Padmanabh Industries Ltd Management Discussions

I. Industry Structure and Development

The fabrics industry occupies an important position in the Indian Economy for its extended role of early industrialization and social sector development. Strong growth in end user segments coupled with the initiatives from the government and industry to enhance the growth has brought the focus on the fabrics segment. Simultaneously, improved competitiveness is likely to result in signi icant growth of the diverse but fragmented fabrics segment.

II. Opportunities and Threats

A future of opportunities exists in the form of increasing user and increasing demand. Growth in Indian economy leads to creation of immense opportunities to the Company for future growth and development.

Your Company perceives risks or concerns common to industry such as concerns related to the Global Economic fallout, Regulatory risks, Foreign Exchange volatilities, Higher Interest rates, and other commercial &business-related risks. Fabrics businesses are generally working capital intensive and hence the working capital requirements are also higher.

III. Internal Control system and their adequacy

The Company has adequate system of internal control commensurate with its size and operations to ensure orderly and ef icient conduct of the business. These controls ensure safeguard of assets, reduction and detection of frauds and error, adequacy and completeness of the accounting record and timely preparation of reliable inancial information.

KEY RATIOS

There have been no signi icant changes (i.e., change of 25% or more as compared to the immediately previous inancial year) in key inancial ratios of the Company.

IV. Financial performance with respect to operational performance

The inancial performance of the Company for the year 2024-25 is described in the Directors Report. i. Risk and Concerns Your Company perceives risks or concerns common to industry such as concerns related to the Global Economic fallout, Regulatory risks, Foreign Exchange volatilities, Higher Interest rates, and other commercial &business-related risks. Fabrics businesses are generally working capital intensive and hence the working capital requirements are also higher. ii. Material developments in Human Resources/Industrial Relations front, including the number of people employed.

During the year under review, no such initiatives and/or developments in Human Resources/Industrial Relations front has been taken by the Company.

iii. Segment wise Performance:

The business of the company is operating in Single segments.

iv. Recent Trend and Future Outlook:

The sector in which the Company has been operating is developing faster and provides ample growth opportunities. Further due to rise in foreign direct investment in the sector, Company will be able to develop projects at fast pace and looking forward for better development and high investment returns.

v. Cautionary Statement: -

Statement in this Management Discussion and Analysis describing the companys objectives, projections, estimated and expectations are “forward looking statements” Actual results might differ, materially from those anticipated because of changing ground realities.

Date: 03.09.2025 By the order of the Board Place: Ahmedabad PADMANABH INDUSTRIESLIMITED

Sd/- Sd/- Dhairya Bharatbhai Shah Manali Patel Managing Director Director (DIN: 11196986) (DIN : 11196600)