Ashtasidhhi Industries Ltd Management Discussions

Your Directors have pleasure in presenting the management discussion and analysis report for the year ended on March 31, 2026.

1. ABOUT ASHTASIDHHI INDUSTRIES LIMITED (FORMERLY KNOWN AS GUJARAT INVESTA LTD)

Ashtasidhhi Industries Limited (Formerly Known as Gujarat Investa Limited) (AIL or Company), registered with the Reserve Bank of India (RBI) as a Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC) mainly engaged in lending and offering a wide array of services/products in the financial services sector. But we are in process to surrender our NBFC license to RBI.

We have also change our object clause and starting doing business of ginners, spinners, weavers, manufacturers etc. of raw fabrics and other fabrics materials during FY 2022-23.

Moreover, Reserve Bank of India has approved the change in name of the company on Certificate of Registration No: 01.00022 from GUJARAT INVESTA LIMITED to ASHTASIDHHI INDUSTRIES LIMITED with effect from 11 th March 2025.

2. INDUSTRY AND ECONOMIC SCENARIO

Textiles are materials created from interwoven fibers, encompassing fabrics and cloth made from both natural and synthetic sources. The textile industry is crucial to global economies, supplying essential materials for clothing, home furnishings, and a variety of industrial applications.

Key types of textiles comprise fabrics, yarn, fiber and thread, home furnishings and floor coverings, textile and fabric finishing, fabric coating mills, and other textile product mills. Household furniture encompasses all mobile, compactable items or machinery utilized to furnish a home, including chairs, tables, sofas, mattresses, and more. These textiles utilize diverse materials such as cotton, jute, silk, synthetics, and wool, involving processes such as woven and non-woven.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis.

Tariffs are impacting the textile market by increasing costs of imported fibers, yarns, fabrics, dyes, and textile machinery used across apparel, home furnishings, and industrial applications. Textile producers and exporters in North America and Europe are most affected due to dependence on Asian supply chains. These tariffs are increasing production costs and pressuring export competitiveness. However, they are also driving regional sourcing strategies, local textile manufacturing investments, and innovation in alternative sustainable materials.

The textile market size has grown strongly in recent years. It will grow from $660.13 billion in 2025 to $702.97 billion in 2026 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to expansion of global apparel manufacturing, rising household consumption of textiles, availability of diverse raw fiber sources, growth of home furnishing demand, development of large-scale textile mills.

The textile market size is expected to see strong growth in the next few years. It will grow to $919.08 billion in 2030 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to increasing demand for eco-friendly apparel, expansion of technical textiles in industrial applications, growing investments in smart textile manufacturing, rising focus on circular textile economy, increasing adoption of digital manufacturing technologies. Major trends in the forecast period include growing adoption of sustainable and organic fibers, rising demand for technical and performance textiles, expansion of digital textile printing, increasing use of recycled and bio-based materials, enhanced focus on supply chain traceability.

The rising adoption of online shopping is expected to propel the growth of the textile market going forward. Online shopping refers to consumers purchasing apparel, fabrics, and textile products through internet-based retail channels rather than traditional stores. The increase in online shopping is largely driven by expanding internet access, which allows more people to browse, compare, and purchase products conveniently from anywhere. Rising adoption of online shopping supports the textile industry by increasing demand for a wider variety of fabrics and ready-made garments, enabling manufacturers and retailers to reach a larger customer base, showcase diverse collections, and respond quickly to changing fashion trends. For instance, in February 2024, according to the U.S. Census Bureau, a US- based government agency, total e-commerce sales for 2023 were estimated at $1,118.7 billion, an increase of 7.6 percent (+-1.2%) from 2022. Therefore, the rising online shopping trend is driving the growth of the textile market.

Major companies operating in the textile market are focusing on developing innovative solutions such as artificial intelligence (AI)-powered platforms to enhance production efficiency and improve product quality. Artificial intelligence (AI)-powered platforms for textile manufacturing help optimize production processes, reduce material waste, and enable automated quality inspection of fabrics. For instance, in October 2024, Lectra, a France-based technology company, launched Valia Fashion. Lectras Valia Fashion platform stands out by seamlessly connecting, automating, and streamlining every stage of apparel production, from order processing to fabric cutting. It optimizes material usage and facilitates the digital transformation of fashion companies, aiding their transition toward Industry 4.0. By breaking down barriers between industrialization and production processes, Valia Fashion transforms the fashion ecosystem, enabling brands, manufacturers, and subcontractors to meet their evolving requirements more effectively.

Asia-Pacific was the largest region in the textile market in 2025. Western Europe was the second largest region in the textile market. The regions covered in the textile market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The textile market consists of sales of plant-based, animal-based, cellulosic, synthetic, and semi-synthetic textiles, wool, natural fibers, and inorganic-based textiles. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It

does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Outlook 2026-27:

The textile industry outlook for 2026 reflects cautious optimism as the sector transitions from adjustment to strategic realignment. As global economic conditions gradually stabilize and consumer preferences evolve toward value, durability and sustainability, demand is expected to normalize across key segments, including apparel, home textiles, and technical textiles.

However, volatility will remain a defining feature, requiring manufacturers to adopt agile production models, flexible sourcing strategies, and data-driven decision-making. A defining development for 2026 will be the continued regionalization of global supply chains.

