Reetech International Ltd Management Discussions

Introduction

We are one of the recognized traders of imported coal and perform its operations from Ganagavarm and other ports. Our operations are spread across India with a wide network of customer. Our Diversified product portfolio comprises of coal from Indonesia, South Africa, Australia and India among other origins. We supply our products to the customer in the various sectori.e Power, Steel, Rolling and other industry. In just a few years of starting our coal business segment we have established as a reliable partner in the trading coal space.

The promoters of the company has vision to look beyond the ordinary; to foresee opportunities; to attain the unattainable; to create in-roads into newer vistas of change and above all, to bridge the demand-supply gap for coal, the worlds fossil fuel

Financial & Operational Performance

The Companys financial performance during the year ended 31st March, 2026 was impacted due to non-generation of revenue from operations. The Company recorded total income of 188.82 lakhs during the financial year under review as against 1,330.23 lakhs in the previous financial year ended 31st March, 2025. The decline in total income was mainly due to absence of revenue from operations during the year.

The Company reported a profit before tax of 16.58 lakhs during the financial year ended 31st March, 2026 as compared to a loss before tax of 26.90 lakhs in the previous financial year. After considering tax adjustments, the Company reported a profit after tax of 19.33 lakhs for FY 2025-26 as against a loss after tax of 25.37 lakhs during FY 2024-25.

The Companys financial position remained stable during the year under review. The net worth of the Company increased to 1,505.16 lakhs as on 31st March, 2026 from 1,485.83 lakhs as on 31st March, 2025.

The Companys Total Annual Coal Trading Outflows in Metric Tons for the Previous years is as under:

Particulars of Years	South African (RB2)	South African (RB3)	Indonesian Coal	Australian Coal	Maputo (Steam Coal)	Sponge Iron
2023-24	13877.15	11601.52	0	0	385.98	1498.07
2024-25	1071.81	13969.30	0	0	0	0

The highlights of inventory of Geological Resources of Indian Coal (as on 01.04.2025), prepared by the Geological Survey of India is tabulated below:

A total of 401 BT of geological resources of coal have so far been estimated in India, up to the maximum depth of 1200 m. Out of the total resources, the Gondwana coalfields account for 399 BT (99.5%), while the Tertiary coalfields of Himalayan region contribute 2 BT (0.5%) of coal resources. The type-wise and category-wise break-up is given below:

Coal type	Proved	Indicated	Inferred	Total	% Share
Prime Coking	5	0	0	5	1
Medium Coking	17	10	2	29	8
Semi Coking	1	1	0	2	0
Sub-Total of Coking	23	11	2	36	9
Non-Coking	196	138	29	363	91
Tertiary Coal	1	0	1	2	0
Grand Total	220	149	32	401	100
% share	55	37	8	100

The depth-wise and category-wise break-up of Indian coal resources is as follows

Depth Range	Proved	Indicated	Inferred	Total	% share
0-300	145	56	9	210	52
300-600	50	68	16	134	33
0-600(ForJharia Coalfield only)	15	0	0	15	0
600-1200	10	25	7	42	11
Total	220	149	32	401	100

At the current rate of production in the country, the reserves are adequate to meet the demand.

SWOT ANALYSIS

Factors affecting our results of operations:

Our companys future results of operations could be affected potentially by the following strengths:

The company has rich experience in business management and has a good track record.

The companys revenue majorly comes from single segment, thus all efforts and taskforce is directed towards single line of business and deployment of full potential in achieving the desired goals. The registered office of the company is centrally located in heart of Rural India and the capital city of Chhattisgarh. We have satisfied chain of vendors which are associated with us from past many years. List of our top vendors (debtors &creditors ) whom we have trade relations with are as under:

Name of Vendor
1 Adani Enterprises Limited.	7. Axis Enterprises	13. SRG Industries Pvt. Ltd.
2 Agarwal Coal Corporation Pvt. Ltd.	8. VrajMetalicsPvt. Ltd.	14. JSW Minerals Trading Pvt. Ltd.
3 Tata International Ltd.	9. Anupam Fuels PVt. Ltd.
4 Indian Coke & Power Pvt. Ltd.	10. SMS Carbon & Minerals Pvt. Ltd.
5 Sparsh Baldev Exports Pvt. Ltd.	11. Waltair Coal Pvt. Ltd.
6. Basudev trade link	12. Jaydeep Ispat& Alloys Pvt.Ltd.

The promoters of the company have progressive vision and futuristic approach to run the business efficiently and effectively. Experienced Promoters and Management provide us an extra edge to deal with day to day affairs of the company.

