Aspire & Innovative Advertising Ltd Management Discussions

(For year ended March 31, 2026)

Economic Overview
Indian economy

The Indian economy demonstrated remarkable resilience during FY
2025-26, maintaining its position as one of the fastest-growing major
economies globally despite persistent geopolitical uncertainties, global
trade disruptions, and inflationary pressures. The countrys growth was
primarily driven by robust domestic demand, sustained public capital
expenditure, resilient private consumption, and continued momentum
in the services and manufacturing sectors. According to the Economic
Survey 2025-26, Indias real Gross Domestic Product (GDP) is estimated
to have grown by approximately 7.4%, reflecting the strength of its
macroeconomic fundamentals and reform-oriented policy framework.

The services sector continued to be the primary contributor to
economic growth, supported by strong performance in financial
services, information technology, telecommunications, hospitality,
healthcare, and digital commerce. Manufacturing activity also
remained resilient, aided by the Production Linked Incentive (PLI)
schemes, the "Make in India" initiative, and increasing domestic
manufacturing capabilities across key sectors. Agricultural
performance remained stable, supported by favourable policy
interventions and improved rural demand.

Inflation remained broadly within the Reserve Bank of Indias medium-
term target range, supported by prudent monetary policy, improved
food supplies, and easing commodity prices. A stable banking sector,
healthy corporate balance sheets, and improved asset quality further
strengthened the financial system, enabling sustained credit growth
across retail, MSME, and corporate segments.

Looking ahead, Indias medium-term economic outlook remains
positive, supported by continued structural reforms, increasing
digitalisation, expanding infrastructure, rising formalisation of
the economy, and favourable demographic trends. Government
initiatives promoting manufacturing, financial inclusion, ease of doing
business, green energy, and digital transformation are expected to
strengthen long-term competitiveness and create sustainable growth
opportunities. While global geopolitical developments, commodity
price volatility, and external demand remain key risks, Indias strong
macroeconomic fundamentals position the economy favourably for
sustained and inclusive growth in the coming years.

WORLD ECONOMIC OUTLOOK

The global economy remained resilient during FY 2025-26 despite
heightened geopolitical tensions, evolving trade policies, persistent
inflationary pressures, and financial market volatility. While economic
activity continued to expand, the pace of growth moderated across
several advanced and emerging economies due to tighter financial
conditions, trade uncertainties, and ongoing geopolitical conflicts.

INDUSTRY OVERVIEW

According to the International Monetary Fund (IMF), global growth is
projected at around 3.0% in 2025 and 3.1% in 2026, reflecting a resilient
but uneven recovery across regions. Global inflation continued to ease
from its post-pandemic highs, supported by moderating energy and
commodity prices and prudent monetary policies adopted by major
central banks. However, inflationary risks remain due to geopolitical
developments, supply chain disruptions, and fluctuating commodity
prices.

Advanced economies witnessed moderate economic expansion as
easing inflation gradually improved consumer spending and business
confidence. Nevertheless, elevated interest rates, labour market
adjustments, and fiscal consolidation continued to weigh on investment
and economic activity. Emerging market and developing economies
continued to outperform advanced economies, supported by resilient
domestic demand, improving manufacturing activity, and increased
public investment, although external vulnerabilities and exchange rate
fluctuations remained key challenges.

Global trade and investment experienced gradual recovery during
the year; however, international commerce remained affected by
changing tariff policies, geopolitical fragmentation, and supply chain
realignments. Businesses continued to diversify sourcing strategies,
strengthen regional supply chains, and accelerate digital transformation
to enhance operational resilience.

The outlook for the global economy remains cautiously optimistic.
Continued disinflation, improving financial conditions, technological
advancements, including artificial intelligence, and easing monetary
policy are expected to support economic activity over the medium
term. However, downside risks persist from geopolitical conflicts, trade
protectionism, commodity price volatility, climate-related events, and
financial market uncertainties. Policymakers across the world continue
to focus on maintaining macroeconomic stability while promoting
sustainable, inclusive, and resilient economic growth.

