Rushil Decor Ltd Management Discussions

AN ECONOMIC OVERVIEW

Global Economy: The global economic landscape in 2024 was characterised by moderate growth with notable differences across regions. While overall expansion continued, it remained subdued, and the pace of growth varied significantly. Emerging markets remained a key driver of global growth, however these economies faced challenges, including managing inflationary pressures and addressing debt vulnerabilities.

Key factors that shaped the 2024 economic landscape included the ongoing efforts by central banks to manage inflation, strong private consumption in key economies, the potential impact of geopolitical uncertainties on trade and supply chains, and the increasing focus on transitioning to sustainable energy sources.

Consequently, inflation fell significantly. Despite challenges, global trade experienced a notable expansion driven by strong services trade. However, global manufacturing saw modest growth, mainly driven by China.

Outlook: According to the latest World Economic Outlook, global economic growth is projected to remain steady at 3.3% for 2025 and 2026, while inflation is expected to continue decreasing. This growth will likely be supported by an increase in employment and wages, as well as lower interest and savings rates. The labour market is expected to expand, driven by growth in services and manufacturing.

Although the immediate future presents upward economic trend, long-term growth is susceptible to risks. Potential inflation resurgences could hinder planned interest rate adjustments, affecting government finances and financial stability. Moreover, protectionism and tariff wars between major economies may adversely impact the global business outlook.

Source: https://www.imf.org/en/Publications/WEO

WORLD ECONOMIC OUTLOOK APRIL 2025

GROWTH PROJECTS

(REAL GDP GROWTH, PERCENT CHANGE)

EMERGING MARKET &

V /

Indian Economy: Against the backdrop of global uncertainty, India has emerged as a notable outlier. Now the worlds fifth-largest economy, it recorded real GDP growth of 6.5% in the financial year 2024-2025, and over 9% in 2023-2024. At a time when global growth is losing momentum, India is expanding at a pace unmatched by any other major economy.

This growth is supported by a combination of factors, including a notable resurgence in rural demand, which has propelled private final consumption expenditure. Furthermore, the services sector was a significant growth driver. In addition, higher government capital expenditure played an important role in strengthening the countrys economic performance.

There was a considerable moderation in inflation, with retail headline inflation reaching a seven-month low, partly attributed to easing food price pressures, particularly in vegetables. The Reserve Bank of India (RBI) announced a repo rate cut in February 2025, the first in five years, aimed at encouraging borrowing and supporting consumption.

Indias manufacturing has experienced considerable growth amid global economic uncertainties and fluctuating export demands. Data highlighted that the sector led the revival in industrial production, electricity, and mining. Additionally, the cumulative value of Indias external trade recorded healthy growth.

Gross GST collections increased significantly compared to the previous year, reflecting increased economic activity, stronger consumer spending, and a potential revival of the economy.

Outlook: The economic outlook for India in FY26 appears favourable, as Fitch forecasts a GDP growth of approximately 6.5%. This growth is expected to be driven by increased government capital expenditure dedicated to infrastructure development and tax reductions aimed at enhancing disposable income for middle-class consumers. Furthermore, inflation is anticipated to decrease, thereby providing opportunities for additional interest rate cuts. Rising private and public investments are likely to support growth momentum. However, volatility in food prices and global geopolitical risks may impact the overall growth trajectory.

IMPACT ON INDIA DUE TO A SLOWDOWN IN THE U.S. ECONOMY

A report by Goldman Sachs highlighted that Indias economy is less exposed to a slowdown in the US when compared to other countries, mainly because of Indias lower trade dependency. Indias merchandise exports make up around 12% of its GDP, whereas in China it is 19%, and in Vietnam it is as high as 82%. This helps shield the Indian economy from the full impact of any economic slowdown in the US.