Some of the weakness or business risks are outlined as follows:

Our companys derive significant revenue from trading coal.

Fluctuation in prices, non-availability or high cost of quality of coal may have an adverse effect on our business, results of operations and financial condition. Our business is dependent on our continuing relationships with our customers. Our business is capital intensive. If we experience insufficient cash flows to meet required payments on our debt and working capital requirements, there may be an adverse effect on our operations. Our business experiences an increase in sales during the summer season in India which lasts from March till July.

Industry wise Business Constraints: The uses of coal are being reduced in terms of the energy mix and being substituted with clean energy sources, owing to the generation of air pollutants due to coal combustion. These factors, in turn, are expected to restrain the growth of the Indian coal market.

Review of Business Operations and Future Prospects:

The business of the company is going well and it has great prospects for future. Your Directors are optimistic about Companys business and hopeful of better performance with increased revenue in next year.

Marketing outlook

From a marketing perspective, the Company expects demand for coal to remain supported by growth in power generation, infrastructure development and industrial activity in the country. BCCL shall continue to focus on improving coal quality and enhancing the availability of quality coking coal and washed coal to meet the requirements of the domestic steel sector. Expansion of washing capacity is expected to improve product quality, strengthen customer satisfaction, enhance value realization and support import substitution efforts. The Company will also continue to focus on customer engagement, supply reliability and strengthening its presence in key consumer sectors through consistent supply of quality coal products.

The total power generation (incl. RES) in the country grew to about 1844.5 BU clocking a growth of 0.9 %. The coal-based generation in the country for FY 2025-26 was 1250 BU with a (-)3.7 % growth over the previous year. The domestic coal based generation was 1174.4 BU {(-)2.3% growth over previous year}. Considering the growth of power generation and consequential increase in demand, the offtake target of FY 2025-26 was 900.24 MT. The demand from power sector was 668 MT against which Coal India Limited (CIL) supplied 588.01 MT, achieving 88% materialisation. The coal supply to Non Regulated Sector(NRS) was 155.5 MT (7.0 % growth over previous year) which is the highest supply to NRS in any given year.

The e-auction coal booking during FY 2025-26 was 101.72 MT against 89.38 MT during previous year. The premium on e-auction during FY 2025-26 was 46 % as against 48 % in previous FY. Fuel Supply Agreement (FSA) commitment for Power Sector, Non-Power and bridge linkage were at about 793.90 Million Tonne Per Annum (MTPA) as on 31.03.2026. The demand of CIL coal from Power sector as per Ministry of Coal for FY 2026-27 is 669.80 MT. The yearly target for FY 2026-27 has been set at about 850.24 MT so as to cater to the entire demand of power sector, NRS and also to substitute the substitutable imported coal in the country. In order to tap the potential future market for coal consumption and explore alternative uses of domestic coal, CIL intends to offer more coking coal to steel sector and also supply coal for upcoming coal gasification projects.

Coal Trading Market Analysis by Mordor Intelligence

The Coal Trading Market size is projected to expand from USD 12.72 billion in 2025 and USD 13.37 billion in 2026 to USD 16.64 billion by 2031, registering a CAGR of 4.47% between 2026 to 2031.

Strong Asian utility procurement, European hedging against natural-gas volatility, and widening metallurgical-coal premiums over thermal grades sustain this measured expansion.[1] Long-term freight costs linked to IMO 2030 carbon-intensity rules have restored the appeal of fixed-price supply contracts, while port-capacity upgrades at Richards Bay and Qinhuangdao ease demurrage pressures and release stranded tonnage. Digital bill-of-lading platforms now settle 12% of seaborne trades, lowering working-capital needs for counterparties that can verify cargo quality in real time. Although renewable build-out in OECD economies crimps steam-coal demand, high-grade coking coal remains irreplaceable for blast-furnace steelmaking, giving the global coal trading market durable multi-segment demand diversity.[2]

Source: https://www.mordorintelligence.com/industry-reports/coal-trading-market

India energy statistics 2026 shows coal dominance and rising renewable capacity

Global coal prices firm as geopolitical supply risks tighten markets

India coal imports fall 8.54% YoY in July as thermal coal and petcoke decline

India coal imports and coke shipments totalled 20.141 MMT in July 2026, down 8.54% year on year from 22.021 MMT. Thermal coal imports declined 4.18% to 11.433 MMT, while petcoke recorded the steepest fall, plunging 64.55% to 0.551 MMT. The broader January July picture also remained weaker, with total coal and coke imports reaching 148.236 MMT,

8.44% below the same period […]

COAL DISTRIBUTION AND MARKETING

The Marketing Division of CIL coordinates marketing activities for all its subsidiaries. CIL has set up Regional Sales Offices and Sub-Sales Offices at selected places in the country to cater to the needs of the consuming sectors in various regions.

