Standard Industries Ltd Management Discussions

TRADING DIVISION

For the Financial Year April, 2025 to March, 2026 under review, the Company has achieved a textile trading turnover of Rs 3068.34 lakhs in comparison with Rs 2207.98 lakhs for the previous Financial Year.

The Company has introduced new product range such as Bed Sheets, Towels, Ready to stitch garments, etc. The Company has also expanded its existing product range by adding new dealers. This could ensure further growth in coming years.

PROPERTY DIVISION & OUTLOOK

The Standard Mills Company Limited was incorporated in India in the year 1892 under the Indian Companies Act, 1882. In line with the diverse nature of its business, it had changed its name from The Standard Mills Company Limited to Standard Industries Limited, (Rsthe CompanyRs) in October 1989. The Company also has a Property Division which comprises assets which are in excess of business needs, which the Company would liquidate based on market conditions.

INDUSTRY OVERVIEW

In an era marked by escalating global trade tensions and persistent geopolitical uncertainties, the Indian economy has demonstrated remarkable resilience and robust growth. In India real estate sector is the second highest employment generator, after the agriculture sector.

The robust demand for premium homes reflects sustained buyer confidenceand economic stability, while the preference for larger apartments signals evolving homebuyer aspirations.

STRENGTHS

The Company is optimistic in Textile trading, as our main strength is brand image.

IndiaS real estate sector has witnessed robust growth and rising investor confidence.

RISKS AND CONCERNS

Led by COVID period pump-priming of the economies in various countries, inflation has been a persistent challenge.

Equities in most major countries have largely mirrored the direction of trade policies emanating from the United States, particularly after the US presidential election. This policy led uncertainty in the markets and is going to have an impact on the global capital flows and currencies.

OPPORTUNITIES & CHALLENGES

The Company largely benefits from its strong brand name. Our Textiles brand sees enormous opportunities in product and design innovations to address the changing performances of customers.

The Indian economy is projected to grow by 6.5% in the Financial Year 2026 which is close to the 6.4% growth seen in the Financial Year 2025.

The Wars in Ukraine and the Middle East continued to have significant impacts on global energy markets, food prices and supply chains.

SEGMENT-WISE PERFORMANCE

Segment-wise performance together with discussion on financial performance with reference to the operational performance has been dealt with in the DirectorsRs Report which should be treated as forming part of the Management Discussion and Analysis.

INTERNAL CONTROL SYSTEMS & ADEQUACIES

The Company has proper and adequate system of internal control to ensure that all assets are safeguarded and protected against loss from unauthorized use on disposition and transactions are authorized, recorded and reported correctly.

Internal control systems are supplemented by Internal Audit Reviews, coupled with guidelines and procedures updated from time to time by the Management.

Internal control systems are established to ensure that the financial and other records are reliable for preparing financial statements.

Internal Audit System is engaged in evaluation of internal control systems. Internal audit findings and recommendations are reviewed by the Management and Audit Committee of the Board of Directors.

HUMAN RESOURCES

As on 31^st March, 2026, the employeesRs strength (on permanent roll) of the Company was 12.

FINANCIAL STATEMENT ANALYSIS

In accordance with SEBI (Listing Obligation and Disclosure Requirements) (Amendment) Regulations,

2015, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector-specific financial ratios.

The Company has identified the following ratios as key financial ratios:

Particulars	Note no. of Standalone Financial Results	Year ended March 31, 2026	Year ended March 31, 2025
Return on Equity Ratio	41(b)	0.01	-0.08
Trade Receivables	41(d)	0.72	0.50
Turnover Ratio (In times) Debt Service	41(j)	(0.79)	(0.92)
Coverage Ratio (In times) Return on Capital	41(h)	-10%	-7%
Employed (Pre-Tax) Current Ratio (In times)	41(a)	1.88	6.74
Net Capital Turnover Ratio (In times)	41(f)	0.51	0.32

Ratios where there has been a significant from year ended March 31, 2025 to year ended March 31, 2026.

1. Return on Equity Ratio : Net profit after tax divided by average equity. Average equity represents the average of opening and closing total equity. The ratio improves from (0.08) in FY 24-25 to 0.01 in

FY 25-26 mainly on account of Net profit for year as compared to losses in the previous year.

2. T rade Receivables Turnover Ratio: Credit Sales divided by average trade receivables. Credit sales includes sale of products, services and scrap sales. Trade receivables is included gross of ECL and net of customer advances. Average Trade receivables represents the average of opening and closing trade receivables. The ratio improves from 0.50 in FY 24-25 to 0.72 in FY 25-26 mainly on account of improved collection of trade receivables.

3. Debt Service CoverageRatio: Earnings available for debt services divided by total interest and principal repayment. The ratio improved from (0.92) in FY 24-25 to (0.79) in FY 25-26 mainly on account of repayment of borrowings.

4. Return on Capital Employed (Pre-Tax) : Earnings before interest and taxes (EBIT) divided by average capital employed. The ratio decreases from (7%) in FY 24-25 to (10%) in FY 25-26 mainly due to exceptional gain in previous year on account of disposal of Property, Plant and Equipments.

5. Current Ratio : Current assets divided by Current liabilities. Current assets includes total current assets other than asset held for sale. The ratio decreases from 6.74 in FY 24-25 to 1.88 in FY 25-26 mainly on account of increase in current liabilities, i.e. unsecured deposit received.

6. Net Capital TurnoverRatio: Sales divided by Net Working Capital. The ratio improves from 0.32 in FY 24-25 to 0.51 in FY 25-26 due to increase in sales.