Yogi Infra Projects Ltd Management Discussions

The key issues of the Management Discussion and Analysis are given below.

To avoid duplication of information between the Directors Report and the Management Discussion and Analysis, certain matters have been dealt with in one place and cross-referred to in the other. Yogi Infra Projects Limited (the Company or YIPL), formerly known as Yogi Sung-Won (India) Limited, is listed on BSE Limited and is engaged in infrastructure development, real estate development and allied advisory activities, including the redevelopment of residential and commercial properties, partly through its subsidiaries, Bini Builders Private Limited and Moongipa Realty Private Limited. During the year under review, the Company continued to position itself for redevelopment and infrastructure opportunities, principally in and around the Mumbai Metropolitan Region.

Global Outlook:

The global outlook for FY 2027 is expected to be shaped by a world economy that is growing more slowly but still expanding, a cost of capital that has stopped falling, and a construction cycle recovering from the contraction of the preceding year.

(a) World Economic Growth and the Cost of Capital:

Growth Environment: The International Monetary Fund, in its July 2026 World Economic Outlook Update, projected world output growth of 3.0% in 2026 and 3.4% in 2027, against 3.5% in 2025, with an energy supply shock from the conflict in West Asia offset by artificial-intelligence-driven demand.

Inflation and Policy: Global headline inflation is projected at 4.7% in 2026 and 3.9% in 2027, and global disinflation has stalled, keeping the cost of capital higher for longer than was expected a year ago.

Implications for the Company: Real estate and construction are among the most interest-rate-sensitive activities. A cost of capital that stays higher for longer lengthens project gestation, raises the carrying cost of land and work-in-progress, and places a premium on redevelopment and joint development models in which land cost is not funded upfront. Consolidated finance costs for the year were 438.40 lakh, against nil in the preceding year, following the drawdown of mortgage term finance at the subsidiary level.

(b) Global Construction Cycle:

Output Recovery: Oxford Economics has projected a rebound of approximately 2.9% in global construction activity in 2026, following a decline in 2025, led by the United States and South and South-East Asia.

Structural Themes: A pivot in public infrastructure expenditure from transport towards utilities and civil engineering, and a persistent shortage of skilled construction labour, India included.

Implications for the Company: A recovering global construction cycle supports the prices of steel, cement and other traded inputs, a cost headwind for a developer, but also sustains the flow of institutional capital into Indian real assets.

Outlook Summary:

Moderate Growth with a Firmer Cost of Capital: FY 2027 is expected to be a year of moderate global growth in which the construction cycle improves but the cost of capital does not materially ease. For a group that has moved during the year to a levered project balance sheet, capital discipline and the selection of projects with low upfront land cost will matter more than the pace of aggregate growth.

Indian Economy and Industry Outlook:

The outlook for India in FY 2027 is shaped by a strong domestic growth base, an inflation cycle that has turned upward from an exceptionally low FY 2026, a large and rising programme of public capital expenditure, and a residential market in which volumes have softened even as values have held.

(a) Indias Macroeconomic Position:

A Change in the Statistical Base: On February 27, 2026 a new national accounts series with base year 2022-23 was released and the Consumer Price Index was rebased to 2024 = 100. Figures cited below are on the revised bases unless otherwise stated.

Growth: Real gross domestic product grew 7.7% in FY 2025-26, against 7.1% in the preceding year, and nominal gross domestic product grew 8.9% to 346.36 lakh crore. For FY 2026-27, the Reserve Bank of India has projected growth of 6.7%, the Economic Survey 2025-26 a range of 6.8% to 7.2%, and the International Monetary Fund 6.4% for 2026.

Inflation and Interest Rates: Headline retail inflation touched an eight-year low of 1.6% in July 2025, and the repo rate was reduced by a cumulative 100 basis points during the year to 5.25%. That position has since reversed: the repo rate is held at 5.25% with a neutral stance, retail inflation had risen to 4.45% by July 2026, and the Reserve Bank projects an average of 5.0% for FY 2026-27. Input and working capital costs are therefore expected to be higher in FY 2027, while transmission of the easing already delivered continues to support housing affordability.

