Visaman Global Sales Ltd Management Discussions

Pursuant to Regulation 34(2} (e} of SEBI LODR Regulations 2015, a Management Discussion and Analysis report is given below: -

[Al Industry structure and developments:

One of the primary forces behind industrialization has been the use of metals. Steel has traditionally occupied a top spot among metals. Steel production and consumption are frequently seen as measures of a countrys economic development because it is both a raw material and an intermediary product. Therefore, it would not be an exaggeration to argue that the steel sector has always been at the forefront of industrial progress and that it is the foundation of any economy. The Indian steel industry is classified into three categories -major producers, main producers and secondary producers.

India is the worlds second-largest producer of crude steel, with an output of 125.32 MT of crude steel Indias finished steel consumption stood at 119.17 MT in FY23, 138.5 MT in FY24 and 111.25 MT in FY25* Indias domestic steel demand is estimated to grow by 9-10% in FY25 as per ICRA.

(Source:ibef.org)

The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to Indias manufacturing output. The Indian steel industry is modern, with state-of-the-art steel mills. It has always strived for continuous modernization of older plants and up-gradation to higher energy efficiency levels.

In the past 10-12 years, Indias steel sector has expanded significantly. Production has increased by 75% since 2008, while domestic steel demand has increased by almost 80%. The capacity for producing steel has grown concurrently, and the rise has been largely organic.

The steel industry has emerged as a major focus area given the dependence of a diverse range of sectors on its output as India works to become a manufacturing powerhouse through policy initiatives like Make in India. With the industry accounting for about 2% of the nations GDP, India ranks as the worlds second-largest producer of steel and is poised to overtake China as the worlds second-largest consumer of steel. Both the industry and the nations export manufacturing capacity have the potential to help India regain its favourable steel trade balance.

The National Steel Policy, 2017 envisage 300 million tonnes of production capacity by 2030-31. The per capita consumption of steel has increased from 57.6 kgs to 7 4.1 kgs during the last five years. The government has a fixed objective of increasing rural consumption of steel from the current 19.6 kg/per capita to 38 kg/per capita by 2030-31.

(Source: https://www.ibef.org/industry /steel)

Huge scope for growth is offered by Indias comparatively low per capita steel consumption and the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railways sectors.

INVESTMENTS

Some of the major investments in the Indian steel industry are as follows:

• India and Japan held the third Steel Dialogue on Feb 4, 2025, in New Delhi, discussing economic trends, steel trade, and industry developments. India highlighted policy initiatives, green steel efforts, and investment opportunities for Japan.

• In February 2025, during the Bengal Global Business Summit, about 50% of the Rs. 26,000 crore (US$ 3.02 billion) investment proposals received by Jharkhand government in Kolkata pertain to the steel sector.

• In February 2025, JSW Group announced a Rs. 1,00,000 crore (US$ 11.60 billion) investment to set up a 25 MT steel plant in Maharashtras Gadchiroli district over seven to eight years. The project, expected to be the worlds largest and most eco-friendly, will drive economic growth and job creation in Vidarbha.

The Union Ministry of Steel launched PLI Scheme 1 .1 on January 6, 2025, with a Rs. 6,322 crore (US$ 733.40 million) outlay to boost specialty steel production and attract investments. Covering five key product categories, the scheme eases norms to reduce imports, enhance domestic manufacturing, and improve energy efficiency, with applications open until January 2025.

[Bl OPPURTUNITIES& THREATS

We believe that the following competitive strengths have contributed to our business growth and will continue to drive our success.

1. Strong Customer Base

Our long-standing relationship with our customers has been one of the most significant factors contributing to our growth. Our commitments to timely delivery, quality, door step delivery have been strong contributing factors to our robust customer relations. Over the years, we have steadily developed a robust base of customers. Even though we do not have any long-term supply agreements with them, we have continually received repeat business from many of our customers. This indicates their level of confidence in our ability to deliver our products. This has helped us to maintain a long-term working relationship with our customers and improve our customer retention strategy. We believe that our existing relationship with our clients represents a competitive advantage in gaining new clients and increasing our business. Further, because of the trust of our customers, we have been able to attain orders from a diverse range of client base.

2. Wide range of our products

Our Company offers a wide range of steel products used in various industries. We believe that maintaining a variety of products provides us with an opportunity to cater to diverse needs of different customer segment. Our product portfolio includes different specification of steel pipes, structural steel, coils, sheets, plates. We also provide facility of customization w.r.t specific size, length, breadth, thickness etc., by arranging from our vendors. We believe our comprehensive range of products and this facility of customization enable us to capitalize on growth opportunities and demand in our industry.

