Tarapur Transformers Ltd Management Discussions

ANNEXURE-C

INDUSTRY OVERVIEW

The transformer distribution industry in India remains crucial for delivering electricity efficiently to end- users, playing a vital role in electrifying every household and village. The Indian governments push to provide quality power through schemes like DDUGJY, IPDS, RAPDRP, and Saubhagya has significantly increased the demand for distribution transformers. Additionally, the Department of Heavy Industrys holistic Mission Plan, supported by IEEMA, aims to bolster the domestic electrical equipment sector, including transformers and other related equipment. Government initiatives such as UDAY, designed to financially stabilize power distribution companies, have accelerated infrastructure upgrades and refurbishment of existing T&D networks. These efforts are addressing issues across the country, from the remotest villages to urban centers, thereby sustaining high demand for transformers, which are essential for effective energy distribution.

The transformers industry in India is poised for significant growth, driven by increasing demand for electricity, government initiatives, and advancements in technology. India is one of the largest markets for transformers, supported by its extensive power generation and distribution network. The industry encompasses a wide range of products, including power transformers, distribution transformers, and special purpose transformers, catering to various sectors such as utilities, industrial, commercial, and renewable energy.

SWOT (STRENGTH, WEAKNESS, OPPORTUNITIES AND THREATS)

RATIO:

SEGMENT WISE PERFOMANCE OR PRODUCT-WISE PERFORMANCE:

During the Financial year 2024-2025, your Company has achieved Total Turnover of Rs. 121.47 Lac and has incurred Net Profit of Rs 1615.01 Lacs.

The Company has net worth of about Rs. 63.61 Lac as on March 31, 2025.

Company operates in segment of Manufacturing of Transformers. Company has a very wide range of distribution and power transformers varying from Single Phase Transformers, 3 phase Transformers, Power Transformers, Extra High Voltage Transformers, Special Purpose Transformers catering to various Electricity Boards of Maharashtra. The Company supplies through direct orders from Distribution Company and also through major private contractor companies.

OUTLOOK FOR THE COMPANY:

The transformer market in India has been stable for quite some years now. The market is expected to witness healthy growth rates and stimulating demand for the coming years.

RISK & CONCERNS

The major risk factors affecting the Company are over capacity in industry, non-lifting of ready materials due to cash constraints at customers end building inventory and liquidity issues, increase in receivable positions due to delay in payment by certain customers, uncertainty in execution of low fixed price orders. The wide fluctuation of rupee against US Dollars also affects margin since the key raw materials, viz. copper, transformer oil, special steels for lamination, etc., are of import origin. Our future results of operations could potentially be affected by the following factors:

• Our ability to manufacture transformers as per the requirement of our clients;

• Our ability to continuously operate and maintain our manufacturing facilities optimally;

• Our ability to continue to source raw material at competitive rates;

• Our ability to manufacture transformers using the latest technologies in terms of modern materials, components and processes.

• Our ability to generate working capital funds at reasonable interest rates.

HUMAN RESOURCES AND INDUSTRIAL RELATION:

The company has maintained very harmonious & cordial Industrial relations. There is continuous emphasis on development of human resources through training. The issues pertaining to workers are resolved in harmonious and in cordial manner through regular interactions. We believe whatever we achieved from where we started our journey long back is the result of efforts of our team. So, we consistently aim to provide a sustainable environment for learning right from the stage of recruitment to retention.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The company has adequate internal control system commensurate with the size of the operations by a Company. The Audit committee periodically reviews the implementation of management policies to ensure that transactions have been accurately recorded and promptly reported.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGES OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALOGWITH DETAILED EXPLANATION THEREOF

DETAILS OF ANY CHANGES IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

The company has incurred profit of Rs 1615.01 lacs for the financial year 2024-2025 as compared to net loss of Rs. (124.90) lacs for the previous financial year 2023-2024. In the current year, the return on Networth of the company is (217.33) compared to 5.82 in the previous year.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis Report, describing the Companys objectives, projections and estimates, are forward-looking statements and progressive within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include global and

domestic demand and supply conditions affecting selling prices, input availability and prices, changes in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.