Simandhar Impex Ltd Management Discussions

1. OVERVIEW

The Company is engaged in the business of trading and sale of gold jewellery. It primarily supplies gold jewellery to wholesalers, jewellery manufacturers, traders, and retailers across India. The Company offers a wide range of gold jewellery products and focuses on delivering quality products to meet the evolving requirements of its customers in the domestic market.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS

India continues to be recognised as one of the worlds leading hubs for the Gems and Jewellery industry, supported by its skilled workforce, strong manufacturing capabilities, cost competitiveness, and well-established supply chain. The country remains among the largest consumers of gold globally, with the industry contributing significantly to exports, employment generation, and economic growth. The sector encompasses the sourcing, refining, manufacturing, wholesaling, and retailing of precious metals and gemstones, including gold, silver, platinum, diamonds, and other precious stones.

3. INDUSTRY TREND GOLD JEWELLERY

Sustained demand for gold jewellery: Gold jewellery continues to witness strong consumer demand, supported by its cultural importance, investment appeal, and role as a reliable store of value. Demand remains resilient despite fluctuations in gold prices, particularly during weddings and festive seasons.

Expansion of organised and branded retail: The organised jewellery market is experiencing steady growth, driven by increasing consumer preference for BIS hallmarked jewellery, certified products, transparent pricing, and superior customer experience. Branded retailers are also expanding their presence through digital platforms and omnichannel retailing.

Evolving consumer preferences: Consumers are increasingly opting for lightweight, contemporary, and customised gold jewellery that combines affordability with modern designs. Rising disposable incomes, urbanisation, and changing lifestyles, particularly among younger consumers, continue to support long-term growth in the gold jewellery industry.

4. OUTLOOK

Based on its potential for growth and value addition, the Government declared the gems and jewellery sector as a focus area for export promotion. The future growth of the gems and jewellery sector is expected to be led by the development of large retailers/brands which are supporting in increasing the share of the organised market.

Indias Gems and Jewellery sector significantly contributes to the national economy, accounting for about 7% of GDP and 7-9% of total merchandise exports. As of January 2026, the market size stood at US$ 85 billion and is projected to expand to US$ 130 billion by 2030. The Government of India aims to reach US$ 100 billion in jewellery exports over the next few years (until 2027), up from US$ 35 billion in 2020.

The country is also the second-largest consumer of gold jewellery globally. Indias gold demand is projected to remain in the range of

600 700 tonnes in 2026, with rising investment demand offsetting weaker jewellery consumption due to elevated gold prices.

Indias gem and jewellery exports recorded strong growth in June 2026, reflecting improving global demand and enhanced export competitiveness. According to the Gem and Jewellery Export Promotion Council (GJEPC), gross exports increased 26.51% year-on-year to Rs. US$ 2.21 billion during the month.

Growing consumer preference for organised and branded jewellery retailers, driven by increasing awareness of BIS hallmarked jewellery, certified products, and transparent pricing.

Rising disposable incomes, urbanisation, and strong demand during weddings, festivals, and other special occasions continue to support long-term growth in the gold jewellery market.

Expansion of digital platforms, omnichannel retailing, and innovative lightweight and contemporary jewellery designs is creating new growth opportunities and expanding customer reach.

Volatility in gold prices, fluctuations in foreign exchange rates, and changes in government policies, import duties, and taxation may affect demand, margins, and profitability.

Intense competition from organised and unorganised market participants, along with rapidly changing consumer preferences and fashion trends, requires continuous product innovation and efficient inventory management to sustain market competitiveness.

6. RISK AND CONCERNS

The gold jewellery industry is exposed to risks arising from fluctuations in gold prices, changes in consumer preferences, economic conditions, regulatory developments, and competition from organised and unorganised market participants. Variations in import duties, taxation policies, BIS hallmarking requirements, and foreign exchange rates may also impact the Companys operations and profitability.

The Company has implemented an effective risk management framework supported by robust internal controls, well-defined policies, and regular monitoring of market and regulatory developments. These measures enable the Company to identify, assess, and mitigate potential risks in a timely manner, thereby supporting operational efficiency, financial stability, and sustainable business growth.

7. FACTORS AFFECTING OUR OPERATIONS

Gold Jewellery Industry

The gold jewellery industry is influenced by factors such as fluctuations in gold prices, consumer demand, economic conditions, regulatory changes, and seasonal buying patterns. Demand is primarily driven by weddings, festivals, and investment preferences, while increasing consumer inclination towards organised retailers, BIS hallmarked jewellery, and contemporary designs continues to shape the industry. The Companys operations may also be affected by changes in import duties, taxation policies, foreign exchange rates, and overall market sentiment.

Human Resources & Industrial Relations

The Company considers its human resources as one of its key strengths and focuses on attracting, retaining, and developing skilled professionals. Continuous training, employee engagement, and performance-based development initiatives help enhance operational efficiency and customer service. The Company continues to maintain cordial industrial relations and a positive work environment, which contribute to its sustainable growth and business continuity.

The Company has established an adequate internal control system to ensure accurate financial reporting, safeguard its assets, and ensure compliance with applicable laws and regulations. Regular internal reviews and well-defined policies support operational efficiency and effective risk management. The Company prepares its financial statements in accordance with the applicable Indian Accounting Standards (Ind AS) and continuously strengthens its internal control framework in line with evolving business requirements.

During the financial year under review, the Company recorded a total turnover of Rs. 154.40 Lakhs as against Nil in the previous financial year, primarily due to the commencement of jewellery business pursuant to the Scheme of Arrangement (Demerger), under which the jewellery business was transferred to the Company. The Company earned a profit of Rs. 0.43 Lakhs during the year.

The comparatively modest profit is attributable to the initial phase of business operations, integration of the transferred business, and establishment of operational processes following the demerger. The management expects improved operational efficiencies and enhanced profitability in the coming years as the business continues to expand and stabilize.

In accordance with the amended SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the Company is required to give details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof:

The Company has identified following ratios as key financial ratios:

Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions are within the meaning of applicable laws or regulations. These statements are based on certain

assumptions and reasonable expectation of future events. Actual results could however differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include changes in the government regulations, tax laws, statues and other incidental factors as applicable to the company.

8. ACKNOWLEDGEMENT

Your directors take this opportunity to express their deep sense of gratitude to the vendors, business associates, employees, investors and banks for their continued support and co-operation during the year under review.