Maxgrow India Ltd Management Discussions

About Maxgrow India Limited

The Company is primarily engaged in metals trading with presence in ferrous and nonferrous scrap metals, industrial solutions, sustainable recycling, and value-added metal processing. The Company also focuses on large-scale infrastructure projects in the mining and recycling sectors.

Maxgrow India Limited was founded in 1994 and is listed on the Bombay Stock Exchange. The Company integrates sustainable practices into its core operations, emphasizing recycling, responsible sourcing, and circular economy principles. It successfully completed the strategic merger with PP Metallix Ltd (Seychelles) effective December 19, 2024, making it a wholly- owned subsidiary.

The Company was undergoing Corporate Insolvency Resolution Process (CIRP) as per the order passed by NCLT, Mumbai. The Resolution Plan was approved by the Honble NCLT on 06th December 2023. Pursuant to the implementation of the Resolution Plan, the Interim Monitoring Agency (IMA) was dissolved on 10th December 2024, and full management was handed over to the Resolution Applicant on 23rd December 2024. The new professional Board was reconstituted on 23rd December 2024, and the Company is now under the able leadership of the newly appointed Board of Directors.

A. Industry Structure and Development

Metal Business

The Indian metal trading and recycling industry continues to witness robust growth driven by strong demand from construction, automotive, infrastructure, and manufacturing sectors. Global emphasis on sustainability, circular economy, and responsible sourcing has created significant opportunities in ferrous and non-ferrous scrap metal trading. The Companys strategic merger with PP Metallix Ltd has enhanced its trading expertise, operational efficiency, and presence across key markets.

B. Opportunities and Threats

Opportunities

? Commissioning of the Iron Ore Conveyor Belt Project in one of the largest iron ore mines in southern India (7.0 MTPA capacity, 639 hectares, 5.5 km conveyor system inside forest area - awaiting commercial approval from the state government).

? Setting up of a new Scrap Shredding Facility in Maharashtra (1500 sqm leased land, 300 MT/8-hour shift capacity, processing End-of-Life Vehicles stainless steel and non

ferrous scrap for foundries and furnaces, meeting European environmental standards).

? Expansion into construction, automotive, and waste-management sectors through merger synergies.

? Leadership in sustainable metal solutions aligned with global ESG trends and government initiatives for circular economy and green mining.

? Strong post-CIRP financial position with robust equity base enabling fresh capital deployment and technology upgrades.

Threats

? Regulatory and environmental clearance delays for large mining and infrastructure projects.

? Volatility in global metal prices and foreign exchange fluctuations.

? Intense competition in the scrap metal trading segment.

? Residual legacy issues from the earlier CIRP period.

D. Outlook

The metal industry outlook for 2025-26 indicates strong growth potential in India, particularly in sustainable recycling and scrap processing, driven by infrastructure development, government support for circular economy, and increasing demand for eco-friendly metal solutions. Maxgrow India Limited is well-positioned to capitalise on these opportunities through its ongoing projects and the successful integration of PP Metallix Ltd. The Company expects significant revenue growth, improved profitability, and enhanced market presence in the coming years.

E. Risk, Threats and Concerns

Key risks include regulatory delays in project approvals, commodity price volatility, working- capital requirements in high-volume trading, and any residual impact from the earlier insolvency proceedings (now fully resolved). The Company maintains robust risk- management frameworks, strict compliance with all applicable laws, and focuses on operational excellence and sustainability to mitigate these risks.

F. Internal Control Systems and their Adequacy

Post-implementation of the Resolution Plan, the new Board has strengthened internal financial controls. The Company has an Internal Control System commensurate with the size, scale, and complexity of its operations. Regular reviews by the Audit Committee and statutory auditors ensure the adequacy and effectiveness of internal controls. The systems are continuously monitored and improved to align with the Companys expanded operations after the merger.

G. Discussions on Financial Performance with respect to Operational Performance

The Company has shown a remarkable turnaround post-CIRP implementation and merger. For the year ended 31 March 2025:

• Revenue from Operations: Rs2,75,771.86 lakhs

• Total Revenue: Rs2,75,771.86 lakhs

• Total Expenses: Rs2,70,741.59 lakhs

• Profit before exceptional items and tax: Rs5,030.27 lakhs

• Exceptional Items (net): Rs2,088.44 lakhs (arising from Resolution Plan adjustments - derecognition of certain liabilities and impairment of assets)

• Profit before tax: Rs2,969.12 lakhs

• Total Comprehensive Income: Rs3,577.32 lakhs (after Other Comprehensive Income of Rs608.20 lakhs)

• Earnings Per Share (Basic & Diluted): ?8.96

Key Balance Sheet Highlights as on 31 March 2025

• Total Assets: Rs2,15,825.14 lakhs

• Equity Share Capital: Rs1,997.25 lakhs

• Other Equity: Rs1,44,395.38 lakhs

• Total Equity: Rs1,46,392.63 lakhs

• Non-Current Liabilities: Rs16,986.19 lakhs

• Current Liabilities: Rs52,446.33 lakhs

The strong performance reflects successful resumption and scaling of metal trading operations, merger synergies, efficient cost management, and the positive impact of the Resolution Plan. The annexed audited financial statements clearly demonstrate the Companys improved operational performance and financial health.

H. Material Development in Human Resources / Industrial Relations

The Company prides itself on its people-centric approach. Post-CIRP, a new professional Board comprising experienced directors (Shivkumar Ramsagar Pasi, Guda Rakesh, Amarjit Kumar Shrivastav, Laxman Medudula, and Pooja Pravin Keer) has been constituted. The focus remains on continuity of business as a going concern, skill enhancement through training programs, and fostering a culture of innovation, excellence, and teamwork. Industrial relations remain cordial, and the Company continues to provide safe working conditions while nurturing talent for future growth.

I. Key Financial Ratios:

T. Cautionary Statement:

Statements in the Directors Report and the Management Discussion & Analysis Report describing the Companys objectives, expectations and/or forecasts may be forward-looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statements. Important factors that could influence the Companys operations include global and domestic demand and supply conditions affecting selling prices of metals, input availability and prices, changes in government regulations, environmental clearances, economic developments within the country, and other factors such as project approvals and industrial relations.