Ace Men Engg Works Ltd Management Discussions

1. OVERVIEW OF THE ECONOMY

Indias economy maintained its position as the fastest-growing major economy in F.Y. 202425, with GDP growth estimated at 6.5%, although this marks a deceleration from the previous years 9.2% expansion. The moderation reflects the impact of tighter monetary policy, elevated energy prices, and a slowdown in gross fixed capital formation and manufacturing, even as private and government consumption remained robust. Construction and manufacturing sectors, in particular, drove growth, with the January- March 2025 quarter registering a strong 7.4% year-on-year increase, outperforming analyst expectations. Inflation moderated within the Reserve Bank of Indias target range, allowing for a steady policy stance, while resilient services exports and a rebound in rural demand further supported economic activity.

2. OPPORTUNITIES AND THREATS

The company is continuously looking forward to expand its business and generate revenue in the coming years. Our long-standing relationship with our major customers has been one of the most significant factors contributing to our growth. Our commitments to quality and customer service practices have been strong contributing factors to our robust customer relations. Even though we do not have any long- term supply agreements with them. During the year the company was not able to generate revenue and due to which there has been an increase in the net loss of the company.

3. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has proper and adequate system of internal control procedure commensurate with its size and nature of the business so as to ensure that all assets are safeguarded from loss, damage or disposition and ensure that all transactions are authorized, recorded and reported correctly and adequately. All operations parameters are periodically monitored and strengthened. The Company continuously upgrades these systems in line with best accounting practices. The internal control system is further supplemented by a programme of internal audit conducted by an independent firm of Chartered Accountants. The Audit Committee of the Board of Directors reviews the effectiveness of internal controls and suggests improvements for strengthening them whenever required.

4. HUMAN RESOURCES

Employees are the key to achieve the Companys objectives and strategies. The Company provides to the employees a fair equitable work environment and support from their peers with a view to develop their capabilities leaving them with the freedom to act and to take responsibilities for the tasks assigned. The Company strongly believes that its team of capable and committed manpower, which is its core strength, is the key factor behind its achievements, success and future growth. We are continuously working to create and nurture an organization that is highly motivated, result oriented and adaptable to the changing business environment. The industrial relations remained cordial during the year.

5. TO CONTINUE EXPANDING OUR BUSINESS BY INCLUDING NEW SERVICES:

We intend to explore opportunities to expand our operations by developing new verticals within our existing lines of business. Further expanding our offerings will help us to build on existing diversification of our business.

6. CAUTIONARY STATEMENT

The statements in this report on "Management Discussion and Analysis", describing the Companys objectives, estimations, expectations or projections, outlook etc., may constitute forward looking statements within the meaning of the applicable Rules, Laws and Regulations. Actual results may vary from such expectations, projections etc., whether express or implied. These statements are based on certain assumptions and expectations of future events over which the Company has no direct control.