Consumption and Investment: Private final consumption expenditure grew 7.7% in FY 2025-26. Gross fixed capital formation, the aggregate most directly relevant to construction, grew 8.2% for the year and 10.8% in the fourth quarter, and the financial, real estate and professional services segment was estimated to grow 9.9%, the strongest of the major segments.

External Sector and Business Activity: Exports of goods and services reached US$ 860.09 billion in FY 2025-26, an increase of 4.22%, and foreign direct investment inflows were US$ 58.85 billion, an increase of 18%. The rupee closed the year at approximately 95.5 to the United States dollar and purchasing managers indices remained in expansion throughout.

(b) The Indian Real Estate Sector:

Market Size and Contribution: The Indian real estate sector was estimated at 54.96 lakh crore, or approximately US$ 650 billion, in 2025, and is projected to reach approximately US$ 5.8 trillion by 2047, or 15.5% of gross domestic product against approximately 7.3% at present. It remains the second-largest employment generator after agriculture.

Housing Requirement: The urban housing shortage is estimated at approximately 10 million units, with a further requirement of approximately 25 million affordable units by 2030 and 93 million units by 2036, set against a market in which affordable supply has fallen to a small fraction of new launches.

Transparency and Institutionalisation: India was ranked 31st of 89 markets in the JLL Global Real Estate Transparency Index, entering the Transparent tier for the first time, which lowers the cost of institutional capital for developers able to meet institutional disclosure standards.

Institutional Investment: Institutional investment into Indian real estate reached a record 98,942 crore in calendar year 2025 and 40,801 crore in the first half of 2026, an increase of 23% year on year, with domestic investors accounting for approximately 64% of the total.

(c) Residential Real Estate:

Sales and Value: Housing sales across the top seven cities were 3,95,625 units in calendar year 2025, a decline of 14%, while the aggregate value of those sales rose 6% to approximately 6 lakh crore and average prices rose approximately 8%. The market is transacting fewer but materially larger homes.

Recent Quarters: Sales across the top seven cities were 1,01,650 units in the quarter ended March 2026, an increase of 9% year on year, and approximately 90,715 units in the quarter ended June 2026, a decline of 6%. Unsold inventory rose approximately 10% year on year to approximately 6.16 lakh units, and average prices rose approximately 7% year on year.

Segment Mix: Homes priced below 40 lakh accounted for only approximately 6% of new launches in the quarter ended June 2026, while homes priced above 1.5 crore accounted for approximately 47%. The affordable and lower mid-income segments are correspondingly under-served.

Implication for the Company: Rising premium inventory and an under-served mid-income segment argue for disciplined product positioning and for project structures that do not require the developer to carry land cost through a long sales cycle. Consolidated revenue from operations declined to 4,718.62 lakh from 21,363.83 lakh, reflecting the timing of revenue recognition on project completion rather than a withdrawal from the market, with inventory of 6,776.83 lakh and capital work-in-progress of 6,151.05 lakh carried forward into FY 2027.

(d) The Mumbai Metropolitan Region and Redevelopment:

Market Position: The Mumbai Metropolitan Region remains the largest residential market in the country, accounting for approximately 32% of sales and approximately 30% of new supply across the top seven cities in 2025, at an average price of approximately 17,600 per square foot, the highest of any Indian market.

Registrations: Property registrations in Mumbai were 80,221 in the first half of calendar year 2026, an increase of 6% and the highest first-half figure since 2013, and registrations in August 2026 reached a fourteen-year high for the month, indicating that demand is broadening across buyer segments.

Redevelopment as the Principal Supply Route: In a land-constrained market, the redevelopment of ageing housing stock rather than greenfield construction is the principal route by which new supply reaches the market, and buyers have shown a clear preference for redevelopment projects in established neighbourhoods. Redevelopment is structurally attractive because the land is contributed by the society rather than acquired for cash, materially reducing upfront capital and the interest burden during the approval period.