Global Growth Outlook

- 2025: Global GDP growth is projected at 3.0%, reflecting resilience
despite heightened geopolitical tensions, trade policy uncertainty,
and tighter financial conditions.

- 2026: Global growth is expected to improve modestly to 3.1%,
supported by easing inflation, stronger domestic demand in
several emerging markets, and improving financial conditions.

- Medium-term Outlook: Global growth is expected to remain close
to 3.1-3.2%, which is significantly below the historical (2000-
2019) average of approximately 3.7%, indicating a subdued long-
term growth trajectory.

Advanced Economies

Growth in advanced economies is expected to remain moderate, with
GDP projected at approximately 1.5% in 2025 and 1.6% in 2026. While
inflation is easing and monetary conditions are gradually normalising,
structural challenges, ageing demographics, and weak productivity
growth continue to constrain economic expansion across several
European economies and Japan. The United States is expected to
remain relatively resilient, supported by consumer spending and
investment.

Emerging Markets and Developing Economies

Emerging market and developing economies are expected to continue
driving global economic growth, supported by strong domestic demand,
infrastructure investment, and favourable demographic trends.

- China: Economic growth is projected at 4.8% in 2025 and 4.2%
in 2026, reflecting continued weakness in the property sector,
subdued domestic demand, and structural economic adjustments.

- India: India is expected to remain the fastest-growing major

economy, with GDP growth projected at around 6.4% in 2025 and
6.4% in 2026, supported by robust domestic consumption, public
infrastructure investment, digital transformation, and ongoing
structural reforms.

- Other Emerging Asian Economies: Countries such as Vietnam,
Indonesia, and the Philippines are expected to sustain healthy
economic growth, generally exceeding 5%, driven by resilient
domestic demand, manufacturing expansion, and increased
foreign direct investment.

Risks and Uncertainties

- Geopolitical and Trade Risks: Ongoing geopolitical conflicts,
evolving trade policies, tariff measures, and supply chain
realignments continue to create uncertainty in global trade,
investment flows, and commodity markets.

- Inflation and Monetary Policy: Although global inflation has
moderated, persistent price pressures and uncertainty regarding
the pace of interest rate adjustments by major central banks
may impact financial markets, borrowing costs, and investment
sentiment.

- Geoeconomic Fragmentation: Increasing trade protectionism,
export restrictions, and regional economic fragmentation may
adversely affect global supply chains, cross-border investments,
and international business operations.

- Climate Change and Sustainability Risks: The increasing frequency
of extreme weather events, climate-related disruptions, water
scarcity, and the transition towards a low-carbon economy
continue to pose operational, financial, and regulatory risks for
businesses across industries.

- Cybersecurity and Technology Risks: Rapid digitalisation and
the growing adoption of artificial intelligence have increased
exposure to cyber threats, ransomware attacks, data breaches,
and technology-related operational risks, necessitating stronger
cybersecurity and data protection measures.

- Debt and Financial Stability Risks: Elevated sovereign debt levels,
fiscal pressures in several economies, and volatility in global
financial markets remain key concerns that could affect economic
stability, capital flows, and investor confidence.

- Supply Chain and Commodity Price Volatility: Businesses continue
to face risks arising from disruptions in global supply chains,
fluctuations in energy and commodity prices, logistics challenges,
and geopolitical developments affecting the availability of critical
raw materials.

- Regulatory and Compliance Risks: Evolving regulatory frameworks
relating to corporate governance, data privacy, ESG disclosures,
sustainability reporting, taxation, and environmental compliance
may increase compliance obligations and operating costs for
businesses.

Policy Roadmap

- Monetary Policy: Central banks are expected to continue balancing
inflation control with support for economic growth. As inflation
moderates across major economies, monetary authorities are
likely to adopt a cautious and data-driven approach to policy
easing while remaining vigilant against renewed inflationary
pressures and financial market volatility.

