Lamosaic India Ltd Management Discussions

The Management Discussion and Analysis Report has been included in adherence to the spirit enunciated in the Code of Corporate Governance approved by the Securities and Exchange Board of India ("the SEBI") and in compliance with the provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Industry Structure and Developments

Lamosaic India Limited operates in the interior infrastructure, decorative laminates, plywood, doors, and allied products industry. The sector caters to residential, commercial, hospitality, and institutional real-estate requirements. Demand is generally influenced by real-estate activity, construction cycles, interior design trends, and consumer spending.

During the year, the industry continued to witness growth driven by urbanisation, demand for modular interiors, and increased preference for engineered wood products. However, fluctuations in raw-material prices, import competition, and supply-chain constraints remained key challenges.

Company Overview

Lamosaic India Limited was originally established as "Swastik Marketing" a Partnership Firm in the year 2020 and was converted into a Public Limited Company on 13 th June, 2023. The Company is engaged in the trading of Decorative laminates, Acrylic sheets, Printed / Base Paper, Plywood and related wood-based products and manufacturing of Flush doors and customised door solutions.

The Company also operates a manufacturing workshop at Chembur, Mumbai, where it manufactures flush doors and other customised door solutions. The business follows a hybrid model involving procurement, customisation, and distribution.

Opportunities and Threats Opportunities:

India is one of the faster growing large economies. As our standards of living improve, the demand for manufactured products will increase, which is expected to benefit the Company.

Growing real-estate and interior-infrastructure demand.

Rising acceptance of decorative laminates and engineered products.

Opportunity to expand manufacturing capacity.

Potential for geographic expansion outside Maharashtra.

Scope for increasing the product portfolio and customised solutions.

Threats:

Competition from established national brands and unorganised players.

Volatility in raw material prices, exchange rates, global trade, geopolitics.

Threats from low-cost manufacturers and global manufacturers.

Dependence on real-estate sector performance.

Increased competition from imports.

Credit risk due to dealer-driven business model.

Financial Performance

During the year under review, your Company has achieved revenue from operations of Rs. 14,349.43 Lakhs on a standalone basis as compared to Rs. 5,064.57 Lakhs in previous year. The comparative highlights and analysis are tabulated below:

(Rs. in Lakhs)

Particulars	2024- 25	2023- 24
Revenue from Operations	14,349.43	5,064.57
Other Income	10.16	1.10
Total Income	14,359.59	5,065.67
Cost of Material Consumed	850.97	457.31
Purchase Stock in Trade	12,548.35	4,304.97
(Increase) / Decrease in Stock	(843.21)	(1,153.72)
Employee Benefits Expenses	81.22	54.21
Finance Cost	305.27	221.76
Depreciation and Amortization Expenses	38.95	32.81
Other Expenses	1,035.46	109.42
Total Expenses	14,017.01	4,026.76
Profit before tax	342.57	1,038.91
Tax expenses
Current taxes	86.02	270.97
Deferred tax	8.62	3.58
Profit after tax and before extraordinary items	247.94	764.36

Extraordinary items	0.00	0.00
Net Profit after extraordinary items available for appropriation	247.94	764.36
Proposed Dividend	0.0	0.00
Dividend distribution tax	0.00	0.00
Net profit carried to Balance sheet	247.94	764.36

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios:

	Particulars	Formula for Computation	Measures (in times / percentage )	For the Year Ended 31 Mar 2025	For the Year Ended 31 Mar 2024	% Change
A	Current Ratio	Current assets / Current liabilities	Times	2.50	1.53	63.60%
B	Debt Equity Ratio	Debt / Net worth	Times	0.09	1.16	-91.97%
C	Debt Service Coverage Ratio	EBITDAE / (Finance costs + Principal repayment of long term borrowings within one year)	Times	0.67	0.99	-31.96%
D	Return on Equity	Profit after tax / Net worth	Percentage	3.18%	51.23%	-93.79%
E	Inventory Turnover Ratio	Cost of goods sold / Average inventory	Times	0.33	4.15	-92.06%
F	Trade Receivable Turnover Ratio	[Revenue from Sales of products (including excise duty) + Sales of services] / Average gross trade receivables	Times	3.77	5.47	-31.01%
G	Trade Payable	Purchases / Average trade	Times	0.45	- 0.17	- 364.56

	Turnover Ratio	payables				%
H	Net Capital Turnover Ratio	Revenue from operations / working capital	Times	2.66	3.24	-18.00%
I	Net Profit Ratio	Profit after tax / Revenue from operations	Percentage	1.73%	15.09%	-88.55%
J	Return on Capital Employed (ROCE)	EBIT / Capital employed	Percentage	6.22%	58.96%	-89.45%

Disclosure of change in ratio by more than 25%
Particulars	% Variance in ratio between 31 st March 2025 and 31 st March 2024	Reason for Variance
Current Ratio	63.60%	Due to Increase in Current Assets
Debt Service Coverage Ratio	-31.96%	Due to Decrease in Debt
Return on Equity	-93.79%	Due to Decrease in Profit after Tax
Trade Receivable Turnover Ratio	-31.01%	Due to Increase in Revenue form Operation
Trade Payable Turnover Ratio	-364.56%	Due to Increase in purchase
Net Capital Turnover Ratio	-18.00%	Not Applicable
Net Profit Ratio	-88.55%	Due to Increase in Purchase and other expenses
Return on Capital Employed (ROCE)	-89.45%	Due to Decrease in Profit Before tax

Segment-wise or Product-wise Performance Trading

The Trading includes:

Decorative laminates

Acrylic sheets

Printed / Base paper

Plywood and allied wood-based products

The Trading remained the major contributor to the Companys revenue during financial year 2024-25. Demand was supported by increasing adoption of modular interiors, improved dealer engagement, and product diversification. The Company expanded its product portfolio and strengthened its presence across Maharashtra, resulting in enhanced customer reach. Margins also improved due to better realisation, operational efficiencies, and higher-value product mix.

