Raconteur Global Resources Ltd Management Discussions

OVERVIEW:

This report is an integral part of the Boards Report and covers management perspective on economic environment, industrial scenario, business performance, opportunities, threats, risks & concern, internal control etc. during the Financial Year 2025-2026.

This section should be read in conjunction with the Companys Financial Statements, including the accompanying schedules, notes, and other relevant information provided elsewhere in this Annual Report. Further, in the preparation of financial statements no separate Accounting Treatment has been followed other than that of prescribed in the Accounting Standards.

INDUSTRY STRUCTURE AND DEVELOPMENT:

The Companys business model encompasses mining, quarrying, extraction, processing, trading, import and export of minerals, natural stones allied building materials and development of real estate and infrastructural facilities. The industry generally comprises exploration companies, mining lease holders, quarry operators, mineral processors, exporters, real estate and infrastructure companies and construction material distributors.

The organised segment has increasingly adopted mechanised mining, digital mine planning, environmental management systems and advanced processing technologies to improve productivity, ensure regulatory compliance and enhance product quality. Simultaneously, increasing emphasis is being placed on sustainable mining, mine reclamation, water conservation, biodiversity management, sustainable development and occupational health and safety in accordance with evolving environmental regulations.

OUTLOOK

The medium to long-term outlook for the Indian mining and natural stone industry remains positive, supported by increasing infrastructure expenditure, urbanisation, industrial growth and expanding manufacturing activities. Continued government focus on capital expenditure and logistics development is expected to sustain demand for minerals and construction materials over the coming years.

The Companys long-term strategy is to strengthen its position across the mining and mineral value chain through operational excellence, technology adoption, efficient resource management and customer-centric product offerings. The Company also intends to explore new business opportunities in domestic as well as international markets while maintaining high standards of quality, safety and environmental compliance.

Management believes that responsible mining practices, efficient processing capabilities and continuous improvement initiatives and adherence to applicable statutory requirements will enable the company to achieve sustainable growth and create long term value for stakeholders.

(Source: Economic Survey 2025-26)

INDIAN ECONOMIC OVERVIEW

India continued to remain one of the fastest growing major economies during FY 2025-26. Strong domestic consumption, public capital expenditure, infrastructure investments, manufacturing expansion and resilient services sector contributed to sustained economic growth. Continued emphasis on logistics, industrial corridors, housing, highways, railways and urban infrastructure is expected to generate significant demand for construction materials including aggregates, natural stones and processed mineral products.

The Government of Indias capital outlay has increased by nearly 89 per cent, from 5.92 lakh crore in FY22 to a budgeted allocation of 11.21 lakh crore for FY26, recognising the strong multiplier effects that infrastructure generates on the economy. Public expenditure on infrastructure has a high multiplier effect, estimated by studies to be around 2.5 to 3.5 times the GDP over the medium term. This means, for every rupee spent by the government in creating infrastructure, GDP gains worth 2.5-3.5 accrue. The scale and consistency of this investment momentum have positioned infrastructure as a cornerstone of Indias growth engine.

Government initiatives such as PM Gati Shakti, National Infrastructure Pipeline, Smart Cities, industrial corridors and affordable housing programmes continue to provide long-term opportunities for companies operating in mining, quarrying and building materials. Increasing investments in transportation infrastructure, renewable energy and manufacturing are expected to support demand for minerals over the coming years.

The Union Budget FY27 has created strong growth opportunities for Indias metals and mining sector by focusing on boosting domestic production, strengthening supply chains, and enhancing value addition. Key measures such as setting up dedicated mineral corridors in resource-rich states and providing import duty exemptions for capital goods used in processing critical minerals are expected to accelerate mining and processing activities. These initiatives aim to reduce import dependence, support export-oriented manufacturing, and promote capacity expansion across the value chain. Experts note that this push will not only generate large-scale employment but also create downstream opportunities in heavy engineering and allied industries, positioning the sector as a key driver of industrial growth and Indias journey toward self-reliance.

