Shashank Traders Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

GLOBAL ECONOMIC OVERVIEW

The global economy remained resilient during FY 2025-26 amid continued geopolitical tensions, elevated trade policy uncertainty, tariff-related developments, varying inflationary pressures and changing financial conditions. According to the International Monetary Funds World Economic Outlook, global growth was projected at 3.0% in 2025 and 3.1% in 2026, supported by stronger-than-expected activity in certain economies, improvements in financial conditions and fiscal measures in some major jurisdictions.

Growth across advanced economies was projected at 1.5% in 2025 and 1.6% in 2026, while emerging market and developing economies were expected to grow by 4.1% in 2025 and 4.0% in 2026. Among major economies, the United States was projected to grow by 1.9% in 2025 and 2.0% in 2026, while the Euro Area was expected to grow by 1.0% in 2025 and 1.2% in 2026.

The global economic outlook continued to be influenced by trade policy developments. Elevated tariff-related uncertainty, potential changes in effective tariff rates and geopolitical tensions posed downside risks to global growth and could affect international trade, investment and supply chains. At the same time, improved financial conditions, easing inflationary pressures and progress in trade negotiations could support global economic activity.

Global trade activity remained relatively strong during the first quarter of 2025, supported by front-loading of trade and investment in anticipation of potential tariff increases. However, such front-loading was expected to unwind in subsequent quarters, with the associated payback potentially weighing on global activity during 2026. World trade volume was accordingly projected to moderate in 2026.

Global inflation was expected to continue its downward trend, with headline inflation projected to decline from 4.2% in 2025 to 3.6% in 2026. However, inflationary trends remained divergent across economies, with inflation expected to remain above target in the United States through 2026, while inflationary pressures were expected to be more subdued in several other major economies.

Overall, the global economic environment during FY 2025-26 remained characterised by moderate growth, easing inflation and improved financial conditions, but continued to face risks arising from trade restrictions, geopolitical tensions, fiscal pressures and volatility in global financial markets. The global outlook will continue to depend on the evolution of trade policies, inflation, financial conditions and geopolitical developments.

INDIAN ECONOMIC OVERVIEW

The Indian economy continued to demonstrate resilience and strong growth momentum during FY 2025-26, supported by robust domestic consumption, sustained investment activity, improving infrastructure, and continued expansion of the services sector. According to the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI), Indias Real GDP at constant prices is estimated to have grown by 7.6% during FY 2025-26, compared with 7.1% in FY 2024-25. Nominal GDP at current prices is estimated to have grown by 8.6% during FY 2025-26. Real Gross Value Added (GVA) is estimated to have increased by 7.7%, reflecting broad-based economic activity across major sectors.

The growth momentum was supported by the services sector, which remained a key contributor to economic expansion. Financial, real estate and professional services, along with public administration, defence and other services, continued to record strong growth. The trade, hotels, transport, communication and services related to broadcasting segment also remained resilient, reflecting sustained domestic demand and increasing economic activity.

The secondary sector continued to contribute meaningfully to economic growth, with manufacturing and construction activity maintaining healthy momentum. Manufacturing and construction were estimated to grow by around 7.0% at constant prices during FY 2025-26. The agriculture and allied sector also recorded growth, although at a more moderate pace, while electricity, gas, water supply and other utility services witnessed comparatively slower growth.)

Domestic consumption remained an important pillar of economic growth. Real Private Final Consumption Expenditure (PFCE) was estimated to grow by 7.0% during FY 2025-26, supported by improving purchasing power, moderating inflation, stable employment conditions and increasing consumer confidence. Gross Fixed Capital Formation (GFCF) was estimated to grow by 7.8% at constant prices, reflecting continued investment in infrastructure, capacity creation and productive assets.

Indias economic fundamentals continue to be supported by favourable demographics, rising urbanisation, increasing digital penetration, improving financial inclusion and a growing middle-income consumer base. The Economic Survey 2025-26 also highlights the continued strengthening of domestic economic activity, investment, infrastructure and services as important drivers of Indias medium-term growth prospects.

The overall economic environment therefore remains favourable for businesses operating in consumer-facing and retail- related sectors. Rising disposable incomes, increasing urbanisation, changing lifestyles and greater access to digital commerce are expected to support consumption-led growth over the medium to long term.

INDUSTRY OUTLOOK

Indian Retail Industry

The Indian retail sector continued to expand during FY 2025-26, supported by rising consumer spending, increasing disposable incomes, rapid urbanisation, digital adoption and changing consumer preferences. The sector is increasingly transitioning from traditional retail formats towards organised retail, e-commerce, quick commerce, direct-to-consumer (D2C) models and omnichannel retail.