Manufacturing

This primarily covers:

Flush doors

Customised door solutions

The manufacturing operations at the Chembur, Mumbai workshop showed steady growth led by increased acceptance of customised door solutions and demand from institutional and premium residential customers. The Company continued to optimise its manufacturing processes, resulting in better order fulfilment and improved cost efficiency. This expected to scale further with increasing demand for engineered door products.

Outlook

Based on industry trends and the Companys growth trajectory, Lamosaic India Limited is positioned to capitalise on demand for decorative and interior-infrastructure products.

Expected growth drivers include expanded product range, increased customer base, and the strengthening of the manufacturing function.

Return on Net Worth

The Return on Net Worth for the financial year 2024-25 is 03.18%, as against 51.23% in the financial year 2023-24.

Explanation of Change

Return on Net Worth has reduced primarily due to the significant increase in Net Worth following the Companys Initial Public Offering ("IPO"). During the financial year, the Companys Net Worth increased from Rs. 1,492.16 Lakhs to Rs. 7,790.19 Lakhs, mainly on account of the addition of Rs. 5,814 Lakhs to Securities Premium received following the Companys Initial Public Offering ("IPO").

Additionally, the Profit After Tax for the financial year was Rs. 247.94 Lakhs as compared to Rs. 764.36 Lakhs in the previous year. The decline in Return on Net Worth is attributable to lower earnings combined with a substantially higher equity base.

Risks and Concerns

The Company operates in the interior-infrastructure and decorative-materials segment, which is closely linked to the performance of the real-estate and construction sectors. Consequently, any slowdown in residential, commercial, or institutional construction activity may affect demand for laminates, plywood, doors, and allied products.

Volatility in raw-material prices including timber, adhesives, acrylic sheets, and imported paper as well as variations in foreign exchange rates may impact margins. Increased competition from both organised national brands and unorganised regional manufacturers continues to exert pricing pressure. The industry also faces intensified competition from imported products, particularly low-cost decorative laminates and finished door solutions.

As the Company relies significantly on a dealer-driven distribution model, credit risk and elongated receivable cycles remain areas of concern, particularly in a high-interest- rate environment. Additionally, supply-chain disruptions, transportation costs, and changes in government policies related to wood-based manufacturing could influence operational efficiency.

The Company continues to strengthen risk-mitigation measures through credit monitoring, supplier diversification, enhanced procurement planning, and a focus on higher-margin customised product categories.

Internal Control Systems:

The internal control framework aims to enhance transparency and accountability in the design and implementation of organizational processes. The framework requires a

Company to identify and analyze risks and manage appropriate responses. The Company has successfully laid down the framework and ensured its effectiveness.

The scope of internal audit is oriented towards mitigating or eliminating risks in business processes. The Audit Committee reviews the internal audit plan, significant audit findings and sustainability of measures for corrective actions. The Internal Audit Plan is also aimed at addressing concerns, if any, of statutory auditors of the Company.

The Companys internal controls are commensurate with its size and the nature of its operations.

Corporate Social Responsibility ("CSR")

Lamosaic India Limited is committed to being a socially responsible corporate citizen.

Lamosaics CSR Policy aims to protect and nourish the interest of all its Stakeholders and contribute for an equitable and sustainable development. Ethics, Values and Transparency are the factors which lie in all its interaction within the community.

During the financial year ended 31 st March, 2025, the Company incurred CSR contribution of Rs. 16,00,000/- (Rupees Sixteen Lakhs Only). The CSR initiatives of the Company were under the areas of promoting education, literacy, and health & family welfare. Further, the information pursuant to the provisions of Section 134(3)(O) of the Companies Act, 2013 and Rule 9 of the Companies (Corporate Social Responsibility) Rules, 2014 are given in the Boards Report.

Human Resources Management:

In the dynamic and competitive environment where every company has access to available resources, the Company believes that upgrading and updating the skill levels of employees are highly important for achieving continuous improvement and to stay ahead in the market. As a Company, it focuses on effective Human Resource Management.

The company continues to maintain cordial and healthy industrial relations and it takes pride in its record of congenial work atmosphere. As on 31 st March, 2025, there are total Nine Employees (Including Executive Directors) on permanent basis.

Industrial / Employee Relations

The Company has maintained harmonious industrial / employee relations throughout and no man-days were lost due to industrial / employee actions.

Disclosure of Accounting Treatment

The Company follows Accounting Standards as prescribed by the Institute of Chartered Accountants of India (ICAI) for preparation of financial statements; there is no such other treatment for the same.

Cautionary Statement

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates and others may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations whether expressed or implied. Several factors could make a significant difference to the Companys operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, natural calamities beyond the Companys control.

Place: Mumbai

Date: 07 th December, 2025

For and on behalf of the Board Lamosaic India Limited

Vinod Juthalal Visaria

Chairman DIN: 07603546