Shukra Bullions Ltd Management Discussions

1. MANAGEMENT DISCUSSION

a. INDUSTRY STRUCTURE AND DEVELOPMENTS AND OUTLOOK:

Indias gem and Jewellery industry has shown remarkable resilience and perseverance in the face of global challenges. The industry Based on its potential for growth and value addition, the Government declared the Gems & Jewellery sector as a focus area for export promotion. Despite inflation in the USA, the three years long Russia-Ukraine war, and the Israel -Hamas Conflict in middle east for almost a year, a key market, the industry has managed to put up a commendable performance.

As per Report from IBEF Gems & Jewellery industry report, updated May 2026, states that:

Indias gems & jewellery market was approximately ^7,31,255 crore (US$85 billion) in January 2026.

It is projected to reach ^11,18,390 crore (US$130 billion) by 2030.

FY 2025-26 gross gems & jewellery exports were ^2,44,827.26 crore (US$27.72 billion).

During April-May 2026 (FY 2026-27), exports were ^40,398.97 crore (US$4.27 billion).

Cut & polished diamonds represented the largest export segment in FY26, followed by gold jewellery and silver jewellery. India is targeting US$100 billion in jewellery exports by 2027

b. OPPORTUNITIES AND THREATS:

India is the worlds largest cutting and polishing centre for diamonds, with the cutting and polishing industry being well supported by government policies. Indias Gems and Jewellery sector has been contributing in a big way to the countrys foreign exchange earnings (FEEs). In the coming years, growth in the Gems & Jewellery sector would largely be contributed by the development of large retailers/brands. Established brands are guiding the organised market and are opening opportunities to grow. Increasing penetration of organised players provides variety in terms of products and designs. Also, the relaxation of restrictions on gold import is likely to provide a fillip to the industry. The demand for jewellery is expected to be significantly supported by the recent positive developments in the industry. Indias Gems & Jewellery industry is expected to reach US$ 100 billion by 2027.

Despite the promising growth prospects, Indias Gems & Jewellery industry faces several significant threats. Intense global competition from emerging low-cost manufacturing hubs such as China and Thailand could undermine Indias dominant position in the diamond cutting and polishing market.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Company is operating in GEMs and Jewelry and Real Estate Segment but from the year 2022-23 there is no revenue in Real estate segment hence single segment is applicable only to the company.

INITIATIVES

The initiatives are required to be taken by the Company for improving the quality standards and reduction of costs at appropriate level. Company also aims to target imitation segment. New machineries are required to be imported to provide better result and to cope up with changing requirement of the industry. The employees at all levels are being made aware of the changing conditions and the challenges of the open market conditions and to train the personnel to tackle the difficult situations which will improve the overall productivity, profitability.

The Company is planning to participate/visit various jewellery shows domestic and aboard. Being unforeseen circumstance the management is hopeful of achieving higher turnover during the year.

Company is continuously negotiating to grab the export orders with international buyers and management is hopeful to achieve higher export turnover during the year. Company has entered in to Real Estate business along with existing business. Company is negotiating for land at Ahmedabad for development.

RISKS AND CONCERNS:

Company is in the Gems and Jewellery business and real estate Business and fluctuation in price of commodity in international markets as well as fluctuation of dollar price may impact the entire industry. The unavailability of fund is also affecting Indias position in the international market. Government has restricted import and now days most government of policies are demotivating import of Gold. Today people have more faith in gold than government bonds. Future unfavourable government policies may have impact on business of the company.

While rising interest rates are a cause for concern, the desire for larger, more luxurious homes will also see a surge. The popularity of WFH and hybrid working arrangements has increased the Demand for vacation houses. We anticipate that these trends will continue in 2024-25. To mitigate risk at all level company have to have experienced management and staff.

INTERNAL CONTROL SYSTEM:

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The scope and authority of the Internal Audit function is defined by the Audit Committee. To maintain its objectivity and independence, the Internal Audit function reports to the Chairperson of the Audit Committee of the Board/ and to the Chairperson.

The Internal Audit Department monitor and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies of the Company.

Based on the report of internal audit function, the company undertakes corrective action in their respective areas and thereby strengthen the controls Significant audit observations and recommendation along with corrective actions thereon are presented to the Audit Committee of the Board.

DISCUSSIONON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During the year under review revenue of a company has significantly increased to 1,62,40,580 as compared to Rs. 1,56,16,433 in the previous year. Company has managed its operations on a higher level and profit after tax increased proportionately. Company is working hard to achieve good result in upcoming years.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED.

The Company believes investing in people though creating an environment where people are valued as individuals and are given equal opportunities for achieving professional and personal goal.

Employees relations continue to be cordial. Training and development activities are identified, organizes and progress monitored as part of human resource development activities.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONGWITH DETAILED EXPLANATIONS

During the year under review company had achieved positive growth as total revenue significantly increased as compared to previous year. Ratios were properly given at notes to audit report, therefore, same has been not reproduced here.

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMIEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF - During the year there is not much change in return on net worth as compared to previous financial year as the same is remain negative, the same has been mentioned in audited balance sheet. Ratios were properly given at notes to the audit report, therefore, same has been not reproduced here.

2. DISCLOSURE OF ACCOUNTING TREATMENT

Appropriate accounting standards were followed in preparation of annual accounts, there is no Treatment different from that prescribed in Accounting Standard.

CAUTIONARY STATEMENT

Statements in the Directors Report & Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward looking statements. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Companys operations include cyclical demand, changes in government regulations, tax regimes, economic development and other ancillary factors.

ACKNOWLEDGMENT

The Directors sincerely express their appreciation to the employees at all levels, Bankers, customers, investors, Government of Maharashtra and Ministry of Government for their sustained support and co-operation and hope that the same will continue in future.

Your Directors also wish to place on record their deep appreciation for the dedication and hard work put by the employees at all levels towards the growth of the Company. Last but not the least, the Board of Directors wish to thank the Investor/ Shareholders for their support, co-operation and faith in the Company.