a. Industry Structure and Developments:
The industry is dependent on performance of core sectors like agriculture, fertilizer, cement and exports. Due to indifferent monsoon during last few years and in general recessionary economies, the performance of the above sectors was hit.
b. Opportunities and Threats:
The industry is threatened by nonexistence of exports to European Union due to heavy antidumping duty levied on Indian products.
c. Segment wise Performance:
The Company is operating only in one segment. The production/ turnover/performance of the Company have been disclosed in the Directors Report under the Head Sales and Working Results.
d. Recent Trend and Future Outlook:
The opening up of food grains sector will enable the Woven Sacks industry to see better times again.
e. Risks and Concerns:
The industry is plagued by intense competition due to major petrochemical manufacturers making available cheap raw material abundantly.
f. Internal Control Systems and their Adequacy:
The Company has adequate systems of Internal Controls to ensure orderly and efficient conduct of business. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information.
g. Financial Performance with respect to Operational Performance:
The financial performance of the Company for the year 2025-26 is described in the Directors Report under the head Sales and Working Results.
h. Material Developments in Human Resources and Industrial Relations Front:
The Company has continued to give special attention to Human Resources/Industrial Relations development. Industrial relations remained cordial throughout the year and there was no incidence of strike, lockout etc.
i. Key Financial Ratios:
| Particulars | Numerator | Denominator | 31st March 2026 | 31st March 2025 | Difference | Variance | Reasons for Variance (in case of deviation for more than 25%) |
| Current Ratio | Current assets | Current liabilities | 0.54 | 0.58 | -0.04 | 6.89% | |
| Debt - Equity Ratio | Total Debt (represents lease liabilities) | Shareholders Equity | 1.44 | 1.36 | -0.08 | 5.88% | |
| Debt Service Coverage Ratio | Earnings available for debt service | Debt Service | -1.64 | 0.03 | -1.67 | -5566% | With reduction in revenue, the profits has reduced. This has resulted into no earnings available for Debit Service. |
| Return on Equity (ROE) | Net Profits after taxes | Average Shareholders Equity | -11.12% | 0.02% | -11.14% | 557% | With reduction in revenue, the profits has reduced. This has resulted into negative ROE. |
| Inventory Turnover Ratio | Cost of Material Consumed | Average Inventory | N.A. | N.A. | |||
| Trade receivables turnover ratio (in Days) | Revenue | Average Trade Receivable | 14.60 | 73 | 58.40 | -80% | With reduction in revenue, the ratio has changed. |
| Trade payables turnover ratio (In Days) | Purchases of services and other expenses | Average Trade Payables | N.A. | N.A. | |||
| Net capital turnover ratio | Revenue | Working Capital | -0.04 | -0.25 | -0.21 | -84% | With reduction in revenue, the ratio has changed. |
| Net profit ratio | Net Profit | Revenue | -4.14 | 0.14 | -4 | -2857% | With reduction in revenue, and consistent Finance expense, the ratio has changed. |
| Return on capital employed (ROCE) | Earning before interest and taxes | Capital Employed | -0.04 | 0.09 | -0.13 | -144% | With reduction in revenue, and expense of Stamp Duty and Advocate fees has reduced earnings. |
| Return on Investment (ROI) | N.A. | N.A. | N.A. | N.A. |
j. Cautionary Statement:
Statement in this Management Discussion and Analysis Report, describing the Companys objectives, estimates anc 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 the Board, | ||
| Ankit J. Patel | Nikita J. Patel | |
| Place: Ahmedabad | Managing Director | Director |
| Date: 29th July, 2026 | (DIN:02351167) | (DIN:03092770) |
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