Sources

https://www.imf.org/en/Countries/IND

https://www.indiabudget.gov.in/economicsurvey/doc/

Infographics%20English.pdf

https://pib.gov.in/PressReleasePage.aspx?PRID=2097919

https://economictimes.indiatimes.com/news/economy/

indicators/indian-economy-less-exposed-to-slowdown-

in-us-but-stock-markets-of-both-countries-show-correlation-

aoldman-sachs/articleshow/120477075.cms?from=mdr

Indian Furniture Industry

The Indian furniture market includes movable items for sitting, sleeping, and storage, such as chairs, tables, beds, couches, and cabinets. Furniture design affects comfort and functionality, making interior design and home decor crucial.

The Indian furniture industry has experienced significant growth over the past decade, driven by changing customer preferences and favourable macroeconomic factors. It has established itself as a key player in the global market.

KEY HIGHLIGHTS OF THE INDIAN FURNITURE INDUSTRY

1) Local conditions

India possesses a rich heritage of craftsmanship and traditional furniture-making, which has led to increased interest among consumers in handcrafted pieces. Individuals are re-examining the artistry and meticulous detail that characterise these creations. This movement is driven by a desire to support local artisans and preserve traditional art forms.

2) Customer preferences

?€? Indian consumers are increasingly seeking furniture that balances functionality with aesthetic appeal. They have a preference for modern and contemporary styles that reflect their distinctive preferences and tastes.

?€? Significant emphasis is placed on sustainability, accompanied by a rising inclination towards eco-friendly materials and practices. While wood remains a fundamental component, constituting 62% of production, the industry is also adopting innovation and technological advancements.

?€? Western cultural influences have transformed furniture preferences, with urban households favouring multifunctional and space-efficient designs appropriate for compact living environments.

3) Underlying macroeconomic factors

?€? The rapid urbanisation, along with the rise of e-commerce in India, has transformed consumer behaviour in the furniture market. As metropolitan cities expand, urban consumers are increasingly seeking modern residential furniture that aligns with their lifestyle aspirations.

?€? The furniture rental industry in India is experiencing significant growth, driven by urbanisation, rising mobility, and cost-conscious consumers.

?€? The growing middle class and rising disposable incomes have further driven investments in high-quality, functional, and aesthetically appealing furniture.

?€? Indias real estate sector plays a crucial role in boosting furniture demand. The implementation of

the Real Estate Regulatory Act (RERA) has enhanced transparency and improved investor confidence, supporting growth in the housing market.

?€? The expansion of retail, hospitality, and healthcare sectors has increased the demand for contract furniture, while government-backed business reforms have led to increased demand for office furniture.

?€? India is actively pursuing export opportunities, aiming for a 20% annual growth rate in furniture exports, reflecting its aspiration to strengthen its position in the global market.

?€? Events such as INDIAWOOD 2025 play a vital role in highlighting the growth of Indias furniture industry. This trade fair serves as a platform for technology and product launches, knowledge sharing, and for the development of strategic partnerships.

4) Technological innovation

Integrating AI-driven automation, precision CNC systems, and smart manufacturing solutions transforms production processes and enhances efficiency and quality.

Furthermore, several advantageous factors supports the industrys future growth, including a skilled workforce, abundant raw materials, rising global demand, and Indias strong economic performance. Together, these elements create a supportive environment for the continued expansion of the furniture sector.

OUTLOOK

India Furniture Market

Market Size in USD Billion

CAGR 7.62%

As of 2024, the market was valued at approximately USD 23.8 billion and is projected to reach USD 25.75 billion by 2025. This upward trajectory is expected to continue, with forecasts predicting the market will reach USD 37.18 billion by 2030, reflecting a CAGR of 7.63% from 2025 to 2030.

Source

https://www.mordorintelligence.com/industrv-reports/

india-furniture-market?utm

Indian Plywood Market

Plywood is construction material made by bonding thin layers of wood veneer together with a strong adhesives. It can be made from softwoods and hardwoods or a combination of both, using species such as maple, mahogany, oak, pine, cedar, spruce, and teak. Plywood is commercially available in various

types, including tropical, aircraft, decorative, flexible, and marine plywood. Plywood is characterised by its versatility, allowing it to seamlessly integrate with the aesthetics of any interior design. Furthermore, it is a cost-effective and factory-manufactured sheet of wood that possesses precise dimensions and does not warp or sustain damage due to fluctuations in atmospheric moisture.

