Alan Scott Industries Ltd Management Discussions

To avoid duplication of certain information in Directors Report and Management Discussion & Analysis, the Board of Directors of your Company has presented the composite summary of performance and functions of the Company. Certain details are already provided in the Director Report and Financial Statements of the Company.

Industry Structure and development

(1) Existing business:

To ensure consistency between the Annual Report and the Investor Presentation, the Groups businesses are presented under four categories: Living, Work, Next, and Frontier.

(a). Living

Businesses that directly impact consumers lifestyle and wellbeing.

Alan Scott Retail Ltd.

Operates 14 franchise outlets under the MINISO brand, serving urban consumers with affordable lifestyle products. Expansion continues in line with demand for organised retail formats.

Alan Scott Saatwik Himalayan Products Ltd.

Focused on uplifting farmers above 6,000 feet by sourcing authentic produce from the Himalayan region. Brands include Jungle Harvest (honey, ghee, rajma, herbal teas), Kosha Care (herbal cosmetics), and the new Giggles range of fruit crushes and healthy shots.

Alan Scott Fusion Resonance Ltd.

Develops frequency-based consumer wellness products. Its upcoming product, Trishcoo, is a frequency-charged sticker for mobile devices designed to reduce heat, minimise radiation, and enhance battery performance.

2. Work

Businesses that strengthen industrial productivity, environment-friendly solutions, and R&D.

Alan Scott Envirotech Ltd.

Provides solutions for clean air, water purification, and HVAC efficiency. Products include air purifiers (Aeroroz, Airdeto, Astra, Fumo), the Jaliva alkaline water machine, and HVAC upgradation services. Aeroroz has also been introduced as a split AC purification device.

Alan Scott Automation Ltd. (Onecta)

Offers automation solutions such as Auto Caller and stack/destack systems. During the year, the subsidiary expanded into engineering and electronics industries, broadening its customer base beyond dairy and edible oil sectors.

Alan Scott Vajrashakti Ltd.

The R&D hub of the Group, working on energy-efficient appliances, nitrogen concentrators, outdoor air purification, and IoT-based industrial systems. The Zestwatt platform for high-efficiency heating products continues under active development within this subsidiary.

3. Next

Businesses that incubate scalable digital platforms in identity and education.

Alan Scott UpnUp Life Pvt. Ltd.

Focuses on building verifiable digital identity, trust scores, and skill pathways. The first application for the security guard industry is planned for launch in Q4 FY 2025-26. Design is managed in Delhi, with technology development in Bangalore.

Alan Scott Learnix Pvt. Ltd.

Develops education solutions powered by AI and quantum-inspired tools. Initiatives include Navodaya Labs (smart classrooms), the KrishGuru AI Teacher, and assessment platforms Lexel-IDx and Dishaant Patra.

4. Frontier

Businesses that explore new-age technologies and disruptive models for the future.

Alan Scott Omnis AI Pvt. Ltd.

Functions as an AI venture studio. Its flagship initiative Zynd is a mesh-loop registry for AI agents, aimed at enabling scalable, interoperable, and collaborative AI ecosystems.

Alan Scott Bluverge Pvt. Ltd.

Engaged in Agri Drone-as-a-Service, providing spraying, monitoring, and precision farming solutions to improve agricultural productivity and rural infrastructure.

(2) Incubation and new businesses:

The Company is at an advanced stage of developing new-generation businesses under an incubation model. This model involves collaboration with idea and execution partners, where the Company retains a majority stake while partners hold a sweat equity minority. The focus is on high-growth, long-gestation businesses that require an initial capital investment over two to three years. These ventures are positioned to exploit disruptive technologies such as Web3, Blockchain, and other innovative high-impact technologies, which offer substantial market potential and high valuation opportunities.

The details of new business forms part of the Directors report.

Opportunity and Threats:

1. Living:

Opportunities:

Rising consumer preference for organised retail and branded lifestyle products in Tier I and Tier II cities. Growing awareness of health, wellness, and sustainable products supports expansion of Saatwik Himalayan and Fusion Resonance portfolios. Increasing demand for authentic regional products (e.g., Himalayan produce, herbal cosmetics) offers scope for brand premiumisation.

Threats

Intense competition from large FMCG players and established retail chains. Supply chain risks in sourcing niche Himalayan produce due to weather, terrain, and logistics challenges. Consumer adoption of frequency-based wellness products is still nascent, requiring significant awareness-building.

2. Work

Opportunities

Heightened focus on clean air, safe water, and energy efficiency driven by regulatory mandates and ESG considerations. Expanding automation demand across diverse industries, including engineering and electronics, creates cross-sector opportunities.

Development of IoT-enabled, energy-efficient solutions positions the Group to leverage Indias “Industry 4.0” push.

Threats

Competition from global technology players with advanced R&D capabilities. Rising raw material costs and component dependencies in HVAC and automation businesses. Technology cycles in industrial automation and environment-tech may outpace current development timelines.

3. Next

Opportunities:

Increasing need for verifiable digital identity and trust systems, aligned with Indias digital-first initiatives. Rapid adoption of AI in education opens growth avenues for adaptive learning and smart classroom solutions. Growing government and private sector interest in skill development and digital certification platforms.

