Nandan Denim Ltd Management Discussions

ECONOMY OVERVIEW

Global Economy Overview

The global economy once again showcased resilience in 2024, navigating shifting geopolitical headwinds, marked a solid 3.3% expansion. While growth slowed in some regions amid rising uncertainty, overall performance of the economy remains steady. Inflationary pressures continued to ease, but at uneven rates. Service sector prices remained elevated in several advanced economies, while many emerging markets grappled with persistent underlying price pressures.

Central banks took different paths in response. Some began to cut down policy rates, while others maintained restrictive settings to curb inflation. Trade measures also diverged - some government-imposed tariffs to protect local industries, whereas others reduced barriers to bolster stability.

Source: IMF April 2025 report

Looking ahead, monetary policies are set to diverge further as central banks react to country-specific conditions and recent shocks. Institutions like the Federal Reserve and the European Central Bank are expected to start easing rates. Growth projections reflect these uncertainties - a slowdown to 2.8 percent in 2025, followed by a modest rebound to 3.0 percent in 2026.

Global inflation is also expected to keep downward momentum from 4.3 percent in 2025 to 3.6 percent in 2026. Recent U.S. trade actions - broad import tariffs and higher duties on goods from China and elsewhere - which have prompted retaliatory measures and heightened concerns over trade disruptions and economic fragmentation. In this environment, continued dialogue and deeper international cooperation would be the best path to reinforcing global stability and fostering mutual understanding.

Indian Economy Overview

India is currently the worlds fourth-largest economy by GDP, underlining its rising global importance. However, the early FY 2024-25 election, coupled with uncertainty and subsequent weather-related disruptions exerted pressure on construction and manufacturing, causing gross fixed capital formation to weaker-than-expected growth.

Despite these challenges, the economy has showcased remarkable resilience, backed by the solid fundamentals and ongoing drives in sustainability and innovation. As per MOSPIs second advance estimates, real GDP growth marked at 6.5% in FY 2024-25, after a 9.2% jump in FY 2023-24.

Private consumption and government spending both performed strongly over the year. On April 9, 2025, the RBIs Monetary Policy Committee trimmed the repo rate by 25 basis points to 6.00 - the second cut since May 2020 - down from 6.25% and 6.50% in February 2025. This action reflects changing global economic conditions, including US concerns over reciprocal tariffs on major economies, which is addon to global growth uncertainties. The move is aimed at improving liquidity and encouraging economic activity. Despite the cut, the MPC maintained a neutral policy stance to allow flexibility in responding to future developments in the economy and financial markets. CPI inflation is projected to ease from 4.9% in FY 2024-25 to 4.0% in FY 2025-26.

RBI Monetary Policy Committee (MPC) report dated 9 th April 2025

Looking ahead, household spending is anticipated to stay strong, backed by the tax reliefs in the FY 2025-26 Union Budget. Fixed-asset investment is also expected to accelerate, fueled by higher capacity utilization, healthier bank and corporate balance sheets, and continued public capital outlays.

The Budget provides 1.5 trillion in 50-year, interest-free loans to states for transport, urban infrastructure, and industrial projects. With a clear focus on self-reliance, adaptability, and global integration, India is well-poised for steady growth, and the RBI forecasts another 6.5 percent GDP gain in FY 2025-26 - backed by Make in India, initiatives, major infrastructure plans, and ongoing reforms aimed at enhancing competitiveness.

In addition, Indias manufacturing sector has gained momentum under the governments Make in India initiative, attracting rising FDI and boosting domestic capabilities. The Manufacturing PMI expanded at 56.8 in Q3, further improving to 57.4 in Q4 backed by uptick in new export orders and employment. Expectation in the business growth for manufacturing remained optimistic.

a. PMI Manufacturing

INDUSTRY OVERVIEW

Global textile industry

The global textile industry is a cornerstone of economic development and cultural expression, is undergoing transformative growth driven by technological innovation, shifting consumer preferences and evolving adaptation of sustainability. The global textile market size was valued at USD 1,976.84 billion in 2024 and is anticipated to increase from USD 2,123.72 billion in 2025 to approximately USD 4,016.50 billion by 2034, expanding at a CAGR of 7.35% from 2025 to 2034. The rising demand for natural fibers globally is backing the growth of the textile market. Asia-Pacific dominates this market, accounting for over half of global textile production, led by China, Bangladesh, and India, while Europe and North America focus on sustainability and high-margin niches. while synthetic fibers and smart textiles are the emerging growth drivers.

