Roto Pumps Ltd Management Discussions

ECONOMIC OVERVIEW Global economy

The global economy grew at 3.3% during FY23, slightly lower than 3.5% during FY22. This has been despite the uncertainty stemming from geopolitical and economic issues especially in Europe. The advanced economies and emerging markets & developing economies grew by 1.7% and 4.4%, respectively in FY23.

The global economy is projected to grow by 3.2% in 2024. Advanced economies are projected to grow at 1.7% while emerging markets and developing economies are projected to grow at 4.3% in 2023. In 2025, emerging market and developing countries are projected to grow at 4.3% while advanced countries growth is projected at 1.8% and global economy is projected to grow by 3.3% (Source: International Monetary Fund, July, 2024).

Indian economy

During FY24, the Indian economy continued its momentum built in FY23 and despite the gamut of global challenges, the economy grew by 8.2% in FY24 against 7.2% during the previous year. This was driven by stable consumption demand and steadily improving investment demand.

During FY25, the economy has so far maintained resilience and core industries are posting healthy growth. With continued gain in investment, improvement in service sector, revival of rural demand on improving farm activity and improving prospects of global trade, the Indian economy is projected to grow by 7.2% during FY25 (Source: RBI press release dated 7^th June, 2024).

INDUSTRY OVERVIEW Global industry

The global industrial pumps market was valued at USD 69.85 billion in 2021 and is expected to grow at a CAGR of 6.3% during the forecast period upto 2030. Increasing investments in the oil & gas sector, technological advancements in pump manufacturing, and new product launches focusing on enhanced perf formance are expected to have a positive impact on the market.

Increasing investments in the exploration and production activities by the oil & gas companies across the globe are anticipated to boost the demand for pumps in the oil & gas industry. The rising number of infrastructure upgrades, in terms of changing or the installation of new pipelines, is expected to have a positive impact on the market.

The advancements in pump technology have resulted in enhanced basic process tasks, increasing the reliability of the pumps, and providing a long-term reduction in everyday operating processes. These advanced pumps are mostly used in industries, such as industrial wastewater, agriculture, power, and chemicals.

Manufacturers are also focusing on new product launches keeping in mind the dynamic requirement of the market. However, new energy efciency standards that are to be incorporated may require redesigning of pumps by manufacturers, which may incur high costs and time, thereby restraining the market growth.

Product type insights

Centrifugal pumpsf segment holds the largest revenue share of 66.9% in 2023. Centrifugal pumps are preferred in those applications where fow rate is an important variable as compared to the pressure requirement for a particular fuid. Pumps are commonly used in urban water systems to provide clean water to communities and ensure reliable access to fresh water. These pumps play an important role in agricultural irrigation, moving water efciently from sources to felds and crops. These are preferred for low-pressure and high-capacity pumping applications of liquids with viscosities ranging between 0.1 and 200 cP.

The estimated global positive displacement pump market is 26.13 billion in 2023. The demand forfpositive displacement pumpsfis estimated to witness growth at the fastest CAGR of 3.4%, in terms of revenue, from 2023 to 2030 owing to their efcient working at lower speed and consistent fow rates. Moreover, the preference for positive displacement pumps in the oil & gas industry is likely to complement segment growth.

Manufacturers are using technology to their advantage by developing innovative pumping solutions. New products are equipped with precision control and efciency using electronic sensors and other digital software. Moreover, the suitability of reciprocating pumps in pumping hazardous fuids is likely to boost the product demand.

Application insights

The agriculture application led the market in 2020 with a revenue share of more than 25%. Technological advancements in the feld of irrigation and farming, especially in emerging countries, coupled with the rising usage of pumps for several purposes in the agriculture segment, such as irrigation, dewatering of crops, reuse, are likely to boost the growth. The construction segment is also estimated to witness signifcant growth from 2020 to 2028. The rapid development of housing complexes and commercial buildings in prime cities would require proper systems for water availability, disposal of sewage, and treatment of wastewater. Moreover, heavy investments in public infrastructures, such as ofces, hospitals, and housing societies, are expected to boost the demand for pumps in the construction industry.

