Kachchh Minerals Ltd Management Discussions

MACROECONOMIC OVERVIEW

According to Ministry of Statistics and Programme Implementation (MoSPI), Indias real GDP which measures the output of economy after removing effect of inflation expanded by 6.5% in 2024-25. The Reserve Bank of India expects this pace to continue into 2025–26. Other projections echo this optimism, with the United Nations forecasting growth of 6.3 per cent this year and 6.4 per cent next year, while the Confederation of Indian Industry places its estimate slightly higher at 6.40 to 6.70 per cent. Over the past decade, Indias economic size has expanded sharply. In 2014 15, the GDP at current prices was 106.57 lakh crore. This figure is expected to rise to 331.03 lakh crore in 2024 25, nearly tripling in ten years. In the past year alone, nominal GDP increased by 9.9 per cent, while real GDP rose by 6.5 per cent, underscoring the economys continued resilience and vigour. Indias economy shows robust expansion, with real GDP for FY25 estimated at Rs. 1,87,97,000 crore (US$ 2.20 trillion), from Rs. 1,76,51,000 crore (US$ 2.06 trillion) in FY24 with a growth rate of 6.5%._By 2030, India is set to become the worlds third-largest economy with a projected GDP of $7.3 trillion. In Q4 FY25, India had a surplus of USD 13.5 billion (1.3% of GDP) — meaning more money came into the country than went out. This is a major shift from the USD 11.3 billion deficit (1.1% of GDP) in the previous quarter.

Indias export performance continues to reflect the growing strength of its economy, particularly in services and high-value manufacturing. Over the past decade, the country has steadily expanded its footprint in global trade. This growth has been powered by stronger industrial capacity, greater competitiveness in services, and the rise of strategic sectors like defence production and electronics.

Indias economic performance over the past year reflects not just growth, but a deeper sense of stability and direction. With real GDP rising at 6.5 per cent and inflation easing to its lowest in years, the country has shown that it can balance expansion with price stability. At the same time, strong participation in capital markets, record levels of exports, and healthy foreign exchange reserves point to growing confidence both at home and abroad.

Key sectors such as manufacturing, services, and infrastructure are pushing ahead, supported by steady investment and policy focus. External risks remain, but Indias fundamentals are sound. As the global economy continues to face challenges, Indias consistent performance offers reassurance that it is well placed to lead from the front and keep building a stronger, more inclusive future.

INDUSTRY STRUCTURE AND DEVELOPMENT

The company is engaged in Single Segment i.e. Minerals Industry by catering to minerals processing segment through extraction of various types of silica sand and china clay, mineral raw material etc. These minerals are sometime sold as raw materials or sold after processing, making value addition to the same as per customer demands. Minerals are expected to become a core sector in the nations economy in terms of generation of employment and revenues, industrial growth, conservation of energy and natural resources and mainly some unit works as export-oriented unit generating foreign exchange and indispensable materials in all important sectors of the economy. The products of the Company are mainly accepted in the local market.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

PARTICULARS	2024-25	2023-24
Revenuef rom Operations	29.44	260.79
Other Income	6.37	0.52
TotalI ncome	35.81	261.31
Total Expenses	34.01	199.59
Profit/(Loss)f or the year beforet axation	1.80	61.72
Tax Expenses	-	-
Profit/ (Loss) aftert ax	1.80	61.72
EarningsP er Equity Share (Face Value Rs.1 0/- Per Share)
Basic	0.03	1.16
Diluted	0.03	1.16

The Company has recorded a total income of Rs. 29.44 lakhs as against Rs. 260.79 lakhs in the previous year. During the year under review, the Company has earned a Profit of Rs. 1.80 lakhs as compared to previous year profit of Rs. 61.72 lakhs. There are no material changes and commitments affecting the financial position of your Company.

OUTLOOK

Considering the business expansion strategies and with a view to explore emerging business opportunities, unearthing new synergies of growth and value creation for our diverse stakeholders, the Company altered its Main Objects pursuant to a special resolution passed by the members at the Extra-Ordinary General Meeting held on May 23, 2025. Considering the growth of service and infrastructure sector, management of the Company has decided to enter into new line of business activities such as

(i) trading and dealing in all kinds of agricultural products, aerated, artificial or mineral water, carbonated drinks, fruit drinks, canned food, packed food, squashes, syrups, soft drinks, milk and milk products and beverages;

(ii) business of the cinematograph trade and industry; and

(iii) Construction of houses, building, all type of civil construction work and infrastructure work.

