Hemang Resources Ltd Management Discussions

The Indian coal industry continues to play an important role in the countrys energy security and industrial development. Coal remains a major source of energy for thermal power generation and is also an important input for the steel, cement, sponge iron, captive power and other energy-intensive industries.

India continues to be one of the worlds largest coal producers, supported by sustained growth in domestic coal production, increasing mine capacity, improved evacuation infrastructure and Government initiatives aimed at reducing import dependence.

The coal trading industry operates within a dynamic environment influenced by domestic coal availability, international coal prices, freight and logistics costs, currency movements, quality and grade differentials, demand from industrial consumers and Government policies relating to coal imports and domestic supply.

For a trading company, market conditions can therefore have a direct impact on trading volumes, selling prices, inventory carrying periods and margins.

2. COAL IMPORTS AND MARKET ENVIRONMENT

During FY 2025-26, Indias total coal imports stood at approximately 246.37 million tonnes, compared with 243.63 million tonnes in FY 2024-25. Coking coal imports increased from 57.58 million tonnes to 66.33 million tonnes, while non-coking coal imports declined from 186.05 million tonnes to 180.04 million tonnes.

The increase in coking coal imports reflects the continuing requirement of the steel industry for imported coking coal, given the limited availability and quality characteristics of domestic coking coal. Non-coking coal imports, on the other hand, remain subject to domestic availability, power-sector requirements, international prices and freight economics.

The Government continues to promote domestic coal availability and import substitution. This is particularly relevant to traders dealing in imported thermal coal, as increased domestic availability may influence import volumes and pricing. At the same time, specialised grades, quality requirements and demand from specific industrial consumers continue to create opportunities for imported coal.

The coal market is therefore expected to remain competitive, with trading opportunities dependent on procurement efficiency, quality management, customer relationships, logistics and the ability to respond quickly to changes in market prices.

3. BUSINESS PROFILE OF THE COMPANY

Hemang Resources Limited is engaged in the business of coal and coke trading. The Companys business model involves sourcing and trading coal and related products, with the ability to cater to the requirements of industrial customers.

During FY 2025-26, the Companys revenue profile reflected a significant increase in the contribution from imported coal. Revenue from the Coal Trading Division, including sale of imported coal and cargo handling charges, constituted the principal component of the Companys operating revenue.

The Company continues to focus on maintaining business relationships with suppliers and customers, identifying commercially viable trading opportunities and managing inventory and working capital prudently.

Given the nature of the trading business, profitability is influenced not only by revenue growth but also by procurement prices, selling prices, inventory valuation, logistics costs, foreign exchange movements and the duration for which inventory is held.

4. FINANCIAL PERFORMANCE

The financial performance of the Company for FY 2025-26, compared with FY 2024-25, is summarised below:

Financial Highlights

(Rs. in lakh)

Particulars	FY 2025-26	FY 2024-25	Change
Revenue from Operations	808.08	880.18	-8.19%
Other Income	79.55	96.41	-17.49%
Total Revenue	887.63	976.59	-9.11%
Total Expenses	941.81	890.57	+5.75%
Profit/(Loss) Before Tax	(54.18)	86.03	-140.74%
Profit/(Loss) After Tax	(42.92)	54.02	-179.45%

During FY 2025-26, revenue from operations stood at Rs.808.08 lakh compared with Rs.880.18 lakh in the previous year, representing a decline of approximately 8.19%.

Total revenue declined by approximately 9.11% from Rs.976.59 lakh to Rs.887.63 lakh. The decline was primarily attributable to lower revenue from operations and lower other income.

The Company recorded a loss before tax of Rs.54.18 lakh during FY 2025-26 compared with a profit before tax of Rs.86.03 lakh in FY 2024-25. After tax, the Company reported a loss of Rs.42.92 lakh compared with a profit of Rs.54.02 lakh in the previous year.

The deterioration in profitability was principally attributable to the change in the cost structure associated with stock-in-trade and the lower revenue base during the year.

5. ANALYSIS OF REVENUE FROM OPERATIONS

Revenue from operations during FY 2025-26 comprised primarily of coal trading activities, cargo handling charges and sale of land.

Revenue Component	FY 2025-26	FY 2024-25
Imported Coal	Rs.714.37 lakh	Rs.123.19 lakh
Cargo Handling Charges	Rs.7.62 lakh	Rs.4.15 lakh
Sale of Land	Rs.86.10 lakh	Rs.752.85 lakh
Total Revenue from Operations	Rs.808.08 lakh	Rs.880.18 lakh

A significant change in the Companys revenue mix was observed during FY 2025-26.

