International Conveyors Ltd Management Discussions

This Management Discussion and Analysis report presents the key performance highlights of the Financial Year 2025-26 pertaining to your Companys business. This review should be read in conjunction with the report presented in the other sections i.e. financial statements, the schedules and notes thereto and other information included elsewhere in this Annual Report. Your Companys financial statements have been prepared in accordance with Indian Accounting Standards (IndAS), complying with the requirements of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

INDUSTRY STRUCTURE & DEVELOPMENTS

The Conveyor Belting industry forms an integral part of the material handling ecosystem and caters to a wide range of industries including mining, cement, steel, power generation, ports, logistics, manufacturing, food processing, chemicals, oil & gas and aviation. The PVC solid-woven Conveyor Belting industry forms a specialised segment of the global Conveyor Belting and material handling industry. PVC solid-woven conveyor belts are predominantly used for the continuous transportation of bulk materials in demanding operating environments, particularly in underground mining, coal handling and mineral processing applications. The products are designed to provide a combination of high tensile strength, durability, fire resistance, anti-static properties and resistance to impact and abrasion.

The industry is closely linked to developments in the mining, coal, cement, steel, power and other core industrial sectors. Demand for Conveyor Belting is influenced by mining production, new mine development, expansion and modernisation of material handling systems, replacement of existing belts and increasing mechanisation of material transportation.

The Conveyor Belting industry continues to evolve in line with increasing mechanisation, automation and modernisation of material handling systems across mining, coal, cement, steel, power and other core industries. The industry is witnessing a gradual shift towards high-performance, application-specific and longer-life Conveyor Belts, with greater emphasis on operational safety, reliability and total cost of ownership.

The industry is also moving towards higher-performance and specialised belting solutions. Customers, particularly in mining applications, increasingly require belts with improved fire-retardant and anti-static properties, higher tensile strength, better abrasion, impact resistance and longer service life. For specialised PVC solid-woven belts, these characteristics are particularly important in underground mining and other demanding operating environments.

Overall, the industry is expected to benefit from the continued transition towards mechanised, efficient and environmentally responsible material handling systems in India and overseas.

INDUSTRY OVERVIEW IN INDIA

The Conveyor Belting industry in India is a dynamic and growing sector playing a crucial role in various industrial and material handling operations. Conveyor Belts are widely used for continuous transportation of bulk materials and goods across mining, coal, cement, steel, power, ports, logistics, manufacturing and other industrial sectors. One of the key developments in the Indian market is the increasing adoption of mechanised conveyor-based transportation in the coal and mining sector. The Governments First Mile

Connectivity (FMC) programme is aimed at replacing conventional road transportation of coal with mechanised systems comprising Conveyor Belts, crushers, rapid loading systems and integrated coal handling infrastructure. These systems are intended to improve transportation efficiency, reduce logistics costs, minimise manual handling and lower the environmental impact associated with truck-based transportation.

The FMC programme represents a significant structural opportunity for the Conveyor Belting industry. The Ministry of Coal has planned a large number of FMC projects with substantial aggregate capacity through FY 2029-30, which is expected to increase the deployment of conveyor-based coal handling systems across the country. This continued expansion of mechanised coal handling infrastructure is expected to create opportunities for Conveyor Belting manufacturers, both in terms of new installations and subsequent replacement demand.

The Governments sustained focus on roads, highways, railways, housing, urban infrastructure, industrial corridors, ports and logistics infrastructure is expected to support long-term cement consumption. Programmes such as Pradhan Mantri Awas Yojna (PMAY), Bharatmala, Sagarmala, Dedicated Freight Corridors and PM GatiShakti contribute to infrastructure creation and, consequently, to demand for cement and other construction materials. The expansion and modernisation of cement manufacturing facilities can therefore generate demand for new conveyor systems as well as recurring replacement demand for Conveyor Belting.

The Governments focus on strengthening domestic manufacturing is also expected to support the Conveyor Belting industry. The recently introduced BHAVYA Scheme aims to develop 100 investment-ready industrial parks with an outlay of 33,660 crore, strengthening integrated industrial infrastructure and supporting the objectives of Make in India and PM GatiShakti.