The industry also faces pressing challenges, including labor inequalities such as wages, workplace hazards, among others and environmental concerns owing to the dominance of fossil-based synthetics and gaps in textile recycling. However, despite the challenges, the dynamics across the regional markets, material innovation, strong labor practices and technological advancements such as AI, blockchain, and smart manufacturing will back the opportunities in the industry. Looking ahead, the global textile industry is poised for significant growth, fueled by rising disposable income, increased demand for man-made fibers, supportive government policies, and a consumer shift toward online shopping - trends that are expanding global market access for manufacturers.

Sources:

https://www.precedenceresearch.com/textile-market

https://textileexchanqe.org/knowledqe-center/reports/materials-market-report-2024/

https://apparelresources.com/business-news/retail/global-textile-market-reach-us-903-45-billion-2028-growing-7-per-cent-cagr/

https://aecegy.com/Page/News-Detail.asp?ID=2349#:~:text=E%2Dcommerce%20and%20digitalization:%20

The,and%20expand%20their%20market%20reach.

Indian Textile Industry

The Indian textile industry is a major pillar of the countrys economy, providing employment to over 45 million people and contributing significantly to GDP, industrial output, and exports. As the second-largest textile producer globally - ranked as the 6 th largest exporter of textiles and apparel in 2023, accounting for 3.9% of global trade, India boasts a diverse and integrated value chain supported largely by MSMEs.

The industry is poised for robust growth, with market size expected to double to USD 350 billion by 2030, propelled by government initiatives such as 100% FDI allowance, the PLI scheme, PM MITRA Parks, and the National Technical Textile Mission. Programs like the Samarth Scheme further enhance workforce capabilities, while increased budget allocations aim to modernize infrastructure and boost global competitiveness.

Despite these strengths, the industry faces notable challenges, including high raw material costs, fragmented supply chains, lack of FTAs with major markets, and growing sustainability demands. Production costs remain higher than global competitors like China due to import restrictions and quality regulations. Nonetheless, India is well-positioned for substantial growth, backed by policy initiatives, a skilled workforce, and rising domestic and global demand. Addressing supply chain inefficiencies and embracing sustainable practices will be crucial for sustaining its global leadership.

Sources:

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2117470

https://www.investindia.gov.in/sector/textiles-apparel

https://www.iiad.edu.in/the-circle/the-textile-industry-in-india/

Trends in the Indian Textile Industry Sustainability & Circular Economy

The Indian textile industry is increasingly aligning with global eco-conscious trends by shifting toward natural fibers such as cotton, silk, linen, and jute. Circular fashion is gaining traction, driven by innovative brands focused on upcycling textile waste to reduce environmental impact. Government initiatives, including increased budget allocations and production-linked incentives, are bolstering sustainable manufacturing, positioning India as a key player in the global green textile movement.

Technological Advancements

Technological innovation is reshaping the Indian textile sector. Digital fabric printing is expanding rapidly, particularly in customized and e-commerce-driven segments. Artificial intelligence and automation are boosting efficiency in textile recycling and waste management through smarter sorting and processing. These advancements enhance competitiveness while supporting sustainable and productive operations.

Global Trade Dynamics

Shifts in global trade are significantly influencing Indias textile industry. The India-UK Free Trade Agreement is expected to double exports of apparel and home textiles within five to six years. Meanwhile, political instability in Bangladesh is prompting buyers to diversify sourcing, benefiting India through increased demand and favorable tariffs. These factors are reinforcing Indias position as a preferred global supplier.

Infrastructure & Policy Initiatives

The government is actively developing infrastructure through projects like the PM MITRA parks, aimed at creating world- class integrated textile hubs. Proposed policy measures - such as tariff reductions on raw materials and machinery - are expected to further stimulate industry growth. These strategic efforts are modernizing the industry, promoting scalability, and attracting international investment.