Revenue from imported coal increased substantially from Rs.123.19 lakh in FY 2024-25 to Rs.714.37 lakh during FY 2025-26. Consequently, imported coal accounted for approximately 88% of the Companys revenue from operations during FY 2025-26.

In contrast, revenue from sale of land declined significantly from Rs.752.85 lakh to Rs.86.10 lakh. Accordingly, the Companys operating revenue became more closely aligned with its core coal trading activities during FY 2025-26.

The change in revenue composition is considered strategically relevant as it reflects a greater contribution from the Companys trading business rather than from asset monetisation.

The Company intends to continue evaluating opportunities in coal and coke trading while maintaining appropriate commercial and risk controls.

6. COST AND EXPENSE ANALYSIS

Total expenses increased from Rs.890.57 lakh in FY 2024-25 to Rs.941.81 lakh in FY 2025-26.

The principal components were:

Particulars	FY 2025-26	FY 2024-25
Purchases of Stock-inTrade	Rs.91.25 lakh	Rs.126.17 lakh
Change in Stock-in-Trade	Rs.753.98 lakh	Rs.421.06 lakh
Employee Benefits Expenses	Rs.39.48 lakh	Rs.37.79 lakh
Finance Costs	Rs.0.02 lakh	Negligible
Depreciation & Amortisation	Rs.0.46 lakh	Rs.0.73 lakh
Other Expenses	Rs.56.62 lakh	Rs.304.82 lakh
Total Expenses	Rs.941.81 lakh	Rs.890.57 lakh

The purchase of stock-in-trade declined from Rs.126.17 lakh to Rs.91.25 lakh. However, the amount recognised under change in inventories of stock-in-trade increased substantially during the year.

Employee benefit expenses increased marginally to Rs.39.48 lakh from Rs.37.79 lakh, reflecting broadly stable employee-related costs.

Finance costs remained negligible at Rs.0.02 lakh, reflecting the Companys low dependence on interest-bearing borrowings.

Depreciation and amortisation expenses declined from Rs.0.73 lakh to Rs.0.46 lakh.

Other expenses reduced significantly from Rs.304.82 lakh in FY 2024-25 to Rs.56.62 lakh in FY 2025-26. The reduction demonstrates a significant improvement in the Companys control over operating and other expenditure.

7. PROFITABILITY

The Company reported a loss before tax of Rs.54.18 lakh during FY 2025-26 against a profit before tax of Rs.86.03 lakh in the previous year.

The decline in profitability should be viewed in the context of:

Lower revenue from operations;

Lower contribution from sale of land compared with the previous year;

Change in the Companys revenue mix;

Higher inventory-related cost recognised during the year; and Overall increase in total expenses.

At the same time, the significant reduction in other expenses and negligible finance costs provide a comparatively favourable cost structure for the Companys core trading activities going forward.

The Management remains focused on improving trading margins, inventory turnover, procurement efficiency and operating cost discipline.

8. WORKING CAPITAL AND INVENTORY MANAGEMENT

Inventory management remains an important element of the Companys coal trading business.

Coal is a commodity where market prices can fluctuate significantly depending upon international prices, domestic demand, freight rates, exchange rates, quality differentials and seasonal factors. Accordingly, excessive inventory holding can expose the Company to price and carrying-cost risks, while inadequate inventory may affect the ability to fulfil customer requirements.

The Company continues to focus on aligning procurement with customer requirements, monitoring inventory levels and managing the timing of purchases and sales.

Going forward, efficient inventory turnover, prudent procurement and disciplined working- capital management will remain key priorities for the Company.

9. KEY BUSINESS DRIVERS

The Companys coal and coke trading business is influenced by several factors, including: Domestic and international coal prices;

Demand from power, steel, cement and other industrial sectors;

Availability and quality of domestic coal;

Import requirements for specific grades and qualities;

Coking coal demand from the steel industry;

Ocean freight and inland transportation costs;

Foreign exchange movements;

Government policies relating to coal imports and domestic supply;

Inventory holding period and working-capital availability; and Relationships with suppliers and industrial customers.

The Ministry of Coal continues to identify coking coal imports as an important source for bridging the gap between domestic availability and requirements, while non-coking coal is imported by power plants, cement plants, captive power plants, sponge iron producers, industrial consumers and coal traders.

10. OPPORTUNITIES

The Indian coal trading market continues to provide opportunities arising from the countrys industrial and infrastructure growth.

The Companys principal opportunities include:

Growth in Industrial Consumption

Continued growth in electricity demand, steel production, cement consumption and industrial activity is expected to support the overall demand for coal and coke.

