Anik Industries Ltd Management Discussions

Your Directors hereby presents the Management Discussion and Analysis Report (MDAR) for the year ended on 31 st March, 2026:

Founded in 1976, your company has proudly completed 50 years of growth, innovation, and trust. From humble beginnings, we have evolved into a diversified enterprise with a strong presence in international trade of edible oils & fats and real estate development projects. Our company has built long-standing partnerships with suppliers and customers throughout India, ensuring reliability and sustainability. The Company has successfully executed landmark residential, commercial, and mixed-use projects. Your company has focused on modern infrastructure, sustainable design, and community-centric development. Delivering value through innovation, transparency, and customer satisfaction.

The global economy entered 2026 facing heightened uncertainty after relative a period of stabilization in 2025. According to the IMF World Economic Outlook, global GDP growth is projected to slow to 3.1 percent in 2026 and 3.2 percent in 2027. Global headline inflation is projected to rise modestly in 2026 before resuming its decline in 2027. Slowdown in growth and increase in inflation are expected to be particularly pronounced in emerging market and developing economies. Downside risks dominate the outlook. A longer or broader conflict, worsening geopolitical fragmentation, a reassessment of expectations surrounding artificial-intelligence-driven productivity, or renewed trade tensions could significantly weaken growth and destabilize financial markets. Elevated public debt and eroding institutional credibility further heighten vulnerabilities. At the same time, activity could be lifted if productivity gains from AI materialize more rapidly or trade tensions ease on a sustained basis.

The global economy is again disrupted, this time with the outbreak of war in the Middle East. Global inflation is expected to tick up in 2026 and resume its decline in 2027. Pressures are concentrated in emerging market and developing economies, especially commodity importers with preexisting vulnerabilities. Risks are decisively on the downside. A prolonged conflict, deeper geopolitical fragmentation, disappointment over AI-driven productivity, or renewed trade tensions could weaken growth and unsettle markets. High public debt and eroded policy buffers add vulnerability. Policies should foster adaptability, enhance credibility, and reinforce international cooperation. (World Economic Outlook, IMF, April, 2026.)

India continued to be one of the worlds fastest-growing large economies in 2026, supported by resilient domestic demand, sustained government-led infrastructure investment, and ongoing structural reforms. Indias real GDP growth is expected to remain strong and to grow between 6.3% and 6.9% for the financial year 2026-27, outpacing most global peers and underscoring its role as a key driver of global growth. Inflation is projected to increase to 4.8% in FY2026-27, driven by higher food, energy and fertiliser costs, and currency depreciation. The current account deficit is expected to widen, as higher energy import costs outweigh the impact of weaker domestic demand. More persistent energy rationing could lead to weaker growth. On the upside, energy support could cushion real incomes and consumption more than expected.

Indias crude oil and natural gas dependence on the Middle East is substantial, with crude oil imports accounting for about 46% of total imports in 2024 and natural gas for about 57%. Energy import prices have risen sharply in recent months, but only part of that has fed into domestic energy prices. Reductions in excise duties on petrol and diesel and the removal of import duties on selectedpetrochemical inputs, alongside export levies on refined products, have helped to contain the pass- through from international prices to domestic inflation. Rationing measures have prioritised natural gas supply to households and transport, while expanding access to kerosene through the public distribution system and increasing the availability of small LPG cylinders for migrant workers. The recent reduction in US import tariffs lowered the average effective tariff rate on India by 23 percentage points, reducing pressures on exporting sectors.

Source: IMF OECD Outlook

The Indian economy has continued to display resilience and robust growth despite ongoing global uncertainties. In FY 2025 26, India remained one of the fastest-growing major economies in the world, supported by strong domestic demand, government-led infrastructure initiatives, and sound fiscal and monetary policies. According to the IMFs April 2026 Outlook, Indias GDP growth for FY26 is projected at 6.3%, significantly outpacing global growth estimates of 3.2%. This steady performance reflects the underlying strength of the Indian economy and its growing importance in the global economic landscape.

Your Company is primarily engaged in the business of trading of Agri- Commodities, Edible oil & Vanaspati, Property Development & others. The management continues to adapt its strategy to navigate external challenges while identifying new growth opportunities in its core and emerging business verticals.

Ding the year under review the trading business of the company is substantially increased and performed exceptionally well, as trading segment of the company contributed more than 95% of the total revenue. Your company has been allotted quota from Government for importing duty free Vanaspati and Bakery Shortening from Sri-Lanka that helped company to increase its trading turnover and profitability from this segment.

Despite ongoing global volatility in the edible oil market and financial uncertainties, the Company managed the risks efficiently. With these efforts, the Company expects the trading business to continue performing strongly in the coming years.