Consumer Trends & Design Innovations

Consumer demand is shifting toward ethically produced, transparent supply chains, encouraging brands to adopt sustainable and socially responsible practices. At the same time, a creative blend of traditional Indian textile techniques with modern fashion is emerging, appealing to diverse markets. This fusion enhances the global appeal of Indian textiles and meets the rising demand for distinctive, culturally rooted products.

GLOBAL DENIM INDUSTRY

The global denim industry, valued at USD 86.66 billion in 2024, is set for continued expansion with a projected CAGR of 5.9%, reaching USD 119.9 billion by 2030. While denim jeans remain the core growth driver, the broader market - including shirts and jackets - is expected to grow to USD 112.89 billion by 2035 at a CAGR of 2.8%. Over 4.5 billion pairs of jeans are sold annually, with approximately 2.2 billion meters of denim fabric produced each year, primarily in China, India, and Bangladesh.

Asia Pacific leads both in consumption and production, driven by rising incomes, urbanization, and manufacturing dominance. Europe is projected to command 30% of the global market by 2030, blending heritage craftsmanship with innovation and sustainability. Indias denim market, valued at USD 1.14 billion in 2024, is expected to grow to USD 1.83 billion by 2033 (CAGR 5.04%), driven by fashion awareness, e-commerce, and premium product development.

Consumer trends are reshaping the market, with loose-fitting styles, increased demand for business-casual wear, and style diversification across fits such as boot cut, high-rise, and tapered jeans. Social media accelerates trend adoption and supports direct-to-consumer strategies, particularly among millennials and Gen Z. Premium and designer denim is also gaining traction. Sustainability is becoming a key market driver to appeal to eco-conscious consumers.

Despite growth, the industry faces serious environmental challenges. Denim production is water- and energy- intensive, with significant chemical usage - particularly indigo dye, of which 20,000 tons are produced annually. To mitigate environmental impact, brands are adopting sustainable practices like using organic cotton, recycled fibers, and water-saving technologies. The industrys future will hinge on its ability to balance strong global demand with meaningful progress in sustainability, supported by regional strengths and supply chain innovations.

Sources:

https://www.grandviewresearch.com/industry-analysis/denim-jeans-market

https://www.imarcgroup.com/india-denim-market

https://www.fortunebusinessinsights.com/denim-products-market-104514

https://www.mordorintelligence.com/industry-reports/jeans-market

https://www.kbvresearch.com/denim-jeans-market/

https://www.alliedmarketresearch.com/jeans-market-A12041

INDIAN DENIM INDUSTRY

Denim has seamlessly woven itself into the fabric of everyday life in India, transcending age, gender, and socio-economic boundaries. From urban centers to rural towns, denim is a staple in wardrobes, reflecting its versatility and enduring appeal. Currently the industry is valued at USD 1.14 billion in 2024, the market is projected to grow to USD 1.83 billion by 2033 at a CAGR of 5.04%. The growth is fueled by shifting consumer preferences, expanding e-commerce, and a robust domestic base for both consumption and export.

Consumer demand shows strong segmentation by gender, pricing, and product type. Mens denim continues to dominate, but womens and childrens categories are growing steadily. The rise of e-commerce has further fueled market access and consumer reach, allowing brands to cater to diverse demographics and preferences.

Sustainability has become a core focus, with manufacturers increasingly adopting water-efficient dyeing, eco-friendly finishing techniques, and recycled materials. Brands are integrating circular fashion practices such as product recycling and take-back programs to meet consumer demand for environmentally responsible products. Innovations in digital printing, advanced weaving, and less toxic chemical treatments have enhanced product quality while supporting environmental compliance, making Indian denim more competitive in global markets.

Despite recent export volatility - such as a 15.3% drop in 2022 due to global disruptions - Indias denim industry remains well-positioned internationally. The country offers competitive pricing, a wide product range, and improving sustainability credentials that appeal to global buyers. Future growth will hinge on strategic investments in technology, compliance, and skilled labor to meet evolving consumer expectations and regulatory standards. With continued focus on innovation and market responsiveness, the Indian denim industry is set to expand its influence both at home and abroad.