The outlook for the Indian Conveyor Belting industry remains positive, supported by the countrys continued focus on mining, infrastructure development, industrialisation and mechanisation of material handling operations.

Overall, the Indian Conveyor Belting industry is positioned to benefit from the Governments broader vision of Viksit Bharat, infrastructure-led economic growth, efficient logistics, mining-sector modernisation and industrial development. For specialised PVC solid-woven conveyor belt manufacturers like your Company, the increasing mechanisation of mining and material handling, together with demand from cement, coal and other core industries, provides a favourable medium to long-term business environment.

INDUSTRY OVERVIEW GLOBALLY

The global Conveyor Belting industry is an integral part of the mining, cement, steel, power, infrastructure, logistics and manufacturing sectors. The industry is witnessing steady growth driven by increasing industrialisation, mechanisation and the need for efficient and continuous material handling.

Globally, Asia-Pacific remains the largest market, supported by strong mining, manufacturing, infrastructure and construction activity. Emerging markets in Asia, the Middle East and Africa are also witnessing increased investments in mining, ports, logistics and industrial infrastructure.

A major development is the increasing adoption of automated and mechanised material-handling systems. Growth in e-commerce, warehousing and logistics is creating new applications for conveyor systems, while automation, sensors, condition monitoring and predictive maintenance are improving operational efficiency and reducing downtime.

The mining sector continues to be a key demand driver, although the nature of demand is evolving. In addition to traditional coal and iron ore applications, increasing investment in copper, nickel, lithium and other critical minerals is creating new opportunities for Conveyor Belting manufacturers.

The cement industry also remains an important end-user, particularly in emerging economies where infrastructure, housing and urbanisation are driving cement consumption. At the same time, mature markets are generating replacement and modernisation demand through plant upgrades and automation.

While global coal demand is expected to remain broadly stable, the Conveyor Belting industry is increasingly diversifying towards critical-mineral mining, cement, logistics, warehousing, recycling and automated manufacturing.

Overall, the global Conveyor Belting industry is evolving from a conventional heavy-industry-oriented market into a more diversified, technology-driven and application-specific industry. Demand for high-performance, fire-resistant, anti-static, durable and longer-life Conveyor Belts is expected to remain favourable, supported by new projects, replacement demand and modernisation of existing material-handling systems.

BUSINESS OVERVIEW

Your Company is a specialised manufacturer of solid-woven fabric-reinforced PVC impregnated and PVC covered fire-retardant and anti-static Conveyor Belting, with a strong presence in the global mining and material-handling industry. It is engaged in the manufacturing and marketing of Conveyor Belting since 1978, having a rich and valuable experience of more than 47 years. Your Company has developed specialised capabilities in PVC Conveyor Belting over several decades and has positioned itself as a global supplier of high-performance Conveyor Belting solutions.

Your Companys core business is centered on the manufacturing and marketing of PVC solid-woven Conveyor Belts, which are primarily used in underground mining and other demanding material-handling applications. Your Companys products are designed for conveying materials such as coal, potash, phosphate, fertilisers, gypsum and salt, and are also supplied for applications in cement and crushing industries.Your Company offers an extensive range of solid-woven belting, including products covering strengths up to Type 18 / approximately 3,150 kN/m, with belt widths ranging from approximately 600 mm to 1,800 mm. This broad product range enables your Company to cater to both domestic and international requirements across different mining and industrial applications.

Manufacturing and Technical Capabilities

Your Company operates manufacturing facilities at Falta SEZ, West Bengal, and Chhatrapati Sambhaji Nagar (Aurangabad), Maharashtra, with an installed capacity of approximately 4,25,000 meters and 7,00,000 meters respectively. Your Company has achieved an annual production of 3,83,520 meters in Financial Year 2025-26. The Companys manufacturing infrastructure includes specialised yarn-processing, weaving, impregnation, coating and curing facilities, supported by an in-house testing laboratory and technical capabilities.