According to the India Brand Equity Foundation (IBEF), Indias retail sector is projected to exceed US$ 2.36 trillion by 2030, compared with approximately US$ 1.09 trillion in 2025, while organised retail is expected to account for more than 35% of the overall market by 2030. The expansion of organised retail is being supported by rising disposable incomes, urbanisation, increasing consumer aspirations and the formalisation of retail activity.

E-commerce continues to be one of the fastest-growing segments of the retail ecosystem. Indias online retail market is projected to expand substantially in the coming years, supported by increasing internet penetration, digital payments, wider smartphone adoption, improving logistics infrastructure and growing acceptance of online shopping. The growth of quick commerce and D2C brands is also reshaping consumer buying behaviour, particularly in urban and emerging markets.

The retail sector is also witnessing increasing expansion beyond metropolitan cities. Tier-II and Tier-III cities are emerging as important consumption centres, supported by rising incomes, improved connectivity, digital payments and greater availability of branded products. This expansion is creating opportunities for retailers to reach new customer segments and develop differentiated distribution and retail formats.

Retail infrastructure is simultaneously expanding. Retail leasing across Indias major cities remained strong, with approximately 8.9 million square feet of retail leasing recorded across the top seven cities during 2025, while significant additional retail space is expected to become operational during 2026. This reflects continued confidence in Indias consumption and organised retail opportunity.

GROWTH DRIVERS

The key factors expected to support the growth of Indias retail sector include:

• Favourable Demographics: Indias large and relatively young population, expanding middle-income segment and increasing urbanisation provide a strong consumer base for retail businesses.

• Rising Disposable Income: Improving household incomes and purchasing power are supporting higher expenditure on discretionary, lifestyle and branded products.

• Changing Consumer Preferences: Consumers are increasingly seeking convenience, quality, product variety, competitive pricing and enhanced shopping experiences.

• Digital Transformation: Increasing internet and smartphone penetration, digital payments and e-commerce adoption are enabling retailers to reach customers across geographies.

• Growth of Tier-II and Tier-III Cities: Smaller cities are emerging as important growth markets for organised retail, D2C brands and e-commerce.

• Omnichannel Retail: Integration of physical stores with online platforms is enabling retailers to provide customers with greater convenience and wider product access.

• Quick Commerce and D2C Models: Rapid delivery models and digitally native brands are creating new consumption patterns and expanding the addressable retail market.

• Supportive Government Policies: FDI reforms, digital infrastructure, financial inclusion initiatives and measures aimed at improving the ease of doing business continue to support investment and formalisation in the retail sector.

• Digital Payments and Financial Inclusion: The rapid adoption of UPI and other digital payment systems is facilitating seamless transactions and supporting the formalisation of retail commerce.

OUTLOOK

The outlook for the Indian retail sector remains positive, supported by sustained economic growth, increasing consumer spending, rising digital adoption and the continued expansion of organised retail. The convergence of physical and digital retail, growth in e-commerce and quick commerce, increasing penetration into Tier-II and Tier-III markets and evolving consumer preferences are expected to create significant opportunities for businesses across the retail value chain.

At the same time, the sector remains competitive and sensitive to changes in consumer behaviour, inflation, interest rates, supply-chain costs and regulatory developments. Retail businesses will therefore need to focus on customer experience, operational efficiency, technology adoption, product differentiation and effective supply-chain management to achieve sustainable growth.

Overall, Indias favourable demographic profile, expanding consumption base and accelerating digital transformation provide a strong foundation for the long-term development of the retail industry. The Company remains focused on evaluating emerging opportunities and strengthening its business operations in line with changing market conditions and customer requirements.

Source: MoSPIs FY 2025-26 Provisional GDP Estimates and IBEFs May 2026 Retail Industry Report have been used for the updated figures and industry outlook.

ECONOMIC OVERVIEW

GLOBAL ECONOMY

The global economy exhibited moderate growth during the financial year 2025-26 despite persistent geopolitical tensions, inflationary pressures, supply chain realignments and fluctuations in commodity prices. Central banks across major economies continued to adopt balanced monetary policies to contain inflation while supporting economic growth. Although global uncertainties continued to influence business sentiment, improvements in international trade and easing inflationary trends provided stability to the global economic environment.

INDIAN ECONOMY

India continued to remain one of the fastest-growing major economies in the world, supported by strong domestic consumption, sustained public capital expenditure, policy reforms and increasing private sector investments. Government initiatives aimed at infrastructure development, manufacturing, digitalisation, logistics and ease of doing business continued to strengthen the countrys economic fundamentals.

