Innovative Ideals and Services India Ltd Management Discussions

Industry Overview:

The Company operates in the electronic and technology solutions sector, which continues to witness developments driven by increasing adoption of technology, automation and connected solutions. The sector remains competitive and is influenced by technological changes, customer requirements, pricing pressures and overall economic conditions.

Business Overview:

Innovative Ideals and Services (India) Limited continues to operate in its existing line of business with a focus on serving its customers and developing sustainable business opportunities. During the financial year 2025-26, the Company faced a challenging operating environment, resulting in a significant decline in business volumes and financial performance.

Management continues to focus on improving operational efficiency, strengthening business relationships, controlling costs and identifying viable opportunities for revival and sustainable growth.

Financial Performance:

The financial performance of the Company for FY 2025-26, as compared with the previous financial year, is summarised below:

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	Rs. 54.29	Rs. 322.34
Total Income	-	Rs. 50.89
Profit/(Loss) Before Tax	Rs. (934.56)	Rs. 135.29
Profit/(Loss) After Tax	Rs. (934.89)	Rs. 100.39

During FY 2025-26, revenue from operations declined substantially compared with the previous year. The reduction in revenue, together with the Companys cost structure and other expenses, resulted in a significant loss for the year. The Company reported a loss after tax of Rs. (934.89) lakhs as against a profit after tax of Rs. 100.39 lakhs in FY 2024-25.

Management is taking steps towards rationalising costs, improving operating efficiency and rebuilding revenue-generating activities.

Financial Position and Liquidity:

The Companys financial position remained under pressure during the year under review. The Company had borrowings and accumulated losses which adversely affected its net worth and liquidity position.

The management is conscious of the need to strengthen liquidity, improve working-capital management and address its financial obligations. Appropriate measures are being evaluated and implemented based on available resources and business conditions.

Opportunities:

The Companys future opportunities will depend on its ability to improve business volumes, strengthen customer relationships, optimise its operating structure and identify commercially viable opportunities in its sector. The increasing adoption of technology-enabled solutions may provide opportunities for businesses with appropriate capabilities and execution strength.

Risks and Concerns:

The Companys operations are subject to various risks, including fluctuations in demand, competitive pressures, technological changes, working-capital requirements, liquidity constraints and financial leverage. The present financial position also requires continued attention to cash flows and the Companys ability to meet its financial obligations.

Management continues to monitor these risks and take appropriate measures, wherever considered necessary, to mitigate their potential impact.

Internal Control Systems:

The Company maintains internal control systems and procedures commensurate with the nature and scale of its operations. These controls are intended to safeguard assets, ensure reliability of financial reporting, support operational efficiency and facilitate compliance with applicable laws and regulations. The adequacy and effectiveness of internal controls are reviewed periodically by the appropriate management and governance mechanisms.

Human Resources:

Human resources remain an important part of the Companys operations. The Company seeks to maintain an appropriate organisational structure and workforce while focusing on employee productivity, accountability and operational efficiency.

Outlook:

The Companys immediate focus is on stabilising operations, improving revenue generation, controlling costs and strengthening its financial position. Management will continue to evaluate business opportunities with due regard to commercial viability, liquidity and available resources.

The achievement of sustainable profitability and improvement in the Companys financial position will remain key priorities for the management in the coming financial year.

Cautionary Statement:

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, estimates or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied due to various factors, including economic conditions, changes in the business environment, competition, regulatory developments, availability of financial resources and other risks and uncertainties. The Company assumes no responsibility for updating such forward-looking statements in light of subsequent developments

BY THE ORDER OF THE BOARD
FOR INNOVATIVE IDEALS AND SERVICES (INDIA) LIMITED
Sd/-	Sd/-
(Maqsood Dabir Shaikh)	(Tazyeen Maqsood Shaikh)
Managing Director	Whole-time director
DIN:00834754	DIN:00834590
Date: 07th September, 2026	Date: 07th September, 2026
Place: Mumbai	Place: Mumbai