Your Company has developed specialised manufacturing equipment and processes for solid-woven belting, including heavy-duty weaving looms, vacuum impregnation and electronically controlled integrated coating facilities. Its manufacturing capabilities are supported by an experienced workforce and quality-control systems designed to meet demanding international application requirements. Your Company has twisting and doubling machines, which is capable of handling upto 20 tons of yarn at a time. It also has one of the widest and heaviest beaming machines in the world with a 2400 mm beam width and carcass making machine capable of handling upto 22 tons of beamed yarn in a single load.

With continued focus on research and development, your company has launched a new product ( Mineplast Pro ) which offers belts in cover thickness upto 3 mm and DIN Abrasion of 150 mm³. This product has been well received by the market and could potentially compete with rubber/pvg belts in the time to come.

Your Company is also associated with Mato Industries Ltd., UK as their distributor in India for Mato Belt Lacing Machine, Fasteners, Spindle Pins and Belt Cutter etc., for last 3 decades. Your Company has achieved substantial growth rate in sale of Mato Products in India. It expects substantial growth of the ongoing business in coming years.

Your Companys testing capabilities constitute an important part of its product proposition and its laboratory is accredited under ISO/ IEC 17025:2017 by NABL, and its R&D and testing functions undertake continuous testing of its Mineplast products, particularly for underground mining applications.

Domestic and International Presence

Your Companys international business is particularly relevant given the specialised nature of PVC solid-woven Conveyor Belting. As a significant portion of Indias mining activity is based on open-cast mining, international markets provide access to underground mining applications in regions such as North America, Europe, Australia and other mining jurisdictions. Your Companys products are mainly used in underground mines and its sales are predominantly oriented towards international markets, including Canada, the US and Europe.

In order to be ahead in the curve when the industry consumption increases globally, your Company has undertaken various research and development projects to increase the product range which would increase your Companys market share, while contributing to the industry efficiencies. As a result of its research and development activities, your company has developed a superior low abrasive belt with thicker covers to cater to the market which till now has been dominated by PVG. Your Company has obtained various regulatory approvals and is hopeful of penetrating the market from second half of financial year 2 0 26-2 0 27 with a few trials already underway.

Diversified End-Use Applications

While underground coal mining remains a key application, your Company has progressively diversified its customer base and applications. Its products are used for conveying coal, potash, phosphate, fertiliser, clay, gypsum, salt and aggregates, among other materials. The Company has also expanded into applications in the soda ash, cement and crusher industries.

This diversification provides the Company with multiple demand avenues and reduces its dependence on a single end-use industry. Your Companys ability to develop products according to customer specifications and country-specific requirements further supports its participation in specialised international markets.

Other Businesses

In addition to its core Conveyor Belting business, your company has certain complementary business activities. As disclosed in its consolidated financial statements, the Groups activities include manufacturing and trading of Conveyor Belting; trading of MATO products and generation and sale of power; and investment activities.

The Company also has a renewable-energy presence through five windmills located across Karnataka, Maharashtra, Gujarat and Andhra Pradesh. The windmills generate renewable electricity supplied through the respective State grids.

The segment wise performance for each segment is detailed in the other parts of this report.

OPPORTUNITIES & THREATS Opportunities

a. Conveyor Belting

The outlook for your Company remains positive, supported by the increasing adoption of mechanised and efficient materialhandling systems in India and overseas. The Governments continued focus on First Mile Connectivity projects and mechanised coal evacuation is expected to create opportunities for new conveyor installations as well as recurring replacement demand. Growth in mining and mineral industries, including coal, iron ore, potash, phosphate and other minerals, together with expansion of cement capacity and investments in roads, railways, ports, housing and industrial infrastructure, is expected to support demand for specialized Conveyor Belting.

