Magnum Ventures Ltd Management Discussions

CAUTIONARY STATEMENT:

Managements Discussion and Analysis Report contains forward looking statements based on the certain assumptions and expectations of future events and the Company cannot assure that these assumptions and expectations are accurate and cannot derive a particular conclusion. Although the Management has considered future risks as part of the discussions, future uncertainties are not limited to the Management perceptions. The report contains the risks and uncertainties arising to the Company but it cannot be figured out exactly due to the fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions with respect to investments, fiscal deficits, regulation etc. In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India (SEBI), the Shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The changing economic and business conditions and rapid technological innovations are creating an increasingly impact on the industry. The Company does not undertake to make any announcement in case any of these forward looking Statements become materially incorrect in future or any update made thereon.

GLOBAL ECONOMIC OVERVIEW:

The global economy demonstrated resilience during 2025 despite continued geopolitical tensions, elevated trade policy uncertainty and uneven disinflation. According to the International Monetary Funds July 2026 World Economic Outlook Update, global growth is projected at 3.0% in 2026 and 3.4% in 2027. The outlook remains uneven, with the impact of geopolitical conflicts and higher energy prices weighing on energy-importing economies, while strong technology-related investment and productivity gains are supporting activity in some economies. Global disinflation has also slowed, reflecting renewed pressures arising from energy prices and supply-side disruptions. The global economic environment continues to be influenced by geopolitical developments, evolving trade policies, supply-chain disruptions and volatility in commodity and energy prices. The conflict in the Middle East has added to economic uncertainty and has the potential to affect energy supplies, transportation costs, inflation and global trade flows. At the same time, technological advancement, particularly developments in artificial intelligence, continues to support investment and productivity in several economies. Advanced economies are expected to continue growing at a moderate pace, while emerging market and developing economies remain important contributors to global growth. The economic outlook, however, remains subject to downside risks arising from renewed trade tensions, geopolitical fragmentation, elevated public debt, financial market volatility and potential disruptions in energy and supply chains. Against this backdrop, the global economy is expected to remain resilient, although growth is likely to remain below the levels witnessed during periods of stronger global expansion. The outlook will depend on the evolution of geopolitical conditions, the trajectory of inflation and interest rates, commodity prices, trade policies and the ability of economies to adapt to structural changes in technology and global supply chains. India continues to remain among the fastest-growing major economies and an important contributor to global growth. The International Monetary Fund has projected Indias growth at 6.4% for 2026, while the World Bank has projected Indias growth at 6.6% in FY 2026-27. Indias strong domestic demand, improving investment activity, resilient financial sector and continued infrastructure development provide important support to economic growth. Going forward, the global economic environment is expected to remain dynamic, with opportunities arising from technological advancement, infrastructure development, supply-chain diversification and increasing investment flows. At the same time, businesses will need to remain agile in managing risks associated with geopolitical developments, trade disruptions, energy prices, inflation and changing financial conditions.

Sources: IMF, World Economic Outlook Update July 2026 and World Bank, India Development Update April 2026

INDIAN ECONOMIC OVERVIEW:

The Indian economy continued to demonstrate resilience during FY 2025-26 despite a challenging global environment marked by geopolitical tensions, trade uncertainties and volatility in commodity and energy prices. According to the Economic Survey 2025-26, Indias real GDP growth is estimated at 7.4% in FY 2025-26, with Gross Value Added (GVA) estimated to grow by 7.3%. The growth momentum has been supported by resilient domestic demand, strengthening capital formation, improved manufacturing activity and sustained growth in the services sector. Domestic consumption continues to remain an important driver of economic activity, while gross fixed capital formation is estimated to grow by 7.8% during FY 2025-26. Manufacturing activity has also gained momentum, with the manufacturing sector estimated to grow by 7.0%, while the services sector is estimated to register growth of 9.1%. The trade, hotels, transport and communication segment is estimated to grow by 7.5%, providing continued support to Indias consumption and services-led growth. Indias macroeconomic fundamentals remained broadly stable during the year, supported by moderating inflation, improving domestic demand and continued public investment in infrastructure. The Governments focus on infrastructure development, logistics, connectivity, manufacturing and investment is expected to support economic activity and strengthen Indias medium-term growth prospects. The Indian economy, however, continues to remain exposed to external risks, including geopolitical developments, changes in global trade policies, commodity price volatility, supply-chain disruptions and fluctuations in global financial markets. The evolving global economic environment may also influence Indias exports, input costs and investment flows. Looking ahead, Indias growth prospects remain favourable, supported by rising domestic consumption, infrastructure development, increasing private investment, manufacturing expansion and the continued formalisation and digitalisation of the economy. The Governments focus on improving competitiveness, strengthening infrastructure and promoting domestic manufacturing is expected to create opportunities across industrial and service sectors.