The performance of real estate segment of your company was also strong. The Real estate project of the Company "One Rajarhat" comprising premium service apartments and luxury residences has been successfully completed and with the excellent response from the public almost all the units have been sold. Presently, the Company is supporting the development of a similar premium real estate project named "One Victoria" of its material subsidiary Revera Milk & Foods Private Limited. This project is expected to bring good returns in the future and in addition to that your company is eying for new projects in Kolkata to continue its performance in real estate sector.

The company has disclosed business segment as the primary segment. Based on the criteria mentioned in Ind AS 108 "Operating Segment" the company has identified its reportable segments. The various segments identified by the company comprised as under:

Real Estate - Construction and Development of Housing Project

Trading - Agri Commodities, Edible Oils Etc.

The segment wise performance in detail is given in Note 39 to the audited accounts of the Company as available in this annual report.

The Companys outlook for FY 2026 27 remains very positive, grounded in strong macroeconomic fundamentals. Indias FY2025-26 GDP is estimated at 6.3%, with FY 2026-27 expected around 6.3 6.9% Inflation remained within RBIs target, averaging 4.9% in FY 2025 26 (April Dec), with forecasts of 4.6% (Q1 FY26) and 4.0% (Q2 FY26) and in real estate, while luxury segments may slow, collections improved and overall activity held steady, signaling resilience.

Against this, your company expects, continued momentum in the trading segment, supported by import quotas and favorable consumption trends, Stable returns from its real estate projects, backed by urban demand and project execution etc. We remain cautiously optimistic, with strategies aligned to capitalize on structural growth and manage sector-specific challenges.

The Company has in place a robust risk management framework that identifies and evaluates business risks and opportunities. The Company recognizes that these risks need to be handled effectively and mitigated to protect the interest of the shareholders and stakeholders, to achieve business objectives and create sustainable value and growth. The Companys risk management processes focus on ensuring that these risks are identified promptly and a mitigation action plan is identified and monitored periodically to ensure that the risks are being addressed accordingly. The Companys risk management framework operates with the following objectives:

1. Proactively identify and highlight risks to the right stakeholders.

2. Facilitate discussions around risk prioritization and mitigation.

3. Provide a framework to assess risk capacity and appetite; develop systems to warn when the appetite is getting breached.

The Company believes that Internal Control is one of the key pillars of governance, which provides freedom to the management within a framework of appropriate checks and balances. It has a robust internal control framework, which has been instituted considering the nature, size and risks in the business. The framework comprises, inter alia, a well-defined organization structure, roles and responsibilities, documented policies and procedures, financial delegation of authority, etc. Information Technology (IT) policies and processes also ensure that they mitigate the current business risks. These policies are complimented by a management information and monitoring system, which ensures compliance with internal processes, as well as with applicable laws and regulations.

Pursuant to Section 134 of the Companies Act, 2013, the Board, through the Operating Management has laid down Internal Financial Controls and procedures to be followed by the Company. The adequacy of the same has been reported by the statutory auditors of your Company in their report.

The performance of the Company for the financial year 2025-26 is summarized below

(Rs. in Lakhs)

During the year your Companys total revenue stood at Rs. 14848.19 Lakhs as compared to previous year figures Rs. 11859.56 Lakhs and consequently your company succeeded in achieving Profit before tax of Rs. 355.61 Lakhs as compared to previous figures of Rs. 450.04 Lakhs and Net Profit of Rs. 157.29 Lakhs as compared to previous year figure of Rs. 388.31 Lakhs.

On a consolidated basis, the total revenue stood at Rs. 14716.33 Lakhs as compared to previous year figures Rs. 11845.66 Lakhs and consequently net profit for the year stood at Rs. (93.55) Lakhs as compared to previous year net profit Rs. 303.96 Lakhs.

Cyber security controls are embedded in your Companys Information Technology (IT) environment to ensure protection from risks of unauthorized access, unauthorized changes or unavailability of the systems. Key cyber security controls include secure configuration of enterprise assets and software, malware defenses, periodic vulnerability and penetration testing, controlled access to critical business applications, appropriate segregation of duties and ongoing cyber security awareness programs for users.

Employees play a significant role in determining the workplace culture. The culture is formed through their actions, attitudes, and interests at work with every businesses success we recognize, reward and value our employees. We recognize that employees are critical to the success of any business and strive hard to provide competitive remuneration, attractive benefits, and happy work conditions. They are an asset that provides the company with long-term value. The numbers of people employed during the year were11.

As per the latest amendment as introduced by SEBI via SEBI (Listing Obligations & Disclosure Requirement) (Amendment) Regulations, 2018 on May 09, 2018 effective from April 01, 2019, new sub-clause (i) has been inserted in Clause I in Part B of Schedule V of SEBI (Listing Obligations & Disclosure Requirement), Regulations, 2015 according to which the listed entity shall provide the 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 the detailed explanations thereof, including

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.

The Company has followed the guidelines of accounting standards as mandated by the Central Government in preparation of its financial statements.