CCL International Ltd Management Discussions

Members are cautioned that this Discussion and Analysis contains forward-looking statements that involve risks and uncertainties. When used in this discussion, the words "anticipate", believe", "estimate", intend, "will", and "expected" and other similar expressions as they relate to the Company or its business are intended to identify such forward looking statements. The Company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of performances or achievements and risks and opportunities could differ materially from those expressed or implied in such forward looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their date.

The following discussion and analysis should be read in conjunction with the Companys financial statements included and notes thereto.

INDIAN ECONOMY Overview

Indias firm resolve to increase its current $3.7 trillion economy to a $30-35 trillion economy by 2047, necessarily requires that our infrastructure sector is, a key driver to propel the country economic growth, should be of the world class. Growing urbanization increasing population, growing disposable income, increasing, demand for energy and financing needs for sustainable living pose a challenge for the infrastructural setup to be modern and upto the expectation of the citizen. Lack of adequate infrastructural facility is the main primary growth constraint, while good infrastructure is widely recognized as an enabler of economic growth. In the coming era of supply chain disruptions, new technologies and reversal of financial deleveraging, infrastructure growth must keep pace with the need created for it.

The Government of India has taken several reforms and initiatives and given a significant push for capital expenditures for key infrastructure sectors, especially highways. The total allocation for the highways sector has increased to Rs. 3.10 lakh crore from Rs. 2.87 lakh crore in the Union Budget for Financial year 2026-27. (Out of the total Rs. 3.10 lakh crore, the National Highways Authority of India (NHAI) has been allocated around Rs. 1.87 lakh crore as part of MoRTHs capital expenditure plan for 2026-27, a 10 % increase from 2025-26) Source: Government of India, Ministry of Finance, Union Budget 2026-27). This substantial investment underscores the importance placed on enhancing the nations transportation infrastructure, which is crucial for boosting trade and connectivity.

Roads and Highways

India has the second-largest road network in the world, spanning approximately 6.7 million kilometres (km). Road transportation continues to be the predominant mode of transport in the country, carrying approximately 64.5% of freight traffic and 90% of passenger traffic. The National Highway network has expanded significantly over the past decade, increasing from 91,287 km in 2014 to approximately 1,46,572 km by FY 2025-26. The continued expansion and improvement of the road network has strengthened connectivity between cities, towns and villages and supported the movement of passengers and goods across the country.

India is pursuing an ambitious roadmap for the development of its highway infrastructure with the objective of creating a world-class, safe, sustainable and technology-enabled road network by 2047, in line with the vision of a Viksit Bharat. The Government is focusing on expanding the National Highway network, developing greenfield expressways and access-controlled high-speed corridors, improving road safety and strengthening highway maintenance and asset management. The development of access-controlled corridors is being accorded particular importance to facilitate faster and safer movement of people and freight. These initiatives, together with technology- enabled monitoring, improved project execution and targeted road-safety interventions, are aimed at enhancing connectivity, reducing travel time and logistics costs, improving road safety and supporting Indias long-term economic growth.

Development of National Highways

During Financial Year 2025-26, the Ministry of Road Transport and Highways (MoRTH) continued to focus on the expansion and strengthening of the National Highway network, development of high-speed corridors and expressways, improvement of road safety, effective monitoring of ongoing projects, removal of project-related bottlenecks and adoption of technology-driven solutions for efficient highway management.

The National Highway network has witnessed significant expansion over the past decade. The total length of National Highways increased from 91,287 km in 2014 to approximately 1,46,572 km in FY 2025-26, representing an increase of nearly 61%. During the same period, the length of operational access-controlled National High-Speed Corridors (HSCs) and Expressways increased substantially from 93 km to 3,052 km.

The Government continued to accord priority to the development of greenfield expressways, access-controlled corridors and strategically important National Highway projects. Under Bharatmala Pariyojana, including the subsumed National Highways Development Project (NHDP), projects covering approximately 26,425 km had been awarded and 22,590 km had been constructed up to March 2026.

