Max Alert Systems Ltd Management Discussions

A. INDUSTRY STRUCTURE AND DEVELOPMENT:

GLOBAL ECONOMY

In 2025, the global economy is projected to experience a broad-based slowdown, with growth estimates ranging between 2.3% and 3.3%. Several key factors are driving this deceleration:

• Rising trade barriers and protectionist policies,

• Ongoing policy uncertainty in major economies,

• Sluggish growth in key global markets.

While a global recession is not currently anticipated, the projected growth is significantly below both pre-pandemic levels and earlier forecasts. This slowdown underscores the fragile state of the global recovery and highlights the need for coordinated policy responses, investment in resilient sectors, and careful navigation of geopolitical risks.

INDIAN ECONOMY

Fiscal Year 2025 (FY25), the Indian economy is projected to grow from 6.3% to 6.5%. Indias economic outlook for 2025 and 2026 remains one of the brightest among major global economies, as highlighted by the IMF. Despite global uncertainties and downward revisions in growth forecasts for other large economies, India is set to maintain its leadership in global economic growth. Supported by strong fundamentals and strategic government initiatives, the country is well-positioned to navigate the challenges ahead. With reforms in infrastructure, innovation and financial inclusion, India continues to enhance its role as a key driver of global economic activity. In FY25, the Indian infrastructure industry is characterized by robust government investment, significant private sector participation and a focus on key areas like roads, railways, and ports. The 2025 Union Budget allocated a substantial amount to infrastructure, reflecting the governments commitment to driving economic growth through infrastructure development.

GLOBAL STONE INDUSTRY

The stone quarrying industry forms a vital segment of the broader mining and construction materials industry. It involves the extraction of various types of stones used primarily in the construction, infrastructure, and decorative stone sectors. The structure of this industry is shaped by several factors, including the types of stones extracted, the scale of operations, the types of stakeholders involved, and the degree of mechanization and regulation.

The global stone mining & quarrying market (covering crushed stone and dimension stone) was valued at approximately USD 5.94 billion in 2024 and is projected to grow to USD 8.01 billion by 2033, reflecting a CAGR of 3.4% Business Research Insights. A broader report estimates the market at USD 86.3 billion in 2024, with expectations to reach USD 136.6 billion by 2034, growing at 4.7% CAGR Market.us. A separate analysis reports a 2023 market size of USD 409 billion, projected to rise to USD 612 billion by 2033 (CAGR ~4.1%)

The stone quarrying industry is a foundational component of the construction ecosystem, characterized by localized operations, a fragmented structure, and increasing regulation. While many players remain small and regional, there is a clear trend toward modernization, compliance, and integration, especially among larger players. As infrastructure and urban development continue to grow globally, the structure of this industry is likely to shift further toward sustainable and technologically advanced operations.

INDIAN STONE INDUSTRY

The infrastructure sector remains a cornerstone of Indias economic strategy, with the government making substantial budgetary commitments to fuel long-term growth. The Union Budget 2025 significantly increased capital expenditure allocations for roads, railways, ports, and urban infrastructure.

Our Company presently owns a stone quarry in the Jamtara district of Jharkhand and plans to expand by acquiring additional quarries within the state. In line with this, the Company intends to set up stone-crushing units to supply aggregates to the commercial market and, where viable, establish captive crushing plants for large-scale infrastructure projects.

B. OPPORTUNITIES & THREATS AND OUTLOOK

OPPORTUNITIES, THREATS, AND OUTLOOK Opportunities

• India is endowed with vast reserves of industrial and minor minerals, offering significant growth potential for the mining and stone-crushing industry.

• Crushed stone is an essential raw material for high-demand sectors such as construction, roads, highways, bridges, canals, and housing projects.

• The sector is valued at an estimated annual turnover of ^5,000 crore, supported by ongoing infrastructure development, government spending, and real estate growth.

• The rural mining sector remains underexplored, presenting untapped opportunities for resource exploitation and allied services. Threats and Challenges

• Complex regulatory frameworks, delays in approvals, and limited exploration have constrained sector growth.

• Compliance with environmental, pollution control, and labour legislation increases operational costs.

• Market demand is sensitive to fluctuations in infrastructure spending and construction activities.

• Changes in government mining policies and state-specific regulations can directly impact business operations.

The Companys strategic positioning in both advisory services and mineral asset development provides a diverse revenue base. With the government prioritizing infrastructure expansion, demand for aggregates and minerals is expected to remain strong. By leveraging its operational expertise and pursuing acquisitions in both minor and major mineral segments, the Company is well- placed to achieve sustainable growth.

1. EXPANSION OF MINERAL RESOURCE BASE

• Acquire additional stone quarries in Jharkhand.

• Identify and secure limestone and gypsum blocks to support the cement industry.

• Diversify into major minerals through targeted acquisition of manganese and bauxite blocks.

2. STRENGTHENING CORE OPERATIONS

• Set up stone crushing units (aggregate plants) both for commercial supply and captive infrastructure projects.

• Implement advanced resource identification and survey technologies to enhance accuracy and efficiency.

3. REGULATORY RISK MANAGEMENT

• Establish a dedicated compliance function to proactively manage mining policies, environmental laws, and labour regulations.

• Foster transparent relationships with regulatory authorities to expedite approvals.

4. OPTIMIZING MARKET POSITION

• Target high-growth regions for infrastructure development to increase aggregate sales.

• Position captive crushing services as a value-added option for large-scale infrastructure projects.

