Disha Resources Ltd Management Discussions

Your directors have pleasure in presenting the Management Discussion and Analysis Report for the year ended on March 31, 2025.

OVERVIEW OF THE ECONOMIN SCENARIO:

GLOBAL SITUATION:

The Capital market witnessed record levels of activity and participation, supported by improved investor sentiment, stable policy framework, and increasing financial literacy.

The global economy in FY 2024 25 navigated a complex and uneven recovery path amidst several ongoing challenges. While inflationary pressures eased in advanced economies, central banks across the world remained cautious, maintaining a tight monetary stance. The United States experienced resilient consumer spending and a stable labor market, allowing it to avert recession fears, though growth remained modest. In the Eurozone, growth remained subdued due to high energy prices and geopolitical uncertainties stemming from the prolonged Russia Ukraine conflict. Chinas post-pandemic recovery showed signs of fatigue, with sluggish domestic demand, real estate sector stress, and export headwinds weighing on growth momentum. According to the International Monetary Fund (IMF), global GDP growth is estimated at 2.8% in FY2025 as compared to its projection of 3.2% for FY2024. Key downside risks include ongoing geopolitical tensions, volatility in commodity markets, and tighter global financial conditions. These factors have implications for capital flows, investment activity, and trade patterns across emerging markets, including India. From an infrastructure perspective, global investors continued to demonstrate keen interest in long-term sustainable assets such as affordable housing, renewable energy, and climate-resilient infrastructure. However, project financing remained constrained due to higher interest rates and cautious lending by global financial institutions. India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships. India is expected to become the third-largest economy in the world with a GDP of $5 trillion in the next three years and touch $7 trillion by 2030 on the back of continued reforms. Ten years ago, India was the 10th largest economy in the world, with a GDP of $1.9 trillion at current market prices. Today, it is the 5th largest with a GDP of $3.7 trillion. The government has, however, set a higher goal of becoming a developed country by 2047.

DOMESTIC SITUATION:

Indias economy remained a bright spot in the global landscape, demonstrating resilience and strong fundamentals despite external headwinds. As per estimates from the Reserve Bank of India (RBI) and the Ministry of Finance, Indias GDP is expected to grow by 7.0 7.2% in coming years, supported by robust domestic demand, higher capital expenditure by the government, and a rebound in private investment.. Amid this favorable macroeconomic backdrop, the company strategically specialized its business functioning and initiated a major shift towards securities trading and long term investments. While this transition impacted short-term revenue, it aligned the company with broader market trends and economic opportunities.

Looking ahead, the Indian economy is expected to remain a key growth engine globally and the company remains optimistic about leveraging these macroeconomics tailwinds for sustained value creation.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

Disha Resources Limited was originally incorporated on 06th March, 1995 with the Main Object as mentioned in the Memorandum of Association of the Company which reflects that the Company is carrying on business of Real estate and Financing Activity. Before couple of years, the Company has identified and altered the main object clauses of MOA so as to include the trading of jewelry made of or containing gold, silver, diamond, platinum or any other precious and semi-precious metals, Logistic Services, Trading of waste paper, recycling of paper, trading of textile, coal and coal related products, convertors, processors of all kinds and classes of all kinds of commodities.

In line with this diversification strategy, the Company has steadily shifted its focus from sale of metal based/ Jewellery products to broader trading activities. During the financial year 2024-25, the Company primarily engaged in securities trading, marking a significant strategic transition. The performance of the Companys trading activity during the year has been encouraging. The director remain optimistic about evolving business model and are committed to driving growth through diversified trading operations, long term investment in securities, and a customer-centric approach. Going forward, the Company aims to establish a strong PAN-India presence while continuing to deliver value through efficient operations and high quality offerings across its diversified segments.

2. OPPORTUNITIES & THREATS:

India is deemed to be the hub of the global jewellery market because of its low costs and availability of high-skilled labour. India is the worlds largest cutting and polishing center for diamonds, with the cutting and polishing industry being well supported by government policies. Moreover, India exports 75 per cent of the worlds polished diamonds, as per statistics from the Gems and Jewellery Export promotion Council (GJEPC). Indias Gems and Jewellery sector has been contributing in a big way to the countrys foreign exchange earnings (FEEs). The Government of India has viewed the sector as a thrust area for export promotion. The Indian government presently allows 100 per cent Foreign Direct Investment (FDI) in the sector through the automatic route.

In the coming years, growth in Gems and Jewellery sector would be largely contributed by the development of large retailers/brands. Established brands are guiding the organized market and are opening opportunities to grow. Increasing penetration of organized players provides variety in terms of products and designs. Also, the relaxation of restrictions of gold import is likely to provide a fillip to the industry. The improvement in availability along with the reintroduction of low-cost gold metal loans and likely stabilization of gold prices at lower levels is expected to drive volume growth for jewellers over short to medium term. The demand for jewellery is expected to be significantly supported by the recent positive developments in the industry.

3. SEGMENT-WISE PERFORMANCE:

During the financial year 2024-25, the company diversified its business activities across various segments, including trading in jewellery, industrial supplies, logistics services, paper recycling, textile trading and securities trading

The revenue from Operations for the year stood at 3.25 lakhs, in contrast of the previous year revenue of 1.41 crores generated through main business operations..