Coking Coal Opportunity

The continued requirement for imported coking coal by the steel industry provides opportunities for traders with the capability to source suitable grades and manage international procurement and logistics.

Specialised Coal Grades

Specific industrial users may require coal with particular calorific value, ash content, moisture and other quality parameters. The ability to source and supply such grades can provide opportunities for value-added trading.

Import-Linked Trading

Although the Government is promoting import substitution, imports continue to remain relevant where domestic coal availability or quality does not adequately meet consumer requirements.

Customer and Supplier Network

The Companys established relationships with customers and suppliers can support the development of repeat business and provide opportunities to scale trading volumes in a disciplined manner.

11. KEY RISKS AND CHALLENGES

The Companys business is exposed to the inherent risks associated with commodity trading. Commodity Price Risk

Coal and coke prices can fluctuate due to changes in global demand and supply, geopolitical developments, freight rates, weather conditions and changes in energy markets.

Inventory Risk

Holding inventory for extended periods may expose the Company to commodity price declines and increased carrying costs.

Foreign Exchange Risk

Imported coal transactions may expose the Company to fluctuations in foreign currency exchange rates, particularly where purchases and sales are denominated in different currencies.

Logistics Risk

Availability and cost of shipping, ports, railways, road transportation and other logistics infrastructure can influence the landed cost and profitability of imported coal.

Regulatory Risk

Changes in Government policy relating to coal imports, domestic coal allocation, environmental regulations, taxation, customs duties or other regulatory requirements may affect the trading environment.

Credit Risk

Trading activities may involve receivables from customers. Timely collection of receivables and appropriate customer credit assessment therefore remain important to maintaining healthy cash flows.

Competition

The coal trading business is competitive, with participation from established domestic and international traders. Maintaining competitive procurement, efficient logistics and strong customer relationships remains important for sustainable margins.

12. RISK MANAGEMENT

The Company seeks to manage business risks through prudent commercial practices, appropriate evaluation of customers and suppliers, monitoring of commodity prices and inventory levels and disciplined financial management.

The Management continues to monitor market developments and seeks to align procurement decisions with expected customer demand wherever commercially feasible.

Particular emphasis is placed on:

Inventory monitoring;

Customer credit assessment;

Supplier evaluation;

Procurement discipline;

Timely collection of receivables;

Monitoring of commodity price movements;

Monitoring of foreign exchange exposure; and Maintaining adequate liquidity.

The Company continues to evaluate risks and opportunities on an ongoing basis and takes appropriate measures based on prevailing market conditions.

13. INTERNAL CONTROL AND FINANCIAL DISCIPLINE

The Company maintains internal controls commensurate with the size and nature of its operations. The internal control framework is intended to safeguard assets, ensure accuracy and reliability of financial reporting, promote operational efficiency and ensure compliance with applicable laws and regulations.

The Management continues to review the adequacy and effectiveness of internal controls periodically and strengthen them wherever considered necessary.

Given the trading nature of the Companys business, particular importance is placed on controls relating to procurement, inventory, sales, receivables, payments and financial reporting.

14. HUMAN RESOURCES

Human resources remain an important component of the Companys operations. The Company seeks to maintain an appropriate organisational structure with focus on employee capability, accountability and productivity.

Employee benefits expenses remained relatively stable during FY 2025-26 at Rs.39.48 lakh compared with Rs.37.79 lakh in the previous year.

The Management believes that maintaining a capable and committed workforce is important for efficient execution of the Companys business strategy.

15. SUSTAINABILITY AND RESPONSIBLE BUSINESS

The coal industry is undergoing a gradual transition in response to increasing environmental and sustainability considerations. While coal continues to remain important to Indias energy

security and industrial development, the industry is also witnessing greater emphasis on efficient utilisation, responsible sourcing, environmental compliance and reduction of operational impacts.

As a coal and coke trading company, the Company remains conscious of the environmental considerations associated with the commodities in which it operates and seeks to conduct its business in compliance with applicable laws and regulations.

The Company will continue to monitor developments in Indias energy transition and regulatory framework and assess their potential implications for its business.

16. OUTLOOK

The medium-term outlook for Indias coal market remains supported by continued economic growth, industrial activity, infrastructure development and electricity demand. At the same time, increasing domestic coal production and Government initiatives aimed at import substitution may place greater competitive pressure on imported thermal coal.

The Companys assessment is that opportunities will continue to exist in coal and coke trading, particularly in areas where domestic supply does not fully meet the quantity, quality or specification requirements of industrial consumers.

