Maharashtra Corporation Ltd Management Discussions

Pursuant to Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, the Management Discussion and Analysis Report is as under:

Forward-Looking Statements Disclaimer

Readers are cautioned that this Management Discussion and Analysis contains forward- looking
statements that involve risks and uncertainties. When used in this discussion, the words
"anticipate", "believe", "estimate", "intend", "will", and "expected" and other similar expressions
as they relate to the Company or its business are intended to identify such forward looking
statements, whether as a result of new information, future events, or otherwise. Actual result may
vary from those expressed or implied. The important factors that would make a difference to the
Companys operations include economic conditions affecting demand supply and price conditions
in the domestic markets, raw material prices, changes in the Governmental regulations, labour
negotiations, tax laws and other statutes, economic development within India and the countries
within which the Company conducts business and incidental factors. The Company undertakes no
obligation to publicly amend, modify or revise any forward-looking statements on the basis, of
any subsequent developments, information or events. The discussion and analysis should be read
in conjunction with the Companys financial statements included herein and the notes thereto.

Outlook

The global economy is expected to maintain a steady growth trajectory, with projected expansion
rates of 2.8% and 3.0% for 2025 and 2026, respectively.

In the United States, growth is anticipated to fall to 1.8% in 2025 and 1.7% in 2026, influenced
by changes in labor market conditions and a decline in consumer spending. The Eurozone is
predicted to recover, with growth reaching 0.8% in 2025 and improving to 1.2% in 2026, driven
by increased consumer spending and lower inflation rates.

Global inflation is projected to fall to 4.3% in 2025 and further to 3.6% in 2026. Monetary
policies are expected to vary across different regions, reflecting the diverse economic conditions.
(Source: World Economic Outlook, IMF, Reuters)

About your Company

Originally incorporated on November 24, 1982, as Maharashtra Industrial Leasing and
Investments Limited under the provisions of the Companies Act, 1956, with the Registrar of
Companies, Mumbai, Maharashtra, your Company subsequently underwent name changes to
reflect its evolving business interests. It was renamed Maharashtra Overseas Limited on May 31,
2006, and eventually adopted the name Maharashtra Corporation Limited on March 23, 2011.

Maharashtra Corporation Limited main objects includes investing, trading, and distributing
various textile products, commodities, and goods. Its diverse product portfolio ranges from

gunnies, handicrafts, and hessian to tea, shellac, hides, cotton, and more.

Additionally, your Company expanded its horizons by passing a Board Resolution on December
13, 2021, to add real estate business as additional main object of the Company. This has enabled
your company to engage in property acquisition, development, construction, and commercial
activities. The shareholders approval for this diversification was secured through a special
resolution at an Extraordinary General Meeting held on January 29, 2022.

ECONOMIC OVERVIEW

Indias economy has exhibited steady growth and stability during FY 2024-25, reaffirming its
position as one of the fastest-growing major economies globally. According to the Second
Advanced Estimate (SAE) data from the National Statistical Office (NSO), the real Gross
Domestic Product (GDP) grew by 6.5% for FY 2024-25, following an impressive 9.2% growth
in the previous financial year. This ongoing growth trend highlights the nations solid economic
foundations, beneficial government policies, a flourishing services sector, and robust domestic
demand, all of which bolster confidence in Indias long-term growth trajectory.

Significant government reforms and considerable investments in both physical and digital
infrastructure, alongside initiatives such as ‘Make in India and the Production-Linked Incentive
(PLI) scheme, have been instrumental in enhancing the countrys growth trajectory and
promoting self-sufficiency.

The services sector experienced consistent growth of 7.2% during the financial year 2024-25,
driven by robust activity across various segments, including finance, real estate, professional
services, public administration, and defence, among others.

Indias economic position continues to improve, now ranking as the fifth-largest economy in the
world by nominal Gross Domestic Product (GDP) and the third-largest when measured by
purchasing power parity (PPP). The nation has set ambitious goals to achieve a $5 trillion
economy by FY 2027-28 and a $30 trillion economy by 2047. These objectives are to be realized

REAL ESTATE INDUSTRY

The real estate sector is one of the most globally recognized sectors. It comprises of four sub-
sectors - housing, retail, hospitality, and commercial. The growth of this sector is well
complemented by the growth in the corporate environment and the demand for office space as well
as urban and semi-urban accommodation. The construction industry ranks third among the 14
major sectors in terms of direct, indirect and induced effects in all sectors of the economy.

Market Size

Indian real estate developers operating in the countrys major urban centres are poised to achieve

a significant teat in 2023, with the completion of approximately 558,000 homes.

In 2023, demand for residential properties surged in the top 8 Indian cities, driven by mid-income,
premium, and luxury segments despite challenges like high mortgage rates and property prices.

