TMT (I) Ltd Management Discussions

OVERVIEW:

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013, guidelines issued by the Securities and Exchange Board of India (SEBI) and other statutory requirements. Our Management accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, so that the financial statements reflect in a true and fair manner the form and substance of transactions and reasonably present our state of affairs, profits and cash flows for the year.

INDIAN ECONOMY:

The International Monetary Fund (IMF) on Tuesday raised its growth outlook for India for financial year 2025-26 (FY26) to 6.4 per cent from 6.2 per cent projected in April, citing a more benign external environment and lower inflation.

The 20 basis points (bps) upgrade was part of an update to the multilateral lenders World Economic Outlook (WEO) report, which also scaled up Indias Gross Domestic Product (GDP) forecast for FY27 by 10 bps to 6.4 per cent.

"In India, growth is projected to be 6.4 percent in [FY 2026 and FY 2027], with both numbers revised slightly upward, reflecting a more benign external environment than assumed in the April reference forecast," the report said.

In response to a query on the rationale for the upward revision in Indias growth projection at, Deniz Igan, division chief, IMF, attributed the upgrade mainly to the suspension of higher tariff rates and lower inflation because of falling food prices.

"What has been the driver of this relatively stable growth is the fact that there has been a reform momentum supporting robust consumption growth and a push for public investment," she said at a press briefing.

"…And to continue the recent good growth performance that we have seen, priorities [for India] would include fostering job creation and absorbing excess labor from the agricultural sectors by reskilling [them]. At the same time, continuing to invest in infrastructure and removing trade restrictions," Igan suggested.

"In the medium term, India needs to continue to invest in education, take a step towards land reforms, expand the social safety net and reduce red tape to allow businesses to perform better," she emphasised.

The IMF pegged global growth 20 bps higher than its April forecast at 3 per cent for 2025, and raised it by 10 bps to 3.1 per cent for 2026. "This reflects stronger-than-expected front-loading in anticipation of higher tariffs, lower average effective US tariff rates than announced in April, an improvement in financial conditions, including due to a weaker US dollar and fiscal expansion in some major jurisdictions," the IMF noted.

Pierre-Olivier Gourinchas, chief economist, IMF says that the modest decline in trade tensions, however fragile, has contributed to the resilience of the global economy so far, along with a few other developments.

"First, concerns about future tariffs led to a strong surge in exports to the US in the first quarter of the year. This front-loading helped support activity in Europe and Asia. Second, financial conditions improved, and monetary conditions eased as global inflation continues to recede. Third, the dollar has depreciated by roughly 8 percent since January," he added.

In emerging markets and developing economies, the IMF projected growth to be 4.1 per cent in 2025 and 4 per cent in 2026. Relative to the forecast in April, growth in 2025 for China is revised upward by 80 bps to 4.8 per cent.

The risks to the outlook include a rebound in effective tariff rates which could lead to weaker growth and geopolitical tensions that could disrupt global supply chains and push commodity prices up.

"Elevated uncertainty could start weighing more heavily on activity, also as deadlines for additional tariffs expire without progress on substantial, permanent agreements. Larger fiscal deficits or increased risk aversion could raise long-term interest rates and tighten global financial conditions," the IMF noted. On the upside, global growth could be lifted if trade negotiations lead to a predictable framework and to a decline in tariffs.

On inflation, the WEO update said global headline inflation is expected to fall to 4.2 per cent in 2025 and 3.6 percent in 2026, a path similar to the one projected in April.

Source:https://www.business-standard.com/economy/news/imf-raises-india-growth-projection-by-20bps-for-fy26-benign-external-environment-125072901164_1.html

GLOBAL ECONOMY:

India could become the worlds second-largest economy by the year 2038, reported EY. With strong economic fundamentals, a young population, and a sustainable fiscal position, India is expected to continue its robust growth despite global uncertainties.

The report, called the EY Economy Watch, mentioned that if current growth trends continue, India may become the worlds second-largest economy by 2038 in PPP terms, with a GDP projected at $34.2 trillion.

Unlike many other big economies in the world, India has some unique advantages. The average age of people in India in 2025 is just 28.8 years. This means theres a huge number of young, working people who can drive the economy forward for decades.

Further, India has the second-highest savings rate among the worlds largest economies. This is great because it means more money is available for big projects and new businesses.

Moreover, the governments borrowing is actually going down. While other countries are seeing their debt pile up, Indias debt-to-GDP ratio is expected to fall from over 81% in 2024 to about 75% by 2030.

The report also mentions that Indias strong economy doesnt rely too much on whats happening in other countries. Our huge domestic market means people within India are buying and selling things, which keeps the economy healthy even when global trade is slow.

The report compares India to other major economies like the USA, China, Germany, and Japan. While they are all very successful, they face some big challenges that India doesnt. For example, China is dealing with an ageing population, and the USA has a lot of debt. Germany and Japan also have older populations and are very dependent on global trade, which can be a risk.

