Sri Ramakrishna Mills (Coimbatore) Ltd Management Discussions

The global economy showed steady progress, despite facing a challenging and uncertain environment. As the global economy adjusts to new realities, businesses are focusing more on resilience, diversification, and long-term value creation.

Though supported by strong domestic demand, narrowing trade deficit and controlled inflation, the trade challenges persist due to weak global demand. The RBIs proactive policies have played a crucial role in stabilizing liquidity and inflation expectations.

The industry remains optimistic about maintaining the growth especially in light of evolving UK & US trade policies. The textile industry in 2025 is expecting better export opportunities which will help the textile industry.

In FY25, the Indian Textile Industry experienced challenges. Domestic demand exhibited signs of recovery; however, global trade uncertainties and price fluctuations impacted production. Market trends indicate stable demand conditions.

Amidst slower exports, cotton yarn mills have seen traction in domestic demand with newer trade policies the exports will grow due to higher tariffs on other countries.

The industry is likely to further shift gears in FY2026, with yarn demand likely to gain traction from the healthy prospects in domestic demand, especially with strong off-take from downstream segments like apparels.

The Company has adequate internal control system to monitor internal business process, financial reporting and compliance with applicable laws. The adequacy and effectiveness of the control systems are being reviewed periodically to see that it conforms to the policies and procedures adopted by the company so as to meet the statutory requirements. The Audit Committee at its meetings regularly reviewed the significant observations of the compliance and other reports.

Necessary initiatives have been taken for improving the skills of the employees by providing training with regard to development of its human resources.

The Management Discussion and Analysis are placed before the Audit Committee and duly reviewed by the Committee.

SEBI has mandated under SEBI (LO & DR) Regulations 2015 amendment that the Annual Report for the year ended 31.03.2025 should contain the following ratios for the year and also for the previous year with explanation where the variation is more than 25%.