Buyers are increasingly prioritizing sourcing partners located in politically stable regions with strong infrastructure, predictable policy environments, and high compliance standards. This shift creates fresh opportunities for countries that can offer scale alongside transparency and reliability. India is well positioned to benefit from this transition, supported by its integrated textile ecosystem, expanding manmade fiber capacity, and growing expertise in technical and functional textiles.

Increased focus on renewable energy adoption, digital traceability, and circular manufacturing models will further strengthen Indias competitiveness in global sourcing decisions.

At the same time, innovation-led growth will emerge as a key differentiator. Advancements in automation, smart manufacturing, sustainable materials, and fiber innovation will enable manufacturers to improve efficiency while responding to tightening environmental regulations and buyer expectations.

Trade tension and high levels of policy uncertainty are expected to impact global economic activity. The global growth is projected to drop to 2.8% in 2025 and 3% in 2026 from 3.3% for both the years.

3. FINANCIAL PERFORMANCE

During the year under review, the Company has earned a profit after tax of Rs. 7.84 lakhs, as against a profit after tax of Rs. 2.76 lakhs incurred during the previous financial year 2024-25. The improvement in financial performance is mainly attributable to the Companys successful shift in business operations to the textile sector and enhanced operational efficiency.

The Board of Directors is optimistic about the future growth of the Company and expects further improvement in performance in the current financial year through focused execution of its business strategy.

4. CHANGE IN THE BUSINESS NATURE OF THE COMPANY

There was no change in nature of the company during the year under review.

5. CHANGE IN THE NAME OF THE COMPANY .

There was no change in name of the company during the year under review.

6. OPPORTUNITIES & THREATS:

As the Company has changed its changed the nature of Business in FY 2022-23, so the Company is looking for new opportunities in its new business. There is going to be growth in technical textile and man-made fiber industry in the New Year due to government benefits. This should help India in regaining some global market share. There will be more push towards attaining sustainability and traceability in manufacturing processes as well as in products. More interest is likely in investments in the recycling technologies as well as technologies that will help in saving water and chemicals.

7. RISK & CONCERNS

The Company aims to operate within an effective risk management framework to actively manage all the material risks faced by the organization and make it resilient to shocks in a rapidly changing environment. It aims to establish consistent approach in management of risks and strive to reach the efficient frontier of risk and return for the organization and its shareholders. Broad categories of risk faced by the company are Credit Risk, Market Risk, Operational Risk, Cyber Security and Reputation risk. The risk management policies are well defined for various risk categories supplemented by periodic monitoring through the sub committees of the Board.

8. INTERNAL CONTROL SYSTEMS & THEIR ADEQUEACY

The Company has designed its internal control system to ensure operational efficiency, protection and conservations of resources, accuracy and promptness in financial reporting and compliances with laws and regulations. Efficient maintenance of accounts is facilitated by the executives and employees of the Company. Thereafter, the same is audited periodically by the Internal Auditors. The scope of internal audit is well defined and is very exhaustive to take care of all crucial functions and business of the Company. Based on their report, steps are taken at regular intervals to further strengthen the existing systems and procedures. Their significant observations are discussed in the Audit Committee Meetings regularly. Besides, as mandated under Companies Act, 2013, the Statutory Auditors have certified as part of their Audit Report, the effectiveness of Internal Financial Control over financial reporting.

The Directors have appointed M/s. Kamal M. Shah & Co, Chartered Accountants as the Internal Auditors of the Company for the Financial Year 2025-26.

9. HUMAN RESOURCE DEVELOPMENT

The Company firmly believes that Human Capital is its most important asset. A series of engagement interventions across identified key themes were undertaken to increase employee morale and the initiatives focused on key aspects such as physical and mental wellness, celebrations, leadership engagement sessions, fitness and sports, and family engagement activities.

The Company believes that the human resources are vital in giving the Company a Competitive edge in the current business environment. The Companys philosophy is to provide congenial work environment, performance oriented work culture, knowledge acquisition / dissemination, creativity and responsibility. While selecting the training programme, the Company lays emphasis on development of skill and knowledge of its executives in the new vistas of Finance and Information Technology, besides developing the leadership and managerial skills for the future.

The Company continues to run an in-house training program held at regular intervals and aimed at updating their knowledge about issues.

10. ACCOUNTING TREATMENTS

During the under review, all the accounting treatments are done as per the prescribed sections and IND AS applicable to the company.

CAUTIONERY STATEMENT

Statements in the Management discussion and analysis describing the companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the companys operations include economic conditions affecting demand/supply and prices, conditions in the domestic and overseas markets in which the company operates/ going to operate, changes in government regulations, tax laws and other statutes and other incidental factors.

Place: Ahmedabad	BY ORDER OF THE BOARD OF
Dated: 01.09.2026	ASHTASIDHHI INDUSTRIES LIMITED (FORMERLY KNOWN AS GUJARAT INVESTA LIMITED)

	SD/-
	PURUSHOTTAM RADHESHYAM AGARWAL
	CHAIRMAN
	DIN: 00396869
Registered Office:
Office: 252, New Cloth Market,
Opp. Raipur Gate, Ahmedabad, 380002
Gujarat, India
CIN: L17100GJ1993PLC018858