Policy Support for Self-Redevelopment: The Self Group Redevelopment Authority, constituted in 2025, had received more than 1,600 proposals, of which 46 had secured financing and 21 projects had been completed, with approximately 1,000 crore agreed in principle through the National Cooperative Development Corporation against a mobilisation target of approximately 25,000 crore. An organised self-redevelopment segment creates demand for development management, project execution and advisory services.

(e) Construction and Infrastructure:

Market Size: The Indian construction market was estimated at approximately US$ 685.0 billion in 2025 and is projected to reach approximately US$ 1,245.7 billion by 2034, a compound annual growth rate of approximately 6.87%, with western India accounting for approximately 31.6% of the market.

Public Capital Expenditure: The Union Budget 2026-27 provided for public capital expenditure of approximately 12.2 lakh crore, against a revised estimate of approximately 11 lakh crore for FY 2025-26, together with an Infrastructure Risk Guarantee Fund for construction-phase risk, challenge-based financing for City Economic Regions, and new high-speed rail, waterway and freight corridors.

Input Costs: With effect from September 22, 2025, the goods and services tax on cement and steel was brought to 18%, estimated to reduce construction costs by approximately 5%. That relief is being offset by the reversal of the inflation cycle, firmer global commodity prices and shortages of skilled labour.

(f) Commercial, Retail and Institutional Real Estate:

Office: Gross office absorption reached approximately 82.6 million square feet in calendar year 2025, a third consecutive record year, and gross leasing in the quarter ended March 2026 was a record 21.50 million square feet.

Real Estate Investment Trusts: Listed real estate investment trusts had a market capitalisation of approximately 1,00,000 crore in November 2025, and the Small and Medium REIT framework has opened a securitisation route for smaller commercial assets, with a potential market estimated in excess of US$ 60 billion, providing developers an exit route for completed commercial assets that did not previously exist.

(g) Challenges and Opportunities:

Challenges: Average retail inflation is projected to rise from approximately 2.0% in FY 2025-26 to 5.0% in FY 2026-27, raising input and working capital costs. Residential volumes have declined for consecutive quarters while unsold inventory has risen approximately 10%, and approval timelines for redevelopment schemes remain long. Equity market conditions were adverse, with the Nifty Smallcap 100 declining 5.5%, tightening growth capital for smaller listed companies, and competition in Mumbai redevelopment includes large listed developers with substantially greater balance sheet capacity.

Opportunities: Public capital expenditure is at a record and extends to construction-phase risk guarantees, the goods and services tax on cement and steel has been reduced, Pradhan Mantri Awas Yojana Urban 2.0 has created a funded pipeline in the segments private supply has vacated, and Maharashtra has institutionalised self-redevelopment. Mumbai property registrations are at their highest since 2013, buyer preference has moved towards redevelopment in established locations, and institutional capital is available in record volume and is now predominantly domestic.

Outlook Summary:

A Value Market Rather Than a Volume Market: The Indian economy is expected to remain among the fastest growing major economies in FY 2027, with growth of approximately 6.4% to 7.2% projected against 7.7% achieved in the year under review, and the residential market is expected to remain a value market rather than a volume market. For the Company, the opportunity lies in the redevelopment of existing urban stock and in a record public infrastructure programme, rather than in greenfield development competing on land cost.

Government Initiatives

The Government of India and the Government of Maharashtra have launched a number of initiatives that support the industry in which the Company operates, spanning housing, urban development, infrastructure finance, indirect taxation and sector regulation.

(a) Pradhan Mantri Awas Yojana Urban and Urban 2.0:

Objective: To provide pucca housing to all eligible urban households and, under the second phase, to address the housing requirement of one crore economically weaker section, low-income group and middle-income group families through beneficiary-led construction, affordable housing in partnership, an interest subsidy scheme and affordable rental housing.