During the year, the Company made significant investments in securities exceeding 3 crore with the objective of generating robust income, which is intended to serve as a secondary income stream to support the Companys growth.

4. OUTLOOK:

The Company remains optimistic about future, despite the challenges faced during the year 2024-25. The companys strategy is expected for sustainable growth and value creation in the upcoming years. The Indian Jewelry and capital market continue to present opportunities driven by economic reforms and increased investor participation.

Despite the challenging environment reflected in the current year financial results, the reduction in borrowings and continue investment demonstrate the Companys commitment to financial prudence and growth-oriented capital allocation.

5. RISK & CONCERNS:

The management wants to highlight the current financial year (2024-25) return, which is subsequently below in compare to previous year income. In continuance also stated that there are certain opportunities which comes along with risks. Company is in need to cope up with the challenges. Currently the major risk is Domestic gold jewelry consumption is likely to decline by 9-10% in 2025-26, mainly due to a 33% surge in gold prices. The risk that the company is facing is mainly due to combination of factors including increased global economic uncertainty, geopolitical tensions and other allied factors to it.

To mitigate risk at all level, company have experienced management and staff. The Company is exposed to specific risks that are particular to its business, including interest rate volatility, economic cycle, market risk and credit risk. The management continuously assesses the risks and monitors the business and risk management policies to minimize the risk.

6. INTERNAL CONTROL SYSTEMS & THEIR ADEQUEACY:

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The scope and authority of the Internal Audit function is defined by the Audit Committee. To maintain its objectivity and independence, the Internal Audit function reports to the Chairperson of the Audit Committee of the Board /and to the Chairperson. The internal financial controls are adequate and are operating effectively so as to ensure orderly and efficient conduct of business operations. The Company has appointed M/S SNDK & ASSOCIATES LLP, Chartered Accountants, as internal auditors of the Company. The Audit Committee in consultation with the internal auditors formulates the scope, functioning, periodicity and methodology for conducting the internal audit.

The Internal Audit Department monitor and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies of the Company. Based on the report of internal audit function, the Company undertakes corrective action in their respective areas and thereby strengthen the controls Significant audit observations and recommendation along with corrective actions thereon are presented to the Audit Committee of the Board.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (‘IND AS) specified under Section 133 of the Companies Act, 2013 and the applicable Rules, as amended from time to time and other applicable provisions.

During the year under review, the revenue from operations of the Company on standalone basis has declined from Rs. 14,073,680/- in the previous year to Rs. 3,24,891/. Consequently, the Companys net loss Rs. 56,68,393/- for the year 2024-25 against a net profit of Rs. 30,243,552/- during the previous year.

8. HUMAN RESOURCE DEVELOPMENT:

The Company believes investing in people though creating an environment where people are valued as individuals and are given equal opportunities for achieving professional and personal goal. We are strong believers of developing and retaining talent by treating our employees with dignity, honesty and respect. We have a continued philosophy of hiring high performance individuals. To accomplish our goals, we are always on the look-out for talented, creative, ambitious individuals, driven by a passion to excel. We hire some of the most talented and experienced individuals in their respective fields. Being a performance driven company, we have introduced several performance-driven tools. We are driven by principles of empowerment as we believe in inculcating a winning attitude among our employees by encouraging learning, self-development and by building effective leadership. A well-structured career path is created for each employee within the organization with a progression and succession plan made for each of them. As in the past, the Company has enjoyed cordial relations with the employees at all levels. The Company continues to run an in-house training program held at regular intervals and aimed at updating their knowledge about issues.

9. CAUTIONERY STATEMENT:

This document contains statements about expected future events, financial and operating results of Disha Resources Limited, which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirely by the assumptions, qualifications and risk factors referred to in the managements discussion and analysis of Disha Resources Limited Annual Report, 2024-25.

10. DISCLOSURE OF ACCOUNTING TREATMENT:

The company does follow all the treatments in the Financial Statements as per the prescribed Accounting Standards.

11. KEY FINANCIAL RATIOS:

Sr. No. Ratios	2025	2024	Variance
1. Inventory Turnover Ratio(times) $	NA	NA	-
2. Return on Equity Ratio (%) @	(2.52%)	27.20%	(109.25%)
3. Trade Receivables Turnover Ratio (times) &	Nil	1.47%	(100.00%)
4. Trade Payables Turnover Ratio (times) *	Nil	1.66%	(100.00%)
5. Net Capital Turnover Ratio (times)	Nil	0.87%	(100.00%)
6. Return on Capital Employed (%) **	(2.21%)	19.55%	(111.28%)
7. Return on Investments (%) ***	(4.76%)	28.14%	(116.93%)

@ Operational activities being lower than last year resulted into net losses having reducing effect net profits available as also there being increasing effect on profitability in the preceding year on account of profits on sale of investments. $ Reduction in Inventory Holding Period & Resulting from No Operational Turnover during the year in respect of which balances of trade receivables were pending for realization.

* No operational activities in the form of purchases compared to the previous financial year resulted into trade payable turnover ratio being nil during the current financial year as compared to preceding financial year. ** Losses incurred during the year resulted into return on capital employed being negative. *** Losses incurred during the year resulted into return on investment being negative.

	For and on behalf of Board of Directors
	For Disha Resources Limited
	Sd/-
	Krishna Awtar kabra
Date: 26/08/2025	Chairman & Managing Director
Place: Ahmedabad	DIN: 00650817