Plywood is widely used in Indias construction sector as a durable material for walls, flooring, and roofing. It also plays a key role in furniture manufacturing, offering strength and versatility for applications such as cabinets, tables, and decorative elements. Beyond construction and furniture, plywood is essential in various industrial uses, including packaging, transportation, and infrastructure projects.

The plywood industry in India is distinguished by a combination of organised and unorganised participants. The unorganised sector maintains a significant market share, largely attributable to the presence of numerous small-scale manufacturers and minimal entry barriers. Conversely, the organised sector is anticipated to gain momentum throughout the forecast period, driven by the implementation of advanced technologies and rigorous quality control measures.

Report Attribute	Key Statistics
Base Year	FY 2024-25
Forecast Years	FY 2025-26 to FY 2033-34
Historical Years	FY 2019-20 to FY 2024-25
Market Size in FY 2024-25	INR 235.1 Billion
Market Forecast in Fy 2033-34	INR 387.9 Billion
Market Growth Rate FY 2025-26 TO FY 2033-34	5.44%

GROWTH DRIVERS

?€? The growing presence of distribution networks and exclusive outlets by premium furniture manufacturers is one of the key factors positively impacting the Indian furniture market.

?€? The rising integration of technologically advanced production methods for manufacturing plywood with enhanced features, such as flexible plywood, is driving market expansion.

?€? The growing application of plywood for constructing partitions and false ceilings in residential and commercial spaces is contributing to a positive market outlook in India.

?€? The expanding utilisation of plywood to produce various easy-to-assemble and lightweight furniture items further supports market growth.

?€? The surging production of diverse do-it-yourself (DIY) projects utilising plywood, which can be readily drilled, shaped, and cut to meet specific requirements, continues to support the growth of Indias plywood market.

?€? The increasing number of government housing schemes and infrastructural projects, in conjunction with rising urban settlements throughout the country, reinforces market growth.

?€? The increasing renovation and infrastructure development activities among homeowners, combined with the growing preferences of individuals to incorporate distinctive accents into their interior designs, are catalysing the demand for plywood in India.

KEY MARKET TRENDS

?€? Rising demand for marine plywood, valued for its water-resistant properties suitable for marine applications like boat building and decking.

?€? The growing popularity of modular furniture, modular kitchens, customised furniture and easy-to-assemble furniture has contributed to the markets upward trajectory.

https://www.imarcgroup.com/indian-plywood-

market#:~:text=The%20India%20plywood%20market%20

size,26%20to%20FY%202033%2D34

Indian MDF Market

MDF (Medium-density fibreboard) is a versatile, engineered wood product commonly used for furniture, cabinetry, flooring, decorative projects, and other indoor applications due to its smooth surface, flexibility, affordability, and ease of modification, and it is well-suited for contemporary furniture design and interior uses. Moreover, it has lower structural defects as compared to plywood, which is produced in a labour-intensive environment.

The Indian MDF market has been experiencing strong growth, driven by increasing demand in the furniture and interior decor sectors, rapid urbanisation, and a shift towards cost-effective and sustainable wood alternatives. Additionally, MDF is used in sports equipment and shoe heels applications, which are growing significantly.

Growth driver: The expansion is primarily driven by the growing furniture industry, where MDF is preferred for its versatility, cost-effectiveness, and ease of customisation. Additionally, the rise of modular and ready-to-assemble furniture has further accelerated MDF consumption in India.

Technological advancements in manufacturing have enhanced the quality and moisture resistance of MDF, therefore broadening its applications in both residential and commercial construction projects. Government initiatives promoting affordable housing and infrastructure development have also contributed to the increased adoption of MDF products.