In simple terms, Indias mix of a young population, high domestic demand, and good financial health gives it the most promising path for long-term growth.

According to EY Indias Chief Policy Advisor, DK Srivastava, the countrys strong points will help it grow even when the world economy is facing problems. He says India is well on its way to achieving its goal of becoming a "Viksit Bharat" (developed India) by 2047.

India is also expected to become the third-largest economy in market exchange rate terms by 2028, surpassing Germany. Even potential disruptions, like US tariffs affecting 0.9% of GDP, are projected to have only a minor impact on growth if countered with export diversification and stronger domestic demand.

With a combination of a young population, rising domestic consumption, fiscal discipline, and structural reforms, India appears well-positioned to climb the global economic ladder in the coming decades.

Source:https://www.indiatoday.in/business/story/india-on-track-to-become-2nd-largest-economy-by-2038-report-2778125-2025-08-28.

OPERATIONS:

The Operations of the Company are at minimal scales and the management is actively working towards bagging new orders for execution and is evaluating all the possibilities of bringing back the glory of the Company with good order book and generation of sizable revenues.

FUTURE OUTLOOK:

The management is actively scouting for new orders and markets. In the coming years, the management will strive to identify and produce distinct varieties of products to cater to the needs of overseas markets.

OPPORTUNITIES & THREATS

Strength: Huge demand for natural agro products produced in India in foreign countries, providing high export potential.

Weakness: The necessity of any product may come at any time and any material required in this connection needs to be purchased in bulk quantity whenever it is available, requiring heavy capital investments in stocks.

Opportunities: We are a very old Company having vast amount of experience which will enable us to execute any orders received by the Company.

Threats: The business of the Company is exposed to normal industry threats.

INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

The philosophy we have with regard to internal control systems and their adequacy has been formulation of effective systems and their strict implementation to ensure that assets and interests of the Company are safeguarded; checks and balances are in place to determine the accuracy and reliability of accounting data. The Company has a well-defined organization structure with clear functional authority, limits for approval of all transactions. The Company has a strong reporting system, which evaluates and forewarns the management on issues related to compliance. Company updates its internal control system from time to time, enabling it to monitor employee adherence to internal procedures and external regulatory guidelines.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Particulars	2024-25	2022-24
Total Income	-	4.17
Total Expenses	30.58	38.48
Profit Before Taxation	(45.98)	(34.32)
Profit after Tax	(45.98)	(34.32)
Earnings per Equity share - Basic & Diluted	(0.92)	(0.69)

KEY FINANCIAL RATIOS:

S. No Particulars	2024-25	2023-24	Change as a %	Reason for change
1. Current Asset Ratio	0.52	1.20	NA	NA
2. Debt Equity Ratio	(1.06)	(1.08)	-1.87	Company Debt ratio is in ideal position and it less depends on outside debt funds
3. Debt Service Coverage Ratio	(0.07)	(0.05)	-80.84	Due to minimal operational transactions Net operating income is low for debt
4. Return on Equity Ratio	0.07	0.06	-81.17	Due to minimal operational transactions Net operating income is low for share equity
5. Inventory Turnover Ratio	0.00	0.00	NA	NA
6. Trade Receivable Turnover Ratio	0.00	0.45	NA	NA
7. Trade Payable	0.00	0.00	NA	NA
Turnover Ratio
8. Net Capital Turnover Ratio	0.00	0.91	NA	NA
9. Net Profit Ratio	0.00	(1107.14)	NA	NA
10 Return on Capital	(1.26)	(0.74)	-76.16	Due to minimal operational
Employed				transactions EBIT is very low
11 Return on Investment	0.17	(0.17)	-169.12	Due to decrease in the Market Value share price of Investments, ROI also decreased with compared to Previous year ROI

PERSONNEL:

Human wealth is the ultimate wealth for any industry. The Company recognizes this fact and understands that employees are one of the most important sources for sustained growth of any business. Quality personnel delivering their optimum potential for the organization is the key differentiator. The Company maintained good relations with its employees and there was no unrest in the Company at any point of time.

Industrial relations in the organization continued to be cordial and progressive.

HEALTH AND SAFETY:

The Company places considerable emphasis on health and safety throughout its operation and displays commitment to ensure the high standards being maintained in compliance with applicable laws and regulations.

FORWARD LOOKING / CAUTIONARY STATEMENT:

Certain statements in the Management Discussion & Analysis Report detailing the Companys objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. These statements being based on certain assumptions and expectation of future event, actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting domestic demand supply conditions, finish goods prices, changes in Government Regulations and Tax regime etc. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of subsequent developments, information or events.

	BY THE ORDER OF THE BOARD
	For TMT (India) Limited
	Sd/-
	T G Veera Prasad
Place : Hyderabad	Chairman & Managing Director
Date : 14.08.2025	(DIN: 01557951)