Virya Resources Ltd Management Discussions

The information required in compliance of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and forming a part of the Directors Report for the Year ended 31^st March, 2025

The Company has significant operations in Coal Trading. It strives to create longterm value for all our stakeholders through exploration, discovery, sustainable development and utilisation of diversified natural resources.

The Companys steadfast focus remains on delivery and operational excellence while increasing technology adoption and digitalisation to enhance profitability and deliver metals of the future, while moving towards responsible growth, are good governance, and social licence to operate. The Company demonstrates world class standards of governance, safety, sustainability, and social responsibility. Its our fundamental values of "Trust, Entrepreneurship, Innovation, Excellence, Integrity, Care and Respect" that guide and help us accomplish our purpose. These serve as the foundation for everything we do and accomplish. Furthermore, India is largest market, which is one of the most stable and fastest growing economies in the world. Indias continued strength augurs well for its business performance.

For the year ended 31^st March, 2025, the Group actively responded to challenges and difficulties, focusing on key annual initiatives and operational objectives. By strengthening operational management, enhancing quality and efficiency, deepening reform and innovation, and accelerating transformation and development.

Despite a decline in market prices for coal, coal chemicals, and other key products.

During the reporting period, the Groups major business segments such as coal, coal chemical, coal mining equipment and finance all maintained sound operation. The coal enterprises continuously optimized production planning and accelerated advanced production capacity release, achieving a record-high annual self-produced commercial coal output. The coal chemical enterprises effectively coordinated safety production, major equipment overhauls, and project construction, ensuring "work safety, stable production, long-period operation, fully-loaded operation and producing quality products." Despite year-on-year declines in the selling prices of the segment benefited from effective cost control and lower procurement prices for raw coal and fuel coal. Strong management capabilities and the synergy of an integrated coal-to-chemicals development model. The coal mining equipment business pursued business model innovation, actively promoting sales of integrated product solutions and full-lifecycle equipment services while cultivating and consolidating its position in the mid-to-high-end and intelligent upgrade markets. Finance Company continued to enhance the optimization and upgrade of its treasury system, improving centralized and refined capital management. Its ability to provide financial support and create value for the Group continued to strengthen.

The Company has incorporated a wholly owned subsidiary in Indonesia in the name of PT Virya Resources Indonesia. The Company is planning to be in the business of Coal, Copra and Crude Palm Oil and will venture into Gold Ornaments trading in the markets of India, Indonesia, Vietnam and other South East Asian Markets.

Further, the Board of Directors also envisages to explore different avenues to expand its business through agreements, contacts, acquisitions, joint ventures, other strategic alliances to broad-base the business interests in the agricultural and e-commerce solutions with a special focus on new age businesses opportunities and possibilities and obviously company need funds for all these plans and activities. Therefore, considering the growth and expansion plans, the company has authorized the Board of Directors to borrow funds as loans from the Banks, Financial Institutions, including NBFCs to meet the future growth needs of the company.

In Coal Trading the opportunities and threats on the companys business are summaries below.

Opportunities & Threats in Coal Trading Sector:

Opportunities:

Increase in demand due to rapid growth in Power Sector

Government support to boost coal production

Coal to remain the key primary energy source in India.

Large scale rural electrification and power for all under UDAY scheme.

Enhanced demand of power due to increased use of electric vehicles.

Strong economic growth in India and resultant demand for energy, particularly coal as an energy source.

Being a cheaper source of energy compared to alternate sources available in India, demand to continue to remain strong.

Opportunity to adopt coal to liquid and coal to gas technology.

Threats:

Decrease in coal demand and Increase in proportion of renewables in the energy mix.

Energy storage solutions.

Our Philosophy is "Human Resource" is the most important factor for achieving efficiency, productivity and quality. Human Relationship Management assumes great importance in the Company and human resources are the great asset. During the year under review, the Company continued its emphasis on Human Resource Development as one of the critical area of its operation. Realizing that the human capital being the Companys greatest asset, the up gradation of skills, personality and attitude of its employees is always looked after. Measures are also being implemented for enhancing the motivation and commitment of the work force and building up a unique positive work culture. Employer - Employee relation throughout the year were cordial. The Company organizes periodical trainings to encourage and develop vital human resource. All the efforts are aimed to ensure develop and nurture the entrepreneurial attitude and skill among the employees. The Company places on record its appreciation for the valuable contributions made by employees at all levels.

Certain statements in the 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 which have been prepared in compliance with the requirements of the Companies Act, 2013, the Accounting Standards issued by the Institute of Chartered Accountants of India, the Listing Agreements and all other applicable rules and regulations. The actual performance may vary depending on the market fluctuations, changes in Government policies, rules and regulations change in economic conditions nationally as well as internationally.