ACI Infocom Ltd Management Discussions

1. Industry structure and developments, opportunities and threats:

The real estate sector in India is comprised of 4 sub-sectors i.e. housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. There is a rapid increase in Indian infrastructure and construction industry in last decade. However, the outbreak of the Coronavirus (COVID-19) pandemic and subsequent lockdown restrictions weighed on the industrys output last year. The ongoing Coronavirus pandemic, beginning its impact from November 2021, had adversely affected economic activities and home buyer sentiment on the demand side, and led to stoppages and delays in construction activities and project completions, respectively, on the supply side. Therefore, the construction industry of the country suffered a significant deal.

Though, in the recent past, the industry witnessed a slowdown. But due to speedy urbanization, softening of interest rates on home loans, Reduction in stamp duty on registration of properties in various states, favorable government policies and initiatives like development of smart cities, Real Estate (Regulation and Development) Act, 2016 (RERA) etc. growth in real estate sector is expected to be on rise due to increase in urban housing and commercial space demand. This will create a great opportunity for the construction industry in affordable housing and commercial space.

ACI Infocom Ltd is all set to target the rising demand of affordable housing and commercial space in small- medium cities of India where the size of project in terms of capital investment are relatively low as compared to medium - big cities/ metros. This will give steady and safe growth to the company. The company is also focusing on redevelopment projects, construction contracts and development projects.

The Company is having excellent team and network of contractors to support and achieve its vision.

2. Opportunities & Threats:

Opportunities:

a. Concentrating in one sector makes the company mature in the industry and gain efficiency in operations.

b. Growing preference for online platform.

c. Rural development.

Threats:

a. Competition from low cost imported products.

b. Manpower costs are rising as many large companies are mopping, but the availability of talent pool supply is limited. Thus, for small and mid-range companies, retaining high quality manpower is a concern

3. Internal control and their adequacy:

ACI Infocom Ltd has an effective system of accounting and administrative controls supported by an internal audit system with proper and adequate system of internal check and controls to ensure safety andproper recording of all assets of the Company and their proper and authorised utilization.

As part of the effort to evaluate the effectiveness of the internal control systems, our Companys internal audit committee reviews all the control measures on a periodic basis and recommends improvements, wherever appropriate.

4. Outlook:

To drive the virtuous cycle of infrastructure investment and job creation, the Union Government has considerably increased the capital expenditure outlay to Rs. 10 Lakh Crore, which is 33% higher than the previous year. The increase in infrastructure spending, especially in tier II and tier III cities is anticipated to have a substantial effect on the Indian economy, generating new employment opportunities and stimulating growth.

The industrys growth will also be supported by the governments focus on boosting local manufacturing sector to become self-reliant and reduce dependency on imports. In addition, the governments targets to construct 10 million affordable houses and increase the share of renewable energy in total installed power capacity to 60% by 2030 will support the industrys growth over the medium and long term. The industrys growth will also be supported by the governmentsplan to significantly increase the stock of affordable housing units for low and middle-income cohorts, under the Housing for All program by 2022.

Overall, the demand conditions in India remain conducive to supporting economic activity. India faces the coming financial year with confidence imparted by underlying and overall macroeconomic stability, while being on the alert against geo-political and geo-economic risks.

5. Risks and Concerns:

Construction industry is highly risk prone, the industry is easily affected by various risks such as Construction risk, Design risk, Environmental risk, Financial risk, Sub-Contractors risk, Procurement risk, Legal risk etc. To overcome the challenging business environment, the Company has proactively undertaken the steps and mitigation procedures/plans are being formulated and monitored to reduce, if not totally eliminate, the risks associated with the above.

6. Discussion on financial performance with respect to operational performance, segment wise performance:

(Rs. In lakhs)

Particulars	Financial year
	2026	2025
Net Sales/Income	54.38	51.98
Construction cost/Cost of Technical cont.	0.00	0.00
Employee Benefit	10.50	11.70
Other expenditure	216.51	123.88
Other income	54.38	86.80
Finance cost	0.00	0.00
Depreciation	0.00	0.00
Profit before tax	(185.41)	(46.31)
Tax	0.00	6.84
Profit after tax	(185.41)	(53.16)

7. Material developments in human resources / industrial relations front, including number of peopleemployed:

Our people are our most important asset and we value their talent, integrity and dedication. Our responsibilities towards our people, who are instrumental to our success with their devotion and relentless support covers a quantum part of the company strategy. We believe that training is essential

to build skill sets in growing organization. The focus has been to create an environment where performance is rewarded, individuals are respected and associates get opportunities to realize their potential. As in the past, industrial relations continued to remain cordial in the Company. There was no strike or labour unrest during the period under review.

8. Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor, including:

Particulars	FY 20252026	FY 20242025	% Change	Explanation for >25% change
Current Ratio	55.50	9.20	503.21%	Ratio higher due to decrease in loans and advances compared to previous period
Debt-Equity Ratio	NA	NA	NA	Company not having any debt.
Debt Service Coverage Ratio	NA	NA	NA	Company not having any debt.
Return on Equity Ratio	(0.12)	(0.03)	275.74%	Ratio higher due to increase in Loss during the CY . cost of operations in PY was NIL company not having any trade receivables in PY. company not having direct expenses in PY.
Inventory Turnover Ratio	(0.12)	(0.03)	NA
Trade Receivables Turnover Ratio	-	NA	NA
Trade Payables Turnover Ratio	-	NA	NA
Net Capital Turnover Ratio	-	NA	NA	Revenue from operations in PY was NIL
Net Profit Ratio	(185.41)	NA	NA	Revenue from operations in PY was NIL
Return on Capital employed	(0.13)	(0.03)	351.48%	Loss in Current Year

9. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof:

Particulars	FY 2025-2026	FY 2024-2025
Net-worth	14,51,41,160.18	16,36,82,031.28

	By Order of The Board of Directors
	For ACI INFO COM LIMITED
Regd Office:	Sd/-
Off No. 512, 5th Floor, Hubtown Solaris,	Sanjay Natvarlal Mandavia
NS Phadake Road, Saiwadi, NR Flyover Bridge,	Whole Time Director
Andheri East, Mumbai 400069	DIN:03606814
CIN: L72200MH1982PLC175476	Sd/-
	Nidhi Dhanuka
Date: August 27, 2026	Director
Place: Mumbai	DIN: 00326545