Alkosign Ltd Management Discussions

Annexure –I

(MDAR)

1. INTRODUCTION:

Our Company was originally incorporated as Private Limited Company in the name of "Alkosign Private Limited" under the provisions of the Companies Act, 2013 vide Certificate of Incorporation dated March 20, 2020 bearing Corporate Identification Number U74999MH2020PLC339065 issued by the Assistant Registrar of Companies, Maharashtra. Subsequently, our Company was converted into a Public Limited Company pursuant to the special resolution passed by the shareholders at the Extra-Ordinary General Meeting of our Company held on December 02, 2021 and consequent upon conversion the name of our Company was change to Alkosign Limited vide a fresh certificate of incorporation dated July 12, 2021 bearing Corporate Identification Number U74999MH2014PLC260236 was issued by the Registrar of Companies, Mumbai. Further the Company has issued share pursuant to Initial Public Offer (IPO) and listed on SME platform of BSE LTD on 01, February, 2022.

2. INDUSTRY STRUCTURE:

Changing economic and business conditions, rapid technology, innovation and adoption and globalization are creating an increasingly competitive market environment that is driving corporations to transform the manner in which they operate. Companies in this environment are now focusing even more on their business objectives such as revenue growth, profitability and asset efficiency.

3. INVESTMENTS/ DEVELOPMENTS:

We are increasing our reach in the industry by expanding our client base across sectors / verticals. Development of software products aiming at various sectors to improve the depth of our engagement with the industry.

4. OPPORTUNITIES AND THREATS:

Strength:

Growth in the Indian economy and demand creates unprecedented opportunities for company to invest significantly in each of its core businesses. Outlook for the overall industries is positive. In keeping with the philosophy of continuous consumer centric approach which is the hall mark of any organization, several developmental activities have been planned for the next fiscal year.

Opportunities:

Vast Industrial Presence in both Public and Private Sectors

Huge demand for Domestic services

Avail of Low-cost, Skilled Human Resources.

Proactive government continued thrust on reforms- Further liberalization under process.

Increasing investment in real assets (Capacity Expanding), Inflow of FDI (Foreign Direct Investment) across Industrial sector.

Threats:

As cyber security threats continue to evolve and become more sophisticated, enterprise IT must remain vigilant when it comes to protecting their data and networks. Further there are global and external factors, changes in Information Technology & Security Laws, tax laws, litigation and significant changes in the Global political and economic environment exert tremendous influence on the performance of the company. The Company has laid down procedures to inform Board Members about the risk assessment and minimization procedures.

5. SEGMENT–WISE OR PRODUCT-WISE PERFORMANCE:

The Company is engaged in manufacturing of visual presentation systems namely writing boards/display boards/notice boards of different types along with its associated accessories and stands used for these boards, school benches, desks and their accessories. The Company has product wise performance as mentioned below:

I. Board Division– Around 57% of total operating turnover

II. Luggage Division– Around 43%of total operating turnover

6. OUTLOOK:

The Continual growth in the in India sector is necessary to give necessary support to the industry. The company is making all effort to accelerate the growth of its business. It Expect to improve its position in the market by focusing in the technologically advanced and more profitable Product and market segment and working aggressively in the area of productivity, efficiency and cost reduction.

7. RISKS AND CONCERNS:

The industry is exposed to the following risk and concerns:

Complex Global Supply-Chain:

Companies have to juggle internal and external resources while staying within internationalstandards. Issues such as traceability and compliance are increasing operational burdens.

Uncertain Demand:

Aggregately, economic volatility and cyclical demand cause fluctuations in production. On a more granular level, consumer preference can cause spikes in demand for an individual products or company. Efficient lean capabilities must be in place to keep inventory aligned with demand.

8. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as wellas statutory auditors.

9. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO

OPERATIONAL PERFORMANCE: Share Capital:

During the year under review, the Paid-up Capital of the Company is Rs.7,19,50,000.

Reserves and Surplus:

The Reserve and Surplus of Company on Standalone Basis is Rs. 2579.06 Lakhs as on period ended on 31st March, 2025.

Total Income:

The Company has earned total Income 5184.64 Lakhs on Standalone Basis as on period ended on 31st March, 2025.

10. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Your Company follows a policy of building strong teams of talented professionals. People remain the most valuable asset of your Company. The Company recognizes people as its most valuable asset and the Company has kept a sharp focus on Employee Engagement. The Companys Human Resources is commensurate with the size, nature and operations of the Company.

11. 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:

Ratio	F.Y. 2024-25	F.Y. 2023-24	Movement in %	Reason for Movements (if movement is more than 25%)
Debtors Turnover	5.86	8.51	-31.07	Increase in business has led to increase in receivables & hence negative ratio
Inventory Turnover	1.84	1.66	10.97	-
Interest CoverageRatio	7.47	2.87	160.28	Due to better results during the year, the ratio was more favorable in comparison to previous year.
Current Ratio	2.54	2.21	15.21	-
Debt Equity Ratio	0.38	0.47	-19.68	-
Operating Profit Margin (%)	0.12	0.05	147.51	The ratio became favorable due to increase in business &profitability
Net Profit Margin (%)	0.07	0.02	233.08	The ratio became favorable due to increase in business & profitability.

12. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED

TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATIONTHEREOF. –

The Return on Net Worth for F.Y. 2024-25 was 11.43 and for F.Y. 2023-24 was 2.68. The reason for change is Luggage segment started its operations in 23-24 but its full-scale production & business were executed in 24-25. Since increased business led to positive profitability, the ratio turned favorable in thecurrent year.

13. CAUTIONARY STATEMENT:

This report contains forward- looking statements based on the perceptions of the Company and the data and information available with the company. The company does not and cannot guarantee theaccuracy of various assumptions underlying such statements and they reflect Companys current views of the future events and are subject to risks and uncertainties. Many factors like change in general economic conditions, amongst others, could cause actual results to be materially different.

By Order of the Board of Directors

FOR ALKOSIGN LIMITED

Sd/-

SAMIR NARENDRA SHAH

MANAGING DIRECTOR

DIN: 03572442

PLACE: MUMBAI

DATE:02nd SEPTEMBER,2025