Mahaalaxmi Texpro Ltd Management Discussions

Your directors take pleasure in presenting the Management Discussion and Analysis Report for the year ended March 31, 2026.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

Indias textiles and clothing industry is one of the mainstays of the national economy. It is also one of the largest contributing sectors of Indias exports worldwide. Raw material costs have been increasing globally, coupled with a shortage of skilled workers. The industrial climate in India has become adverse due to regular increases in input costs.

2. OPPORTUNITIES AND THREATS

With increasing global awareness around sustainability, Indian textile companies have a unique opportunity to lead in organic and eco-friendly fabrics. The demand for biodegradable materials, water-e cient processes, and ethical sourcing is rising, paving the way for innovative and sustainable business models. The rise of e-commerce has further opened direct-to-consumer opportunities for textile brands.

The volatility in raw material prices, particularly cotton and synthetic bers, continues to impact production costs, also pose risks to material availability and pricing stability.

3. SEGMENTS WISE PERFORMANCE

In terms of the Ind AS, there is only one reportable segment i.e., Textile Segment.

4. OUTLOOK

Since the company was under the liquidation, with the support of new management team, company is trying to work with their available capacity. The management is looking at the future with optimism and expects that with the improvement in demand and softening of raw cotton prices in the coming periods, will give a relief to the Textile Industry.

5. RISKS & CONCERNS

The Company is exposed to risks arising from changes in the economic, regulatory and business environment, including changes in applicable laws and regulations, market conditions, operating costs, liquidity requirements and other factors beyond the control of the Company.

The Management periodically reviews the principal risks associated with the Companys activities and nancial position and takes appropriate measures, wherever practicable, to manage and mitigate such risks.

The Company continues to monitor developments that may have an impact on its operations, nancial position and future business activities.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Adherence to appropriate procedures, internal controls and monitoring procedures are very important. The company believes in effective control and compliance process. The Internal Audit carried out by the Chartered Accountants evaluate the functioning and quality of companys internal controls. The present control system and its monitoring is considered as adequate to take care of the current business of the company.

7. HUMAN RESOURCES

There is no material development impacting the company in Human Resources/Industrial Relations front. The overall industrial relations had been satisfactory. The company has 2 employees on its rolls as at 31st March 2026.

8. FINANCIAL AND OPERATIONAL PERFORMANCE

During the year, Revenue from operation was Nil as compared to Rs. 462.21 Lakhs during the previous nancial year whereas company has incurred a Loss before tax and Exceptional Items of Rs.135.54 Lakhs as against Loss before tax of Rs. 520.36 Lakhs in previous year.

9. FINANCIAL RATIOS

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Amendment Regulations, 2018, the Company is required to give details of signi cant changes (changes of 25% or more as compared to immediately previous nancial year) in nancial ratios are as follows:

	RATIO	FORMULA	25-26	24-25	%
			RATIO	RATIO	Change
1	Current Ratio	Current Assets Current Liabilites	0.16	0.31	(48.99)
2	Debt Equity ratio	Total Debts Total shareholders Equity	N.M.	N.M.	NA
3	Debt Service Coverage Ratio	Net operating income Debt service	NA	NA	NA
4	Return on Net Worth	Net Income Avg Shareholders Equity	N.M.	(25.68)	NA
5	Inventory Turnover Ratio	Cost of goods sold Average Inventory	NA	NA	NA
6	Trade Receivables Turnover Ratio	Net Credit sales Average Accounts Receivable	0.00	4.53	(100)
7	Trade Payable Turnover Ratio	Net Credit Purchase Average Accounts Payable	0.00	0.0008	(100)
8	Net Capital Turnover ratio	Sales Working capital	N.M.	N.M.	NA
9	Net pro t Ratio (%)	Net pro t Revenue	NA	(1.13)	NA
10	Return on capital employed	Earning Before Interest & Taxes (EBIT) Capital employed	N.M.	N.M.	NA
11	Return on investment	Interest Earned & Dividend Average Investment	0.0	0.0030	(100)

N.M. Not Meaningful.

1. The Current Ratio decreased primarily due to a substantial reduction in current assets, mainly on account of reduction in trade receivables to Nil, without a corresponding proportionate reduction in current liabilities.

2. The Debt-Equity Ratio is not meaningful since the shareholders equity of the Company is negative as at the respective reporting dates. Accordingly, percentage change in the ratio has not been computed.

3. The Debt Service Coverage Ratio is not applicable since the Companys borrowings are interest-free and repayable on demand and there are no scheduled interest/debt-service obligations during the year.

4. The Return on Equity Ratio for FY 2025-26 is not meaningful since the average shareholders equity is negative. Accordingly, percentage variation has not been computed.

5. Not applicable since the Company had no inventory and no cost of goods sold during the respective periods.

6. The Trade Receivables Turnover Ratio decreased to Nil due to absence of revenue from operations during FY 2025-26. The closing trade receivables were also reduced to Nil during the year.

7. The Trade Payables Turnover Ratio decreased to Nil due to absence of credit purchases during FY 2025-26. Trade payables mainly represent outstanding balances pertaining to earlier periods.

8. The Net Capital Turnover Ratio is not meaningful since the Company has negative working capital in both reporting periods. Further, there was no revenue from operations during FY 2025-26.

9. The Net Pro t Ratio for FY 2025-26 is not applicable since there was no revenue from operations during the year.

10. ROCE is not meaningful since both EBIT and Capital Employed are negative. Consequently, the mathematical ratio results in a positive return which does not represent the economic performance of the Company.

11. No Return-on-Investment Income During the FY 2025-26

10. CAUTIONARY STATEMENT

Statements in this Directors Report and Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.

Date : 1st September, 2026	By order of the Board of Directors
Place : Kolhapur	For Mahaalaxmi Texpro Limited
	Deepak Choudhari
	Managing Director
	(DIN: 03175105)