Max Alert Systems Ltd Management Discussions

1. COMPANY OVERVIEW

Max Earth Resources Limited ("MERL" or "the Company"), formerly known as Max Alert Systems Limited, is positioning itself as a natural resources and infrastructure materials company with a strategic focus on mining, quarrying, stone crushing, aggregate production and development of mineral resources.

The Companys present business strategy is based on developing an integrated resource-to-market model encompassing mineral resource ownership, quarry development, crushing and processing infrastructure and supply of construction aggregates and allied infrastructure materials.

The Company has an existing stone quarry asset at Jamtara, Jharkhand, and a stone-crushing operation at Khunti, Jharkhand. Management is also evaluating opportunities for expansion of its quarry and mineral resource base, additional crushing facilities and strategic mineral projects.

The Companys objective is to progressively develop a diversified and scalable natural resources platform capable of participating in Indias long-term infrastructure, construction and industrial development.

2. INDUSTRY STRUCTURE AND DEVELOPMENT

GLOBAL ECONOMIC ENVIRONMENT

During FY 2025-26, the global economy continued to operate in an environment characterised by geopolitical uncertainties, changing interest-rate conditions, trade-policy developments and continuing supply-chain adjustments. Against this backdrop, infrastructure investment and industrial development remained important drivers of demand for basic construction and mineral materials.

For resource-based businesses, these conditions reinforce the importance of operational efficiency, cost discipline, secure mineral resources, regulatory compliance and prudent capital allocation.

INDIAN ECONOMIC ENVIRONMENT

India continues to experience strong structural growth supported by public infrastructure expenditure, urbanisation, industrialisation, transportation development, housing and private-sector investment.

Continued development of highways, railways, ports, logistics infrastructure, industrial corridors, urban infrastructure, housing and other construction projects is expected to sustain long-term demand for aggregates, crushed stone and other infrastructure materials.

Management believes that the Companys focus on mining, quarrying, crushing and value-added processing places it in a sector with attractive long-term structural demand.

3. INDUSTRY OUTLOOK

The Indian stone mining, quarrying and aggregate industry is closely linked to infrastructure and construction activity. Aggregates and crushed stone are essential inputs for:

• Roads and highways;

• Bridges and railway infrastructure;

• Housing and commercial construction;

• Industrial and manufacturing facilities;

• Airports, ports and logistics infrastructure;

• Urban development projects; and

• Other civil and infrastructure projects.

The sector is, however, highly dependent upon statutory approvals, availability of mineral resources, environmental compliance, transportation economics, local market conditions and construction activity.

Management therefore intends to pursue growth through a combination of resource ownership, operational integration, processing capability and geographic diversification rather than dependence on a single asset or market.

4. BUSINESS MODEL AND STRATEGIC POSITIONING

The Companys business model is intended to progressively integrate the following activities:

Mineral Resource / Quarry ^ Boulder Extraction ^ Transportation ^ Crushing & Screening ^ Aggregate Processing ^ Finished Product Supply

Such integration provides an opportunity to capture value at multiple stages of the supply chain and reduce dependence on external suppliers of processed material.

The Companys product portfolio and business opportunities include various sizes of aggregates, stone dust, GSB, WMM and other infrastructure construction materials, subject to applicable project requirements and regulatory permissions.

The Companys strategic focus is to establish a stronger resource base and processing infrastructure capable of serving infrastructure contractors, construction companies, industrial users and other institutional customers.

5. OPERATIONAL PLATFORM

The Companys current platform includes:

Jamtara - Jharkhand

The Company has a stone quarry asset in Jamtara district, Jharkhand, covering approximately 8.47 acres as stated in the Companys investor proposal.

Khunti - Jharkhand

The Company has established a stone-crushing operation at Khunti, Jharkhand, forming an important part of its infrastructure- materials platform.

The investor proposal identifies aggregate production and crushing/processing capacity as important components of the Companys operating platform.

Management is also evaluating additional quarry acquisitions, resource-development opportunities and new crushing projects in suitable markets.

6. FINANCIAL PERFORMANCE - FY 2025-26

The Companys audited financial results demonstrate significant improvement in operating performance during FY 2025-26.