Challenges: Despite its growth, the Indian MDF market faces challenges, including competition from imported MDF and the need for continuous technological innovation to meet evolving consumer demands. However, with favourable government policies, a growing emphasis on sustainable building materials, and ongoing advancements in MDF production, the market is well-positioned for sustained growth in the coming years.

Government initiatives: The government has been actively working to build a strong quality ecosystem in India, with a clear focus on promoting high-quality, safety-compliant products. The Department for Promotion of Industry and Internal Trade

(DPIIT) recently introduced quality control orders (QCO) for plywood, MDF boards, and other wooden products to increase domestic manufacturing and cut imports of sub-standard goods. The industry is supporting these regulations to ensure better quality and compliance. As a result, this initiative strengthens the Indian Medium Density Fibreboard market by boosting consumer confidence, raising demand for compliant products, and promoting growth in organised sectors.

Outlook: The domestic market was valued at approximately USD 1.28 billion in 2024 and is projected to reach USD 2.55 billion by 2033, indicating a CAGR of 7.32% over the forecast period. MDF export volumes also grew significantly in FY25, with price realisations improving.

Source

https://www.imarcgroup.com/india-medium-density-fiberboard-

market?utm

Indian Laminates Market

India is the worlds leading manufacturer of laminates, recognised for its high-quality and cost-effective production. The Indian laminate market is experiencing steady growth, driven by increasing demand for decorative and durable surfacing solutions in residential and commercial spaces.

This demand is primarily influenced by various textures, patterns, and finishes, including wood, marble, and metallic designs. Also, owing to their versatility and affordability, consumers increasingly prefer decorative laminates for furniture, flooring, and wall panelling.

In 2024, the market was valued at approximately USD 2.20 billion and is projected to reach USD 3.10 billion by 2033, reflecting a 3.8% CAGR during the forecast period.

Growth driver

?€? This growth is driven by rapid urbanisation and the expanding real estate sector, which have led to higher demand for aesthetically appealing and durable interior materials.

?€? The Indian furniture market, the largest consumer of laminates, remains strong and is expanding rapidly, driven by rising disposable incomes and a growing number of middle-class individuals within society. Additionally, the countrys furniture rental sector is also contributing to this growth.

?€? The furniture industry continues to be a key driver of the laminates market. The rising demand for new office construction is expected to further boost growth, as there is an increased requirement for corresponding furniture products.

?€? The increasing demand for office spaces, driven by growth in the information technology (IT) sector and the banking, financial services, and insurance (BFSI) segments, has further strengthened the need for high-quality laminates in office furniture and interior applications.

Defining Trends

?€? A notable trend in the market is the growing preference for antimicrobial and fire-resistant laminates. Rising awareness of hygiene and safety standards has led to increased adoption of laminates that prevent microbial growth and offer enhanced fire resistance, particularly in healthcare, hospitality, and commercial establishments.

?€? The introduction of big-sized laminates marks a significant product diversification for the industry, enabling access to key international markets, including Europe, the USA, and Australia.

?€? Sustainability concerns are also influencing market dynamics, with a shift towards eco-friendly laminates produced using low-emission resins and recycled materials. Manufacturers are responding by investing in greener production processes and materials to meet this evolving consumer preference.

Source

https://www.imarcgroup.com/india-laminates-market?utm

Indias laminate flooring market

India Laminate Flooring Market

Market Size in USD Billion

CAGR6%

USD 75.18 B

2025 2030

Laminate flooring is defined as a multi-layer synthetic flooring product, which consists of a wear layer, design layer, core layer, and backing layer that are secured together through the process of lamination. The uppermost layer is typically composed of melamine and aluminium oxide, which endows the laminate board with surfaces resistant to scratches and moisture.

