Choksi Asia Ltd Management Discussions

Company Overview

With a history spanning over 35 years, Choksi Asia limited has established itself as a trusted name in high-precision technology and industrial solutions. Originally founded as a specialist in imaging materials, we have undergone a strategic evolution to become a premier provider of Non-Destructive Testing (NDT) solutions.

Following our amalgamation with Choksi Asia Private Limited, we have consolidated our expertise to become a "One-Stop Solution" for Non-Destructive Testing. We empower engineers and quality control professionals with the tools they need to assess the integrity of materials and systems.

FY 2024–25 represented an important phase of integration, during which the Company established the operational and organisational foundation for its NDT business. During FY 2025–26, the focus has progressively moved towards consolidating this foundation, strengthening execution capabilities and translating the combined resources and relationships into sustainable business opportunities.

The Company continues to leverage the technical expertise, trained manpower, equipment, customer relationships and operational infrastructure available to it following the amalgamation. The emphasis during the year has been on strengthening solution delivery, improving operational coordination, developing customer relationships and building capabilities for the next phase of growth.

The Company remains focused on establishing itself as a reliable inspection and quality assurance solutions provider, with the objective of creating a scalable business model and delivering sustainable value to its stakeholders.

Industry Overview and Market Dynamics

Non-Destructive Testing (NDT) is a critical quality assurance and inspection function used to assess the integrity of materials, components, structures and systems without causing damage to their usability or serviceability. NDT plays an important role in identifying defects, supporting preventive maintenance, improving asset reliability and reducing the risk of operational failures.

The relevance of NDT continues to increase across sectors such as oil and gas, infrastructure, manufacturing, power, automotive, aerospace, nuclear energy and other engineering-intensive industries. The increasing complexity of industrial assets, emphasis on safety and regulatory compliance and the need to maximise asset life are supporting the continued adoption of inspection and testing solutions.

In India, investments in infrastructure development, industrial capacity, manufacturing and energy-related projects continue to create opportunities for the NDT sector. In addition, greater awareness of asset integrity and preventive maintenance is encouraging customers to adopt more structured inspection programmes.

The industry is also witnessing continuing development in inspection techniques and technologies. The ability to combine technical expertise, qualified manpower, appropriate equipment and reliable reporting is increasingly important in meeting customer requirements.

Building on the market opportunity identified in the previous year, the Company is focused on strengthening its presence in selected industrial segments and developing long-term customer relationships. The Company believes that its integrated capabilities provide a suitable platform to participate in the long-term growth of the NDT industry.

Financial Performance

The financial performance for the year reflects the Companys ongoing efforts towards business development, operational execution, resource optimisation and cost management.

Revenue from operations: Rs. 4,931.03 lakhs (Previous year: Rs. 3,698.16 lakhs)

Profit After Tax (PAT): Rs. 533.40 lakhs (Previous year: Rs. 309.90 lakhs)

The Company remains committed to maintaining financial discipline while investing selectively in capabilities, manpower, equipment and systems required to support future growth.

Consolidation of NDT Business and Synergies

The amalgamation completed in the previous phase of the Companys transformation provided access to a combination of technical manpower, customer relationships, equipment, operational facilities and industry experience. During FY 2025–26, the Company continued to consolidate these resources and further integrate them into its operating framework.

The customer relationships inherited through the amalgamation, particularly across oil and gas, infrastructure and manufacturing, continue to provide a platform for business development. The Company is focused on deepening these relationships, increasing customer engagement and identifying opportunities for repeat and expanded assignments.

The integration of operational processes, systems and human resources is an ongoing exercise. The Company continues to refine workflows, standardise field operations and improve coordination between technical, administrative and support functions.

The benefits of the amalgamation are increasingly being viewed not merely as an integration exercise, but as the foundation for building a more efficient, technically capable and scalable NDT business.

Opportunities and Threats

Opportunities

- Continued expansion of Indias industrial and infrastructure base is expected to support sustained demand for inspection, testing and asset integrity solutions.

- Growing emphasis on safety, statutory compliance and quality assurance provides opportunities for specialised NDT solution providers with appropriate technical capabilities.

- Increasing focus on preventive and predictive maintenance can create opportunities for recurring inspection programmes and long-term customer engagements.

- The Companys existing relationships in sectors such as oil and gas, infrastructure and manufacturing provide a platform for deeper customer penetration and development of additional business opportunities.

- The Companys technical manpower and access to inspection equipment provide an opportunity to expand its ability to undertake specialised and value-added inspection assignments.

- There is potential to develop business relationships in international markets, including the Middle East and Southeast Asia, where industrial development and asset integrity requirements may create additional demand for NDT solutions.

- The continued evolution of inspection technologies provides opportunities for the Company to broaden its technical capabilities and enhance the value delivered to customers.

Threats

- The availability and retention of qualified and certified NDT professionals remains an important industry challenge, particularly as demand for specialised technical manpower increases.

