Unison Metals Ltd Management Discussions

Your Directors have pleasure in presenting the management discussion and analysis report for the year ended on March 31, 2025.

1. GLOBAL ECONOMIC OVERVIEW:

The global economy in 2024 displayed cautious optimism, continuing to navigate the aftermath of monetary tightening cycles, persistent geopolitical tensions, and a fragile recovery in global trade. The International Monetary Fund (IMF) estimates global growth to have slowed slightly to 2.9% in 2024, from 3.0% in 2023, reflecting moderated activity in both advanced and emerging markets. This is below the pre-pandemic historical average of 3.8%.

Advanced economies are witnessing a period of soft landing, with growth expected at 1.4% in 2024, following sustained tight monetary policies and waning fiscal support. Meanwhile, emerging market and developing economies have demonstrated relatively greater resilience, with growth holding steady around 4.0%, bolstered by domestic demand and improving supply chains.

Global inflation has continued its downward trajectory, estimated to average 5.8% in 2024, aided by easing commodity prices and policy interventions. However, core inflation remains above target in many countries, prompting central banks to maintain a cautious stance. Inflation in most advanced economies is not expected to return to target before mid-to-late 2025.

GDP GROWTH

FRAGILE RECOVERY AMID TIGHT CONDITIONS

The global growth narrative remains subdued. The expected global GDP growth of 2.9% in 2024 highlights the fragility of recovery, especially amidst ongoing geopolitical disruptions and a volatile energy market. Growth continues to be geographically skewed, with Asia-Pacific—particularly India and Southeast Asia—accounting for a disproportionate share of global economic expansion.

2. INDIAN ECONOMY:

India has maintained its position as one of the fastest-growing major economies in the world. Supported by a robust domestic market, digital transformation, and an ongoing infrastructure push, the Indian economy exhibited sustained momentum throughout 2024-25 despite global headwinds.

Urban demand remained strong, while rural demand showed consistent recovery, aided by improved agricultural output and increased rural spending. Private investment is gradually picking up, while

exports have faced challenges due to muted global demand. Monetary policy remained cautious amid sticky core inflation, though headline inflation moderated in the latter half of the fiscal.

GDP GROWTH

According to provisional estimates, Indias real GDP grew by 7.0% in FY 2024-25, supported by healthy private consumption, government capex, and improved manufacturing and services output. The IMF and World Bank have revised Indias medium-term growth potential to 6.5-7.0%, placing it well above the global average.

Indias consistent outperformance reinforces its stature as a key global growth engine. Structural reforms, digital penetration, and proactive policy interventions have laid the groundwork for long-term sustainable growth.

INVESTMENT LANDSCAPE & OUTLOOK

Investment revival continues to be a central theme of Indias economic strategy. While global uncertainties initially dampened private sector enthusiasm, the situation improved in the latter half of FY 2024-25, with improved credit growth, robust GST collections, and rising manufacturing PMI.

Key indicators—such as e-way bill generation, auto sales, power consumption, and bank credit— remained strong throughout the year, reinforcing the positive sentiment in the economy.

THE ROAD AHEAD: ECONOMIC PROJECTIONS

India is poised for a stable growth path in the near term. Barring unforeseen global shocks, the economy is expected to grow between 6.5%-7.0% in FY 2025-26, driven by:

• Recovery in rural demand

• Continued government-led infrastructure spending

• Increased private sector capex

• Stable financial system with improving asset quality

• Ongoing digital and structural reforms

However, global uncertainties—including commodity price fluctuations, geopolitical risks, and climatic challenges—remain key downside risks. A calibrated monetary policy, fiscal prudence, and supply-side interventions will be essential to maintaining macroeconomic stability.

3. INDUSTRY OVERVIEW:

The Indian steel industry, which plays a pivotal role in national economic development, continues to thrive amid growing domestic demand, policy support, and global diversification trends.

India retained its position as the second-largest steel producer globally, with steady year-on-year production growth. The steel sectors direct contribution to GDP remains at approximately 2%, with a much higher indirect impact, especially in infrastructure, construction, automotive, and capital goods sectors.

Indias push for self-reliance through initiatives like PM Gati Shakti, PLI schemes, and the National Infrastructure Pipeline (NIP) is driving increased steel consumption. In addition, supply chain diversification away from China has prompted global manufacturers to set up or expand operations in India, bolstering demand for steel and allied products.

The domestic steel demand is projected to grow by 7-8% in FY 2025-26, supported by infrastructure, real estate, and manufacturing sector growth.

LOOKING AHEAD

The Indian manufacturing sector is on track to become a USD 1 trillion industry by 2025, and steel will play a key role in this transition. With consistent policy support, increased FDI inflows, and expanding production capacities, the Indian steel industry is well-positioned for sustained growth in the medium term.

4. OPPORTUNITIES & THREATS:

Opportunities

We believe that our growth in other states in the country can fetch us new business expansion and opportunities. Presently, our presence is in the states of India except Orissa, Chhattisgarh, Bihar, Jharkhand and J&K. Going forward we intend to establish our presence in more locations in the country. Our emphasis is on scaling up of our operations in other markets which will provide us with attractive opportunities to grow our client base and revenue.

Threats

• Rise in cost of material and cost of transportation may affect the margin

• Changes in Government Policies

• Intense competition may reduce profitability

• Act of God

• Client Dissatisfaction

• Customers inability to pay

5. SEGMENT-WISE PERFORMANCE:

The Companys main business activity is trading and Manufacturing of Steel Patta, Ceramics Products and Sodium Silicate.

6. OUTLOOK:

The Company continues to explore the possibilities of expansion and will make the necessary investments when attractive opportunities arise.

