Arman Holdings Ltd Management Discussions

Pursuant to Regulation 34 (2)(e) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion & Analysis Report for the year under review is given below:

Indian Economy

India, a South Asian nation, is the seventh-largest country by area, the most populous country with over 1.46 billion people, and the most populous democracy in the world. India boasts of an immensely rich cultural heritage, including numerous languages, traditions, and people. The country holds its uniqueness in its diversity and hence has adapted itself to international changes with poise and comfort. While the economy has welcomed international companies to invest in it with open arms since liberalisation in the 1990s, Indians have been prudent and proactive in adopting global approaches and skills. Indian villagers have proudly taken up farming, advanced agriculture, and unique handicrafts as their profession on one hand, while the modern industries and professional services sectors are coming up in a big way on the other.

Thus, the country is attracting many global majors for strategic investments owing to the presence of a vast range of industries, investment avenues, and a supportive Government. A huge population, mostly comprising the youth, is a strong driver for demand and an ample source of workforce.

Current State of the Economy

According to the Ministry of Statistics and Programme Implementation (MoSPI), the Second Advance Estimates project Indias real GDP to grow by 7.6% in FY26, while nominal GDP is estimated to expand by 8.6%. Real GVA is expected to grow by 7.7%, reflecting sustained expansion in productive activity across sectors, while nominal GVA growth is estimated at 8.7%. Nominal GDP has increased significantly from Rs. 1,06,57,000 crore (US$ 1.75 trillion) in FY15 to Rs. 3,45,47,000 crore (US$ 3.91 trillion) in FY26 (Second Advance Estimates).

Provisional estimates of Gross value added (GVA) at current prices by economic activity (at 2011-2012 prices) for FY26 (Second Advanced Estimates) are as follows:

• Agriculture, livestock, forestry & fishing: Rs. 52,08,800 crore (US$ 589.36 billion).

• Mining & quarrying: Rs. 6,02,175 crore (US$ 68.13 billion).

• Manufacturing: Rs. 47,83,866 crore (US$ 541.28 billion).

• Electricity, gas, water supply & other utility services: Rs. 6,81,743 crore (US$ 77.14 billion).

• Construction: Rs. 26,63,550 crore (US$ 301.37 billion).

• Trade, hotels, transport, communication & services related to broadcasting, storage: Rs. 42,20,102 crore (US$ 477.50 billion).

• Financial, real estate, IT, professional services & ownership of dwelling: Rs. 76,73,725 crore (US$ 868.26 billion).

• Public administration, defence & other services: Rs. 36,05,948 crore (US$ 408.00 billion).

• Forex Reserves: Rs. 65,20,745 crore (US$ 688.05 billion), as of March 27, 2026.

• Value of Cumulative Merchandise & Services: Indias total cumulative exports (merchandise & services) during April-March 2026 stood at Rs. 76,01,875 crore (US$ 860.09 billion). Indias total imports during April-Mach 2026 stood at Rs. 86,55,937 crore (US$ 979.40 billion)

• Export Partners: The United States, United Arab Emirates (UAE), and China emerged as the top destinations, with Netherlands, United Kingdom, and Singapore also serving as major markets.

• Currency (code): Indian rupee (Rs).

• Exchange Rates: Indian rupee per US$: US$ 1 = Rs. 88.73 as of December, 2025.

• Fiscal Year: April 01 - March 31.

• Cumulative FDI Equity Inflow: Rs. 51,85,639 crore (US$ 776.75 billion) (from April 2000- December 2025).

o Share of the top investing countries in FDI Equity Inflow: Singapore (25%), Mauritius (24%), USA (10%), Netherlands (7%), Japan (6%), the UK (5%), the UAE (3%), the Cayman Islands (2%), and Cyprus (2%), Germany (2%) from April 2000-December 2025. o Key sectors attracting the highest FDI Equity Inflow: Services Sector (16%), Computer Software & Hardware (16%), Trading (7%), Telecommunications (5%), Automobiles (5%), etc from April 2000-December 2025.

https://www.ibef.org/economy/indiasnapshot/about-india-at-a-glance

• The Indian government accepted the recommendation of GJEPC to promote indigenous manufacturing in the emerging Lab-grown diamond sector by providing research grants to the Indian Institute of Technology (IIT) for five years.

• India has signed an FTA with the UAE, which will further boost exports and is expected to reach the target of US$ 52 billion.

• The Government has reduced customs duty on cut and polished diamonds and coloured gemstones from 7.5% to 5% and NIL.

• Revised SEZ Act is also expected to boost Gems & Jewellery exports.

Outlook

Indias Gems & Jewellery market size stood at Rs. 7,31,255 crore (US$ 85 billion) in January 2026 and is projected to expand to Rs. 11,18,390 crore (US$ 130 billion) by 2030. During FY26 (April- February 2026), Indias gems and jewellery exports stood at US$ 25.93 billion.