3. Leveraging the experience of our Promoters and management team

We are led by qualified and experienced Promoters, Board of Directors and Key Managerial Personnel, who we believe have knowledge and understanding of the steel industry and have the expertise and vision to scale up our business. Our Promoters have played a key role in guiding, developing, and growing our business.

The knowledge and experience of our Promoters and Management, and their continued engagement with clients, provides us with a significant competitive advantage as we grow our businesses.

Furthermore, the industry expertise of our Management allows the long-term strategic direction of our business to be updated with the latest trends.

4. Comprehensive solution for logistics requirement

We are providing comprehensive third-party logistics services, end-to-end customized logistics solutions to our clients. Our Company focuses on attaining highest level of customer satisfaction. Our logistics facility helps to provide smooth delivery of products at door step of our customers.

5. Existing Supplier Relationship

Our existing supplier relationship protects the business with terms of supply and pricing of the products, the quality of the products offered etc. We, being a small and medium size organization, rely on personal relationships with our suppliers.

Our Company enjoys existing relationship with our suppliers. Further we also leverage the past experience of our promoters and management in maintaining effective supplier relationship.

6. Location Advantage

Reducing cost of operation is something which our Company has been focusing on since its inception. We sell our products in different geographies. As a cost-effective measure, we operate from our registered office at Rajkot in the state of Gujarat and stock yards at Gujarat and Godowns in the state of Gujarat and Madhya Pradesh which are strategically located and is well connected by roads with the rest of the country. Hence reducing the cost of transportation substantially without compromising on the quality of the material procured. It also ensures us a continuous supply of products.

7. ISO Certified Organization

We are an ISO 9001 :2015 certified organization. ISO 9001 :2015 specifies requirements for a quality management system of an organization. Having obtained the certification, it ensures the quality management system followed in our Company is of satisfying level.

8. In depth understanding of customers requirements

Our strength lies in understanding the requirement of the customer and our execution capabilities to provide the product as per the client requirements. This involves understanding the technical requirements like the tensile strength of the bars, following the bar bending schedules, permitted levels of tolerances as well the schedule of requirement of the client. We act as reinforcement partners of the client and make the product available of the right quality at the right time to meet their construction cycle requirements. This also helps the clients to plan in advance and use the manpower resources available on site to get the optimal output.

9. Company is liable to customers, suffer adverse publicity and incur substantial costs as a result of defects in our products, which in turn could adversely affect our business operations and our sales could be diminished if we are associated with negative publicity.

10. The demand and pricing in the steel industry is volatile and are sensitive to the cyclical nature of the industries it serves. A decrease in steel prices may have adverse effect on our business, results of operations margins and financial condition.

11. Our business is a High Volume-Low Margin Business.

12. Dependency upon Customers, suppliers are much in this business and any disruption in Customer relationship or due to any other reason and disruption of supply may affect business.

13. Our trading activities are exposed to fluctuations in the prices of traded goods.

Besides this, Companies Internal Risk, Credit Risk, Liquidity Risk, Maturities of Financial Liabilities, Interest rate risk, Human resources risk i.e. risk of unable to recruit and retain skilled personnel etc. are part and parcel of risk factors of the Company. Further Company is exposed to various laws and extensive government regulations and if we fail to obtain, maintain or renew our statutory and regulatory licenses, permits and approvals required in the ordinary course of our business, including environmental, health and safety laws and other regulations, our business financial condition, results of operations and cash flows may be adversely affected.

In Furtherance, Natural calamities, climate change and health epidemics could adversely affect the Indian economy and our business, financial condition, and results of operations. In addition, hostilities, terrorist attacks, civil unrest and other acts of violence could adversely affect our business, financial condition and results of operations.

Company is watching and analyzing the trends of market situation and accordingly will take various steps to mitigate the risks of the business.

[Cl SEGMENT/PRODUCT WISE PERFORMANCE

The Company is working in single reportable segment namely the trading Segment includes trading of ERW Mild Steel (Ms), Galvanised (Gi), Pre-Galvanised (p) & CRC -Square, Rectangle & Round Hollow Tubes, Boiler Tube, Spiral Pipe, TMT, Hot Rolled (HR) Plate, CRC Coils & Sheets, Colour Coated Coils & Sheets, Pre-Galvanised (GP) Coils & Sheets. Further In this segment company has earned revenue of Rs. 26,671.82 (Rs. in Lacs) in comparison to previous year of Rs. 30,796.79 (Rs. in Lacs).

