Sri KPR Industries Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS:

As informed during earlier years, the company has discontinued the business of sale A.C. Pressure Pipes. There is also no Government Drinking Water Supply Schemes on hand except Operation & Maintenance of one scheme. The payment towards supply of Wind Power located in Andhra Pradesh are being received on regular basis, including its 100% subsidiary of M/s. Sri KPR Infra & Projects Ltd. Similarly, the payments of supply of wind power to Central Railways from M/s. Sri Pavan Energy Pvt. Ltd, a 100% subsidiary of M/s. Sri KPR Infra & Projects Ltd are also coming on regular basis.

In regard to collapse of 2 MW Wind Mill of Madhya Pradesh, the respected shareholders are aware that the claim of compensation is pending before the Honble Arbitral Tribunal. Meanwhile during the month of June2026. M/s. Siemens Gamesa Renewable Power Pvt. Ltd came forward for settling the dispute through discussions/negotiations, which are now under progress. The outcome of discussions/negotiations shall be informed to the shareholders through BSE once the discussions/negotiations are concluded.

OPPORTUNITIES (REAL ESTATE BUSINESS):

All the required approvals were received from shareholder vide postal ballot dated.30.6.2022, and the required resolution was approved during the 37^th AGM held on 30.9.2025, for developing the factory land in to open plot layout/villa project, but the same could not be grounded because of slump in the real estate market. The project will be taken up at an appropriate time once the real estate market is revived.

OUTLOOK, RISKS AND CONCERNS:

The outlook for the company, seems to be fair with small risks and concerns to be faced in real estate as faced by the industry in general.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal audit and control systems. Both internal auditors and statutory auditors independently evaluate the adequacy of internal control system. Based on the audit observations and suggestions, follow up, remedial measures are being taken including review and increase in the scope of coverage, if necessary. The Audit Committee of Directors, in its periodical meetings, reviews the adequacy of internal control systems and procedures and suggests areas of improvements.

Information technology base created by the Company over the period is providing a very useful helping hand in the process. Needless to mention, that ensuring maintenance of proper accounting records, safeguarding assets a gainst loss and misappropriation, compliance of applicable laws, rules and regulations and providing reasonable assurance against fraud and errors will continue to remain central point of the entire control systems.

FINANCIAL PERFOMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Standalone:

During the year under review, the total revenue has decreased from INR 4.27 Cr. to INR 2.79 Cr. The reduction in revenue is mainly attributed to collapse of Madhya Pradesh 2MW Wind Turbine. Accordingly, the PAT for the year has decreased from INR 1.45 Cr. to INR 0.54 Cr. The earning per share for the year is INR 0.21/- as against INR 0.72/- for the previous year.

Consolidated:

Under the consolidated balance sheet during the year, the total revenue has decreased from INR 16.37 Cr. to INR 15.66 Cr. However, the PAT has increased from INR 4.61 Cr. to INR 6.51 Cr. due to increase in profits of its subsidiary Sri KPR Infra & Projects Ltd & Step-Down Subsidiary, Sri Pavan Energy Pvt. Ltd. The earning per share is INR 3.17/- as against INR 2.29/- of the previous year.

Human Resource Development

Human resource is considered as key to the future growth strategy of the Company and looks upon to focus its efforts to further align human resource policies, processes and initiatives to meet its business needs. In order to focus on keeping employees abreast of technological and technical developments.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities, laws and regulations. Actual results may differ materially from those expressed in the statements. Important factors that would influence the Companys operations include tax laws, procedural hurdles of Government Agencies, delay in execution of Villa project, delay in release of wind Electric payments, economic developments and such other factors within the Country.