Shri Bholanath Carpets Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Your directors are pleased to present the Management Discussion and Analysis Report for the year ended 31st March, 2025.

The company’s delisting from BSE was a significant event during the year. While the decision to delist was taken based on prolonged suspension of trading / non-compliance with listing obligations within the timelines provided, the company maintains that the decision was not justified. Accordingly, the company has filed an appeal before the Securities Appellate Tribunal (SAT), and the matter is currently pending before the Tribunal. Management is closely monitoring the proceedings and is confident that the issue will be resolved in the best interest of the company and its shareholders. The company continues to adhere to all regulatory norms and remains focused on its growth strategy. No material adverse financial impact has been observed due to the delisting as of the date of this report, but management will continue to monitor any developments related to this issue.".

OPPORTUNITIES AND THREATS:

Some of the key trends of the industry that are favorable to the company to exploit these emerging opportunities are:

Clients are more comfortable with uniform high quality and quick service and process across the enterprise.

There are good prospects for expanding further activities in this direction.

Some of the key changes in the industry unfavorable to the company are:

Heightened competition

Increasing Compliances

Attraction and retention of human capital.

Regulatory changes

RISK & CONCERNS

"The company’s delisting from BSE and the ongoing appeal before the Securities Appellate Tribunal

(SAT) present certain risks, including the potential impact on shareholder liquidity, market perception, and capital-raising ability. While the appeal is pending, the company is actively working towards a favorable resolution, and no material adverse effects on the company’s operations have been observed as of the date of this report. However, shareholders and stakeholders should be aware that any significant changes to the appeal’s status could impact the company’s business in the future.":

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Internal control systems are embedded in the processes across all functions in the Company. These systems are being regularly reviewed and wherever necessary are modified or redesigned to ensure better efficiency and effectiveness. The systems are subjected to supervision by the Board of Directors and the Audit Committee, duly supported by Corporate Governance. Company complies with all Applicable statutes, policies, procedures, listing requirements and management guidelines. It adheres to applicable accounting standards and polices.

HUMAN RESOURCES

Your Company treats its human resources as its important asset and believes in its contribution to the all-round growth of your Company. Your Company takes steps, from time to time, to upgrade and enhance the quality of this asset and strives to maintain it in agile and responsive form. Your Company is an equal opportunity employer and practices fair employment policies. Your Company is confident that its Human Capital will effectively contribute to the long-term value enhancement of the organization. Your directors further state that during the year under review, there were no cases

ANNUAL REPORT 2024-25 filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

SEGMENT-WISE PERFORMANCE

The Company operates in single segments i.e. carpets business. Hence, The Business Segments reporting in accordance with Accounting Standard 17 ‘Segment Reporting’ is not applicable.

SUBSIDIARY COMPANY

As there are no subsidiaries of the Company but have associate company

FORWARD LOOKING AND CAUTIONARY STATEMENT

This report contains forward-looking statements based on certain assumptions and expectations of future events. Actual performance, results or achievements may differ from those expressed or implied in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking.

BY ORDER OF THE BOARD

For Shri Bholanath Carpets Limited

Sd/-

Vivek Baranwal

(Director & CFO)

DIN: 02076746

Date: 02/09/2025

Place: Varanasi

Sd/- Harish Baranwal

(Director)

DIN: 01722061