Shri Balaji Valve Components Ltd Management Discussions

1. INTRODUCTION:

Our Company was originally incorporated on November 17, 2011 as Shri Balaji Valve Components Private Limited vide Registration No. 141370 under the provisions of the Companies Act, 2013 with the Registrar of Companies, Pune Maharashtra. The name of our Company was changed from Shri Balaji Valve Components Private Limited to Shri Balaji Valve Components Limited vide Fresh Certificate of Incorporation dated July 10, 2023, Consequent upon Change of Name pursuant to Shareholders Resolution passed at the Extra Ordinary General Meeting held on June 26, 2023 and New Corporate Identification Number U29220PN2011PLC141370. Further our Company has issued share pursuant to Initial Public Offer (IPO) and listed on SME platform of BSE LTD on 03rd January 2024.

2. OVERVIEW OF BUSINESS

Incorporated in the year 2011, we are engaged in the business of engaged in the business of manufacturing ready-to-assemble valve components catering to the manufacturing of valves. We manufacture and supply various types of valve components which are used in the manufacturing of ball valves, butterfly valves and other valves, including forging products. Further, our manufacturing system has been certified for the establishment and application of the Quality management system for the manufacturer of materials according to Directive 2014/68/EU by PED & the products manufactured by closed die forging have been certified to comply with the requirements specified by NORSOK.

3. SWOT ANALYSIS:

A) OPPORTUNITIES

In September 2021, the Government of India took significant strides towards promoting electronics manufacturing and bolstering the electronics industry within the nation. Among the notable initiatives are Make in India, National Policy on Electronics, Production Linked Incentive (PLI) Scheme, Electronics Manufacturing Clusters (EMC), and several others.

These initiatives collectively lay the groundwork for a supportive and conducive environment that fosters growth and innovation in the electronics sector. As a result, they have sparked a surge of interest among companies like ours to venture into this field.

The forward-looking policies not only encourage domestic manufacturing but also create an atmosphere ripe for technological advancements and investments. Consequently, this has led to an increased demand for various electronic parts and modules, representing an immense opportunity for companies like ours to thrive

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B) THREATS

We procure and sell the latest technology electronic products from all across the globe. any diverse change in the geopolitical scenario and Govt. policies can adversely affect our Supply chain/ Business.

C) STRENGTHS

We believe the following business strengths allow us to successfully compete in the industry:

a) The alignment of government priorities with the Make in India campaign, particularly concerning electronic products, is set to generate substantial demand within this industry. As a company, we find ourselves excellently positioned to capitalize on this opportunity.

b) Extensive and diverse portfolio of electronic items and parts along with content rich platform

c) Strong, diverse and growing customer base

d) Scalable and reliable technology platform

e) Experienced Promoters with strong management team having domain knowledge

f) Consistent track record of profitable growth and strong financial performance

D) WEAKNESS

Our business is subjected to various risks and uncertainties, and the weakness factors including the following:

a) General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies.

b) Changes in consumer demand.

c) Changes in laws and regulations that apply to the industries in which we operate.

d) Our failure to keep pace with rapid changes in technology;

4. MITIGATION OF RISK /RISK MANAGEMENT

The Board assesses and classifies risks across various domains such as operations, finance, marketing, regulatory compliance, and corporate affairs. The Internal Auditor, Statutory Auditor, and Company Secretary provide their insights on risk levels while auditing specific areas, reporting to the Audit Committee. The company is proactively implementing immediate and future-oriented measures to minimize any potential risks that might emerge.

5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.

6. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Share Capital;

During the year under review, there is no changes in the share capital of the company.

Reserves and Surplus;

The Reserves and Surplus of the Company are Rs. 4,474.32 lacs as of the period ended on 31st March 2026.

Total Income;

The Company has earned total income of Rs. 9,834.07 lacs as on the period ended on 31st March 2026.

7. CORPORATE GOVERNANCE

In addition to the applicable provisions of the Companies Act, 2013 with respect to Corporate Governance, provisions of the SEBI (LODR) Regulation, 2015 will also have complied with the extent applicable to our Company immediately upon the listing of the Equity Shares on the Stock Exchange.

Our Company stands committed to good Corporate Governance practices based on principles such as accountability, transparency in dealings with our stakeholders, emphasis on communication and transparent reporting.

We have complied with the requirements of the applicable regulations, in respect of corporate governance including the constitution of the Board and Committees thereof. The Corporate governance framework is based on an effective Independent Board, the Boards Supervisory role from the executive management team and the constitution of the Board Committees as required under law.

The Board functions either as a full board or through the various committees constituted to oversee specific operational areas. As of the date, there are Five Directors on our Board out of which one-third are Independent Directors. Our Company complies with the corporate governance norms prescribed under the Companies Act, 2013, particularly in relation to the appointment of Independent Directors to our Board and the constitution of Board-level committees. Our Company undertakes to take all necessary steps to continue to comply with all the requirements of the SEBI (LODR) Regulation, 2015 and the Companies Act, 2013.

8. MATERIAL DEVELOPMENTS IN THE HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING THE NUMBER OF PEOPLE EMPLOYED

Our Company follows a policy of building strong teams of talented professionals. People remain the most valuable asset of your Company. The Company recognizes people as its most valuable asset and the Company has kept a sharp focus on Employee Engagement. The Companys Human Resources is commensurate with the size, nature and operations of the Company. In continuous development company is also providing the health Insurance policy of recognized Insurance company M/s ICICI Lombard to our employee. This provides the benefit of Health coverage up to the sum of Rs. 1,00,000 per person.

9. CAUTIONARY STATEMENT

This report contains forward-looking statements based on the perceptions of the Company and the data and information available to the Company. The Company does not and cannot guarantee the accuracy of various assumptions underlying such statements, and they reflect the Companys current views of future events and are subject to risks and uncertainties. Many factors like changes in general economic conditions, amongst others, could cause actual results to be materially different.