The Company also has opportunities to expand its international presence, particularly in underground mining markets, while the development of critical minerals such as copper, nickel and lithium provides scope to diversify beyond traditional coalmining applications. Increasing customer preference for high-performance belts offering fire resistance, anti-static properties, durability, abrasion resistance and longer service life further supports your Companys specialised product capabilities. Overall, your Company is well positioned to leverage its specialized PVC solid-woven belting capabilities, established manufacturing base and international presence to participate in the growing demand for efficient, safe and sustainable material-handling solutions.

b. Treasury

The Treasury segment provides opportunities to optimise your Companys surplus liquidity through prudent deployment of funds across suitable short-term and long-term investment avenues, while maintaining an appropriate balance between capital preservation, liquidity and returns. The prevailing interest-rate environment and availability of diversified fixed-income instruments provide opportunities to generate stable interest income from surplus funds, subject to prevailing market conditions. The Company may also benefit from efficient cash-flow management, maturity diversification and timely reinvestment of funds, thereby improving overall treasury returns while ensuring adequate liquidity for operational and strategic requirements. Opportunities may further arise from disciplined portfolio management, including investment in high-quality and relatively low-risk instruments, while maintaining appropriate diversification to manage market and credit risks. Going forward, a prudent treasury strategy focused on liquidity, safety, diversification and risk-adjusted returns can contribute to the Companys overall financial performance and provide an additional source of income alongside its core Conveyor Belting business.

Threats

a. Conveyor Belting

The Conveyor Belting Segment operates in a competitive and raw-material-intensive environment and is exposed to fluctuations in the prices and availability of key raw materials such as rubber, synthetic fabrics, steel cords and other chemicals. Any significant

increase in input costs, particularly where such increase cannot be adequately passed on to customers, may exert pressure on margins. Geo-political tensions having adverse impact on crude has a direct impact on the raw material prices as was evident in the last year.

The demand for Conveyor Belting products is closely linked to the performance of key end-user industries such as mining, steel, cement, power, ports, infrastructure and material handling. Any slowdown in industrial activity, infrastructure spending or capital expenditure by these industries may adversely affect order inflows and business performance.

The Segment also faces competition from established domestic and international players, including manufacturers offering products at competitive prices. Increasing import competition, pricing pressure and evolving customer requirements may impact market share and profitability.

Supply-chain disruptions, fluctuations in logistics costs, geopolitical developments and delays in procurement of critical raw materials may affect production and delivery schedules. Further, increasing technological, quality, environmental and safety requirements necessitate continuous investment in product development, manufacturing capabilities and compliance.

The Company seeks to mitigate these risks through prudent procurement and inventory management, maintaining long-term customer relationships, product quality and continuous improvement in manufacturing and operational capabilities.

b. Treasury

The Treasury segment is exposed to various market, credit and liquidity risks that may affect the returns generated from investments. Fluctuations in interest rates may impact the income from fixed-income investments and the valuation of certain financial instruments, while changes in market conditions may affect returns from market-linked investments. Credit and counterparty risks may arise from exposure to financial institutions, issuers and other counterparties.

Changes in monetary policy, inflation, taxation and regulatory requirements may also influence investment returns and the attractiveness of different investment avenues. In addition, concentration of investments in a particular instrument, issuer or maturity profile may increase the Companys exposure to specific risks.

The Company seeks to mitigate these risks through prudent deployment offunds, diversification ofinvestments and counterparties, monitoring of maturity profiles and liquidity requirements, and adherence to its internal treasury and investment policies.

STRENGTHS

? Experienced Promoters and Management Team

The Promoters and senior management of your Company possess extensive experience and domain knowledge in the Conveyor Belting industry. Your Company is supported by a competent team of professionals with deep technical and commercial understanding of the business, enabling it to effectively address evolving customer requirements and market conditions.

? High entry barriers

The Conveyor Belting industry, particularly the specialised PVC solid-woven belting segment, has relatively high entry barriers due to the technical expertise, specialised manufacturing infrastructure, stringent quality requirements and product approvals required for serving international mining customers. Approvals and certifications are often specific to particular countries, applications and customers, while establishing a proven track record requires considerable time and investment. These factors limit the number of qualified manufacturers globally and provide an advantage to established players such as your Company.

? Long Standing Relationship with the Customers

Your Company has established long-term relationships with customers across domestic and international markets. Its ability to manufacture products in accordance with country-specific standards and customer-specific technical specifications, together with its focus on quality, reliability and customer service, has enabled it to develop a strong and recurring customer base. Longterm customer relationships provide greater visibility of demand and support repeat and replacement business.

