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, 2026.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian glass market was worth about USD 2.7 billion during 2011-12. The per capita glass consumption was 1.2kg compared with 8-9 kg in developed countries and 30-35 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 has share of 55-60% 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 5-6 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 fastest-growing markets for glass due to rapid urbanization, infrastructural development, and growth in end-user industries. The construction sector in India, which is the largest consumer of flat glass, is witnessing robust expansion, propelled by government-led initiatives and private sector development. Major metropolitan areas (Delhi, Mumbai, Kolkata, etc.) are seeing surging demand for architectural glass as modern high-rise buildings increasingly feature glass facades, windows and doors for aesthetic and energy-conservation 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 value-added 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, fa?ade glazing and daylight-friendly designs) has increased the glass-to-wall ratio in buildings, thereby driving higher glass consumption per project.

Outlook:

Various forecasts have estimated a sharp de-growth in the Indian economy for the current financial year, the first such instance of de-growth 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 liquidity flows

- Increased intensity of competition from local and global players

- Market trends making other assets relatively attractive as investment avenues

SEGMENT-WISE & PRODUCT-WISE 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 ? 562.43 Lakhs as against 441.55 Lakhs in corresponding previous year and earned a net profit of ? 6.22 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 long-term 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 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 FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Highlights of the Companys performance are as under:

During the year, the Company earned Total Revenue of ? 562.43 Lakhs as against 441.55 Lakhs in corresponding previous year and earned a net profit of ? 6.22 Lakhs.

HUMAN RESOURCES/INDUSTRIAL RELATIONS

As on 31st March, 2026, the Company had 2 permanent employees on its rolls (i.e. one Chief Financial Officer and one Company Secretary.)

The Company recognizes its employees as an important resource and strives to maintain a conducive and professional work environment. The Company continues to maintain cordial and harmonious relations with its employees and provides appropriate opportunities for their professional development, learning and overall growth. The Company remains committed to attracting, retaining and developing talent in line with its business requirements.

DETAILS OF SIGNIFICANT CHANGES (I.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 March 31, 2026	For the Year ended March 31, 2025	Variation (%)
(a) Current Ratio*	0.81	3.57	-77.31
(b) Debt-Equity Ratio*	2.82	1.88	50.00
(c) Debt Service Coverage Ratio*	1.46	2.98	-51.01
(d) Return on Equity Ratio*	1.81%	5.67%	-68.08
(e) Inventory turnover ratio*	9.89	13.30	-25.64
(f) Trade Receivables turnover ratio*	10.04	7.24	38.67
(g) Trade payables turnover ratio*	29.00	0.73	3872.60
(h) Net capital turnover ratio	7.80	6.70	16.42
(i) Net profit ratio*	1.11%	4.35%	-74.48
(j) Return on Capital employed*	25.41%	16.08%	58.02

Reasons for Variation more than 25%:

1. Decrease in Current Ratio is mainly due to a significant increase in current borrowings and other current liabilities during the year.

2. Increase in Debt-Equity Ratio is mainly due to an increase in borrowings during the year, resulting in higher financial leverage.

3. Decrease in Debt Service Coverage Ratio is mainly due to lower profitability and higher finance costs during the year.

4. Decrease in Return on Equity Ratio is mainly due to a significant reduction in profit after tax during the year.

5. Decrease in Inventory Turnover Ratio is mainly due to a significant increase in inventory during the year.

6. Increase in Trade Receivables Turnover Ratio is mainly due to higher revenue from operations coupled with a relatively moderate increase in trade receivables during the year.

7. Increase in Trade Payables Turnover Ratio is mainly due to a significant reduction in trade payables during the year.

8. Decrease in Net Profit Ratio is mainly due to a significant reduction in profit after tax despite an increase in revenue from operations during the year.

9. Increase in Return on Capital Employed is mainly due to a significant reduction in capital employed during the year.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

AGARWAL FORTUNE INDIA LIMITED

Sd/-

MAHESH KUMAR AGARWAL

Managing Director

(DIN - 02806108)

Sd/-

SHARDA AGARWAL

Director

(DIN – 09520743)

Date: 12.08.2026

Place: Jaipur

Disclaimer:

This section of the Annual Report has been included in adherence to the spirit enunciated in the Code of Corporate Governance approved by the Securities and Exchange Board of India. Shareholders and Readers are cautioned that in the case of data and information external to the Company, though the same are based on sources believed to be reliable, no representation is made on its accuracy or comprehensiveness. Further, utmost care has been taken to ensure that the opinion expressed therein contain its perceptions on most of the important trends having a material impact on the Companys operations.

The opinions expressed by the management may contain certain forward-looking statements in the current scenario, which is extremely dynamic and increasingly fraught with risk and uncertainties. The Company undertakes no obligation to publicly update or revise any of the opinions or forward-looking statements expressed in this report, consequent to new information, future events, or otherwise. Estimation and expectation made in the Report may differ from actual performance due to various Economic conditions, Government Policies and other related factors.