Risa International Ltd Management Discussions

This report covers the operations and financial performance of the Company for the financial year ended 31st March, 2026 and forms part of the Directors Report.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company is engaged in trading in the business of textiles where the outlook of the business seems to be encouraging over and above we have been diversified into different businesses ranging from third party product distributions (lowest balance sheet risk) to originating unsecured personal loans, corporate loans (highest balance sheet risk). We believe that we are well placed to leverage on the growth opportunities in the economy.

OVERALL REVIEW

Due to adverse market conditions prevailing in various businesses in which the Company operates, the overall performance of the Company during the financial year under review has been declined as compared to that of the previous year.

OPPORTUNITIES AND THREATS

OPPORTUNITIES:

• Market Potential-There is lot of scope for improvement, alteration or changing or creating new products. Scope for diversification into other products is very high.

• Exposure to export and domestic markets.

• Exporter-friendly government policies.

• Growing international and domestic markets.

• Growing fashion consciousness globally.

• Comfortable availability of raw materials and other inputs.

• Growing Demand.

THREATS:

• Increase in competition.

• Increase in raw material prices.

• Customer & Geographical concentration.

BUSINESS SEGMENT - TEXTILES

With the help of integrated manpower resources, the Company has acquired an edge over its competitors. The Company has the ability to process multiple deliveries daily and offer real-time information and also provide a range of innovative products to its Customers.

Indian textile industry had played and is playing a significant role in the growth and development of Indian economy.

OUTLOOK

Your Companys future growth is built on two parallel growth drivers, domestic consumption in apparel & branded retail as well as large global opportunity in textiles & clothing world trade. On the whole the outlook for the Company continues to remain positive.

RISKS AND CONCERNS

Textile industry is always subject to facing crisis in a cyclical way. Timely action is needed to overcome this situation by taking corrective and proactive steps, then and there.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an adequate Internal Control System commensurate with its size and operations. Management has overall responsibility for the Companys Internal Control System to safeguard the assets and to ensure reliability of financial records.

Audit Committee reviews all financial statements and ensures adequacy of internal control systems.

DISCUSSIONS ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

No income during the financial year of the Company. Total expenditure of the company in the FY 2025-26 is Rs. 99.68 lacs as compared to Rs. 900.22 lacs in the FY 2024-25. Company faced loss of Rs. 145.11 lacs in the FY 2025-26 as compared to loss of Rs 900.22 lacs for the previous FY 2024-2025.

Earnings per share was Rs. (0.09) (Basic) and (Diluted) stood at in FY 2025-26 as compared to Rs. (0.56) (Basic) and (Diluted) in FY 2024-25.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL RELATION FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The employees are satisfied and having good relationship with the Management.