KEY FINANCIAL INDICATORS

(? in lakh)

Particulars	FY 2025-26	FY 2024-25	Growth
Revenue from Operations	2,329.41	1,458.72	59.69%
Other Income	343.32	226.55	51.65%
Total Revenue	2,672.73	1,685.27	58.60%
Total Expenditure	2,115.16	1,357.88	55.76%
Profit Before Tax	557.56	327.39	70.32%
Profit After Tax	551.80	324.62	69.98%
Basic EPS (?)	59.98	35.29	70.01%

The audited results record revenue from operations of ?2,329.41 lakh against ?1,458.72 lakh in the previous year, representing growth of approximately 59.7%. Profit before tax increased from ?327.39 lakh to ?557.56 lakh, while profit after tax increased from ?324.62 lakh to ?551.80 lakh.

The Companys earnings performance reflects an improvement in the scale of business and operating activity during the year.

7. REVENUE AND PROFITABILITY ANALYSIS

Revenue from operations increased substantially during FY 2025-26. This improvement reflects increased business activity in the Companys mining, aggregate and infrastructure-materials related operations.

Total revenue increased from ?1,685.27 lakh to ?2,672.73 lakh.

Profit before tax increased by approximately 70%, from ?327.39 lakh to ?557.56 lakh. Profit after tax increased from ?324.62 lakh to ?551.80 lakh.

The Companys basic earnings per share increased from ^35.29 to ^59.98.

Management remains focused on improving operating efficiency, strengthening margins, increasing asset utilisation and ensuring disciplined deployment of capital as the business expands.

8. BALANCE SHEET AND FINANCIAL POSITION

As at 31 March 2026, the Company reported total assets of approximately ^1,212.10 lakh.

The Companys principal asset categories included:

• Tangible fixed assets of approximately ^243.52 lakh;

• Trade receivables of approximately ^590.45 lakh;

• Short-term loans and advances of approximately ^213.83 lakh;

• Other current assets of approximately ^120.83 lakh; and

• Cash and cash equivalents of approximately ^31.37 lakh.

The Companys shareholders funds, comprising share capital and reserves and surplus, were approximately ^829.54 lakh.

The Company had no long-term borrowings and no short-term borrowings reported in the audited balance sheet as at 31 March 2026.

Management continues to focus on maintaining a prudent capital structure while deploying capital towards productive assets and business expansion.

9. CASH FLOW AND WORKING CAPITAL

The Company generated a profit after tax of ^551.80 lakh during FY 2025-26. However, operating cash flow remained negative during the year, primarily reflecting an increase in working-capital deployment, particularly in trade receivables and other current assets.

The Company also incurred capital expenditure towards fixed assets during the year.

Accordingly, management recognises working-capital management and timely collection of receivables as important priorities for the next financial year.

Going forward, the Company intends to strengthen:

• Receivables monitoring and collection;

• Customer credit discipline;

• Working-capital efficiency;

• Cash-flow planning; and

• Alignment of capital expenditure with project cash generation.

The Company closed FY 2025-26 with cash and cash equivalents of approximately ^31.37 lakh.

10. GROWTH STRATEGY

Management has adopted a phased strategy for building the Companys natural resources and infrastructure-materials platform.

A. EXPANSION OF MINERAL RESOURCE BASE

The Company proposes to evaluate and pursue suitable opportunities for:

• Additional stone quarry assets in Jharkhand;

• Limestone and gypsum resources;

• Selected major mineral opportunities; and

• Strategic mineral-resource acquisitions.

Any such acquisition or development will be subject to appropriate technical, commercial, legal and regulatory due diligence.

B. EXPANSION OF CRUSHING AND PROCESSING CAPACITY

The Company intends to develop additional stone-crushing and aggregate-processing facilities in selected high- demand markets.

The objective is to increase processing capacity, improve resource utilisation and create a stronger link between quarry resources and finished infrastructure materials.

C. GEOGRAPHIC DIVERSIFICATION

Management is evaluating opportunities across Jharkhand and other strategically selected markets, including Maharashtra, with the objective of reducing geographic concentration and accessing infrastructure-led demand.

D. VALUE ADDITION

The Company intends to progressively move beyond extraction towards crushing, screening, processing and other value- added activities wherever commercially and technically viable.