A significant factor contributing to market growth is the swift expansion of the construction industry. The phenomena of urbanisation, industrialisation, and evolving lifestyles have led to an increase in construction activities within emerging nations such as India. Increasing environmental concerns regarding the utilisation of timber, alongside new technological innovations, are anticipated to further stimulate demand in the forthcoming years.

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RUSHIL DECOR LIMITED 31 st ANNUAL REPORT 20 24-25

OPPORTUNITIES AND THREATS OPPORTUNITIES

Growth in Real Estate and Infrastructure

Real estate expansion, including smart cities and affordable housing, presents a significant growth opportunity. The increasing use of laminates and MDF in modern interiors is expected to drive demand. By strengthening its focus on institutional sales across hospitality, corporate offices, malls, and educational institutions, Rushil Decor can further diversify its revenue streams.

Coworking spaces on the rise

Co-working spaces in India are set to expand in 12-24 months due to rising demand from startups, global capability centres (GCCs), and IT/ITeS. This demand stems from the need for flexibility and cost optimisation. A recent Avendus report projects Indias flexible workspace market will reach 126 million square feet (MSF) by 2028, up from 61 MSF in 2023.

Growing Modular Furniture Industry

The growing demand for modular furniture and RTA solutions offers increased sales opportunities. With urbanisation and evolving lifestyles, consumers prefer space-saving, stylish furniture. Rushil Decor can partner with modular brands, e-commerce sites, and B2B suppliers to capture this market.

Rising Demand for Prefabricated Construction

The use of engineered wood in prefabricated and modular construction offers growth opportunities. MDF and laminates are widely used in wall panelling, partitions, and ceilings. Rushil Decor can enhance its market presence by providing durable, cost-effective, and aesthetic solutions.

Innovation and Technological Advancements

Investing in advanced manufacturing and product innovation offers a competitive edge. High-pressure laminates (HPL), antibacterial surfaces, and digital printing are gaining traction. Developing fire-retardant and water-resistant MDF can cater to premium markets like healthcare and commercial infrastructure.

Rising Demand for Sustainable Products

Rushil Decor can expand its eco-friendly portfolio by offering E0/ E1 grade MDF, recyclable laminates, and FSC-certified materials. Stricter regulations and consumer awareness can strengthen the brand and attract more customers through sustainable production and marketing efforts.

Brand Building and Retail Expansion

Strengthening distribution and expanding showrooms can help Rushil Decor reach more consumers. The demand in Tier-2 and Tier-3 cities for affordable home decor presents an opportunity for a stronger presence. Investing in digital marketing, influencer partnerships, and customer engagement can increase brand recognition and sales.

THREATS

Fluctuations in Raw Material Prices

The industry relies on wood fibre, resins, and chemicals. Fluctuations in their costs from supply chain issues, inflation, or

policy changes affect production costs. Additionally, global factors like rising fuel and transportation costs can increase expenses and impact profitability.

Regulatory and Environmental Challenges

Stricter regulations on deforestation, carbon emissions, and formaldehyde in MDF challenge manufacturers. Meeting global and domestic standards requires regular investment in sustainable practices and eco-friendly alternatives. Non-compliance risks legal penalties, reputational damage, and export restrictions to eco-conscious markets like Europe and North America.

Economic Slowdowns and Market Volatility

Economic downturns, inflation, and slowdowns in real estate can significantly impact laminate and MDF demand. As the industry is closely tied to housing, construction, and interior design, any decline in these segments may lead to lower sales and revenue.

Threat from Substitute Products

Alternative materials like PVC boards and engineered stone threaten traditional laminates and MDF. Consumers desire durable, low-maintenance, cost-effective options, potentially shifting demand from MDF.

Changing Consumer Preferences and Technological Disruptions

As digitalisation and e-commerce expand, businesses must evolve to stay competitive. Customers demand personalised, well-designed, and digitally printed solutions that enhance their shopping experience.

Corporate Overview

Rushil Decor Limited ("RDL" or "the Company") stands as a prominent entity in Indias laminates and MDF boards industry, with a strong global footprint spanning over 56 countries.