- Investment in advanced NDT equipment and technology may require continued capital allocation and could affect margins if utilisation levels are not commensurate with the investment.

- Changes in technical standards, certification requirements and regulatory frameworks require continuous monitoring, training and compliance.

- Competition from established domestic and international NDT providers may result in pricing pressure and increased competition for customers and skilled personnel.

>- The timing of industrial, infrastructure and capital expenditure projects can influence the demand and timing of inspection assignments.

- Dependence on customer project schedules and the cyclical nature of certain industrial sectors may lead to variations in order flows and capacity utilisation.

The Company continues to monitor these factors as part of its overall risk management process and takes appropriate measures to mitigate their potential impact on operations and financial performance.

Internal Controls and Risk Management

The Company has implemented an internal control framework commensurate with the size and nature of its operations and in compliance with the applicable provisions of the Companies Act, 2013.

During FY 2025–26, the Company continued to build upon the control framework strengthened during the post-amalgamation period. The focus has been on ensuring that operational processes, financial reporting, asset management and compliance activities remain subject to appropriate checks and review.

- Risk-based internal reviews of key business functions to identify operational gaps, strengthen compliance and improve control effectiveness.

- Periodic verification and monitoring of technical equipment to ensure proper utilisation, maintenance, availability and accountability of critical assets.

- Continued review and implementation of Standard Operating Procedures (SOPs) for field inspections to promote consistency, safety, efficiency and quality in operational execution.

- Strengthening of reporting and information systems to support timely monitoring and management decision-making.

- Continued integration and refinement of systems and processes across legacy and NDT operations to improve coordination and data flow.

- Regular monitoring of statutory, technical and operational compliance requirements applicable to the Companys activities.

The Audit Committee periodically reviews the adequacy and operational effectiveness of the internal control systems. Management continues to evaluate and strengthen controls in line with the Companys evolving business requirements.

Human Resource Development

The Companys NDT business is knowledge- and skill-intensive, making human capital a key determinant of operational capability and execution quality. Accordingly, the Company continues to place significant emphasis on recruitment, retention, training and development of qualified technical personnel.

Building on the previous years recruitment and integration of certified NDT professionals, the Company has continued to focus on strengthening its technical workforce and developing the capabilities required to support its expanding operational requirements.

- Strengthening the pool of certified NDT professionals, technicians and engineers with relevant technical experience and industry certifications.

- Continuing technical and operational training to improve employee capability and adaptability to changing customer and project requirements.

- Conducting periodic safety, quality and compliance training programmes to reinforce safe working practices and professional standards.

- Encouraging knowledge sharing and cross-functional coordination to improve execution efficiency and reduce dependence on individual personnel.

- Maintaining a performance-oriented environment that encourages accountability, productivity and contribution towards the Companys business objectives.

- Continuing efforts towards employee retention and development in view of the specialised nature of NDT skills and the competitive manpower environment.

The Company remains committed to maintaining a professional, safe and collaborative work environment. Industrial relations remained stable during the year.

Employee count as of 31 March 2026: 12

Outlook

The successful transition and integration of the NDT business during the previous year provided the Company with a platform for its next stage of development. During FY 2025–26, the Company has continued to focus on consolidating this platform and strengthening the capabilities required for sustainable growth.

The outlook for the NDT industry remains supported by the increasing focus on safety, asset integrity, quality assurance, preventive maintenance and regulatory compliance. Continued industrial and infrastructure development in India is expected to create opportunities for inspection and testing solution providers.

The Company intends to build upon its existing customer relationships and technical capabilities while selectively pursuing new opportunities across relevant industrial sectors. Greater emphasis will be placed on quality of execution, customer retention, resource utilisation and development of repeat business.

Going forward, management will continue to focus on strengthening technical capabilities, improving operational efficiencies, optimising utilisation of manpower and equipment, and developing a broader and more resilient customer base.

The Company will also evaluate opportunities for geographical expansion, including potential international opportunities, while maintaining a disciplined approach towards investments and risk management.

Management believes that the foundation established through the amalgamation, together with the capabilities developed thereafter, positions the Company to pursue sustainable growth and create long-term value for its shareholders, customers, employees and other stakeholders.

Cautionary Statement

Certain statements contained in this Management Discussion and Analysis Report may constitute forward-looking statements within the meaning of applicable laws and regulations. These statements are based on managements current expectations, estimates, assumptions and projections concerning the Companys future business, financial performance and operating environment.

Actual results may differ materially from those expressed or implied in such forward-looking statements due to various factors, including changes in economic conditions, industry trends, regulatory developments, market competition, availability of skilled manpower, technological developments, project execution risks and other unforeseen circumstances.

The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.

Date: May 29, 2026

Place: Mumbai

For and on behalf of the Board of Directors

Choksi Asia Limited (Formerly known as Choksi Imaging Limited)

(CIN: L71200MH1992PLC388063)

Sd/-

Samir Choksi

Managing Director

DIN:00049416

Sd/-

Jay Choksi

Whole time Director

DIN:07151509