IMPORT OF COAL

As per the present Import policy, coal can be freely imported (under Open General Licence) by the consumers themselves considering their needs based on their commercial consideration. Coking Coal is being imported by Steel sector mainly to bridge the gap between the requirement and indigenous availability and to improve the quality. Other sectors like Power sector, cement etc. and coal traders are importing non-coking coal. https://coal.gov.in/major-statistics/production-and-supplies

The Ministry of Coal has the overall responsibility of determining policies and strategies in respect of exploration and development of coal and lignite reserves, sanctioning of important projects of high value and for deciding all related issues. Under the administrative control of the Ministry, these key functions are exercised through the Public Sector Undertakings, namely, Coal India Ltd. and its subsidiaries and Neyveli Lignite Corporation India Limited (NLCIL). Other than Coal India Ltd. and Neyveli Lignite Corporation India Ltd., the Ministry of Coal also has a joint venture with Government of Telangana called Singareni Collieries Company Limited. Government of Telangana holds 51% equity and Government of India holds 49 % equity. https://www.coal.nic.in/about-us/about-ministry

Global Macroeconomic Environment

Financial year 2025-26 closed under the shadow of a significant geopolitical shock. The outbreak of armed conflict in West Asia in late February 2026, escalating from tensions that had persisted across the Middle East since late 2023, triggered a sharp risk-off repositioning across global financial markets in the closing quarter of the fiscal year. The

International Monetary Fund (IMF), in its April 2026 World Economic Outlook, revised its global growth forecast down to 3.1% for calendar year 2026 from the 3.4% outturn in 2025, identifying the geopolitical escalation as the primary downside catalyst.

India Coal Industry Reports

The Indian coal market is a significant segment of the countrys energy sector, driven primarily by the demand for power generation through thermal coal. The market encompasses various applications, including coking feedstock and other industrial uses. The increase in Indias coal production aims to meet the rising energy demands, supported by extensivecoalresources. Despite the challenges such as environmental concerns, occupational health risks, and market volatility, the coal industry remains a crucial part of Indias economy. Government policies promoting renewable energy sources are tempering the market growth, pushing for a reduction in reliance on coal. The future of Indias coal market will be influenced by global economic conditions, technological advancements, and the need for environmental sustainabilityandsocialresponsibility. Key players in the Indian coal market are actively optimizing their operations to meet market demands. The industrys growth rate and market value are critical metrics, with industry analysis providing insights into market trends and industry statistics. Market leaders are navigating the dynamic landscape, focusing on industry research and market segmentationtostaycompetitive. Industry reports and market data offer a comprehensive market overview, including market forecast and market growth predictions. The market outlook highlights the ongoing developments and market review, while industry information and industry size provide a detailed understanding ofthesector. The report example and report pdf offer valuable insights into the market predictions and industry trends. Research companies play a vital role in providing industry analysis and market segmentation, ensuring that stakeholders have access to accurate and up-to-date information. In summary, the Indian coal market is poised for growth, driven by the demand for thermal power generation and supported by extensive coal resources. However, the market must navigate challenges such as environmental sustainability and government policies promoting renewable energy. Industry reports, market data, and research companies provide valuable insights into the market ,helping stakeholders make informed decisions.

Source: https://www.mordorintelligence.com/industry-reports/india-coal-market

India Coal Market Analysis

The Coal Trading Market size is estimated at USD 10.19 billion in 2025, and is expected to reach USD 12.80 billion by 2030, at a CAGR of 4.68% during the forecast period (2025-2030). Source: https://www.mordorintelligence.com/industry-reports/coal-trading-market

Over the medium term, coal is majorly consumed in various sectors, such as industry, transport, residential, commercial and public services, agriculture, fishing, and several non-energy areas that generate the coal demand, leading to the trade of coal between the nations. On the other hand, power from coal is getting mixed up with other alternative sources, like renewables and natural gas, which help to reduce the environmental impact as compared to coal. These factors, in turn, are expected to restrain the growth of the coal trading market in the coming years. Nevertheless, with the growing demand for electricity, coal power plants in the Asia-Pacific region are expected to be a significant consumer of coal. The region is expected to have a demand of around 4,400 megatons of coal equivalent (Mtce) by 2040, with the majority of demand from the power sector. This demand for coal is expected to create an opportunity for the coal trading market in the future. Asia-Pacific dominated the coal trading market with China and India as the major importer, and Australia and Indonesia are among the major exporter of coal. Source: https://www.mordorintelligence.com/industry-reports/coal-trading-market

Iron Ore Price Trends

Source: Bigmint Note

Coking Coal Coking coal prices, particularly premium hard coking coal (PHCC) from Australia, moderated steadily through the year. Prices eased from over USD 260/t at the beginning of the fiscal to below USD 200/t by the final quarter, reflecting improved supply conditions and stable demand.

