Alfa Ica India Ltd Management Discussions

1. GLOBAL ECONOMIC OVERVIEW

Financial markets are grappling with the ongoing war in the
Middle East amid renewed inflationary pressures and rising
risks of a sharper tightening in global financial conditions.
Since late February, equity prices have fallen and bond yields
have risen, reflecting higher energy prices and upward
revisions to inflation and policy rate expectations. Emerging
market assets-especially in commodity importing and more
vulnerable economies-have been disproportionately
affected. While market functioning has remained orderly,
risks arc asymmetric and could intensify if the conflict
persists.Several amplification channels could transmit
market stress into broader financial instability. Elevated
public debt and increased reliance on short-term issuance
heighten rollover risks in core sovereign bond markets and
could revive the sovereign-bank nexus. In emerging markets,
carry trade unwinds and capital outflows may amplify
currency pressures. High leverage among nonbank financial
intermediaries, including hedge funds and leveraged
exchange-traded funds, could exacerbate volatility through
forced deleveraging and liquidity strains. In equity markets,
stretched valuations and concentration-particularly in
artificial intelligence related firms-raise downside risks.
Although liquidity mismatches in private credit remain
limited, rising borrower stress and growing retail exposure
could test semiliquid structures. More frequent supply
shocks have also weakened the equity-bond hedging
relationship, increasing the risk of simultaneous selloffs.
Since the global financial crisis, emerging markets have
received substantial cross-border portfolio flows, largely
intermediated by nonbank financial institutions. Such flows
bring opportunities but also challenges to emerging market
economies, such as heightened sensitivity to shifts in global
risk sentiment, especially for countries with preexisting
vulnerabilities such as high debt, low international reserves,
or weak institutional quality. Among nonbanks, the
sensitivity to global risk varies significantly across investor
types. Hedge funds, and investment funds react more
strongly to shifts in global risk than other nonbanks, with
passive mutual funds and exchange-traded funds showing
the greatest sensitivity within the investment fund sector.
Countries that tend to rely more on such risk-sensitive
investors face tighter financial conditions during periods of
global market stress, with adverse implications for
m a c r o f i n a n c i a I stability, (source:
https://www.imf.org/en/Publications/WEO)

2. INDIAN ECONOMY

Against the backdrop of global economic uncertainty, India
has continued to demonstrate strong economic resilience.
During FY2025, the Indian economy grew by around 6.5%,
while growth accelerated significantly in FY2026, with real
GDP expanding by an estimated 7.7%. This strong
performance has reinforced Indias position as one of the

fastest-growing major economies in the world.

The growth momentum in FY2026 was supported by strong
domestic demand, rising investment, robust agricultural
performance, construction activity, and continued strength
in the services sector. Private consumption remained an
important contributor to economic activity, while
government capital expenditure continued to support
infrastructure development and productive capacity. The
Reserve Bank of Indias monetary policy also supported
economic activity. The reduction in the repo rate in February
2025, the first such cut in five years, was intended to reduce
borrowing costs and encourage consumption and
investment. Subsequently, monetary conditions remained
an important factor supporting domestic demand. Indias
manufacturing sector also showed considerable resilience
during 2025 and 2026 despite global trade disruptions and
geopolitical uncertainty. Industrial activity was supported by
stronger domestic demand, infrastructure investment and
government initiatives aimed at strengthening
manufacturing and supply chains. External trade also
remained significant.

3. BUSINESS OVERVIEW

Your company was incorporated in the year 1991. Your
company is in the business of High Pressure Laminate (H.P. L)
Sheets & Compacts. Alfa ranges are available in several
Colours, Designs and Textures consisting of more than 400
design decors and more than 50 textures. With more decors
and more finishes, our innovation brings you beautiful, high
quality environmental friendly decorative solutions.

Alfa High Pressure Laminates are recognized and appreciated
by architects, interiors and fitters. We confirm all our
produce is as per strict requirements of EN438 (European
Standard). To ensure European quality, all decorative papers
are sourced from worlds best European printers.

In changing world, we are changing faster. We are relentless
in our pursuit of discovery and innovation, bringing in
technologies that empower us to enhance your
environment, constantly opening the door to a world of
possibility. Alfa Laminate sheets are used for various
applications in many areas such as Furniture Covering, Wall
Paneling, Partitions, Door Covering, Shower Panels, Interior
Wall Paneling, Exterior Wall Cladding, Green Chalk Board,
White Marker Board, Kitchen Top and Backsplash, Table Top,
Anti-bacterial laminate. Anti-fingerprint laminate. Cubicle
partition panel and more other things.

