Shangar Decor Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT </dhhead>

Industry sources and publications generally state that the information contained therein has been obtained from sources generally believed to be reliable, but their accuracy, completeness and underlying assumptions are not guaranteed and their reliability cannot be assured and accordingly, investment decisions should not be based on such information.

GLOBAL ECONOMIC OUTLOOK

Global growth is projected at 3.0 percent for 2026 and 3.4 percent for 2027, broadly unchanged cumulatively from the April 2026 World Economic Outlook. The outlook is uneven: The war shock is weighing on energy importers and vulnerable economies, while AI-driven demand is lifting countries integrated into the global technology value chain.

Global disinflation has stalled. Risks are more balanced than in April, but downside risks from renewed conflict and financial market repricing persist. Policymakers should preserve price stability, rebuild fiscal space, and strengthen adaptability.

INDIAN ECONOMIC OUTLOOK

Indias real GDP growth for fiscal year 2026 is estimated at 7.4% according to the Economic Survey of India, with other forecasts ranging from 6.5% (S&P Global, Crisil) to 6.9% (Goldman Sachs, ADB). Growth moderation is expected in FY2027, projected between 6.5% and 6.9% reflecting global uncertainties and external shocks. Strong domestic consumption, rising private investment, and public capital expenditure remain the primary growth drivers.

Indias economic outlook for 2025 and 2026 remains one of the brightest among major global economies, as highlighted by the IMF. Despite global uncertainties and downward revisions in growth forecasts for other large economies, India is set to maintain its leadership in global economic growth. Supported by strong fundamentals and strategic government initiatives, the country is well-positioned to navigate the challenges ahead. With reforms in infrastructure, innovation, and financial inclusion, India continues to enhance its role as a key driver of global economic activity.

INDUSTRY OVERVIEW OF THE PRODUCTS, WE DEAL IN:

The global MICE market is projected to reach USD 1342.18 billion in 2026, with a CAGR of 10.86% over the forecast period. Europe is expected to dominate the market with a significant share, while Asia pacific and the U.S. are also projected to grow rapidly. The market is driven by the rise in globalization, business tourism and the expansion of international customer reach.

Indias MICE market is projected to reach a value of USD 184.8 billion by 2034 with a CAGR of 5.04% during 2026-2034. The market is expected to grow from USD 116.00 billion in 2025 to USD 124.70 billion in 2026. This growth is driven by government initiatives, large-scale infrastructure projects, rising corporate demand, global event hosting and improved connectivity across major cities. The Indian MICE Market is expected to cross Rs. 35000-40,000 crore, with domestic events accounting for nearly 70% of total activity. Exhibitions and conference remain the fastest growing segments, generating significant tourism revenues, employment opportunities and destination branding benefits across the country.

OPPORTUNITIES AND THREATS:

Opportunities:

Good Brand Image: Company has a good brand image and quality Services in the Indian market.

Wide Service range: Company has very wide service coverage for social and cultural events.

Superiority over its competitors: Company remains eager in providing latest designs and Service to its customers.

Online Services: Company provides Online Services to its Customer. The company will take effective steps to take benefit of this opportunity.

Expand Market Network: The Company continues to expand its marketing networks by appointing Consignment Agent, branches, distributors, dealers etc. in various states in all over the country.

Threats:

High Competition Era: The Decor Industry has entered into the orbit of the high competition. The market fights are set to intensify with unstoppable capacity build up. The Competition from both unorganized and other organized players, leading to difficulties in improving market share.

Manpower: The one of the common problems emerged for finding talent with competence or even skilled man power for Decor industries irrespective of the company Brand or Size.

Under cutting of price: Due to high competitions in market, the competitors are doing price cutting of Services to compete or keep their existence in markets which is ultimate big problems for the industries.

New Entrance: More and more new organized players are entering into market which will increase competition in organized sector also.

ACCOUNTING TREATMENT:

In the preparation of financial statements, no different treatment from that prescribed in an Accounting Standard has been followed.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company practices an internal control system which ensures proper handling and management of its assets. The internal control system of the Company is geared towards achieving efficiency in operations, effective monitoring and compliances with all applicable laws and regulations. The Company regularly conducts internal audit programs. The internal control department of the Company functions under the guidelines of the Audit Committee of the Company. The Company regularly reviews the adequacy and effectiveness of the internal control system and suggests improvement for strengthening them.

OPPORTUNITIES, RISKS AND CONCERNS:

While the domestic and International economic conditions continue to remain challenging and are expected to remain for some more time, we expect that with new line of business and expanding demand for the Renewable Energy and Tungsten based products, the Company will be in a position to gradually expand its turnover and profitability from manufacturing and trading activities.

The Company has framed a risk management team which constantly monitors the Indian and international markets and guides the management of any sort of prevailing risk to the company. The risk management team plays a major role here. The management is regularly keeping watch on the domestic and international trade policy and commodities prices also.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS FRONT:

As the Company did not perform well during last couple of years, the company does not strength in the staff. However, as the Company grow in the new line of business, the focus has been on enhancing morale and capabilities of employees. The staff and workers will be provided orientation and training for the development of soft and hard skills on a regular basis. Efforts are made to improve the performance, providing work satisfaction and performance based increments, safety and social status. The Company shall make regular efforts to maintain relation with Stakeholders by transparency, good governance, regular communication and effective transactions.

ENVIRONMENT AND SAFETY:

The Company is committed to comply with the statutory requirements related to environment, health, safety and to prevent pollution through continuous improvement in processes, practices and EHS awareness. Your Company not only cares for compliances is this aspect but also contributes towards society health, safety and green environment.

FINANCIAL PERFORMANCE:

Particulars	Financial Year 2025-26	Financial Year 2024-25
Revenue from Operations	2326.07	1858.45
Other Income	0.57	0.51
Total Revenue	2326.84	1858.95
Total Expenses	1792.84	1731.41
Profit/Loss before Depreciation, Exceptional and Extra Ordinary Items and Tax Expenses	533.80	265.33
Depreciation Interest	320.24	137.79
Less: Exceptional and Extra Ordinary Items	-	-
Profit/Loss before Tax Expenses	208.33	127.54
Less: Current Tax	54.92	44.45
Deferred Tax	5.96	2.20
Prior period tax	-	-
Profit/Loss for the Period	147.46	80.90
Earnings Per Share (EPS) Basis	0.03	0.02
Diluted	0.03	0.02

CAUTION STATEMENT:

Statements made in the Management Discussion and Analysis describing the various parts may be forward looking statement within the meaning of applicable securities laws and regulations. The actual results may differ from those expectations depending upon the economic conditions, changes in Govt. Regulations and amendments in tax laws and other internal and external factors.

Date: 08.09.2026Place: Ahmedabad

For, Shangar D?cor Limited

Sd/-Samirbhai ShahSamirbhai ShahExecutive Director & CFODIN: 00787630DIN: 01601299

Reg. office: 4 Sharad Flats,Opp. Dharnidhar TempleAhmedabad - 380007