Binny Mills Ltd Management Discussions

(Pursuant to regulation 34(2) (e) and Schedule V of the Listing Regulations) This report is part of the Directors Report

Indian Economy Overview:

The Indian economy continued to demonstrate resilience and steady growth during the financial year 2025-26, supported by strong domestic demand, stable macroeconomic fundamentals, and ongoing structural reforms by the Government.

India remains one of the fastest-growing major economies globally, driven by robust consumption, increased infrastructure spending, and expansion in manufacturing and services sectors. Government initiatives such as Make in India, Production Linked Incentive (PLI) schemes, and continued focus on digitalization have contributed to industrial growth and improved investor confidence.

Inflationary pressures, although present during the year due to global supply chain disruptions and commodity price volatility, were managed through prudent monetary policies by the Reserve Bank of India. The RBI maintained a balanced approach between controlling inflation and supporting economic growth.

The services sector remained a key growth driver, particularly in information technology, financial services, and telecommunications. The manufacturing sector also witnessed gradual recovery, aided by policy support and increased capital expenditure.

On the external front, India maintained a stable position despite global economic uncertainties, geopolitical tensions, and fluctuating crude oil prices. Foreign exchange reserves remained comfortable, and foreign direct investment (FDI) inflows continued to support economic expansion.

The Union Budget focused on infrastructure development, fiscal consolidation, and boosting private investment, while maintaining support for key sectors such as agriculture, MSMEs, and renewable energy.

Looking ahead, the Indian economy is expected to sustain its growth momentum, supported by favorable demographics, digital transformation, policy reforms, and increased global integration. However, risks such as global economic slowdown, inflation volatility, and geopolitical developments may pose challenges in the near term.

Company-Specific Overview - Textile Operations

Industry Overview

The Company operates in the textile sector, which is a key contributor to the Indian economy in terms of employment generation and export earnings. Supported by initiatives of the Government of India, the sector continues to evolve with increased focus on modernization, technical textiles, and man-made fibers.

Operational Performance

During the financial year under review, the Company has:

Maintained stable operations despite market fluctuations

Strengthened its supply chain and vendor relationships

Opportunities

The Company expects to benefit from the following opportunities:

Growing domestic demand for textiles and apparel

Increasing export opportunities due to global supply chain diversification The company expect benefit from Govt. schemes Rising demand for sustainable and value-added textile products

Threats / Challenges

The Company faces certain challenges, including:

Intense competition from domestic and international players Fluctuations in demand in export markets Increasing compliance and environmental regulations.

Risks and concerns:

The Company is engaged in the trading business and is exposed to risks arising from intense competition in the retail textile industry. However, through its consistent focus on quality, customer satisfaction, and market presence, the Company has established a strong reputation among its customers and developed a recognized brand image for its products. These strengths provide the Company with confidence in its ability to effectively manage and mitigate the impact of competitive market risks.

I nternal control systems and their adequacy:

The Company has adequate internal control systems commensurate with the size, scale, and nature of its operations. These systems are designed to provide reasonable assurance regarding the safeguarding of assets, the accuracy and reliability of financial and operational information, the authorization and recording of transactions, and compliance with applicable laws, regulations, and corporate policies.

Human Resources Development and Industrial Relations

The Company recognizes that its employees are its most valuable asset and places significant emphasis on human resource development and maintaining harmonious industrial relations. The operations of the Company are managed by experienced and qualified professionals. Continuous efforts are made to enhance employees skills and competencies through appropriate training and development initiatives. During the year under review, industrial relations across the organization remained cordial and harmonious.

Environmental Protection

The Company is committed to maintaining a clean, green, and environmentally sustainable workplace. Its environmental policy focuses on compliance with applicable environmental laws and regulations, prevention of pollution, and promotion of eco-friendly practices in its operations. The Company continues to undertake initiatives aimed at energy conservation, efficient utilization of resources, and preservation of the environment and natural resources.

Risk Management

Risk management is an integral and continuous process within the Company. In accordance with the applicable provisions of the Companies Act, 2013 and SEBI regulations, the constitution of a Risk Management Committee is not applicable to the Company. Nevertheless, the Company has established appropriate mechanisms to identify, assess, monitor, and mitigate risks associated with its business operations.

The Company is primarily exposed to Credit Risk and Cash Management Risk. To mitigate Credit Risk, the Company benefits from the expertise and experience of employees who were associated with the business divisions taken over from erstwhile Binny Limited. Their long-standing relationships and familiarity with customers and suppliers have contributed significantly to effective credit monitoring and risk management.

With respect to Cash Management Risk, sales at the Companys retail showrooms are received through a combination of cash and digital payment modes, including QR code-based transactions. To ensure the security and proper management of collections, the Company has implemented robust internal controls and monitoring procedures. Cash collections are deposited into the Companys bank accounts on the following business day, while daily collections are closely monitored and reconciled at the Head Office. In addition, stringent operational checks and internal control measures are maintained at all showrooms.

These procedures and controls have enabled the Company to effectively manage and mitigate risks associated with its business operations. During the financial year 2025-26 the digital transactions are initiated. Hence cash payment was reduced to 4.11% and cash receipts are increased to 11%. The company is trying to maximise the digital mode.

Segment wise and Product wise performance

The details are given in the Para Operations in the DirectorsReport

Outlook :

The details of outlook are given in the Para Outlook and Opportunitiesin the DirectorsReport.

Discussion on financial performance with respect to operational performance:

The details are given in the Para Operationsin the DirectorsReport.

Details of any change in the NetWorth as compared to the immediately previous financial year along with a detailed explanation thereof:

There is no return on NetWorth.

Cautionary Statement:

This report contains forward looking statements that involve risks and uncertainties including, but not limited to, risks inherent in the Companys growth strategy, dependence on certain businesses, dependence on availability of qualified and trained manpower, economic conditions, government policies and other factors. Actual results, performance or achievements could differ materially from those expressed or implied in such forward looking statements. This report should be read in conjunction with the financial statements included herein and the notes thereto.

For and on behalf of the Board

Sd/-
V.R. Venkataachalam
Chairman & Director
[DIN: 00037524]

Registered Office :
No.4, (Old No.10) Karpagambal Nagar,
Mylapore, Chennai 600 004.
CIN: L17120TN2007PLC065807

Date : 31 st July, 2026
Place : Chennai