Kalana Ispat Ltd Management Discussions

In compliance of Regulation 34(3) and 54(f) read with Schedule V of Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, please find Management Discussion and Analysis Report forming part of Annual Report.

1. Overview of the Business

Our Company is primarily engaged in the manufacturing of Mild Steel (M.S.) Billets and Alloy Steel Billets of various grades. Our production facility is certified under international quality management standards, including ISO 2830:2012.

We operate under two key business segments:

Sale of Products: This includes the sale of billets manufactured in-house, as well as traded goods. Our core manufactured products ?€” M.S. Billets and Alloy Steel Billets?€”are sold directly to customers on an order basis. Additionally, we engage in trading of goods such as iron scrap, iron ore, and ingots to complement our product offerings.

Sale of Services (Job Work): Leveraging available spare capacity, we offer casting services for M.S. and Alloy Steel Billets on a job work basis. In this segment, clients supply the raw materials, and we provide casting services, charging a service fee for the same.

2. Opportunities and Strengths

A. Experience of our Promoter and core management team:

Our Company benefits from the strong leadership and extensive industry experience of our Promoter and Managing Director, Mr. Varghese Joseph Pottakerry. With deep domain expertise and a proven track record in the steel manufacturing industry, Mr. Pottakerry has played a pivotal role in establishing and growing the Companys operations. Under his guidance, the Company has developed a robust presence in the production of M.S. Billets, Alloy Steel Billets, and Ingots. Backed by a dedicated core management team with comprehensive technical and managerial capabilities, our Company continues to scale new heights in operational excellence and market presence within the steel manufacturing sector.

B. Existing well established reputation and customer relationships:

Kalana Ispat Limited has built a strong and credible reputation in the steel industry, particularly in the manufacturing of billets and ingots. Over the years, the Company has earned the trust of its customers through consistent product quality, timely delivery, and a customer-centric approach. This reliability has helped forge long-standing relationships with a diverse clientele across various sectors. Our commitment to quality and service excellence has positioned Kalana Ispat Limited as a preferred supplier in the market, fostering repeat business and sustained growth through enduring customer partnerships.

C. We offer a diversified range of products

At Kalana Ispat Limited, we offer a diversified range of steel products to meet the varied needs of our customers across multiple industries. Our core product offering includes Mild Steel (MS) Billets, which are semi-finished products widely used as raw materials by rolling mills. These billets are produced by melting a combination of raw materials such as MS Scrap, Sponge Iron, Silicon Manganese, Aluminum Ingots, and specific salts at high temperatures. The molten metal is then cast into rectangular forms. We manufacture MS Billets in various grades, which are subsequently forged at rolling mills into finished products like bars, wires, rods, and sheet metal. These products have broad applications in sectors such as construction, infrastructure, and automotive industries.

In addition to MS Billets, we also produce Alloy Steel Billets on an order basis. These billets are also semifinished products, made from similar raw materials and used to manufacture value-added products such as rods, wires, and bars. While not part of our regular production line, our ability to fulfill custom orders for Alloy Steel Billets adds to the versatility of our product portfolio and reflects our capacity to cater to specialized market requirements.

D. Quality Assurance and safety of products

At Kalana Ispat Limited, quality assurance and product safety are at the core of our manufacturing operations. Our facility adheres to stringent quality control measures and is certified under internationally recognized standards, including ISO 2830:2012. Each stage of production?€”from raw material procurement to billet casting ?€”is monitored through robust inspection protocols to ensure consistency, durability, and compliance with industry specifications. We utilize advanced testing equipment and standardized procedures to verify the chemical and mechanical properties of our billets, ensuring they meet or exceed customer expectations. Our commitment to quality not only enhances the performance and safety of our products but also reinforces the trust our clients place in us across the construction, infrastructure, and automotive sectors.

3. Competition:

Manufacturing industry of Billets and M.S. Billets is characterized by intense competition, with both global giants and local players vying for prominence in the market. The competitive landscape is intricate, with companies differing in terms of geographical presence, product focus, and market strategies. Understanding this intricate web of competition necessitates comprehensive research into aspects such as market share, customer feedback, technological innovations, and the ability to adapt to evolving industry trends. Our aim is to provide branded, standardized, and uniform quality products at competitive prices to our consumers. Many of our competitors have a substantially large capital base and resources than we do and offer a broader range of products. As the industry continues to evolve, these competitors, driven by innovation and a commitment to meeting the worlds growing product demands.

4. Prospect & Outlook

The management is of the view that the future prospects of your Company are bright and the performance in the current year is expected to be very well. The committed customers of the Company are expected to place more orders, which ultimately affect the top line of the Company, positively.

5. Risks and Concerns

The Company has taken adequate preventive and precautionary measures to overcome all negative factors responsible for low trend to ensure steady growth.

6. Discussion on Financial Performance with respect to Operational Performance

The details of the financial performance of your Company are reflected in the Balance Sheet, Profit & Loss Account and other Financial Statements, appearing separately. Highlights are provided below:

(Rs.in lakhs)

The financial performance of your Company has been further explained in the Directors Report of your Company for the year 2024-2025, appearing separately.

7. Financial Ratios

8. Economic Outlook

The long-term fundamentals of the Indian economy continue to be strong due to rising incomes and large investments. These growth drivers are expected to sustain over a long period of time. At the same time, there are some concerns due to uncertain global economic environment and slow recovery in developed markets.

9. Human Resources

The Company keeps developing its organizational structure consistently over time efforts are made to follow excellent Human Resource practices. Adequate efforts of the staff and management personnel are directed on imparting continuous training to improve the management practices. The objective of your company is to create a workplace where every person can achieve his or her potential. The employees are encouraged to put in their best. Lots of hard work is put in to ensure that new and innovative ideas are given due consideration to achieve the short and long term objectives of your company.

The employees are satisfied and having good relationship with management.

10. Cautionary Statement

Certain statements in the Management Discussion and Analysis describing your Companys views about the industry, expectations/predictions, objectives etc. may be forward looking within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied in these statements. Your Companys operations may, inter-alia, be affected by the supply and demand situations, input prices and availability, changes in Government regulations, tax laws, government or court decisions and other factors such as industry relations and economic developments etc. Investors should bear this in mind when considering the above statements

For Kalana Ispat Limited

Sd/-

Aftabhusenhusen S Khandwawala Director DIN: 02771726

Date: 27.08.2025 Place: Ahmedabad

Sd/-

Varghese Joseph Pottakerry Managing Director DIN: 02771578