Impact on the Company: More than one crore houses have been delivered under the Mission, and under Urban 2.0 cumulative sanctions had reached 18.38 lakh houses as at August 8, 2026. The affordable housing in partnership and affordable rental housing routes are open to private developers and represent funded demand in the segment from which private supply has largely withdrawn.

(b) Union Budget 2026-27 Capital Expenditure and Infrastructure Finance:

Objective: To sustain the public investment cycle and to reduce the construction-phase risk borne by private participants in infrastructure projects.

Impact on the Company: Public capital expenditure of approximately 12.2 lakh crore has been provided for FY 2026-27, an Infrastructure Risk Guarantee Fund is to be established, and challenge-based financing has been provided for City Economic Regions, together with new high-speed rail, waterway and freight corridors, each expanding the addressable market for infrastructure contracting.

(c) Goods and Services Tax Reform on Construction Materials:

Objective: To simplify the rate structure and to reduce the tax incidence on construction and housing inputs.

Impact on the Company: With effect from September 22, 2025, cement moved from 28% to 18% and steel was likewise brought to 18%, a change estimated to reduce construction costs by approximately 5%, improving project viability for the developer and affordability for the purchaser.

(d) Real Estate (Regulation and Development) Act, 2016:

Objective: To regulate and promote the real estate sector, to protect the interest of allottees, and to provide for the speedy redressal of disputes.

Impact on the Company: Mandatory project registration, escrow of collections and periodic disclosure have raised the cost of entry for unorganised participants and improved buyer confidence in registered developers. For a listed and RERA-compliant developer, the Act is a competitive advantage rather than only a compliance cost.

(e) Foreign Direct Investment, REITs and SM REITs:

Objective: To deepen the pool of capital available to real estate and to create liquid, regulated vehicles through which investors can hold real estate.

Impact on the Company: One hundred per cent foreign direct investment is permitted under the automatic route in construction development projects, subject to conditions. Together with listed REITs, the Small and Medium REIT framework and record institutional investment of 98,942 crore in 2025, these mechanisms widen the range of capital structures available for project funding and asset exit.

(f) Maharashtra Self-Redevelopment Framework:

Objective: To enable housing societies in Maharashtra to undertake redevelopment on their own account with institutional financing and a single-window approval mechanism.

Impact on the Company: The Self Group Redevelopment Authority had received more than 1,600 proposals, of which 46 had obtained financing and 21 projects had been completed, against a financing mobilisation target of approximately 25,000 crore. Societies undertaking self-redevelopment require development management, project management and technical advisory services, an addressable opportunity for the Company.

(g) SWAMIH Investment Fund:

Objective: To provide last-mile financing for stalled but viable affordable and middle-income housing projects.

Impact on the Company: The Fund has enabled the completion of more than 58,000 homes and a second tranche has been announced, reducing the risk of acquiring or completing partially built projects, a route by which a developer can add a delivery record without a full development cycle.

These initiatives collectively expand public investment, reduce the tax incidence on construction inputs, create funded demand in the affordable segment, institutionalise redevelopment and widen the range of capital available to the sector.

Road Ahead

The industry in which the Company operates is entering a phase in which the constraint on growth is the availability of executable projects and of capital, rather than the existence of demand. The principal directions for the coming years are:

Continued redevelopment of ageing urban housing stock in the Mumbai Metropolitan Region, the principal route by which new supply reaches a land-constrained market and one which requires materially less upfront capital than greenfield development.

Institutionalisation of self-redevelopment in Maharashtra through a dedicated authority and a financing mobilisation target of approximately 25,000 crore, creating demand for development management and project execution services.

A record programme of public capital expenditure of approximately 12.2 lakh crore for FY 2026-27, extended by an Infrastructure Risk Guarantee Fund addressing construction-phase risk.

A quantified and largely unmet affordable housing requirement, with an urban shortage of approximately 10 million units against affordable supply of approximately 6% of new launches, and a funded route to that demand through Pradhan Mantri Awas Yojana Urban 2.0.

Reduction of the goods and services tax on cement and steel to 18% with effect from September 22, 2025, estimated to reduce construction costs by approximately 5%.