? Advantageous Government Policies and Regulations

Government initiatives relating to mining, infrastructure development and mechanisation of material handling provide a favourable environment for the Conveyor Belting industry. Policies such as the National Mineral Policy, 2019, reforms under the Mines and Minerals (Development and Regulation) Act, increased private-sector participation in commercial coal mining, First

Mile Connectivity projects and the Governments focus on mechanised coal evacuation are expected to support mining activity and the adoption of conveyor-based material handling systems. In addition, infrastructure and logistics initiatives such as PM GatiShakti and the National Logistics Policy are expected to support the broader material-handling ecosystem.

? Skilled and Experienced Workforce

Your Company is supported by a skilled and technically competent workforce with substantial experience in the specialised Conveyor Belting industry. The technical expertise of its employees contributes to manufacturing efficiency, product development, quality control and the ability to meet specialised customer requirements.

? Strong Research and Development Capabilities

Your Company has developed technical and R&D capabilities focused on improving product performance, increasing belt life and reducing the overall cost of ownership for customers. Its product-development initiatives are directed towards developing application-specific solutions with improved durability, strength, fire resistance, anti-static properties and operational reliability.

? Specialized Manufacturing Capabilities

Your Companys manufacturing facilities and specialized processes provide capabilities across yarn preparation, weaving, impregnation, coating and finishing of solid-woven PVC conveyor belts. This integrated manufacturing expertise enables greater control over product quality and consistency and supports the Companys ability to manufacture products according to diverse customer specifications.

? International Approvals and Global Presence

Your Company has established a presence in international markets and has obtained relevant product approvals and certifications across various countries. Its experience in supplying specialized belts for underground mining applications provides a competitive advantage in technically demanding markets.

? Strategic Location and Port Connectivity

Your Companys manufacturing locations provide access to established road and logistics networks. The Falta facility in West Bengal benefits from its proximity to the Kolkata/Haldia port ecosystem, while the Maharashtra facility benefits from connectivity to major industrial centres and ports on the western coast. Such connectivity supports efficient movement of raw materials and finished products and facilitates the Companys export operations.

? Diversified Application Base

Although mining remains a key application, your Companys products cater to a diversified range of applications including coal, potash, phosphate, fertiliser, gypsum, salt, cement, crushing and waste management. This provides opportunities to diversify revenue across different industries and geographies.

? Quality and Testing Infrastructure

Your Companys focus on quality and product reliability is supported by established testing and quality-control systems. Its specialised testing capabilities enable the Company to meet stringent technical and safety requirements applicable to demanding mining and industrial applications.

RISK AND CONCERNS Conveyor Belting

? Dependence on Mining and Core Industries

Your Companys business is significantly dependent on mining and other core industries such as coal, cement, steel and power. Any slowdown in mining activity, postponement of new projects, reduction in capital expenditure or adverse changes in commodity cycles may affect demand for Conveyor Belting.

? Raw Material Price Volatility

PVC resin, synthetic yarn, chemicals and other petroleum-based inputs constitute important raw materials for the Companys products. Fluctuations in crude oil prices, availability of raw materials, foreign exchange rates and supply-chain conditions may increase production costs and put pressure on margins.

? International Market and Geopolitical Risks

Your Company has a significant international market presence. Changes in geopolitical conditions, trade restrictions, tariffs, sanctions, political instability, economic slowdowns or regulatory changes in overseas markets may adversely affect exports, customer demand and profitability.

? Foreign Exchange Risk

Your Companys international business exposes it to fluctuations in foreign currency exchange rates. Adverse movements in currencies against the Indian Rupee may affect export realisations, profitability and the value of foreign-currency-denominated assets and liabilities.

? Customer and Project Concentration Risk

Large mining and industrial customers may account for a significant portion of demand. Delays in project commissioning, changes in procurement policies, loss of major customers or concentration of sales in particular markets may affect the Companys revenues and cash flows.

? Regulatory and Certification Requirements

Conveyor belts used in underground mining are subject to stringent safety, quality and certification requirements in different jurisdictions. Any change in regulatory standards or failure to obtain, renew or maintain required approvals could restrict the Companys ability to access certain markets.

