Callista Industries Ltd Management Discussions

OVERVIEW:

The Financial Year 2025 26 marked a significant turning point in the Companys journey. During the year, the Company received approval from BSE Limited for the revocation of the suspension of trading in its equity shares, enabling it to actively pursue its long-term business objectives. The Company has also successfully completed a preferential fund raise, strengthening its financial position and creating a strong foundation for future growth.

Further, the Company has initiated strategic steps towards expanding its business operations, including the proposed incorporation/acquisition of a subsidiary. The management is focused on identifying sustainable business opportunities and building a diversified business platform to generate long-term value for all stakeholders.

FINANCIAL PERFORMANCE & REVIEW:

During the financial year ended 31st March, 2026, the Company did not generate any revenue from operations. However, the Company earned Other Income of Rs. 71.56 Lakhs during the year. The funds raised through the preferential issue and other strategic initiatives undertaken during the year have positioned the Company to commence business expansion in the forthcoming periods. The management continues to maintain financial discipline and prudent utilisation of resources while evaluating suitable business opportunities.

SEGMENT WISE PERFORMANCE:

As the Company did not carry out any operating business activities during the year under review,

segment-wise performance is not applicable.

ECONOMIC OUTLOOK AND BUSINESS ENVIRONMENT:

The Indian economy continues to provide encouraging opportunities for businesses across various sectors. With a strengthened financial position, an active listed status, and strategic expansion initiatives, the Company is well placed to evaluate and pursue new business opportunities. The management remains optimistic about the Companys future prospects and continues to explore suitable avenues that align with its long-term growth strategy.

FUTURE OUTLOOK:

The Company has entered a new phase of growth and transformation. Following the revocation of suspension, successful fund raising through preferential issue, and proposed expansion through a subsidiary, the management is confident of creating a sustainable business platform. The Companys focus will be on identifying profitable business opportunities, enhancing operational capabilities, strengthening corporate governance, and delivering long-term value to its shareholders.

RISK ASSESSMENT AND MITIGATION:

As the Company progresses towards expanding its business operations, it recognizes the risks associated with entering new business segments, regulatory changes, market conditions, and economic uncertainties. The management follows a disciplined approach towards evaluating investment opportunities and implementing appropriate financial and operational controls to mitigate such risks.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an adequate system of internal controls commensurate with the current size and nature of its operations. These controls are designed to safeguard assets, ensure compliance with applicable laws and regulations, maintain accuracy of financial records, and support efficient business operations. The internal control framework will continue to be strengthened in line with the Companys future expansion plans.

HUMAN RESOURCE DEVELOPMENT / INDUSTRIAL RELATIONS:

The Company believes that its people are its most valuable asset. As the Company moves into its next phase of growth, it remains committed to building a capable workforce and fostering a culture of integrity, accountability, and continuous learning. Industrial relations during the year remained cordial and harmonious.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

(Rs. In Lakhs)

Particular	For the year ended	For the year ended
	31.03.2026	31.03.2025
Revenue from Operation	-	-
Other Income	71.56	0.04
Profit/Loss Before Depreciation and Tax	(0.31)	(63.12)
Tax (Including Deferred Tax) Net	-	-
Profit/Loss After Depreciation and Tax	(0.31)	(63.12)
Other Comprehensive Income (Net of Tax)	-	-
Total Comprehensive Income for the Year	(0.31)	(63.12)