- Fiscal Policy: Governments are expected to focus on maintaining
fiscal discipline while sustaining productive public investment in

infrastructure, healthcare, education, and digital transformation.
Fiscal policies are increasingly aimed at enhancing long-term
growth, improving social resilience, and maintaining debt
sustainability.

- Structural Reforms: Continued implementation of structural
reforms to improve the ease of doing business, strengthen labour
market participation, promote innovation, enhance productivity,
and encourage private investment will remain critical for achieving
sustainable economic growth.

- Digital Transformation and Artificial Intelligence: Policymakers
across the world are accelerating investments in digital
infrastructure, artificial intelligence, cybersecurity, and emerging
technologies to enhance productivity, strengthen competitiveness,
and foster innovation-led economic development.

- Energy Transition and Sustainability: Governments continue
to prioritise investments in renewable energy, energy security,
climate resilience, and sustainable infrastructure to support
the transition towards a low-carbon economy while meeting
environmental and ESG commitments.

- Global Trade and Supply Chain Resilience: Policy initiatives aimed
at strengthening supply chain resilience, promoting diversified
sourcing, facilitating cross-border trade, and improving logistics
infrastructure are expected to support global economic stability
and reduce vulnerabilities arising from geopolitical uncertainties.

Medium-Term Outlook (2026-28)

The global economy is expected to witness moderate but stable
growth over the medium term, with global GDP projected to expand
at approximately 3.1-3.2% annually. While easing inflation and a
gradual normalization of monetary policies are expected to support
economic activity, the pace of global growth is likely to remain below its
long-term historical average due to structural challenges, geopolitical
uncertainties, and slower productivity growth.

INDUSTRY OVERVIEW

The Indian Consumer Electronics and Appliances market is estimated
to have reached approximately US$ 26-28 billion in FY 2025-26
and is expected to maintain a healthy growth trajectory over the
medium term, supported by rising household incomes, favourable
demographics, and increasing penetration in Tier II, Tier III, and rural
markets. Indias domestic electronics manufacturing ecosystem has
also witnessed significant expansion, driven by government initiatives
and increasing private sector investment.

Indias electronics manufacturing sector has emerged as a key pillar
of the countrys industrial growth strategy. Electronics production
is estimated to have crossed US$ 130 billion during FY 2025-26,
supported by the Make in India initiative, Production Linked Incentive
(PLI) Schemes, the National Policy on Electronics, and increasing
localisation of manufacturing. The Governments continued emphasis
on semiconductor manufacturing, electronics component production,
and supply chain development is expected to further strengthen Indias
position as a global manufacturing hub.

Market Growth Outlook

- FY 2025-26: The Indian Consumer Electronics and Appliances
(ACE) market is estimated to have reached approximately US$ 26-
28 billion, driven by rising disposable incomes, rapid urbanization,
increasing digital adoption, and growing demand for premium and
smart appliances.

- FY 2027-28: The industry is expected to maintain a healthy growth

trajectory, with the market projected to exceed US$ 32 billion,
supported by increasing household penetration, rural market
expansion, favorable demographics, and continued investments
in domestic manufacturing.

- 2030: Indias ACE market is projected to surpass US$ 40 billion,
driven by robust domestic consumption, increasing exports,
technological innovation, expanding e-commerce channels, and
sustained policy support through initiatives such as Make in India,
Production Linked Incentive (PLI) Schemes, and semiconductor
manufacturing programs. India is expected to further strengthen
its position as one of the worlds fastest-growing consumer
electronics markets and an important global manufacturing hub.

Key Growth Drivers

- Rising Disposable Incomes and Premiumisation: Growth in
disposable incomes, an expanding middle class, and evolving
consumer lifestyles continue to drive demand for premium, smart,
and technologically advanced consumer electronics and home
appliances across urban as well as semi-urban markets.