Sources:

https://www.imarcgroup.com/india-denim-market

https://www.fibre2fashion.com/industry-article/10302/from-fabric-to-future-gujarat-s-denim-industry-is-shaping-india-s-textile-revolution

https://www.qrandviewresearch.com/horizon/outlook/denim-market/india

OPPORTUNITY AND THREATS

As a large-scale, vertically integrated denim manufacturer with a strong export focus, Nandan Denim faces a dynamic landscape of opportunities and threats inherent to the global textile and apparel industry.

Opportunities

Growing Demand for Denim: Denim remains a popular and versatile fabric globally. Emerging markets and a growing youth population in several countries continue to drive demand. NDLs large manufacturing capacity positions it well to capitalize on this.

Rise of Sustainable and Ethical Fashion: Theres a significant and growing consumer preference for sustainably produced apparel. NDLs investments in technologies for resource conservation, water management (ETP and RO plants), and eco-friendly products can be a major differentiator and premium market segments.

Product Diversification and Innovation: The companys focus on R&D and its ability to produce a wide range of denim (including stretch, overdyed, coated specialized weaves, prewash (ready to stitch) denim and blends) and other textiles (yarn dyed shirting, dyed yarn) allows it to cater to diverse customer needs and adapt to changing fashion trends. Further innovation in smart textiles or technical textiles could be an avenue for growth.

Expanding Export Markets: NDL already exports in 10 countries, theres potential to penetrate new geographical markets or deepen its presence in existing ones. Trade agreements and government export promotion schemes can provide further impetus.

Leveraging Make in India and PLI Schemes: Government initiatives promoting domestic manufacturing and Production Linked Incentive (PLI) schemes for the textile sector can offer NDL benefits in terms of subsidies, infrastructure support, and a more favorable business environment.

Growth of E-commerce and Direct-to-Consumer (D2C) Channels: NDL being a B2B player, exploring partnerships or strategies to tap into the burgeoning e-commerce space, potentially through collaborations with brands or even developing their own D2C lines for certain products, could offer new revenue streams.

Shifting Sourcing Strategies (China+1): Global brands are increasingly looking to diversify their sourcing strategy from China. India, with its established textile ecosystem, stands to benefit, and NDL, with its scale and capabilities, can be an attractive partner.

Threats

Raw Material Price Volatility: Cotton and other raw material prices are subject to significant fluctuations due to weather conditions, global demand-supply dynamics, and government policies. This can impact NDLs input costs and profitability.

Intense Competition: The global and Indian textile markets are highly competitive, with numerous players from countries like Bangladesh, Vietnam, Pakistan, and China offering low- cost alternatives. Maintaining a competitive edge requires continuous efficiency improvements and innovation in product.

Changing Fashion Trends: The apparel industry is characterized by rapidly changing fashion trends. While denim is a staple, specific washes, fits, and finishes go in and out of vogue. NDL needs to remain agile and responsive to these shifts through its R&D and product development. Environmental Regulations and Compliance Costs: Increasing scrutiny on environmental sustainability in textile manufacturing (water usage, chemical discharge, carbon footprint) necessitates ongoing investments in compliant technologies and processes, which can increase operational costs.

Global Economic Slowdown and Geopolitical Instability:

Economic downturns in key export markets or geopolitical tensions can reduce consumer demand for apparel and disrupt supply chains, impacting NDLs sales and operations.

Currency Fluctuations: As an exporter, NDL is exposed to currency exchange rate volatility, which can affect its export realization and profitability.

Labor Costs and Availability: Rising labor costs in India and ensuring the availability of skilled labor can pose challenges to maintaining cost competitiveness.

Trade Policies and Tariffs: Changes in international trade policies, import duties, or non-tariff barriers in key export markets can affect NDLs market access and price competitiveness.

