Parshva Enterprises Ltd Management Discussions

OVERVIEW

The company is in the business of sale and trading of Gold & Diamond jewellery and cut & polished Diamonds. The company supplies the polished diamonds primarily to wholesalers, jewellery manufacturers, traders and retailers based in India.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian diamond industry continues to occupy a significant position in the global gems and jewellery sector and forms an integral part of the countrys export economy. The industry also continues to adapt to changing market trends, including the growing acceptance of laboratory-grown diamonds alongside natural diamonds. Despite short-term challenges arising from global economic uncertainties and geopolitical developments, the long-term outlook for the Indian diamond industry remains positive, driven by its strong manufacturing capabilities, established global presence, and sustained demand for diamond jewellery.

India continues to be a global hub for the gems and jewellery industry, supported by cost competitiveness, a highly skilled workforce, and a well-established value chain. The country remains the worlds leading centre for diamond cutting and polishing and is among the largest consumers of gold globally. The industry encompasses the sourcing, processing, manufacturing, and retailing of precious metals and gemstones, including gold, silver, platinum, diamonds, and other precious stones. Evolving consumer preferences and changing lifestyles continue to drive demand for innovative jewellery products, while the sector remains a significant contributor to the countrys exports, employment generation, and overall economic growth.

INDUSTRY TREND DIAMOND JEWELLERY

Evolving Consumer Preferences: Rising demand for diamond and coloured gemstone jewellery, particularly among younger consumers.

Expanding Demand: Diamond jewellery is increasingly purchased for occasions beyond weddings, including gifting and self-purchase.

Organised Market Growth: Growth in organized retail, digital channels and innovative jewellery designs continues to support industry expansion.

OUTLOOK

The Gems and Jewellery sector continues to be a key focus area for export promotion by the Government, considering its significant growth potential and value addition. The long-term outlook for the industry remains positive, supported by the expansion of organised retail and established jewellery brands, which are expected to further strengthen the organised segment and drive sustained industry growth.

Indias Gems and Jewellery sector significantly contributes to the national economy, accounting for about 7% of GDP and 7-9% of total merchandise exports. Indias gold demand is projected to remain in the range of 600 700 tonnes in 2026, with rising investment demand offsetting weaker jewellery consumption due to elevated gold prices.

As of January 2026, the market size stood at US$ 85 billion and is projected to expand to US$ 130 billion by 2030. The Government of India aims to reach US$ 100 billion in jewellery exports over the next few years (until 2027), up from US$ 35 billion in 2020. The country is also the second-largest consumer of gold jewellery globally.

Indias gem and jewellery exports recorded strong growth in June 2026, reflecting improving global demand and enhanced export competitiveness. According to the Gem and Jewellery Export Promotion Council (GJEPC), gross exports increased 26.51% year-on-year to Rs. US$ 2.21 billion during the month.

OPPORTUNITIES AND THREATS

(a) Opportunities/Strength

Induction of widely experienced and specialized personnel on the Board.

Rising disposable incomes, urbanisation, and strong demand during weddings, festivals, and other special occasions continue to support long-term growth in the gold jewellery market. Some of the world retail majors have decided sometime back to source part of their requirements from India. This shall further the growth of the Diamond industry in India.

(b) Threats

Jewellery being a vital fashion and lifestyle statement, demands the players to be more agile, and responsive to the constantly evolving trends and consumer preferences. Intense competition from organised and unorganised market participants, along with rapidly changing consumer preferences and fashion trends, requires continuous product innovation and efficient inventory management to sustain market competitiveness.

RISK AND CONCERNS

The gold jewellery industry is exposed to risks arising from fluctuations in gold prices, changes in consumer preferences, economic conditions, regulatory developments, and competition from organised and unorganised market participants. Variations in import duties, taxation policies, BIS hallmarking requirements, and foreign exchange rates may also impact the Companys operations and profitability.

The Company has implemented an effective risk management framework supported by robust internal controls, well-defined policies, and regular monitoring of market and regulatory developments. These measures enable the Company to identify, assess, and mitigate potential risks in a timely manner, thereby supporting operational efficiency, financial stability, and sustainable business growth.

