Eforu Entertainment Ltd Management Discussions

1. INDUSTRY OUTLOOK:

During the year under review, the Company continued to operate in the areas of Event Management and Social Media Marketing , which are dynamic and rapidly evolving sectors driven by increasing digital adoption, changing consumer behaviour, brand-building requirements and growing demand for experiential marketing. During the year, the members of the Company, at the Annual General Meeting held on 30 September 2025, approved the alteration of the Main Object Clause of the Memorandum of Association to include Film Production as an additional Main Object of the Company. Following the inclusion of this activity, the Company is placing a major strategic focus on the film production and entertainment sector , while continuing its activities in event management and social media marketing. The film and entertainment industry presents significant opportunities, supported by increasing demand for quality content across theatrical, digital and streaming platforms. The convergence of entertainment, digital media, social media and experiential marketing also provides opportunities for the Company to leverage synergies across its business activities. However, the industry remains highly competitive and subject to changing audience preferences, technological developments and evolving content consumption patterns. The Company intends to remain agile and responsive to market developments while pursuing opportunities for sustainable growth.

2. OPPORTUNITIES AND THREATS

The Companys existing presence in event management and social media marketing , together with its expanded object of film production , provides opportunities to participate in multiple segments of the growing media, entertainment and digital ecosystem. The film production business offers opportunities arising from increasing demand for original and engaging content across various platforms and formats. The Company may also explore synergies between film production, social media marketing and event management, thereby creating opportunities for integrated content, promotional and experiential solutions. At the same time, the Company operates in highly competitive and rapidly changing industries. Key challenges include intense competition, evolving consumer preferences, technological changes, content-related risks, uncertainties associated with commercial success of productions and dependence on external creative and technical professionals. The Company will continue to assess these opportunities and risks prudently while focusing on efficient execution and sustainable business development.

3. INITIATIVES:

During the year under review, the Company continued to strengthen its presence in event management and social media marketing and simultaneously initiated steps towards expanding its business focus into film production and the broader entertainment sector .

Accordingly, the Company is undertaking initiatives to develop its capabilities in the film and entertainment space, identify suitable projects and opportunities, and explore strategic collaborations with relevant creative, production and industry partners. The Company also intends to leverage its capabilities in social media marketing and event management to support its entertainment initiatives and build an integrated presence across content, digital promotion and experiential activities.

4. RISKS AND CONCERNS:

The Company is operating in business segments that are characterised by rapid changes in market trends, technology and consumer preferences. In addition to the competitive environment in event management and social media marketing, the Companys increased focus on film production exposes it to industry-specific risks, including uncertainty regarding the commercial success of individual projects, project execution and cost management, availability of suitable creative and technical resources, changing audience preferences and competition from established industry participants.

The Company may also rely on external professionals, agencies, production partners and other service providers for specialised activities. Such arrangements may give rise to risks relating to quality, timelines, coordination and continuity.

The management is conscious of these risks and intends to adopt a prudent and project-oriented approach, with appropriate evaluation of opportunities, financial implications and commercial viability before undertaking major initiatives. The management remains optimistic about the Companys prospects and its ability to establish a sustainable presence in the film and entertainment sector while continuing its existing business activities.

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

Significant financial highlights in F.Y. 2025-2026 are as follows: -

During the financial year under review, the Company witnessed a significant improvement in its revenue from operations as compared to the previous financial year. The growth in operating revenue reflects increased business activity and a greater contribution from the Companys operational activities.

The Company continued to maintain a positive EBITDA during the year under review, as was also the case in the previous financial year. The current years operational performance reflects a stronger contribution from the Companys core business activities.

The Company also recorded a decrease in other income as compared to the previous financial year. Consequently, the financial performance of the current year reflects a comparatively greater reliance on revenue generated from operations, as against the previous year where other income had made a significant contribution to the overall financial performance.

The Net Profit After Tax of the Company decreased as compared to the previous financial year, primarily in the context of the lower contribution from other income during the current year. The Earnings Per Share also declined during the year in comparison with the previous financial year.

Overall, the Company continues to focus on strengthening its operational performance and building sustainable revenue streams through its activities in event management, social media marketing and film production .

6. INTERNAL CONTROL SYSTEM:

The Company has a proper and adequate system of internal controls, to ensure the safeguarding of assets and their usage, maintenance of proper records, adequacy and reliability of operational information. The internal control is supplemented by an extensive audit by internal and external audit teams and periodic review by the top management, Audit Committee and Board of Directors. Audit Committee also seeks views of the statutory auditors on the adequacy of internal control systems in the Company. In compliance with Section 143(3)(i) of the Act, the Statutory Auditors have issued an unmodified report on the Internal Financial Controls over Financial Reporting which forms a part of the Independent Auditors Report also forming part of this Annual Report.

7. PERFORMANCE SNAPSHOT :

The standalone financial highlights for FY 2025-26 are as follows:

Particulars	FY 2025-26 Ratios	% Change	FY 2024-25 Ratios	% Change	Reason for variance
Current Ratio (in times)	8.94	-91.85 %	109.68	1037.11%	Decrease in current assets as compared to previous year.
Return on Equity Ratio (in times)	10.45	2972.26%	0.34	692.57%	Increase in profit of current year as compared to previous year.
Trade Receivables Turnover Ratio (in times)	1.51	-25.09%	2.02	100.00%	Increase in Receivable amount as compared to previous year.
Debt Service Coverage Ratio (in times)	0	-	16.01	100.06%	NA
Debt-Equity ratio (in times)	-	0%	-	0%	Not applicable as no Debt
Trade Payable turnover ratio (In times)	-	-	-	100.00%	Decrease in trade payables of current year.
Net Capital Turnover Ratio (In times)	0.15%	402.52%	0.03	87.93%	Increase in turnover of current year as compared to previous year.
Net Profit margin (in %)	65.33%	-93.63%	1026	5009.28%	Decrease in profit of current year as compared to previous year.
Return on Capital employed	9.96%	-70.71%	34%	5645.26%	Decrease in profit of current year as compared to previous year.

8. HUMAN RESOURCES:

During FY 2025-26, the Company continued to strengthen its operations in line with its evolving business strategy. With the Companys focus on event management, social media marketing and, subsequently, film production , the Company is adopting a flexible and business-oriented approach towards human resources. The Company intends to utilise a combination of internal resources and external professionals, agencies and specialised service providers, particularly for activities requiring specific creative, technical and production expertise. This approach is intended to provide the Company with operational flexibility and access to specialised talent while maintaining cost efficiency. As the Company expands its focus towards film production and entertainment, it will continue to evaluate its human resource requirements in line with the scale and nature of its operations and projects.

9. FUTURE PLAN:

The Company intends to strengthen and expand its presence in film production and the entertainment sector , which has emerged as a major area of strategic focus. The Company proposes to explore and evaluate suitable film production opportunities, strategic collaborations and partnerships with creative, production and industry professionals. At the same time, the Company intends to continue developing its existing activities in event management and social media marketing .

The Company believes that the combination of film production, digital marketing and event management can provide opportunities for business synergies and diversification. The management will continue to assess market opportunities prudently and focus on commercially viable projects with the objective of building sustainable revenue streams and creating long-term value for the stakeholders.

	By Order of the Board of Directors
	For, EFORU ENTERTAINMENT LIMITED
	(Formerly known as TAVERNIER RESOURCES LIMITED)
Place: Ahmedabad	Sd/-
Date: 03/09/2026	Mokshaben Ravjibhai Patel
	Whole-Time Director
	DIN: 10712712