Overall, India continues to remain one of the fastest-growing major economies and is well positioned to sustain its growth momentum, supported by strong domestic fundamentals, a large consumer base and continued structural reforms.

INDUSTRY OVERVIEW, STRUCTURE, DEVELOPMENTS & OUTLOOK:

GLOBAL PAPER INDUSTRY

The global paper and pulp industry continued to evolve during FY 2025-26, supported by sustained demand from packaging, e-commerce, food and beverage, consumer goods and other end-use industries. The industry is undergoing a structural transformation, with increasing emphasis on sustainable packaging, resource efficiency, recycling, technological advancement and reduction of environmental impact. Demand for paper-based packaging continues to benefit from the growth of e-commerce, organised retail and consumer goods, while the increasing preference for recyclable and biodegradable packaging solutions is creating new opportunities for paper and paperboard manufacturers. At the same time, the industry continues to face challenges arising from fluctuations in raw material and energy costs, changing trade policies, excess capacity in certain markets and competitive pressure from imported products. Asia-Pacific continues to remain an important growth region for the global paper industry, supported by expanding manufacturing capacity, increasing consumption and growing adoption of sustainable packaging solutions. The shift towards a circular economy and environmentally responsible packaging is expected to remain an important long-term growth driver for the industry. Technological advancement is also playing an increasingly important role in improving productivity, energy efficiency and resource utilisation. Paper manufacturers are increasingly focusing on modernisation, automation, waste reduction, water conservation and the use of recycled and alternative raw materials to improve operational efficiency and environmental performance. Going forward, the global paper industry is expected to remain supported by structural demand for packaging and paper-based products. However, volatility in raw material prices, energy costs, international trade, environmental regulations and changing consumer preferences will continue to influence the operating environment. Companies with efficient manufacturing processes, diversified product portfolios, strong customer relationships and the ability to adapt to sustainability requirements are expected to remain better positioned to capture emerging opportunities.

INDIAN PAPER INDUSTRY

The Indian paper and paperboard industry continued to witness a mixed operating environment during FY 2025-26. While the long-term fundamentals of the industry remain favourable, domestic manufacturers continued to face pressure from elevated imports, competitive pricing and volatility in key input costs. Indias paper industry benefits from relatively low per capita paper consumption compared with developed economies, providing considerable headroom for long-term demand growth. Increasing literacy, urbanisation, organised retail, e-commerce, packaged food and beverages, pharmaceuticals and consumer goods are expected to support the structural demand for paper and paperboard products.

The packaging segment continues to be an important growth driver for the industry. Increasing consumer preference for sustainable and recyclable packaging solutions, together with the gradual shift away from plastic-based packaging, is creating opportunities for paper-based alternatives. The growth of e-commerce and organised retail is also supporting demand for corrugated boxes, folding cartons and other paper-based packaging products. However, the domestic paper industry faced significant competitive pressure during FY 2025-26 due to increased imports. The sharp rise in imports in recent years has placed pressure on domestic manufacturers in terms of capacity utilisation, realisations and margins. Competition from imported paper, particularly from Asian markets, remains an important concern for domestic manufacturers. The industry is also exposed to fluctuations in the prices and availability of raw materials, chemicals, energy and logistics. Changes in international pulp and recovered paper prices, foreign exchange movements and freight costs can materially influence the cost structure of paper manufacturers. At the same time, Indian paper manufacturers are increasingly focusing on modernisation, technology upgradation, energy efficiency, water conservation, recycling and environmentally sustainable manufacturing processes. Such initiatives are expected to improve productivity, reduce resource intensity and enhance the competitiveness of domestic manufacturers. The Company believes that the long-term prospects of the Indian paper industry remain positive, supported by increasing domestic consumption, packaging demand, import substitution opportunities and the growing preference for sustainable products. The industry is expected to benefit from technological advancement and continued investment in capacity, efficiency and product quality. Going forward, the ability of paper manufacturers to manage raw material costs, improve operational efficiency, maintain product quality and respond to changing market and environmental requirements will remain critical to sustainable growth.

