Ajwa Fun World & Resort Ltd Management Discussions

Industry Structure and Developments

The Indian hospitality, amusement park, and resort industry experienced stable, domestic-led growth during the 2025-2026 fiscal cycle. Key emerging market developments include:

• Micro-Vacations Growth: Rising demand for short weekend getaways and highway tourism near Tier-2 urban hubs.

• Integrated Destinations: Strong consumer preference for properties combining amusement parks, water sports, and themed resort cottages under a single operational footprint.

• Regional Hub Performance: Heightened footprint traction across primary tourist corridors in Western India, driven by local corporate outings, wedding events, and family-oriented weekend traffic.

Operational Overview and Strategy

The Company continues to focus on strengthening its position in the core recreation and hospitality segment. Key operational vectors implemented during the year include:

• Asset Optimization: Focused maintenance and regular updates to our existing water park attractions, event plots, and food and beverage facilities.

• Targeted Regional Marketing: Expanding local visibility to capture high-density footfalls from nearby metropolitan areas.

• Operational Control: Implementing strict cost-containment measures across food, beverage, and seasonal entertainment operations to protect margins against inflationary pressures.

3. Financial Performance and Analysis

A review of the standalone financial status for the fiscal year ended March 31, 2026 highlights the following operational outcomes:

• Revenue Volatility: The business experienced shifting quarterly top-line performance, heavily influenced by weather changes and off-season shifts in public recreational spending.

• Profitability and Margins: Net income levels remained narrow. Fixed overheads?such as park maintenance and employee expenses?limited near-term profit growth.

• Capital Structure: The balance sheet remains fundamentally robust, supported by minimal longterm debt and low leverage risks.

• Working Capital Cycle: Management notes an extended working capital cycle, primarily caused by seasonal receivables and high debtor days. Addressing this asset velocity remains an active internal priority.

4. Opportunities, Threats, Risks, and Concerns

Operating in a highly dynamic discretionary spending market presents distinct challenges and opportunities:

5. Internal Control Systems and Their Adequacy

The Company maintains an structured internal control framework designed to safeguard assets and ensure compliance:

• Audit Oversight: The Audit Committee regularly monitors the scope and efficacy of financial reporting.

• Policy Enforcement: Stringent review systems prevent unauthorized asset use and track transaction recording accuracies.

• Compliance Checks: Periodic verification processes confirm strict adherence to all SEBI, accounting standard (Ind AS), and statutory regulations.

6. Human Resources and Industrial Relations

The Company recognizes that service delivery standards directly impact guest satisfaction:

• Training Initiatives: Regular programs were conducted to upgrade guest services, safety protocols, and emergency readiness.

• Relations Status: Industrial and staff relations across all amusement parks and resort centers remained peaceful and cooperative throughout the fiscal year.

7. Forward-Looking Outlook

Looking into the next fiscal cycle, management targets selective facility upgrades and higher non-peak occupancy. By leveraging existing debt-free advantages, the Company aims to improve liquidity patterns, fast-track sluggish collection timelines, and maximize long-term shareholdervalue.

CAUTIONARY STATEMENT

Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be ‘forward looking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could however differ from those expressed or implied. Many important factors including global and domestic estimates, changes in government regulations, tax laws and other statutes, and force majeure may affect the actual result which could be different from what the directors envisage in terms of future performance and outlook.

SALE OF PROPERTY AND DIVERSIFCATION OF BUSINESS

During the financial year under review, the Company disposed of its immovable property situated at CTS number NA 62 and land admeasuring 69,973 sq mtrs bearing CTS number NA 63 (P) situated at Village Rayantal wadi, Taluka Waghodia, District Baroda, India pursuant to the approval of the Board of Directors and, where applicable, the Members of the Company. The sale was undertaken in the ordinary course of business/to optimize the Companys asset portfolio/to meet business and financial requirements.

The transaction was carried out at an arms length basis and in compliance with the applicable provisions of the Companies Act, 2013, the rules made thereunder, and other applicable laws. The proceeds from the sale have been/will be utilized towards repayment of borrowings, capital expenditure as well as for diversification of business

The Board is of the opinion that the aforesaid transaction is in the best interests of the Company and its stakeholders.

The sale of the property did not constitute a related party transaction. All applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including disclosure requirements relating to material events, were duly complied with. Where required, the approval of the shareholders under Section 180(1)(a) of the Companies Act, 2013, and the applicable provisions of the SEBI (LODR) Regulations was obtained.