BUSINESS OVERVIEW:

Raconteur Global Resources Limited is in the process of establishing its presence in the mining and natural resources sector. Considering the capital-intensive nature of the industry, the Company is currently focused on strengthening its financial position through appropriate fund-raising initiatives to support future investments in mining, mineral processing, trading and other related business opportunities in line with its objects. During the year under review, the Company continued to evaluate potential business opportunities, strategic partnerships and investment avenues that would enable it to build a sustainable and scalable business model.

OPPORTUNITIES

The management is looking for opportunities in various sectors:

1. Infrastructure and Project Supply Management

The Company plans to expand into the organised supply of crushed stone and construction grade minerals for large scale infrastructure projects. This can be achieved by entering into long term supply contracts with Construction Contractors, Infrastructure Developers, ensuring steady demand visibility and improved capacity utilization.

2. Ready to use Construction Material

A significant opportunity exists in moving up the value chain by entering the ready-to-use construction materials segment. The Company can establish facilities for production of ready-mix aggregates, pre-sized construction stone, calibrated sand and engineered fill materials. This transition enables higher margins compared to raw mineral trading and reduces dependence on volatile commodity pricing.

3. Contract based Mining

The Company may also explore contract mining services, including overburden removal, drilling, blasting, excavation, material handling and transportation for other mining lease holders. This model reduces capital intensity while generating stable service-based revenue linked to mining output.

4. Digital Mining and Resource Optimization Services (Future Expansion Area)

The Company can adopt and potentially offer digital mining solutions such as GIS-based quarry mapping, drone-based surveying, resource estimation, automated inventory tracking and logistics optimization. Over time, this capability may be commercialized as a service offering to smaller mining operators.

(Source: Ministry of Mines-Digital India Mining Initiatives, IBM Technology Adoption Guidelines, PM Gati Shakti Programme-Ministry of Commerce and Industry, Indian Construction Industry Overview-IBEF)

THREATS

The industry remains exposed to fluctuations in commodity pricing arising from changes in domestic and international demand, global economic conditions, geopolitical developments and supply-demand imbalances. Significant volatility in prices may affect profitability and investment decisions within the sector.

Rising fuel prices, freight costs, electricity tariffs and labour expenses continue to exert pressure on operating costs. The Company is working towards efficient cost management, operational optimisation and technological improvements remain essential for maintaining competitiveness.

RISKS AND CONCERNS

The industry is inherently exposed to regulatory, operational, environmental and market-related risks. The Companys operations are subject to multiple statutory approvals including mining leases, environmental clearances, pollution control consents and other regulatory compliances.

Any delay in obtaining or renewal of such approvals may adversely impact operational timelines and production continuity. Delays combined with inflation further erode project margins.

Lack of skilled manpower and technical execution capability, particularly in Tier II and Tier III Contractors which leads to over-dependence on a few large players leading to bottlenecks

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has established an adequate system of internal financial controls and internal control mechanisms commensurate with the size, nature and complexity of its business operations. The internal control framework includes well defined approval mechanisms, delegation of authority, standard operating procedures and periodic internal controls to ensure compliance with applicable laws and internal policies.

The Company has implemented well-defined policies, standard operating procedures (SOPs) and approval mechanisms for all key business processes, including procurement, mining and quarry operations, inventory management, processing activities, statutory compliances and capital expenditure. These controls ensure that all transactions are appropriately authorised, adequately documented and executed in accordance with approved policies while maintaining operational efficiency and accountability.

FINANCIAL PERFORMANCE

The Financial Statements for the year ended 31 March, 2026, have been prepared in accordance with the Companies (Accounting Standards) Rule, 2015 (AS) prescribed under section 133 of the Companies Act, 2013 and other recognized accounting practices and policies to the extent applicable. For the financial year ended 31st March, 2026, revenue at as level stood at Rs. 299.83 lakhs with a net loss of Rs. 674.76 lakhs.

During FY 2025-26, the Company incurred a loss primarily on account of administrative, capital and other operating expenditures incurred for maintaining its corporate operations and pursuing future business initiatives. As the Company is in the process of establishing its business operations, these expenditures were not offset by significant operating revenues during the year under review. The management is confident that the strategic initiatives being undertaken will support sustainable growth and enhance shareholder value over the long term.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCE

Human capital plays a critical role in the mining, mineral and the infrastructure industry, particularly in areas such as quarry operations, machinery handling, safety compliance and logistics management. The Company places emphasis on recruitment of skilled manpower, training programs, safety awareness and capacity building.

