Advance Multitech Ltd Management Discussions

Annexure D to Board Report

Your Directors have pleasure in presenting the management discussion and analysis report for the year ended on March 31, 2026.

1. Industry Structure and developments.

Textile Industry:

During the period under review, the Company was engaged in the manufacturing of Rubber Belts and Conveyor Belts.

The Indian textile and manufacturing sector continues to play an important role in the countrys economic and industrial development, with significant contributions to employment, exports and domestic consumption. The performance of the textile sector is influenced by factors such as domestic and global demand, consumer spending, disposable income, employment conditions, raw material prices, availability of credit and overall economic activity.

The sector is also witnessing increasing emphasis on technological advancement, sustainability, technical textiles and strengthening of domestic manufacturing capabilities. The Government of India continues to support the sector through various initiatives, including the Production Linked Incentive (PLI) Scheme for textiles, PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks, the National Technical Textiles Mission and other export-promotion and capacity-building measures. These initiatives are aimed at enhancing manufacturing capacity, improving competitiveness, promoting exports and strengthening Indias position in global textile value chains.

Despite challenges arising from fluctuations in global demand, input costs and international trade conditions, the Indian textile sector has demonstrated resilience. Indias exports of textiles and apparel, including handicrafts, stood at ?3,25,339 crores in FY 2025-26, registering growth of approximately 1.8% over the previous year. The Government of India continues to promote domestic manufacturing, investment, technological upgradation and export competitiveness through initiatives under Make in India and sector-specific schemes.

2. Opportunities and Threats

Opportunities

Low cost skilled labour

Presence across the value chain

Growing domestic market

Recent government efforts to promote the industry.

Threats

Effect of historical government policies

Tech obsolescence.

Quality is not consistent

Delay in delivering the goods at the right time.

3. Segment-wise or product-wise performance:

4. Outlook

The global textile industry demonstrated resilience during FY 2025-26 amid inflationary pressures, geopolitical uncertainties, fluctuating demand and input cost challenges. Asian economies, including India, Bangladesh and Vietnam, continued to remain key participants in global textile and apparel supply chains. Indias textile and apparel exports, including handicrafts, stood at approximately ?3.25 lakh crore during FY 2025-26, registering a growth of 1.8% over the previous year.

Outlook for FY 2026-27

With improving macroeconomic conditions and gradual recovery in global demand, the outlook for the textile sector remains cautiously positive. Key focus areas include:

Strengthening backward integration and automation.

Expanding into value-added and technical textile segments.

Increasing presence across domestic and digital channels.

Enhancing ESG practices and reducing carbon footprint.

5. Risks and Concerns

Raw Material Price Volatility: Fluctuations in the prices of rubber, synthetic compounds, steel and other key inputs may impact margins.

Demand and Economic Risks: Changes in industrial activity, infrastructure spending and global economic conditions may affect demand.

Foreign Exchange and Trade Risks: Currency fluctuations and changes in international trade policies may impact costs and export competitiveness.

Regulatory and Environmental Risks: Increasing environmental and regulatory requirements may result in additional compliance costs.

The Company seeks to mitigate these risks through diversified sourcing, long-term supplier relationships, operational efficiencies and continuous monitoring of market conditions.

6. Internal Control System and their adequacy

The Company maintains adequate internal control systems, which provides, among other things, reasonable assurance of recording the transactions of its operations in all material respects and of providing protection against significant misuse or loss of companys assets.

Internal Controls are adequately supported by internal audit and periodical review of by the management. The audit committee meets periodically to review with the management and statutory auditors, financial statements. The Audit Committee also meets with the internal auditors to review adequacy /scope of internal audit function, significant findings and follow up thereon and finding of abnormal nature.

7. Discussion on financial performance with respect to operational performance.

Figure for the current year was quite not satisfactory. The consolidated revenue for the year is Rs. 87.28 lacs as compared to Rs. 968.25 lacs during the last year. The net Profit after tax is Rs. 145.62 lacs as compared to last years Profit after tax of Rs. 35.51 lacs.

8. Material developments in human resources/ Industrial Relations front, including number of people employed.

Relations with the employees of the Company at various levels remained harmful during the year under the review. The Company is making its best efforts to retain and attract talented employees. During the year under the review, the Company has complied with all legislative provisions of labour laws. The number of employees of the company as of 31st March, 2026 was Nil.

9. Other Disclosures:

a. Basis of related party transaction:

During the year under the review, there were no related party transactions which were outside the purview of the limits.

b. Disclosure of Accounting treatments:

The Company has followed all relevant Indian Accounting Standards while preparing the financial Statements.

c. Board Disclosures - Risk Management:

The Company has developed comprehensive risk management policy and same is reviewed by the Audit Committee, which in turn, informs the Board about the risk assessment and minimization procedures. Major risks identified for the Company by the management are Currency fluctuation, Compliance, Regulatory changes, Manufacturing & Supply, Litigation, Information Technology and new capital investments return. The management is however, of the view that none of the above risks may threaten the existence of the Company as robust Risk mitigation mechanism is put in place to ensure that there is nil or minimum impact on the Company in case any of these risks materialize. Since the risk control frame work is new to Indian Corporate Culture, it is being strengthened on continuous basis using the outside professional help.

d. Proceeds from public issues, right issues, preferential issues etc.:

Not applicable, as no capital has been raised by the Company in last 11 Years. Besides above, there was no instance of non-compliance of any matter related to the capital markets during the last three years.