Investment/Development

Indian real estate sector has witnessed high growth in the recent times with rise in demand for
office as well as residential spaces. The Private Equity Investments in Indias real estate sector,
stood at US$ 4.2 billion in 2023. The Private Equity Investments in Indias real estate sector, stood
at US$ 3.4 billion in 2022. Indias real estate sector saw a three-fold increase in foreign institutional
inflows, worth US$ 26.6 billion during 2017-2022. Exports from SEZs reached US$ 157.2 billion
in FY23 and grew ~28% from US$ 133 billion in FY22. In July 2021, the Securities and Exchange
Board of India lowered the minimum application value for Real Estate Investment Trusts from
Rs. 50,000 (US$ 685.28) to Rs. 10,000-15,000 (US$ 137.06 - US$ 205.59) to make the market
more accessible to small and retail investors. Construction is the third-largest sector in terms of
FDI inflow. FDI in the sector (including construction development & activities) stood at US$ 58.5
billion from April 2000-September 2023.

PROSPECT & OUTLOOK

The management is of the view that the future prospects of your Company are bright. The decision
to venture into real estate industry signifies a pivotal moment in your Companys evolution,
opening up new avenues for growth and profitability. The financial outlook for your company in
the real estate business is promising. While the initial stages of real estate development may require
significant capital investment, the long-term returns can be substantial. Revenue from property
sales, rentals, and property management services can provide a steady income stream. Its
important to note that the real estate sector is subject to regulatory oversight, and compliance with
local laws and regulations is imperative. Your companys management is committed to adhering
to all legal requirements, ensuring transparency, and maintaining the highest standards in
compliance, communication, quality and customer satisfaction in its real estate ventures.

OPPORTUNITIES AND THREATS
Opportunities:

• Diversified avenues in Real Estate and Trading business

• Increase in Demand

• Long-Term Growth from property appreciation over time

• Government schemes support real estate, and trade benefits from favorable policies,
fostering opportunities

• Attracting foreign investments can fund large real estate projects and boost international
trade.

• Technology Integration

Threats:

• Regulatory Compliance: Local, State & National regulations from various departments

• Economic shifts impact markets and consumer buying behaviour

• Financing Challenges & Intense Competition

• Economic Factors: Interest rates, inflation, etc.

• Supply Chain Risks causing delays and cost increases.

• Technology risks including Dependency on technology introduces cybersecurity and data
privacy risks.

• Environmental Factors: Sustainability trends and environmental regulations impacting
businesses.

RISK FACTORS

The following section outlines various risk factors that could impact our operations and financial
performance and may render our views of growth and prospects challenging. Its essential to
recognize that these factors are not exhaustive, and our company may face additional risks and
uncertainties that are not explicitly mentioned here. Understanding and addressing these risks &
challenges is crucial for evaluating our Companys financial goals and future prospects:

• Fluctuations in Prices and Changes in Demand & Supply

• Operational Costs and Efficiency

• Product and Market Mix

• Currency Exchange Rate Volatility

• Government and Local Regulatory Policies

• Availability of Government Benefits and Subsidies

• Fundraising Challenges for Projects

• Talent and Skilled Workforce Availability

• Competitive Pressures

• Machinery or Plant Breakdown

• Disruptions in Power Supply from State Electricity Board

• Labor Strikes

• Emergence of Product Substitutes or Innovations

• Impact of Natural Calamities

• Force Majeure Events

• Insufficient Funding

• Deal Cancellations

• Project Completion Delays

• Legal Disputes and Compliance Issues

FINANCIAL OVERVIEW

• Current Rati o - 38.59

• Debt Equity Ratio - Company is debt free

• Net Profit Ratio - 5.63%

RISK MANAGEMENT

The Company has established a risk management framework to identify, manage and mitigate
risks arising from external and internal factors. A risk identification exercise is carried out
periodically to identify various strategic, operational, financial and compliance related risks. These
risks are evaluated for their likelihood and potential impact. Few risks and uncertainties that can
affect the business include an accelerated shift in consumer preferences towards digital
propositions, attraction and retention of right talent in new environment post the pandemic, adverse
macroeconomic conditions including impact of geopolitical tensions influencing revenue growth
and risk of newsprint price volatility & supply constraints resulting in higher direct costs. Further,
an intense competitive landscape along with the risk of cyber threat and data breach remain some
of the key concerns faced by the Company.

INTERNAL CONTROL SYSTEMS & ADEQUACY

Internal Control Systems has been designed to provide reasonable assurance that assets are
safeguarded, transactions are executed in accordances with managements authorization and
properly recorded and accounting records are adequate for preparation of financial statements and
other financial information. Internal check is conducted on a periodical basis to ascertain the
adequacy and effectiveness of internal control systems. The management has put in place internal
systems for review and monitoring of non- performing assets of the company and to indicate
corrective action for effecting recoveries.