GLOBAL HOSPITALITY & TOURISM INDUSTRY

The global hospitality and tourism industry continued its recovery and expansion during FY 2025-26, supported by resilient travel demand, increasing leisure and business travel, rising consumer spending on experiences and continued growth in international tourism. The sector has benefited from the normalisation of travel patterns and increasing demand for premium hospitality experiences. The hospitality industry is undergoing significant transformation driven by digitalisation, changing consumer preferences, personalised experiences and sustainability. Technology-enabled booking platforms, contactless services, data-driven customer engagement and digital payment solutions are increasingly becoming integral to the hospitality ecosystem. Leisure travel continues to remain an important demand driver, while business travel, meetings, incentives, conferences and exhibitions (MICE), weddings and destination events are contributing to a diversified demand environment. Premium and branded hotels are particularly positioned to benefit from increasing demand for quality accommodation and enhanced guest experiences. The industry, however, continues to face challenges including geopolitical uncertainties, fluctuations in travel costs, labour availability, changing consumer behaviour and increasing competition. Rising operating costs, including manpower, energy and food costs, may also impact margins. Going forward, the global hospitality industry is expected to remain on a growth trajectory, supported by increasing travel penetration, rising disposable incomes, digital transformation and the growing preference for experiential travel. Hotels with strong brands, differentiated offerings, efficient operations and high customer engagement are expected to remain well positioned to benefit from these trends.

INDIAN HOSPITALITY AND TOURISM INDUSTRY

The Indian hospitality and tourism industry continued to demonstrate strong growth during FY 2025-26, supported by robust domestic travel, increasing business activity, weddings, MICE events and improving international tourism. The sector has emerged as an important contributor to economic activity, employment generation and foreign exchange earnings. Demand for hotel accommodation remained healthy during the year, supported by the continued recovery in business and leisure travel. Domestic tourism remains a key growth driver, while the revival in international travel and Indias increasing attractiveness as a destination for business, leisure and events has further supported the sector. According to industry estimates, the Indian hotel industry is expected to register revenue growth of approximately 9 12% in FY 2025-26. Demand continues to remain strong across leisure travel, MICE activities, weddings and corporate travel. Premium hotel demand has remained particularly favourable, with demand growth continuing to exceed the pace of addition of premium room inventory in key markets. The hospitality sector has also witnessed increased investment activity. Indias hotel sector attracted approximately 1,636 crore of investment during January March 2026, representing an increase of 58% over the corresponding period of the previous year. This reflects continued investor confidence in the sector, supported by improving occupancy levels, rising travel demand and expansion of branded hotel infrastructure. Government initiatives relating to tourism infrastructure, regional connectivity and destination development are expected to further support the industrys long-term growth. Initiatives such as Swadesh Darshan, Dekho Apna Desh and improved air and road connectivity are contributing to the development of domestic and international tourism. The industry nevertheless remains exposed to economic cycles, geopolitical developments, changes in travel patterns, inflationary pressures, manpower costs and increasing competition. Hotels also need to continuously invest in technology, service quality, guest experience and sustainability to remain competitive. Looking ahead, the Indian hospitality and tourism industry is expected to maintain its growth trajectory, supported by rising domestic travel, increasing disposable incomes, a growing middle class, improved connectivity, business travel, MICE activities and the increasing preference for experience-led tourism. The Company believes that the favourable long-term fundamentals of the sector provide opportunities for sustained growth and improved operational performance.

