development (R&D) Infrastructure Project (NATRiP):

NATRiP aims to enhance the testing and R&D infrastructure for automotive components and vehicles in India. By providing state-of-the-art facilities for testing and development, this initiative supports innovation and quality assurance for auto components companies. Funded entirely by the Government of India, with a total cost of Rs. 3727.30 Crore, NATRiP is designed to enhance global automotive excellence and support low-cost manufacturing and product development.

4. Skilling and Training Programs:

Government initiatives aimed at enhancing the skills of the workforce, such as vocational training and skill development programs, benefit the auto components sector by providing a skilled labour pool. Well-trained professionals contribute to higher productivity and innovation within the industry.

5. Government Incentives for R&D and Innovation:

The Indian government offers various incentives for research and development activities, including tax benefits and grants. These incentives are designed to encourage companies to invest in innovative technologies and develop advanced automotive components. By taking advantage of these incentives, companies can drive technological advancements and maintain a competitive edge in the market.

COMPANYS OVERVIEW:

Porwal Auto Components Limited ("Porwal Auto" or "the Company"), incorporated in 1992 is an established engineering and manufacturing company based in Pithampur, Madhya Pradesh. Over more than three decades, the Company has developed specialised capabilities in the manufacture of ferrous castings and machined components for critical applications. Its product portfolio comprises Ductile Iron, Grey Iron and Alloy Steel castings and machined components, serving customers across the automotive, engineering, railway, defence, agriculture and other industrial applications. The Company operates from its manufacturing facility at Pithampur and continues to build on its manufacturing heritage through investments in technology, quality and capacity.

Porwal Auto has established itself as one of the major foundry units in Central India, with specialised capabilities in Green Sand and Vacuum Assisted Lost Foam Casting (VLFC) processes. The Companys moulding operations are automated to support consistency and repeatability in casting quality. Its capabilities enable the manufacture of complex and intricately shaped castings for critical applications, with individual casting weights ranging from approximately 1 kg to 900 kg. The Company has developed its capabilities to address varying customer requirements across product complexity, size and application.

The Companys manufacturing capabilities extend across the casting value chain, supported by modern moulding, core-making, melting and machining facilities. Its foundry infrastructure includes high-pressure moulding systems as well as heavy moulding capabilities, including sodium silicate, CO2 sand and no-bake moulding for applications requiring larger castings. The Companys core-making facilities comprise automated cold-box and amine cold-box systems, while its VLFC process enables the manufacture of complex castings with intricate geometries. These capabilities provide the Company with flexibility to manufacture a broad range of components in line with customer-specific requirements.

Porwal Auto also has an in-house machining facility comprising Horizontal Machining Centres (HMCs), Vertical Machining Centres (VMCs), CNC turning, Vertical Turret Lathes (VTLs) and conventional machines. The machining infrastructure is supported by tool presetting and advanced coordinate measuring systems, including 3D CMM facilities, enabling precise dimensional inspection of machined components. The integration of casting and machining capabilities enables the Company to offer value-added components and assemblies while maintaining greater control over manufacturing processes, quality and delivery.

Quality and metallurgical excellence form an integral part of the Companys manufacturing philosophy. Porwal Auto has an in-house NABL-accredited laboratory and a range of chemical, metallurgical, sand and metrological testing facilities. Its testing infrastructure includes spectrometers, carbon-sulphur analysis, microscopy and hardness testing, sand-testing equipment and coordinate measurement systems. The Company also undertakes non-destructive testing, destructive inspection and dimensional verification as part of its quality-control processes. These capabilities support stringent control over raw materials, metallurgical properties, dimensional accuracy and product performance.

The Company currently has a production capacity of approximately 21,600 MT per annum and is in the process of expanding this capacity by an additional 1,200 MT per annum. The expansion is intended to strengthen the Companys ability to cater to increasing customer requirements and support growth across its target markets. Alongside capacity enhancement, the Company continues to focus on improving productivity, reducing rejection, rework and wastage, optimising manufacturing processes and enhancing overall operational efficiency.

Porwal Auto has developed a diversified customer and industry presence. The Companys customer base and business relationships span commercial vehicles, railways and locomotives, railway coach manufacturing, defence, engineering, pumps and valves, agriculture and tractor equipment and other industrial applications. Its customers and business relationships including VE Commercial Vehicles Limited, Indian Railways, Bharat Heavy Electricals Limited, JCB India, CG Power & Industrial Solutions, VosslohCogifer Signaling India, Case New Holland Construction Equipment, Brakes India and TAFE Tractors, among others. This diversified exposure enables the Company to address requirements across multiple end-use applications and reduce dependence on any single industry segment.

