Fine Line Circuits Ltd Management Discussions

As per the provisions of the Corporate Governance under the Listing regulations, the Management Discussion and Analysis (MDA) Report form part of the Boards Report and reflects current state of the business.

Your Company is making Printed Circuit Boards (PCBs) and has its manufacturing facilities in Seepz- SEZ, Mumbai. It continues to remain a SEZ Unit.

1) INDUSTRY STRUCTURE AND DEVELOPMENT

PCBs are basic Electronic Building Block components used in all Electrical and Electronic Products. As a SEZ Exporter, the main Competition comes from China. The product is a complex one with several aspects of technology intricacy and above all continuously increasing customer expectations.

Electronics Manufacture in India has a disability relative to China & the Government has recognized this and to boost

& Support the Electronics manufacturing has formulated & announced the National Policy on Electronics having various incentives to affect the disabilities faced by Indian Electronics Manufacturer with this Electronics Manufacture is sure to grow.

Our own focus after exports to over 14 countries is now also on the domestic Market, hence we are well positioned to ride this growth phase.

2) MODERNISATION, OPPORTUNITY AND THREATS

The Company continuously updates its manufacturing processes focused towards yield, capability and capacity improvements. The improvements are on all fronts, equipment, processes / systems and personnel Training. The opportunities are in the small to medium volume, faster delivery and with broad range of surface finishes and various laminate materials focused for the European markets.

The threats are on account of volatile exchange rate movements and rising input and overhead costs.

3) SEGMENTWISE PERFORMANCE

Printed Circuits Boards (PCBs) is the only business segment in which the Company is dealing.

4) OUTLOOK a) BUSINESS SCENARIO

RF Microwave PCBs with special materials with special surface finishes and of special designs has resulted in good business growth and continues to show promise for the future. Further the Company has put in place a New Product pipeline and this will augur well in the coming year. Also your Company has identified fertile new markets to penetrate which will also augur well in the coming years whilst still being well rooted in its main markets of USA, Germany and India.

Space (Domestic and Global) and Defence (Domestic) are growth drivers for the Company. The Companys legacy of PCB supplies to ISRO will hold good stead in penetrative other related markets. b) HIGH TECHNOLOGY MULTILAYER UNIT

The High Technology Multilayer Unit (HTMU) continued to progress well.

5) RISK AND CONCERNS

The financial status of the Company is stable. The cash flow is judiciously managed to get the best exchange rate gains. Slow growth in the global markets, high power cost, volatile exchange rate movements and consistently rising personnel costs are risks that the Company is facing and tackling.

6) INTERNAL CONTROL

The Company has Internal Auditors who conducts internal audit that assesses the internal control systems. The Statutory Auditors and the Audit Committee review these controls regularly. Any change in the internal control that is recommended is studied and implemented based on the Company needs and feasibility of implementation.

7) FINANCIAL PERFORMANCE

The Company rationalized the products line considering the price levels to remain competitive in the volatile Exchange Rate, Higher material and power cost scenario. The Company expects to improve on all these counts in the coming year.

8) HUMAN RESOURCE DEVELOPMENT AND BUILDING LEADERSHIP QUALITIES

The personnel of the Company are vital part of the organization. The Company continues its policy to train them in-house, provide opportunity for external training and challenges them to exert and rewards superior performance. The Company is pleased to state that this has made the 2^nd level supervisory personnel to show encouraging performance and to rise up. The Company has engaged contractors workmen for support services and follows the same policy of training and rewarding the good performer.

The number of employees of the Company as on 31^st March 2025 was 145. (Previous year 146).

9) There were significant changes in the following ratios as compared to the immediately previous financial 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 therefore, including: (a) Current ratio : 28.35% (b) Debt service coverage ratio : 27.19% (c) Return on Equity : 81.10%.

(d) Trade Payables turnover ratio (times) : 27.18% (e) Net Profit ratio : 47.37%

Reasons for change in ratios by more than 25 % as compared to the previous Year : (1) Current ratio - Decrease in current liabilities (2) Debt service coverage ratio - Improved mainly because of higher profit. (3) Return on Equity - Improved because of higher sales and improved realisation (4) Net Profit ratio - Improved because of higher sales and improved realisation

10. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof: The details of return on net worth as follows:

( Rs. In Lakhs)

Particulars	Year
	2025	2024
Return on net worth (%)	1.97	1.25

Return on net worth is computed as net profit by average net worth. Net profit has increased to . 19.74 Lakhs (2025) against . 10.71 Lakhs (2024). Continuous focus on New Products, New Volumes and New Markets, good realization has enabled us to maintain Profitability.

11. FUTURE OUTLOOK

Your Companys outlook is Positive as New Products and New markets have been the focus in the last few years and due to this we have added to our Product offering PCBs with new materials and surface finishes and exported to multiple new markets spread across 14 countries.

Cautionary Statement:

Statement in this 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 operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factor.

	On behalf of the Board of Directors,
	Abhay Doshi	Rajiv Doshi
Place: Mumbai	Managing Director	Wholetime Director
Date: August 11, 2025	DIN: 00040644	DIN: 00651098