Global Economy at Large

An NGO, found that India ignited a rise in new coalmine proposals in 2025 despite a global slowdown in the number of mine openings because of falling demand for the fossil fuel. The increase was driven almost entirely by the states of Jharkhand and Odisha, which doubled their proposals for new coalmines in line with an ambitious plan from Indias ministry of coal to increase the countrys output.

India plans to increase its coal production by nearly 100m tonnes to 1.15bn tonnes in the 2025-26 fiscal year to help meet the countrys rising demand for electricity to support economic growth and contend with heatwaves, which have become more severe and more frequent because of the climate crisis.The planned increases come despite signs that the world is beginning to turn its back on coal in favour of renewable electricity, Global Energy Monitor said. Coalmine proposals slowed in the years after the Covid-19 pandemic but have begun to climb again, raising concerns that mining could increase in the future despite a slowdown in the number of new facilities. The startup of new coalmining projects has fallen steadily in recent years, according to the Global Energy Monitors latest report. It found that enough new coalmines to produce about 113m tonnes each year began operations last year, down by 40% from 2024, which was already the lowest annual total in a decade. This was largely owing to a slowdown in new mines in China and Australia, which fell by

44% and 96% respectively. Global Energy Monitor warned that Indias rise in new mine proposals was at odds with the slowdown in global coal demand predicted by the International Energy Agency for the end of the decade.

OUTLOOK https://www.pib.gov.in/PressReleasePage.aspx?PRID=2280284&reg=48&lang=2

During the first quarter of FY 2026 27, from April to June 2026, cumulative coal production increased by 5.35% compared with the corresponding period of the previous financial year. Coal dispatch during the quarter also recorded a year-on-year increase of 1.70%.

The performance reflects continued improvements in mine operations, capacity utilization and production planning. The accompanying graph depicts the trend in coal production and dispatch in Million Tonnes.

The accompanying graph illustrates the trend in production and dispatch (Million tonnes)

INDIAN ECONOMIC OVERVIEW

India is expected to grow at 6.5% in FY 2024-25, lower than 8.2% growth in FY 2023-24, as per IMF. This moderation is attributed to subdued external demand, manufacturing and services sector slowdowns, and inflationary pressures. The manufacturing sectors growth is expected to decline to 5.3% from 9.9% in the previous fiscal, primarily due to global supply chain disruptions and rising input costs. The services sector is anticipated to grow at 5.8%, down from 6.4% in FY 2023-24. On the contrary, the agriculture and allied sector demonstrated significant resilience, with growth estimated at 3.8% in FY 2024-25, an increase from the previous years 1.4%. The construction sector is expected to grow at 8.6% in FY 2024-25, underscoring the governments focus on infrastructure development. Private Final Consumption Expenditure

(PFCE) at constant prices is expected to witness a growth of 7.3% compared to 4% growth in the previous financial year. The Real GDP or GDP at Constant Prices is estimated to reach 184.88 lakh crore in FY 2024-25, against the Provisional Estimate of GDP of 173.82 lakh crore for FY 2023-24. Indias retail inflation, as measured by the Consumer Price Index

(CPI), eased to 4.6% in FY 2024-25. In a further positive development, retail inflation for March 2025 declined to 3.34%. The sustained moderation in inflation reflects the effectiveness of policy measures in containing price pressures

Ample coal supplies.

The price forecast is based partly on expectations of a decrease in global coal supply in 2025 and 2026, owing to shrinkingoutput across many producers. In several countries, production could exceed forecasts. Indonesias output has significantly exceeded national targets in the past, including by 17 percent in 2024, suggesting that the planned reduction may not materialize. Recent changes in U.S. energy policies to boost the use of coal could also slow or potentially reverse the trend of decreasing U.S. coal output. Meanwhile, if diplomatic efforts to resolve the conflict triggered by

Russias invasion of Ukraine prove successful, potential markets for coal exports from Russia might broaden, encouraging higher production levels.

CAUTIONARY STATEMENT

Statement made in the Management Discussion and Analysis describing the various parts may be "forward looking statement" within the meaning of application securities laws and regulations. The actual result may differ from those expectations depending upon the economic conditions, changes in Government regulation and amendments in tax laws and other internal and external factors.