The Companys focus on technology is reflected in its adoption of advanced casting and simulation practices aimed at improving product quality and process efficiency. Its quality systems incorporate Advanced Product Quality Planning (APQP), process controls, gating and risering design, metallurgical controls and simulation technologies. The Company seeks to identify and address potential casting defects at the design and process-development stage, thereby improving consistency, reducing rework and supporting reliable product performance.

Sustainability and responsible resource utilisation are also becoming an important part of the Companys operating approach. Porwal Auto has installed two solar power generation plants of 1.80 MW and 3.0 MW, aggregating to 4.80 MW, at Village Karodia, Tehsil Tarana, District Ujjain, Madhya Pradesh, for captive consumption. The Company has stated its intention to progressively enhance its power-generation capacity to up to 10 MW by 2030. The increased use of renewable energy is expected to support the Companys efforts towards energy conservation and more efficient resource utilisation.

With a strong foundation in ferrous casting and machining, Porwal Auto is focused on strengthening its capabilities in complex and value-added components while expanding its addressable market. The Companys strategic priorities include capacity expansion, technology enhancement, continuous improvement in quality, reduction in rejection and wastage, greater operational efficiency and development of long-term customer relationships. The Company seeks to leverage its experience in casting technology, integrated manufacturing capabilities and established customer relationships to participate in emerging opportunities across automotive, railway, defence, agricultural, engineering and industrial applications.

As Porwal Auto progresses into its next phase of growth, the Company remains committed to combining manufacturing expertise, technological advancement, quality consciousness and responsible business practices. With a continued focus on customer requirements and operational excellence, the Company aims to strengthen its position as a dependable engineering solutions provider and create sustainable long-term value for its customers, shareholders, employees and other stakeholders.

OPPORTUNITIES AND THREATS:

OPPORTUNITIES:

The Indian auto-components industry is undergoing a significant transformation, supported by rising vehicle demand, increasing localization, technological advancements and the evolving requirements of domestic and global OEMs. The transition towards electric and alternative-fuel mobility, expansion of global sourcing from India, increasing demand for precision-engineered components and greater adoption of advanced manufacturing technologies are creating new avenues for growth. These developments provide opportunities for the Company to strengthen its product portfolio, enhance manufacturing capabilities, expand its customer base and increase its presence in both domestic and international markets.

1. Growth in the Indian automotive and commercial vehicle ecosystem: India continues to offer a favourable long-term environment for auto-component manufacturers, supported by increasing vehicle penetration, infrastructure development, replacement demand and the expansion of domestic manufacturing capabilities. The commercial vehicle segment remains particularly relevant for Porwal Auto given its established presence as an OEM supplier in this segment. The Companys capabilities in ductile iron, grey iron and alloy steel castings, along with machining capabilities, position it to participate in the increasing demand for reliable and value-added components.

2. Railway modernisation and infrastructure spending: Continued investments in railway infrastructure, locomotive manufacturing, passenger coaches, signalling and related modernisation programmes provide an attractive opportunity for the Company. Porwal Auto already supplies components to various railway establishments and has experience in manufacturing components for locomotives and railway coach manufacturing units. Increasing localisation and domestic sourcing requirements could create opportunities for the Company to deepen its participation in this sector.

3. Defence indigenisation: The Governments continued emphasis on self-reliance and domestic manufacturing in defence presents an opportunity for specialised engineering and casting companies. Porwal Autos experience in manufacturing components for defence applications provides a platform to pursue additional opportunities in this segment. The Companys ability to manufacture complex castings and maintain stringent testing and quality controls can support its participation in applications requiring durability and dimensional precision.

4. Export market expansion: Expanding into international markets represents an important avenue for diversifying the Companys customer base and reducing dependence on domestic demand. Porwal Auto has identified increasing exports of high-quality cast components and developing relationships with international OEMs and Tier-1 suppliers as a strategic priority. Indias growing acceptance as a competitive manufacturing and sourcing destination provides an opportunity to leverage the Companys casting and machining capabilities for global customers.

5. Advanced casting and manufacturing technologies: Increasing demand for complex, lightweight, precision-engineered and cost-efficient components is creating opportunities for manufacturers with specialised casting capabilities. Porwal Autos expertise in Green Sand and Vacuum Assisted Lost Foam Casting (VLFC), together with its machining and inspection infrastructure, provides a foundation for developing more complex and higher-value components. Continued investment in automation, process optimisation, simulation and advanced manufacturing technologies can further improve productivity, quality and cost competitiveness.

6. Diversification across end-use industries: The Companys presence across commercial vehicles, defence, locomotives, railway coach manufacturing and public-sector applications provides opportunities to diversify its revenue base. Further expansion into engineering, pumps and valves, agricultural equipment and other industrial applications can help the Company utilise its existing manufacturing capabilities across a wider range of products and customers.