- Digital Transformation and E-commerce Expansion: Rapid growth
in e-commerce, omnichannel retailing, digital payment adoption,
and improved logistics infrastructure is significantly enhancing
product accessibility and accelerating market penetration across
Tier-II, Tier-III, and rural markets.

- Government Support for Domestic Manufacturing: Continued
policy support through initiatives such as Make in India, the
Production Linked Incentive (PLI) Scheme, the National Policy
on Electronics (NPE) 2019, and the India Semiconductor Mission

is strengthening domestic manufacturing capabilities, promoting
localisation, attracting global investments, and positioning India
as a preferred global electronics manufacturing hub.

- Growing Adoption of Smart and Energy-Efficient Products:

Consumer preference continues to shift towards smart,
connected, and energy-efficient appliances equipped with
Artificial Intelligence (AI), Internet of Things (IoT), and advanced
automation features. Rising awareness of sustainability and
energy conservation is further driving demand for products with
higher energy efficiency ratings.

- Urbanization and Infrastructure Development: Increasing

urbanization, growth in residential housing, expansion of
commercial infrastructure, and improved electrification continue
to support long-term demand for consumer electronics and
household appliances.

- Favourable Demographics and Rural Demand: Indias young
population, rising aspirations, increasing digital literacy, expanding
internet penetration, and improving rural purchasing power
are creating significant long-term growth opportunities for the
consumer electronics and appliances industry.

Future Outlook (2026-2030)

The Indian Consumer Electronics and Appliances (ACE) industry is
expected to witness sustained growth over the next five years, driven by
favorable demographics, rising household incomes, rapid digitalization,
and supportive government policies

Expansion of Smart and Connected Devices: Demand for AI-
enabled, IoT-based, and energy-efficient consumer electronics and
home appliances is expected to increase significantly as consumers
increasingly prioritise convenience, connectivity, and sustainability.

Strengthening Domestic Manufacturing: Continued policy support
through the Make in India initiative, Production Linked Incentive (PLI)
Schemes, and the India Semiconductor Mission.

Digital Retail and Omnichannel Expansion: The continued growth of
e-commerce, omnichannel retailing, digital payments, and organised
retail is expected to improve market penetration across Tier-II, Tier-III,
and rural markets, creating new opportunities for industry participants.

Growth in Exports: Indias increasing competitiveness in electronics
manufacturing, supported by improved infrastructure, skilled
workforce, and global supply chain diversification, is expected to drive
higher exports and strengthen the countrys position as a preferred
manufacturing destination.

OPPORTUNITY AND THREATS

The areas of strength are promoters having long track record, rich
experience and adequate infrastructure with strong warehousing and
transportation network. The company is also delivering some home
appliances under its brand "Aspire." However, the areas of weaknesses:
IT systems are critical to our ability to manage our operations.

Our IT systems enable us to coordinate our operations, from planning,
production scheduling, product ordering, invoicing, delivery, customer
relationship, management and decision support. If we do not allocate
and effectively manage the resources necessary to build and sustain
the proper IT infrastructure, we could be subject to transaction errors,
processing inefficiencies, customer service disruptions and, in some
instances, loss of customers.

Company performance overview

We are engaged in the business of trading of wide range of consumer
durables like kitchen appliances, home appliances, white goods, mobile
phones and its accessories, solar products etc. of multiple renowned
brands such as Bajaj, Prestige, Vivo, Samsung, Crompton, Whirlpool,
Hindware, Havells and many more. Our range of products are offered
at different price points to meet diverse customer requirements across
India along with delivery of products mainly in the rural and semi
urban areas. We provide one platform that bring multiple brands under
one umbrella so as to fulfil the requirements of the customer thus,
improving their lifestyles.