Record institutional investment into Indian real estate, at 98,942 crore in 2025 and 40,801 crore in the first half of 2026, now predominantly domestic in origin.

Maturing exit routes for completed commercial assets through real estate investment trusts and the Small and Medium REIT framework.

Continued improvement in market transparency following Indias entry into the Transparent tier of the Global Real Estate Transparency Index, lowering the cost of institutional capital for compliant developers.

Overall, FY 2027 is expected to be a year in which the Group converts the capital work-in-progress and inventory carried at March 31, 2026 into recognised revenue, and in which the Company seeks executable redevelopment and infrastructure mandates that do not require it to carry land cost through a long approval cycle.

Our Business:

The Company is engaged in infrastructure development and real estate development, including the redevelopment of residential and commercial properties and allied advisory activities, partly through its subsidiaries, Bini Builders Private Limited and Moongipa Realty Private Limited, in which the Company held 63.08% and 74.02% respectively as at March 31, 2026.

During the year under review, the Company continued to pursue redevelopment opportunities and infrastructure contracts while keeping operating expenses under tight control. The Company did not generate revenue from operations on a standalone basis, and the Groups project activity is carried on principally through Moongipa Realty Private Limited.

(a) Standalone business performance ( in lakh):

On a standalone basis, the Company recorded total income of 32.47 for the financial year ended March 31, 2026, as against 26.06 in the preceding year, arising entirely from non-operational sources. Total expenses were 36.23, as against 33.40, principally on account of employee benefits expense which rose to 22.84 from 14.78. The Company recorded a loss before tax of 3.94, as against 7.92, and a loss after tax of 2.96, as against a profit after tax of 5.57, the movement being attributable to a lower deferred tax credit of 0.98 against 13.49. Basic and diluted earnings per share were (0.02), as against 0.03.

(b) Consolidated business performance ( in lakh):

On a consolidated basis, the Group recorded revenue from operations of 4,718.62, as compared to 21,363.83 in the preceding year, and other income of 175.86, as compared to 131.04. The decline reflects the timing of revenue recognition on project completion; the Group carried inventory of 6,776.83 and capital work-in-progress of 6,151.05 at the close of the year, against 9,836.65 and 3,448.34 respectively. Total expenses were 4,958.61, as compared to 21,529.93, and included finance costs of 438.40 against nil, following the drawdown of mortgage term finance at the subsidiary level. The consolidated loss before tax was 65.43, as compared to 33.66, and the loss after tax 20.70, as compared to 20.73, of which a profit of 7.09 is attributable to the owners of the Company and a loss of 27.79 to non-controlling interests.

Opportunities for our business:

Redevelopment of ageing residential and commercial buildings in the Mumbai Metropolitan Region, in which land is contributed by the society rather than acquired for cash, materially reducing the upfront capital requirement and interest burden.

Institutional support for self-redevelopment in Maharashtra, with more than 1,600 society proposals lodged with the Self Group Redevelopment Authority, creating demand for development management and project execution services.

Demonstrated buyer preference for redevelopment projects in established Mumbai neighbourhoods, supported by property registrations at their highest first-half level since 2013.

A record public capital expenditure prograsmme of approximately 12.2 lakh crore for FY 2026-27, together with an Infrastructure Risk Guarantee Fund, expanding the addressable market for infrastructure contracting.

An urban housing shortage of approximately 10 million units against affordable supply of approximately 6% of new launches, with a funded route to that demand through Pradhan Mantri Awas Yojana Urban 2.0.

Reduction of the goods and services tax on cement and steel to 18%, estimated to reduce construction costs by approximately 5%.

Record institutional investment into Indian real estate, of which approximately 64% was domestic, widening the range of project capital available to compliant developers.

Capital work-in-progress of 6,151.05 lakh and inventory of 6,776.83 lakh carried on the consolidated balance sheet at March 31, 2026, representing project value available for recognition in subsequent years.