The demand for pumps in water & wastewater applications is expected to grow at a CAGR of 3.6% from 2023 to 2030. The increasing requirement of pump stations in wastewater treatment plants, where gravity fow is not feasible, coupled with high fow rate deliverability and high transmission velocity is likely to augment the market growth. Increasing utilization of shale gas in the energy and manufacturing industries and growing shale gas exploration activities due to technological advancements, such as horizontal and hydraulic drilling, are anticipated to boost the product demand in the oil & gas sector. Furthermore, the penetration of petrochemical products in modern energy systems, such as wind turbine blades, solar panels, batteries, and Electric Vehicle (EV) parts, is expected to drive the market growth.

Regional insights

The pumps market in the Asia Pacifc region is expected to witness signifcant growth over the forecast period upto 2030 on account of the rapid industrialization in the developing economies of Asia Pacifc and rising investments in manufacturing, commercial, and industrial projects have contributed to the overall growth of the regional market. Furthermore, increased product penetration in various end-use industries including agriculture and petrochemical is anticipated to complement market growth.

China is anticipated to be driven by the growing investments in chemical, petrochemical, and construction industries. In addition, several chemical and petrochemical multinational companies are expected to open new manufacturing plants in China owing to the favorable government policies. As more companies look into capacity expansion in China, the demand for pumps in the country is expected to grow.

Rising ofshore exploration and production activities in Europe are anticipated to fuel demand for pumps, over the projected period. Stringent regulations intended to reduce residential water pollution are anticipated to have a signifcant infuence onfraising the demand for water treatment in the municipal and industrial sectors. It is anticipated that rising household use of municipal facilities for water and wastewaterftreatment will have a signifcant impact on the market. This scenario is anticipated to increase the consumption of centrifugal, rotary, and reciprocating pumps in the region over the forecast period.

The growing construction sector, along with the imposition of stringent government regulations in Germany to restrict the discharge of untreated water into water reservoirs, is expected to drive the growth of water & wastewater treatment plants, thereby benefting the pumps market during the forecast period.

Indian industry

The India pump market size was valued at USD 3.7 billion in 2023 and is expected to reach USD 5.25 billion in 2030, growing at a compound annual growth rate (CAGR) of 4.5% during 2023-2030. 16% of Indias pump manufacturing potential is export-oriented and is projected to expand further.

Positive displacement pumps market comprises of 5% to the total pump market. These pumps are widely used water and wastewater, chemical, oil and gas, and power generation. With the increase in the refning capacity, the demand for positive displacement pumps is likely to increase. Moreover, the technological development, which has rendered deep-water and ultra-deep-water exploration feasible and cost-efective, and is expected to increase oil production over the forecast period. It can provide an opportunity for market growth during the forecast period. Oil and gas sector is expected to witness signifcant growth in terms of industrial pump deployment mainly due to declining production from existing oil and gas felds combined with increasing investments in the midstream and downstream oil and gas sectors.

Competitive pricing and manufacturing capabilities are major factors boosting growth in the pump market in India. Top end-user industries in the India pump market include water and waste manufacturing, electricity generation, oil and gas, metals, and mining.

The introduction of intelligent pump systems with smart track and control fuid fow or pressure, responds to process adjustments, and which have failure tolerance features will reduce the total cost of ownership, creating lucrative opportunities for manufacturers in the market. The increased focus on after-sales services will enable vendors to maintain a long-term relationship with the customers in the India pump market. Indian frms are constantly searching for strategic alliances to reach global markets through technological collaborations and to also provide high-quality products in the Indian market.

FFINANCIAL STATEMENTS

The Ffinancial Statements of your Company have been prepared in compliance with the requirement of the Companies Act, 2013 and the applicable new Indian Accounting Standards (Ind-AS) notifed by the Ministry of Corporate Afairs. There is no material departure from the prescribed accounting standards in adoption of the accounting standards. The Management of your Company accepts responsibility for the integrity and objectivity of these ffinancial statements, as well as for various estimates, provisions and judgments used therein, which have been made on prudent and rational basis in order to refect a true and fair view of the afairs of your Company.

Resources allocation:

Non-current assets

Non-current assets of your Company at 31^st March, 2024 have been f13,424.01 lakhs against f 12,032.61 lakhs as at 31^st March, 2023. Composition of non-current assets as on 31^st March, 2024 compared to 31^st March 2023 has been as under-

Property, plant and equipment

Property, plant and equipment of your Company as at 31^st March, 2024 have been f 8,166.82 lakhs as against f 4,938.18 lakhs on 31^st March, 2023 representing a net increase of 65.38%. The net increase in property plant and equipment has been mainly on account of capitalization of assets at new manufacturing facility of your Company.

