Pipan Oils Ltd Management Discussions

ECONOMIC OVERVIEW

The global economy continued to operate in an environment marked by geopolitical uncertainties, changing trade dynamics, fluctuations in commodity prices and evolving interest rate conditions during FY 2025-26. The energy sector remained an important component of global economic activity, with crude oil and natural gas prices continuing to be influenced by global demand, supply conditions, geopolitical developments and production policies of major producing countries.

The global energy industry is also undergoing significant structural changes, with increasing focus on energy security, efficient resource utilisation, technological advancement and diversification of energy sources. These developments are expected to create both opportunities and challenges for companies seeking to participate in the energy and upstream oil and gas sectors.

The Indian economy continued to demonstrate resilience during FY 2025-26, supported by domestic consumption, infrastructure development, industrial activity and continued investment in the countrys energy infrastructure. Energy demand remained an important driver of economic activity, supported by Indias expanding industrial base, urbanisation and increasing transportation and infrastructure requirements.

India continues to focus on strengthening domestic energy security, increasing exploration and production activities and reducing dependence on imported energy resources. The Governments continued policy focus on exploration, production and development of domestic hydrocarbon resources is expected to provide opportunities for companies operating or proposing to operate in the upstream oil and gas sector.

The Indian oil and gas sector continues to play a critical role in meeting the countrys energy requirements. Increasing energy consumption, industrialisation, infrastructure development and urbanisation are expected to support long-term demand for hydrocarbons.

The upstream oil and gas segment, which includes exploration, development and production of crude oil and natural gas, presents opportunities arising from Indias objective of enhancing domestic production and improving energy security. Technological advancement, improved exploration techniques, private-sector participation and development of marginal and smaller oil and gas fields are expected to support the growth of the sector.

However, the sector remains exposed to fluctuations in crude oil and natural gas prices, regulatory requirements, exploration and development risks, capital requirements, geological uncertainties and changes in global energy markets.

During the year under review, the Company undertook significant strategic initiatives aimed at repositioning and diversifying its business activities. The Company, formerly known as Omansh Enterprises Limited, changed its name to Pipan Oils Limited during FY 2025-26. The change in name was approved by the Members at the Extra-Ordinary General Meeting held on 12th January 2026, and the change was subsequently approved by the Ministry of Corporate Affairs on 27th April 2026.

The Company has also taken steps towards entering the upstream oil and gas sector. Pursuant to the strategic initiatives undertaken by the Company, it entered into a Farm-In Agreement with a consortium comprising M/s Ramayna Ispat Private Limited, M/s Duggar Fiber Private Limited, M/s BDN Enterprises Private Limited and M/s Mahendra Infratech Private Limited in relation to the Dipling Cluster - DSF - 2016 Block. The proposed arrangement provides for the Company acquiring a participating interest in the said block, subject to the terms and conditions of the agreement and applicable regulatory approvals.

The Company also entered into a Deed of Assignment with M/s Tvisha Corporate Advisors LLP, effective from 31st March 2026, pursuant to which certain receivables and payables were assigned to the assignee. The Company has stated that the transaction is financial and strategic in nature and does not impact the management or control of the Company.

These initiatives represent the Companys efforts towards establishing a new business direction and creating opportunities for sustainable growth over the medium to long term.

The Company believes that the following factors may provide opportunities for future growth:

• Increasing energy demand in India driven by economic growth, industrialisation and urbanisation.
• Government initiatives aimed at increasing domestic exploration and production of oil and natural gas.
• Greater emphasis on energy security and reduction of dependence on imported hydrocarbons.
• Opportunities arising from participation in exploration and production blocks and development of domestic hydrocarbon resources.
• Technological developments in exploration, drilling and production activities.
• Potential for strategic partnerships and collaborations with experienced industry participants.
• Diversification of the Companys business activities into the upstream oil and gas sector.
• Long-term growth potential arising from Indias increasing energy requirements.

The Companys proposed business activities in the oil and gas sector are subject to various risks and uncertainties, including:

• Volatility in crude oil and natural gas prices.
• Geological and exploration risks associated with hydrocarbon exploration and production.
• Significant capital requirements for exploration, development and production activities.
• Regulatory and environmental compliance requirements applicable to the oil and gas sector.
• Changes in Government policies, taxation, regulations and licensing requirements.
• Geopolitical developments affecting global energy markets.

• Competition from established domestic and international players.
• Risks associated with obtaining necessary regulatory approvals and achieving commercial production within the expected timelines.
• Availability of technical expertise and experienced personnel required for undertaking upstream oil and gas activities.

During the year under review, the Company continued its transition towards a new business strategy. The Companys operations remained at a preliminary/transitionary stage and it did not record revenue from operations during FY 2025-26. As per the audited financial results for the year ended 31st March 2026, the Company reported a net loss of ?206.76 Lakhs for the year. [Note: printed as "?" in source; should be ? — marked as printed]

The financial performance during the year reflects the transitional phase of the Company and the costs incurred in connection with its existing operations and strategic initiatives. The Management remains focused on implementing the Companys revised business strategy and evaluating opportunities in the upstream oil and gas sector.

The Management believes that the strategic initiatives undertaken during the year, together with the proposed diversification of business activities, may provide a foundation for future growth. However, the actual performance of the Company will depend upon successful implementation of its business plans, regulatory approvals, market conditions and the commencement of revenue-generating activities.

The Companys outlook is focused on establishing and developing its presence in the upstream oil and gas sector. The Management intends to leverage opportunities arising from Indias growing energy requirements and the Governments focus on increasing domestic hydrocarbon exploration and production.

The Company will continue to evaluate strategic opportunities, partnerships and investments that are aligned with its long-term objectives, while maintaining due consideration to regulatory, financial, operational and market risks.

The Management remains committed to prudent financial management, regulatory compliance and efficient utilisation of resources while pursuing the Companys long-term growth objectives.