Parin Enterprises Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Your Company continues to pursue its vision of expanding its market presence through a focused, strategic and market-driven approach. The evolving Indian economy, increasing institutional spending and the expansion of healthcare, education, manufacturing and corporate infrastructure present attractive opportunities for the furniture and workspace solutions industry. India continues to demonstrate strong economic resilience. As per the Economic Survey 2025-26, real GDP growth is estimated at 7.4% in FY2025-26, supported by robust domestic consumption and investment. Indias manufacturing sector is also gaining momentum, supported by policy initiatives, capacity expansion, infrastructure development and increasing domestic value addition. These trends are expected to create sustained demand for quality furniture and workspace solutions. The continued expansion of hospitals, diagnostic centres, medical facilities and allied healthcare infrastructure is expected to support demand for specialised healthcare furniture. Similarly, Indias large and young population and continued investment in schools, colleges, universities and training institutions provide a strong long-term opportunity for institutional furniture. The Economic Survey 2025-26 recognises healthcare and education as important pillars of human capital development. Against this favourable backdrop, your Company is focused on strengthening its presence in the healthcare, education, institutional and corporate furniture segments. The Company will continue to focus on market expansion, product quality and innovation, customer-centric solutions, technology adoption, operational efficiency and cost optimisation. These initiatives are aimed at delivering sustainable growth and creating long-term value for all stakeholders. Sources: Government of India, Ministry of Finance Economic Survey 2025-26; IBEF Healthcare, Medical Devices, Education and Manufacturing sector reports.

OVERVIEW AND OUTLOOK OF COMPANYS BUSINESS :

Our Company has been associated with some of the prestigious projects for furniture such as PSP Projects Limited (Adani Group), PSP Projects & Proactive Constructions Private Limited (Adani Group), Airport Authority Of India - Ayodhya, Airport Authority Of India - Leh, Airport Authority Of India - Vadodara, Airport Authority Of India - Rajkot, Airport Authority Of India - Raipur, Airport Authority Of India - Surat, Tata Showroom Blue Series Furniture Various Loaction In India, Knowledge Consortium Of Gujarat, Agriculture And Co-Operation Department Gujarat, West Bengal Medical Services Corporation (Wbmsc) Kolkata, Sarva Shiksha Abhiyan (Ssa) - Gujarat, Swarnim Gujarat Sports Foundation, Shree Patel Seva Samaj - Aatkot, Porbandar Nagrik Sahakari Bank, Divine Life Hospital - Kutch, Transglobe, Rajasthan Council of School Education, Maa Education, Trendsutra, Pranav Overseas LLP, Rashtriya Madhyamik Shiksha Abhiyan, Sarva Shiksha Abhiyan, IIT Guwahati, Sarva Siksha Abhiyan-Gujarat , IIT Gandhinagar & various Medical Colleges falling under the AIIMS umbrella. In the health care sector, our Company has successfully executed high value orders for Medical & Non Medical Furniture for various Project Implementation Units (PIU s), HLL Infratech Services P Ltd (Under the Government of India Health & Family Welfare Dept), multiple AIIMS, U N Mehta Institute of Cardiology & Research, Andhra Pradesh Medical Services & Infrastructure Development Corporation(APMSIDC), Engineering Projects (Inida) Limited (EPIL), AAI_Guwahati, West Bengal Medical Services Corporation (wbmsc) Kolkata, so on. As stated earlier, we are now poised in a very strong position with our affiliation with Airports Authority of India.

OUR PRODUCT RANGE :

Our Company is having a high flexibility to cater to a wide range of products in various categories such as Institutional Furniture which covers Office Furniture, Educational Furniture (From KG to PG), Health Care Furniture (Isolation beds, Fowler Beds, Motorized Beds, Support Furniture etc.) all types of Non Medical Furniture over and above having inherent strengths of Home Furniture range covering living room, dining room and bed room. In fact, Public Seating System (Waiting Area Chairs) is another major segment where we have developed strength through product development and channel sales.

CUSTOMER WISE PERFORMANCE IS AS UNDER:

Product wise bifurcation is not feasible to provide as the company is dealing into various products in one segment only and hence category wise/ customer based data is given as below :

Customer	Sum of Total (Rs. in Lakhs)
Government Project	3517.11
Institutional / Private Project	3099.63
Retailer & Wholesaler	285.66
Dealer/Distributor	604.44
Total	7506.84

And as stated aforesaid, Company has only one segment , hence segment wise performance is not applicable.

STRENGTHS, OPPORTUNITIES, RISKS AND CONCERNS

Strength

Our core purpose is To serve the world with better lifestyle. Our business network is spread in 8 States. W e consistently introduce new design in our products. We have integrated in-house capabilities to market, distribute and retail our conceptualized furniture. We also have team of experienced, highly professional and skilled manpower. We understand the customer needs, market trends mapping and provide value for money products.

Your company have ventured into new business of manufacture , trading i.e.buying, selling, dealing in, automobiles, motorcars, lorries, buses, vans, motorcycles, cycle-cars, motor, scooters, carriages, amphibious vehicles, and vehicles suitable for propulsion on land, sea, or in the air. or in any combination thereof and vehicles of all descriptions, whether propelled or assisted by means of petrol, diesel, spirit, steam, gas, electrical or other power, and of internal combustion and other engines, chassis-bodies and other components, parts and accessories and maintenance thereof. Further to carry on the business of Mobile Devices, Tablets, Telecom Accessories and other related gadgets.