FACTORS AFFECTING OUR OPERATIONS Gems and Jewellery Industry

The gold jewellery industry is influenced by factors such as fluctuations in gold prices, consumer demand, economic conditions, regulatory changes, and seasonal buying patterns. Demand is primarily driven by weddings, festivals, and investment preferences, while increasing consumer inclination towards organised retailers, BIS hallmarked jewellery, and contemporary designs continues to shape the industry. The Companys operations may also be affected by changes in import duties, taxation policies, foreign exchange rates, and overall market sentiment.

High Working Capital Intensive Industry vis-a-vis Low Priority Sector for Bankers

In the diamond industry, there is a norm of longer credit period and high inventory levels, considering which it becomes high working capital intensive industry, whereas it is a low priority sector from the perspective of bankers.

Financial Performance with respect to Operational Performance

On a consolidated basis, The Total Turnover of the Company is 2475.76 (In Lacs) in current year and 2477.50 (In Lacs) in previous year indicating declined by 0.07%. The Company has earned a Profit of 25.96 (In Lacs) as compared to 18.69 (In Lacs) in the previous year.

Pursuant to the Scheme of Demerger sanctioned by the Honble National Company Law Tribunal (NCLT), Mumbai Bench, vide its Order dated 13th October, 2025, the Jewellery Division of the Company stands transferred to Simandhar Impex Limited. The demerger has enabled the Company to achieve greater business focus and operational efficiency. The management remains optimistic about the Companys future prospects and expects sustained growth and improved profitability in the coming years.

Details of significant changes in key financial ratios

In accordance with the amended SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the Company is required to give details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof: The Company has identified following ratios as key financial ratios:

Particulars	FY 2025-26	FY 2024-25	% Change	Reason for change of 25% or more as compared to the immediately previous financial year
Trade Receivable Turnover Ratio	29.97	3.13	857.51%	The ratio is also influenced by the restructuring of the business pursuant to the Scheme of Demerger, resulting in improved working capital efficiency.
Inventory Turnover	5.41	9.13	40.75%	The ratio declined primarily due to the transfer of the Jewellery Division pursuant to the Scheme of Demerger, resulting in changes in the inventory profile and business operations.
Interest Coverage Ratio	9.32	3.93	137.15%	Improved profitability coupled with lower finance costs led to a substantial increase in the interest coverage ratio.
Current Ratio	78.66	28.22	178.74%	Increase in current assets and reduction in current liabilities following the Scheme of Demerger strengthened the Companys liquidity position.
Debt Equity Ratio	0.01	0.04	75.00%	The ratio improved due to repayment/reduction of borrowings and a stronger equity base during the year.
Net Profit Margin	1.09	1.02	6.86%	Not Applicable
Return on Capital Employed	3.69	2.93	25.94%	Improvement in operating profitability and more efficient utilization of capital employed during the year.

Note: Since the Jewellery Division was transferred to Simandhar Impex Limited pursuant to the Scheme of Demerger sanctioned by the Honble NCLT. The changes in certain financial ratios during the year are also attributable to the impact of the Scheme of Demerger, pursuant to which the Jewellery Division of the Company was transferred to Simandhar Impex Limited. Accordingly, the ratios for the current year may not be strictly comparable with those of the previous year.

Cautionary Statement

Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions are within the meaning of applicable laws or regulations. These statements are based on certain assumptions and reasonable expectation of future events. Actual results could however differ materially from those expressed or implied. Important factors that could make a difference to the

Companys operations include changes in the government regulations, tax laws, statues and other incidental factors as applicable to the company.

Acknowledgement

Your directors take this opportunity to express their deep sense of gratitude to the vendors, business associates, employees, investors and banks for their continued support and co-operation during the year under review.

For and on behalf of the Board of Directors
Parshva Enterprises Limited
Prashant Vora	Harsh Vora
Managing Director	Director
DIN: 06574912	DIN: 07861487
Date: August 24, 2026
Place: Mumbai