7. Renewable energy and operational efficiency: The Companys investment in captive solar power provides an opportunity to improve energy self-reliance and manage long-term energy costs. The Company currently has solar power generation facilities aggregating 4.80 MW and has stated its intention to increase its power-generation capacity to up to 10 MW by 2030. Greater renewable-energy utilisation can also strengthen the Companys sustainability profile and support the requirements of customers increasingly focused on lower-carbon supply chains.

THREATS:

1. Cyclical nature of the automotive industry: A significant portion of the Companys business is linked to automotive and commercial vehicle applications. Any slowdown in vehicle production, economic activity, freight movement, infrastructure spending or replacement demand could adversely affect volumes and capacity utilisation. Changes in customer production schedules may also result in fluctuations in order volumes and operating performance.

2. Raw material and energy price volatility: Foundry operations are exposed to fluctuations in the prices of key raw materials, including ferrous metals, steel, scrap and other consumables, as well as energy costs. Since the Companys manufacturing processes are energy intensive, significant increases in electricity, fuel or other input costs could exert pressure on margins, particularly where such increases cannot be fully passed on to customers.

3. Intensifying competition: The Indian casting and auto-component industry is competitive, with manufacturers competing on quality, technology, cost, delivery capability and customer relationships. Increasing competition from domestic and international suppliers could place pressure on pricing and margins. Maintaining technological competitiveness and continuously improving productivity will therefore remain important to preserve the Companys market position.

4. Technology transition in the automotive industry: The transition towards electric vehicles and other emerging mobility technologies may alter the demand profile for certain conventional automotive components. Components associated with internal-combustion powertrains may face structural changes over the longer term. The Company will need to continuously evaluate its product portfolio and develop capabilities for components relevant to evolving vehicle architectures.

5. Customer concentration and OEM dependency: The Companys business is significantly linked to OEMs and institutional customers. Changes in customer sourcing strategies, vendor rationalisation, pricing negotiations, insourcing, programme discontinuation or delays in new product launches could affect order volumes and revenue visibility. Continued customer diversification and expansion into new geographies and applications will therefore be important.

6. Stringent quality and regulatory requirements: Customers in automotive, railway and defence applications increasingly require stringent quality, traceability, testing and certification standards. Any failure to consistently meet specified quality, delivery or technical requirements could result in rejection, additional costs, loss of business or reputational impact. The Company therefore needs to continuously invest in quality systems, testing infrastructure, technology and employee capabilities.

7. Global economic and geopolitical uncertainties: The Companys planned expansion into export markets could expose it to fluctuations in foreign exchange rates, changes in international trade policies, tariffs, logistics costs, geopolitical developments and demand conditions in overseas markets. Such factors may affect the competitiveness and profitability of exports.

8. Environmental and sustainability-related requirements: Foundry operations are subject to increasing environmental expectations relating to energy consumption, emissions, waste management and resource utilisation. Compliance with evolving environmental standards may require additional investments in technology, energy efficiency and process improvements. At the same time, customers may increasingly favour suppliers with demonstrable sustainability credentials, making continuous improvement in this area essential.

9. Execution risk associated with capacity expansion: The Company is undertaking an additional 1,200 MT per annum capacity expansion over its existing 21,600 MT per annum capacity. Timely commissioning, effective utilisation of the expanded capacity, securing corresponding customer programmes and achieving targeted productivity levels will be important to realise the expected benefits from the investment.

OUTLOOK:

The global automotive parts manufacturing industry is undergoing significant regional shifts in its manufacturing and supply chain strategies. These changes are primarily driven by geopolitical factors, trade policies, and the need for supply chain resilience amid global disruptions.Governments worldwide are implementing trade policies and tariffs that are reshaping the global automotive supply chain. For instance, the United States 25% tariff on imported vehicles from Canada and Mexico has compelled automakers to reconsider their production locations. These tariffs could increase vehicle costs by up to US$7,000 for imports and US$3,000 for domestically manufactured vehicles, prompting companies to shift operations to the U.S. to mitigate financial impacts.To counteract these challenges, automotive companies are embracing localization and regionalization strategies. The United States-Mexico-Canada Agreement (USMCA) has encouraged automakers to source more components locally and establish regional manufacturing hubs.

Indias auto components industry has significantly expanded its market share, driven by rising automobile demand from the growing middle class and strong global exports. The Bharat New Car Assessment Program (BNCAP) will boost the auto component value chain by driving advanced manufacturing, fostering innovation, and promoting global standards.

The Government of Indias Automotive Mission Plan (AMP) 2006-26 has been instrumental in ensuring growth for the sector. The Indian automobile industry is expected to achieve a turnover of US300 billion by 2026 by expanding at a CAGR of 15300 billion by 2026 by expanding at a CAGR of 15 74 billion.

