Iykot Hitech Toolroom Ltd Management Discussions

For the Financial Year ended 31 st March, 2026

This Management Discussion and Analysis Report presents a detailed overview of the operational and financial performance of the Company for the financial year 2025 26, along with the industry outlook, opportunities, risks, and internal controls, in accordance with the provisions of the Companies Act, 2013 and Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

1. Industry Structure and Developments

Economic Overview:

The Indian economy remained resilient in FY 2025 26 amidst global uncertainties, inflationary pressures, and interest rate volatility. With a projected GDP growth of approximately 7.4% - 7.7% for FY26, India continues to be among the fastest-growing major economies. Government-led reforms, infrastructure spending, and incentives under the PLI scheme continue to boost the manufacturing sector.

Industry Overview:

The plastic moulding, dies, tools, and kitchen/home appliances industries have experienced mixed market dynamics. While the consumer appliances sector (specifically kitchenware under contract and part-manufacturing setups) continues to offer consistent demand driven by household consumption, the toolroom and industrial core moulding segment faces heightened cost pressures and competitive pricing. High-precision tooling remains critical, but manufacturers must optimise material costs and capacity utilisation to maintain margins.

2. Opportunities and Threats

Opportunities:

The Company does not presently envisage significant opportunities in its existing business segments. Accordingly, subject to approval of the Shareholders, the Company proposes to diversify into the bullion and retail sector, including trading and retail of gold, silver and other precious metals, as part of its revised business strategy and future growth plans.

Threats:

Intense market competition, volatility in raw material prices (polymers/metals), and dependencies on heavy industrial cycles for moulding orders present ongoing operational challenges.

The proposed bullion and retail business is subject to fluctuations in precious metal prices, regulatory and compliance requirements, intense market competition, changing consumer preferences, and risks associated with market volatility and inventory management.

3. Segment-wise or Product-wise Performance

The Company primarily operates in the manufacture and distribution of dyes, tools, moulds, and plastic components, while actively driving growth in its domestic home/kitchen appliance vertical. Core toolroom operations faced consolidation over the past fiscal year, with total standalone revenue for the year ending March 31, 2026, dropping to 1.56 Crore (approx.) (down from 5.01 Crore in FY24-25), due to lower business volumes and subdued demand during the year.

4. Outlook

The outlook remains transformative. Following the Share Purchase Agreement (SPA) and subsequent Open Offer by Aspect Global Ventures Private Limited, the Company is undergoing structural change. With a fresh board reconstitution and strategic redirection under the new leadership, the Company intends to scale in new line of business of bullion and retail sector, including trading and retail of gold, silver and other precious metals, as part of its revised business strategy and future growth plans post approval as required under the regulatory compliance.

5. Risks and Concerns

1. Management Transition Risk: Navigating a significant change in control and stabilizing operations post-promoter exit.

2. Liquidity and Call Money Forfeiture: Consequent to non-payment of final call money by several shareholders, the company forfeited 99,01,931 partly paid-up equity shares . While this cleanly shrinks the capital base down to fully paid shares, managing liquid cash flows for expansions remains a key priority.

The Company regularly reviews its risk management framework to mitigate these risks effectively.

6. Internal Control Systems and their Adequacy

The Company maintains an internal control framework tailored to its current scale of operations. These controls ensure that assets are protected against unauthorized use, transactions are properly recorded and authorized, and financial statements present a true and fair view. The internal controls are regularly reviewed by the Audit Committee and strengthened as required during management transformations.

7. Discussion on Financial Performance with respect to Operational Performance

Revenue from Operations : Annual revenue stood at approximately 1.56 Crore, reflecting a YoY decline from the previous years high base of 5.01 Crore, primarily due to operational restructuring. Profitability Turnaround: The Company reported total income of approximately 2.10 Crore during FY 2025 26, with a net loss of approximately 1.03 Crore. The Company reported a profit before tax of approximately 0.03 Crore in Q4 FY 2025 26, compared to a loss before tax of approximately 0.35 Crore in Q1 FY 2025 26, 0.42 Crore in Q2 FY 2025 26 and 0.31 Crore in Q3 FY 2025 26, indicating an improvement in profitability during the last quarter of the financial year.

8. Material Developments in Human Resources / Industrial Relations Front, including number of people employed

The Company considers its human capital as a key driver of success. During FY 2025 26, it focused on building a competent and motivated team across manufacturing, quality control, sales, and marketing.

As of 31 st March 2026, the Company employed 6 employees other than the Directors across various functions.

Key initiatives included:

Talent acquisition in product design and marketing teams. Skill development and training programs for production staff.

Introduction of performance-based incentives and employee engagement programs.

Industrial relations remained cordial across the manufacturing units. Human resource focus during the latter half of the fiscal year centred around organisational restructuring to align with incoming promoter guidelines.

9. 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 therefor, including:

The said details with respect to details of significant changes in key financial ratios are given in the notes forming part of audited financial statements of the Company for the year ended 31 st March 2026.

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 Return on Net Worth (RoNW) for the financial year ended March 31, 2026, showed a recovery trajectory in the terminal quarters moving out of past deep negative cycles, primarily stabilized by capital reduction via forfeiture and cost containment.

11. Disclosure of Accounting Treatment:

The financial statements of the Company have been prepared in accordance with the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, as amended. No alternative accounting treatment in place of that prescribed under the applicable Accounting Standards has been adopted in the preparation of these financial statements.

Cautionary Statement:

This report contains forward-looking statements that are based on the beliefs and assumptions of the management. Actual results may differ materially from those expressed due to various economic, operational, and environmental factors.

Place: Mumbai	By and on behalf of Board of Directors
Date: 06.08.2026	For Iykot Hitech Toolroom Limited
Sd/-	Sd/-
Sukumar Anand Shetty	Vaishali Sharad Lad
Additional Director	Additional Director
(DIN: 03540525)	(Whole Time Director)
	(DIN: 10252839)