Capital work-in-progress

Capital work in progress of your Company as at 31^st March, 2024 has been f 0.37 lakhs as against f 2073.40 lakhs on 31^st March, 2023. This has been mainly on account of capitalization of assets at new manufacturing facility of your Company.

Right-of-use-assets

Right-of-use-assets of your Company as at 31^st March, 2024 has been f 2,933.28 lakhs as against f 2,851.88 lakhs on 31^st March 2023. The net increase has been due to creation of right to use asset on account renewal of lease of UK Branch Ofce.

Other intangible assets

Other intangible assets of your Company comprise of computer software, technical drawings, trademarks and patent. Other intangible assets of the Company as at 31^st March, 2024 have been f 237.81 lakhs against f 170.72 lakhs at 31^st March, 2023. The net increase has been on account of new SAP user license and a slid works professional software for R&D purposes.

Investment in subsidiaries

Investment in subsidiaries of your Company as at 31^st March 2024 has been f 1,963.47 lakhs against f 1,850.17 as on 31^st March, 2023. The increase in investment has been on account of investment of Rs. 113.30 lakhs in Roto Pumps Mena FZE, a wholly owned subsidiary in Dubai, UAE.

Deferred tax assets (net)

Deferred tax assets (net) of your Company as at 31^st March 2024 have been f 72.26 lakhs against f 98.26 lakhs as at 31^st March, 2023. The net decrease has been mainly due to higher addition of plant & machinery resulting in higher depreciation under the Income Tax Act.

Current assets

Total current assets of your Company as at 31^st March, 2024 have been f 15,345.76 lakhs against f 15033.28 lakhs as at 31^st March 2023. Composition of the Current assets as on 31^st March, 2024 compared to 31^st March 2023 has been as under-

INVENTORIES

Inventories of your Company as at 31^st March 2024 have been f 4,122.46 lakhs against f 3,880.86 lakhs as at 31^st March, 2023 representing an increase of 6.23%. The increase in inventory has been mainly to support the increased sales.

FFINANCIAL ASSETS

Ffinancial assets comprise of trade receivables, cash & cash equivalents, other bank balances, loans and other ffinancial assets. Ffinancial assets of your Company as at 31^st March 2024 have been f 8,734.34 lakhs against f 8,474.79 lakhs as at 31^st March, 2023 representing an increase of 3.06%. The net increase in ffinancial assets has been mainly on account of increase in trade receivables, which has been mainly due higher sales.

OTHER CURRENT ASSETS

Other current assets of your Company as at 31^st March 2024 have been f 2,488.96 lakhs against f 2,677.63 lakhs as at 31^st March, 2023. The net decrease in other current assets has been mainly due to lower balance of advance to suppliers.

RESOURCES: Equity

Total equity of your Company as at 31^st March, 2024 has been f 19,646.95 lakhs as compared to f 16,572.38 lakhs as at 31^st March, 2023 representing a net increase of 16.35%. Composition of equity as on 31^st March, 2024 as compared to at 31^st March, 2023 has been as under-

Share capital

Share capital of your Company as at 31^st March, 2024 were f 628.15 lakhs as compared to f 314.08 as at 31^st March, 2023. The increase in share capital has been due to issue of bonus shares in the ratio of one fully bonus equity share for each fully paid-up equity share in the Company by way of capitalization of an equal amount from securities premium account.

Other equity

Other equity of your Company comprises of securities premium, general reserve and retained earnings, which has been f 19,018.80 lakhs as at 31^st March, 2024 against f 16572.38 lakhs as at 31^st March, 2023. The net increase in other equity has been on account of proft for the year retained after distribution of dividend.

Non-current liabilities

Non-current liabilities of your Company as at 31^st March, 2024 were f 1,475.94 lakhs as compared to f 1,461.42 lakhs as at 31^st March, 2023. Composition of Non-current liabilities as on 31^st March, 2024 as compared to at 31^st March, 2023 has been as under-

Ffinancial liabilities

Ffinancial liabilities of your Company comprise of long-term borrowings and lease liabilities, as at 31^st March, 2024, the ffinancial liabilities have been f 1,401.44 lakhs against f 1,377.56 lakhs as at 31^st March, 2023. The net increase in ffinancial liabilities has been due to corresponding lease liabilities on account creation of right to use asset in UK Branch.

Provisions

Provisions of your Company comprises of provisions for employee benefts, as at 31^st March, 2024 have been f 74.50 lakhs against f 83.86 lakhs as at 31^st March, 2023.

