Tusaldah Limited Management Discussions

Business Environment

FY2025-26 represented a period of transition for Tusaldah Limited as the Company began moving from its historical textile and commodity-trading orientation towards a broader wholesale trading and distribution strategy. The proposed new direction places increasing emphasis on selected consumer-product categories, including FMCG and beverages. The trading and distribution industry is characterised by relatively low manufacturing intensity but requires strong capabilities across sourcing, logistics, inventory management, customer credit, compliance and working capital. Success depends not only on identifying demand but also on building reliable supplier and customer relationships while maintaining appropriate commercial discipline.

FMCG Industry Context

The FMCG industry consists of products with relatively frequent consumption and broad distribution requirements. The sector encompasses food products, beverages, household consumables and several other daily-use categories. For an emerging trading and distribution platform such as Tusaldah, the opportunity lies in identifying selected categories where supplier access, market demand, pricing, logistics and working-capital economics create a viable business proposition. The Company intends to approach category expansion selectively rather than attempt to participate across the entire FMCG market.

Beverage Opportunity

Beverages represent a potential adjacency to the Companys proposed FMCG distribution strategy.

The non-alcoholic beverage market offers opportunities across juices, energy drinks and other packaged beverage categories. Alcoholic beverages represent a separate and highly regulated market. Participation is subject to state- and country-specific excise laws, licences, labelling requirements, distribution rules and taxation frameworks. Accordingly, any entry by Tusaldah into regulated beverage categories will be undertaken only after obtaining the requisite approvals and establishing appropriate commercial arrangements.

Strategic Transition

The Companys transition is supported by the management teams experience in international sourcing, wholesale trade, logistics and market development. The broader promoter ecosystem has exposure to international markets and consumer-product distribution, including experience in parts of Africa. Tusaldah intends to draw upon the commercial knowledge and market understanding available to its management while maintaining appropriate distinction between the listed Company and businesses or assets belonging to promoter/group entities. Any transactions with related parties will continue to be governed by applicable provisions of the Companies Act, 2013 and SEBI Listing Regulations.

Financial Performance

Revenue from operations during FY2025-26 stood at approximately Rs. 3.02 crore, compared with approximately Rs. 4.17 crore in FY2024-25, reflecting lower full-year operating revenue. The Company reported a loss after tax of approximately Rs. 0.62 crore during FY2025-26 compared with a loss of approximately Rs. 0.10 crore during FY2024-25. The financial performance reflects the Companys limited operating scale during a year of organisational and strategic transition. Managements focus going forward is to improve the quality and scale of operating revenue while retaining discipline over margins, working capital, expenses and counterparty exposure.

Opportunities

The Companys key opportunity lies in progressively creating a broader trading and distribution platform.

India offers a deep sourcing ecosystem across agricultural products, packaged foods, consumer goods and beverages. Managements international trading experience may also assist the Company in evaluating selected overseas demand markets over time. Further opportunities may arise through distribution partnerships, private-label products, strategic brand arrangements and the expansion of the Companys product basket. The conversion of these opportunities into revenue will depend on commercial viability, financial resources, regulatory approvals and successful execution.

Risks And Concerns

Tusaldahs evolving strategy is subject to execution risk.

The Company must establish appropriate supplier relationships, customer networks, logistics processes and working-capital systems before the proposed business can achieve meaningful scale. Trading businesses are particularly sensitive to inventory cycles and customer credit. Growth in revenue without corresponding discipline in receivables and inventory can adversely affect liquidity. Commodity-price volatility and changes in procurement costs may also affect gross margins. New categories involve product acceptance and competitive risks. Regulated beverage categories carry additional licensing, excise and compliance requirements. International trade can expose the Company to foreign-exchange fluctuations, freight costs, geopolitical developments, customs regulations, payment risks and country-specific business conditions. Management intends to evaluate these risks as part of its decision-making process and calibrate expansion to the Companys financial and organisational capacity.

Outlook

The Companys near-term focus is on converting the strategic transition undertaken during FY26 into a stronger operating platform. Management intends to progressively strengthen procurement relationships, evaluate selected FMCG and beverage categories, develop customer and distribution relationships and improve operating scale. India is expected to remain the primary sourcing base. Selected overseas markets may be evaluated progressively where management identifies appropriate commercial opportunities and acceptable risk-adjusted economics. The Company may also evaluate private-label products, brand-related opportunities and strategic collaborations over the longer term. Any expansion will remain subject to regulatory approvals, financial resources, market conditions and the Companys ability to execute.

The outlook should therefore be understood as managements current strategic direction and not as a forecast or assurance of future revenue or profitability.

Internal Controls

The Company recognises that its internal-control framework must evolve in line with changes in the nature and scale of its business. Management continues to focus on controls relating to vendor onboarding, procurement, inventory, customer credit, payments, financial reporting and statutory compliance. As the Company enters additional products or markets, corresponding operational and compliance processes will be reviewed and strengthened. The final assessment of internal financial controls in the Annual Report shall be aligned with the observations and conclusions contained in the statutory auditors report and other applicable audit reports.

Human Resources

Tusaldahs transition requires capabilities across sourcing, finance, compliance, sales, logistics and business development. During FY26, the Companys immediate focus remained on strengthening leadership and key

managerial positions. Future additions to the organisation will be aligned with the scale and requirements of the business. Employee strength as at March 31,2026: N.A.

Key Financial Ratios

The final Management Discussion and Analysis shall include the financial ratios and explanations required under Schedule V of the SEBI Listing Regulations, including explanations for material changes and the movement in Return on Net Worth.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, strategies, expectations, plans or future opportunities may constitute forward-looking statements.

Actual results may differ materially from those expressed or implied due to economic conditions, regulatory developments, competition, commodity prices, foreign-exchange movements, availability of capital, customer demand, supply-chain conditions and other factors. The Company does not undertake any obligation to revise forward-looking statements except as required under applicable law.