Coking coal represents an important opportunity given Indias continued dependence on imports to meet the requirements of the steel industry. The Companys ability to identify appropriate sourcing opportunities, manage inventory efficiently and maintain customer relationships will remain important to its future performance.

The Company intends to pursue growth in a calibrated manner, with emphasis on:

Increasing the contribution of core coal and coke trading;

Improving trading margins and procurement efficiency;

Maintaining prudent inventory levels;

Strengthening customer and supplier relationships;

Improving working-capital efficiency;

Maintaining low financial leverage;

Exercising discipline in commodity exposure; and

Exploring commercially viable opportunities in coal and related commodities.

The Management remains cautiously optimistic about the long-term prospects of the Indian coal trading industry. However, given the inherent volatility of commodity markets, the Company will continue to adopt a disciplined approach towards procurement, inventory management, customer credit and capital deployment.

17. CAUTIONARY STATEMENT

This Management Discussion and Analysis contains forward-looking statements concerning the Companys business, financial performance, industry trends and future prospects. These statements are based on Managements current expectations, estimates and assumptions and are subject to various risks and uncertainties.

Actual results may differ materially from those expressed or implied due to changes in economic conditions, coal and coke prices, domestic and international demand, Government policies, regulatory developments, foreign exchange rates, logistics costs, availability of inventory, competition and other factors beyond the Companys control.

The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as may be required under applicable laws and regulations.

REAL ESTATE INDUSTRY

In India, the real estate sector is the second-highest employment generator, after the agriculture sector. The real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021. By 2025, it will contribute 13% to the countrys GDP. The emergence of nuclear families, rapid urbanisation and rising household income are likely to remain the key drivers for growth in all spheres of real estate, including residential, commercial, and retail. Rapid urbanisation in the country is pushing the growth of real estate.

The Indian real estate market is projected to experience a substantial increase, potentially reaching a value of US$ 5-7 trillion by the year 2047, with the possibility of surpassing US$ 10 trillion.

Construction is one of the largest sectors in terms of FDI inflow. FDI in the sector (including construction development & activities) stood at Rs. 3,94,340 crore (US$ 45.75 billion) from April 2000- March 2025

In the first quarter of CY25 (January-March), Indias residential real estate market experienced a notable slowdown, with total housing sales across the top seven cities declining by 28% year- on-year to approximately 93,280 units, down from over 1.30 lakh units in Q1 2024

In FY23, Indias residential property market witnessed with the value of home sales reaching an all-time high of Rs. 3.47 lakh crore (US$ 42 billion), marking a robust 48% YoY increase. The volume of sales also exhibited a strong growth trajectory, with a 36% rise to 379,095 units sold.

Housing sales across the top seven Indian cities saw a slight dip of 4% in 2024, with around 4.59 lakh units sold compared to 4.76 lakh in 2023, as per ANAROCK data.

Housing demand surged 77% from FY19 to FY25 with 5.44 lakh homes registered across major cities, showing strong buyer interest despite rising prices.

Indian real estate developers operating in the countrys major urban centres are poised to achieve a significant feat in 2023, with the completion of approximately 5,58,000 homes.

In 2023, luxury home sales in India priced at Rs. 4 crore (US$ 481,927) and above surged by 75%, doubling their share of total housing sales.

In FY24-25, India recorded Foreign Tourist Arrivals (FTAs) of 9.66 million (Provisional) which account for Foreign Exchange Earnings (FEEs) of Rs. 2,77,842 crores (US$ 32.23 Billion) with a growth of 19.8%.

Indias office sector had a record-breaking 2024, clocking 89 million sq. ft. of gross leasing across the top 8 cities — the highest ever. This marks a 19% jump over 2023, surpassing the previous peak by 14 million sq. ft.

For the first time, gross leasing in Indias top 7 markets surpassed the 60 million sq ft mark, reaching an impressive total of 62.98 million sq ft, marking a substantial 26.4% increase compared to the previous year. Notably, the December quarter emerged as the busiest quarter on record, with gross leasing hitting 20.94 million sq ft.

Private equity investment in Indian real estate hit US$ 742million (Rs. 64 billion) in the first quarter of 2025, a strong 35% jump compared to the same period last year, according to Savills India.

Indian real estate attracted Rs. 35,300 crore (US$ 4.15 billion) in private equity (PE) investments in 2024, marking a 32% annual increase, according to Knight Frank Indias Trends in Private Equity Investment in India 2024 report.

The Indian real estate sector witnessed strong Private Equity investments in Indias real estate sector, stood at US$ 3 billion in the first half of 2024.