Founded in 1993, RDL has built a strong reputation as a trusted partner in the international market. By combining technical expertise with artistic innovation, the Company creates products that are intricately designed and reflects exceptional craftsmanship.

RDLs offers a comprehensive portfolio of decorative and industrial laminates specifically tailored for residential and commercial applications. With a laminate collection featuring over 1,200 designs, the Company has established itself as a market leader in the laminate segment. Within the Indian MDF boards sector, RDL ranks among the top five manufacturers. This accolade is further reinforced by its diverse portfolio of well-established brands, which includes Decorative Laminates, MDF Board, PVC, and STUDDIO. Each brand carries a unique identity, enhancing RDLs dynamic presence within the industry.

Manufacturing Facilities

RDL is a prominent manufacturer of decorative laminated sheets and MDF boards, which are supported by advanced manufacturing facilities strategically situated in Gujarat, Visakhapatnam, and Chikkamagaluru. The Companys facility in Gujarat has a substantial

laminate production capacity of 34.93 lakh sheets annually. Company has also commenced commercial production of Jumbo sized Laminated Sheets in Phase 1 with an initial installed capacity of 1.2 million sheets per annum. Its units in Karnataka and Andhra Pradesh possess MDF board production capacities of 90,000 cubic meters and 2,40,000 cubic meters annually, respectively. A wide network of branches, distributors, and dealers across India complements RDLs large-scale production and advanced technology, ensuring efficient distribution to all key consumption markets nationwide.

SEGMENTAL PERFORMANCE

Details	Laminate Sheets		MDF Boards
	2023-24	2024-25	2023-24	12024-25
Revenue from Operations	190.58	201.77	633.33	673.38
Profit before Interest and Tax	17.79	19.46	77.12	68.25

KEY DEVELOPMENTS IN 2024-25 1. Issue of Convertible Share Warrants

Company issued 41,30,000 convertible share warrants in the FY 2023-24 at the rate of Rs. 297 per warrant. Company received 25% money at the time of allotment of the warrant. The warrant holders were required to pay the balance 75% amount within 18 months from the date of allotment of the warrants i.e. on or before 22.06.2025. Company has received balance 75% amount on 28,00,000 warrants and allotted total 2,80,00,000 equity shares of Rs. 1 each. Company has forfeited 25% amount for 3,30,000 warrants due to non-receipt of balance 75% amount on or before due date of conversion. Further, there was an order of "Status Quo" from the Securities Appellate Tribunal in respect of one of the Warrant holders namely Vespera Fund Limited. Accordingly, Company could not allot the Equity Shares or forfeit the Warrant of the said warrant holder. Thus, Company has received total Rs. 93.03 Crores from the issue of convertible warrants.

2. Started the commercial production in Jumbo size laminated sheet project

Company has started the Commercial Production from the month of April, 2025 ofPhase 1 at its newly set-up manufacturing plant at Village Itla, Near Kalyanpura Patia, Gandhinagar Mansa Road, Tal. Mansa, District Gandhinagar, Gujarat focused on the production of Jumbo size laminate sheets.

The aforesaid Unit has been set up for the production of Jumbo Size Laminate Sheets with a capacity of about 1.2 Million sheets (if considered as 1 mm sheet) per annum at Phase 1. This will enable the Company to tap into the growing demand for thicker format decorative laminates. This facility is projected to strengthen the companys position in the expanding in global Jumbo Laminate Market which aimed primarily to mark its presence in the export market, especially the developing and developed countries.

3. Incorporation of Wholly Owned Subsidiary at Singapore

Company has incorporated a Wholly Owned Subsidiary (WoS) Company in Singapore in the name of "Rushil Decor Pte. Ltd." This move aims to strengthen companys presence in the global market and expand its reach into Southeast Asia Region. The WoS Company will focus on the import, export and distribution of a wide range products, including laminated sheets, MDF boards, HDF boards and other allied products. This new entity will cater to the increasing demand for high-quality and sustainable wood panel products and enhance Rushil Decors service capabilities in Singapore and the surrounding markets.

