M Lakhamsi Industries Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company operates across diversified business segments encompassing agricultural commodities and agri-based products, merchant exports, edible and non-edible oils, oilseeds, pulses, spices, grains, fresh and processed agricultural produce, as well as chemical products, chemical intermediates and specialty chemical products. The Companys broad object profile provides opportunities to participate in both domestic and international markets and to respond to changing demand across food, agriculture and industrial applications.

2. BUSINESS OVERVIEW

The Company has a diversified business profile with its principal objects covering the trading, distribution, processing, manufacturing, import and export of agricultural commodities, food products and chemical products.

The Company’s business objects include dealing in oilseeds, pulses, spices, edible and nonedible oils, grains, vegetables, herbs, pickles and other agricultural products. The Company is also authorised to undertake merchant export activities in various agro and food products, including rice, wheat, cereals, fruits, vegetables, vegetable seeds, guar gum, jaggery, nuts, mangoes and mango pulp.

The Company’s objects further cover the processing and manufacture of food products, including processed, preserved, frozen, dehydrated, canned and packaged foods, health and protein foods, agro foods, poultry and seafood products, bakery and confectionery products, beverages and other value-added food products.

Through its diversified objects, the Company seeks to participate in opportunities across the agricultural, food processing and chemical sectors, including domestic and international markets. The Company intends to develop its business activities in accordance with market opportunities, customer requirements and applicable laws and regulations.

3. FINANCIAL AND OPERATIONAL PERFORMANCE

During the financial year under review, the Company recorded revenue of ?9,788.95 lakh, as compared to ? 10,815.88 lakh in the previous financial year, representing a decrease of in revenue during the year under review.

The decline in revenue was mainly reflective of the overall business and market conditions during the year. Despite the decrease in revenue, the Management continues to focus on strengthening the Companys business operations and improving its overall performance.

Going forward, the Management remains focused on increasing revenue, improving operational performance and achieving sustainable business growth. The Company will continue to monitor market conditions and emerging opportunities and take appropriate measures to strengthen its financial performance in the coming years.

4. Opportunities and Threats

a) Opportunities:

The Companys diversified business objects provide opportunities to expand its presence across the agricultural, agro-products, food processing, export and chemical sectors.

• Opportunities to expand trading and distribution of oilseeds, pulses, spices, edible and non-edible oils, grains, fruits, vegetables, herbs, pickles and other agricultural products.

• The Companys diversified objects enable it to explore new customers, geographical markets and business opportunities while reducing dependence on any single product segment.

• Growing scope for value addition through processing, preservation, packaging and distribution of processed, frozen, dehydrated, canned, health and packaged food products, bakery and confectionery items.

• Opportunities to participate in the trading, manufacturing, distribution, import and export of chemical products, chemical intermediates, specialty chemicals, dyes, pigments, resins, reagents and other related products.

b) Threats:

• Fluctuations in prices and availability of agricultural commodities, food products and chemical raw materials may impact margins and business profitability.

• Changes in government regulations, export-import policies, duties, restrictions and other regulatory requirements may affect the Companys trading and export activities.

• Disruptions in transportation, storage, availability of raw materials and logistics costs may adversely affect timely procurement and delivery of products.

• Changes in international demand, foreign exchange rates, geopolitical conditions and global supply-chain disruptions may impact the Companys export and import-related activities.

• The Company may face competition from established domestic and international players in the agricultural, food processing and chemical product segments.

5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company strongly believes that a robust internal control mechanism is a prerequisite to ensure that an organization functions ethically, complies with all legal and regulatory requirements and observes the generally accepted principles of good corporate governance. To enable this, the Company has established a strong internal control system for the Company, which is comprised of policies, guidelines and procedures to ensure the orderly and efficient financial and business conduct.

The Company has adopted strong internal control systems backed by constant reviews and up-gradation. Internal Audit, Statutory Audit by external agencies and the Audit Committee, look into the internal control aspects and further advice on the corrective measures as and when required.