COMPANY OVERVIEW

About Nandan Denim

Headquartered in Ahmedabad, Gujarat, Nandan Denim Limited (referred to as NDL, The Company, or Nandan Denim) is a key textile entity within the family-owned Chi ri pa l Group, an emerging conglomerate of India. Founded in 1994 by Mr. Vedprakash Chiripal and Mr. Brijmohan Chiripal (originally as Nandan Exim Private Limited), NDL specializes in manufacturing wide range of textiles, of which Denim forms the core of its business and a primary revenue source.

The Companys denim portfolio includes knit denim, basic denim, lightweight shirting, classical twill denim, dobby fabrics, are complemented by a diversified portfolio of shirting fabrics in various designs and textures, premium dyed yarns in multiple blends and counts, grey cotton fabrics, and khakis.

As a global supplier, Nandan Denim currently exports to 10 countries and collaborates with numerous international brands. The company is vertically integrated and equipped with state-of-the-art technology and machinery sourced globally, enabling it to produce a wide range of fashion denim supported by robust quality check systems.

As of FY 2024-25, NDL proudly boasts a formidable fabric production capacity of 80 MMPA (depends upon counts, pitch per inch), complemented by an impressive Yarn Spinning capacity 124 TPD, and a refined yarn-dyed shirting capacity of 10 MMPA (depends upon counts) - reflecting its relentless commitment to scale, sophistication, and excellence in textile manufacturing.

Key Business Strengths Skilled workforce

NDL has a skilled, competent, and efficient workforce that plays a key role in realizing the Companys strategic vision and long-term ambitions. The extensive industry experience of the Chairman and Managing Director and senior leadership team further steers the Company toward excellence.

Customer relationship

The Company maintains strong and sustainable relationships with its customers, ensuring timely delivery of diverse requirements of the products. This capability has strengthened the customer base across its operating regions.

Strong market position and export reach

NDL remains at a leading position in the denim manufacturing industry, backed by its denim-focused production facilities and diversified product portfolio. Nandan Denim is Asias largest denim manufacturer, boasting the largest vertically integrated production facility, manufacturing yarn to fabric under one roof. NDL exports its products to over 10 countries, diversifying its revenue streams and strengthening its position in the international market.

Experienced leadership

The companys leadership, backed by decades of experience in the textile industry, has played a key role in guiding Nandan Denim through market shifts and building strong relationships with customers and suppliers.

Economies of Scale

The Company benefits from its 37 MW power plant, 2 MW windmill, 1 MW solar power system, resulting in substantial cost savings on power and fuel. This enhances NDLs profitability and strengthens its financial performance.

Integrated manufacturing facilities

NDLs in-house, vertically integrated production capacity and advanced manufacturing facilities enable the production of high-quality products that meet the highest industry standards.

Robust R&D

The Companys strong R&D initiatives focus on continuous product innovation, aligning with industry trends, customer needs, and quality benchmarks.

Product quality

All products undergo rigorous quality evaluations in accordance with standards set by the American Society for Testing and Materials (ASTM) and the American Association of Textile Chemists and Colorists (AATCC).

Operational Performance Denim

Denim remains at the heart of the Companys operations, establishing NDL as one of Indias leading denim suppliers. The Company provides a diverse portfolio of denim products, ranging from core and reinvented classics to novelties, structured and knit denim, lightweight blends, feather- touch fabrics, stretch technology, and printed designs. As of FY 2025, NDLs denim production capacity stood at 80 million meters per annum (MMPA).

Shirting

The Companys dyeing facility enables the production of shirts in an extensive range colors, powered by a cutting- edge yarn dyeing facility. Its modern weaving division manufactures premium fabrics, including plain weaves, twill, dobby, chambray, fil-a-fil, herringbone, basket weave, and pinpoint oxford. While these shirting materials are predominantly crafted from pure cotton, select blends with alternative fibers are also used. As of FY 2025, NDLs shirting production capacity stood at 10 million meters per annum (MMPA).