? Supply Chain and Logistics Risks

Your Companys operations are dependent on timely availability of raw materials, transportation and logistics infrastructure. Disruptions arising from geopolitical events, port congestion, freight-rate increases, natural disasters or other unforeseen events may affect production schedules and delivery commitments.

? Technology and Product Development Risk

Customer expectations are increasingly shifting towards longer-life, energy-efficient, technologically advanced and application- specific Conveyor Belts. Failure to continuously improve products, manufacturing processes and technical capabilities may affect your Companys competitiveness.

The Company seeks to mitigate these risks through product diversification, geographical diversification, long-standing customer relationships, quality-control systems, specialized technical capabilities, prudent financial management and continuous product development. The Companys established presence in specialized PVC solid-woven Conveyor Belting and its international approvals provide a degree of resilience; however, continued monitoring of mining activity, raw-material prices, foreign exchange movements, regulatory developments and global economic conditions remains important for sustainable growth.

Treasury

? Interest Rate Risk

Changes in interest rates may affect the returns generated from fixed-income investments, deposits and other interest-bearing instruments. A decline in interest rates may reduce the Companys interest income from deployment of surplus funds.

? Market Risk

Investments in market-linked securities and other financial instruments may be affected by fluctuations in equity, debt and other financial markets, potentially impacting the value and returns of the Companys investment portfolio.

? Credit and Counterparty Risk

Deployment of surplus funds with banks, financial institutions, corporates or other counterparties exposes the Company to the risk of default or delayed repayment. Maintaining high credit quality and appropriate counterparty limits is therefore important.

? Liquidity Risk

Treasury investments need to be structured to ensure that adequate liquidity remains available to meet the Companys operational requirements, statutory obligations and unforeseen cash-flow requirements. Excessive investment in relatively illiquid instruments may restrict financial flexibility.

? Foreign Exchange Risk

Where treasury investments or balances are denominated in foreign currencies, fluctuations in exchange rates may affect the value of such investments and the Companys overall returns.

? Regulatory and Taxation Risk

Changes in RBI regulations, taxation laws, investment regulations or other applicable regulatory requirements may affect the returns, structure and attractiveness of various investment avenues.

? Economic and Macroeconomic Risks

Inflation, changes in monetary policy, economic conditions, market liquidity and global financial developments may influence interest rates, investment valuations and overall treasury returns.

Your Company follows a prudent treasury management approach with emphasis on safety, liquidity, diversification and risk- adjusted returns. The Company continuously monitors its investment portfolio, market conditions, counterparty exposure and maturity profile to safeguard capital and optimise returns while ensuring that sufficient liquidity is maintained for its business and strategic requirements.

SEGMENT-WISE PERFORMANCE

The segment-wise performance of your Company is given below:

a. Conveyor Belting

Your Company is mainly engaged in the manufacturing of Conveyor Belting. The revenue generated from this segment during the Financial Year 2025-26 comprises of 80.50% of the total revenue of your Company. The revenue generated from Conveyor Belting segment during the financial year 2025-26 is 16,393 lacs as compared to 13,268 lacs in the previous financial year, which signifies a growth of 23.55% than previous year. The Profit before Interest and Tax from Conveyor Belting segment is 4,550 lacs for the year ended March 31, 2026 as compared to 2,950 lacs for the year ended March 31, 2025 and has increased by 54.24%.

b. Wind Energy

Your Company presently has in total 5 Wind Mills. All these Wind Mills are generating green energy in the states of Karnataka, Maharashtra, Gujarat and Andhra Pradesh and the same is supplied to respective state consumers through state grids. The revenue generated from Wind Energy during the financial year 2025-26 is 139 lacs as compared to 125 lacs in the previous financial year and increased by 11.20% over the year. The Profit before Interest and Tax from Wind Energy segment is 46 lacs for the financial year ended March 31, 2026 as compared to 35 lacs for the financial year ended March 31, 2025 and has increased by 31.43%.

c. Trading of Goods

Your Company is engaged in trading of fasteners. During the financial year 2025-26, the revenue generated from trading of goods is 3,779 lacs as compared to 631 lacs in the previous financial year and has increased by 499% over the year. The Profit before Interest and Tax for the year ended March 31, 2026 is 220 lacs as compared to 121 lacs and has increased by 81.82% over the year.

