Akash Infraprojects Ltd Management Discussions

A. GLOBAL ECONOMY DEVELOPMENTS, INDUSTRY STRUCTURE AND OUTLOOK

The global economy demonstrated relative stabilization through 2024, as inflation declined from peaks of 8-10% in 2022 to approximately 4-5% across major economies. While this represents meaningful progress toward central bank objectives, the disinflation process remains uneven. Core pressures in services and wage growth continue to slow the return to target ranges, and many economies are still operating in a tight monetary policy environment. Global GDP growth was broadly stable at around 3.2% in 2024, suggesting resilience despite restrictive financial conditions.

In early 2025, momentum weakened following the announcement of new U.S. tariffs and the introduction of retaliatory measures by several major trading partners. These policy actions disrupted trade flows, introduced renewed uncertainty, and triggered a decline in investor confidence. In April 2025, the IMF responded by revising global growth expectations downward to 2.8% for 2025 (from 3.3% previously) and 3.0% for 2026. However, by July, conditions had partially improved. The rollback of certain tariffs, additional fiscal measures, a weaker U.S. dollar, and front loaded global demand led the IMF to modestly upgrade its projections to 3.0% in 2025 and 3.1% in 2026.

Despite these adjustments, the medium term outlook remains clouded by significant structural and cyclical headwinds. Persistent inflationary pressure in services, heightened trade policy volatility, elevated geopolitical tensions, and continued energy market fluctuations represent near term risks. Longer term challenges include high sovereign and private debt burdens, slowing productivity growth, weak capital investment, climate related disruptions, and adverse demographic trends in several advanced and emerging economies.

Absent stronger reform momentum, the IMF assesses that global performance will likely remain modest. A durable recovery will require a coordinated policy approach emphasizing restoration of trade cooperation, disciplined fiscal and monetary management, and structural reforms that unlock investment in productivity enhancing areas. Priority sectors include technology, digital infrastructure, clean energy transition, and human capital development through education and skills training. International policy cooperation will be critical in strengthening global resilience, reducing fragmentation, and supporting a more inclusive and sustainable growth trajectory.

B. INDIAN ECONOMY DEVELOPMENTS, INDUSTRY STRUCTURE AND OUTLOOK

The Indian infrastructure sector remains a critical driver of economic growth, supporting urbanization, energy needs, and sustainable living, while facing challenges of financing gaps, execution delays, and rising demand pressures. Indias GDP grew at 6.5% in FY/ 2024-25, maintaining its status as the fastest growing major economy, with construction emerging as a key growth engine at 9.4% YoY and accelerating to 10.8% in Q4. Private consumption rose 7.2% and investment grew 7.1%, supported by resilient domestic demand, government capital spending, and strong services momentum. Macroeconomic indicators underline this resilience: GST collections averaged Rs. 1.74 lakh crore per month, forex reserves touched an all time high of about US/ $685 billion, GNPA levels declined to ~3%, and credit growth remained near 15% YoY, while CPI inflation eased to 3.16% in April 2025, enabling the RBI to cut the repo rate to 5.5% and CRR to 3.0% to improve liquidity and credit flows.

Infrastructure expansion has been backed by significant policy initiatives and fiscal support, with the Union Budget FY/ 2025-26 allocating ¹ 11.21 lakh crore toward infrastructure under the governments Viksit Bharat 2047 vision. Flagship programmes include the National Infrastructure Pipeline (NIP), involving nearly 1 1.97 lakh crore of projects; PM Gati Shakti, a National Master Plan integrating logistics, rail, road, and energy infrastructure across 44 ministries and 36 states; Bharatmala Pariyojana for highway and freight corridor development; Sagarmala Programme for port led growth; and Multi Modal Logistics Parks (MMLPs) to cut logistics costs and improve connectivity. New initiatives such as the National Broadband Mission 2.0 launched in January 2025 aim to connect 2.7 lakh villages with high speed internet, while regulatory reforms?including RBIs relaxed infrastructure lending norms reducing provisioning requirements and SEBIs proposed expansion of strategic investors in REITs/ InvITs?are designed to enhance capital inflows.

Despite capacity bottlenecks and execution risks, Indias infrastructure push, underpinned by robust macro fundamentals and coordinated policy frameworks, positions the country to sustain rapid growth, improve competitiveness, and strengthen long term structural resilience.

C. OPPORTUNITIES AND THREATS

The Indian infrastructure sector continues to benefit from strong policy support, rising urbanization, and robust domestic demand. The Union Budget FY/ 2025-26 allocated Rs. 11.21 lakh crore under the Viksit Bharat 2047 vision, reinforcing the governments focus on infrastructure.

Key initiatives such as the National Infrastructure Pipeline (NIP), PM Gati Shakti, Smart Cities Mission, Pradhan Mantri Awas Yojana, Metro Rail Policy, Bharatmala, and Sagarmala are expected to accelerate growth across transportation, housing, and renewable energy. Indias macroeconomic fundamentals remain supportive, with GDP growth of 6.5% in FY/ 2024-25, foreign exchange reserves at US/ $685 billion, and the current account deficit narrowing to 0.7% of GDP. Inflation has eased to 3.16% (April 2025), the lowest in six years, enabling the RBI to cut the repo rate to 5.5% and CRR to 3.0%, thereby improving liquidity for developers and homebuyers. Industry consolidation through organic growth and acquisitions is also enhancing efficiency and construction quality.

