W H Brady & Co Ltd Management Discussions

BUSINESS OVERVIEW

W. H. Brady & Company Limited was founded on June 13, 1913 with a mission to introduce and extend modern technology to all regions within India. The Company now prides itself in playing a vital part in the changing landscape of the countrys infrastructure. We represent leading Global Technology Companies in India for Airports and Highways. Through our Principals, the Company can provide complete support services and solutions for the Aviation and Highways sectors in India.

Your Company has been involved in Trading of standardized Material Handling Equipment for over 20 years. These products are distributed throughout India by a large network of dealers and distributors which are manufactured by its subsidiary Brady & Morris Engineering Company Limited. Your Company has an inherently strong corporate culture that is prevalent throughout its nationwide presence. Our focus on customer satisfaction is always upheld through our goal, Quality our Legacy, which permeates through our organization, employees, products and services.

W.H. Brady & Company Limited offers state of the art systems and solutions for the Aviation & Highways Sectors in association with leading Global Technology Companies. We are experts in providing the following services:

INFRASTRUCTURE

Pre-Sales Support & Due Diligence, Project Management, Project Execution, Logistics and After Sales Support.

AVIATION

Air Traffic Control, Airport Terminals and Air Cargo Terminals.

TRADING

W. H. Brady & Company Limited has been involved in the trading of standardized Material Handling Equipment since the last 70 years with a client base ranging from Africa to South East Asia. In India, these products are mostly sold through its dealership network. All products are tested within India and are made as per Indian Standards.

OPPORTUNITIES AN D THREATS

The competitive business environment, the Company operates in, makes innovation imperative for success of the business. Recognizing the need to improve, expand and innovate, the Company is concentrating efforts on research and development of alternate materials and new products. The Company expects to take advantage of the growth opportunity provided by the Indian economy.

The domestic market continued to be affected by, Macro economic problems, high inflation, petroleum product prices, interest rates and poor consumer sentiments and volatility in foreign exchange rates, challenging market environment and slowing consumer demand. In spite of all this, your company was able to sustain its market share.

OUTLOOK

The Management consciously and carefully exploring new opportunities to further improve its activities.

RISKS & CONCERNS

The Companys business is exposed to many internal and external risks and it has consequently put in place robust systems and processes, along with appropriate review mechanisms to actively monitor, manage and mitigate these risks. The risks that may affect us include, but are not limited to:

• Economic Conditions.

• Inflation pressures and other factors affecting demand for our products.

• Competitive market conditions and new entrants to the market.

• Labour shortages and attrition of Key Staff.

• Compliance and regulatory pressure including changes to tax laws.

• Natural Calamity risks.

The Company is committed to manufacture and deliver quality products strictly as per requirement of the customers by ensuring safety and well-being of employees throughout the pandemic. Constant feedback from the customers is received and all efforts are made for continuous improvement in process performance and product quality wherever required. With established production, the Company is in a position to maintain production and supply of quality products smoothly. The Company has benefit of its long standing with its customers and can match the prices suitably as and when required. For the above reasons, no major threat is overseen and the Company is confident to face any threat from the competition.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company maintains adequate Internal Control Systems commensurate with the nature of its business, size and complexity of its operations. The internal audit functions of the company are carried out by a firm of Chartered Accountants. The scope and authority of the Internal Audit function is defined by the Audit Committee. To ensure independence, the internal audit function has a reporting line to the Audit Committee of the Board. The Internal Auditors monitors and evaluates the efficiency and adequacy of internal control system in the Company, its compliance with operating systems, Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

The Audit Committee of the Board reviews the performance of the audit and the adequacy of internal control systems and compliance with regulatory guidelines. Significant deviations are brought to the notice of the Audit Committee of the Board of the respective companies and corrective measures are recommended for implementation. The Audit Committee of Board provides necessary oversight and directions to the internal audit function and periodically reviews the findings and ensures corrective measures are taken. This system enables us to achieve efficiency and effectiveness of operations, reliability and completeness of financial and management information and compliance with applicable laws and regulations.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Your Company has focused on identifying internal talent and nurture them through the culture of continuous learning and development, thereby building capabilities for creating future leaders.

Talent is our most valuable asset and we believe that the ultimate identity and success of our Company lies in the excellent quality of our people and their commitment towards attaining our Organizational goal.

The Companys various employee engagement platforms and initiatives have resulted in a vibrant, productive and enjoyable work environment. A structured approach to career development, leadership development, internal job rotations, and mentoring helps employees grow their careers and realize their potential.

FINANCIAL PERFORMANCE

The highlights of financial performance of the Company for the year under review are as under:

a. Revenue from operations decrease by 21.02% to Rs.2949.76 Lakhs from Rs. 3734.80 Lakhs.

b. The Net profit after tax for the year grew by 11.39% to Rs. 316.67 Lakhs from Rs. 284.28 Lakhs.

c. The Working capital (Net of Current assets) increased by Rs. 507.84 Lakhs i.e. from Rs. 343.24 Lakhs to 851.08 Lakhs.

d. Key Financial Ratios:

e. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof: The return on net worth decreased to 8.17% in FY 2024-25 as against 8.97% in FY 2023-24.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objective, projections, and expectations may be "forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to various risk factors and uncertainties. These risk factors and uncertainties include the economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in government regulations and policies that may impact our businesses as well as ability to implement our strategies. We are under no obligation to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events and assume no liability for any action taken by anyone on the basis of any information contained herein.