Sizemasters Technology Ltd Management Discussions

The Management Discussion and Analysis Report of the company for the financial year ended on March 31, 2025 is as under:

(a) Industry Structure and Development

The Company is in the business of manufacturing, sales and distribution of various types of gauges such as thread gauges, thread ring and Plug gauges, Setting Plug gauges, adjustable ring gauges, API gauges, taper thread plug gauges, special gauges, fixtures, multi gauging, electronic gauging, measuring instruments used in Oil and Gas industry, all tools such as dial gauges and accessories.

The Company has obtained ISO 9001: 2015 Certificate which provides that the management system is in accordance to the TUV India procedures.

Further, the Company has obtained Certificate of Authority from The American Petroleum Institute to use the official API Monogram on the manufactured products.

During the current financial year, the company has made turnover of Rs. 1417.34 lakhs.

(b) Opportunities and Strength

We are envisaging huge growth in the manufacturing and distribution sector in the new line of business. The Company is in transit to successfully spreading its reach in various parts of the country where it is being less represented. We are exploring the possibility of manufacturing the various types of gauges with the help of technically advanced machineries.

Further, the Company has expanded its business in collaboration with other body corporates engaged in the line of infrastructure and development of telecom network sector and calibration and engineering services, trading of measuring instruments and gauges.

(c) Segment-Wise and Product-Wise Performance

The Company is engaged in the business of manufacturing, sales and distribution of precision gauges, thread gauges, API gauges, special gauges, fixtures, multi gauging, electronic gauging, measuring instruments used in Oil and Gas industry, all tools such as dial gauges and accessories. As the company is primarily engaged in the activities of Manufacturing and Trading, all activities are related to one segment and there is no other segment as per the Ind AS 108 "Operating Segments".

The Company has involved its business in the production of various types of gauges and tools and have managed to obtain the valid affiliations from different departments which are in accordance to its standards.

Companys lab is approved by the National Accreditation Board for Laboratories (NABL) according to ISO/IEC 17025:2017.

(d) Outlook

Within this dynamic environment, the company is continuously working on to provide assured quality products and best in class services to our customers. Our technicians are trained well in advance to deliver the new product offerings as per the requirement of each distinct project.

(e) Risk and Concerns

The major risk associated with respect to our business is that:

i). The Company depends on the expertise of our senior management and skilled employees the results of operations may be adversely affected by the departure of our senior management and experienced employees.

ii). Changes in technology may render our current technologies obsolete or require us to make substantial capital investments in order to cope with the continuous technical advancements.

iii). Recent collaborations of the company with other body corporates comes with risk of dependency of the company on such body corporates in their respective line of business.

The Directors of the Company identify, monitor and discuss on the steps to be taken in order to minimize the risk and also to identify the business opportunities on regular basis.

(f) Internal Control Systems and its Adequacy

The internal control systems for safeguarding and protecting assets of the Company against loss from unauthorized use or disposition are in place. The Internal Audit is processed to design to review the adequacy of internal control checks in the system and covers all significant areas of the Companys operations.

Regular internal audits, review by management and documented policies, guidelines and procedures supplement the internal controls which are designed to ensure that financial and other records are reliable for preparing financial information and other data and for maintaining accountability of assets. The Audit Committee reviews the effectiveness of the Companys internal control system.

(g) Discussion on Financial Performance with respect to Operational Performance

The total revenue from operations from such activities and other income for the period under review amounts to INR. 1485.01 lakhs as against INR. 1161.46 lakhs in the previous year.

Net profit after Depreciation and taxes has been INR. 261.70 lakhs as against INR. 233.41 lakhs during the previous year.

Earnings per share for the reporting financial year is INR. 2.71 as against INR. 2.33 for the previous year.

The Directors are expecting to provide better performance and results in the upcoming year to the shareholders.

(h) Material Development in Human Resources/ Industrial Relations

The Company recognised the significance of Human Resources as one of the most important ingredients to fuel future growth and progress of the organization. Companys focus on promoting wellbeing of its employees, providing safe and congenial work environment continues. Training of employees to maintain high level of motivation is an ongoing process. The companys strong focus is on employee development, providing a satisfying work environment, performance appraisal and counselling and appropriate empowerment.

Career development opportunities are provided at all levels and across all functions. Industrial relations at all the units remained cordial during the year

(i) Details of Significant Changes in key financial ratios:

Ratios	2024-25	2023-24	Variance	Reason for variance
Current ratio	2.57	3.27	-21%	-
Debt-Equity ratio	0.14	0.20	-32%	Repayment of Short-term borrowing has improved the ratio
Debt service coverage ratio	1.41	1.09	29%	Repayment of Short-term borrowing has improved the ratio
Return on Equity Ratio	0.20	0.21	-9%	-
Inventory turnover ratio	1.64	1.42	16%	-
Trade Receivables turnover ratio	4.52	4.33	4%	-
Trade payables turnover ratio	1.98	3.90	-49%	Increase in manufacturing and trading activity which leads to increase in purchases during the year
Net capital turnover ratio	1.24	0.93	34%	Increase in revenue from operations and also increase in current assets & current Liablities
Net profit ratio	0.18	0.21	-13%	-
Return on Capital employed	0.21	0.22	-3%	-
Return on investment	0.09	0.10	-8%	-

(j) Disclosure of Accounting Treatment:

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standard: our company has followed all required accounting standards also disclosed significant accounting policy. Financial statements include balance sheet, profit and loss, cash flow statement with schedules/Notes.

(k) Cautionary Statement

The Statements in the "Management Discussion and Analysis Report" describe the Companys objectives, estimates and expectations, which may be a forward-looking statement within the meaning of applicable laws, rules and regulations. The actual results may differ from those expressed or implied, depending upon the economic conditions and policies of the Government. Important factors that could make a difference to your Companys operations include competitive actions, disruptions caused by pandemic and natural calamities, changes in Government regulations, tax regimes, economic developments in India and other incidental factors.

By the order of the Board

For SIZEMASTERS TECHNOLOGY LIMITED

Sd/-

GOPAL ZANWAR

CHAIRMAN & MANAGING DIRECTOR

DIN: 09537969

Date: August 12, 2025

Place: Pune