Anand Rayons Ltd Management Discussions

GLOBAL ECONOMY

The Global economy is anticipated to continue navigating a period of transition, marked by steady growth despite facing certain challenges. According to the OECDs Economic Outlook, global GDP growth is projected to slightly moderate, with growth rates of 3.1% in 2025, supported by improving economic conditions across several key regions. While this is a slight slowdown from previous years, it reflects a stable recovery trajectory after the global disruptions of earlier years. (oecd.org)

Inflation rates are also expected to gradually ease, moving from 3.8% in 2025 to 3.2% in 2026 across G20 economies. This reflects improving supply chains and stabilization in commodity prices, which will provide some relief to both consumers and businesses globally. The global economy is likely to experience steady growth, driven by innovation, digital transformation and a more resilient services sector.

In the United States, there are positive signals from various sectors, especially in technology and services, despite some uncertainties around trade policies. Analysts remain cautiously optimistic, with expectations that innovation-driven growth will continue to mitigate the effects of short-term challenges.

INDIAN ECONOMY

Indias economy remains one of the strongest and most resilient globally, showcasing impressive growth despite global uncertainties. The International Monetary Fund (IMF) has projected Indias GDP to grow at 6.8% in FY25, reinforcing its position as a key driver of global growth. This robust growth is supported by continued demand in the services and manufacturing sectors, as well as strategic Government initiatives focused on improving infrastructure and streamlining policies.

In alignment with this outlook, the United Nations World Economic Situation and Prospects Report forecasts Indias economy to expand by 6.6% in 2025, with strong momentum in both domestic and export-driven industries. This growth will be further supported by Government reforms, especially in the manufacturing sector, which is benefiting from initiatives designed to enhance ease of doing business and boost exports.

While some programs, such as the Production-Linked Incentive (PLI) scheme, are evolving to maximize their impact, Indias growth trajectory remains positive. The PLI initiative continues to attract investment in key sectors, with further refinements to ensure long-term competitiveness.

INDIAN TEXTILE INDUSTRY

India is the worlds second-largest producer of textiles and garments. The fundamental strength of the textile industry in India is its strong production base of a wide range of fiber/yarns from natural fibers like cotton, jute, silk and wool to synthetic/man-made fibers like polyester, viscose, nylon and acrylic. The textile industry serves as the platform offering a huge number of employment opportunities to eligible people in India. Both skilled laborers and unskilled officials are needed to run this business smoothly. India enjoys a comparative advantage in terms of skilled manpower and in cost of production relative to other major textile producers.

However, in recent times prices of cotton have increased significantly. The main reasons behind this rise are: lower domestic cotton production, higher demand and increasing international prices. Large cotton traders and multinational companies (MNCs) purchased and stockpiled huge quantities of cotton. Some quantity has also been exported. As prices skyrocket, the smaller mills are unable to purchase cotton due to working capital shortages. Orders from textiles firms have dried out as spinning yarn and knitting garments at the current cotton prices is becoming unviable for companies.

OUR BUSINESS OVERVIEW

The Company is in the business of yarn trading/Authorized dealer of various companies. It is a leading company offering various types of yarn to national markets. However, Competition in the industry is continuously increasing, but overall Performance of the Company is good.

Financial Performance of Company:

Turnover: Company has achieved a turnover of Rs. 31375.16 Lacs in the year 2024-25 as against Rs. 34425.54 Lacs during the previous year.

Other Income: Other income for the year 2024-25 is amounting to Rs. 10.26 Lacs against Rs. 7.75 Lacs in the previous year.

Consumption of Raw material: Consumption of raw materials decreased from Rs. 33086.37 Lacs to Rs. 30075.18 Lacs.

Employee Cost: Employee costs were decreased from Rs. 193.13 Lacs to Rs. 144.65 Lacs due to decrease in expenditure for employee benefits.

Interest Cost: Interest costs were decreased from Rs. 288.80 Lacs to Rs. 265.85 Lacs.

The Company delivered moderate performance despite of headwinds and made consistent progress in strengthening the established business segments through high value products.

