Mystic Electronics Ltd Management Discussions

1. INDUSTRY OVERVIEW

The electronics industry continues to play a significant role in the growth and transformation of the Indian economy . Increasing digitalisation, rapid technological advancements, rising consumer demand, expansion of electronic manufacturing, and growing adoption of smart and connected devices are creating significant opportunities across the electronics value chain.

The Government of India continues to promote domestic electronics manufacturing through various policy initiatives, incentives and programmes aimed at strengthening the domestic manufacturing ecosystem, encouraging investments, reducing import dependence and enhancing Indias position in global electronics supply chains.

The industry, however, remains exposed to factors such as fluctuations in raw material prices, foreign exchange movements, global supply-chain disruptions, technological obsolescence, intense competition and changing customer preferences. Companies operating in this sector are required to continuously invest in technology, quality, product development and operational efficiencies to remain competitive.

2. BUSINESS AND COMPANY OVERVIEW

Our Company is engaged in the business of manufacturing, trading, distribution, design and development of electronic products and components.

During the financial year under review, the Company continued to focus on strengthening its business operations, improving operational efficiency, expanding its customer base and enhancing its product and service offerings.

The Companys business strategy remains focused on sustainable growth, strengthening customer relationships, maintaining product quality, improving cost efficiency and identifying new business opportunities in the rapidly evolving electronics industry.

3. FINANCIAL PERFORMANCE

The management continues to focus on improving profitability through better capacity utilisation, cost optimisation, product diversification and improved operational efficiencies.

4. OPERATIONAL PERFORMANCE

During the year under review, the Company continued to undertake measures to improve its operational performance and strengthen its market position.

Key operational initiatives undertaken during the year included:

Improvement in manufacturing and operational efficiencies.

Strengthening of quality-control systems.

Optimisation of procurement and inventory management.

Development and introduction of new products/product variants.

Expansion and strengthening of the customer base.

Improvement in delivery and customer service capabilities.

Adoption of technology and process improvements wherever commercially viable.

The Company remains committed to maintaining consistent quality standards and delivering products that meet applicable customer and regulatory requirements.

5. BUSINESS OUTLOOK

The outlook for the Indian electronics sector remains positive, supported by increasing domestic consumption, digital transformation, growth in electronic manufacturing, technological advancement and the emergence of India as an important manufacturing and supply-chain destination.

The Company intends to leverage these opportunities through product development, customer engagement, operational improvements, technology adoption and prudent capacity expansion.

While the management remains cautiously optimistic about the medium- to long-term prospects of the business, the Company will continue to closely monitor changes in market conditions, customer demand, input costs and the competitive environment.

6. OPPORTUNITIES AND THREATS

Opportunities

The major opportunities available to the Company include:

1. Demand: Growing demand for electronic products in domestic and international markets.

2. Digitalisation: Increasing digitalisation and adoption of smart and connected devices.

3. Policies: Government initiatives supporting domestic electronics manufacturing.

4. Localization: Opportunities arising from supply-chain diversification and localisation.

5. Diversification: Product diversification and development of higher-value-added products.

6. Segments: Expansion into new geographical and customer segments.

7. Scope: Scope for technology-led improvements and operational efficiencies.

Threats

The principal risks and challenges faced by the Company include:

1. Competition: Intense competition from domestic and international players.

2. Volatility: Volatility in prices of electronic components and other raw materials.

3. Dependence: Dependence on imported components/raw materials, wherever applicable.

4. Exchange Rate: Foreign exchange fluctuations.

5. Obsolescence: Rapid technological changes and risk of product obsolescence.

6. Uncertainty: Global economic uncertainties and supply-chain disruptions.

7. Regulations: Changes in government policies, taxation and regulatory requirements.

8. Preferences: Changes in consumer preferences and market demand.

The Company seeks to mitigate these risks through appropriate business strategies, supplier diversification, inventory management, quality control, continuous monitoring of market conditions and prudent financial management.

7. RISK MANAGEMENT

The Company has established appropriate processes for identification, assessment and mitigation of material business risks. The management periodically reviews key operational, financial, strategic, compliance and market-related risks and takes appropriate measures to mitigate their potential impact. The major risks identified by the Company include market risk, operational risk, financial risk, credit risk, liquidity risk, supply-chain risk, technology risk and regulatory/compliance risk.

The Company continues to strengthen its internal processes and controls to ensure that identified risks are appropriately monitored and managed. The detailed framework relating to risk management and the major risks faced by the Company is covered separately in the Annual Report, wherever applicable.

8. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an appropriate system of internal financial controls commensurate with the size, scale and complexity of its operations. The internal control framework is designed to provide reasonable assurance regarding the effectiveness and efficiency of operations, reliability of financial reporting, safeguarding of assets and compliance with applicable laws and regulations.

The Company periodically reviews its internal control systems and processes and undertakes corrective measures wherever necessary. The Management believes that the Companys internal financial controls are adequate and operating effectively as of 31 March 2026 .

9. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Human resources continue to be an important contributor to the Companys business performance.

During the year, the Company remained focused on attracting, developing and retaining competent personnel across various functions. The Company seeks to promote a professional, performance-oriented and inclusive work environment.

Training and development initiatives are undertaken, as appropriate, to enhance employee capabilities and support the Companys business objectives. Industrial relations during the year remained cordial and satisfactory.

10. TECHNOLOGY AND INNOVATION

Technology continues to be a key enabler for the electronics industry. The Company remains focused on adopting appropriate technologies to improve product quality, operational efficiency and customer experience.

During the year, the Company undertook initiatives relating to process improvement and digitalisation, with the objective of improving competitiveness and creating sustainable long-term value.

The Company continues to evaluate emerging technologies and market trends to identify opportunities for innovation and product development.

11. QUALITY MANAGEMENT

Quality remains a key focus area for the Company. Appropriate quality-control procedures are implemented across relevant stages of procurement, production, testing and delivery. The Company continues to work towards maintaining consistency in product quality and meeting applicable customer specifications and statutory/regulatory requirements.

Continuous improvement initiatives are undertaken to minimise defects, improve process efficiency and enhance customer satisfaction.

12. ENVIRONMENT, HEALTH AND SAFETY

The Company recognises its responsibility towards environmental sustainability, occupational health and safety and responsible business practices. The Company endeavours to comply with applicable environmental, health and safety requirements and adopts appropriate measures for efficient utilisation of resources and minimisation of environmental impact.

The Company remains committed to providing a safe and healthy working environment for its employees and other stakeholders associated with its operations.

13. CAUTIONARY STATEMENT

This Management Discussion and Analysis contains statements relating to the Companys objectives, expectations, projections, estimates and other forward-looking statements. These statements are based on various assumptions and expectations concerning future events and are subject to risks and uncertainties.

Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, market demand, competition, raw material prices, foreign exchange movements, technological developments, regulatory changes, supply-chain conditions and other factors beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise, except as may be required under applicable laws and regulations.

14. ACKNOWLEDGEMENT

The Management places on record its appreciation for the continued support and confidence of its customers, shareholders, investors, suppliers, business associates, bankers, employees and other stakeholders.

The Company remains committed to pursuing sustainable growth and creating long-term value for all its stakeholders.

By Order of the Board of Directors
For Mystic Electronics Limited
Mohit Khadaria	Krishan Khadaria
Managing Director	Managing Director
DIN: 05142395	DIN: 00219096
Date: 26 th August, 2026	Date: 26 th August, 2026
Place: Mumbai	Place: Mumbai