Microse India Ltd Management Discussions

Industry Structure and Developments:

Global economic overview

Following an unprecedented series of shocks in the preceding years, global growth was stable yet underwhelming through 2024. However, the landscape has changed as governments around the world reorder policy priorities. A series of new tariff measures by the United States and countermeasures by its trading partners have been announced and implemented, ending up in near-universal United States tariffs on April 2, 2025 and bringing effective tariff rates to levels not seen in a century. This on its own is a major negative shock to growth. The unpredictability with which these measures have been unfolding also has a negative impact on global economic activity and the outlook.

The IMF projects global GDP growth at 2.8% in CY 2025 and 3% in CY 2026, supported by easing inflation and sustained demand in emerging markets. Intensifying downside risks dominate the outlook. Ratcheting up a trade war, along with even more elevated trade policy uncertainty, could further reduce near- and long-term growth, erode policy buffers and weaken resilience to future shocks.

(Source: IMF World Economic Outlook April 2025)

India recorded a GDP growth of 6.5% in FY2025, lower than the 8.2% growth achieved in FY2024, according to IMF estimates. The nation stands out as a bright spot amid global economic challenges and geopolitical upheavals. Growth is being driven by rapid infrastructure development, a strong push for manufacturing, supportive policy reforms, and resilient consumer confidence. Looking ahead, the Indian economy is expected to grow at 6.6% in FY2026 and 6.7% in FY2027, according to forecasts by the United Nations (UN). Continued investments in infrastructure development and digital transformation, favorable monsoon, higher rural consumption, and easing inflation will accelerate growth.

The Union Budget 2025-26 reinforces Indias commitment to sustainable development, aligning with the Viksit Bharat@2047 vision. Infrastructure expansion remains a priority, with an increased allocation of C11.2 lakh crore, up from C11.1 lakh crore in the previous year, propelling the Make in India initiative. With a strong focus on tax relief, fiscal consolidation, and strategic sectoral investments, the budget aims to stimulate growth, boost consumption, and strengthen social welfare.

(Source: Union Budget 2025-26 Highlights)

As compared to the previous reporting period, there is decrease in the income of the company in the current reporting period.

The Company, with superior methodologies and improved process and systems, will focus on positioning the revenues and lead towards high growth path in future.

The Company is only operating in one segment.

Some economists are of the view that the Indian Economy on the whole is doing fine, but there are risks like slowing FDI, deteriorating asset quality of banks, and rising risks of bad loans which can have effect on the growth of the economy.

There are several opportunities for the sector and the outlook for the coming months will continue to remain positive.

Your Company ensures that appropriate risk management limits, control mechanisms and mitigation strategies are in place through its efficient and effective Internal Control System and the same completely corresponds to its size, scale and complexity of operations. The Company strives to put several checks and balances in place to ensure that confidentiality is maintained. Effective procedures and mechanisms are rolled out by a full-fledge Internal Audit System to ensure that the interest of the Company is safeguarded at all times. In addition to this, the Risk Assessment policy of the organization is reviewed on a quarterly basis by the Audit Committee / Board of Directors of your Company.

Total income achieved during the year under review is Rs. 136.42 Lakhs as against Rs. 22.76 Lakhs in the previous year. After all Expenses, Depreciation and Taxation, the net profit of the Company is Rs. 95.84 Lakhs as against the loss of Rs. 38.20 Lakhs in the previous year.

The net worth achieved during the year under review is Rs. 207.03 Lakhs as against Rs. 111.19 Lakhs in the previous year.

Your Company endeavours to perform and attempt to deliver the best at all times. However, the statements made in this report describing the Companys objectives, expectations or predictions shall be read in conjunction with the government policies as issued and amended from time to time, the micro as well as macroeconomic scenario prevailing at that time, global developments and such other incidental factors that may extend beyond the control of the Company and Management.

Keeping this in view, the actual results may materially vary from those expressed in the statement.

The Company continuously strives to attract and retain the best talent from the local markets, clearly define their roles and responsibilities, create an inspiring and rewarding work environment, imparting training to them and creating development opportunities for increasing employee knowledge and efficiency to make them future ready and create career opportunities within.

The Company is committed in ensuring that the work environment at all its locations is conducive to fair, safe and harmonious relations between employees. Company strongly believes in maintaining the dignity of all its employees, irrespective of their gender or seniority. Discrimination and harassment of any type are strictly prohibited.