Opportunities & Threats

Synthetic Yarn has good share in total yarn production; Indias growing population has been a key driver of textile consumption growth in the country. It has been complemented by a young population which is growing and at the same time is exposed to changing tastes and fashion. Rising incomes has been a key determinant of domestic demand for the sector; with incomes rising in the rural economy as well, the upward push on demand from the income side is set to continue.

Further, the technology element plays a crucial role in the growth of the Indian textile industry. Technology has reshaped the textile industry to meet the rising demands and trends by providing data-driven customer operations. The Advanced Technology machinery with high quality cotton enables the company to manufacture superior quality yarn.

Manpower: Company is in trading of Synthetic Yarn, company does not require any technical personnel, other than marketing personnel.

High Competition and Law Profitability: The yarn Industry has entered into the orbit of the high competition. Various brands and various quality yarn are available in the market. Due to high competitions in market, we have to fluctuate the profit margin to maintain the turnover of the company.

New Entrants: More and more new organized and unorganized players are entering into market which will increase competition in our business sector also.

Risk and concerns:

Stiff competition from the organized and unorganized players as well as from the imported yarns resulting in lower margins or losing out the customers. However, due to strong and stable relationship with clients, the company has at its own penetrated markets and maintained its offerings and sales revenues.

Internal Financial Control Systems and their adequacy:

The Company has aligned its current systems of internal financial control with the requirement of Companies Act 2013. The Internal Control is intended to increase transparency and accountability in an organizations process of designing and implementing a system of internal control. The Company has successfully laid down the framework and ensured its effectiveness. The Company has in place a well-defined system to record data for accounting and management information purposes and connects to different locations for efficient exchange of information.

Though the various risks associated with the business cannot be eliminated completely, all efforts are made to minimize the impact of such risks on the operations of the Company. Necessary internal checks and control systems are to be implemented by the Company on various activities in the organization to ensure that business operations are systemized in achieving the best performance.

M/s M. R. Bombaywala & Co., Chartered Accountants, the statutory auditors of the Company has audited the financial statements included in this annual report for the year 2024-25 and has issued an attestation report on our internal control over financial reporting (as defined in section 143 of Companies Act, 2013).

The audit committee meets the statutory auditors of the Company to ascertain, inter alia, their views on the adequacy of internal control systems and keeps the board of directors informed of its major- observations periodically. Based on its evaluation (as defined in section 177 of Companies Act 2013), our audit committee has concluded that, as of March 31, 2025, our internal financial controls were adequate and operating effectively.

Material Developments in Business activities, Human Resources / Industrial Relations Front, including number of people employed:

The Company always recognizes the importance of manpower. Company promotes employees and encourages them to make contribution toward company, family and nation at large. Company also encourages the employees to offer their creative suggestions for development in their respective areas which are thoroughly discussed in periodical meetings. The company enjoyed excellent relationship with staff during the last year as on March 31, 2025 the company has 30 employees at its Surat Office. The Company has been maintaining cordial and healthy Industrial Relations, which has helped to a great extent in achieving the upper growth.

Environment, Health and Safety (EHS)

The Company is conscious of the importance of environmentally clean and safe operations. The Companys policy requires conduct of operations in such a manner so as to ensure safety of all concerned, compliances of guidelines in force by local authorities, environmental regulations and preservation of natural resources.

Human Resources

The Company believes that the quality of the employees is the key to its success and is committed to equip them with skills, enabling them to seamlessly evolve with ongoing technological advancements. During the year, the Company organized training programmes in different areas such as technical skills, behavioural skills, business excellence, general management, advanced management, leadership skills, customer orientation, safety, values and code of conduct.

Cautionary Statement:

Statement in this Management and Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be forward looking statement and within the meaning of applicable laws and regulations. Actual results may or might differ materially from those either expressed or implied.

	For and on behalf of Board of Directors
	Anand Rayons Limited
Place: Surat
Date: August 11, 2025
Anand Bakshi	Shilpa Bakshi
Managing Director	Whole time Director
(DIN: 01942639)	(DIN: 07986896)