RSC International Ltd Management Discussions

Report for the Financial Year ended 31 st March, 2026

(A) INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company operates in the textile and fabric sector. The principal objects of the Company, inter alia, permit the Company to carry on the business of manufacturing, processing, buying, selling, importing, exporting, distributing and dealing in yarn, fibers, fabrics, textiles, garments, industrial fabrics and other allied textile products.

The Indian textile and apparel industry is an important sector of the Indian economy, supported by a large domestic consumer base, established manufacturing capabilities and opportunities in domestic as well as international markets. The performance of the industry is influenced by factors such as consumer demand, movement in raw material and fabric prices, availability of working capital, competition, changes in consumer preferences and overall economic conditions.

During the financial year under review, the Company continued to undertake business activities within its permitted objects and remained focused on opportunities relating to fabrics, textiles and allied products. The Company continues to evaluate commercially viable opportunities for strengthening and expanding its business operations.

(B) OPPORTUNITIES AND THREATS OPPORTUNITIES

• Growth in domestic demand for fabrics, textiles and apparel;

• Opportunities in trading, distribution and supply of textile and allied products;

• Scope for expanding the customer and supplier network;

• Opportunities in import and export of fabrics, yarn, fibres and allied textile products;

• Scope for undertaking processing, job-work and other allied textile activities in accordance with the objects of the Company; and

• Opportunities to diversify within the textile value chain and allied activities permitted under the Memorandum of Association.

THREATS

• Volatility in prices of fabrics, yarn and other textile inputs;

• Intense competition and pressure on trading margins;

• Fluctuation in domestic and international demand;

• Working capital and liquidity constraints;

• Credit and counterparty risks;

• Changes in taxation and regulatory requirements; and

• General economic and market conditions affecting the textile sector.

(C) SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

The Company operates in a single business segment and accordingly separate segment-wise information is not required to be reported.

During the financial year under review, the Company continued its activities relating to fabrics/textiles and evaluated opportunities within the textile and allied business permitted under its Memorandum of Association.

(D) OUTLOOK

The Company intends to focus on strengthening its existing operations and exploring commercially viable opportunities in the textile and fabric business.

The Companys Memorandum of Association provides a broad scope within the textile value chain, including manufacturing, processing, trading, distribution, import, export and dealing in fabrics, yarn, fibres, garments and allied textile products. The management will continue to evaluate opportunities within these permitted activities depending upon market conditions, availability of resources and commercial feasibility.

The management remains focused on improving operational performance, managing working capital prudently and pursuing opportunities that may contribute to the long-term growth of the Company.

(E) RISKS AND CONCERNS

The Company is exposed to various business and financial risks including:

• Market demand and price volatility in the textile and fabric sector;

• Working capital and liquidity risks;

• Credit and counterparty risks;

• Competitive pressures and fluctuations in trading margins;

• Regulatory and taxation risks;

• Risks associated with import/export activities, wherever undertaken;

• General economic and market uncertainties; and

• Risk arising from continued losses and erosion in net worth.

The Company endeavours to identify and monitor material risks on an ongoing basis and takes appropriate measures, commensurate with the nature and scale of its operations, to mitigate such risks.

(F) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an internal control framework commensurate with the size, nature and complexity of its operations.

The internal controls are designed to provide reasonable assurance regarding safeguarding of assets, proper authorisation and recording of transactions, reliability of financial reporting and compliance with applicable laws, regulations and internal policies.

The Audit Committee and the Board of Directors periodically review the adequacy and effectiveness of the internal control systems and recommend improvements wherever considered necessary.

(G) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year under review, the Company recorded Total Income of Rs. 9.91 Lakhs as compared to Rs. 156.01 Lakhs in the preceding financial year.

The Company incurred a Loss After Tax of Rs. 31.61 Lakhs during FY 2025-26 as compared to a loss of Rs. 26.10 Lakhs during FY 2024-25.

The Companys financial performance during the year remained subdued. The management continues to focus on strengthening business operations, improving liquidity and identifying suitable business opportunities within the objects of the Company.

(H) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

Human resources continue to be an important asset of the Company. The Company strives to maintain a professional, ethical and healthy work environment and encourages a culture of integrity, teamwork and responsibility.

During the financial year under review, industrial relations remained cordial. The Company continued to focus on maintaining harmonious employee relations and an appropriate working environment commensurate with the nature and scale of its operations.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, expectations, projections, estimates and predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors including economic conditions, market demand, price volatility, liquidity, competition, regulatory changes and other risks beyond the control of the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements.

i. 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 THEREFOR, INCLUDING:

The details of key financial ratios, including significant changes of 25% or more as compared to the immediately preceding financial year and explanations therefor, wherever applicable, are disclosed in the Notes to the Financial Statements forming part of this Annual Report.

ii. DETAILS OF ANY CHANGES IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

The Company incurred losses during the financial year and its net worth as at 31 st March, 2026 was negative. Accordingly, return on Net Worth is not considered meaningful for comparative analysis for the financial year under review.

iii. DISCLOSURE OF ACCOUNTING TREATMENT:

The Company has followed the applicable Indian Accounting Standards in the preparation of its financial statements. No treatment different from that prescribed under the applicable Accounting Standards has been followed during the financial year under review.

CONCLUSION

The Company remains focused on strengthening its business operations, improving financial performance, maintaining prudent risk management and exploring sustainable business opportunities with a view to creating longterm value for its stakeholders.

On behalf of the Board of Directors

For RSC International Limited

Sd/-

Mr. Shailesh Agrawal

Managing Director

DIN:06597393

Date: September 01, 2026

Place: Mumbai