Ashirwad Steels & Industries Ltd Management Discussions

(Part of Board of directors Annual report)

As per SEBI disclosure regulation 34(3) and schedule V (clause-B) (For the Financial Year ended 31^st March, 2026)

(a)Industry Structure and Developments:

During FY 2025 26, the Companys principal activities comprised investment in shares, securities, bonds and mutual funds and the lending of funds. The performance of these activities is influenced by market conditions, interest rates, liquidity, borrower creditworthiness, valuation movements and changes in the applicable regulatory framework.

The Company has exited its erstwhile sponge iron and LPG bottling operations, except for the non-operational LPG bottling plant at Raigarh, Chhattisgarh, which remained commercially unviable during the year.

(b) Opportunities and Threats:

The Company continues to explore prudent deployment of its owned funds through diversified investments and carefully evaluated lending, while also seeking suitable business opportunities and productive utilisation or sale of the Raigarh property.

Key risks include market volatility, decline in investment values, borrower default, concentration and liquidity risk, interest-rate movements, valuation uncertainty in unquoted investments, regulatory changes and difficulty in disposing of the non-operational plant on acceptable terms.

(c) Segment-wise Product-wise performance:

The Company operates in a single reportable segment comprising investment and lending activities. Accordingly, no separate segment information is required under Ind AS 108, Operating Segments. The overall performance is reflected in the audited financial statements.

(d) Outlook:

The Company will continue to follow a cautious approach focused on capital preservation, diversification, credit appraisal, loan recoverability and regular monitoring of investments. The Board will also evaluate suitable growth opportunities and the possible sale or alternate use of the Raigarh property, subject to market conditions and regulatory requirements.

(e) Risks & Concerns:

The companys business of making investments in shares and securities and lending of money which carry certain degree of risk which cannot be assessed or quantified as it depends on several unpredictable reasons and factors. The company is not immune from it. However, your Board tries to take rational decisions in these business matters to minimize the risk.

(f) Internal Control System and its Adequacy:

The Company has proper and adequate system of internal controls commensurate with its size and nature of operations to provide reasonable assurance that all assets are safeguarded, transactions are authorized, recorded and reported properly and applicable statutes are duly complied with. The Company has constituted an Audit Committee to monitor the adequacy and efficacy of internal control systems.

The adequacy of these compliances and their effectiveness is subject to statutory audit and the same has been adequately reported by the Auditors in their report as required under the relevant provisions of the Companies Act, 2013. The Company also has an Internal Audit System.

(g)Discussions on financial performance with reference to operational Performance:-

Revenue from operations increased to 206.68 lakh during FY 2025-26 from 180.45 lakh in the previous year. Other income decreased to 209.65 lakh from 249.49 lakh, resulting in total income of 416.34 lakh compared with 429.94 lakh in the previous year. Profit before tax decreased to 267.59 lakh from 309.73 lakh and profit after tax decreased to 202.02 lakh from 229.66 lakh. Other comprehensive loss, net of tax, amounted to 0.75 lakh compared with 2.53 lakh in the previous year. Total comprehensive income was 201.27 lakh compared with 227.13 lakh.

The decrease in profitability was primarily attributable to the decline in total income and the movement in expenses during the year, notwithstanding an increase in revenue from operations. The overall financial performance of the Company during the year under review has been satisfactory.

(h) Material Developments in HRD and industrial Relations Front:

Your Directors recognize the value of employees as valuable assets. Developing, motivating, and retaining talented employees is a key responsibility and policy of your Companys management. The total no. of people employed by the company was seven as on year end.

(i) Cautionary Statements

The reader of the relevant statements mentioned hereinabove must read and understand the same with due understanding and necessary caution as they may be forward looking and prone to change in the dynamic economic environment and tax regime.

Place: Kolkata	For and on behalf of the Board
Date: 22nd May, 2026	Dalbir Chhibbar	Vishesh Chhibbar
	Managing Director	Whole-time Director
	(DIN: 00550703)	(DIN: 03553892)