The Company continues to focus on maintaining harmonious industrial relations through employee engagement, welfare initiatives, statutory compliance and safety-first operational culture. Training programs are conducted to enhance technical skills, safety awareness and operational efficiency of workforce deployed at sites and processing units. The Company believes that healthy employee relations contribute significantly to operational stability and long-term organisational success. Management continuously promotes a culture where safety is considered a shared responsibility at every level of the organisation.

KEY FINANCIAL RATIOS

PARTICULARS	FY 2025-26	FY 2024-25	% Change
Debtors Turnover	0	2.90	-100
Inventory Turnover	0	0	0
Interest Coverage Ratio	0	0	0
Current Ratio	0.046	0.87	-94.7
Debt Equity Ratio	0.048	0.29	-83.4
Operating Profit Margin	-2.25	0.32	-803
Net Profit Margin	-2.25	0.33	-781
Return on Net Worth	-30.50	0.01	-305100

REASONS FOR CHANGE IN FINANCIAL RATIOS

The significant movement in the financial ratios during FY 2025-26, as compared with FY 2024-25, is primarily attributable to changes in the Companys financial position and the nature and scale of its operations during the year. The Company continues to strengthen its business operations and incurred administrative, capital and other operating expenditures in pursuing its future business initiatives, which impacted the profitability and related financial ratios.

1. Debtors Turnover Ratio: The ratio decreased from 2.90 times to Nil, primarily due to the absence of significant trade receivables arising from operating activities during the year.
2. Inventory Turnover Ratio: The ratio remained Nil, as there was no significant inventory turnover during the year.
3. Interest Coverage Ratio: The ratio remained Nil during the year, reflecting the Companys financial position and the absence of sufficient operating earnings to provide coverage for interest costs.
4. Current Ratio: The Current Ratio declined from 0.87 times to 0.046 times. This contraction was primarily driven by the utilization of liquid current assets to fund upfront operational, administrative, and statutory establishment costs, alongside a relative increase in current trade and other liabilities due in the ordinary course of business.

5. Debt-Equity Ratio: The Debt-Equity Ratio improved significantly from 0.29 times to 0.048 times. This decrease is attributable to reduction/repayment of borrowing obligations during the period and ongoing restructuring of the balance sheet capital composition.
6. Operating Profit Margin: The ratio decreased from 0.32% to (2.25)% primarily due to limited operating revenue in relation to administrative, operating and other expenditures incurred during the year, as the Company continues to establish and develop its business operations.
7. Net Profit Margin: The ratio decreased from 0.33% to (2.25)% primarily due to the net loss of Rs. 674.76 lakhs incurred during the year, mainly on account of administrative, capital and other operating expenditures incurred in maintaining corporate operations and pursuing future business initiatives.
8. Return on Net Worth: The ratio decreased from 0.01% to (30.50)% primarily due to the net loss incurred during the year, which adversely impacted the return generated on the Companys net worth.

The above changes in ratios are reflective of the Companys current stage of business development and the expenditure incurred towards strengthening its operations and pursuing identified business opportunities. Management remains focused on implementing its strategic initiatives with the objective of achieving sustainable growth and enhancing shareholder value over the long term.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward-looking within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to various factors such as regulatory changes, economic conditions, market dynamics, environmental risks and other unforeseen circumstances.

For and on Behalf of the Board of Directors For Raconteur Global Resources Limited

Sd/-

Surinder Kalra

Whole Time Director

DIN: 10779178

Sd/-

Hina

Whole Time Director

DIN: 09534689

Raconteur Global Resources Limited

Regd. Off.: Royal Palms, 3rd Floor A321 Master Mind 4, Aarey, Borivali, Goregaon East,

Mumbai-400065

CIN: L68100MH2018PLC307613

Email ID: compliance.rgrl@gmail.com

Date: 20th August, 2026

Place: Maharashtra