The Companys status as a listed entity with an established corporate governance and disclosure framework, increasingly a precondition of access to institutional capital and of selection by housing societies and public authorities.

Threats:

Reversal of the inflation cycle, with average retail inflation projected to rise from approximately 2.0% in FY 2025-26 to 5.0% in FY 2026-27, raising construction input and working capital costs.

A cost of capital that has stopped falling, at a point at which the Group has moved to a levered project balance sheet with consolidated long-term borrowings of 5,643.70 lakh and finance costs of 438.40 lakh for the year under review.

Softening residential volumes, with sales across the top seven cities declining 14% in 2025 and a further 6% year on year in the quarter ended June 2026, against unsold inventory rising approximately 10%.

Concentration of consolidated revenue in a single subsidiary and a small number of projects, so that the timing of completion of any one project materially affects reported consolidated results.

Long and multi-authority approval timelines for redevelopment schemes, and the requirement to sustain the consent of society members through the development period.

Intense competition in the Mumbai redevelopment market from large listed developers with substantially greater balance sheet capacity and established delivery records.

Adverse equity market conditions for smaller listed companies, with the Nifty Smallcap 100 declining 5.5% during the year under review, raising the cost of growth capital.

Concentration of the Groups activity in a single metropolitan market and a single sector.

Regulatory changes affecting development control, floor space index entitlements, stamp duty or the taxation of real estate transactions.

Shortage of skilled construction labour and dependence on contractors for execution.

Segment-wise or Product-wise Performance:

The Group operates in a single reportable segment, namely infrastructure and real estate development, and accordingly separate segment reporting under Indian Accounting Standard 108 Operating Segments is not applicable. A brief on the performance of the Company and its subsidiaries during the year under review is set out below.

YIPL did not generate revenue from operations on a standalone basis during the year under review. Its standalone income of 32.47 lakh arose from non-operational sources and it recorded a loss after tax of 2.96 lakh, while continuing to pursue redevelopment and infrastructure opportunities in and around the Mumbai Metropolitan Region.

Bini Builders Private Limited: A subsidiary in which the Company held 63.08% as at March 31, 2026, against 63.82% in the preceding year. The subsidiary did not record revenue from operations during the year, against 1,562.00 lakh in the preceding year, and recorded other income of 48.78 lakh and a profit before tax of 8.92 lakh. Form AOC-1 is annexed to the Directors Report.

Moongipa Realty Private Limited: A subsidiary in which the Company held 74.02% as at March 31, 2026, 49.06% directly and 24.96% through Bini Builders Private Limited. It is the principal operating entity of the Group and recorded revenue from operations of 4,718.62 lakh, against 19,801.83 lakh in the preceding year, other income of 94.60 lakh and a loss before tax of 70.41 lakh. Form AOC-1 is annexed to the Directors Report.

The Company continues to evaluate opportunities that align with its business objectives and to assess the contribution of each subsidiary to those objectives.

Outlook:

The outlook for the Company remains positive, supported by the industry and policy factors described above. From FY 2027 onwards, the management intends to focus on the following:

Project Completion and Revenue Recognition: Conversion of capital work-in-progress of 6,151.05 lakh and inventory of 6,776.83 lakh carried at March 31, 2026 into completed projects and recognised revenue.

Project Pipeline: Conversion of the present pipeline of redevelopment and infrastructure opportunities into executable mandates, with emphasis on structures in which land cost is not funded upfront in cash.

Standalone Revenue Commencement: Transition from standalone income arising principally from non-operational sources to revenue generated from development, construction and advisory activity in the Companys own right.

Capital Efficiency and Deleveraging: Disciplined allocation of capital and orderly servicing and reduction of the mortgage term finance drawn at the subsidiary level.

Partnerships: Relationships with housing societies, landowners, contractors and financial institutions, and selective participation in joint development and joint venture structures that reduce capital intensity and execution risk.

Delivery Record: Establishment of a completed project delivery record in the Companys own name, a precondition of selection by larger societies and of access to institutional project finance.