6. HUMAN RESOURCE/INDUSTRIAL RELATIONS:

The Company considers its human resources to be an important contributor to its business performance and sustainable growth. The Management appreciates the commitment, dedication and contribution of its employees towards the operations and performance of the Company during the year under review.

The Company maintained cordial and harmonious relations with its employees and staff throughout the year. Employee-related matters were addressed appropriately and resolved through mutual understanding and effective communication. The Company continues to focus on maintaining a positive work environment and fostering employee engagement, productivity and development.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013 and Generally Accepted Accounting Principles in India. Further, the financial performance during the year under reference has been impressive in terms of sales. Even though there has been a decent increase in the turnover, the volume of profits has also increased as compared to last year.

8. OUTLOOK:

The presence of a stable government at the center will be a major catalyst in taking major decisions which would push forward the pace of reforms and thereby directly improving the macro-economic environment. It is now being forecasted that in the near future, the Indian economy will become the fastest growing emerging market.

9. RISK & CONCERNS

In line with the regulatory requirements, the Company has framed a Risk Management Policy to identify and access the key business risk areas and a risk mitigation process. A detailed exercise is being carried out at regular intervals to identify, evaluate, manage and monitor all business risks. The Board periodically reviews the risks and suggests steps to be taken to control and mitigate the same through a properly defined framework.

In today’s complex business environment, almost every business decision requires executives and managers to balance risk and reward. Effective risk management is therefore critical to an organization’s success. Globalization with increasing integration of markets, newer and more complex products and transactions and an increasingly stringent regulatory framework has exposed organizations to and integrated approach to risk management. Timely and effective risk management is of prime importance to our continued success. The sustainability of the business is derived from the following:

Identification of the diverse risks faced by the company.

o The evolution of appropriate systems and processes to measure and monitor them o Risk Management through appropriate mitigation strategies within the policy framework.

o Monitoring the progress of the implementation of such strategies and subjecting them to periodical audit and review.

o Reporting these risk mitigation results to the appropriate managerial levels. o There is the risk of loss from inadequate or failed systems, processes or procedures. These may be attributed to human failure or technical problems given the increase use of technology and staff turnover. Your company has in place suitable mechanisms to effectively reduce such risks. o All these risks are continuously analyzed and reviewed at various levels of management through an effective information system.

10. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

During the year under review, since company is being working in a single segment therefore the specific performance does not stand eligible.

11. RATIOS:

Ratio	Current Period	Previous Period	% variance	Reason for variance (if above 25%)
Current ratio	0.94	1.04	0.1	Not required, as variance is less than 25%.
Debt equity ratio	2.49	2.55	(0.06)	Not required, as variance is less than 25%.
Debt service coverage ratio	1.69	1.54	0.15	Not required, as variance is less than 25%.
Return on equity ratio	0.08	0.09	(0.01)	Not required, as variance is less than 25%.
Inventory turnover ratio	7.84	8.84	(1.00)	Not required, as variance is less than 25%.
Trade receivables turnover ratio	6.74	5.80	0.94	Not required, as variance is less than 25%.
Trade payables turnover ratio	8.22	7.96	0.26	Not required, as variance is less than 25%.
Net capital turnover ratio	(38.97)	91.07	(52.1)	Due to Increase in Securities held for trade.
Net profit ratio	1.07	0.90	0.17	Not required, as variance is less than 25%.
Return on capital employed	0.08	0.07	0.01	Not required, as variance is less than 25%.
Return on investment	NA	NA	NA	Not required, as variance is less than 25%.

The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors.

Date: 27/08/2026		For & on behalf of the Board
Place: Mumbai		M Lakhamsi Industries Limited
	Sd/-	Sd/-
	Sanjiv Mulchand Sawla	Mallika Sanjiv Sawla
	Managing Director	Director and CFO
	DIN: 02045968	DIN: 01943285