Our spectrum of products

We offer a gamut of products, which is divided into following categories i.e., pipes, structural steel, coils, sheets, brief description of our Products is provided as under:

[D] INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The internal control mechanism in the Company is designed to protect its assets and authorise, record, and correctly report all transactions on time. It conforms to the local statutory requirements and meets the highest global standards and practices to remain competitive in evolving business dynamics.

The internal control framework monitors and assesses all risks associated with current activities and corporate profiles, including development risks, partner interest risks, and commercial and financial risks.

While ensuring flawless execution of accounting and financial processes, the internal control mechanism reviews the manual and automated processes for transaction approval.

Your Company is committed to maintaining high standards of internal controls designed to provide accuracy of information, efficiency of operations, and security of assets. The Company has adequate internal controls commensurate with the size and nature of its operations to ensure orderly and efficient conduct of business.

These controls ensure the safeguarding of assets, prevention and detection of fraud and error, Irregularities. These controls ensure the accuracy and completeness of the accounting records, timely preparation of reliable financial information and adherence to Companies policies, procedures and legal obligations. The audit committee of the Board of Directors meets periodically to review the performance as reported by the auditors. Further, Company has also appointed Internal Auditor.

[E] HUMAN RESOURCE

The Company believes that sustainable and profitable growth can only be achieved through a strong performance-driven culture, where employees are engaged, empowered, and encouraged to reach their full potential. By consistently reinforcing accountability and ownership, the Company fosters a sense of partnership, enabling employees to play an active role in every stage of its transformation journey.

The Company has fostered a stimulating work environment that supports continuous learning and development at every stage of an employees career-a key driver of its ongoing growth. A range of benefits, including regular training programs and performance-linked incentives offered across the country, contribute to maintaining a low attrition rate.

There has been no material development on the Human Resource/ Industrial Relations Front during the year. The Company always has adopted positive approach towards human relation development. Industrial relations remained cordial throughout the year and there was no incidence of strike, lock-out, etc. There were no Complaints from any of the employees of the Company. The Company is taking all precautions measures that ore required to be followed for prevention and safeguard of the Human Assets.

[Fl RISK AND CONCERNS

The Company has established a robust and proactive risk management framework designed to systematically identify, assess, and mitigate potential risks across all areas of operation. This framework not only safeguards assets and resources but also ensures business continuity and regulatory compliance. By embedding risk awareness into strategic decision-making, the Company is able to make informed choices that support its long-term goals, resilience, and sustainable growth.

[Gl OUTLOOK

As we look ahead to the coming year, Company is poised to build on its strong foundation in the steel tubes and pipes industry. With a robust market position and a history of delivering high-quality products, we are confident in our ability to navigate the evolving challenges and capitalize on emerging opportunities.

• Market Dynamics

The global steel tubes and pipes market is expected to experience steady growth in the next year, driven by increasing demand from sectors such as construction, infrastructure development, oil & gas, and renewable energy. The ongoing trend toward industrialization, urbanization, and the rise of renewable energy projects presents opportunities for growth, particularly in emerging markets.

However, we acknowledge that volatility in raw material prices, supply chain disruptions, and geopolitical uncertainties may continue to pose risks. In response, we remain committed to diversifying our supply base, optimizing production efficiency, and mitigating risks associated with fluctuations in steel prices. We will continue to monitor and adapt to changing market conditions to protect our margins and sustain growth.

• Strategic Priorities

Innovation and Product Development: We will continue to innovate, focusing on developing advanced steel tube and pipe solutions that meet the evolving needs of our customers. Our R&D team is committed to improving product quality, enhancing durability, and expanding our offerings in specialized segments such as high-strength, corrosion-resistant, and customized tubing.

• Operational Efficiency

We are committed to improving operational efficiency across all facets of our business. By implementing cutting-edge technologies and optimizing production processes, we aim to increase productivity, reduce costs, and maintain the highest standards of quality control.

• Sustainabilitv Initiatives

Sustainability is a key focus for Company, and we plan to further enhance and develop business alongside the environmental and social governance (ESG) efforts in the year ahead. This includes reducing our carbon footprint, investing in energy-efficient technologies, and adhering to global sustainability standards to meet the demands of eco-conscious customers.

