Mid India Industries Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT

The Global economy during the Financial Year 2024-25 reflected a nuanced interplay of challenges and opportunities. Persistent inflationary pressures, ongoing geopolitical tensions, and lingering disruptions in global supply chains stemming from conflicts and post-pandemic recovery efforts significantly influenced economic outcomes. Despite these headwinds, central banks across advanced economies exhibited commendable resilience in inflation containment, while emerging markets displayed robust growth momentum.

According to the International Monetary Fund (IMF), the global economy is projected to grow at 3.3% in both 2025 and 2026, consistent with the subdued potential growth observed since the pandemic. Advanced economies are expected to maintain steady growth of 1.8%, while emerging and developing economies are projected to moderate slightly to around 4.2%. The long-term global growth forecast remains around 3.0%, reflecting a cautious economic outlook. Global inflation is expected to decline to 4.2% in 2025 and further to 3.5% in 2026, with advanced economies reaching inflation targets earlier than their emerging counterparts.

Indian economy

India has continued to demonstrate resilience amid global uncertainties, aided by prudent monetary policies and structural reforms initiated by the government. As per IMF projections, Indias GDP is expected to grow at 7.0% in FY 2024-25, driven by strong domestic demand, rising investments, and favorable demographics. Growth is anticipated to moderate to 6.5% in FY 2025-26 as the economy stabilizes on its medium- term trajectory.

India is poised to become the worlds fourth-largest economy by the end of FY 2025-26, surpassing Japan—a testament to its strong policy framework and reform-oriented approach. The governments continued emphasis on infrastructure, digitization, and ease of doing business is expected to sustain growth and further enhance Indias global standing.

The governments continued focus on structural reforms, infrastructure development, and fostering a conducive business environment is expected to sustain economic growth and enhance Indias position in the global economic landscape.

OPPORTUNITIES AND THREATS

The Company is operating in trading activities in plant and machineries. Trading business is becoming more and more competitive and the margins in this continue to be under pressure. Further there is a good opportunity to import and export the plant and machineries required for industry and others. The Board feels this business is high growth area. The long term prospects for Indian economy remains bright owing to the growth of internal consumption driven by the countrys demographic dividend, rapid urbanization, growth of manufacturing and infrastructure development. The overall business sentiments in the country have turned positive after the stable government at the centre. An intensifying demand for real estate, especially in the affordable housing segment, provides a significant opportunity for developers. This has been driven by growing aspirational population, higher disposable incomes and a revival in the employment sector. Meeting this demand can lead to substantial returns on investment and market expansion. Your Company continues to achieve this by focusing on Trading &Real Estate Division.

The Board remains optimistic about this segments long-term potential. Indias demographic dividend, rising urbanization, infrastructure push, and favorable government reforms continue to drive internal consumption and industrial growth.

Government initiatives and policy reforms Government initiatives and policy reforms, such as the Pradhan Mantri Awas Yojana (PMAY), the Real Estate Regulatory Authority (RERA) and tax incentives, create a favourable environment for real estate development. Developers who align their projects with these initiatives can benefit from financial incentives, increased customer trust and a supportive regulatory framework

SEGMENT

During the financial year, your Company operated in a single segment, namely the Trading Division, focused on trading heavy plant machinery and spare parts.

During the financial year 2024-25, Company has generated total income from trading of heavy plant machinery and spare parts and made total income of INR. 632.17 lakhs for the financial year ended March 31, 2025 as against INR. 689.16 lakhs in the previous year and incurred net loss before comprehensive income of INR. 11.79 lakhs in comparison to previous year incurred net loss of INR. 42.44 lakhs.

INDUSTRY OUTLOOK

India has emerged as the fifth-largest economy globally and is rapidly progressing toward the third position. Government initiatives like Make in India, coupled with a favorable policy environment, have instilled confidence among global investors.

As Indian economy continues its strong growth trajectory, the real estate sector is poised to deliver a healthy performance across all segments. The Company intends to scale-up its new product offerings, while focusing on developing margin accretive products with existing land bank.

RISKS AND CONCERNS

Risk Management plays a key role in business strategy and planning discussions. The Company has implemented a comprehensive risk management framework to identify, understand and manage risks associated with the business. The Companys risk management framework helps in conducting business in a well-controlled environment. It has in place a mechanism to identify, assess, monitor and mitigate various risks associated with the business.

Strict internal processes and controls enable the Company to effectively manage the business risks it encounters on daily basis. Risk Management Framework of the company ensures achievement of its strategic objectives; the framework is supported by risk processes, identification, assessment, response, action, mitigation and control. Risk Management framework of the company proactively addresses risks and seizes opportunities so as to gain competitive advantage, and also protects and creates value for the stakeholders.

As the real estate industry continues to evolve, the industry faces a multitude of threats and challenges. Rapid technological advancements, changing market trends, and regulatory complexities pose constant hurdles. Moreover, competition intensifies as new players enter the market. Navigating these obstacles requires strategic planning, innovation, and adaptability to ensure continued success in this dynamic landscape.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The companys internal control/supervisory system is established to ensure that the board and management are able to achieve their business objectives in a prudent manner, safeguarding the interest of companys shareholders and other stakeholders whilst minimizing the key risk such as fraud, misleading financial statements, breach of legal and contractual obligations, unauthorized business activities.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Financial and Operational performance forms part of the Annual Report and is presented elsewhere in the report.

HUMAN RESOURCES MANAGEMENT

The company is focusing the business of trading activities and therefore no substantial employment required. The company is committed to creating a professional culture to nurture and enable people to grow in their careers alongside Companys success. The company constantly strives to strengthen its manpower in alignment with the business needs and continue to engage them through various initiatives in the realm of learning & development opportunities, reward & recognition, employee engagement activities and career growth. As on 31^st March, 2025, Company had 3 employees.

INDUSTRIAL RELATION

Your Company enjoyed during the year under review cordial relationship at all levels.

DETAILS OF SIGNIFICANT CHANGES IN THE KEY RATIOS AND RETURN ON NET WORTH

As per the amendment made under Schedule V to the Listing Regulations read with Regulation 34(3) of the Listing Regulations, details key financial ratios and any changes in return on net worth of the Company are given below:

Reason for change of 25% or more in Financial Ratios:

Inventory Turnover: Inventory levels have increased significantly, resulting in a decrease in the inventory turnover ratio.

Current Ratio: A decline in trade receivables has led to a decrease in the current ratio.

Operating Profit Margin: The reduction in expenses has led to an increase in the operating profit margin ratio.

DETAILS OF CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR:

There is Change of -2.73% in Return of Net Worth as compared to previous Financial Year Due to Accumulated Losses as a result of which Net worth of the Company has become Negative.

CAUTIONARY STATEMENT

Statements in this Management Discussion & Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. The company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent developments, information or events.

There are various factors like conditions in global financial markets, regulatory intervention and other acts of violence which may lead to situations unpredictable for any one Important factors that could make a difference to the Companys operations include economic developments in the country and improvement in the state of capital markets, changes in the Government regulations, tax laws and other status and other incidental factors.