The latest growth momentum is being driven by increasing global demand for gold jewellery and cut & polished diamonds, supported by favourable trade agreements and rising consumer spending in key markets such as the US, UK, and the Middle East.

The future of Indias Gems & Jewellery sector will be shaped by the growing dominance of large retailers and established brands, which are steadily expanding their presence across the country. Organised players are not only introducing greater variety in terms of designs and product lines but are also driving higher levels of professionalism, transparency, and consumer trust in the market.

Policy support remains a key growth catalyst. The governments liberal measures, such as easing restrictions on gold imports, reintroducing low-cost gold metal loans, and promoting exports through favourable trade agreements, are providing a strong foundation for sustained expansion.

India is already recognised as a global hub for jewellery manufacturing, supported by ~450 organised manufacturers, importers, and exporters.

These players, backed by increasing government support and rising global demand, are well- positioned to cater to both domestic and international markets. With these positive developments, Indias Gems & Jewellery industry is projected to grow to Rs. 11,18,390 crore (US$ 130 billion) by 2030, reaffirming its pivotal role in the countrys exports and retail ecosystem.

Financial Performance

The current year was good year for your Company. The Company is trading in textile, plastic products, precious metal and stones and related products. The Company has managed to maintain a growth trajectory in its financial performance in the current financial year. Further, the Management expects a good financial performance in the new business in the next financial years.

The Total Income for the financial year under review decreased marginally to Rs. 356.80 Lakhs against Rs. 366.88 Lakhs during previous year whereas the Profit after Tax generated by the company during the

year under review is Rs. 95.04 Lakhs as compared to loss of Rs. 1.55 Lakhs during the previous year. The company is working hard to increase the profitability in the forthcoming years.

The company is working hard to increase the profitability in the forthcoming years.

Key Financial Ratio:

The key financial ratios are as under:

Opportunities and Threats

We believe that the factors which contribute to our strengths are our ability to adapt to the ever changing environment, maintaining continuous growth, creating new market opportunities, efficient leadership qualities and maintaining good customer relationship. The company is doing business of trading and importing in toys, plastic and related products, textile and trading of precious stones & metal which is as per the objects of the company. The management is hopeful of expanding its business.

There is a huge opportunity to move the gold and Jewellery business from unorganized to organized space in many countries including India and China. The organized segment has tremendous growth prospects. Growing consciousness of branded jewellery, increasing purchasing power in the Tier I & II locations, and increasing demand for diamond jewellery are major opportunities for the next 10 to 15 years. The major threat could be changes in government policy with regard to import and export of gold products.

Risk & Concern

The Board of Directors have framed and regularly implement and monitor risk management plan of Company. Major risk identified by the business and function are systematically addressed through mitigating actions on a continuing basis.

The Company has successfully been in gold business for many years and has developed systems to mitigate most of the perceivable risks. The Company has ambitious expansion plans to increase its profitability, these plans require large scale and meticulous execution capabilities. Even though the company has planned its execution strategy, there would always be a concern and risk of execution.

Segment-wise Performance:

The company has three reportable business segments i.e. Textile Products, Precious Metal & Stones and Plastic & related products.

Internal control systems and their adequacy

Adequate internal controls, system and checks are in place commensurate with the size of the Company and nature of its business. The Company has a well-placed, proper and adequate internal financial control system which ensures that all assets are safeguarded and protected and that the transactions are authorized recorded and reported correctly.

The Board reviews the effectiveness of controls documented as a part of internal financial control framework and take necessary corrective and preventive actions wherever weaknesses are identified as a result of such reviews. This review covers entity level controls, process level controls, fraud risk controls and Information Technology environment.

Material developments in Human Resources / Industrial Relations front, including number of people employed.

The companys objective is to create an inspirational work climate where talented employees engaged in creating sustained value for the stakeholders. There is no material development in Human Resources / Industrial Relations front except those mentioned in the directors report. Total No. of employees appointed in the company are 5.

Cautionary Statement

Statements in the Management discussion and analysis, describing the Companys objectives, outlook, opportunities and expectations may constitute "Forward Looking Statements" within the meaning of applicable laws and regulations. The actual result may vary materially from those expressed or implied in the statement. Several factors make a significant difference to the companys operations including the government regulations, taxation and economic scenario affecting demand and supply condition and other such factors over which the Company does not have any direct control.

Code of Conduct

As prescribed under Regulation 34(3) of SEBI (LODR) Regulations 2015, a declaration signed by the Whole time Director and Chief Financial Officer affirming compliance with the Code of Conduct by the Directors and Senior Management Personnel of the Company for the financial year 2025-26 forms part of the Corporate Governance Report.