Current liabilities

Current liabilities as at 31^st March, 2024 were f 7,646.88 lakhs as compared to f 9,032.09 lakhs as at 31^st March, 2023. The composition of the current liabilities as at 31^st March, 2024 compared to as at 31^st March, 2023 has been as under-

Ffinancial liabilities

Ffinancial liabilities of your Company, comprises of short-term borrowings, trade payables and other ffinancial liabilities have been f 4,712.19 lakhs as at 31^st March, 2024 against f 5,769.28 lakhs as at 31^st March, 2023. The net decrease has been mainly due to decrease in working capital limits from Banks and decrease in trade payables.

Other current liabilities

Other current liabilities of your Company, comprises of creditors for capital goods, advances from customers, taxes payable and dividend payable have been f 1,499.54 lakhs as at 31^st March, 2024 against f 2,095.77 lakhs as at 31^st March, 2023. The net decrease has been mainly due to lower balance of advances received from the Customers.

Provisions

Provisions of your Company comprises of short-term provisions for employee benefts, warranty and other provisions have been f 215.07 lakhs as at 31^st March, 2024 against f 127.88 lakhs as at 31^st March, 2023. This has ben mainly due to increase in unfunded balance of provision for employee benefts.

Current tax liabilities

Current tax liabilities (Net) of your Company, comprises of provisions for income tax, have been f 1,220.08 lakhs as at 31^st March, 2024 against f 1,039.16 lakhs as at 31^st March, 2023.

The management believes that your Companys liquidity and capital resources would be adequate to meet its expected working capital needs and other anticipated cash requirements.

FFINANCIAL AND OPERATIONAL PERF FORMANCE

The principal source of Companys revenue is from the sale of pumps, spares and retroft parts. Your Company has a rich heritage of designing and manufacturing superior products and technologies. Your Company ofers comprehensive range of Progressive Cavity Pumps (PCP), Twin Screws Pumps and added other PD pumps in the product basket such as AODD and Gear pumps. The products cater to a large spectrum of industries covering various industrial and municipal applications. Aligned with its vision, your Company is transf forming into a fuid equipment solution provider.

During the ffinancial year 2023-24, your Companys ffinancial and operational perf formance as compared to the previous ffinancial year 2022-23 has been as under:

Your Companys total Income during the year 2023-24 has been f 23,445.20 lakhs as compared to f 19,492.53 lakhs during the year 2022-23, which represents an increase of 20.28%. Revenue from operations during the year has been f 22,980.50 lakhs as compared to f 19,065.60 lakhs during the previous year having an increase of 20.53% over the previous year. The increase in revenue from operations has been on account of efcient utilization of Companys marketing infrastructure in domestic and international markets. Other income during the year has been f 464.70 lakhs as compared to f 426.93 lakhs during the previous year.

Your Company recorded a Proft before Tax of f 4,834.27 lakhs during the year 2023-24 as against f 4,107.98 lakhs in 2022-23. Proft after Tax has been higher mainly due to increased revenue and better cost control.

Your Company recorded a Proft after Tax of f 3,625.30 lakhs during the year 2023-24 as against f 3,027.69 lakhs in 2022-23.

REVENUE FROM OPERATIONS

Your Companys income from operations comprises of domestic sales and exports sales. Revenue from operations during the year has been f 22,980.49 lakhs as compared to f 19,065.60 lakhs during the previous year. Revenue from operations product wise viz. Pumps, Spares and Service Income has been as under –

Sale of pumps during the year has been f 12,822.18 lakhs as compared to f 9219.29 Lakhs during the previous year while sale of spares has been at f 9,944.77 lakhs as compared to

f 9675.35 lakhs during the previous year. The service income has been f 44.73 lakhs against f 29.55 lakhs during the previous year. Other operating revenue mainly comprises of sale of scrap materials has been f 168.81 lakhs against f 140.91 lakhs during the previous year.

Composition of domestic sales and export sales during the ffinancial year 2023-24 as compared to the previous ffinancial year 2022-23 has been as under:

DOMESTIC SALES

Domestic sales during the year have been recorded at f 9,870.36 lakhs against f 6,502.52 lakhs, which represent an increase of 51.79%. Composition of Domestic sales during the year as compared to the previous year has been as under-

Revenue from Sale of Pumps during the year was f 6,511.20 lakhs against f 3,660.34 lakhs during the previous year. Sale of Spares during the year has been f 3,167.60 lakhs against f 2,679.25 lakhs during the previous year. Service income during the year has been f 22.75 lakhs against f 22.02 lakhs during the previous year. Other operating revenue mainly comprises of income from sales of scrap and wastage has been f 168.81 lakhs as compared to f 140.91 lakhs during the previous year.