COMPANY OVERVIEW:

The Company was incorporated on May 29, 1980 as MAGNUM PAPERS LIMITED and on 31 st May, 1995, the status of the Company was changed from Private Limited Company to Public Limited Company. Further, its name was changed as Magnum Ventures Limited (Magnum). In September 20, 2007, Magnum made an Initial Public Offer and is currently listed at National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).

Magnum is ideally located at Sahibabad, Ghaziabad (Uttar Pradesh) the NCR region hardly 15 KM from the heart of Delhi i.e., Connaught Place, New Delhi. The Company is having large infrastructures of 65,000 Square Meters and Five Lakh Square feet Building Area in Sahibabad Industrial Area, Ghaziabad (Uttar Pradesh).

Magnum currently operates in Paper Industry and Hotel Industry. The Company is manufacturing papers since more than 30 Years. The Company is one of the largest writing and printing paper and duplex paper printing concern in the Northern region. The existing manufacturing activities cover printing and writing papers, duplex boards, Xerox paper, Wrapping and packing paper and so on with installed capacity of 85K MT per annum based on 3 shift and 330 days working days in a year. The Company also contributes to the environment by focusing on the recycling process of paper making. Magnum also operates Hotel Industry by the name of COUNTRY INN & SUITES by Radisson, a Five Star Hotel at Sahibabad, Ghaziabad (Uttar Pradesh) diagonally opposite to Vaishali Metro Station, 50 minutes from the International Airport, 10 minutes from the Akshardham Temple and India Gate and Connaught Place is just a 25 minutes drive from the Hotel. Our Sahibabad hotel provides innovative theme restaurants, extensive banqueting areas, state-of-the-art Business Centre, health club and spa, beauty salon, shopping arcade and outdoor, poolside bar that offers a world-class dining experience. The hotel is the first eco-friendly, all-vegetarian, five-star hotel. It comprising of 216 rooms in four categories i.e. 64 Standard Rooms, 76 Superior Rooms, 70 Club Rooms, and 6 Executive Suites. The Hotel was soft launched in the month of January, 2009, which is now in full operation. The hotel has a USP of being the first all Vegetarian Hotel to have been formally certified as a five star hotel by (HRACC) Ministry of Tourism.

SWOT ANALYSIS HOTEL INDUSTRY

Opportunities

Hotels adopting energy-efficient operations, renewable energy, water conservation, and zero-waste initiatives can attract environmentally conscious guests and reduce costs. Implementation of smart hotel technologies, contactless check-ins, AI-driven services, and digital marketing enhance guest experience and operational efficiency. Growth in branded hotels, rising disposable incomes, government support for tourism, and increased business and leisure travel drives industry expansion. Leveraging data analytics for hyper-personalisation and loyalty programmes fosters guest loyalty and repeat business. Threats Both domestic and international hotel chains, as well as substitutes like short-term rentals, increase market competition Lack of skilled labor and trained professionals can impact service quality Changing government policies, taxation and safety regulations may impact operations and profitability

PAPER INDUSTRY

Opportunity

Use of 100% wastepaper and adoption of renewable energy (solar, bio-diesel) aligns with global sustainability trends and can improve cost efficiency. Expanding into higher GSM papers and speciality products can tap into new market segments, Urbanisation, increased literacy, and packaging needs drive demand for paper products. Policy support for recycling and sustainable manufacturing can enhance competitiveness. Threats Water and energy resource constraints, as well as extreme weather events, can disrupt production. Stricter compliance requirements may increase operational costs. Dependence on consistent supply of raw materials poses operational risks.

KEY RISK AND MITIGATION MEASURES

Key risk and mitigation measures based on the risk assessment undertaken are illustrated below:

PAPER INDUSTRY

Type of risks	Mitigation measures
Raw Material Risk	Close proximity to raw material sources besides strong and long-lasting vendor relationships help the Company ensure steady availability. With a deep understanding of the historical cycle of input prices, the Company consciously takes measures to save landed cost and inventory management. The Company\u2019s robust hedging policies take care of any raw material price volatility.
For its paper production, the Company uses waste paper & other material, respectively as raw materials. Production may be impacted due to unavailability, limited availability or price volatility of these raw materials
Policy Risk	The Company\u2019s adept management team closely monitors policy actions and accordingly formulates business strategies. The Company leverages various policy incentives by the Government to strengthen its market position. Leveraging economies of scale, cutting-edge technology, and strategic partnerships with all stakeholders, gives the Company the competitive advantage to offer competitive rates globally.
Introduction of new policy or modification in an existing policy may impact the Company\u2019s business thereby posing a risk to revenue flow
Competition Risk
Low-cost imports due to favorable government policies in other countries, may pose significant risk to business and impact pricing strategy

