Jayatma Enterprises Ltd Management Discussions

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

GLOBAL ECONOMY

Global growth is projected at 3.3 percent both in 2025 and 2026, below the historical (2000 19) average of 3.7 percent. The forecast for 2025 is broadly unchanged from that in the October 2024 World Economic Outlook (WEO), primarily on account of an upward revision in the United States offsetting downward revisions in other major economies. Global headline inflation is expected to decline to 4.2 percent in 2025 and to 3.5 percent in 2026, converging back to target earlier in advanced economies than in emerging market and developing economies.

Medium-term risks to the baseline are tilted to the downside, while the near-term outlook is characterized by divergent risks. Upside risks could lift already-robust growth in the United States in the short run, whereas risks in other countries are on the downside amid elevated policy uncertainty. Policy-generated disruptions to the ongoing disinflation process could interrupt the pivot to easing monetary policy, with implications for fiscal sustainability and financial stability. Managing these risks requires a keen policy focus on balancing trade-offs between inflation and real activity, rebuilding buffers, and lifting medium-term growth prospects through stepped-up structural reforms as well as stronger multilateral rules and cooperation.

The World Banks June 2025 Global Economic Prospects report indicates a significant slowdown in global growth, projecting it to reach 2.3% in 2025, the weakest pace since 2008 outside of global recessions. This downward revision is largely attributed to heightened trade tensions and policy uncertainty. While a global recession is not expected, the report highlights that this slowdown could lead to the weakest seven-year period for global growth since the 1960s.

Heres a more detailed breakdown:

Global Growth Forecast: The report projects global growth to slow to 2.3% in 2025.

Cause of Slowdown: The slowdown is primarily driven by increased trade barriers and policy uncertainty.

Regional Impact: The report notes that the developing world, outside of Asia, is experiencing a significant slowdown in growth, with growth rates declining over the past three decades.

Advanced Economies: Advanced economies are expected to see growth decelerate to 1.2% in 2025.

Emerging Markets and Developing Economies: These economies are projected to grow at a rate of 3.8% in 2025 and 2026.

Key Downside Risks: The report identifies potential further escalation of trade barriers, continued policy uncertainty, and other risks like conflicts, financial stress, inflation, and climate-related disasters as potential threats to the projected growth.

(Source: *World Economic Outlook, January, 2025, ** World Bank Global Economic Prospects June 2025)

INDIAN ECONOMY

*** The Indian economy is widely projected to be the fastest-growing major economy in both 2025 and 2026. The International Monetary Fund (IMF) forecasts a 6.2% growth rate for 2025 and 6.3% for 2026, positioning India at the forefront of global economic expansion. This growth is fueled by strong domestic demand, a young and growing population, and ongoing economic reforms

Heres a more detailed look:

Projected Growth:

The IMF anticipates Indias GDP growth to be 6.2% in 2025 and 6.3% in 2026

Global Context:

These figures significantly outpace the global average and the growth rates of other major economies like China and the US

Drivers of Growth:

Domestic consumption, government-led capital expenditure, and a growing services sector are key drivers of Indias economic expansion

Global Leadership

India is expected to be a major engine of global economic growth in the coming years

Future Outlook:

While some risks persist, such as dependence on oil imports and a weak export sector, Indias economic outlook remains positive.

(Source: ***The EconomicTimes 2025)

ORGANISATION PROFILE:

During the financial year under review the company has continued with the trends of last few years. There is strong focus on maintaining the income as well as profitability of the company. The profit after tax of the company has reduce by 48.97%. Our companys performance continues to be sustained at satisfactory levels. It is expected that the economy will continue to grow in the coming years and we expect the company to maintain its growth trajectory.

SCHEME OF AMALGAMATION:

The Board of Directors of Jayatma Enterprises Limited has convened a meeting on 15^th May,2025 to review and deliberate on the ongoing scheme of amalgamation with Jayatma Technologies Private Limited & Jayatma Enterprises Limited.

The Board has arrived at the decision to withdraw the scheme of amalgamation. The company remains committed to its growth and development plans and will explore alternative avenues for achieving its strategic objectives.

OPPORTUNITIES AND THREATS:

The countrys domestic market offers much potential for growth and numerous business opportunities. Further the other opportunities like Large, Potential Domestic and International Market, Investment and Foreign Direct Investment opportunities, increase in the Purchasing Power of Indian Customer, and increase in local demand help for the growth of the company as well as industry. Jayatma Enterprises Limited is looking for the best opportunity for fruitful business which is most beneficial for the company.

The threats like Competition from other developing countries, threat for Traditional Market for Power loom and Handloom Products, Geographical Disadvantages, International labor and Environmental Law etc. may pose a threat to progress of industry.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial performance of the Company for the year 2024-25 is described in the Directors Report under the head Financial Result.

RISKS AND CONCERNS

Like any other industry, the company is also exposed to risk of competition, government policies, natural factor etc. Many risks exist in a companys operating environment and they emerge on a regular basis i.e. risk of competition, government policies, fluctuation of commodity price, natural factor like change in climate etc. The Company has taken necessary measures to safeguard its assets/interests etc.

INTERNAL CONTROL SYSTEM:

The Company has proper and adequate internal control systems to ensure that all activities are monitored and controlled against any unauthorized use or disposition of assets, misappropriation of funds and to ensure that all the transactions are authorized, recorded, reported and monitored correctly. The Company has adequate working infrastructure having computerization in all its operations including accounts and MIS.

The Company has continued its efforts to align all its processes and controls with leading practices. The Audit Committee also meet the Companys Statutory Auditors to ascertain their views on the financial statements, including the financial reporting system, compliance to accounting policies and procedures, the adequacy and effectiveness of the internal control and systems followed by the Company. The Management acted upon the observations and suggestions of the Audit Committee. Further, the Company has continued its efforts to align its processes and controls with best practices and has put in place a process wise internal control framework across the Company.

RECENT TREND AND FUTURE OUTLOOK:

The future outlook looks stable. The company is hopeful of maintaining its earnings. The company is awaiting approvals for the scheme of amalgamation and merger from the respective authorities. Subsequently to the same we expect more growth.

CAUTIONARY STATEMENT:

Readers are cautioned that the Statements in this Management Discussions and Analysis Report describing the

Company objectives, projections, estimates, expectations or predictions may be ‘forward looking statements within the meaning of applicable security laws or regulations. These statements are based on reasonable assumptions and expectations of future events. Actual results could however, differ materially from those expressed or implied. Factors that could make a difference to the Companys operations include market price both domestic and overseas availability and cost of raw materials, change in Government regulations and tax structure, economic conditions affecting demand/supplies and other factors over which the Company does not have any control. The Company takes no responsibility for any consequence of decisions made based on such statements and holds no obligation to update these in future.

Date: 23^rd July, 2025 For and on behalf of the Board, Place: Ahmedabad Sd/- Nirav Kalyanbhai Shah Chairman & Managing Director DIN: 00397336