The trading sector witnessed steady growth driven by increasing domestic demand, improved supply chain efficiencies and expansion in industrial and infrastructure activities. Continued investments in manufacturing and construction sectors are expected to generate sustained demand for trading companies dealing in industrial products and commodities.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company primarily operates in the trading business. The trading industry continues to play a significant role in Indias economic development by facilitating efficient distribution of goods across various industries and markets.

The industry remains influenced by factors such as:

• Economic growth and industrial production;

• Commodity price movements;

• Demand from infrastructure and manufacturing sectors;

• Government policies relating to trade and taxation;

• Logistics and transportation costs;

• Working capital availability; and

• Competitive market conditions.

Despite challenges arising from market volatility and fluctuations in input costs, the trading sector continues to offer growth opportunities through operational efficiency, strategic sourcing and customer-focused business practices.

COMPANY OVERVIEW

SHASHANK TRADERS LIMITED is in well diversified business as powered by Memorandum of Association. The Company is in the business of providing financial consultancy to varied clientele and trading in goods and services as empowered by its main object clause of the Memorandum of Association.

Shashank Traders Limited ("STL) was incorporated on 29^th May, 1985 under the Companies Act, 1956.Certificate of incorporation was issued by Registrar of Companies, National Capital Territory of Delhi and Haryana. Further the Company obtained the Commencement of Business Certificate from the Registrar of Companies, Delhi & Haryana on June 11, 1985.

Shashank currently involve in Metal & Minerals, Manufacture, Import & Export, Consulting, Trading, Textile Industry, Dealer & Supplier of Agriculture, Commodities & Merchandise, etc.

The management continues to focus on improving operational efficiencies, strengthening customer relationships and identifying commercially viable opportunities within the existing line of business.

FINANCIAL PERFORMANCE & ANALYSIS

The Financial statements of the company have been prepared in accordance with Indian Accounting Standard (Ind AS) notified under the Companies (Indian Accounting Standards) Rules 2015 as amended from time to time by the Ministry of Corporate Affairs (MCA), the provisions of Companies Act, 2013, and guidelines issued by the Securities and Exchange Board of India (SEBI). Financial statements of the company are prepared under the historical cost convention except for the certain financial assets and liabilities measured at fair value as mentioned in applicable accounting policies.

	(Rs. In Hundred)
Particulars	FY 25-26	FY24-25	Variation%
Revenue From Operations	41,969.78	4,844.27	766.40
Other Income	-	-	-
Total Revenue	41,969.78	4,844.27	766.40
Profit Before Interest, Exceptional items & tax	(19,030.36)	(13,484.45)	41.13
EBIT Margin %	(45.34)	(2.78)	42.56
Profit Before Taxation	(19,030.36)	(13,484.45)	41.13
Tax Expense
-Income Tax for earlier year	3,357.67	-	NA
Net Profit/(Loss For the year)	(22,388.03)	(13,484.45)	66.03
Net Profit Margin %	(53.34)	(2.78)	50.56

 

	(Rs. In Hundred)
PARTICULARS	FY 2026	FY 2025
PROFITABILITY RATIOS (%)
EBITDA Margin	(45.34)	(2.78)
EBIT Margin	(45.34)	(2.78)
Net Profit Margin	(53.34)	(2.79)
Growth Ratios (%)
Total Revenue	766.37	4.84
EBITDA	(41.12)	(13.47)
EBIT	(41.12)	(13.47)
Net Profit	(66.02)	(13.48)
Liquidity Ratio(times)
Current Ratio	0.85x	0.93x
Return Ratios
Return on Equity	-	-
Return on Capital Employed	-	-
Return on Assets	-	-
Efficiency Ratio	-	-
Asset Turnover (times)	0.15x	0.009x

 

PARTICULARS	FY 2026	FY 2025
Receivable Turnover(times)	-	0.16x
Receivable Days	-	2,239
Inventory Turnover(times)	-	-
Inventory Days	-	-
Payable Turnover(times)	-	0.20x
Payable Days	-	1,749
Cash Conversion Cycle	-	490
Leverage Ratios
Debt Equity Ratio	1.49x	1.29x
Debt to Assets Ratio	0.58x	0.53x
Interest Coverage Ratio	-	-

* Negative Ratios have not been calculated

EBIT and Margin: Earnings Before Interest and Tax (EBIT) also improved, with a loss of Rs.19.03 Lakhs in FY25-26, compared to a loss of Rs.13.48 Lakhs in FY24-25. The EBIT margin also deteriorated to (45.34) % in FY 2025-26 from (2.78) % in FY 2024-25.

Net Profit/Loss: The Company reported a net loss of Rs.19.03 Lakhs in FY25-26, which is an increase from the net loss of Rs.13.48 Lakhs in FY24-25. This reinforces the financial difficulties the company faced during the year.