All the above business activities have good potential and bright prospects for the Company. The above-mentioned new opportunities would allow the company to diversify its operation thereby, scaling up its growth, contributing immensely to the bottom line of the Company, and unlocking shareholder wealth.

HUMAN RESOURCE

Human Resource development is essential for building a skilled and motivated workforce capable of driving innovation, achieving performance excellence, and sustaining competitive advantage in the long term. People are our key pillars of strength. Human Capital is the core strength in achieving the sustainable growth path charted by our strategic apex as it plays an important role in developing, reinforcing, and enhancing the culture of an organization. Our Company believes that its employees are one of the most important stakeholders. As on March 31, 2024, it had a total head count of 6 employees. The Directors wish to place on record their appreciation and acknowledgment for the efforts and dedication and contributions made by employees at all levels during the year under review. Our Company is focused on building and developing enduring capabilities for a future-ready workforce. For the same it aims to attract as well as develop, motivate and retain diverse talent in the highly competitive market that is critical for its continued success. Our Company has people-friendly policies and practices aligned with business strategy that provides its employees an opportunity to learn grow and take their career forward. All employees, from a new joiner to a tenured one, are provided tailored learning opportunities as per their role, level, and specific focus area. Employees are equally treated and provided opportunities irrespective of gender, marital status, religion, race/caste, colour, age, ancestry, nationality, language, ethnic origin, socio-economic status, physical appearance, disability, sexual orientation, gender and expression.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

An internal control system encompasses policies, procedures and processes designed to safeguard assets, ensure accurate financial reporting and comply with regulations. Its adequacy is determined by its ability to effectively mitigate risks, prevent fraud and support operational efficiency. Regular evaluation, feedback from audits and alignment with organizational goals are crucial for maintaining and improving the effectiveness of internal controls over time.

The internal control is designed to ensure that the financial and other records of the company are reliable for preparing financial statements and other data, and for maintaining accountability of assets. Needless to mention, that ensuring maintenance of proper accounting records, safeguarding assets against loss and misappropriation, compliance of applicable laws, rules and regulations and providing reasonable assurance against fraud and errors will continue to remain central point of the entire control systems.

OPPORTUNITIES, RISKS, CONCERNS AND THREATS:

SWOT Analysis:

SWOT Analysis:
Strengths	Weaknesses
Active sectorial support by the Indian government	Rising competition
Availability of raw material; relatively lower costs and reduced supply lead time	Inflexible labour laws
	Technological obsolescence
Availability of low cost and skilled manpower which in may reduce the cost of production
Growing population growth of service and infrastructure sector
Opportunities	Threats
Growing economy and domestic market Increase in GDP	Emergence of international brands environmental laws
Continuous innovation and technology advancements	Geographical disadvantages
New line of Business activities as approved by the shareholders	Regulatory challenges compliance burdens and operational risks

It is a fact that many developments in Indian economy are triggered by globalization as one world markets are under cut-throat competition. The prime opportunity lies in meeting customers raised expectation in terms of high quality with value added products, prompt response, timely delivery, proper services and performance and the same opportunities were regularly grabbed by your company since its inception.

Due to rapid changes in the technologies, business dimensions and complexities, regulatory changes and environmental concerns, competitions from global players, fluctuation of price and technological obsolescence and various types of risks have emerged. All such risks cannot be eradicated completely however can be controlled, mitigated and managed within the Company in order to balance risk and reward. Risk management is an important part of the Companys business strategy, and it is smoothly incorporated into all of the Companys activities. The aim of the Companys framework is to optimize the risk-return equation while also ensuring strict adherence to all current and upcoming laws, rules, and regulations that apply to all of the Companys business activities. Thus, managing risks is not a one-time activity; its an ongoing process. The Company strives to cultivate a strong and disciplined risk management culture across all of its business operations and at all levels of the organization.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis, describing the Companys objectives, projections, estimates, expectations, or predictions, may be "forward looking statements" within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factors.

KEY FINANCIAL RATIOS

The same is provided under Financial Statements and forms part of this Annual Report.

By order of the Board of Directors
For Kachchh Minerals Limited
Sd/-	Sd/-
Daksh Narendrabhai Trivedi	Prakashbhai Haribhai Kanani
Director	Director
DIN: 05232654	DIN: 02331173
Date: August 13, 2025
Place: Mumbai