Mipco Seamless Rings Gujarat Ltd Management Discussions

[Pursuant to Regulation 34 read with Para B of Schedule V of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015]

This is the Management Discussion and Analysis Report of Mipco Seamless Rings (Gujarat) Limited (‘the Company) for the financial year ended 31st March, 2026.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company was earlier engaged in the business of media, communication and related IT-enabled services in India and abroad. Owing to limited prospects for sustainable growth in this segment, the Board of Directors, after due assessment of its long-term viability, decided to actively explore alternative avenues to enhance shareholder value. Accordingly, the Board of Directors decided to enter into the power and renewable energy sector and trading/dealing in iron, steel and other metals. The said sector continues to witness significant expansion in India and globally, driven by policy support, technological advancement, and rising demand.

The Company is now proposing to further change its Object Clause to include a wider scope of ferrous and non-ferrous metal and iron and steel products.

OPPORTUNITIES AND THREATS

The Companys trading business in iron and steel offers an accessible near-term growth opportunity, given continuing demand from the infrastructure, construction, and manufacturing sectors and is further proposing to expand its objects to include the plastic goods and materials business, along with a wider scope of ferrous and non-ferrous metal and iron and steel products. These initiatives are aimed at diversifying the Companys revenue base and building long-term value for its stakeholders.

At the same time, the Companys operations remain exposed to certain threats, including volatility in raw material and commodity prices, dependence on working capital, and competition from established and unorganised players in the trade.

SEGMENT-WISE OR PRODUCT WISE PERFORMANCE

During the year under review, the Company operated in a single segment, being trading of iron and iron goods, and recorded revenue from operations of Rs. 431.12 Lakhs, as against NIL revenue in the previous financial year.

OUTLOOK

Having recommenced commercial operations through trading in iron and iron goods during the year, the Company intends to consolidate and grow this business further in the near term. The proposed expansion of the Object Clause to include the plastic goods and materials business, along with a wider scope of ferrous and non-ferrous metal and iron and steel products, is expected to broaden the Companys revenue base and support its long-term growth and diversification objectives.

RISKS AND CONCERNS

The Companys operations remain exposed to risks arising from fluctuations in commodity prices, dependence on working capital and credit terms, and competition from established and unorganised players in the iron and steel trade.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains internal control systems commensurate with the size and nature of its operations, covering procurement of iron and steel goods, inventory management, sales, and related accounting and reporting functions. These systems are designed to ensure the accuracy and reliability of financial records, safeguard the Companys assets, and ensure compliance with applicable laws and internal policies. The Board of Directors and the Audit Committee periodically review the adequacy and effectiveness of these controls.

FINANCIAL PERFORMANCE VIS-A-VIS OPERATIONAL PERFORMANCE

During the financial year ended 31st March 2026, the Company recorded revenue from operations of Rs. 431.12 Lakhs and total expenses of Rs. 420.73 Lakhs, resulting in a Profit before Tax of Rs. 10.39 Lakhs. After providing for current tax of Rs. 1.63 Lakhs, the Company reported a Profit after Tax of Rs. 8.76 Lakhs for the year, with Basic and Diluted Earnings per Share of 0.24. This represents a turnaround from the previous financial year, in which the Company had recorded NIL operational revenue and reflects the commencement of commercial operations pursuant to its new line of business.

HUMAN RESOURCES

Human resources are the principal drivers of change and have always been one of the most valued stakeholders of the Company. The Company aims to develop the potential of every individual associated with the Company as a part of its business goal.

DETAIL OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS

S. No.	Ratios	Ratios as on 31.03.2026	Ratios as on 31.03.2025	Change (in %)	Reason for Change in ratios above 25%
1.	Current Ratio	1.39	5.82	(76.16)	Due to increase in Inventories
2.	Debt Service Coverage Ratio	0.06	(0.07)	(188.81)	Due to increase in Revenue
3.	Return on Equity Ratio	7.32%	(8.14)%	(189.91)	Due to increase in Revenue
4.	Inventory Turnover Ratio	86.92	-	86.92	Due to increase in Inventories
5.	Net Capital Turnover Ratio	(41.34)	(1.43)	2788.34	Due to increase in Turnover
6.	Return on Capital Employed	25.62%	(68.62)%	(137.33)	Due to Increase in revenue

CAUTIONARY STATEMENT

The statement and views expressed by the management in the above said report are on the basis of best judgment but the actual results might differ from whatever stated in the report. The Company takes no responsibility for any consequence of decisions made based on such statements and holds no obligation to update these in future. Readers are cautioned not to place undue reliance on these forward-looking statements.

On behalf of the Board of Directors

For MIPCO SEAMLESS RINGS (GUJARAT) LIMITED

Sd/-

VIKKY JAIN

Whole-Time Director

DIN: 11022293

Sd/-

NIKITHA SARDA

Independent Director

DIN: 08633556

Place: Hyderabad

Date: 03rd September, 2026