Eurotex Industries and Exports Ltd Management Discussions

a. Industry Structure & Development:

The Company is having cotton yarn spinning and knitted fabrics manufacturing unit. Textile is the oldest and most important industry with a high employment potential. The textile industry provides jobs for semi-skilled and unskilled labourers, women in particular was.

Eurotex was mills manufacturing and exporting cotton yarn all over the world.

b. Opportunities & Threats:

While opportunities for domestic and export demand is bright, yet presently the conflict in Europe has dampened the Textile business in general.

Indian textile industry is facing threat from other textile exporting countries due to high power cost, cost of raw materials and rigid labour laws of our country.

c. Segment or Product wise Performance:

The Company has only two reportable business segments i.e. Yarn and Real estate development segment in terms of requirement of 1ND AS-108 and has its operations / assets located in India.

Hence, segment-wise or product-wise performance is given.

d. Outlook, Risks and Concern:

The Board of Directors in their meeting held on 26th March, 2022, has decided for closure of its manufacturing plants situated at Kolhapur under Industrial Disputes Act, 1947, due to continuous grinding halt of operations of plants at Kolhapur since 25th March, 2019 arising out of persistent, unfair and illegal activities of labour including severe inter-union rivalry and disconnection of power.

The Notice of Closure of the manufacturing plants at Kolhapur has been displayed on 30th March, 2022 at the main gate of the Plants and a copy of said Notice has been sent to concerned workers and authorities.

e. Internal Control Systems and their Adequacy:

The Company has got adequate internal control system commensurate with its size of all departments.

f. Financial Performance with respect to Operational Performance:

The financial and operational performances are alreadyelaborated in the Directors Report, g. Key ratios

Ratios	F.Y 2025-26	F.Y 2024-25
Debtors Turnover Ratio	0.00	5.84
Inventory Turnover Ratio	0.00	0.63
Current Ratio	0.13	0.04
Interest Coverage Ratio	0.03	(0.27)
Debt-Equity Ratio (%) Ratio	(1.60)	(1.60)
Operating Profit Margin (%) Ratio	0.00	(726.22)
Net Profit Margin (%)	0.00	(190.27)
Return on Net Worth (%)(RONW)	2.95	(6.06)

h. Development in Human Resources / Industrial Relations Front:

The Company continued its endeavor in maintaining peace and harmony at all levels of employment in the Organization in the year under review.

i. Cautionary Statement:

The Statements in the Report may be forward boking within the meaning of applicable laws or regulations. These Statements are made on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in government regulations, Tax Regimes, economic developments within India and the Countries in which the Company conducts business and other incidental Factors.

The Company and its Directors assume no responsibility in respect of the forward-looking statements herein which may undergo changes in the future on the basis of subsequent developments, information or events.

Place: Mumbai Date : 22nd May, 2026 r	KRISHAN KUMAR PATODIA Chairman and Managing Director DIN: 00027335	EUROTEX INDUSTRIES AND EXPORTS UMITED 1

APPOINTMENT POLICY

THE APPOINTMENT POLICY FOR INDEPENDENT DIRECTORS, KEY MANAGERIAL PERSONNEL & SENIOR EXECUTIVES WILL BE AS UNDER-

a. Independent Directors:

Independent Directors will be appointed based on the criteria mentioned under Section 149 (6) of the Companies Act, 2013 and in accordance with other applicable provisions of the Companies Act, 2013, Rules made thereunder & Listing Agreements entered with Stock Exchanges.

b. Key Managerial Personnel (KMP):

KMP will be appointed by the Resolution of the Board of Directors of the Company, based on qualifications, experience and exposure in the prescribed field. Removal of the KMP will also be done by the Resolution of Board of Directors of the Company. Appointment/ Removal will be in accordance with the provisions of the Companies Act, 2013, Rules made there under and Listing Agreements entered with Stock Exchanges.

c. Senior Executives:

Senior Executives will be appointed by the Chairman and the Managing Director and/or Executive Director of the Company based on their qualifications, experience and exposure. Removal of the Senior Executives will also be by Chairman, Managing Director and/or Executive Director.

For and on behalf of the Board

KRISHAN KUMAR PATODIA

Chairman and Managing Director DIN: 00027335

Place: Mumbai Date : 22nd May, 2026

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FORTIETH
ANNUAL REPORT
2025-2026	EUROTEX