Nibe Ordnance & Maritime Ltd Management Discussions

Your directors are pleased to present the Management Discussion and Analysis Report for the year ended on March 31, 2025. Investors are cautioned that these discussions contain certain forward-looking statements that involve risk and uncertainties including those risks which are inherent in the Companys growth and strategy. The Company undertakes no obligation to publicly update or revise any of the opinions or forward-looking statements expressed in this report consequent to new information or developments, events or otherwise.

This report covers the operations and financial performance of the Company for the year ended March 31, 2025 and forms part of the Annual Report.

Your Companys performance for the year 2024-25 has to be viewed in the context of aforesaid development.

OPERATINGRESULTS OFTHE COMPANY

During the financial year 2024-25 under review the total Income has been increased to Rs . 164.97 lacs as compared to Rs. 1 lacs in the previous year. The Companys net profit before tax is for the current financial year was Rs. 11.06 lacs as compared to Rs. 19.92 lacs loss in the previous year. The Companys net Profit after tax for current financial year was Rs. 11.30 lacs as compared to Rs. 19.90 lacs loss in the previous year.

OPPORTUNITIES

Opening of Economy and focus on export is contributing immensely in market development

The global needs are being catered with product development.

An upsurge in the unrest in the word has further may further increase the demand of the products of the Company.

THREATS

Inflation could trigger increase in consumer price inflation, which would dampen growth.

Striking a balance between demand and supply.

Unfavorable economic development and government policies

Market risk arising from changes in the value of financial instruments as a result of changes in market variables like interest rate and exchange rates.

BUSINESSAND INDUSTRY ENVIRONMENT:

The Indian defence sector continues its upward trajectory in FY25 (April/ 2024?€“March/ 2025), driven by national security imperatives and a strong policy thrust on self-reliance through initiatives such as Make in India and Make for the World. India allocated 6.21 lakh crore (approx. US$/ 74.9/ billion) for defence in the Interim Budget 2024?€“25, maintaining its position as the country with the fourth-highest defence expenditure globally, of this, 1.72 lakh crore (US$/ 20.7/ billion) was earmarked as capital outlay for modernisation of the armed forces.

In a significant boost to defence innovation, the Union Budget 2025?€“26 allocated 26,816.82 crore (US$/ 3.2 billion) to the Defence Research and Development Organisation (DRDO) a 12.4% increase over the previous year. This includes

14,923.82 crore for capital expenditure and 4,676.70 crore for revenue expenditure, aimed at accelerating indigenous defence R&D, deep-tech innovation, and private-sector collaboration.

Indias domestic defence production touched a record 1.46/ trillion (approx. US$/ 18.0/ billion) in FY25, marking a 15% rise from 1.27 trillion in FY24. Defence exports also achieved a record 23,622/ crore (US$/ 2.76/ billion), a 12% YoY increase over FY24s 21,083 crore. Public sector undertakings saw exports grow 42.9%, while the private sector contributed

15,233 crore. Over the past decade, exports have surged 34 fold?€”from 686 crore in FY14 to 23,622 crore in FY25. Today, India exports defence equipment to over 80 countries and is progressing steadily toward its goal of achieving

50,000 crore (US$/ 6/ billion) in annual defence exports by FY29.

This growth is supported by streamlined licensing, faster export approvals, dedicated defence corridors, increased R&D funding for start-ups, and an expanding innovation ecosystem that is reshaping India into a global defence manufacturing hub.

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2098485 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2117348

Risk Management:

The Company has a well-devised risk management process aimed at identifying, prioritizing, mitigating and monitoring risks. The key risks impacting its business include economic, foreign exchange, raw material, technology, funding, talent, changes in Government policies and cyber security risks. The Company has undertaken measures to mitigate these risks.

Risks:

Challenges on inflation and supply chain persists globally. These macroeconomic conditions remain critical to business growth of the Company.

Central banks globally are increasing rates to cool down inflation. This may have an adverse impact on the Companys end customers demand and subsequently impact growth.

Ensuring proper working of all our equipment is a key operational risk. Any shortfall on that front may impact the Companys ability to meet customer requirements on time.

With rising shortage of skilled labour, retaining workers remains a risk for the Company to mitigate.

Changing technology paradigm and dynamic customer needs are important to remain relevant and sustain business growth.

Given the global nature of the Companys business, any disruption of movement of goods to its customers is a key operational risk.

Opportunities:

The government has developed numerous programs to help manufacturers, such as the Production Linked Incentive (PLI) Scheme, which is a cornerstone of the governments endeavor to achieve an Atmanirbhar Bharat.

The schemes goal is to stimulate domestic defence manufacturing in strategic and emerging areas, improve the cost competitiveness of domestically-made goods, and increase local capacity and economies of scale.

Increase in defence spending by all major countries and the focus on infrastructure globally is acting as a tailwind for the Companys industrial business.

Domestic producers are given a preference in the defence sector which will provide new opportunities to the industry.

Threats

Any shift of Government policies may have a meaningful impact on our business.

Several new companies are entering the market, and existing rivals in adjacent product categories are also increasing their offering.

Internal Control Systems and their Adequacy

The Company has a robust internal control system that authorizes, records, and reports transactions to safeguard assets and protect against loss from unauthorized use or disposition. The internal controls ensure the reliability of data and financial information to maintain accountability of assets. These internal controls are supplemented by extensive internal audits, management review, and documented policies, guidelines, and procedures.

Human Resource Development

The Company believes that human capital is a critical factor of success and hence constantly strives to strengthen its work ethics, work culture and align the workforce towards the common goal. Current workforce of the Company is rightly poised to navigate through the current Volatile, Uncertain, Complex situation and to always maintain industry leading quality standards while maintaining the highest service levels.

The Company continues to focus on upgrading knowledge and skill levels among its employees through various Learning & Development, training activities to enable them to move up the ladder. The Company has well defined HR policies in place which enables it to build a strong performance-oriented culture, belongingness to work and commitment to work.

Cautionary Statement

The statements within this Management Discussion and Analysis report, articulating the Companys objectives, projections, estimates, expectations, or predictions, are considered forward-looking in compliance with applicable laws and regulations. These statements rest upon specific assumptions and anticipations of forthcoming events. However, it is crucial to acknowledge that actual results may substantially deviate from both expressed and implied expectations.

Several pivotal factors have the potential to significantly impact the Companys operations. These encompass fluctuations in finished goods prices, raw material costs and their availability, fluctuations in global and domestic demand-supply dynamics, shifts in exchange rates, alterations in Government regulations and tax structures, as well as economic developments within India and the nations with which the Company maintains business ties.

It is essential to note that the Company disclaims any responsibility concerning the forward-looking statements presented herein, as they may evolve in the future due to subsequent developments, additional information, or unforeseen events.

By Order of the Board of Directors For Nibe Ordnance and Maritime Limited (Formerly known as Anshuni Commercials Limited)

	sd/- Mahesh Panwar	sd/- Ganesh Ramesh Nibe
Place: Mumbai	Whole-time Director	Director
Dated: August 11, 2025	DIN: 06702073	DIN: 02932622
Registered Office: 202, C-Wing, Windfall, Sahar Plaza Complex, J B Nagar Marol, M. V. Road, Andheri (East), Mumbai, Maharashtra.