Ramgopal Polytex Ltd Management Discussions

Management Discussion and Analysis Report on the business of the Company as applicable and to the extent relevant is given below:

The statements in the “Management Discussion and Analysis Report” describe the Companys objectives, projections, expectations, estimates or forecasts which may be “forward-looking statements” within the meaning of the applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied therein due to risks and uncertainties. Important factors that could influence the Companys operations, inter alia, include global and domestic demand and supply conditions affecting selling prices of goods, availability and prices, changes in government regulations, tax laws, economic, political developments within the country and other factors such as litigations and industrial relations.

GLOBAL ECONOMY OVERVIEW:

The global economy witnessed a period of cautious recovery during FY 2025-26. According to the International Monetary Fund (IMF), global GDP growth was projected at approximately 3.2% for 2025 and 2026. While the pace of disinflation in advanced economies created scope for monetary easing, geopolitical tensions, supply chain disruptions, and trade policy uncertainties posed downside risks to global growth. Volatile commodity prices and fluctuating crude oil markets continued to influence input costs across industries globally.

Trade policy developments - including the imposition of tariffs by major economies - introduced fresh uncertainty into global supply chains. Indian manufacturers, including textile and polymer players, navigated these headwinds while simultaneously exploring new export markets opened by Indias evolving trade agreements.

INDIAN ECONOMY OVERVIEW:

India continued to be among the fastest-growing major economies in the world during FY 2025-26. Indias GDP growth rate was estimated at approximately 6.4-6.5% for FY 2025-26, driven by robust domestic consumption, strong capital expenditure by the government, improving agricultural output, and the continued momentum in manufacturing and services sectors.

The Union Budget 2025-26 reinforced Indias commitment to infrastructure development with a capital expenditure outlay of ?11.21 trillion ? approximately 10.12% higher than the previous year. The Budget also provided income tax relief to the middle class, boosting private consumption. The Reserve Bank of India pursued a calibrated monetary policy, with inflation gradually moving toward the RBIs target band, creating conditions for monetary easing to support growth. Indias per capita income crossed approximately US$ 2,600 in FY 2024-25 and continues to rise, supporting domestic consumption across all consumer segments including textiles and apparels.

INDUSTRY STRUCTURE AND DEVELOPMENT:

During the financial year ended March 31, 2026, your Company was mainly engaged into the wholesale trading of commodities such as yarn and polymer etc.

Polymer

Strong growth trajectory: India is among the fastest-growing polymer markets in the world, with consumption expected to rise at a CAGR of around 7-8% over the next decade, significantly outpacing global averages. Demand is being driven by rapid urbanization, expansion of packaging, infrastructure development, automotive lightweighting, and rising disposable incomes. Indias polymer consumption is projected to nearly double by 2035, supported by government initiatives such as PLI schemes, petrochemical capacity expansions, and a focus on Make in India and circular economy regulations.

Yarn

The demand for spandex yarn is expected to remain strong, driven by the global athleisure and active-wear boom, with rising adoption of yoga wear, gym wear, swimwear, and compression garments supporting a steady growth of around 6-8% CAGR. At the same time, stretch fabrics are increasingly becoming a standard across denim, formal wear, lingerie, and casual wear, thereby expanding the application base beyond sportswear. Additionally, the growing use of spandex in medical textiles such as orthopedic supports, bandages, and compression stockings provides a stable healthcare-driven demand, further strengthening the long-term outlook.

Government Policy Support

The Government of India significantly increased its support to the textile sector in FY 2025-26. Key policy developments included:

• Ministry of Textiles budget allocation increased by approximately 19% to ?5,272 crore in Union Budget 2025-26

• Five-year Cotton Mission launched with ?600 crore allocation to boost cotton productivity and reduce import dependence

• PLI Scheme for Textiles ? outlay of ?10,683 crore to incentivise production of MMF apparel, fabrics, and technical textiles

STRENGTH, WEAKNESS, OPPORTUNITIES AND THREATS:

Strengths:

1. Diverse Product Portfolio: The Companys involvement in both yarn and polymer markets offers diversification, reducing dependency on a single product line.

2. Established Market Presence: A strong reputation and established relationships with suppliers and customers in the industry can lead to steady demand.

Weaknesses:

1. Price Sensitivity: Both yarn and polymer markets are highly sensitive to fluctuations in prices, which can impact profit margins.

2. Thin trading margins: susceptible to rapid commodity price moves and inventory mark-to-market.

Opportunities:

The Company is in the business of trading in commodities for last three decades, which has made it a well-known business house in the market in which the Company trades.

Threats:

1. Price Sensitivity: Both yarn and polymer markets are highly sensitive to fluctuations in prices, which can impact profit margins.

2. Intense Competition: Competition from both domestic and international players may lead to price wars, reducing margins.

3. Economic Uncertainty: Global economic slowdowns or recessions could decrease demand for both yarn and polymer products.

4. Regulatory Changes: Any changes in environmental or trade regulations could impose additional costs or restrict market access

5. Government Policies: The Companys business also has a threat of sudden change in government policies like policies relating to import of certain products, change in customs duty structure, change in GST rates, etc. The Company monitors the changes in government policies on day-to-day basis and forms appropriate strategies to mitigate the impact on the Company while ensuring adequate compliances.

SEGMENT/PRODUCT-WISE PERFORMANCE:

The Companys current business activity has only one primary reportable segment, namely trading in Commodities such as yarn, polymer, etc.

