Agarwal Fortune India Ltd Management Discussions

Pursuant to SEBI (LODR) Regulations, 2015, your Directors have the pleasure in presenting the Management Discussion and Analysis Report for the year ended on March 31, 2025.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian glass market was worth about USD 2.7 billion during 201112. The per capita glass consumption was 1.2kg compared with 89 kg in developed countries and 3035 kg in USA. During the same period the flat glass market was 4500 tpd (tonnes per day) and was growing at 16%. The market for container glass was about 7000 tpd which hasa share of 5560% of overall market share in the country.

The Indian glass industry has been growing across all segments. Sheet and float glass have recorded the fastest growth, at nearly 67 per cent CAGR (Compound Annual Growth Rate) between 2001 and 2005. Other glassware such as bottles and fibre glass has recorded more modest growth rates of about 56 per cent CAGR, over the same period.

It is expected that in future, glass consumption will grow in construction, automotive, consumer goods and pharmaceutical sectors.

India is one of the fastestgrowing markets for glass due to rapid urbanization, infrastructural development, and growth in enduser industries. The construction sector in India, which is the largest consumer of flat glass, is witnessing robust expansion, propelled by governmentled initiatives and private sector development. Major metropolitan areas (Delhi, Mumbai, Kolkata, etc.) are seeing surging demand for architectural glass as modern highrise buildings increasingly feature glass facades, windows and doors for aesthetic and energyconservation reasons . The Smart Cities Mission and massive infrastructure projects like new airports, metro rail networks, and the modernization of railway stations are further boosting the need for valueadded glass (e.g. tempered, laminated, insulated glass) in public infrastructure . Moreover, the rise in premium residential and commercial real estate (with trends like larger glass windows, facade glazing and daylightfriendly designs) has increased the glasstowall ratio in buildings, thereby driving higher glass consumption per project.

Outlook:

Various forecasts have estimated a sharp degrowth in the Indian economy for the current financial year, the first such instance of degrowth in decades.

Indias economic structure and growth make it an attractive market for any business opportunities that can cater to the growing needs of both the Company as well as the stakeholders of the Company.

In spite of challenges faced, the silver lining for India and some other emerging markets in specific is the aftermath of the pandemic has brought to the fore a seemingly structural shift in the desire of several countries and companies wanting to potentially move manufacturing facilities out of China. This could lead to a once in a two decade opportunity for a country like ours to create a virtuous cycle for manufacturing, job growth, self reliance and hence consumption for the long term. In fact, we are already starting to see winds of change with these companies starting to consider India as their potential manufacturing destination. This will provide substantial impetus to the Governments vision of Make in India.

OPPORTUNITIES & THREATS OPPORTUNITIES

• Increasing Financial Services industrys share of wallet for disposable income.

• Leadership in sophisticated solutions that enable our clients to optimize the efficiency of their business.

• Leveraging technology to enable best practices and processes.

• Corporate looking, at consolidation / acquisitions / restructuring opens out opportunities for the corporate advisory business.

THREATS

• Execution risk

• Short term economic slowdown impacting, investor sentiments and business activities

• Slowdown in global hquidity flows

• Increased intensity of competition from local and global players

• Market trends making other assets relatively attractive as investment avenues

SEGMENTWISE & PRODUCTWISE PERFORMANCE

The company operates in only single segment, hence segment reporting is not applicable. The Company is mainly engaged in the Trading of Glasses and other allied activities.

The Highlights of the Companys performance are as under:

During the year, the Company earned Total Revenue of ? 441.55 Lakhs as against ? 738.08 Lakhs in corresponding previous year and earned a net profit of ? 19.47 Lakhs.

FUTURE OUTLOOK

The Company is looking, for the new Business opportunities to give the best to stakeholders of the Company. The outlook for the Company appears bright on a longterm basis. The Company is hopeful that its performance in the years to come would be encouraging, as the Company is planning to enter into new segments. Your Company will endeavor to maintain and enhance its position in the furniture market.

RISKS AND CONCERNS

Every Company is prone to internal and external risks, including risks around compliance, operational, strategic and many others. Many of these risks are inherent in the enterprise structure of any organization and may interfere with an organizations operations and objectives. Further as our Company is looking, for the new Business opportunities the Following Risk associate for doing any business:

• Market Risk

• Reputation Risk

• Competition Risk

• Technological Risk

• Changes in the policies of the Government of India or political instability may adversely affect economic conditions in India generally, which could impact our business and prospects.

• New and changing, regulatory compliance, corporate governance and public disclosure requirements add uncertainty to our compliance policies and increase our costs of compliance.

The board of directors also reviewed the key risks associated with the business of the Company, the

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procedures adopted to assess the risks, efficacy and mitigation measures.

INTERNAL CONTROL SYSTEMS

The Company has adequate internal control systems for the business processes in respect of all operations, financial reporting, compliance, with laws and regulations etc. The management information system forms an effective and sound tool for monitoring and controlling all operating parameters.

Internal check is conducted on a periodical basis to ascertain the adequacy and effectiveness of internal control systems. The system also helps management to have timely data on various operational parameters for effective review. It also ensures proper safeguarding of assets across the Company and its economical use.

DISCUSSION ON EINANCIAL FEREORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the Financial Year Company has not done any business activity due to lack of financial resource which resulted in to the week financial performance of the Company.

The Highlights of the Companys performance are as under:

During the year, the Company earned Total Revenue of ? 441.55 Lakhs as against ? 738.08 Lakhs in corresponding previous year and earned a net profit of ? 19.47 Lakhs.

HUMAN RESOURCES / INDUSTRIAL RELATIONS

As on 31^st March, 2025, The Company has four Directors (including One MD) One CFO and one CS. Your Company follows a strategy of attracting and retaining the best talent and keep employees engaged, motivated and innovative. The Company continues to have cordial relations with its employees and provide personnel development opportunities for all round exposure to them.

DETAILS OF SIGNIFICANT CHANGES 1I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR! IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE.

Ratios	For the Year ended	For the Year ended	Variation (%)
	March 31, 2025	March 31,2024
(a) Current Ratio	0.62	2.09	(70.33%)
(b) DebtEquity Ratio	1.88	0.20	840.00%
(c) Debt Service Coverage Ratio	2.98
(d) Return on Equity Ratio	5.67%	2.83%	100.25%
(e) Inventory turnover ratio	13.3	12.0	10.83%
(f) Trade Receivables turnover ratio	7.24
(g) Trade payables turnover ratio	0.73
(h) Net capital turnover ratio	6.70	15.91	(57.89%)
(i) Net profit ratio	4.34	1.29	236.43%
(j) Return on Capital employed	46.41%	21.01%	120.89%

Reasons for Variation more than 25%:

1 DebtEquity Ratio increase because company increase Overdraft or working capital borrowings from banks and restructure debt compared to previous period.

2 Debt Service Coverage Ratio increased because increase in net operating income compared to the previous period.

3 Return on Equity Ratio increased because increase in net operating margin compared to the previous period.

4 Trade payables turnover ratio increased because company started taking the advantage of early payment discounts, cash discount and required to make quick payments because of market trends and futuristic approach compared to the previous period."

5 Net profit ratio increased because increase in net operating income compared to the previous period.

6 Return on Capital employed increased because increase in net operating margin compared to the previous period.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS AGARWAL FORTUNE INDIA LIMITED

Sd/

SHARDA AGARWAL Director (DIN 09520743)

Date: 13.08.2025 Place: Jaipur

Sd/

MAHESH KUMAR AGARWAL Managing Director (DIN 02806108)