5. SUSTAINABILITY & ENVIRONMENTAL STEWARDSHIP

• Invest in pollution control technologies and eco-friendly mining practices.

• Initiate community engagement programs in mining areas to support social responsibility and maintain good local relations.

6. TECHNOLOGY & INNOVATION

• Adopt remote sensing, GIS mapping, and digital mine management tools for improved survey and resource evaluation.

• Innovate processes for higher yield extraction and minimal waste.

7. ORGANIZATIONAL DEVELOPMENT

• Upskill workforce in emerging mining technologies and regulatory compliance.

• Build partnerships with engineering firms and infrastructure developers for joint project execution.

8. FINANCIAL SUSTAINABILITY & GROWTH

• Explore joint ventures and strategic alliances for larger projects.

• Remain financially agile to capitalize on emerging acquisition and development opportunities.

C. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

During the year 2024-25, Company was engaged only in mining and processing of Natural Stones, hence requirement of segmental reporting is not applicable.

D. FINANCIAL PERFORMANCE OF OPERATION: -

Details of the Financial performance of company of the Company is given below: -

PARTICULARS	2024-25	2023-24
Revenue from Operations	1458.72	0
Other Income	226.55	1
Total	1685.27	1
Profit Before Interest, Tax & Depreciation	327.39	(84.23)
Less: Financial cost	-	-
Less: Depreciation		-
Profit before Tax	372.39	(84.23)
Less: Current Tax	-
Less: Deferred Tax Asset / (Liability)	(2.77)	1.99
Profit after Tax	324.62	(86.23)

Cash Flow information: - An abstract of Cash Flow Statement for the year ended on March 31, 2025 is as under: -

PARTICULARS	2024-25	2023-24
Net Cash from Operating Activities	(210.29)	(638.35)
Net Cash from Investing Activity	226.54	651.28
Net Cash used in Financing Activities	105.92	(24.15)
Cash & Cash Equivalents as at 31-03-2025	122.17	(11.21)

During the year the Company has generated revenue from operations of Rs. 16,85,27,000/- (Sixteen Crore Eighty-Five Lakh & Twenty- Seven Thousand Only)(including other income) and earned net profit after tax Rs. 3,24,62,000/- (Three Crore Twenty-Four Lakh & Sixty- Two Thousand Only) as compared with the corresponding figure which was loss in the previous year of Rs. 86,23,000/- (Eighty-Six Lakh & Twenty-Three Thousand Only) respectively.

The total revenue is increased by Rs. 16,84,27,000/- (Sixteen Crore Eighty-Four Lakh & Twenty-Seven Thousand Only), as compared with last year as well as net profit after tax also increased by Rs. 4,10,85,000/- (Four Crore Ten Lakh Eighty-Five Thousand Only) as compared with last year.

E. RISKS AND CONCERN

Risk management is an increasingly important business driver and is embedded in the activities of the Company through an enterprise wide approach. Resolution Professional Company has a defined risk management strategy with senior management identifying potential risk, evolving mitigation responses and monitoring the occurrence of risk.

The Company is also in the process of implementing a forward looking and predictive risk identification and management program that will help businesses limit risk exposure, save costs and enhance value for stakeholders. The definition of risk management is also being enlarged to incorporate an array of operational, legal and financial objectives besides ensuring safety and well-being of employees in the times of natural disasters and pandemic.

The risks are identified on a regular basis, across functions and business segments and the Company strives to link each risk with mitigation step to ensure business continuity. By addressing these challenges strategically and capitalizing on emerging opportunities, the company can strengthen its market position and drive sustainable growth.

F. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company maintains robust internal control systems commensurate with the nature of its business and the size and complexity of its operations. Its a constant assessment and revision based on the new/updated standard operating procedures helps it remain up to date. These systems are designed to ensure the accuracy and completeness of accounting records and the timely preparation of reliable financial information.

The internal and operational audit is entrusted to KKAB & Co. LLP, Chartered Accountants a firm of Chartered Accountants. The major focus of the internal audit is to review and analyse the controls and business processes along with benchmarking controls with the best methodologies in the industry. The Audit Committee of the Board of Directors actively reviews the adequacy and efficiency of the internal control systems and makes suggestions to strengthen the same. The Company has a robust Management Information System, which is an integral part of the control mechanism. The Audit Committee of the Board of Directors, Statutory Auditors and the Business Heads are periodically apprised for their well-researched internal audit findings and the corrective actions taken or suggested by them. Significant audit observations and corrective actions taken and suggested by the management are presented to the Audit Committee of the Board. The Internal Audit function reports to the Chairman of the Company and Audit Committee in order to maintain its independence and objectivity.

G. 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:

There is no of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios.

H. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THERETO:

As disclosed in the notes to financial statements.

I. HUMAN RESOURCES:

The Company recognizes its human capital as a critical asset. The Company continues to invest in employee development and welfare to ensure a skilled and motivated team.

Number of persons employed: 2 employees as on 31st March 2025.

J. DISCLOSURE OF ACCOUNTING TREATMENT:

The Companys board of directors are responsible for the matters stated in section134 (5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities;

In preparing the financial statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The board of directors are also responsible for overseeing the Companys financial reporting process.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis Report describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include global and domestic supply and demand conditions affecting selling prices of finished goods, input availability and prices, changes in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.

	For Max Earth Resources Limited
	SD/-
	Mr. Amit Vengilat
Date: August 04, 2025	Managing Director
Place: Mumbai	DIN: 07544088