The establishment of this subsidiary reflects Rushil Decors proactive steps to capture growth opportunities in the dynamic Southeast Asian market. With Singapore serving as a central hub, the subsidiary is set to support streamlined distribution, enhance customer service capabilities and strengthen the Companys brand presence across the region. This move will allow the company to optimize its supply chain, providing high-quality laminates to clients in a timely and cost-effective manner.

	(Rs. in c	.rore except eps)
Details	2024-25	2023-24
Revenue from operations	891.34	843.97
Profit before Tax	62.96	61.27
Profit after Tax	48.30	43.11
Earnings per Share (EPS) (Basic)	1.77	1.68
Non-Current Liabilities	216.52	232.91
Current Liabilities	380.72	323.73
Equity Share Capital	28.68	26.54
Other Equity	604.10	516.24
Total Equity	632.78	542.78
Total Equity and Liabilities	1230.02	1099.42

ACCOUNTING TREATMENT

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS), thereby ensuring complete compliance with the established accounting guidelines. There were no deviations from these standards in the preparation of the financial statements.

KEY FINANCIAL RATIOS

Sr. No	Ratios	2024-25	2023-24	Change(%)
1.	Debtors Turnover (in times)	4.98	5.80	(14.07)
2.	Inventory Turnover (in times)	3.84	4.10	(6.39)
3.	Current Ratio	1.30	1.33	(2.11)
4.	Debt-to-Equity Ratio	0.42	0.54	(22.53)
6.	Net Profit Margin (%)	5.42	5.11	6.10
7.	Return to Equity (%)	8.22	9.51	(13.63)
8.	Creditors Turnover (in times)	3.75	4.79	(21.69)
9.	Debt Service Coverage Ratio	1.34	1.22	9.25
10.	Return on Capital Employed	9.37	10.74	(12.83)

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

RDL has instituted comprehensive policies and procedures to ensure effective internal financial control, thereby facilitating the orderly and efficient operation of its business. These measures encompass strict compliance with company policies, the safeguarding of assets, the prevention and detection of fraud and errors, the maintenance of accurate and complete accounting records, and the timely preparation of reliable financial information.

The Companys control systems undergo regular reviews by Management and Internal Auditors, revealing no significant changes. Furthermore, RDL has enacted various policies and procedures to protect its interests, subject to periodic review. A structured reporting mechanism is established to identify and rectify any deviations from these policies and procedures.

HUMAN RESOURCE

RDL considers its workforce to be its most crucial asset and reaffirms its dedication to universal human rights. The Company prioritises employee well-being and retention by making substantial investments in continuous training and team-building initiatives. It is committed to cultivating a positive work environment that promotes work-life balance.

RDL guarantees a workplace that affords safety, hygiene, and respect for employee dignity. The Company rigorously adheres to

its corporate policies and complies with all relevant laws, including the human rights provisions enshrined in the Constitution of India and national regulations. As of March 31, 2025, RDL employed approximately 850 permanent staff members.

RISK MANAGEMENT

As the business continuously evolves in response to the shifting market context, the identification, evaluation, and management of risks stand as one of the companys foremost priorities. Rushil Decor has instituted a robust risk management committee tasked with overseeing and implementing risk mitigation strategies. The risk management framework is constructed to align with the Companys business requirements while maintaining simplicity and practicality.

CAUTIONARY STATEMENT

The Management Discussion and Analysis Report includes statements that pertain to the Companys objectives, projections, estimates, and expectations. It is important to note that these statements may be considered forward-looking under applicable laws and regulations. It must be understood that the actual results may differ from what is either explicitly expressed or implied in these statements. Various factors can significantly impact the Companys performance, such as economic developments within the country, demand and supply conditions in the industry, changes in Government regulations, tax laws, as well as other factors, including litigation and industrial relations.