TAAL Enterprises Ltd Management Discussions

Industry Structure and Developments:

We are pleased to inform you that, the Honble National Company Law Tribunal, Bengaluru Bench vide order dated May 21, 2025 has sanctioned the Scheme of Amalgamation of TAAL Tech India Private Limited (Transferee Company) with the TAAL Enterprises Limited (Transferor Company) with effect from 27th June, 2025. TAAL Enterprises Limited is now, effectively, an ER&D company providing Engineering Design services across a wide range of domains including Plant Engineering, Product Engineering, Architecture and Building Information Modeling. Your company has a strong and loyal customer base primarily in the U.S. and in Europe and is committed to build long term relationships.

Your Company has adopted a measured approach to reducing greenhouse gas (GHG) emissions as part of its environmental, social, and governance (ESG) strategy. We are making active choices to reduce our environmental impact including our carbon emission.

We have a diversified presence in the Engineering domain both from a customer as well as capability perspective. Hence we are well hedged against demand fluctuations in the market. At the current time your company is seeing a good demand for its services and is well poised to take advantage of this situation. We are making careful investments in increasing both our sales network as well as our delivery capabilities.

Our internal control systems are designed to ensure that financial records are conservative and reliable. The Company has a proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and that transactions are authorized, recorded and reported correctly.

The financial performance of the Company for Financial Year 2024-25 as Compared to the corresponding previous year is given below:

As on March 31, 2025, the Company had one material subsidiary viz. TAAL Tech India Pvt. Ltd. (‘TTIPL) engaged in providing ER&D Services customized to the specific needs of every individual customer.

The Financial Performance of TTIPL for the Financial Year 2024-25 as compared to the corresponding previous year is given below:

Human Resource Management is critical to the successful functioning of our Company. Therefore it is our endeavour to nurture a high performance culture with a clear focus on efficiency, innovation, and talent growth.

In accordance with the Listing Regulations, as amended, the Company is required to provide details of significant changes (Change of 25% or more as compared to the immediately previous financial year) in key sector specific financial ratios. The Company has identified the following ratios as key financial ratios:

a) Net Profit Margin ratio, Return on Net Worth, return on equity was impacted as i) There is a dividend income received in current year as compared to previous year and ii) increase in fair value of investment made during the year.

Statements in the Management Discussion and Analysis describing the Companys expectations or predictions are ‘forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include demand-supply conditions, changes in Government regulations, tax regime, economic developments within the country and other factors such as litigation.