7. RISK & CONCERNS:

The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Key business risks and mitigation strategy are highlighted below:

Business Risk

To mitigate the risk of high dependence on any one business for revenues, the Company has adopted a strategy of launching new products/services, globalizing its operations and diversifying into different business segments. The strategy has yielded good results and the Company therefore has a diversified stream of revenues. To address the risk of dependence on a few large clients, the Company has also actively sought to diversify its client base.

Legal & Statutory Risk

The Company has no material litigation in relation to contractual obligations pending against it in any court in India or abroad. The Company Secretary, compliance and legal functions advice the Company on issues relating to compliance with law and to pre-empt violations of the same. The Company Secretary submits a quarterly report to the Board on the Companys initiatives to comply with the laws of various jurisdictions. The Company also seeks independent legal advice wherever necessary.

Human Resource Attrition Risk

Unison Metals Limited key assets are its employees. In a highly competitive market, it is a challenge to address the attrition. Unison Metals Limited continues to accord top priority to manage employee attrition by talent retention efforts and offering a competitive salary and growth path for talented individuals.

Macroeconomic Risks

Companys business may be affected by changes in Government policy, taxation, intensifying competition and uncertainty around economic developments in Indian and overseas market in which the Company operates.

Mitigation Strategy

The Company has well defined conservative internal norms for its Business. The Company ensures a favourable debt/equity ratio, moderate liquidity, strong clientele with timely payment track record, appropriate due diligence before bidding and focus on expanding presence in newer markets to minimize the impact in adverse conditions. The Company has geographically and operationally diversified into multiple countries and business segments thereby reducing its dependency on one country or market.

Operational Risks

The Companys operations and financial condition could be adversely affected if it is unable to successfully implement its growth strategies. Competition from others, or changes in the products or processes of the Companys customers, should reduce market prices and demanding for the Companys products, thereby reducing its cash flow and profitability. Product liabilities claims may adversely affect the Companys operations and finance.

Others

The Company is exposed to risks & fluctuations of foreign exchange rates, raw-material prices and overseas investments exposures.

8. INTERNAL CONTROL SYSTEMS & THEIR ADEQUEACY:

One of the key requirements of the Companies Act, 2013 is that companies should have adequate Internal Financial Controls (IFC) and that such controls should operate effectively. Internal Financial Controls means the policies and procedures adopted by the Company for ensuring orderly and efficient conduct of its business, including adherence to Companys policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial information. Your Company process of assessment ensures that not only does adequate controls exist, but it can also be evidenced by unambiguous documentation. The process involves scoping and planning to identify and map significant accounts and processes based on materiality. Thereafter, risk is identified and their associated controls are mapped, else remediation is implemented. These controls are tested to assess operating effectiveness. The auditor performs independent testing of controls. The Auditors Report is required to comment on whether the Company has adequate IFC system in place and such controls are operating effectively. Your Companys Internal Control System is robust and well established. It includes documented rules and guidelines for conducting business. The environment and controls are periodically monitored through procedures/ processes set by the management, covering critical and important areas. These controls are periodically reviewed and updated to reflect the changes in the business and environment.

The Audit Committee periodically reviews the internal controls systems and reports their observations to the Board of Directors.

The Directors have appointed M/s. Susheel Ajmera & Co., Chartered Accountants as the Internal Auditors of the Company for the FY 2024-25 on 30/05/2024.

9. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During the year, the Company has generated turnover of Rs. 16,682.42/- Lakhs as compared to Rs. 14,938.87/- Lakhs in the previous year. The net profit before exceptional items and taxes is Rs. 190.14/- Lakhs as compared to Rs. 137.95/- Lakhs in the previous year. The Company has made net profit after taxes of Rs. 135.72/- Lakhs as compared to Rs. 93.94/- Lakhs of the previous year for the year ended 31 st March, 2024.

10. MATERIAL DEVELOPMENTS IN HR / INDUSTRIAL RELATION / NUMBER OF PERSON EMPLOYED:

Our Company believes that the human capital is key to bring in progress. The Company believes in maintaining cordial relation with its employees, which is one of the key pillars of the Companys business. The Companys HR policies and practices are built on core values of Integrity, Passion,

Speed, and Commitment. The Companys focus is on recruitment of good talent and retention of the talent pool. The Company is hopeful and confident of achieving the same to be able to deliver results and value for our shareholders. As on 31 st March, 2025, the total employees on the Companys rolls stood at 74.

The Company continues to run an in-house training programmer held at regular intervals and aimed at updating their knowledge about issues.

11. ACCOUNTING POLICIES:

The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The financial statements have been prepared under the historical cost convention on an accrual basis. The management accepts responsibility for the integrity and objectivity of the financial statements, as well as for the various estimates and judgment used therein.

12. DISCLOSURE OF ACCOUNTING TREATMENT IN PREPARATION OF FINANCIAL STATEMENT:

The Company has followed all relevant Accounting Standards laid down by the Institute of Chartered Accountants of India (ICAI) while preparing Financial Statements.

13. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS:

1. Return on Net Worth (%) 6.60 4.84 36.24% During the financial

year under

consideration product wise margin has been improved.

15. CAUTIONERY STATEMENT:

Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.

PLACE : AHMEDABAD	By Order of the Board
DATE: 04.09.2025	For, UNISON METALS LIMITED
	Sd/-	Sd/-
	Maheshbhai Changrani	Rashi Tirth Mehta
	Wholetime Director	Managing Director
	DIN: 00153615	DIN: 10697866
Registered Office: Plot No 5015, Phase 4,
Ramol Char Rasta, GIDC, Vatva Ahmedabad 382445
Tel: (079)-25841512
Website: www.unisongroup.net
CIN: L52100GJ1990PLC013964