CBRE anticipated 14% increase in gross leasing transactions for office spaces across nine major cities in calendar year 2024, with a projected total of 70 million square feet. This growth is attributed to increased demand from both global and domestic corporate entities.

The Smart Cities Mission presents a major opportunity for real estate developers by targeting the development of 100 smart cities in India, stimulating the growth of commercial centers in their vicinity. Demand for industrial and logistics space hit a record in 2023, totaling 38.8 million square feet across 8 cities.

Foreign investments in the commercial real estate sector were at US$ 10.3 billion between 20172021. As of February 2022, Developers expected demand for office spaces in SEZs to shoot up after the replacement of the existing SEZs act.

Blackstone agreed to acquire a 40% stake in Kolte-Patil Developers for $134 million, involving both preferential shares and a secondary stake purchase.

Brookfield India REIT acquired a 50% stake in four Bharti properties, including Wordmark Aerocity. In return, Bharti got an 8.5% stake in the REIT, while Brookfield secured first rights to buy the rest after April 2026

Godrej Properties recorded all-time high sales of Rs.29,444 crore in FY25, selling 15,302 homes up 31% in value and 29% in volume year-on-year.

Private market investor, Blackstone, which has significantly invested in the Indian real estate sector worth Rs. 3.8 lakh crore (US$ 50 billion) is seeking to invest an additional Rs. 1.7 lakh crore (US$ 22 billion) by 2030.

Global Real Estate Market Experts JLLs 2024 Real Estate Transparency Index shows that India has moved into the transparent zone for the first time, ranking 31st out of 89 countries.

According to Savills India, real estate demand for data centres is expected to increase by 15-18 million sq. ft. by 2025.

Foreign investors pump around US$ 3.1 billion yearly into Indian real estate, with a 37% YoY increase in foreign inflows in the first half of 2024.

Technology companies held the highest share in leasing activity at 22% during first quarter of 2024.Engineering and manufacturing (E&M) companies accounted for 13%, and banking, financial services and insurance account for 12%. Flexible space operators increase by 48%, showcasing their notable contributions.

In 2023, Indias residential sector saw record sales and new property launches, overcoming concerns about monetary tightenings impact on housing loans. Major banks disbursed about Rs. 2.7 lakh crore (US$ 32.45 billion) in credit by January 2024, an annual increase of around 37%.

In the FY25, approximately Rs. 2.2 lakh crore (US$ 25.52 billion) was gathered from stamp duty, land revenue, and registration fees

HFCs reported a 12-14% year-on-year growth in assets under management (AUM) for both FY24 and FY25, indicating sustained demand in the housing loan segment.

In the FY23, approximately US$ 24.1 billion was gathered from stamp duty, land revenue, and registration fees

Home sales across top 8 cities in India surged 68% YoY to reach ~308,940 units in 2022, signifying a healthy recovery in the sector.

According to the Economic Times Housing Finance Summit, about 3 houses are built per 1,000 people per year compared with the required construction rate of 5 houses per 1,000 population. The current shortage of housing in urban areas was estimated to be ~10 million

units. An additional 25 million units of affordable housing are required by 2030 to meet the growth in the countrys urban population.

The Government of India has been supportive towards the real estate sector. In August 2015, the Union Cabinet approved 100 Smart City Projects in India. The Government has also raised FDI (Foreign Direct Investment) limits for townships and settlements development projects to 100%. Real estate projects within Special Economic Zones (SEZ) are also permitted for 100% FDI. Construction is one of the largest sectors in terms of FDI inflow. FDI in the sector (including construction development & activities) stood at Rs. 3,83,229 crore (US$ 44.46 billion) from April 2000-September 2024.

In FY24 export from SEZs reached US$ 163.69 billion. Exports from SEZs reached US$ 157.2 billion in FY23 and grew ~28% from US$ 133 billion in FY22.In the first-half of 2021, India registered investments worth US$ 2.4 billion into real estate assets, a growth of 52% YoY.

Share of the top listed developers in the Indian residential market is expected to increase to 29% in FY24, from 25% in FY21, driven by a strong pipeline for residential project launch.

In the Union Budget 2024-25, under PM Awas Yojana Urban 2.0, housing needs for 1 crore urban poor and middle-class families will be met with a Rs. 10 lakh crore (US$ 120.16 billion) investment, including Rs. 2.2 lakh crore (US$ 26.44 billion) in central assistance over the next 5 years.

Government of India along with the governments of respective States has taken several initiatives to encourage development in the sector. The Smart City Project, with a plan to build 100 smart cities, is a prime opportunity for real estate companies. Below are some of the other major Government initiatives:

• The Union Budget 2025-26 allocated Rs. 1 lakh crore (US$ 11.66 billion) to the Urban Challenge Fund, aiming to transform cities into growth hubs through redevelopment and infrastructure projects.