While the outlook remains positive, supported by sustained demand and policy continuity, the sector faces potential risks such as execution delays, financing constraints, rising input costs, and regulatory challenges, which may affect project timelines and profitability. However, no material threat has been identified that could endanger the Companys long term viability.

D. RISKS AND CONCERNS

The infrastructure and construction sector is exposed to multiple risks, both internal and external. Delays in land acquisition, regulatory approvals, inflationary pressures, and litigation often result in project cost overruns and extended timelines, necessitating additional funding. High interest costs remain a challenge for the sector, though recent monetary easing by the RBI is expected to ease liquidity pressures.

The industry also faces intense competition from both established and new players, which may create pricing pressure and impact profitability. These risks call for careful monitoring, financial prudence, and operational efficiency. Nevertheless, no material threat has been identified that could endanger the Companys long term sustainability.

E. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has implemented an Internal Control framework to ensure all assets are safeguarded and protected against loss from unauthorized use or disposition, and transactions are authorized, recorded and reported correctly.

The Company has robust systems for Internal Audit and corporate risk assessment and mitigation. The Internal Control System includes Internal Financial Controls, commensurate with the size, scale and complexity of its operations as approved by the Audit Committee and the Board. The Internal Financial Controls are adequate and working effectively.

Whistle-blower mechanism is an important element of the internal control system encouraging employees to report genuine concerns, misconduct, or fraud without any fear of punishment or unfair treatment. The operation of Whistle-blower mechanism is overseen by the Audit Committee.

F. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year, the Company reported revenue of Rs. 2,651.41 Lacs as against Rs. 5,336.27 Lacs in the previous financial year, reflecting a decline. However, net profit improved to Rs. 36.05 Lacs compared to Rs. 34.48 Lacs in the previous year, supported by operational efficiencies, cost optimization, and better margin management.

This demonstrates the Companys ability to sustain profitability despite revenue pressures. Looking ahead, the Company is actively pursuing new projects, which are expected to enhance both revenue and profitability in the coming years.

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

For any industry, employees are an organizations most valuable asset. Your Company has recruited competent trained and skilled employees at all levels of management for all verticals of the Company like Roads, Irrigation Division, commercial construction, as a part of corporate restructuring process and strengthening its business verticals to meet the pace of growth of your Company. The industrial relation is very cordial.

H. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS ARE GIVEN BELOW

Ratios	2024-25	2023-24	Change %	Reason for change
Debtors Turnover	1.68	1.81	(7.34)	Increase in average outstanding trade receivable
Interest Service Coverage Ratio	1.21	1.21	15.97	NA
Net Profit Margin %	1.36%	0.65%	110.47	Decrease in earnings during the year due to decrease in turnover
Operating Profit Margin %	8	8	11.11	NA
Debt Equity Ratio	0.98	1.03	5.50	Increase in borrowings during the year
Current Ratio	1.83	1.82	(0.82)	NA
Inventory Turnover	0.37	1.05	(64.62)	NA
Return on Net Worth %	0.44	0.43	4.12	Decrease in earnings during the year due to decrease in turnover

During the year under review, the Company has received new work order, and the details of some of the major work order received during the year and after the end of the year under are as follows:

- Work order from the Office of the Panchayat Himatnagar amounting to Rs. 47.51 crore for work of widening, strengthening and resurfacing of various road as and when required or in emergency under Sabarkantha District.

Disclosure of Accounting T reatment:

The Company has followed the Indian Accounting Standards (Ind-AS) for drawing-up its accounts as prescribed by the Institute of Chartered Accountants of India, in the preparation of financial statements. There are no audit qualifications in the Companys financial statements for the year under review.

(A) STATUTORY COMPLIANCE:

The Company has complied with all the statutory requirements. A declaration regarding compliance of the provisions of the various statutes is also made by the Chairman and Managing Director at each Board Meeting. The Company ensures compliance of the ROC, SEBI Regulations.

(B) FORWARD LOOKING STATEMENTS:

Outlook for future are estimates based on certain assumptions and expectations of future events, eco -political and other developments across the country, the company cannot guarantee that these are accurate or will be realized. Statements in Management Discussion and Analysis describing the Companys objectives, expectations or predictions may beforward-looking within the meaning of applicable securities law and regulations. The companys actual results,

performance or achievements could thus differ from those projected in any forward looking statements. Important factors that could influence the Companysoperations include stiff competitionleading to price-cuts, high volatility in prices of major inputs such as steel, cement, building materials, petroleum products, change in government regulations, tax laws, economic developments within the country and other factors such aslitigation and industrial relations. The company assumes no responsibility to publicly amend or revive any such statements on the basis of subsequent developments, information or events.

Akash Infra-Projects Limited undertakes no obligation to publicly revise any forward-looking statements to reflect future events or circumstances.

FOR AND ON BEHALF OF THE BOARD FOR AKASH INFRA-PROJECTS LIMITED

Place	: Gandhinagar	AMBUSINH P. GOL	YOGINKUMAR H. PATEL
Date	: 14/08/2025	CHAIRMAN & MANAGING DIRECTOR DIN : 00463376	MANAGING DIRECTOR DIN : 00463335