Starlog Enterprises Ltd Management Discussions

The information, opinions and views expressed in this section of the Annual Report contain certain forward-looking statements which involve risks and uncertainties. The Management has made its best efforts to present this discussion/ analysis and believes these to be true to the best of its knowledge at the time of its preparation.

The crane market in India is experiencing a significant upsurge primarily driven by the countrys rapid urbanization and substantial infrastructural development. This growth trajectory is closely linked to major government projects such as the construction of smart cities, highways and metro projects which have been pivotal in escalating the demand for cranes. Furthermore, the expansion of both residential and commercial real estate sectors is contributing notably to this demand.

The construction sector emerges as the predominant user, employing cranes extensively for high-rise buildings, bridges and other infrastructure projects. Similarly, the manufacturing and industrial sectors are leveraging cranes for heavy lifting in plants and warehouses, while the transport and logistics sector is utilizing them in ports for cargo operations and in various transportation projects. Regarding the types of cranes in high demand, mobile cranes are leading the market due to their flexibility and ease of mobility making them especially suitable for urban construction sites. Tower cranes are indispensable in the construction of high-rise structures, and crawler cranes are sought after for projects requiring heavy lifting over softer terrains.

The competitive landscape of the Indian crane market comprises both domestic and international players, with competition centered around technology, price, and after-sales service. Companies are increasingly adopting new technologies to enhance efficiency, safety and environmental compliance.

The market is set to maintain a positive growth trajectory adapting to technological innovations and evolving market demands.

The Central Governments emphasis on the renewable energy more particularly on wind power generation and solar energy will bound to increase the demand for the crane rental business. In view of the increased investments in the renewable energy sector and upcoming projects in refinery and gas, cement, power and steel sector, the company expects increase in demand and rental for the cranes. Your Company has been providing heavy lift, plant erection and maintenance services to various large-scale projects. Your Company has maintained a good track record in terms of effective deployment of cranes at competitive rates with due regard to time schedule as well as safety and efficiency in operations.

The growth of crane rental business could be constrained due to the high capital cost required in large scale projects.

Furthermore, there may not be suitable cranes available for specific jobs.

The company is primarily engaged in the business of providing cranes on rental basis and business that is ancillary to crane rental. All the commercial operations of the company are based in India. Accordingly, there are no separate reportable segments.

With the growth of infrastructure in India, the Company is cautiously optimistic on the demand for crane rental. However, due to decline in the infrastructure spend in China, large scale imports of used Chinese cranes into India is seen as a threat on the rental rates in India.

Our Company is often required to obtain various licenses, approvals, permissions and registrations for operating, any changes in the regulations or norms by authorities might affect the operations of the Company. In light of various initiatives taken by Government of India to encourage logistics sector and make considerable Investment in this sector, we are likely to predict positive position in near future.

The present global economic conditions are major factor on which business sustainability is dependent, which in wider aspects have an impact on the Indian Economy as a whole.

In respect of crane rental business, issues of concern are inter-state movement of cranes and imposition of entry tax for transiting cranes. Delays in realization of payments from the Companys clients both in private and public sectors is a serious cause of concern. Payment of Goods and Service tax on the basis of billing is a drain on the cash flow of the Company. The demand for cranes will grow once the investments in Infrastructure sector picks up but it will be challenging at prevailing low rental rates.

Starlog is in the equipment rental business, incorporated in 1983. Starlog plans to invest in specialised equipment to meet Indias growing needs for energy, infrastructure and natural resources. Thus, any changes in the capex shall have effect on our business operations and revenue generation.

The principal source of liquidity of our Company is cash and cash equivalent being generated from the operations of the Company which shall have direct variation with the Companys operating profits.

The Company has its entire borrowing in Indian Rupee at fixed rates of interest. It does not have any foreign exchange risk.

The organization is well structured. The Company has adequate system of internal controls commensurate with size and the nature of operation. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use or losses,executingtransactions,properauthorization and ensuring compliance of corporate policies. The Company has an Audit Committee, and it meets the Statutory Auditors to ascertain, inter alia, their views on the adequacy of internal control system in the Company and keeps the Board of Directors informed of its major observations from time to time. It also evaluates the Companys strategic risk management system and suggests risk mitigation measures for all the key operations.

The company periodically inspects its cranes and is monitoring operations on a daily basis.

The financial statements are prepared in accordance with Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India. The results of the operations are discussed in the Boards Report, which forms part of this Annual Report.

Your Company endeavours to create a work environment which is collaborative and learning and growth oriented to enable employees to perform at their full potential. Your Company believes that a motivated and empowered employee base is the key to its operations and business strategy, and has developedalargepoolofskilledandexperiencedpersonnel.YourCompanymaintainacollaborative,inclusive, non-discriminative and safe work culture, and provide equal opportunities to all employees. It believes that such an enabling environment is essential for the Company to deliver value for our customers, shareholders and communities. The Company also takes various measures to keep its employees motivated and committed to their work by providing them a healthy work environment. The Industrial Relations have remained cordial. As on March 31, 2025, the Company had 56 employees (previous year 62 employees) on its roll.

The change in return on net worth of your Company as against the previous financial year is positive at 35.40%. The change in net worth is due to increase in free reserves.

Certain statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factors.