• Government launches Rs. 15,000 crore (US$ 1.75 billion) funds to revive stalled affordable and mid-income housing projects in Swamih Fund II.

• In the Union Budget 2024-25, under PM Awas Yojana Urban 2.0, housing needs for one crore urban poor and middle-class families will be met with a Rs. 10 lakh crore (US$ 120.16 billion) investment, including Rs. 2.2 lakh crore (US$ 26.44 billion) in central assistance over the next 5 years.

• In the 2024-25 Interim Budget, Union Minister of Finance, Ms. Nirmala Sitharaman announced a boost for Indias affordable housing sector by adding two crores more houses to the flagship scheme PMAY-U.

• In the Union Budget 2023-24, the Finance Ministry announced a commitment of Rs. 79,000 crore (US$ 9.64 billion) for PM Awas Yojana, which represents a 66% increase compared to last year.

• In October 2021, the RBI announced to keep benchmark interest rate unchanged at 4%, giving a major boost to the real estate sector in the country. The low home loan interest rates regime was expected to drive the housing demand and increase sales by 35-40% in the festive season in 2021.

• Under the Union Budget 2021-22, tax deduction up to Rs. 1.5 lakh (US$ 2,069.89) on interest on housing loan, and tax holiday for affordable housing projects have been extended until the end of fiscal 2021-22.

• The Atmanirbhar Bharat 3.0 package announced by Finance Minister Ms. Nirmala Sitharaman in November 2020 included income tax relief measures for real estate developers and homebuyers for primary purchase/ sale of residential units of value up to Rs. 2 crore (US$ 271,450.60) from November 12, 2020, to June 30, 2021).

• In order to revive around 1,600 stalled housing projects across top cities in the country, the Union Cabinet approved the setting up of Rs. 25,000 crore (US$ 3.58 billion) alternative investment fund (AIF).

• Government created an Affordable Housing Fund (AHF) in the National Housing Bank (NHB) with an initial corpus of Rs. 10,000 crore (US$ 1.43 billion) using priority sector lending short fall of banks/financial institutions for micro financing of the HFCs.

• As of December 31, 2022, India had formally approved 425 SEZs, and as of January 2023, 270 SEZs are operational. Most special economic zones (SEZs) are in the IT / BPM sector.

https://www.ibef.org/industry/real-estate-india

OPPORTUNITIES & THREATS:

The Companys business comprises of two segments viz. Coal Trading and Infrastructure and the opportunities and threats on the companys business are summaries below.

Opportunities & Threats in Coal Trading Sector:

Opportunities	Threats
• Increase in demand due to rapid growth in Power Sector • Government of India has taken many initiatives to increase domestic coal supplies, these includes: • allowing captive miners to sell upto 50% of coal in the open market • Introducing commercial coal mining for private companies • planned investment of more than INR 50,000 crore on coal evacuation infrastructure • auctioning of abandoned mines of CIL on revenue share mechanism and • Introducing national coal index for coal trading. https:/ / www.pwc.in/research- and-insights-hub/coal.html • Coal to remain the key primary energy source in India.	• Pressure of international body like UN to comply Paris Agreement & COP26 at Glasgow on climate change to curb use of fossil fuel. • Impact of commercial mining • Possibility of availability of low cost imported coal may significantly affect future of indigenous production. • Increase in proportion of renewables in the energy mix and demand stagnation in future. • Resistance to part with land, creating problems in possession of land and rehabilitation. • Rapid appreciation in land cost. • Decrease in coal demand and Increase in proportion of renewables in the energy mix. • Energy storage solutions. • Non availability of proper infrastructure for transportation of coal.
• Large scale rural electrification and power for all under UDAY scheme. • Enhanced demand of power due to increased use of electric vehicles. • Strong economic growth in India and resultant demand for energy, particularly coal as an energy source. • Being a cheaper source of energy compared to alternate sources available in India, demand to continue to remain strong. • Opportunity to adopt coal to liquid and coal to gas technology.
Opportunities & Threats in Real estate Sector:
Opportunities	Threats
• Government initiatives for implementing and amendments of Statutory regulations like RERA, GST • Relaxation of FDI funding in Real Estate Sectors • Relaxation in taxation and regulator aspects in real estate • Implementation of Pradhan Mantry Aawas Yojana • Reduction in interest rate on Home loans	• Economic Recession • Competition with other Assets • Rapid increase in cost of material and labours post COVID • Non availability of appropriate labour • Rapid appreciation in land cost. • •

COAL INDUSTRY

India continues to remain one of the worlds largest coal-consuming economies, with coal playing a significant role in meeting the countrys electricity and industrial energy requirements. The outlook for the Indian coal industry remains stable to positive, supported by sustained electricity demand, industrial activity and the Governments continued focus on enhancing domestic coal production and reducing dependence on imports.

