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:

According to the World Economic Outlook (WEO) outlook by the International Monetary Fund (IMF) published in January 2025, Global growth is projected at 3.3 percent both in 2025 and 2026, below the historical (2000–19) average of 3.7 percent. The forecast for 2025 is broadly unchanged from that in the October 2024 World Economic Outlook (WEO), primarily on account of an upward revision in the United States offsetting downward revisions in other major economies. Global headline inflation is expected to decline to 4.2 percent in 2025 and to 3.5 percent in 2026, converging back to target earlier in advanced economies than in emerging market and developing economies.

Medium-term risks to the baseline are tilted to the downside, while the near-term outlook is characterized by divergent risks. Upside risks could lift already-robust growth in the United States in the short run, whereas risks in other countries are on the downside amid elevated policy uncertainty. Policy-generated disruptions to the ongoing disinflation process could interrupt the pivot to easing monetary policy, with implications for fiscal sustainability and financial stability. Managing these risks requires a keen policy focus on balancing trade-offs between inflation and real activity, rebuilding buffers, and lifting medium-term growth prospects through stepped-up structural reforms as well as stronger multilateral rules and cooperation.

INDIAN ECONOMY OVERVIEW:

India, a South Asian nation, is the seventh-largest country by area, the second-most populous country with over 1.38 billion people, and the most populous democracy in the world. India boasts of an immensely rich cultural heritage including numerous languages, traditions, and people.

The country is attracting many global majors for strategic investments owing to the presence of vast range of industries, investment avenues and a supportive Government. Huge population, mostly comprising the youth, is a strong driver for demand and an ample source of manpower.

India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships.

Domestic economic activity is on a recovery path and is expected to remain resilient backed by consumption demand. It needs to be recognized that Indias forte is its high growth potential and robust macroeconomic fundamentals. Governments push for consumption and capex, resilient services sector, robust outlook of agricultural sector aided by strong corporate and bank balance sheets provide impetus to the growth momentum, going forward.

The measures announced in the Union Budget 2025-26 augur well for improving domestic consumption. Moreover, the adherence to fiscal consolidation and debt path without compromising on the quality of expenditure will help in improving sovereign ratings, attracting capital inflows, easing financial conditions, and improving overall sentiment and outlook. Well-coordinated fiscal and monetary policy working in tandem could undoubtedly generate improved outcomes in terms of better growth inflation balance. The recent tariff announcements by US administration have heightened policy uncertainty posing new headwinds for global growth and inflation. While India cannot remain immune to these developments, the progress achieved on the disinflation front gives headroom to monetary policy to focus on balancing the growth-inflation outcome.

INDUSTRY STRUCTURE AND DEVELOPMENT:

During the financial year ended March 31, 2025, 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.

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.ramgopalpolytex.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.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

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, 2025 was 6 (Six).

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

Sr. No.	Particulars	2024-25	2023-24
i.	Debtors Turnover ratio (Times)	3.16	10.26
ii.	Inventory Turnover (Times)	7.61	8.09
iii.	Interest coverage ratio	-	(10.56)
iv.	Current ratio	28.72	33.05
v.	Debt equity ratio	-	-
vi.	Operating margin ratio%	(12.39)%	(13.84)%
vii.	Net Profit Margin	(12.50)%	(15.16)%

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

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

• Interest coverage ratio not applicable for the year as there were no loans during the year.

RETURN ON NET WORTH:

Particulars	2024-25	2023-24
Return on net worth (%)	(1.65)%	(14.50)%

Reason for significant change: Return on equity improved as there is decrease in the losses in the current year.

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
Place: Mumbai	Chairman & Managing Director
Date: July 28, 2025	(DIN: 00913405)
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.ramgopalpolytex.com