Type of risks	Mitigation measures
Business interruption on account of natural calamities / Acts of God / riots & strikes / political instability and terrorism / pandemics	Hotels categorized into High, Medium and Low based on risk profile and appropriate measures put in place
The pandemic has caused disruptions in the business environment resulting in severe drop in revenues	Insure properties against force majeure
Cyber Vulnerabilities	In-depth cyber risk assessment and remedial action
Risks related to hacking incidents, exposure personal and sensitive guest data	Cyber security training and awareness programmes
Abuse of social media and other media by guest / staff / stakeholders The hospitality industry is more exposed to social media, due to various direct guest interfaces	Continuous monitoring of comments in social media and timely responses provided Protective care, communication and counseling Customer Communication
Employee and customer well-being Due to pandemic, guests need assurance in terms of hygiene and cleanliness of the hotel. The staff also needs to be trained and tools need to be given to perform their duties Data governance
Quality and democratization of data analytics Impact of climate change on organization The hotel industry is exposed to the climatic changes and risks arising out of such events Data Privacy Various regulations have been introduced across geographies for protection of data owner privacy Loss of critical / sensitive data due to leakage / loss / hacking Changes in levy / tax structure, resulting in litigation / exorbitant demands Workforce reskilling challenges and non- traditional working arrangements	Data warehouse and analytics Uniformity in inputting of data Continuous scanning of the environment Use of renewable / alternate energy
	Internal audit and continuous monitoring Data Processor/Controller agreements with all relevant vendors
	Changes in policies and processes Creating awareness amongst stakeholders Encryption, Firewalls, Policies, Audits, Endpoint protection Improve coordination with relevant authorities
	Structured Training Need Analysis with inputs from customers, managers, social media comments, etc. to arrive at the training needs
	Structured Training calendars at every hotel and following through on the implementation
	Corporate Office extending work from home in consultation with the manager

HUMAN RESOURCE

Our company follows the diverse set of measures relating to the Human Resource to reduce the hindrances in our Manufacturing Process:

In a manufacturing and service sector concern like ours, it becomes very important to effectively manage all the employees in order to achieve the goals of the organization.

Human resource is very important in the growth and development of a company. It recognizes the importance and contribution of the employees involvement in the operation of the company for the effective result.

We tend to maintain right number of employees at the right time at the right place. Our Companys human resource management strategy maximizes return on investment in the human capital and minimizes financial risk. Human Resources seeks to achieve this by aligning the supply of skilled and qualified individuals and the capabilities of the current workforce, with the companys on-going and future business plans and requirements to maximize return on investment and secure future survival and success. In ensuring to achieve our objectives, the human resource function purpose in this context is to implement the human resource requirements effectively but also practically, taking account of legal, ethical and as far as is practical in a manner that retains the support and respect of the workforce.

The Companys belief in trust, transparency and teamwork improved employee and staff productivity at all levels. Your management is also committed to help the employees and workers to sharpen their skills and to improve their knowledge base for which continuous efforts are made on training and development.

COMPLIANCE

Compliance with laws and regulations is an essential part of our business operations. The Company adheres to all national and local laws and regulations applicable to its area of operation which includes employee health and safety, the environment, corporate governance, stock exchange listing and disclosures, employment and taxes. The Company has a robust internal check process to prevent and limit the risk of non-compliance.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

Your company follows a set of measures relating to the internal control system to reduce the risk and proper implementation of the Policies:

The Company has established a sound internal control system which contributes to safeguarding the shareholders investment and the companys assets. A sound system of internal control facilitates the effectiveness and efficiency of operations, helps ensure the reliability of internal and external reporting and assists compliance with laws and regulations.