Threats:

Regulatory uncertainty around digital identity and data privacy. High dependency on timely technology development and market acceptance of new-age platforms. Competitive pressure from global EdTech and digital identity players.

4. Frontier

Opportunities

AI-based interoperable ecosystems (like Zynd) offer first-mover advantage in building collaborative agent-driven platforms. Drone-as-a-Service models are gaining traction, supported by policy encouragement for agri-tech adoption. Potential for global scalability and strategic partnerships in AI and AgriTech domains.

Threats

Frontier technologies carry higher execution and adoption risks, with longer gestation periods. Regulatory and ethical scrutiny in AI deployment could delay scaling. Agri-drone services remain vulnerable to regulatory approvals, rural adoption challenges, and pricing sensitivity.

Our business:

(a) Standalone business performance ( in Thousands):

During the year under review, on a standalone basis, the total revenue of the Company saw a marginal increase of 19,885.98 as against 4,096.10 during the previous year ended on March 31, 2024 (“Previous year). The Company was able to reduce its expenses and hence the Company saw a marginal profit of 6,549.77 as against a loss of 9,637.50 during the previous year.

(b) Consolidated business performance( in Thousands):

On a consolidated basis, the Company saw an increase in the revenue from its operation to 3,09,365.20 as compared to 1,19,021. The consolidated losses stood at 18,164.20 2as compared to 34,967.31 during the previous year.

In line with its strategy to diversify revenue streams and reduce dependence on a limited portfolio, the Company has expanded into newer business segments. This move marks a key milestone in its growth journey, opening up access to new clients and industries while strengthening business resilience.

Five-Year Strategic Outlook:

Over the medium to long term (FY 2026 FY 2030), the Company has charted a clear growth roadmap aimed at building a scalable, diversified, and resilient business model. The key elements of this outlook are:

Revenue Growth: Sustained topline growth driven by expanding core offerings and scaling new service verticals. Diversification: Continued focus on developing and exploring business opportunities that complement existing strengths. Operational Efficiency: Leverage technology, digitization, and process improvements to optimize costs and improve profitability. Talent & Infrastructure: Ongoing investments in people and facilities to strengthen capabilities and enhance client delivery. Shareholder Value Creation: Balanced focus on growth and profitability to deliver consistent returns, backed by a resilient business model.

The Living Work Next Frontier framework balances near-term consumer businesses with industrial solutions, emerging digital platforms, and long-horizon innovation. This structure provides resilience, supports disciplined capital allocation, and positions Alan Scott Enterprises Limited for sustainable long-term value creation.

The management remains confident that these initiatives will enable the Company to outperform industry averages, establish a stronger competitive position, and create sustainable value for all stakeholders over the next five years.

Future Outlook:

India is widely recognized as one of the most dynamic major economies globally, with substantial growth potential in the medium to long term. The governments continued focus on structural reforms is expected to further enhance this potential. Your Directors remain optimistic about the Companys future, believing that all subsidiaries will experience significant increases in valuation in the near future. However, it is acknowledged that actual results may vary depending on market conditions and other external factors.

Risk Management:

The Company possesses a well-defined risk management framework. The primary goal of risk management is to recognize, supervise and undertake preventative steps with reference to incidents that may create risks for the business.

Internal control systems and their adequacy:

The Companys internal control system (including internal financial control system) has been monitored continuously and updated to ensure that assets are safeguarded, regulations established are complied with and pending issues are promptly addressed. The reports presented by internal auditors are reviewed by the audit committee on a routine basis. The committee makes note of the audit observations and takes corrective actions, if necessary. The committee maintains constant dialogue with statutory and internal auditors to make sure that internal control systems are operating effectively.

Material Developments In Human Resources / Industrial Relations Front Including Number Of People Employed

Employee wellbeing and building a strong workplace culture continued to be the focus areas for the financial year 2025. The Company adopted sound people practices that enabled it to attract and retain talent in an increasingly competitive market, and to foster a work culture that is always committed to providing the best opportunities to employees to realize their potential.

The Company continued to prioritize business continuity as volumes stabilized. The Human Resource team undertook focused initiatives to launch employee-centric welfare programs and actively engaged with business leaders to address workplace concerns and future talent needs. Learning and Development remains a key pillar of our people strategy, enabling employees to meet job challenges effectively while staying aligned with the Companys business objectives. Additionally, specialized training is provided to the resolutions team to reinforce compliance with the Companys Fair Practice Code and to safeguard customers against any form of harassment.

Cautionary Statement:

The statements made in this section describe the Companys objectives, projections, expectation and estimations which may be ‘forward looking statements within the meaning of applicable securities laws and regulations.

This comprehensive assessment highlights both the achievements and challenges faced by the Company, providing a clear roadmap for future growth and development.

	By the order of the Board
	For Alan Scott Enterprises Limited (formerly known as Alan Scott Industriess Limited)
	Sd/-	Sd/-
	Sureshkumar Jain	Saloni Jain
Place: Mumbai	Managing Director	Director
Date: August 30, 2025	DIN: 00048463	DIN: 07361076