EXPORT SALES

Export sales by product

Exports sales during the year have been f 13,110.13 lakhs against f 12,563.08 lakhs during the previous year, which represents a nominal increase of 4.35%. Composition of Export Sales during the year as compared to the previous year has been as under:

Revenue from Sale of Pumps during the year was f 6,310.98 lakhs against f 5,559.45 lakhs during the previous year. Sales of Spares during the year have been f 6,777.17 lakhs against f 6,996.10 lakhs during the previous year. Service income during the year has been f 21.98 lakhs against f 7.53 lakhs during the previous year.

Export sales by centers

Your Company executes exports sales from three Centers viz. Direct Export from India, Sales from Warehouse and Marketing

Ofces in Australia and United Kingdom. Export Sales from these Centers during the year as compared to the previous year have been as under-

Direct export

Direct export sales during the year have been f 5,901.00 lakhs against f 5,883.81 lakhs in the previous year which represents an increase of 13.66%.

Sales from Australia branch

Sales from Australia have been f 3,590.76 lakhs as compared to f 3,159.25 lakhs during the previous year, which has been higher by 2.79%.

Sales from U.K. branch

Sales from United Kingdom have been f 3,618.37 lakhs against f 3,520.02 lakhs during the previous year, which has been higher by 16.74%.

KEY FFINANCIAL RATIOS

Key ffinancial ratios for the ffinancial year 2023-24 as compared to the previous ffinancial year have been as under. Clarifcations on the

Particulars	2023-24	2022-23	Change%	Clarifcation in change in is more that 25%
Debtors turnover (days)	83	90	-7.78	fSlight improvement
Inventory Turnover (days)	64	68	-5.88	fSlight improvement
Interest coverage ratio (times)	20	22	-9.09	Increased utilization of working capital facilities
				during the year
Current ratio (times)	2.01	1.66	21.08	Decrease in working capital facilities
Debt equity ratio (times)	0.16	0.23	-30.43	Decrease working capital facilities and repayment of
				Term Loans.
Operation proft margin (%)	27.58	27.04	2.01	Slight improvement
Net proft Margin (%)	15.78	15.88	0.66	Slight reduction
Return on Net worth (%)	20.02	19.80	1.12%	Due to marginally higher proft

HEALTH, SAFETY AND ENVIRONMENT

Your Company continues to comply with Occupational Health and Safety Management System ISO 45001:2018 and Environmental Management System ISO 14001:2015 and endeavours to improve on the culture of safe working environment. Your Company was having installed solar power of 400 KWp at the beginning of the ffinancial year 2023-24 and during the ffinancial year scaled the solar power installation to 995 KWp. Around 19% energy requirement is met f form solar power. Similarly, good health has been the foremost priority of the Company. Indoor and outdoor health check-up camps have been organized from time to time as a preventive healthcare measure. There have been no material incidents during the year under review. Your companys Manufacturing facilities are zero discharge.

OPPORTUNITIES AND THREATS Opportunities

Oil & Gas sector in Middle East and North Africa (MENA), Mining and Mineral processing, Waste Water sector in North America and UK and Biogas sector are focused areas of growth. With the opening of new wholly owned subsidiary "Roto Pumps Mena FZE" in Dubai for MENA region will supplement various opportunities in the whole region.

On domestic front, with Indian economy continuing to grow fastest amongst major Global economies, there are several opportunities across the Board for the Company to leverage its perf formance besides new opportunities in Biogas, Navy & Coast Guard. Your Company is strategically placed and enjoys preferable choice of brand in its line of products.

With the commencement of the production of downhole pumps, would provide new opportunities in Oil & Gas sector in Domestic market, North America and MENA region. Further, With the commencement of solar pumping system division under a wholly owned subsidiary "Roto Energy Systems Ltd would provide tremendous opportunities in the feld of solar pumping system both in domestic and international market for drinking water and agriculture sector. Production of Mud motors wood comments in the next ffinancial year.