We started our business in 2017 with an objective of providing basic
but advanced products to Indias rural and semi urban population along
with product delivery upto customers doorstop, in rural and semi
urban areas of the country with focus on un-banked and under-banked
customer segments through partners working in this space. To achieve
this objective, in addition to our sales team & rural distributors,

we have entered into commercial arrangements with a large number
of intermediaries like Non-Banking Financial Companies (NBFCs), Non-
Banking Financial Companies (NBFCs) - Micro Finance Institutions
(MFIs) along with Warehousing and Transportation facilities in 18 states
in India.

We operate an asset light business model, where our major expenditure
is for payment of facilitation fees & commission to these intermediaries
for their services which include services like marketing of our products
to their existing customer base in rural and semi urban communities,
allowing our field staff & trainers to interact with their customers,
collation of expected demand and providing banking and financial
services to them for buying our products. Based on such expected
demand, we place orders with related product companies to deliver
the required products at our different warehouses across various states
of India. For the purpose of storing and then delivering the products
to customers, we have warehousing and transporting facility in 18

states of India from where we deliver these products at doorsteps of
customers, mostly in the rural and semi-urban areas.

Our product portfolio comprises of more than 50 products such as
pressure cookers, induction cooktops, mixer-grinder, Dinner Sets,
sewing machine, ceiling fan, iron, inverter bulbs, electric heaters,
mobile phones, television, fridge, washing machine, headphones,
solar lanterns etc. In addition to offering third-party brands, we started
selling Stainless Steel Dinner Sets under our own brand name in 2022.
Furthermore, in 2023, we expanded our product range to include
pressure cookers, also, branded under our name i.e. "Aspire Classico".

Our Company was founded in the year 2017 and our Promoter, Mr.
Nitesh Agarwalla, with his prior experience of approx. 16 years in
sales and marketing has been associated with the company since its
inception. In 2019 he was elevated as the Director of the Company.

Since he himself has worked with NBFCs & MFIs in past, he understands
the ground realities of rural and semi urban operations along with
an exposure of dealing with rural and semi urban population. He is
involved in the critical aspects of our business, including expansion,
sales and marketing. We believe that the sector specific experience and
expertise of our promoter has contributed significantly in the growth of
our Company.

OUR STRENGTHS

We believe that the following are our primary strengths: Strong
portfolio and diverse range of products across consumer preferences.

Our company provides diverse product portfolio across various segments
of consumer durables like kitchen appliances, home appliances, mobile
and accessories, solar products. We deal in a wide range of products,
which enables us to cater widespread customer base with diversified
requirements across India and expanding our reach to the rural and
semi urban areas where there are very few selling channels. We believe
that we have necessary resources, experience and network to launch
additional products in future. We provide a common platform for
products of various reputed and trusted brands. Further, we believe
that we have necessary

resources, experience, and network that can be customized and
leveraged to cater to wider range of consumer durables as per
requirements of the customers. With an operating history of more
than five years, we are primarily known for our wide range of quality
products spread across India at a competitive price.

RISK AND CONCERNS

Aspire employs an efficient Risk Management framework to identify,
assess, and mitigate key business risks. Here are the primary risks and
corresponding mitigation strategies:

1. Competition Risk: Operating in highly competitive market with low
barrier to entry. Aspire faces competition from both organized and
unorganized players in the in aggregator or household appliances
industry.

Mitigation: The Company leverages its expertise, end to- end
offerings, and extensive presence to stay ahead. With a robust
portfolio of over 100 branded products, Aspire ensures quality
products.

2. Regulatory Risk: The focus on the quality, efficacy, safety and
standardization of home appliances or white goods by regulatory
agencies worldwide demands understanding and adaptation to
evolving regulations, increasing compliance risks and cost.

Mitigation: Aspire adheres to all statutory and regulatory
requirements timely, maintaining excellence in quality standards.

3. Reputational Risk: Brand recognition and reputation are crucial
as Aspire expands into new geographies in an increasingly
competitive market. The inability to maintain or enhance its brand
image could negatively impact its business.

