Kabra Commercial Ltd Management Discussions

Our business specializes in all facets of the coal trade: logistics, procurement, and supply chain management. We serve Indias major industrial sectors, leveraging advanced technology and deep expertise to optimize coal sourcing and delivery.

During the year under review, there was no change in the capital structure of the Company. Total Revenue at 14.94 crores has decreased by 69% while post tax profits at 0.029 crore has decreased by 53% due to zero revenue derived from supply of Coal. Earnings per Equity Share for the year stood at 0.10.

Human Resources

Human Resources Your Company recognizes that people are the greatest assets and form the bedrock of all initiatives. Your Company has consistently been agile and improved its human resource practices to match the dynamic workplace. The detail of employees and remuneration paid to them is given under Annexure-2 of the Boards Report. These employees have sustainably helped your Company to achieve its organizational goals even in the most trying environment.

Opportunities and threats

Opportunities

Sector Modernization and Policy Reforms: Government support for logistics infrastructure development and policy reforms opens avenues for growth (e.g., new rail corridors, multimodal transport).

Technological Advancements: Automation, AI-driven analytics, and data-driven management can improve efficiency and competitiveness.

Energy Demand and Diversification: Rising power demand and possible expansion into related logistics or renewable energy sectors offer growth potential.

Threats

Stringent Environmental Regulations: Increasing compliance requirements may escalate operating costs and restrict expansion.

Alternative Energy Competition: Rapid growth of renewables could erode coal s market share and diminish logistics demand in the long run.

Market Volatility and Supply Disruptions: Fluctuations in coal prices, domestic policy shifts, and infrastructure delays could impact profitability.

Environmental and Regulatory Pressure: Coal logistics faces public scrutiny and regulatory constraints due to its environmental footprint, increasing compliance costs.

Risks and Concerns

Risk management forms a vital part of your Company s businesses, and your Company is cognizant of the prominent role it plays in its long-term success. To stay competitive, the Indian coal industry needs to diversify its portfolio and explore opportunities in renewable energy, such as investing in clean coal technologies like carbon capture and storage, solar panel, FLY ASH Management.

Internal control systems

The Company has adequate internal control systems proportionate with the size and nature of its business being framed in a manner which ensures optimum resource utilisation and strict compliance with all statutes. Our risk and credit teams have an eye on the market; have inbuilt processes to identify the existing and probable risks and to mitigate the identified risks.

The Audit Committee reviews the adequacy of the internal control systems and follow-up actions are implemented immediately, if required. In the opinion of Board of Directors of the Company, internal control systems are well placed and work in a satisfactory manner.

Key Financial Ratios

S No . Ratio	Ratio as on As at 31st March,202 6	Ratio as on As at 31st March,202 5	Variation	Reason (If variation is more than 25%)
(a) Current Ratio	1.04	1.22	-15%	NA
(b) Debt-Equity Ratio	0.59	0.12	406%	Increase in Debt
(c ) Debt Service Coverage Ratio	1.61	3.66	-56%	Decrease in Net operating Income
(d) Return on Equity Ratio	0.13	6.92	-98%	Decrease in Profit
(e ) Inventory Turnover Ratio	NA	NA	NA	NA
(f) Trade Receivables Turnover Ratio	3.07	5.71	-46%	Decrease in Net Credit Sales
(g) Trade Payables Turnover Ratio	2.37	3.17	-25%	NA
(h) Net Capital Turnover Ratio	6.82	116.94	-94%	Increase in Working Capital
(i) Net Profit Ratio	0.00	0.07	-97%	Decrease in Net Profit
(j) Return on Capital Employed	0.05	0.13	-65%	Decrease in Capital Employed
(k) Return on Investment	0.01	0.02	-40%	Decrease in Income from Investments

Outlook

The Indian coal market is a significant segment of the countrys energy sector, driven primarily by the demand for power generation through thermal coal. The market encompasses various applications, including coking feedstock and other industrial uses. The increase in Indias coal production aims to meet the rising energy demands, supported by extensive coal resources.

Key players in the Indian coal market are actively optimizing their operations to meet market demands. The industrys growth rate and market value are critical metrics, with industry analysis providing insights into market trends and industry statistics. Market leaders are navigating the dynamic landscape, focusing on industry research and market segmentation to stay competitive.

Industry reports and market data offer a comprehensive market overview, including market forecast and market growth predictions. The market outlook highlights the ongoing developments and market review, while industry information and industry size provide a detailed understanding of the sector.

In summary, Your Company have extensive pan-India network, leadership experience and supporting top industry clients and its also creating Valuable links with ministries, ports, Coal India subsidiaries, and key infrastructure players, enabling reliable and scalable coal solutions.

Your Company have branch offices across all over India. As a multi-generational enterprise, we uphold a strong ethos of entrepreneurship and innovation, aligning with client s values. Our focus is on maximizing resource efficiency and delivering long-term value to our clients through optimized coal trading, logistics and mine management solutions.

We are confident that we will bring value to your Coal Supply & Transport efforts with improved cost economics.

On behalf of the Board Kabra Commercial Limited

	Chandra Prakassh Kabra	Ramawtar Kabra
Dated: 13 th August, 2026	(Director)	(Director)
Place: Kolkata	DIN: 00338838	DIN: 00341280