And to carry on the business as developers, builders, erect, demolish, alter, repair or remodel, to act as contractors, estate agents, engineers, consulting engineers, supervisors, management consultants, advisors, architects, erectors, constructors, interior decorators of building, convention centre, business centre, club house, entertainment centre, roads, infrastructure facilities, school, colleges, hospital, malls, retail spaces, shopping arcade, house, apartment, structures, shelters, warehouses and or residential, office, industrial, institutional or commercial complex, Co-operative housing Societies, township, holiday resorts, hotels, motels, information technology parks, special economic zones, special tourism Zones., and any such special zones and to purchase, sale, resale, trade, transfer, give, on leave and License Our diversified business portfolio enables us to cater a wide range of preferences & consumer segment.

Challenges i.e. Risk and Concern:

The prime challenges faced by the Company are Legal Boundaries, Economical Changes, Globalization and Regulatory proceedings, Technological and Political changes are the key challenges for the growth of Business.

Our Company operates under several statutory and regulatory permits, licenses and approvals. Our inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate our business may have a material adverse effect on our business & operations.

Quality of our product is key aspect to sustain in the Market. Any failure to maintain the quality of the product may affect adversely to our business, however we have a system of quality check. Third Party like Transportation facilities, Market Trends include Customers Change in test, preferences, choices, fashion, designs, patterns, Fluctuation in price and supply of product, failure in obtaining additional source of finance, Business Rivals, Competition, delay and defaults in clients payments, inadequate insurance cover age to protect against uncertain hazards, Some Commitments and liabilities all are adversely affect the growth of Business.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY :

As Stated in Board s Report, the Company has in all material respects, an adequate Internal Financial Control System over Financial Reporting and such Internal Financial controls over financial reporting were operating effectively.

The Company has proper and adequate system of Internal control to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and that transaction are authorized, recorded and reported correctly. The company has effective system in place for achieving efficiency in operations, optimum and effective utilization of resources, monitoring thereof and compliance with applicable laws. The Company has also appointed Internal Auditor to check the Internal Control System and their adequacy.

DISCLOSURE OF ACCOUNTING TREATMENT

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standards

FINANCIAL PERFORMANCE :

During the year under review, Financial performance from Operation activities are as follow:

( Rs in lakhs.)

Particulars	2025-26	2024-25
Total Revenue	7583.11	9811.78
Profit (Loss) before tax	578.82	710.49
Less: Tax Expenses
Current Tax	137.06	195.99
Previous Year Tax	-	4.51
Deferred Tax	16.28	7.28
Profit (Loss) After tax	425.48	502.71
Earning Per Equity Share (Basic)	3.83	4.52
Earning Per Equity Share (Diluted)	3.80	4.52

SEGMENT WISE PERFORMANCE:

The Company has identified its business segment as Primary Reportable Segment. There are no other Primary Reportable Segment and as such Segment wise reporting is not given.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Human resource are valuable asset of our business and the relationship with the staff and workers continued to be cordial during the entire year. The Directors wish to place on record their appreciation of the valuable work done and co- operation extended by them at all levels. Further, the Company is taking necessary steps to recruit the required personnel from time to time.

Company has framed requisite policies through which Healthy environment remains amongst the Employees and help us improve quality of life of our employees. Employees are given freedom to share their views to the Management. We are committed to fair employment practices and freedom of expression, supported by a strong, Company wide value system. During the year there was no instance of Strike, Lock out or another issues related to Human Resources.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

In following Ratios there are significant changes in Key Financial Ratios in comparison to Previous year: (Consolidated Basis)

Sr. No. Type of Financial Ratios	2025-26	2024-25	Explanations
1 Debtor Turnover Ratio	5.14	3.88	Debtor Turnover ratio is highet as compared to Last year due to increase in Turnover
2 Inventory Turnover Ratio	2.26	1.59	Inventory turnover ratio is higher than last year due to increase in Turnover
3 Interest Coverage Ratio	2.47	2.76	Companys earnings available to service interest obligations have reduced relative to its interest burden, leading to a lower coverage ratio compared to the previous year
4 Current Ratio	1.76	1.61	Current ratio is higher as compared to last year which shows that liquidity of the company has increased
5 Debt Equity Ratio	1.18	1.47	Debt Equity Ratio decreased slightly as compared to previous year due to paying off debt borrowing during the year.
6 Trade Payables Turnover Ratio	2.79	6.92	Trade Payables Turnover ratior is lower than previous year Due to Decrease in Creditors
7 Net Profit Ratio	0.03	0.04	Net Profit Ratio is lower than previous year due to increase in expenses
8 Return on Capital Employed	0.02	0.09	Return on Capital Employed is lower than previous year due to decrease in EBIT

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

The Net Worth of the Company has increased to Rs. 6412.95/- Lacs in comparison to previous year Rs. 5487.51/- Lacs. There is increase In Net worth of the Company due to accumulation of profit/surplus.

CAUTIONARY STATEMENT:

Statement in this Management Discussion and Analysis Report, describing the Companys objectives, estimates and expectations may constitute Forward Looking Statements within the meaning of applicable laws or Regulations. Actual results might differ materially from those either expressed or implied.

	For and on Behalf of
	Parin Enterprises Limited
	(Previously knonw as Parin Furniture Limited)
	Sd/-
Date: 7 th September, 2026	Umesh Dhirajlal Nandani
Place: Rajkot	Chairman & Managing Director
	(DIN:00039757)