• Geographic Expansion

Our strategy also includes expanding our reach into new markets. We are actively exploring growth opportunities in emerging regions, where demand for steel tubes and pipes is rising due to infrastructural investments and growing industrialization.

• Customer Relationships

Building and maintaining strong customer relationships remains at the heart of our strategy. We will continue to focus on delivering exceptional customer service and tailor-made solutions, ensuring that we are the preferred supplier for our clients across various industries.

• Financial Outlook

We expect moderate growth in revenue, driven by increasing demand for our products, particularly in the energy, infrastructure, and construction sectors. While we anticipate potential pressure on margins due to fluctuating material costs, we believe our ongoing cost optimization initiatives and strategic pricing will help sustain profitability. As we continue to expand our product offerings and geographic reach, we are confident that Company is well-positioned to capture new opportunities and continue its positive trajectory. We remain committed to maintaining a strong balance sheet, optimizing working capital.

[Hl FINANCIAL PERFORMANCE

While the company faced a decline in total revenue, it managed to achieve higher profitability due to strong cost control and efficiency improvements. Heres a detailed overall analysis:

1. Revenue Performance:

Decline in Total Revenue: Total revenue decreased by approximately 13.4%, driven primarily by a decline in revenue from operations (down by about 13.7%). This suggests that the company is experiencing challenges in generating sales, which could be linked to factors like market conditions, competition, or a reduction in customer demand.

2. Expense Management:

i) Cost Reduction: A significant positive takeaway is the companys ability to reduce its costs. Total expenses dropped by about 13.7%, in line with the decline in revenue. Key cost categories, such as material consumption and employee benefits, were effectively controlled, resulting in a substantial reduction in expenses. The company has been able to streamline operations, which is vital for maintaining profitability during tough times. ii) Inventory Management: The company also managed to reduce its inventory (positive change}, which could reflect efforts to improve working capital or the impact of reduced production due to lower demand. This is a favorable sign of efficient inventory control.

3. Profitability:

i) Profit Growth Despite Revenue Decline: Despite the drop in revenue, the company saw an increase in profit before tax by 44.1 %, which is a significant achievement. The profit from continuing operations after tax grew by 63.2%. This demonstrates the companys ability to maintain or even improve profitability through cost-cutting measures, improved operational efficiency, and effective tax management.

ii) Earnings Per Share (EPS) Increase: The company posted a notable increase in both basic and diluted EPS (up by 27.7%). This reflects stronger profitability on a per-share basis, which should be seen positively by shareholders. The increase in EPS despite a drop in revenue indicates that the companys management is focusing on maintaining profitability even in challenging times.

[11 KEY FINANCIAL RATIO

Financial Metric	Previous Value	Current Value	Change I (%)	Reason
Return on Capital Employed (ROCE}	11.35%	8.28%	Decrease J 27.06% employed,	due to increased capital reducing efficiency.

(J) DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

The Net worth of the Company as on 31st March, 2025 is Rs. 2817.8 Lacs in comparison to previous year of Rs. 1144.72 Lacs. Change in net worth is due to in crease in Paid up by way of IPO, security premium and increase in profitability of the Company in comparison to previous year.

(K) DISCLOSURE OF ACCOUNTING TREATMENT

The Companys financial statements have been prepared in accordance with Generally Accepted Accounting Principles in India. ("Indian GAAP"). Indian GAAP comprises mandatory accounting standard as prescribed under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014. The Financial statements have been prepared on an accrual basis and under the Historical Cost Convention and the Companies (Accounting Standards) Amendment Rules 2016 and relevant provision of the Companies Act, 2013. Company have complied in all with and Company has not followed different treatment than prescribed in the accounting standard and as such no explanation is required to be given.

CAUTIONARY STATEMENT

Management Discussion and Analysis Report are based on certain assumptions and expectations of future events and may contain Forward Looking statements. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized by the Company. Actual results could differ materially from those expressed or implied.

The Company assumes no responsibility to publicly to amend, modify or revise any of these statements on the basis of any subsequent developments, information or events.

Place: Rajkot	For and on Behalf of
Date: 11th August, 2025	VISAMAN GLOBAL SALES LIMITED
	S/d
	Mitulkumar Sureshchandra Vasa
	Chairman and Managing Director
	DIN: 07789750