11. INVESTMENT AND CAPITAL DEPLOYMENT

The investor proposal identifies capital already deployed across key projects, including:

Project	Capital Deployed
Jamtara - 100% Owned Quarry	Rs. 1.00 crore
Jamtara - Allied Quarry	Rs. 0.15 crore
Jamtara - Quarry Applications	Rs. 0.10 crore
Khunti Crusher Plant	Rs. 4.00 crore
Total	Rs. 5.25 crore

These figures are based on the Companys investor proposal and should be read as project-level capital deployment information rather than as a replacement for the audited financial statements of MERL.

Managements future capital allocation policy will prioritise productive assets, resource security, processing capacity and projects capable of generating sustainable operating cash flows.

12. OPPORTUNITIES

The principal opportunities identified by management include:

1. Sustained infrastructure and construction expenditure in India;

2. Increasing demand for aggregates and crushed stone;

3. Expansion of road, railway, logistics and industrial infrastructure;

4. Development and acquisition of additional quarry resources;

5. Expansion of crushing and processing capacity;

6. Geographic diversification;

7. Value-added mineral processing;

8. Strategic partnerships and joint ventures; and

9. Potential participation in selected mineral-resource opportunities.

The Companys investor proposal identifies resource ownership, reserve expansion, production growth, processing infrastructure, vertical integration, geographic diversification and strategic acquisitions as potential long-term value-creation drivers.

13. RISKS AND CHALLENGES

The Company operates in an industry subject to several risks and uncertainties.

REGULATORY RISK

Mining and quarrying activities are subject to various statutory approvals, environmental permissions, mining regulations and other governmental requirements. Delays or changes in regulatory requirements may affect project timelines and costs.

RESOURCE RISK

Availability, quality and commercially recoverable quantities of mineral resources may vary between locations.

MARKET RISK

Demand and prices for aggregates and construction materials are influenced by infrastructure spending, construction activity, local competition and prevailing market conditions.

OPERATIONAL RISK

Mining and crushing operations are subject to equipment availability, maintenance requirements, transportation constraints, labour availability, fuel costs and other operational factors.

WORKING CAPITAL RISK

The Companys growth may require additional working capital. Timely collection of trade receivables and prudent customer-credit management will therefore remain important.

ENVIRONMENTAL AND SOCIAL RISK

Mining operations are subject to environmental, land-use, rehabilitation and community-related considerations. The Company intends to conduct its operations in accordance with applicable laws and responsible mining practices.

Management periodically reviews these risks and intends to strengthen its systems for identification, monitoring and mitigation of business risks.

14. INTERNAL CONTROL AND GOVERNANCE

The Company has established internal control systems commensurate with the nature and scale of its operations.

The controls are designed to support:

• Safeguarding of assets;

• Accuracy and reliability of financial records;

• Prevention and detection of errors and irregularities;

• Compliance with applicable laws and regulations;

• Operational efficiency; and

• Timely financial reporting.

The Companys internal audit is carried out by KKAB & Co. LLP, Chartered Accountants. The internal audit process assists management and the Audit Committee in reviewing the adequacy and effectiveness of internal controls.

The Board and management remain committed to strengthening governance, compliance, financial discipline and transparency as the Company expands.

15. HUMAN RESOURCES

The Company recognises its employees as an important component of its long-term development.

The Company seeks to maintain a professional working environment and focus on employee capability, operational discipline, safety and compliance.

As at 31 March 2026, the Company had two employees on its rolls as disclosed in the existing MD&A.

As the Companys operational footprint expands, management expects the requirement for skilled technical, operational, managerial and compliance personnel to increase.

16. TECHNOLOGY AND OPERATIONAL EFFICIENCY

Management intends to progressively adopt modern technologies for:

• Geological and resource surveys;

• Remote sensing and GIS-based resource evaluation;

• Mine planning;

• Production monitoring;

• Crushing and screening optimisation;

• Equipment utilisation;

• Inventory and logistics management; and

• Digital compliance and reporting.

Technology adoption is expected to support improved resource utilisation, productivity, operational control and decision-making.