Indias all-India coal production reached approximately 1,047.52 million tonnes (MT) in FY 202425, compared with 997.83 MT in FY 2023-24, registering growth of approximately 4.98%. During FY 2025-26, domestic coal production again crossed the 1 billion tonne milestone, reflecting the continued expansion of domestic production capacity and improved availability of coal for key

consuming sectors. The Government has set an all-India raw coal production target of approximately 1,157 MT for FY 2025-26, comprising targets of 875 MT for Coal India Limited, 72 MT for Singareni Collieries Company Limited and 210 MT from captive, commercial and other mines.

A significant structural development during FY 2025-26 was the continued growth of captive and commercial coal mining. Production from captive and commercial coal mines reached approximately 210.47 MT, compared with 190.95 MT in FY 2024-25, representing growth of about 10.22%. During the year, several new coal blocks were operationalised, further broadening the domestic production base and reducing the dependence on Coal India Limited for incremental supplies.

Coal imports, however, continue to remain relevant, particularly for coking coal required by the steel industry and for certain non-coking coal requirements. Total coal imports stood at approximately 246.37 MT in FY 2025-26, compared with 243.63 MT in FY 2024-25. Coking coal imports increased to approximately 66.33 MT, while non-coking coal imports were approximately 180.04 MT. The continued import requirement is primarily attributable to the gap between domestic availability and the quality/specifications required by certain end-use industries, particularly steel.

The Government continues to pursue measures aimed at increasing domestic production and reducing coal imports. These include commercial coal mining auctions, expediting the development of coal blocks, the Single Window Clearance mechanism, Project Monitoring Units for coal block allottees, increased utilisation of captive and commercial mines and policy measures to encourage coal gasification and other value-added uses of coal. The Governments long-term objective is to increase domestic coal production to approximately 1.5 billion tonnes by FY 2029-30.

The domestic coal market is also expected to benefit from continued growth in electricity consumption. The International Energy Agency expects Indias coal consumption to increase further in 2026, driven substantially by rising electricity demand, with coal continuing to contribute materially to the countrys power generation mix.

Accordingly, the medium-term outlook for the Indian coal sector remains favourable, supported by increasing domestic production, improved logistics and supply infrastructure, expansion of captive and commercial mining and sustained demand from the power, steel, cement and other industrial sectors. At the same time, volatility in international coal prices, freight rates, regulatory developments, environmental considerations and the progressive expansion of renewable energy capacity will remain important factors influencing the industry.

REAL ESTATE INDUSTRY

The Indian real estate sector continues to demonstrate resilience and remains an important contributor to economic activity, employment generation and infrastructure development. The

sector is being supported by urbanisation, rising household incomes, improved connectivity, infrastructure development, formalisation of the real estate market and increasing institutional participation.

The outlook for FY 2025-26 and the period ahead remains constructive across residential, commercial, industrial and warehousing segments. Demand for residential properties continues to be supported by demographic growth, urbanisation, rising incomes and a preference for better-quality and larger homes. Industry data indicates that the residential market is increasingly seeing demand for premium and luxury housing, while developers are also expanding their presence in Tier-II and Tier-III cities. ICRA expects new project launches across the top seven cities to increase by approximately 6-9% in FY2025-26, reaching around 620-640 million square feet.

The office segment continues to benefit from strong occupier demand, particularly from Global Capability Centres (GCCs), technology, BFSI, engineering and manufacturing, healthcare, consulting and flexible workspace operators. During the first nine months of 2025, Grade A office leasing across the major markets exceeded 50 million square feet, representing approximately 8% year-on-year growth, with GCCs accounting for nearly 40% of the leasing activity. Office demand is expected to remain robust, with industry estimates indicating potential annual demand of around 65-70 million square feet in the near term.

Industrial and warehousing real estate is also expected to remain a key growth area. The expansion of e-commerce and quick-commerce, manufacturing activity, third-party logistics, automotive and engineering sectors, together with improved road and freight connectivity, is driving demand for Grade A warehouses and logistics facilities. During the first nine months of 2025, demand across the top eight industrial and warehousing markets reached approximately 26.5 million square feet, and industry expectations indicate annual demand of approximately 3040 million square feet over the coming years. Growth is also expected to increasingly extend to Tier-II and Tier-III cities as infrastructure corridors, expressways, dedicated freight corridors and multi-modal logistics parks improve connectivity.