During FY 2025-26, the pace of highway development moderated compared with the exceptionally high levels achieved in earlier years, primarily reflecting the pace of project awards and implementation. MoRTHs Year End Review 2025 reported that, up to November 2025, 1,951 km of highway projects had been awarded and 4,612 km had been constructed. Subsequent official information indicated continued progress during the remainder of the financial year.

For comparison, during FY 2024-25, approximately 7,538 km of National Highway projects were awarded and 10,660 km were constructed, compared with 8,581 km awarded and 12,349 km constructed during FY 2023-24. The average pace of National Highway construction stood at approximately 29.21 km per day during FY 2024-25.

The National Highways Authority of India (NHAI) also recorded significant progress during FY 2025-26. NHAI constructed 5,313 km of National Highways during the financial year, against a target of 4,640 km, thereby exceeding its construction target by approximately 15%. NHAIs capital expenditure on National Highway infrastructure during the year amounted to approximately ^2,44,362 crore.

MoRTH and its associated organisations also continued to strengthen technology-enabled monitoring and maintenance of National Highways. During FY 2025-26, Network Survey Vehicles (NSVs) were deployed across 23 States covering approximately 20,933 km to collect and analyse road inventory and pavement-condition data. The use of technologies such as 3D laser scanners, high-resolution cameras, DGPS, IMU and Artificial Intelligence-enabled data processing is expected to facilitate predictive maintenance and more effective management of highway assets.

Overall, FY 2025-26 witnessed continued expansion and consolidation of Indias National Highway infrastructure, with emphasis on high-speed connectivity, access-controlled corridors, expressways, road safety, asset maintenance and technology-enabled project monitoring. These initiatives are expected to further improve connectivity, reduce travel time, enhance logistics efficiency and contribute to the countrys long-term economic growth. (Source: MoRTH/Press Information Bureau (PIB), Year End Review 2025 - Ministry of Road Transport and Highways, 30 December 2025; PIB, Highways Transformation: Powering Indias Journey Towards Viksit Bharat, June 2026; PIB, NHAI Achieves Robust Growth in National Highway Development During FY 2025-26, April 2026; and MoRTH Annual Report 2024-25).

Indias inflation rate did not creep too far above its tolerance range compared to several advanced nations and regions. Several factors are responsible for Indias growth resilience includes strong infrastructure spending, export growth driven by services, improved labour market and robust revenue collections to support public spending. India has sufficient forex reserves to meet its current account deficit and intervene in the forex market to manage volatility in the Indian rupee. Indias financial sector also remains strong, buoyed by improvements in asset quality and robust private-sector credit growth. India is expected to currently grow at 7.2% which is a robust growth rate compared to that of other major economies. Well designed policy measures have reduced inflation pressures, ensured bettertargeting of fiscal policy support and revive sustainable growth.

Significant initiatives have been introduced under Aatmanirbhar Bharat and Make in India programmes to enhance Indias manufacturing capabilities and exports across the industries. These are investor-friendly programmes that domestic companies are utilising to increase their production base and create new capacities which lead to increasing domestic investments.

The current growth trajectory will be supported by multiple structural changes that have been implemented over the past few years. Further support to economic growth will come from the expansion of public digital platforms and measures such as PM GatiShakti, the National Logistics Policy and the Production Linked Incentive schemes to boost manufacturing output. The governments initiatives in agriculture, infrastructure, employment generation and healthcare are expected to have a positive impact on the countrys economic development and growth in the coming years. Apart from housing, construction activity, in general, has significantly risen in FY23 as the much-enlarged capital budget of the central government and its public sector enterprises is rapidly being deployed. With improved and healthier balance sheets of the banking, nonbanking and corporate sectors, a fresh credit cycle has already begun, evident from the growth in bank credit. India has emerged as the fastest-growing major economy in the world backed by its robust democracy and strong partnerships.