Yarn Dyeing

NDLs yarn dyeing equipment accommodates capacities from 6 kg to 900 kg, providing high adaptability and a strategic advantage. The facility delivers color-rich packaged yarns tailored to align with prevailing market trends. Yarn dye packages are offered in sizes from 1,200 grams to 1,300 grams. The manufacturing plant holds OEKO-TEX certification, confirming that its products meet stringent safety standards - an essential requirement for exporting yarn and fabrics to European markets.

Outlook

As the global textile industry undergoes rapid transformation driven by sustainability, innovation, and shifting trade dynamics, Nandan Denim is aligning its strategy to seize emerging opportunities. The Company is more focused on exports with stringent trade policies and global competition with stable domestic sale without increasing any capacity.

NDL prioritizes operational excellence and technology-driven efficiencies - positioning it to optimize margins and serve premium markets. With global denim demand projected to grow and Indias market expanding on the back of rising consumption, the Company is well placed to benefit.

Further, stabilizing macroeconomic conditions, supportive policies like PLI schemes, and a growing preference for sustainable textiles further bolster the industrys outlook. In addition, the textile market is expected to gain momentum in the coming years, with significant potential for growth in revenue and profit. NDLs investments in sustainable manufacturing, a diversified portfolio, and integrated operations provide a solid foundation for future growth.

FINANCIAL PERFORMANCE

Particulars	FY2025	FY2024	Y-o-Y (%) Change
Revenue from operations (In Crore)	3,546.70	2,010.09	76.44
PAT (In Crore)	33.48	44.97	(25.55)
EBIDTA (In Crore)	135.83	152.91	(11.17)
Debtor Turnover (days)	46.19	66.25	(30.28)
Inventory Turnover (days)	20.07	41.97	(52.18)
Interest Coverage Ratio (in times)	3.70	3.23	14.55
Current Ratio (In times)	1.49	1.46	2.05
Debt/Equity Ratio (in times)	0.40	0.56	(28.57)
EBIDTA Margin (%)	3.83	7.61	(49.67)
Net Profit Margin (%)	0.94	2.24	(58.04)
Return on Net Worth (%)	5.44	7.71	(29.44)

KEY RATIOS

Particulars	FY2025	FY2024	Reasons of variance (i.e. change of 25% or more as compared to the immediately previous financial year)
Debt Service Coverage Ratio	3.06	1.06	Due to pre-payment of Term Loans and effective utilization of working capital
Return on Equity Ratio	0.06	0.08	Due to decrease in profitability compared to previous year the ratio has reduced
Inventory Turnover Ratio	18.19	8.70	Due to increase of Turnover
Trade Receivables Turnover Ratio	7.90	5.42	Due to increase of Turnover and cumulative increase in debtors
Trade Payables Turnover Ratio	12.54	8.71	Due to increase of Turnover and increase of Trade Payable
Net Capital Turnover Ratio	13.30	9.39	Due to increase of Turnover increase of Working Capital utilization
Net Profit Ratio	0.01	0.02	Due to decrease of net profit compared to previous year
Return on Capital Employed	0.12	0.18	Due to decrease in profitability compared to previous year
Return on Investment	0.50	0.26	Due to increase of Market value in Investment price, ratio has increased

RISK MANAGEMENT AND MITIGATION STRATEGY

Risk	Description	Mitigation Strategy
Economic Risk	Changes in the global or regional economy, such as sluggish growth or higher inflation, can affect international operations.	Regular evaluation of business plans and strategic planning based on market trends and competition; responsiveness to economic changes.
Exchange Rate Volatility	Exposure to currency exchange rate fluctuations due to international operations.	Adoption of hedging practices, regular reviews, and use of forward contracts and foreign exchange options.
Raw Material Risk	Volatility in the cost and availability of raw materials like cotton and specialty fibers can impact profitability and efficiency.	Strong inventory management, flexible procurement policy, and price monitoring to maintain cost-effectiveness and profit margins.
Competition Risk	Operating in a competitive industry with major players can affect profitability.	Market demand analysis to align production and sales planning; strategic inventory management to sustain competitive position.
Logistic Risk	Disruptions in logistics within operational regions can hinder efficiency.	Strengthened supply networks and long- term supplier relationships to ensure smooth goods movement.
People Risk	High attrition or failure to retain skilled workers can impact operations.	Robust HR policies aimed at reducing attrition and improving productivity.
Technological Risk	Inability to adopt or innovate technology can impact market competitiveness.	Investment in R&D, integration of advanced and sustainable technologies, and upgrading machinery and equipment.
Environmental Risk	Non-compliance with environmental regulations can negatively impact operations.	Commitment to sustainability through CETP setup, green belt development via tree plantations, and obtaining necessary environmental clearances.

