Minal Industries Ltd Management Discussions

A. OVERALL REVIEW:

Although the COVID-19 pandemic has officially subsided, its residual effects continue to influence the Companys operational and financial performance. The prolonged disruption in supply chains, shifts in consumer behavior, and sectoral volatility have posed challenges to full recovery. The Company remains focused on strategic realignment, cost optimization, and market re-engagement initiatives to restore pre-pandemic growth levels. Management is actively pursuing new opportunities and recalibrating business models to adapt to the evolving economic landscape. The overall performance of diamond industry is badly affected due to lower realization both in export and domestic market. Disturbed power supply and skilled labour shortage in the region has worsened the position.

While the industry has seen an impressive recovery from the lows of the pandemic, the report still notes that production is not likely to reach pre-pandemic levels within the next five years, with miners and operators still cautious of potential new virus strains that could once again disrupt production and logistics.

One of the most growing sub-sector is that of lab-grown diamonds, emerging as a more affordable and tech-driven alternative that also offers the possibility of creating diamonds using solely renewable energy. These increasingly popular gems are ‘grown inside a lab using technology to replicate the natural diamond development process. For the first time in several years, there was no shortage in diamond financing. With more liquidity, midstream players moved to cash sales and decreased their reliance on bank loans, reinvesting their profits into the business.

The Company has a well-established framework of internal controls in all areas of its operations, including suitable monitoring procedures and competent and qualified personnel. In addition to statutory audit, the financial controls of the Company at various locations are reviewed by the Internal Auditors, who report their findings to the Audit Committee of the Board. The Audit Committee is headed by an Independent Director and this ensures independence of function and transparency of the process of supervision and oversight. The Committee meets to review the progress of the internal audit initiatives, significant audit observations and planning and implementation of follow up action required. The Company conducts its business with integrity and high standard of ethical behavior and in compliance with the laws and regulations that govern its business.

Your Company considers its human resources as its most valuable assets, among all other assets of the Company. It has been the policy of the Company to actuate the talent by providing opportunities to develop themselves within the organization. The Company continued to have maintained very cordial & harmonious relations with its employees.

Statements in this report on Management Discussion and Analysis, describing the Companys objectives, projections, estimates, expectations or predictions may be forward looking, considering the applicable laws and regulations. These statements are based on certain assumptions and expectation of future events. Actual results could, however, differ materially from those expressed or implied. Important factors that could make a difference to the

Companys operations include global and domestic demand-supply conditions, finished goods prices, raw materials costs and availability, fluctuations in exchange rates, changes in Government regulations and tax structure, economic developments within India and the countries with which the Company has business contacts.

The Company assumes no responsibility in respect of the forward-looking statements herein, which may undergo changes in future on the basis of subsequent developments, information or events.