Samkrg Pistons & Rings Ltd Management Discussions

Our company specializes in manufacturing auto components such as pistons, gudgeon pins, rings, and auto shafts for various vehicle segments, including commercial vehicles, tractors, and heavy-duty stationary engines. The market is divided into OEMs, the replacement market, and exports, each o ering distinct advantages and challenges.

The Indian auto component industry is evolving, establishing itself as a key global supplier with substantial export potential. Our growth is closely tied to the automobile industry’s performance and the broader rural economy. We are actively upgrading our manufacturing technologies to comply with the latest emission standards, such as BS6 and Euro norms. Additionally, we are expanding our product range to include valves, connecting rods, bearings, and fi lters, which will enhance our o erings in the domestic and export markets.

The rise of electric vehicles presents both opportunities and challenges for our company. While the shift towards electric mobility poses a threat to the traditional I.C. engine market, it also o ers opportunities for innovation and diversifi cation. To stay competitive, we are focusing on cost-e ective manufacturing processes and adopting sophisticated technologies, supported by technical expertise from Japanese and German consultants. Our plans to introduce new products like valves, connecting rods, bearings, and fi lters further diversify our portfolio, catering to evolving market demands.

Our strong relationships with domestic OEMs, agricultural tractor manufacturers, and the replacement market, along with a robust export presence, provide a solid foundation for growth. However, we must navigate risks such as foreign currency fl uctuations, raw material price volatility, and intense competition from international players and the unorganized sector.

In the face of these challenges, the company is committed to sustainable growth. We are leveraging our strong distribution network and partnerships with OEMs to enhance our market presence. By implementing cost-e ective measures and focusing on zero-defect quality and timely delivery, we aim to meet the evolving needs of our customers.

We are poised for moderate demand growth across all market segments, driven by continuous product innovation and compliance with stringent environmental standards. Our strategy includes the introduction of new products such as valves, connecting rods, bearings, and fi lters, expanding our o erings in the Indian domestic and export aftermarkets. This approach will help us capitalize on existing strengths while exploring new opportunities in emerging markets.

The company continues to operate in a highly competitive environment, facing various risks such as technology obsolescence, regulatory changes, and geopolitical uncertainties. However, we are proactively managing these risks through strategic planning, investments in advanced technologies, and maintaining a fl exible business model. Our harmonious industrial relations and comprehensive risk management strategies ensure the resilience and sustainability of our operations.

Overall, the company remains focused on leveraging its strengths and exploring new opportunities to secure long-term growth and profi tability.

INTERNAL CONTROL SYSTEM:

Your company maintains and adequate and e ective internal control system to commensurate with its size and complexity. An independent internal audit function is an important element of your company’s internal control system. The internal control system is supplemented through an extensive internal audit program and periodic review by management and audit committee.

Industrial relations during the year are little distributed due to high infl ations & price rises of all commodities are on very much increasing side. The Company encourages good talent and introduced skill development program in the rapidly challenging business and competitive environment. Adequate safety measures, training and development of the employees continue to receive top priority.

The Company earned total revenue of Rs 24684.55 lakhs compared with Rs 23544.30 lakhs in the previous year.

Profi t Before Depreciation, interest and tax (PBDIT) at Rs. 3329 lakhs. The Profi t Before Tax was at Rs 3638.24 lakhs.

Pursuant to the provisions of Regulation 34(3) of SEBI (LODR) Regulations 2015 read with Schedule V part B (1) details ofchanges in Key Financial Ratios are given as hereunder :

The details of return on net worth is as follows:

The Chairman & Managing Director and Chief Financial O cer makes a declaration at each Board Meeting regarding the compliance with provisions of various statutes after obtaining confi rmations from all the units of the company. The Company ensures compliance with SEBI regulations and provisions of the listing agreement

The Company maintains continuously planning to have cordial industrial relations environment and the Company continues to establish its training facilities at all levels of employees for cost reduction programmes.

Statements in this Management Discussion and Analysis describing the Company’s objective, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results might di er marginally or materially from those either expressed or implied.

A chart showing 10 Years performance is appended forming part of this report is attached at Performance Highlights.

The Company is focusing exports to developed Countries like Europe, U.K, France, Germany, Spain Brazil and Russia and also to Gulf & Asian Countries. The Company has plans to reach 25% of the Turnover during the next 2 years.

We are complying all the norms prescribed by the statutory authorities’ i. e. Telangana State & A. P. Pollution Control Board.

The Company is very much concerned for safety of men and machines through safety awareness training programs.

The information required under section 134(3)(m) of the Companies Act, 2013 is given in Annexure-2.