Anjani Synthetics Ltd Management Discussions

1. INDUSTRY STRUCTURE, DEVELOPMENT

During the period under the review, the Company had been operating in Textile activities i.e. cloth processing. The textile sector has always been an important part of people s lives in India. The textile industry in India is one of the oldest manufacturing sectors in the country and is currently it s largest. The government has been pushing for indigenous production through Make in India campaign to bring down imports. The textile industry is a significant contributor to the economy, both in terms of its domestic share and exports. The Indian textiles industry is extremely varied, with the handspun and hand-woven textiles sectors at one end of the spectrum, while the capital intensive sophisticated mills sector at the other end of the spectrum. The decentralized power looms/hosiery and knitting sector form the largest component of the textiles sector. The Indian textile industry has the capacity to produce a wide variety of products suitable to different market segments, both within India and across the world. The growth of textile sector is largely depends on consumer spending and multiple factors like actual and perceived economic condition, disposable income and employment.

2. REVIEW & FUTURE OUTLOOK OF THE COMPANY

The company has continued its efforts on enhancing its product profile and customer segments which have helped it improve upon the margins. Over last few years, the company has invested into its operational capabilities targeted towards value-added products and has taken various initiatives to strengthen its manufacturing facilities and marketing setup. These steps have helped the company off-set the adverse impact of lower volumes to some extent. Moreover, the company s focus continues to remain on better controls over the operational costs as a continuing mission and its results are visible in terms of reduced costs across most expense heads.

Various aspects like working conditions of workers, health related issues, minimizing risk of accidents at work place etc. are being taken care of by the Company.

3. OPPORTUNITIES & THREATS

The Government is committed to encourage the healthy growth of Capital Market for development of the Economy. While the government seems committed to reforms to address the challenges, political compromises and high populist spending in an election year will mean that tough decisions are more likely to be deferred. Financial health of the textile sector will play a major role going forward. The current uncertain business environment can pose an enhanced risk in terms of timely liquidity and financial soundness of the business partners.

4. SEGMENT-WISE PERFORMANCE

The Company s main business activity is textile and its related activities which fall under single reportable segment i.e. Textiles . The Company has majorly focused on quality, production and export.

5. OUTLOOK

Management has already taken measures to contain the adverse impact by way of optimizing plant operations, cash flow and liquidity management and effective cost management. The business situation is likely to remain very challenging in times to come. The focus will also shift to ensure adequate risk management in light of volatile and uncertain economic scenario. Further, the Company continues to explore the possibilities of expansion and will make the necessary investments when attractive opportunities arise.

6. RISK & CONCERNS

The Company is exposed to specific risks that are particular to its business and environment within which it operates, including Interest Rate Risk, Commodity Price Risk, Risk of Product Concentration and other Business Risk. While risk is an inherent aspect of any business, the Company is conscious of the need to have an effective monitoring mechanism and has put in place appropriate measure for its mitigation including business portfolio risk, financial risk and legal risk

7. INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

The Company s operating and business control procedures ensure efficient use of resources and comply with the procedures and regulatory requirements. The Company has appropriate internal control systems for business processes, with regard to efficiency of operations, financial reporting, compliance with applicable laws and regulations etc. All operating parameters are monitored and controlled. Regular internal audits and checks ensure that responsibilities are executed effectively. The system is improved and modified continuously to meet with changes in business conditions, statutory and accounting requirements. The Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of internal control systems and suggests improvement for strengthening them, from time to time.

The Directors have appointed M/s. ACM & Associates., Chartered Accountants as the Internal Auditors of the Company for FY 2025-26.

8. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year, the Company has recorded a turnover of Rs. 2,81,76,04,251 as compared to Rs. 2,24,26,07,724 in the previous year. The Company has made net profit of Rs. 3,79,07,099 as compared to Rs. 3,32,05,918 of the previous year after providing depreciation, tax, etc. for the year ended 31st March 2026.