IMEC Services Ltd Management Discussions

The Company is primarily engaged in providing management and consultancy services and is also engaged in trading activities covering various categories of goods, including agricultural products, metals and metal alloys, as applicable to its business operations. Your Company is gearing up to face such developments and re-engineer its business strategy as required from time to time. Much awaited revival of economic growth and its resultant benefits, early signs of which are being felt, are likely to provide favorable business conditions for the Company.

The sectors in which the Company operates are influenced by domestic economic conditions, global developments, demand and supply dynamics, commodity prices, taxation and regulatory changes, availability of finance, technological developments and competitive intensity. The Company continues to monitor these developments closely and remains focused on adapting its business strategies and operating practices in line with changing market conditions.

During FY 2025-26, the Indian economy continued to demonstrate resilience despite a challenging global environment characterized by geopolitical uncertainties, fluctuations in commodity prices, evolving trade policies and uneven global economic growth. Domestic consumption, investment activity, infrastructure development and the continued expansion of the services sector remained important drivers of economic activity. Accordingly, the Company continues to evaluate market conditions and seek opportunities consistent with its risk appetite and business strategy.

The outlook for the Indian services sector remains positive, supported by structural factors such as increasing digitalization, g rowing d omestic demand, and expansion of business services, infrastructure development and the increasing importance of India as a global services destination.

The Companys management believes that the continued growth of Indias domestic economy, increasing adoption of professional and consultancy services and development of new business opportunities may provide a favorable operating environment. At the same time, the Company remains cognizant of risks arising from global economic uncertainties, geopolitical developments, inflationary pressures, changes in taxation and regulations, interest-rate movements and competitive pressures.

This section lists forward-looking statements that involve risks and uncertainties. Our outlook, risks and concerns are as follows:

The economic environment, pricing pressures and decreased employee utilization rates could negatively impact our revenues and operating results. Any inability to manage our growth could disrupt our business, reduce our profitability and adversely impact our ability to implement our growth strategy. Intense competition in the market for technology services could affect our revenues. Our success depends in large part upon our management team and key personnel and our ability to attract and retain them.

New and changing corporate governance and public disclosure requirements add uncertainty to our compliance policies and increase our costs of compliance changes in the policies of the Government of India or political instability may adversely affect economic conditions in India generally, which could impact our business and prospects.

The Company has adequate internal financial controls commensurate with the size and nature of its business. The adequacy of which has also been reported by the Auditors of Company in his report as required under the Companies (Auditors Report) Order, 2016 issued by the Government of India. Adequate system of internal control is in place which assures:

Proper recording and safeguarding of assets.

Maintaining proper accounting records and reliability of financial information. Review the process of identification and management of Business Risks.

The Company is committed to conducting its business responsibly and to continual improvement in its environmental performance, in line with applicable requirements and stakeholder expectations.

The industrial relations climate of the Company continues to remain harmonious and cordial. The Company remains focused on employee development, productivity, quality, safety and maintaining a conducive work environment.

During FY 2025-26, the total income including other income of the Company stood at 47.32 lakh, as compared to 2,875.14 lakh in the previous year.

The Company reported a net profit of 621.05 lakh, as compared to 2,541.91 lakh in the previous year.

The financial statements have been prepared in accordance with the applicable Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013, read with the relevant rules and other applicable accounting principles.

During the financial year under review, Revenue from Operations stood at 47.32 Lakhs compared to 2,875.14 Lakhs in the previous financial year. This variation is primarily attributable to the completion and successful delivery of major service projects executed during FY 2024 25. The Company is actively re-aligning its operational strategy, focusing on expanding its service offerings, acquiring new client mandates, and securing long-term service contracts to ensure stable revenue streams in subsequent periods."

Statements in this "Management Discussion Analysis" describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Companys operation include globalization of services, improved business environment for services, reformed regulations in services to enhance performance and create new opportunities, adapting to innovative policies to the growth of services, tax regimes, economic developments in India and other incidental factors. The Company has obtained all market data and other information from sources believed to be reliable or its internal estimates, although its accuracy or completeness cannot be guaranteed.

Cyber security controls are embedded in your Companys Information Technology (IT) environment to ensure protection from risks of unauthorized access, unauthorized changes or unavailability of the systems. Key cyber security controls include secure configuration of enterprise assets and software, malware defenses, periodic vulnerability and penetration testing, controlled access to critical business applications, appropriate segregation of duties and ongoing cyber security awareness programs for users.

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations and predictions may contain forward-looking statements. Actual results may differ materially from those expressed or implied due to various risks and uncertainties, including economic conditions, regulatory changes, competition, taxation, market conditions and other factors beyond the Companys control.