Liquidity Ratios: Current ratios of 0.85x FY25-26 and 0.93x FY24-25 indicate that the companys liquidity deteriorated slightly in FY24, with both ratios below 1, implying the ability to meet short-term obligations are slightly concerning.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company has not undertaken any major operational activities during the year.

OUTLOOK

The outlook for the Indian economy remains positive, supported by sustained economic growth, infrastructure development and increasing industrial activity. The Company intends to strengthen its position in the trading business by improving operational efficiencies, expanding its customer base and exploring new business opportunities consistent with its existing business objectives.

The Company shall continue to evaluate strategic growth initiatives and business diversification opportunities, subject to obtaining the requisite statutory and regulatory approvals, wherever applicable.

RISK & CONCERNS

The Companys success largely depends upon the quality and competence of its management team and key personnel. Attracting and retaining talented professionals is therefore a key element of the companys strategy. The resignation or loss of key management personnel may have an adverse impact on the Companys business, its future financial performance and the result of its operations.

Moreover, any slowdown in the economic growth in India could cause the business of the Company to suffer. Recently, the growth of industrial production has been variable. Any slowdown in Indian economy could adversely affect the Companys business.

FINANCIAL PERFORMANCE & ANALYSIS

				(Rs. In Hundred)
RATIOS	2025-2026	2024-2025	% Change	Detailed Explanation in case change is more than 25%
Net Worth	194	220	0.88	-
RoNW %	-	-		-
Current Ratio	0.85	0.93x	N/A	-
Debtors Turnover Ratio*		0.16x	N/A	The Company reported a Debtor Turnover Ratio of Nil for FY 2025-26, as there were no sales transactions during the year. Accordingly, no trade receivables arose, and the ratio is not applicable for the period.
Inventory Turnover Ratio*	-	-	N/A	-
Interest Coverage Ratio***	-	-	N/A	-
Debt-Equity Ratio**	1.49x	1.29x	15%	-
Operating Profit Margin (%)***	(45.34)	(2.78)	N/A	-
Net Profit Margin (%)***	(53.34)	(2.79)	N/A	-

* Ratio have not been calculated as the company has not conducted any business activity and there is no sales income

** Not calculated due to negative net worth

***Ratio have not been calculated as the Profits are negative.

INTERNAL CONTROL SYSTEM

The Company has adequate internal audit and control systems. Internal auditors comprising of professional firm of Chartered Accountants has been entrusted with the job to regular conduct the internal audit and report to the management the lapses, if any. Both internal auditors and statutory auditors independently evaluate the adequacy of internal control system. Based on the audit observations and suggestions, follow up, remedial measures are being taken including review thereof. The Audit Committee of Directors in its periodical meetings, review the adequacy of internal control systems and procedures and suggests areas of improvements.

In view of the changes in Companies Act, the Company has taken additional measures from the financial year 2014-15 to strengthen its internal control systems. Some of the additional measures in this regard are strengthening background verification process of new joiners, whistle blower policy and strengthening the process of risk assessment.

The organization is well structured and the policy guidelines are well documented with pre-defined authority. The Company has also implemented suitable controls to ensure that all resources are utilized optimally, financial transactions are reported with accuracy and there is strict adherence to applicable laws and regulations. The Company has put in place adequate systems to ensure that assets are safeguarded against loss from unauthorized use or disposition and that transactions are authorized, recorded and reported.

The Audit Committee of Directors in its periodical meetings, reviews the adequacy of internal control systems and procedures and suggests areas of improvements. Needless to mention, that ensuring maintenance of proper accounting records, safeguarding assets against loss and misappropriation, compliance of applicable laws, rules and regulations and providing reasonable assurance against fraud and errors will continue to remain central point of the entire control system.

HUMAN RESOURCES

Human resource is considered as key to the future growth strategy of the Company and looks upon to focus its efforts to further align human resource policies and processes to meet its business needs. The Company aims to develop the potential of every individual associated with the Company as a part of its business goal. Respecting the experienced and mentoring the young talent has been the bedrock for the Companys growth. Human resources are the principal drivers of change. They push the levers that take futuristic businesses to the next level of excellence and achievement.

CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis Report describing the Companys objectives, expectations, estimates, projections, outlook and predictions may constitute" forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied due to various factors including changes in economic conditions, government policies, taxation, market conditions, competition, commodity prices, regulatory developments and other factors beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of subsequent developments, information or events.

	BY ORDER OF THE BOARD OF DIRECTORS
	FOR SHASHANK TRADERS LIMITED
	PRAVEEN JASWANT RAI JAIN	ANIL KUMAR SINGH
	MANAGING DIRECTOR	ADDITONAL DIRECTOR
	DIN:01776424	DIN:10860941
PLACE: NEW DELHI
DATE: MAY 30, 2026