INDUSTRY STRUCTURE & FUTURE OUTLOOK

Statements in this Management Discussion and Analysis of financial condition and results of operations of the Company describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forwardlooking statements on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include determination of tariff and such other charges and levies by the regulatory authority, changes in Government regulations, tax laws, economic developments within the country and such other factors globally. The financial statements of the Company are prepared under historical cost convention, on accrual basis of accounting and in accordance with the provisions of the Companies Act, 2013 (the "Act") and comply with the Indian Accounting Standards specified under Section 133 of the Act. The management of CCL International Limited has used estimates and judgments relating to the financial statements on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner, the state of affairs and profit for the year. The following discussions on our financial condition and result of operations should be read together with our audited financial statements and the notes to these statements included in the annual report.

COMPANY OVERVIEW

CCL International Limited is a Public incorporated on 04 June 1991. It is classified as Non-Government Company and is registered at Registrar of Companies, Delhi, also listed with BSE. Its authorized share capital is Rs. 330,000,000 and its paid up capital is Rs. 191,926,000. The company has involved in the area of civil engineering projects particularly in the roads and highways sectors.

CCL International Limited (CCL) with its strong and timely executional capabilities, over the last five year, leveraged its experience and established its market position in civil construction projects. With Large fleet of sophisticated construction equipments, CCLs has an ability to execute with quality, technically complex and high value road construction projects. In recent years the Company has executed and commenced a number of prestigious and praiseworthy projects in the states of Meghalaya, Assam, Mizoram, Haryana and Uttarakhand. Immense opportunities are available to Company in its core competence area of civil engineering projects particularly in the roads and highways sectors.

BUSINESS OPERATIONS

During the year under review, the company has achieved its pre-determine goals successfully and almost complete the projects and try to complete the same in the next year. Further also the company has participate in the new tender in NHIDCL, BRO, MORTH during the year and two tenders were allotted to us during the last financial year in the state of Mizoram

The company has successfully demonstrated strong value addition in the infrastructure sector. In the year under review, the company has accomplished the ongoing projects in an efficient manner .Our Company is offers the vast spectrum of infrastructure services in the areas of Construction of bridges, Construction of roads, and Construction of highways. During the year under review, the Company stepped in contracts with various other organizations like Border Road Organization, Government of Assam, PWD Department Government of Meghalaya which would surely enhance the growth, goodwill and public reputation of your company and would prove out to be more profitable in the coming months.

OPPORTUNITIES

The gradual opening of economies, the demand is gaining omentum as in order to get the growth in GDP back on track, the governments are increasing their spending in construction activities which will increase the demand of construction work. Some of the exciting opportunities that could be addressed include:

• Emerging economies: The emerging markets are experiencing higher urbanization and increased investment in infrastructure. The emerging economies are at the core of most of the new growth opportunities before CCL.

• Technological Innovation: With higher competition in the industry, the focus on innovation has grown. Investing more in technological innovation will help the company capture a larger market share and bring new technologies that help CCL to the needs of the diverse customer segments better.

• Construction on the Rise: Despite some slowing down due to the COVID-19 pandemic, construction is continuing and even growing. There are increased in demand for construction work.

• End user industries: As a result of advancement in the traditional end-user businesses, the demand for construction work will rise in the coming years.

THREATS

• Economic uncertainty: Based on the current and future market environment estimates, the base cost of material are expected to continue to be volatile. GDP witnessed contraction pushing the economy in a recession.

• Dependency on other Sectors: Construction types of works are heavily dependent on the success and growth of other industries. This might lead to revenue loss in one of its biggest markets.

• Any change in the government policy or its budgetary allocation to the infrastructure sector will have a major impact on Companys business.

• Weak currency resulting in pressure on margins.

• Concern for the environment has skyrocketed regulations to protect and improve air quality. Reducing emissions and the development of green vehicles have become a priority.

• Unforeseen business losses.

FINANCIAL OVERVIEW

The Company during the period under review mainly concentrated on the Infrastructure business. As a result of which, a substantial portion of companys revenues are derived from infrastructure projects, these projects provide opportunities for large revenue and profit contributions. The performance of the Company in the current financial year is satisfactory considering the challenges faced by the construction industry.

