Tankup Engineers Ltd Management Discussions

We are engaged in the business of manufacturing specialized vehicle superstructure for complex mobility and storage solutions of various capacities. This involves manufacturing large containers or tank like solutions used for transporting/ storing various materials, which could include liquids, gases or solids, depending on customer product range. These tanks may be custom-built to meet specific client requirements regarding size, material, capacity, and features. We cater to a broad spectrum of end-use industries like: Petroleum, Mining, Infrastructure, Defence etc. Our manufacturing activity involves focus on fabrication of tanks dedicated to delivering mobile solutions that may be deployed for a wide range of commercial use. For example, we manufacture various types of tanks like: Mobile Refueller, Water Sprinkler. Mobile Service Van, Explosive Van, Tank Truck, Blasting Shelter etc. Our diversified range of product applications has helped us evolve as manufacturer of special purpose vehicle with superstructures to address complex mobility and storage solutions required by our customers.

Our focus on mobile solutions is intended to provide convenient solutions for transporting and dispensing goods like: fuel, water, other consumables in complex applications. These mobile tanks facilitate transportation from a storage facility to a remote site. Our tanks are mainly designed to cater to locations where access to products like: fuel, water, explosives is limited, such as construction sites, mining operations or remote industrial facilities. They serve as a backup during emergencies or in areas prone to power outages or disruptions in supply, ensuring continuity of operations. We manufacture these tanks in various sizes and configurations to suit different needs of customers, from smaller units mounted on trailers or skids to larger capacities for heavy-duty applications.

Addressing the specific logistical challenges of industries and operations that rely on diesel fuel, the Refueller manufactured by us is equipped with loT monitored hardware modules where it has Components like: Dispensing Unit. GPS and Lock attached to it. They allow for the controlled dispensing of diesel fuel directly into machinery, vehicles, or storage tanks, ensuring that fuel is delivered where its needed without the need fora fixed fuelling station.

As a part of expanding our operations we are also engaged in fabrication of Mobile Service Vans/Workshop Container which are used as remote service setups for mining and infrastructure. Our unit is also capable of fabricating stainless-steel assemblies that may be used as a raw material required for various industrial applications. Our Company also provides repairs and reconditioning services for these mobility/storage solutions.

Recently our company has initiated to further expand its operations in defence and aviation industry. Our company has received order from Ministry of Defence for supply of specialized vehicles superstructure designed for defence to be delivered at designated IAF station spread across India. We have also received order for supply of refuellers finding application in defence industry.

In its capacity to address aviation industry, our company has successfully developed and delivered ground support equipment for commercial airline operating in India. Moreover, our company has also participated and successfully submitted the tender for supply such ground handling equipment to be deployed at Airport.

Recent orders and successful tender submissions position the company to tap into high-value, long-term government and institutional contracts.

Infrastructure growth, remote mining operations, and increased need for flexible logistics drive demand for mobile tanks and refuelling units.

Custom-built, IoT-cnablcd tanks and mobile superstructures can be scaled to international markets, especially in emerging economics with similar industrial setups.

Participation in government infrastructure or defence modernization initiatives could bring collaborative opportunities.

Changes in defence procurement policies, tender qualifications, or environmental norms could impact operations or delay approvals.

Defence projects often involve long gestation periods, intense scrutiny, and stiff competition from PSUs or global defence contractors.

Fluctuations in the cost of key inputs like stainless steel can affect manufacturing margins.

Rapid changes in smart vehicle technologies or regulatory standards may require constant upgrades and R&D investments.

Significant reliance on government or large corporate contracts may lead to revenue fluctuations if such deals are delayed or cancelled.

Our business activity primarily falls within a single business and geographical segment, i.c. manufacturing of various types of tanks and we do not follow any other segment reporting.

The Continual growth in India sector is necessary to give necessary support to the industry. The company is making all effort to accelerate the growth of its business. It Expect to improve its position in the market by focusing in the technologically advanced and more profitable Product and market segment and working aggressively in the area of productivity, efficiency and cost reduction.

The industry is exposed to the following risk and concerns:

Competitive risk is the chance that competitive forces could prevent the Company from achieving its goal on account of declining revenues or margins.

Mitigation: The Company focuses on superior quality service and affordability. The Company knows its competitors and its customers and with differentiated services and marketing strategies mitigates this risk to a greater extent.

This risk includes a disruption of Companys business due to operational inefficiencies in existing technologies and IT processes.

Mitigation: The Company emphasizes on the analysis of security threats and their impact using the latest technologies which are periodically upgraded.

Market risk is the risk of losses in positions arising from movements in market prices.

Mitigation: The Director of the Company are vigilant on roles and responsibilities in understanding the movements and market situations.

Workforce risks can arise from issues such as critical skill shortages, increasing staff attrition or significant workforce retirement.

Mitigation: The Company trains its employees and ensures best HR practices, while carrying out improvements and rewards to attract and retain the best talent in the industry.

5) Policy Risk

Policy risk concerns the possibility that national governments acting in their sovereign capacity amend policy environments in ways that adversely impacts the financial stability of the Company.

Mitigation: The Company is proactive in monitoring and abiding by policies in a timely manner.

Supply chain risks include logistical, economic, political, cultural, competitive and infrastructural concerns.

Mitigation: The Company is continuously working on a comprehensive management strategy to counter supply chain disruptions through a holistic approach. By diversifying its suppliers the Company expects to moderate risk factor.

Compliance risk captures the legal and financial penalties for failing to act under internal and external regulations and legislature.

Mitigation: The Company is aware of the legal, financial, reputational, and business impact due to non-compliance risk. The Company has a system to ensure regular compliance and monitoring thereof

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.

Financial Year 2024-25 was marked by a strong performance across all geographies and product categories, with market share gains and improvement in operating margins, as compared to the previous Financial Year. The Revenue from operations has increased from Rs. 1941.86 Lakhs for financial year ended 31" March, 2024 to Rs. 2029.59 Lakhs for financial year ended 3T March, 2025 while net profit has decreased from Rs. 248.17 Lakhs for financial year ended 3T March, 2024 to Rs. 152.34 Lakhs for financial year ended 31" March, 2025.The Reserve and Surplus of Company has decreased from Rs. 334.15 Lakhs for financial year ended 31^s March, 2024 to Rs. 275.61 Lakhs for financial year ended 31^st March, 2025.

Further, our focus remains on strengthening our balance sheet as we fund our expansions through our internal accruals.

Your 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.

The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards applicable under Rule 2 of Companies (Accounting Standards) Rules, 2021 to the extent applicable and the relevant provisions of the Companies Act, 2013. The Ind AS are not applicable to the company in terms of SEBI guidelines. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company.

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