The Company has an audit committee which oversees the adequacies of the system of the internal control and report to the board. Also the Company has appointed an Internal Auditor to conduct internal audit of the functions and activities of the Company and reported to the Audit Committee/Board. All the above business control procedures ensure efficient use and protection of the resources and compliance with the policies, procedures and status.

PROPERTY, UPGRADES AND RENOVATIONS

During FY 2025-26, the Company continued to focus on strengthening and modernising its paper manufacturing operations. As part of its ongoing efforts to improve operational efficiency, productivity and product quality, the Company undertook upgradation and modernisation of machinery and equipment at its paper manufacturing unit situated at Sahibabad, Ghaziabad, Uttar Pradesh.

The machinery upgradation was undertaken with the objective of enhancing the operational capabilities of the paper manufacturing unit, improving quality, optimising resource utilisation and strengthening the Companys ability to meet evolving customer and market requirements.

FOOD SAFETY, HYGIENE AND CLEANLINESS

Continuous improvement of the Food Safety Management System by training and optimizing the capacities of people, processes and technologies is an ongoing exercise. To increase the rigour in respect of Food Safety, Hygiene and Cleanliness audits were conducted by an external audit partner, ensuring implementation of FSSAI guidelines and standards.

In order to address the challenges, your Company has taken several measures to ensure safety and wellbeing of its associates and guests. Following are some of the safety measures undertaken at hotel units.

Provisions of Hand sanitizers while entering the hotel premises and at various locations inside. Temperature monitoring at time office and main gate. Mask for all the staff while entering for duty and for guests. Cleaning and sanitization of all the touch at regular intervals. Disinfection of guest rooms after each check outs.

COMPANY PERFORMANCE

During FY 2025 26, Magnum Ventures Limited reported total consolidated income of 46,679.59/- lacs, compared to 39,725.55/- Lakh in FY 2024-25 reflecting increase of 17.5%. The Company reported a loss Before Tax of 1595.05 Lakhs. After accounting for deferred tax credit, the loss for the Year stood at 1137.85 Lakhs. The Company maintained a healthy capital structure, with total equity increasing to 6,841.13 Lakhs as compared to 6,641.13 Lakhs in FY 2024 25.

PRODUCT WISE PERFORMANCE

Presently the Company has been dealing in two segments, i.e., Paper Division and Hotel Division. The details of the both the business segments are as follows:

SALES

PRODUCT	Current Year (2025-26)		Previous Year (2024-25)
	Quantity (MT)	Value (Amt in Lacs)	Quantity (MT)	Value (Amt in Lacs)
Paper division	85,974 MT	35719.86	72,223 MT	29657.46
Hotel division	NA	10959.73	NA	10068.09

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor:-

Sl. No. Particulars	Financial Year	Financial Year	% Change with reasons
	2025-26	2024-25
1. Current Ratio	2.17	2.33	-2.57 Due to increase in current liabilities.
2. Return on Equity	-0.02	0.01	100 Due to reduction in profit.
3. Inventory Turnover Ratio	5.82	7.48	-22.19 Due to reduction in inventory turnover ratio
4. Debtor Turnover Ratio	7.79	6.39	21.90 Due to increase in debtors.
5. Creditor Turnover Ratio	6.65	6.04	10.09 Due to increase in sundry creditors
6. Net Capital Turnover Ratio	3.96	3.59	10.31 Due to increase in sales and current assets
7. Net Profit margin	-2.45	2.40	-202.08 Due to loss incurred by the company (not cash loss)
8. Return on Capital Employed	0.02	0.03	-33.33 Due to reduction in profit
9. Interest Coverage Ratio	0.56	0.99	Due to increase in interest cost
10. Debt Equity Ratio	0.34	0.25	Due to increase in long term debt
11. Operating Profit Margin	-3.82	-0.24	Due to increase in Finance Cost
12. Return on Net Worth	-0.02	0.01	Due to increase in Finance Cost

For and on Behalf of the Board
Magnum Ventures Limited

Sd/-	Sd/-
Parveen Jain	Abhay Jain
Director	Managing Director
DIN: 00423833	DIN: 01876385

Date: 14 th August, 2026
Place: Ghaziabad