INFORMATION TECHNOLOGY

Nandan Denim has effectively integrated the advanced technologies across its operations, reinforcing its leadership position in the Indias denim manufacturing sector. The Company installed the latest technology and machineries sourced from different countries across the globe. This helps NDL to produce all kinds of fashion denims with high precision quality check systems.

NDLs vertical integration - from yarn to finished fabric - combined with an in-house R&D department, fuels ongoing product innovations, including stretch denims and sustainable blends. The Company ensures strict quality control through advanced laboratory equipment and standardized inspection procedures.

Furthermore, NDL leverages technology for efficient resource management and wastewater treatment, underscoring its commitment to sustainability.

HUMAN RESOURCES

At Nandan Denim, the workforce is considered a vital part of the organization, backed by robust HR policies that promote a healthy and inclusive working environment. These policies ensure equal employment opportunities and foster inclusive growth.

The Company places a strong emphasis on employee engagement and learning and development initiatives, encouraging employees to enhance their skills through various development programs. During the year, NDL organized activities such as tree plantation drives, blood donation, celebrations of Independence Day, Womens day and cultural programs. These events facilitated inter- departmental interaction and collaboration.

NDL is equally committed to safeguarding the health and safety of its employees. The Company conducted comprehensive safety and fire audits and established internal standard operating procedures (SOPs) to uphold occupational health and safety standards. In addition, NDL implemented stringent safety protocols, including safety training, access to first aid, the use of personal protective equipment (PPE), and the availability of medical professionals and psychologists for employee support. With the total employee strength of over 2,126, NDL is well positioned to achieve new milestones as it moves forward.

ENVIRONMENT AND SOCIAL RESPONSIBILITY

NDL acknowledges its responsibility toward environmental stewardship and social well-being. As a matured organization, it upholds the highest standards of business ethics and waste reduction. The Company is aiming towards carbon-neutral Company and actively engages in effective water, waste, and energy management practices to support its environmental protection efforts.

Nandan Denim utilizes in-house 37 MW Power Plant, 2 MW windmill and 1 MW solar power system for captive consumption of energy and aiming to use more renewable energy, to reduce carbon emission. In addition, the Company promotes reuse and recycling of water by establishing Effluent Treatment Plant (ETP) and Reverse Osmosis (RO) facilities. Wastewater is further processed using a Sewage Treatment Plant (STP) and reused for horticultural purposes such as gardening.

The Company embeds social and ethical principles into its core operations. Its Corporate Social Responsibility (CSR) programs are designed to empower communities and foster inclusive development. The Company supports various bodies in carrying out activities in the areas of Community Healthcare, Sanitation and Hygiene, Education and Knowledge Enhancement, Social Care and Concern, Animal Welfare etc.

INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

The Companys internal control system reflects its operations size, nature and complexity. The internal control system is responsible for managing corporate risks, ensuring financial data correctness, reporting transactions on time, protecting assets and adhering to rules. These controls are regularly monitored and reviewed by the Companys internal auditors. The Audit Committee reviews audit reports and addresses any anomalies as needed. Important observations are communicated to management, who swiftly implement corrective actions.

CAUTIONARY STATEMENT

The MDA section may include forward-looking statements about prospects that are subject to risks and uncertainties. Geopolitical events may pose unforeseen, unprecedented, unascertainable and continuously changing risks to the Company and the environment in which it operates. The reports facts and numbers are based on assumptions developed using internal and external data. Assumptions can alter over time, affecting estimations. Forward-looking statements only apply to the date they were made and reflect the Companys current intentions, beliefs, or assumptions. The Company is not obligated to amend or update forward-looking statements based on new information or future events.