17. SUSTAINABILITY AND RESPONSIBLE RESOURCE DEVELOPMENT

The Company recognises that long-term value creation in the natural resources sector must be accompanied by responsible environmental and operational practices.

Management intends to focus on:

• Compliance with environmental requirements;

• Pollution-control measures;

• Efficient utilisation of natural resources;

• Reduction of operational wastage;

• Responsible mine development;

• Safety practices; and

• Constructive engagement with local stakeholders and communities.

The Companys long-term objective is to develop its resource base while maintaining appropriate environmental and regulatory standards.

18. GROWTH ROADMAP 2026-2035

Management proposes to pursue growth through a phased approach.

PHASE I - STRENGTHENING THE OPERATIONAL FOUNDATION: 2026-2028

Key priorities include:

• Optimising existing mining operations;

• Improving production efficiency;

• Increasing aggregate production;

• Enhancing crushing and processing capabilities;

• Strengthening customer and market relationships;

• Improving working-capital management; and

• Integrating operational capabilities across the Group.

PHASE II - RESOURCE AND GEOGRAPHIC EXPANSION

The Company intends to evaluate additional quarry resources, mineral opportunities and strategically located crushing facilities.

PHASE III - VALUE-ADDED PROCESSING AND SCALE

Subject to commercial viability and availability of resources, management intends to explore beneficiation, processing and other value-added opportunities that can increase realisation from mineral resources.

The objective of the phased strategy is to create a diversified resource platform rather than pursuing expansion solely through asset accumulation.

19. MANAGEMENTS OUTLOOK

Management remains cautiously optimistic about the Companys medium- and long-term prospects.

The strong increase in operating revenue and profitability during FY 2025-26 provides a positive foundation for the next phase of development. At the same time, management recognises that profitability must increasingly translate into sustainable operating cash flows and efficient utilisation of working capital.

Accordingly, the Companys immediate priorities are:

1. Strengthening existing operations;

2. Improving receivables and working-capital discipline;

3. Increasing utilisation of productive assets;

4. Expanding the mineral-resource base selectively;

5. Developing additional crushing and processing capacity;

6. Maintaining strict regulatory compliance; and

7. Deploying capital selectively towards projects with sound commercial fundamentals.

Management believes that the Companys combination of existing operating assets, mining experience, crushing capability and resource-development pipeline provides a foundation for long-term growth.

20. INVESTOR VALUE PROPOSITION

The Company seeks to create long-term value through a combination of:

Resource Ownership + Production Growth + Processing + Infrastructure Demand + Geographic Diversification + Operational Discipline

The Companys investor proposition is founded on the following strategic strengths:

• Existing mining and quarrying assets;

• Existing crushing infrastructure;

• Revenue-generating operations;

• Exposure to Indias infrastructure growth;

• Opportunity to expand the mineral-resource base;

• Potential for vertical integration;

• Geographic expansion opportunities; and

• Experienced management with sectoral and project-execution experience.

The investor proposal describes the Companys broader objective as developing a diversified natural-resources enterprise capable of participating in Indias infrastructure, industrial, manufacturing and resource-development growth.

21. CAUTIONARY STATEMENT

This Management Discussion and Analysis contains certain statements concerning the Companys objectives, expectations, projections, estimates, plans and future prospects which may constitute forward-looking statements.

Such statements are subject to risks and uncertainties and actual results may differ materially from those expressed or implied due to, among other factors, changes in economic conditions, infrastructure spending, commodity and aggregate prices, availability of mineral resources, regulatory and environmental approvals, Government policies, competition, project execution, financing conditions, working-capital requirements and other factors beyond the Companys control.

The Companys future projects, expansion plans and capacity-related statements are subject to applicable statutory approvals, technical and commercial feasibility, availability of resources and funding requirements.

Investors are advised to exercise appropriate due diligence and not to place undue reliance on forward-looking statements. The Company does not undertake any obligation to publicly update or revise such statements except as may be required under applicable laws and regulations.

For and on behalf of the Board of Directors

MAX EARTH RESOURCES LIMITED

(Formerly known as Max Alert Systems Limited) Sd/-

Mr. Amit Anand Vengilat

Managing Director

DIN:07544088

Place: Mumbai

Date: August 2026