FINANCIAL PERFORMANCE (STANDALONE)

EQUITY & LIABILITIES:

a. Equity Share Capital: There is no change in share capital during the financial year 2025-26.

b. Other Equity: the Other Equity of the company has increased from Rs. 2807.24 Lakhs to Rs. 2902.15 Lakhs during the financial year 2025-26.

c. Networth: The Companys net worth increased from Rs. 4726.50 Lakhs to Rs. 4821.41 Lakhs during the financial year 2025-26.

ASSETS:

a. Property, Plant & Equipment (PPE): The Companys PPE increased by Rs. 197.85 Lakhs i.e. from Rs. 1694.61 Lakhs to Rs. 1892.46 Lakhs during the financial year 2025-26.

b. Non-Current Investments: There is no change in the investments during the financial year 2025-26.

c. Inventories: Inventories comprise of Work-in-progress. The Inventories is increased by Rs. 197.85 Lakhs i.e. from Rs. 1442.15 Lakhs to Rs. 1912.24 Lakhs during the financial year 2025-26.

d. Trade Receivables: The Companys trade receivables decreased by Rs. 867.58 Lakhs i.e. from Rs. 1349.02 Lakhs to Rs. 481.44 Lakhs during the financial year 2025-26.

OPERATIONAL PERFORMANCE:

a. Revenue from Operations: The Company has reported Revenue from Operations of Rs. 5035.38 Lakhs during the financial year 2025-26 as against Rs. 4582.25 Lakhs during the previous year 2024-25, resulting the increase in the revenue from operations by 9.89%.

b. Other Income: The other income reported by the company for the financial year 2025-26 is Rs. 343.62 Lakhs as against Rs. 58.73 Lakhs during the previous year 2024-25. Other income comprises of Capital Gain from sale of Fixed Assets, Interest on bank deposits, interest on income tax refund, profit from sale of property, income from buy back of shares and miscellaneous income.

c. Finance cost: The Finance cost is Rs. 154.42 Lakhs for the year under review as against Rs. 149.02 Lakhs in the previous year.

d. Depreciation: The Companys depreciation for the financial year 2025-26 has decreased from Rs. 267.92 Lakh to Rs. 263.61 Lakh.

e. EBIDTA: The Company has reported an EBIDTA of Rs. 562.46 Lakhs during the financial year 2025-26 against Rs. 510.14 Lakhs in the previous year 2024-25.

KEY RATIOS

Key financial ratios are given below:

Particulars	Year Ended
	2025-26	2024-25
Debtors Turnover	5.50	3.10
Inventory Turnover	3.00	3.78
Interest Coverage Ratio	1.48	1.48
Current Ratio	2.46	2.09
Debt Equity Ratio	0.40	0.47
Net Profit Margin (%)	1.89%	1.56%
Return on Net-worth (%)	1.97%	1.51%

RESOURCES AND LIQUIDTY

Your Company presently maintains conservative financial profile so as to build its future based on sound financial resources.

RISK MANAGEMENT

The Company is exposed to certain financial risks, principally interest rate risk, construction risk and risks associated with competition among others. Your Company recognizes the need to control and limit risk, which it faces in day to day course of the business. These risks are managed through risk management policies that are designed to minimize the potential adverse effects of these risks on financial performance of the Company. The following section discusses some of these risks and steps taken by CCL to mitigate such risks.

> Competition Risk - With increased project awarding by the government, the road and construction industry is expected to attract several domestic as well as international players. This increase in competition may lead to an aggressive bidding environment, resulting in price cut and low operating margins as well as lower market share of project awards. Risk Mitigation - With five years of industry experience and led by a proven management team, who have honed their project managing skills right from the drawing board to the final execution, the Company is confident of meeting present and future competition and enjoy continued growth. To further mitigate this risk, where considered prudent, the Company forms strategic partnerships and joint ventures with quality players. This facilitates synergies both in the financial and technical and enables it to compete with the larger players.