Threats

On global front, geopolitical issues and high infationary trends such as high fuel prices, food shortages, are leading to lower spending resulting in lower economic activities which pose certain threats. On domestic front, economic scenario seems to be conducive, which is attracting major global players into the market like Ingersoll Rand and increased activities from local players which would result in increased competition.

RISK AND CONCERNS

Present geo-political and economic issues are major concerns. On geo-political front, Russia - Ukraine and Israel - Palestine has disrupted Global supply chain system and recent aggression between Israel and Iran and turmoil in Bangladesh coupled with Chinese aggression is adding fuel to already critical geo-political situation. These are adversely afecting the global economic growth and would also lead to exchange fuctuations. On the economic front, recessionary trends in Europe and infation in US are a matter of concern, however in recent months infation in US refected easing trends. Besides, these Election in US and other Countries would also pose hurdle to economic activities.

Your Company operates in all the major Countries, any adverse geo-political and economic development would adversely affect operations and perf formance of the Company. Global disruptions, emerging trade patterns and evolving environmental & sustainability policies, etc. could infuence business decisions and market footprint. The aim is to protect and enable business to generate value.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has an adequate system of internal controls implemented by the management towards achieving higher efciency in all areas of operations. These controls have been designed to provide a reasonable assurance with regard to maintenance of proper accounting controls, monitoring of operations, protecting assets from unauthorized use or losses, compliance with regulations and for ensuring reliability of ffinancial reporting.

Your Company had adopted SAP software to strengthen its controls and processes which has been implemented in India Operation. It has also been implemented at Overseas Establishment in UK and Dubai and is being implemented in other Overseas Establishments in phased manner. Further, its operations are being extended to cover other operational activities and reporting structure where it has been put into operations. Full implementation of SAP would allow integration of multiple locations on one platf form and would bring tremendous synergy and improve overall efciency of the organization signifcantly.

The Audit Committee of the Board of Directors regularly reviews the adequacy of internal controls and takes necessary corrective actions wherever required.

RESEARCH & DEVELOPMENT

Research & Development Centre of your Company had been recognized by the Department of Scientifc & Industrial Research, Ministry of Science & Technology, Government of India. During the year, your Company has incurred an amount of f 246.75 lakhs towards revenue expenses and f 19.87 lakhs, totalling to f 266.62 lakhs which constitutes 1.16% of the revenue from operations of the Company. Previous year, it was f 233.72 lakhs and f 0.21 lakhs towards revenue expenses and capital expenses, respectively, totalling to f 233.93 lakhs, which constituted 1.23% of the revenue from operation of the Company.

HUMAN RESOURCES & INDUSTRIAL RELATIONS

We believe that in order to sustain growth under competitive conditions, the Human Capital of the Company should have high level of motivation and knowledge. The Company continues to focus and invest in human resources development to provide an open work culture and rewarding career opportunities to all its employees. During the year, your Companys HR division successfully recruited 39 people (replacements as well as new joining) in response to various business needs. Manpower strength as on 31.03.2024 was 525.

The overall employee relations were peaceful and harmonious throughout the year. The Company continued to create conducive work environment with opportunities for growth and learning, by implementing robust and comprehensive HR policies.

FUTURE OUTLOOK

Your Company remains focused to increase its market share in all the key markets where it operates to achieve signifcant growth in topline which would also result in better bottom-line. Your Company has a strong manufacturing and marketing infrastructure with presence in five continents besides strong Research & Development setup, experienced and motivated Manpower.

Time ahead looks challenging as geo-political issues in Eurasia, higher infation especially in U.K. and European Countries and recessionary trends in US and Europe are certain threats to Global economy, however Domestic economy appears to be positive. Your Companys majority of revenue is generated from exports, exchange rates fuctuations are a matter of concern.

Medium term growth would be led by new businesses of downhole pumps and solar pumping systems, which would substantially contribute to business growth. Introduction of new products in the existing product line would improve your Companys ability to penetrate in major sectors such as food & beverages, mining etc. In line with your Companys vision, long term focus would be to attain a prominent position and to be among the frst fve Global Positive Displacement Pump Manufacturer.

CAUTIONARY STATEMENT

Statements in the Management Discussion Analysis describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities law and regulations. Actual results may difer from those expressed in the statement. Important factors that could infuence the Companys operations include changes in Government regulations, tax laws, economic development within and outside the Country and such other factors.

	For and on behalf of the Board of Directors
	Harish Chandra Gupta
Place: Delhi	Chairman & Managing Director
Date: 09.08.2024	DIN: 00334405