Inertia Steel Ltd Management Discussions

a) Industry structure and development:

The Company engaged in the business as merchants, commission agents, brokers, buyers, sellers, importer, exporter, dealers, business agents, trading in iron and steel etc. since its inception.

b) Opportunities:

Industrial design and operations encompass many different types of opportunities, which carry out working with prefabricated materials, to heavy engineering that relies on the use of raw materials.

c) Segment-wise performance:

The Companys operating businesses are organized and managed separately according to the nature of products manufactured and services provided, with each segment representing a strategic business unit that offers different products and as reviewed by the Board on time to time basis.

d) Major threats:

Achieving sustainable growth can also present challenges. Turning a small product engineering company into a larger one normally requires a lot of capital. The skills, expertise, the supply chain to develop products, the costs of manufacturing, including raw material costs are major threats for sustaining in the long term.

e) Future Outlook:

As per the current analysis there seems to be a positive outlook for Industrial manufacturing and trading sector in the coming years.

f) Risk Management:

Risk is an important element of corporate functioning and governance. The Company has established the process of identifying, analyzing and treating risks, which could prevent the

Company from effectively achieving its objectives. It ensures that all the risks are timely defined and mitigated in accordance with the well structured risk management process.

g) Internal control system and their adequacy:

The Company has robust system of internal controls that are commensurate with its size and nature of business operations.

h) Performance:

The Company has constantly trying to increase its turnover as well as profitability.

i) Material development in Human Resource:

The Company places high importance on the development of its human resources. It imparts regular training to its employees to make them more focused to adapt to the constant changes in the business environment. Industrial relation in the units was satisfactory.

j) Discussion on financial performance with respect to operational performance:

Total Turnover of the Company is Rs. 5824.32 /- Lakhs for the financial year ended on 31st March, 2025 as compared to Rs. 39.40/- Lakhs for the financial year ended on 31st March, 2024. The Net worth of the Company is Rs.1560.53/- Lakhs for the financial year ended on 31st March, 2025 as compared to Rs. 28.00/- Lakhs for the financial year ended on 31 st March, 2024.

k) Other disclosures for key financial ratios:

Key financial ratios including Debtors Turnover, Inventory Turnover, Interest Coverage Ratio, Current Ratio, Debt Equity Ratio, Operating Profit Margin (%), Net Profit Margin (%) and other sector- specific are mentioned in the audited financial statement which forms part of this Annual Report.

l) Cautionary Statement:

The statements made in this report describe the Companys objectives, expectations and projections that may be forward looking statements. The actual results might differ materially from those expressed or implied depending on the economic conditions, government policies and other incidental factors, which are beyond the control of the Company and management.