Mitigation: The company has developed and continues to enhance
the Aspire brand, focussing on maintaining quality standards and
customer satisfaction. The company actively promotes the brand
through social media and other mediums.

4. Third party risk: The Companys reliance on third party
manufactures exposes it to risk related to quality and compliance.

Mitigation: The Company ensures that third parties adhere to
high standards of probity and integrity through robust compliance
and monitoring systems. Reliable third parties manufacture
Aspires products under strict quality standards monitored by the
Company.

5. Potential litigation risk: Consumer compliant and potential
litigation on ground of product deficiency injuries due to operation
of product could generate negative publicity and reduce consumer
confidence.

Mitigation: The Company maintains a zero tolerance policy on
quality issues. The Companys dedicated contact centres actively
coordinate with customers to process orders, address queries and
complaints, and ensure satisfaction.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

To achieve effectiveness and efficiency of operation, reliability of
financial reporting and compliance with applicable laws, rules, and
regulations and compliance of significant policies, the Company has a
well-defined system of internal control throughout the organization.

The internal audit department regularly probes the deficiency
in operation of internal control and suggest ways to rectify such
deficiencies. To improve efficiency and internal control company has
introduced Microsoft- Navision 2009, an Enterprise Resource Planning
(ERP) system. Due to the total integration, there is a consistent flow
of accurate and easy to access data within all the departments. The
company has adequate systems of internal control to provide reasonable
assurance that assets are safeguarded and protected against loss from
unauthorized use or disposition and those transactions are authorized,
recorded and reported properly.

FINANCIAL PERFORMANCE

The company has achieved a turnover ^ 17,623.26 Lakhs in FY 2025-26
compared to ^ 16695.33 Lakhs during the previous year.

HUMAN RESOURCE AND INDUSTRIAL RELATIONS

One of the "Key" reasons for the exponential growth of Aspire is
undoubtedly its "People". The Company has always provided an open
and challenging work environment, wherein the staff members get an
opportunity to rapidly gain and assimilate knowledge.

Creativity and dedication of all the employees represent it he most
precious assets of the Company.

For the growth of the organization, the human resource function has
an important role to play not only in identifying and recruiting suitable
individuals, but also in developing and rewarding its employees. As
such, we have remained focused on strengthening human capital
through continuous training and development and by upgrading skills
of employees to meet the Companys objectives. The Company has a
union free environment and the industrial relations scenario continued
to be stable during the year.

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:

There has been significant changes in the Financial Ratios of the
Company. The key Financial Ratio are as below:

S.No. Particulars	FY 2024- 25	FY 2025- 26	Reasons for difference
1. Debtors Turnover/ Trade Receivable Ratio	3.67	5.12	Basis change in sales and average trade receivable
2. Inventory Turnover Ratio	6.71	9.92	Basis change of sales of goods and inventory of finished stock.
3. Return on Equity Ratio	9.03	5.04	Basis change of profit and total equity
4. Current Ratio	1.83	2.18
5. Debt Equity ratio	0.18	0.34	Basis change in debt and net worth
6. Net Profit Margin Ratio	2.33	1.45	Basis change of Net profit and total income.
7. Net Capital Turnover Ratio	4.53	3.63

CAUTIONARY STATEMENT

Statements in the Directors Report & Management Discussion and
Analysis describing the Companys objectives, projections, estimates,
expectations or predictions may be "forward-looking statements"
within the meaning of applicable securities laws and regulations.
Actual results could differ materially from those expressed or implied.

Important factors that could make a difference to the Companys
operation include raw material availability and prices, cyclical demand
and pricing in the Companys principal market, changes in Government
regulations, tax regimes, economic developments within India and
the countries in which the Company conducts business and other
incidental factor.

APPRECIATION

Your directors express their warm appreciation to all the employees
working at various units for their diligence and contribution. Your
directors also wish to record their appreciation for the support and
cooperation received from the dealers, agents, suppliers, bankers and
all other stakeholder.