OUTLOOK:

Your Directors are confident that growing consumption of yarn and polymers is expected to drive healthy trading volumes in the coming years and further by diversifying its product portfolio, strengthening supplier-customer relationships, and exercising disciplined risk management, your Company is well positioned to capture emerging opportunities while mitigating market volatility.

RISK AND CONCERNS:

Business risk evaluation is an ongoing process within the Company. The assessment is periodically examined by the Board. Your Company has devised and implemented a mechanism for Risk management and has developed a Risk Management Policy. The Policy provides for identification of internal and external risks and implementing risk mitigation steps. The said Policy is available on the website of the Company www.ramgopalpolvtex.com.

Yarn and Polymer Industry has certain specific set of risk characteristics, which needs to be carefully evaluated and mitigated. In order to effectively manage the same, the Company has evolved proactive Risk Management System, which is adhered to. The risk management covers the entire process from competitors activities, new entrants etc.

This section lists forward-looking statements that involve risks and uncertainties.

1. Our revenues and expenses are difficult to predict and can vary significantly from period to period.

2. We may not be able to sustain our profit margins or levels of profitability.

3. The economic environment, pricing pressures etc. can negatively impact our revenues and operating results.

4. Currency fluctuations may affect the results or our operations.

5. Intense competition in the market can affect our pricing.

6. Changes in the policies of Government or political instability could impede liberalization of the Indian Economy and adversely affect economic conditions in India generally, which could impact our business and prospects.

The Company has identified the following key risks and has adopted appropriate mitigation strategies:

Sr.	Risk	Impact	Mitigation
1.	Credit Risk	Risk of non-recovery of trade receivables from customers	Robust credit assessment process; credit limits for customers; regular monitoring of debtor ageing
2.	Market Risk	Slowdown in demand from key customer segments ? garments, home textiles	Diversification of product portfolio and customer base across geographies
3.	Regulatory/Compliance Risk	Changes in trade policy, GST, or environmental norms	Dedicated compliance monitoring; engagement with industry bodies

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has put in place adequate internal control systems commensurate with its size, nature, and operations. These systems are designed to ensure:

• Accuracy and reliability of financial reporting and disclosures

• Safeguarding of the Companys assets against unauthorised use or disposition

• Prevention and detection of fraud and errors

• Compliance with applicable laws, regulations, and Company policies

• Efficient conduct of business operations

The Companys internal audit function reviews the adequacy and effectiveness of internal controls on a periodic basis and reports to the Audit Committee. The Audit Committee of the Board of Directors actively reviews internal audit findings, risk management processes, and compliance frameworks at each quarterly meeting.

The Statutory Auditors have not reported any material weakness in the internal financial controls of the Company during FY 2025- 26. The management continues to strengthen the internal control framework in line with the evolving business environment and regulatory requirements.

The Company has an ideal internal control system in every area of its operations. The internal control system is commensurate with the size and nature of its business. Further, the Company has appointed M/s. Ravi Seth & Co. as “Internal Auditors” to ensure effectiveness of internal control system. The Company mitigate the lapses in internal control system, if the same are observed by the Internal Auditors.

FINANCIAL AND OPERATIONAL PERFORMANCE:

Financial Results and performance for the year are elaborated in the Directors Report.

HUMAN RESOURCES AND INDUSTRIAL RELATION:

The Companys philosophy is to establish and build a high performing organization, where each individual is motivated to perform to the fullest capacity: to contribute to developing and achieving individual excellence and departmental objectives and continuously improve performance to realize the full potential of our personnel. Industrial relations are cordial and satisfactory.

The employee strength as on March 31,2026 was 7 (Seven).

The Key Financial Ratios of the Company are given as below:

Sr. No.	Particulars	2025-26	2024-25
i.	Debtors Turnover ratio (Times)	141.11	3.16
ii.	Inventory Turnover (Times)	7.42	7.61
iii.	Interest coverage ratio	-	-
iv.	Current ratio	24.95	28.72
v.	Debt equity ratio	-	-
vi.	Operating margin ratio%	(90.63)%	(12.39)%
vii.	Net Profit Margin	(90.63)%	(12.50)%

Explanations for variation of 25% or more in Key Financial Ratios:

• Debtors Turnover ratio improved due to decrease in trade receivable.

• Operating margin ratio% decreased due to provisions made for irrecoverable GST input credit.

• Net Profit Margin decreased due to provisions made for irrecoverable GST input credit.

RETURN ON NET WORTH:

Particulars	2025-26	2024-25
Return on net worth (%)	(8.85)%	(1.65)%

Reason for significant change: Return on equity decreased due to provisions made for irrecoverable GST input credit. CAUTIONARY STATEMENT:

Some of the statement contained within this Report may be “forward looking” in nature and may involve risks and uncertainties. The statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements could thus differ materially from those projected in any such forward-looking statements.

The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

	By Order of the Board of Directors
	For Ramgopal Polytex Limited
	Sanjay Jatia
	Chairman & Managing Director
	(DIN: 00913405)
Place: Mumbai
Date: July 10, 2026
Regd. Office:
Greentex Clearing House, B-1,2 & 3, Gosrani Compound,
Rehnal Village, Bhiwandi, Thane - 421302.
CIN: L17110MH1981PLC024145, Tel: 22-61396800
E-mail Id: rplcompliance@ramgopalpolytex.com
Website: www.ramgopalpolvtex.com