Alternative real estate segments, including data centres, co-living and senior living, are emerging as important growth opportunities. Indias data-centre market has expanded significantly, supported by increasing cloud adoption, artificial intelligence, digitalisation, 5G, data consumption and data-localisation requirements. As of 2025, data-centre capacity across the top seven markets had exceeded 1,300 MW, with the associated real estate footprint estimated at nearly 16 million square feet. Further expansion is expected as demand for AI and cloud infrastructure increases.

Institutional investor participation in Indian real estate also strengthened considerably during 2025. Institutional investments reached an all-time high of approximately US$8.5 billion, representing 29% year-on-year growth. Domestic institutional capital contributed approximately US$4.8 billion, while office assets remained the leading investment segment, followed by residential assets. The continued participation of domestic and international institutional

investors is expected to support further formalisation, consolidation and professionalisation of the sector.

Looking ahead, Indias real estate sector is expected to remain on a sustained growth trajectory, supported by urban expansion, infrastructure development, demographic changes, digital transformation and increasing institutionalisation. Industry projections indicate that Indias real estate market could expand substantially over the long term, potentially reaching US$5.8 trillion by 2047 and increasing its contribution to GDP from the current level.

The sector, however, will continue to face challenges including elevated construction costs, availability and cost of financing, regulatory and approval timelines, changes in interest rates, economic cycles and evolving environmental and sustainability requirements. Notwithstanding these factors, the underlying demand drivers remain strong and the Companys management remains cautiously optimistic about the medium- to long-term prospects of the Indian real estate sector.

The Company has a proper and adequate Internal Control System to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition, and those transactions are authorized, recorded and reported correctly.

The Company, in consultation with its Statutory Auditors and Internal Auditor, periodically reviews and ensures the adequacy of Internal Control Procedures for the orderly conduct of business and also includes a review to ensure overall adherence to Management Policies and applicable Laws & Regulations. The Companys internal audit team carries out extensive audits throughout the year, across all functional areas.

Our Philosophy is "Human Resource" is the most important factor for achieving efficiency, productivity and quality. Human Relationship Management assumes great importance in the Company and human resources are the great asset.

During the year under review, the Company continued its emphasis on Human Resource Development as one of the critical area of its operation. Realizing that the human capital being the Companys greatest asset, the up gradation of skills, personality and attitude of its employees is always looked after. Measures are also being implemented for enhancing the motivation and commitment of the work force and building up a unique positive work culture. Employer - Employee relation throughout the year were cordial.

The Company organizes periodical trainings to encourage and develop vital human resource. All the efforts are aimed to ensure develop and nurture the entrepreneurial attitude and skill among the employees. The Company places on record its appreciation for the valuable contributions made by employees at all levels.

The Financial Statements for the year ended March 31, 2026 have been prepared in compliance with the requirement of Companies Act 2013 and Ind AS.

During Financial Year 2025-26, the Company recorded;

o Total income of Rs. 887.63 Lakhs, comprising income from operations of Rs. 808.08 Lakhs and other income of Rs. 79.55 Lakhs.

o The Earnings before Interest, Depreciation, Tax and Amortization (EBIDTA) stood at a loss of Rs. 54.66 Lakhs.

o Depreciation for the year amounted to Rs. 0.46 Lakhs, while interest expenses were Nil.

o Accordingly, the Profit before Tax (PBT) stood at a loss of Rs. 54.18 Lakhs.

Factor affecting the reduction in turnover are non-availability of working capital facility. However company is trying to close issues with banks to get the business revive in coming years.

Companys business comprises two segments viz. Coal Trading Division and Infrastructure division. During the Financial Year 2025-26, the turnover from coal trading division is Rs. 721.98 Lakhs and from Infrastructure division is Rs. 86.10 Lakhs as compared to previous year turnover from coal trading division is Rs. 127.33 Lakhs and Infrastructure division is Rs. 752.82 Lakhs.

As on March 31, 2026 Coal Trading Division is having Segment Assets of Rs. 2226.33 Lakhs and Infrastructure division is having Segment Assets of Rs. 151.20 Lakhs.

Certain 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 securities laws and regulations which have been prepared in compliance with the requirements of the Companies Act, 2013, the Accounting Standards issued by the Institute of Chartered Accountants of India, the Listing Agreements and all other applicable rules and regulations. The actual performance may vary depending on the market fluctuations, changes in Government policies, rules and regulations change in economic conditions nationally as well as internationally.