Your company assures highest commitment of consistent
innovation by introduction of new designs as well as finishes
to feed the creative mind of interior decorators and furniture
designers. The companys philosophy is to attain
transparency and accountability in its relationship with all its
stakeholders, ensuring a high degree of regulatory
compliance.

4. DISCUSSION ON COMPANYS PERFORMANCE

Your Company continues to sustain with its overall
performance in the financial year 2025-2026 driven by the
average performance in existing business. Currently the
Company is running well in decorative laminates segment.
Your Directors have been making efforts on all fronts viz.
production, marketing, finance and cost control etc. and
these efforts have been yielding good results. The outlook for
the companys products appears to be good and the
company is confident of achieving improved operational
performance.

The Profit before Tax amounted to 25,453,013 as against to
19,232,497 in the previous year. The net profit after tax was
18,992,157 as against 14,397,118 in the previous year.
During the year under review achieved Export sales of Rs.
6,82,674,498.

5. INTERNAL CONTROL SYSTEM

The Company has in place robust internal control procedures
commensurate with its size and operations. Company has
the internal controls Department headed by Internal Auditor
of the company. The Board of Directors is also responsible for
the internal control system, sets the guidelines, verifying its
adequacy, effectiveness and application. The Companys
internal control system is designed to ensure management
efficiency, measurability and verifiability, reliability of
accounting and management information, compliance with
all applicable laws and regulations, and the protection of the
Companys assets so that the companys main risks
(operational, compliance-related, economic and financial)
are properly identified and managed overtime.

6. HUMAN RESOURCES AND INDUSTRIAL RELATIONS
Company maintained healthy, cordial and harmonious
industrial relations at all levels. The Board of Directors and
management wish to place on record their appreciation of
the efforts put in by all employees to achieve good
performance.

Some of the companys core developments on the HR front
and imitative planned during the year under review included
Standardized recruitment through creating robust systems
and processes to ensure that only those qualified whose skill
sets matched with the requirements; Focused on training to
establish a professional e-learning module Focus on
capabilities enhancement through structure interventions,
both on functional and behavioral side With a view to
professionalize payroll, too utsource these rvice to ensure
thata llstatutory and regulatory complian cesare met to the
highest level

There was not any case pursuant to the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013 was reported during the year.

7. RISK MANAGEMENT

Your Company has adopted a mechanism to identify, assess,
monitor and mitigate various risks to key business objectives.
Major risks elements associated with the businesses and
functions of the Company have been identified and will be
systematically addressed through mitigating actions on a
continuing basis. These are already discussed at the
meetings of the Audit Committee and the Board of Directors
of the Company. Risk Management forms an integral part of
the Companys planning process. There are no risks, which in
the opinion of the Board threaten the existence of your
Company.

8. FUTURE OUTLOOK

Exports shall remain the core growth are and a lot depends
on overseas economic recovery. In the domestic sector, the
outlook seems to best able in long term, with the economy
expected to perform better in the years to come. Though
inflation is a worry which may dampen real spends in the
economy, but an emphasis on infrastructure and housing
shall push the demand for companys products.

9. SEGMENT-WISE AND PRODUCT-WISE PERFORMANCE

The Company is engaged primarily in manufacturing of
Laminated Sheets and there are no separate reportable
segments.

10. CAUTIONARY STATEMENT:

Certain statements in this Annual Report more particularly in
the Management Discussion and Analysis Report describing
the Companys strength, strategies, objectives, predictions,
expectations and estimates may be "forward looking
statements" within the meaning of applicable laws and
regulations. Actual results may vary significantly from the
forward-looking statements contained in this document due
to various risks and uncertainties. These risks and
uncertainties include global and domestic financial market
conditions affecting the interest rates, availability of
resources for the financial sector, market for lending,
changes in regulatory directions issued by the Government,
tax laws, economic situation affecting demand / supply, price
conditions in the domestic markets in which Company
operates, significant changes in political and economic
environment in India, applicable statues, litigations, labour
relations that may impact the Companys business as well as
its ability to implement its strategies. Further, market data
and product information contained in this Report are based
on information gathered from various published and
unpublished reports, and their accuracy, reliability and
completeness cannot be assured. The Company does not
undertake to update these statements.