Jayatma Industries 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

The projects global growth to be broadly unchanged from October 2024 forecasts, at 3.3% for both 2025 and 2026. This growth is expected to be uneven, with the US seeing an upward revision, while other regions experience downward revisions. The report highlights a divergence in economic paths and downside risks to growth in the medium term.

The IMF anticipates a 3.3% growth rate for both 2025 and 2026, which is slightly below the historical average of 3.7%. The global economy is exhibiting varying growth patterns, with some regions performing better than othersThe report identifies several downside risks, including renewed inflationary pressures that could hinder monetary policy adjustments and impact fiscal sustainability and financial stability.

The WEO emphasizes the need for a balanced policy approach that considers trade-offs and builds buffers to address the challenges. Indias GDP growth is projected to be 6.3% in 2025, slightly lower than the previous forecast. Reduced global trade growth and investment flows are contributing to the slowdown in some economies. The deteriorating economic outlook is hindering progress toward achieving the Sustainable Development Goals.

After a succession of adverse shocks in recent years, the global economy is facing another substantial headwind, with increased trade tension and heightened policy uncertainty. This is contributing to a deterioration in prospects across most of the worlds economies. For emerging market and developing economies (EMDEs), the ability to narrow per capita income gaps with richer countries, boost job creation, and reduce extreme poverty remains insufficient. Downside risks to the outlook predominate, including an escalation of trade barriers, persistent policy uncertainty, rising geopolitical tensions, and an increased incidence of extreme climate events. Conversely, policy uncertainty and trade tensions may ease if major economies succeed in reaching lasting agreements that address ongoing trade disputes. The challenging global context faced by EMDEs is compounded by the fact that foreign direct investment inflows into these economies have fallen to less than half of their peak level in 2008 and are likely to remain subdued. Global cooperation is needed to restore a more stable and transparent global trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Across EMDEs, domestic policy action is also critical to contain inflation risks, strengthen fiscal resilience through improved revenue mobilization, and reprioritize spending. To unlock job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. In particular, countries in fragile and conflict situations (FCS) face daunting development challenges that will require tailored domestic policy reforms, underpinned by well-coordinated multilateral support.

Global Outlook. Global growth is slowing due to a substantial rise in trade barriers and the pervasive effects of an uncertain global policy environment. Growth is expected to weaken to 2.3 percent in 2025, with deceleration in most economies relative to last year. This would mark the slowest rate of global growth since 2008, aside from outright global recessions. In 2026-27, a EMDE regions over the forecast horizon, as activity is held back by high trade barriers and long-standing structural weaknesses. In regions with a large number of commodity exporters, including in the Middle East and North Africa and Sub-Saharan Africa, growth is anticipated to tepid recovery is expected, leaving global output materially below January projections. Progress by emerging market and developing economies (EMDEs) in closing per capita income gaps with advanced economies and reducing extreme poverty is anticipated to remain insufficient. The outlook largely hinges on the evolution of trade policy globally. Growth could turn out to be lower if trade restrictions escalate or if policy uncertainty persists, which could also result in a build-up of financial stress. Other downside risks include weaker-than-expected growth in major economies with adverse global spillovers, worsening conflicts, and extreme weather events. On the upside, uncertainty and trade barriers could diminish if major economies reach lasting agreements that address trade tensions. The ongoing global headwinds underscore the need for determined multilateral policy efforts to foster a more predictable and transparent environment for resolving trade tensions, some of which stem from macroeconomic imbalances. Global policy efforts are also needed to confront the deteriorating circumstances of vulnerable EMDEs amid prevalent conflict and debt distress, while addressing long-standing challenges, including the effects of climate change. National policy makers need to contain risks related to inflation as well as strengthen their fiscal positions by raising additional domestic revenues and reprioritizing spending. To facilitate job creation and boost long-term growth prospects in EMDEs, reforms are essential to enhance institutional quality, stimulate private investment growth, develop human capital, and improve labor market functioning.

Regional Prospects. All EMDE regions face a challenging outlook amid the rise in trade tensions and heightened global uncertainty. In 2025, growth is projected to slow in East Asia and Pacific as well as in Europe and Central Asia both regions that are highly reliant on global trade and, to a lesser extent, in South Asia. In Latin America and the Caribbean, growth is projected to be the lowest among face drags from the weakening outlook for external commodity demand. Against the backdrop of a deteriorating global environment, growth forecasts for 2025 have been downgraded in all EMDE regions relative to January projections.

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

INDIAN ECONOMY

*** The Economic Times in 2025 has reported on a mix of economic trends. India is projected to remain one of the fastest-growing major economies, with a GDP growth of 6.3%. The Economic Survey for 2024-25 highlighted the importance of deregulation for growth amidst global uncertainties. Budget 2025 focused on job creation, boosting local manufacturing, and easing the burden on taxpayers to foster a "Viksit Bharat" (developed India).

Key Economic Themes in 2025

Despite global headwinds, India is expected to maintain its position as a leading global growth engineThe government maintained fiscal discipline while managing a strong external balance. Money supply growth (M3) moderated, and increased liquidity was noted. Budget 2025 aimed to accelerate industrial activity, generate employment, and boost investments. There was a strategic push to build a knowledge-based economy, not just focus on skilling. Changes in taxation were introduced to encourage local manufacturing, trade, and ease of doing business.

The manufacturing sector faced challenges due to weaker global demand. The year saw significant geopolitical uncertainties, particularly stemming from the actions of Donald Trump. There was concern about potential financial crises and the need for proactive measures. The budget included provisions for adding more medical seats.

(Source: ***The Economic Times 2024)

ORGANISATION PROFILE:

During the financial year under review the company continues to derive its main revenue from cotton and cotton based value chain. Considering the overall economic environment in general and global as well as domestic textile market conditions in particular the company has tried its best to maintain and sustain its operations. The last financial year in particular has been a challenging one on various fronts for the cotton industry. It is expected that the market conditions will stabilize in the coming years.

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 will help for the growth of the company as well as industry. Jayatma Industries Limited is looking to optimize the most of the opportunity,

The threats like Competition from other developing countries, international and domestic tariff structures, lack of demand for textile sector from developed western countries 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:

Jayatma Industries Limited continues to be involved in the field cotton and cotton value chain. In addition to that, company has commenced production of technical textile, we look forward growing and consolidating same business in coming few years.

Additionally, with regards to the decision taken by the Board of Directors of the company to foray into the Technical Textiles products/segment Geogrids, a key product within technical textiles, are high-strength polymer structures used mainly in civil engineering to reinforce soil and improve stability in applications like roads, retaining walls, and embankments. Made from materials like polypropylene and polyester, they come in uniaxial, biaxial, and triaxial forms depending on the direction of strength needed. With growing infrastructure demands especially in Asia-Pacific and increased focus on sustainable, long-lasting construction, the geogrid market is witnessing strong growth. Innovations in materials and technology are further enhancing their performance, making geogrids an essential part of modern geotechnical engineering.

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 stateme 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: 14th August, 2025	For and on behalf of the Board,
Place: Ahmedabad
	Sd/-
	Nirav Kalyanbhai Shah
	CEO & Director
	DIN: 00397336