d. Treasury

The Treasury segment comprises of investment in equity instruments, mutual funds and inter-corporate deposits given by your Company and the total assets under this segment as on March 31, 2026 stood at 46,784 lacs as compared to 44,068 lacs in the previous financial year and has grown by 6.16% over the year. The Profit before Tax from the treasury segment is 5,024 lacs for the financial year ended March 31, 2026 as compared to 7,861 lacs in the previous financial year and has decreased by 36.09% over the year.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

A separate paragraph on internal financial control systems and their adequacy has been provided in the Directors Report.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS ALONGWITH EXPLANATION

In compliance with the requirement of the Listing Regulations, the key financial ratios of your Company along with explanation for significant changes (i.e., for change of 25% or more as compared to the immediately previous financial year) has been provided hereunder:

Particulars	2025-26	2024-25
Debtors Turnover	7.91	5.82
Inventory Turnover	9.92	8.69
Interest Coverage Ratio	10.99	12.43
Current Ratio	4.93	3.99
Debt Equity Ratio	0.18	0.25
Operating Profit Margin (%)	19.12	15.27
Net Profit Margin (%)	25.96	31.06
Return on Net-worth (%)	17.34	28.13

Debtor turnover ratio has been increased by 35.91% due to increase in sales during the year.

Debt equity ratio has been decreased by 28.00% due to decrease in borrowings during the year. Further, equity has also been increased as compared to last financial year.

The Operating Profit Margin increased by 25.21% primarily due to higher revenue from operations and improved operating profitability during FY 2025-26. The financial results report revenue from operations of 20,365 lacs in FY 2025-26 compared with 14,082 lacs in FY 2024-25.

There have been no significant changes in the ratios over previous year except as provided above. For detailed explanation, please refer to Note no. 38 (14) of the Notes to Standalone Financial Statements for the year ended March 31, 2026.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

Human resources continue to remain an important contributor to the Companys operational efficiency, product quality and sustainable growth. During the year under review, the Company continued to focus on maintaining a skilled, experienced and technically competent workforce across its manufacturing, technical, quality, sales, finance and administrative functions. Given the specialised nature of the Companys PVC solid-woven Conveyor Belting business, emphasis was placed on retaining experienced personnel and strengthening technical and operational capabilities.

The Company continued to encourage a culture of professional development, teamwork, safety awareness and continuous improvement. Training and knowledge-sharing initiatives were undertaken to enhance employee capabilities, improve operational efficiency and ensure adherence to quality, safety and regulatory requirements. The Company also remained focused on maintaining a safe and conducive working environment and fostering employee engagement.

The Companys experienced workforce, supported by specialised technical personnel with significant industry knowledge, continues to be one of its key strengths. The Company remains committed to developing its human capital in line with evolving technological requirements and business needs.

The total employee strength as on March 31, 2026 stood at 88. Your Company is taking initiatives to maintain safety and welfare of employees such as:

a. Celebration of Yoga Day;

b. Annual Medical Checkup;

c. Celebration of Safety week;

d. Conducting Safety Mock Emergency Drill;

e. Conducting Monthly Safety Committee Meeting;

f. Conducting Safety Induction Training;

g. Celebration of Ganpati festival;

h. Celebration of Republic Day and Independence Day;

i. Celebration of Vishwakarma Puja;

j. POSH Awareness Session

CAUTIONARY STATEMENT

Statements in this "Management Discussion and Analysis Report" are forward-looking statements concerning the Companys business, financial performance, growth prospects, industry trends and future plans. These statements are based on the Companys current expectations, assumptions and assessments and are subject to various risks and uncertainties. Actual results, performance or achievements may differ materially from those expressed or implied in such statements due to, among other factors, changes in economic and business conditions, industry trends, demand and supply conditions, competition, raw material prices, foreign exchange fluctuations, regulatory and government policies, geopolitical developments, technological changes and other risks beyond the Companys control.

	For and on behalf of the Board of Directors
	Yogesh Kajaria
Date : August 14, 2026	Chairman & Managing Director
Place: Kolkata	DIN: 01832931