Shekhawati Poly-Yarn Ltd Management Discussions

INTRODUCTION

The Management Discussion and Analysis ("MD&A") contains forward-looking statements that reflect the Companys current views with respect to future events and financial performance. These statements are based on certain assumptions and expectations of future events and are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied herein due to changes in global and domestic economic conditions, government policies, market dynamics, and other external and internal factors.

Important external factors that may affect the Companys operations include the availability and cost of raw materials, cyclical demand patterns, price volatility, changes in government regulations and tax regimes, economic developments in India and the countries in which the Company operates, Indias trade agreements, currency exchange rates, and availability of a skilled and unskilled workforce. Readers are advised to read this in conjunction with the Companys audited financial statements.

OVERALL REVIEW

The textile industry continues to play a vital role in the Indian economy, contributing to more than 15% of the countrys total exports. It is one of the largest employment generators, providing direct and indirect employment to over 35 million people. The sector has experienced sustained growth due to rising domestic and international demand, government support initiatives, and infrastructure development. It is also a critical component of the "Make in India" campaign, with immense potential for further growth and foreign exchange earnings.

During the year under review, the Company continued its core textile operations focused on job work and consultancy services, leveraging its expertise to help clients unlock their full production potential.

The Company also made a strategic entry into the real estate sector and has commenced construction on a new project on recently acquired land in Khandala, Maharashtra. This one-of-its-kind project is expected to begin generating revenue in the upcoming financial year.

A. INDUSTRY STRUCTURE AND DEVELOPMENT

Textile Sector:

The Indian textile industry has shown consistent growth, supported by multiple government initiatives such as the Scheme for Integrated Textile Parks (SITP), Production Linked Incentives (PLI), and the automatic approval route for 100% Foreign Direct Investment (FDI). The Ministry of Textiles continues to play an active role by engaging with industry stakeholders and promoting development and modernization.

Real Estate Sector:

The implementation of RERA (Real Estate Regulatory Authority) across India has created a more transparent and equitable platform for both developers and consumers. There is increasing demand for residential and commercial real estate, supported by urban development policies and redevelopment incentives. Your Company aims to capitalize on this momentum while maintaining its long-standing business values and industry relationships.

B. OPPORTUNITIES AND THREATS Opportunities:

- The Indian economy is on a path of recovery and expansion, which bodes well for the textile and real estate sectors.

- The textile industry has not yet tapped the full potential of domestic consumption. With increasing population, rising income levels, and technology adoption, the sector could experience exponential growth.

- Real estate demand is expected to improve as urbanization continues and infrastructure improves.

Threats:

- Indian textile companies face stiff competition from neighboring countries with higher output and aggressive pricing, affecting export competitiveness.

- In the real estate sector, growth is closely tied to income levels and access to affordable credit. Investor interest is currently skewed toward equity markets due to better returns, while property valuations remain high and rental yields low.

C. OUTLOOK

The Company remains optimistic about Indias long-term growth prospects and is committed to contributing meaningfully to both the textile and housing sectors—two of the most essential human needs. We anticipate stronger performance in the textile business in the coming year, with demand expected to rebound steadily.

The real estate project in Khandala is expected to open a new revenue stream and contribute positively to the Companys performance in the near future. While there was no export activity during the year under review, we are exploring potential future opportunities in international markets.

D. RISKS AND CONCERNS

Risk is inherent to business growth. Successful companies strike a balance between taking calculated risks and delivering risk-adjusted returns. The Company identifies, assesses, and mitigates internal and external risks through robust risk management practices.

Key concerns include:

Geopolitical and tariff-related risks, which may indirectly impact the Companys customers and their supply chains.

- Currency volatility and raw material price fluctuations.

- Interest rate changes and credit availability in the real estate sector.

The Company continues to monitor all risk factors and remains proactive in adjusting its business strategies to mitigate potential impacts.

E. Internal Control System:

The Board has adopted system of internal control to ensuring the orderly and efficient conduct of its business, including adherence to the Companys Policies, the safeguarding of its assets, the prevention and detection of fraud and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial disclosures.

The management reviews the control systems and procedures periodically to upgrade them. Presently the internal control systems are commensurate to the size and operations of the company.

F. FINANCIAL & OPERATIONAL PERFORMANCE:

During the financial year 2024-25, the Company continued its core activities of job work and textile consultancy within the textile sector. The overall operational performance improved during the year. In a significant strategic move, the Company has entered the real estate sector. Construction work has commenced on a newly acquired land parcel located in Khandala,

Maharashtra. The Company expects this ongoing development to begin contributing to revenue in the upcoming financial year.

The Company reported a Profit After Tax (PAT) of Rs. 626.99 lakh in 2024-25 as against Rs.15,399.86 lakh in the previous year. The unusually high profit in 2023-24 was primarily due to exceptional gains arising from the settlement of loans under a One-Time Settlement (OTS) facilitated by the Asset Reconstruction Company (ARC).

The turnover for the year stood at Rs. 6,241.42 lakh, as compared to Rs. 8,035.67 lakh in the previous year, reflecting a reduction primarily attributable to normalization after one-time events.

G. KEY RATIOS :

Particulars	31st March, 2025	31st March, 2024
1 Current Ratio	1.24	1.22
2 Debt – Equity Ratio	0.03	0.12
3 Trade Receivable turnover Ratio	7.82	4.32
4 Trade Payable Turnover Ratio	1.20	0.59
5 Net Profit ratio	0.10	2.01

H. HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL RELATIONS:

The Company continued to enjoy harmonious and cordial relations amongst its entire employee. The key to the success of the Company lies in its people whose skills, expertise, and talent help the Company to achieve and sustain its market position. It is the peoples commitment, technical know-how, innovative ability and performance driven mindset that enable to react swiftly and creatively to the evolving customer and market needs.

Human resources continue to be an invaluable and intangible asset and key success factor for the Company to grow and sustain its market position in a highly competitive and challenging environment. Your Company firmly believes that people are the pivotal force behind the growth and excellence in business operations. Focus on developing leadership skills and building talent for the future and the process of improving organizational and human capability through competency mapping of managerial positions in all areas of the Companys operations, continued as a major initiative. The Company is committed to provide the right environment to its employees to work and to inculcate a sense of ownership and pride.

I. CAUTIONARY STATEMENT:

Statements in this Report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Investors are cautioned that this discussion contains statements that involve risks and uncertainties. Words like anticipate, believe, estimate, intend, will, expect and other similar expressions are intended to identify such forward looking statements. The Company assumes no responsibility to amend, modify or revise any forward looking statements, on the basis of subsequent developments, information or events.

	FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
	For SHEKHAWATI INDUSTRIES LIMITED
		(Formerly Shekhawati Poly-Yarn Limited)
	Sd/-	Sd/-
	Mukesh Ruia	Ravi Jogi
Place :Mumbai	Chairman & Managing Director	Whole – Time Director
Date : July 24, 2025	(DIN: 00372083)	(DIN : 06646110)