Mittal Life Style Ltd Management Discussions

A. BUSINESS HIGHLIGHTS:

During the financial year under review, the Company continued its focus on the trading of fabrics and textile products, catering to a diversified customer base across various segments of the textile industry. The Company maintained its emphasis on efficient procurement, inventory management, customer relationship management and timely delivery of quality products.

A significant development during the year was the incorporation/acquisition of a Wholly Owned Subsidiary with effect from June 02, 2025, engaged in the business of leasing industrial cranes and related equipment. This strategic diversification is expected to provide additional growth opportunities and strengthen the overall business portfolio of the Company.

Please refer to the Financial Statements for detailed information relating to the financial performance, operational performance and key financial ratios of the Company.

The Companys principal business segment continues to be trading of fabrics and textile products. The Company has developed strong sourcing capabilities and maintains relationships with manufacturers, distributors and customers across various regions. Continuous efforts are being made to expand the customer base, improve operational efficiencies and enhance product offerings.

The Company, through its Wholly Owned Subsidiary acquired on June 02, 2025, has entered into the industrial crane leasing business. The subsidiary is engaged in providing crane rental and allied services to infrastructure, construction, engineering and industrial sectors. This business segment is expected to contribute to revenue diversification and long-term value creation.

The Indian textile sector continues to be one of the largest contributors to employment and economic activity in the country. Increasing domestic consumption, growth in organized retail, rising disposable incomes and favourable government initiatives are expected to support the long-term growth of the textile and fabric trading industry. Efficient supply chain management, product quality and customer service remain critical success factors in this segment.

The industrial equipment leasing industry, particularly crane rental services, is witnessing growth driven by increased investments in infrastructure, construction, manufacturing and logistics sectors. Leasing enables customers to optimize capital expenditure while ensuring access to specialized equipment. The management believes that the long-term prospects of the crane leasing industry remain positive owing to continued infrastructure development and industrial expansion across the country.

• Established presence and experience in the textile and fabric trading business.

• Strong relationships with suppliers and customers, enabling efficient sourcing and distribution.

• Diversified customer base reducing dependence on any single customer or market segment.

• Strategic diversification through the wholly owned subsidiary engaged in industrial crane leasing.

• Experienced management team with industry knowledge and operational expertise.

• Growing demand for textile products driven by increasing consumption and retail expansion.

• Expansion into new geographical markets and customer segments.

• Opportunities for value-added textile products and specialized fabric categories.

• Increasing infrastructure and construction activities creating demand for crane leasing services.

• Cross-sector diversification reducing business concentration risks.

• Intense competition in the textile trading industry affecting margins and market share.

• Volatility in raw material prices impacting product pricing and customer demand.

• Economic slowdown affecting consumption patterns and industrial activity.

• Regulatory changes, taxation policies and compliance requirements.

• Operational and maintenance risks associated with the crane leasing business.

The Companys fabric trading business is exposed to market risks including fluctuations in demand, changes in consumer preferences, competitive pricing pressures and supply chain disruptions. Variations in textile industry conditions may impact business performance.

The crane leasing business is exposed to risks relating to equipment utilization, maintenance costs, project delays, safety requirements and changing industry demand. The Company and its subsidiary continuously monitor these risks and undertake appropriate measures to mitigate their impact through prudent business practices, effective internal controls and periodic review mechanisms.

The Company has established adequate internal control systems commensurate with its size, scale and nature of operations. These systems are designed to ensure safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

The internal control framework also ensures compliance with applicable laws, regulations and internal policies. The Audit Committee regularly reviews the effectiveness of the internal control systems and recommends necessary improvements to strengthen the control environment across the Company and its subsidiary.

The Company recognizes that its employees are among its most valuable assets and play a vital role in achieving organizational objectives. The Company remains committed to creating a productive work environment, fostering employee development and encouraging a culture of professionalism, integrity and continuous learning.

The Company continues to focus on strengthening its human resource practices and enhancing employee engagement, skill development and performance management systems to support future growth and operational excellence.

Statement made in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations may be “Forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand supply and price conditions in the markets in which the Company operates changes in the government regulations, tax laws & other statutes and other incidental factors.