> Slow-down in Road Sector - Any slowdown on part of the government to award road projects could adversely affect growth prospects. Risk Mitigation - The present government has taken focused steps to ensure that infrastructure creation moves at an accelerated pace, thus reducing the possibility of this risk to a considerable extent. Moreover, the Company already has sufficient order backlog to ensure growth momentum in the medium term.

> Construction Risk - Infrastructure projects involve complex design and engineering, significant procurement of equipment and supplies and extensive construction management and other activities conducted over extended time periods, sometimes in remote locations. This could lead to cost-time overruns, thereby impacting profitability. Risk Mitigation - CCL with its vast experience of project management, balanced capital structuring and efficient cost control measures is well geared to mitigate this risk.

^ Input Risks - The availability of the right quality and quantity of resources (raw material and finances) is critical for the timely completion of infrastructure projects. Besides, cost escalation could affect profitability Risk Mitigation - The Company controls its projects directly - as opposed to subcontracting core infrastructure assignments - enabling it to ascertain when material would be required in what quantity and where. It procures key raw materials (steel and cement) directly from leading manufacturers for a more timely access. Moreover, most of the Companys contracts are protected with input escalation clauses, which protect profitability

> Manpower risk-Since people represent the most valuable asset in the business, any attrition could lead to a valuable loss of competitive edge. Recruitment and retention of specialized professionals is an industry wide problem. Risk Mitigation - The Company maintains a cordial and informal working environment. It delegates authority at all levels through a defined system of the scope of work, responsibility and reporting structure which results in leaders being grown at every tier. It remunerates employees according to the prevailing industry standards and conducts in-depth training - functional and attitudinal, leading to a low attrition rate.

HUMAN RESOURCES

The Company continued with efforts to ensure that its pool of human resources is "future ready" through its robust processes of learning & development, capability building and its development programmes. Efforts were taken to develop leadership lines as well as to enhance technical and functional capabilities with special focus on nurturing young talent, in order to face future challenges. It will ensure that the development initiatives result not just in better skills but in enhanced performance and higher engagement. The top management conducted several discussions with their employees to discuss multiple issues towards discussing leadership qualities, values, responsibilities, freedom to work and take decisions. Going ahead, the Company will continue to invest in its people to strengthen its delivery model.

Your Company maintains its focus on its Human Resources. It believes that peoples contribution is the main engine for growth. We deliver on the strength of our people and in a dynamic business environment. Company policy entrails looking for qualified, talented and enthusiastic individuals and building up to a rich human resource base. Our HR team focuses on employee training, inculcation of values and enhancing functional expertise. Manpower is biggest strength in construction sector. The key HR objective is to ensure that our employees are aware of the role they are expected to play in the organization to be able to drive organizational momentum.

All employees are working in harmonious and teamwork atmosphere which are at all-time high. The Company has a team driven work process with completely flat organization structure. This not only helps us nurture leaders but also give us capable and assured colleagues at all levels. There are 12 employees in the Company in the Financial Year 2025-26.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a proper and adequate system of internal controls. This ensures that all transactions are authorized, recorded and reported correctly, and assets are safeguarded and protected against loss from unauthorized use or disposition. In addition there are operational controls and fraud risk controls, covering the entire spectrum of internal financial controls. Management reviews and supplements the process of internal financial control framework. The internal financial control framework has been designed to ensure that the financial and other records are reliable for preparing financial and other statements and for maintaining accountability of assets. In addition, the Company has identified and documented the risks and controls for each process that has a relationship to the financial operations and reporting

VALUE CREATION

Our Company is continuously striving to create value in all spheres of its activities. This encompasses not only value for its customers but also for its stakeholders. The Company has adopted Accounting Standards incorporating best practices and have moved towards transparency in its reporting .We will continuously endeavor to provide insight on the operation of the Company to aid all stakeholders.

The Board would like to place on record its deep sense of appreciation for the continued confidence reposed in the company by the shareholders as well as the sincere efforts put in by the executives and staff at all levels for progress of the company.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable laws or regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand/supply and price conditions, variation in prices of raw materials, changes in government regulations, tax regimes, economic developments and other incidental factors.