Governance and Compliance: Maintenance of the Companys listing, secretarial and financial reporting standards, increasingly a competitive advantage in a market that has entered the Transparent tier of the Global Real Estate Transparency Index.

Cost Control: Continued tight control of operating expenses during the period in which investment in the pipeline precedes revenue recognition from it.

Market Expansion: Selective evaluation of opportunities outside the Mumbai Metropolitan Region and in adjacent infrastructure segments, to moderate concentration in a single market.

The management remains confident that these initiatives will enable the Company to strengthen its competitive position and to create sustainable value for its stakeholders.

Risk Management:

The Company acknowledges the inherent risks in its business operations and maintains a structured framework to identify, assess, minimise and mitigate such risks, addressing among other matters:

Securing critical resources, including project capital, land and development rights, and human talent.

Regulatory and approval risk, including development control regulations, floor space index entitlements and multi-authority approval timelines.

Input cost risk arising from movements in the prices of cement, steel and other construction materials, and from the cost and availability of construction labour.

Interest rate and refinancing risk on the mortgage term finance drawn at the subsidiary level, affecting both the cost of project finance and the affordability of housing to the end purchaser.

Counterparty and execution risk in dealings with contractors, joint development partners, housing societies and landowners.

Concentration risk arising from activity in a single metropolitan market, a single sector and a small number of projects.

Compliance risk under the Companies Act, 2013, the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Real Estate (Regulation and Development) Act, 2016.

The management monitors regulatory developments affecting the sector, including the graded materiality thresholds for related party transactions introduced by the SEBI (Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 2025, and has aligned its internal processes accordingly.

Internal control systems and their adequacy:

The Company maintains internal controls and procedures for financial reporting that are adequate and commensurate with the size, scale and nature of its business, designed to ensure that assets are safeguarded, that transactions are authorised, recorded and reported correctly, and that applicable statutes, listing requirements and corporate policies are complied with.

The Internal Auditors monitor the efficiency and effectiveness of the internal control systems. Significant audit observations and corrective actions thereon are presented to the Audit Committee, which reviews the adequacy and effectiveness of the systems and monitors the implementation of audit recommendations.

Material Developments in Human Resources / Industrial Relations Front Including Number of People Employed

Employee wellbeing and the building of a strong workplace culture continued to be focus areas during the financial year 2025-26. The Company adopted sound people practices that enabled it to attract and retain talent in a competitive market and to provide employees the opportunity to realise their potential.

Employee benefits expense on a standalone basis was 22.84 lakh for the year under review, against 14.78 lakh in the preceding year, and on a consolidated basis 93.81 lakh, against 135.57 lakh in the preceding year.

As on March 31, 2026, the Company along with its subsidiaries had a cumulative [24] employees, of whom [21] were male and [3] were female. The Company at present does not have any transgender employees.

The Human Resource team undertook employee-centric welfare initiatives and engaged with business leaders to address workplace concerns and future talent requirements. Learning and development remains a key pillar of the Companys people strategy. Industrial relations remained cordial throughout the year under review.

Details of significant ratios:

Details of the ratios and the changes therein are provided in the note 2.34 of notes to the financial statements of the Company for the financial year ended March 31, 2026.

Significant Changes in the return on net-worth:

The details of the return on net-worth, computed as profit after tax as a percentage of net worth, are as follows:

The change in the return on net-worth is primarily on account of the reduction in the deferred tax credit recognised, from 13.49 lakh in the preceding year to 0.98 lakh. The loss before tax narrowed from 7.92 lakh to 3.94 lakh; the movement into a post-tax loss is therefore a consequence of the tax charge rather than of a deterioration in operating performance.

This assessment highlights both the achievements and the challenges faced by the Company during the year under review and provides a basis on which the Members may assess the Companys position and prospects.

Cautionary Statement:

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable securities laws or regulations. Actual results could differ materially from those expressed or implied on account of economic conditions, changes in government regulations, tax laws and other statutes, and other incidental factors.