The industry recorded a turnover of ?7.60 lakh crore ($85.9 billion), registering a growth of 12.7% in rupee terms over the previous fiscal, as per Automotive Component Manufacturers Association of India (ACMA). The industry also witnessed labour shortages, specifically in small and medium enterprises, in the wake of the West Asia war that led to workers moving to their native places as the cost of living in towns and cities increased due to the rise in energy costs. "The medium- to long-term outlook for the Indian auto component industry remains positive. Growing domestic demand, infrastructure-led economic growth, expanding manufacturing investments, deeper global integration through Free Trade Agreements and increasing global sourcing from India are creating significant opportunities for the sector. For the FY26 performance was driven by robust domestic demand, higher vehicle production, sustained investments in capacity and technology and steady export growth despite an increasingly uncertain global environment.

Looking ahead to 2027 and beyond, the Company intends to focus on capacity enhancement, technology upgradation, process improvement, cost optimisation, product development and better utilisation of resources. The Company will continue to evaluate opportunities to expand its product portfolio and customer base, particularly in the automotive, railway, defence and energy sectors.The Company will continue to focus on energy efficiency, reduction of material wastage, productivity improvement and adoption of appropriate automation and technology across its manufacturing operations. The Company will also evaluate suitable opportunities in renewable and non-conventional energy based on their commercial viability and long-term potential.

The Company has successfully implemented Lost Foam Casting Technology as part of its ongoing efforts towards technological advancement and process improvement. The Company is continuously working on further upgrading and optimising the technology with a focus on improving product quality, process efficiency, productivity and manufacturing capabilities. The successful implementation of Lost Foam Casting has strengthened the Companys ability to manufacture complex and precision cast components and cater to evolving customer requirements. Going forward, the Company will continue to invest in process development, technology enhancement and automation to further improve the efficiency and competitiveness of its foundry operations.

In the coming years, the Company plans to further strengthen and modernise its manufacturing capabilities through the installation of a High Pressure Moulding Line (HPML), representing an important step towards the adoption of advanced foundry technology. The proposed HPML is expected to enhance production capacity, improve productivity and process consistency, and enable better control over product quality and dimensional accuracy. The technology is also expected to facilitate greater automation, optimise utilisation of resources and reduce rejection and rework, thereby improving overall operational efficiency. The Company believes that the adoption of HPML technology will strengthen its manufacturing capabilities and enable it to cater to increasing customer requirements across various industrial sectors while providing a strong platform for sustainable growth in the coming years.

Looking ahead, the Company remains cautiously optimistic about its growth prospects and is committed to strengthening its manufacturing capabilities, enhancing production capacity and continuously upgrading its processes and technologies. The Company will focus on improving productivity, product quality and operational efficiency while developing new business opportunities across various industrial sectors.Increased emphasis will also be placed on customer diversification and expansion into international markets to enhance the Companys export presence. With a continued focus on capacity enhancement, technology advancement, operational excellence and market expansion, the Company aims to build a strong and sustainable platform for long-term growth and value creation for its stakeholders.

DISCUSSION ON FINANCIALPERFORMANCE WITH RESPECTTO OPERATIONAL PERFORMANCE:

During the year under review the Company has reported a turnover of Rs. 14226.23 Lacs against the turnover of Rs. 14044.67 Lacs in the previous year, reflecting an increase of approximately Rs. 181.56 Lacs (approx). The overall expenses of the Company have decreased from Rs. 14048.08Lacs to Rs. 13839.90 Lacs. The Company has incurred a net profit of Rs. 992.51Lacs as compared to profit of Rs16.09 Lacs in the previous year. Your Company is trying their best to uplift the profit in the coming period.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

HUMAN RESOURCES / INDUSTRIAL RELATIONS

The human resource plays a vital role in the growth and success of an organization. The Company has maintained cordial and harmonious relations with employees across various locations. The Company has built a competent team to handle challenging assignments. As on 31st March, 2026, there were 395 permanent employees on the roll of the Company. Our Company shares good industrial relations which improves the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. Complete unity of thought and action is placed in organization. Keeping employee wellbeing foremost, we have embraced the post-pandemic way of life and work. It has increased the place of workers in the society. During the year, the Company has taken several initiatives to further strengthen its human resource base to meet its current & future growth plans. The Company strives to enhance the technical, work related and general skills of employees on a continuous basis. There was unity of purpose among the employees to continuously strive for all round improvements in work practices & productivity Industrial relations were cordial throughout the year at all locations.

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 are as follows:

DISCLOSURE OF ACCOUNTING TREATMENT

Your Companys financial statements for the year ended 31st March, 2026 are the financial statements prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016, as applicable. During the Financial Year, there was no change in the Accounting Treatment in preparation of Financial Statements.