Sterling Green Woods Ltd Management Discussions

Industry Structure and development

January 2025 World Economic Outlook Update projects that global growth will fall to 2.9 percent in 2024 but rise to 3.1 percent in 2025. The 2024 forecast is 0.2 percentage point higher than predicted in the October 2024 World Economic Outlook but below the historical average of 3.8 percent. Rising interest rates and the war in Ukraine continue to weigh on economic activity. Chinas recent reopening has paved the way for a faster-than-expected recovery. Global inflation is expected to fall to 6.80 percent in 2025 and 4.3 percent in 2025, still above pre-pandemic levels.

• Recession postponed, not canceled

Despite the aggressive monetary policy tightening weve seen so far, economic activity in developed economies has shown to be more resilient than expected amid a strong rebound in the services sector.

• Inflation remains stickier than expected

While headline inflation is easing, core inflation remains stubbornly high, and it isnt just due to services inflation: Goods inflation is inflecting higher after a period of decline.

• Unexpectedly hawkish central banks

From the Bank of Canada to the Reserve Bank of Australia to Bank Negara Malaysia to the U.S. Federal Reserve, central banks around the world are proving to be more hawkish than expected.

• A shifting geopolitical backdrop

There are signs that were entering a new global regime, requiring a rethink of how risk assets respond to changes in the macro backdrop.

OUTLOOK

The World Economic Outlook estimates a growth of 2.8% “Our April 2025 World Economic Outlook shows a weak global growth rate of 2.8%, with growth rates declining in 127 countries, which account for 86% of global GDP,” IMF Chief Economist Gita Gopinath said.

INDIAN ECONOMY

India is the fastest growing developing economy in the world.

In this quarter, China grew by 4.3%, the US by 2.1%, Singapore by 5.6% and Malaysia by 6%.

Indias progress has surprised once again amidst the US-Iran Russia-Ukraine war. The countrys GDP growth rate in the first quarter of the financial year 2026-27 was 7.80%, which is higher than the Reserve Banks expectation of 7%. In 2025-26, the growth during the same period was 6.90%. According to the data released in August 2026, the biggest engine of this growth has been the services sector, which has grown by 10%.

The pace of investment has reached double digits. This indicates that capacity-building activities in the economy such as construction and other places of casual investment are increasing rapidly.

The economic growth rate is expected to be 12% in the next two years.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE.

According to IMF estimates, Indias GDP may grow at a rate of 6.2% this year i.e. in 2025. Let us tell you that earlier in the Outlook report released in January, it was claimed that Indias GDP growth rate may be 8.5%. At the same time, the report said that the worlds two largest economies, the US and China, could retain their ranking for the next 10 years.

India is the worlds fastest growing economy

The IMF report said that despite the Trump tariffs, Indias economy is the worlds fastest growing economy. The report said that India is the only economy in the world that will grow at a rate of 6% for the next two years.

The World Economic Outlook estimates a growth of 2.8%

OPPOURTINITY AND THREATS:

• Lack of clear land titles; • Financing and capital requirement;

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

• Continuous Tech Advancements;

• Retaining and Attracting Employees

• Unfavorable Supply Vs. Demand Dynamics;

• Increased cost of compliance and manpower

• Shortage of Skilled Manpower;

• Delays in project approval and other procedural difficulties;

• Rising Operating Costs;

• Lack of adequate sources of finance;

• Lower sales volume;

• Implementation of Technology

• Environmentally Friendly Practices

• Personalizing Customers Experience

Financial Performance:

Outlook on Risks and Concerns:

Your Company is exposed to a number of risks such as economic, regulatory, taxation and environmental risks and also the investment outlook towards Indian Real Estate Sector. Some of the risks that may arise in its normal course of its business and impact its ability for future developments include inter-alia credit risk, liquidity risk, regulatory risk, commodity inflation risk and market risk.</p>

Internal Control System:

The Company has adequate internal control systems and procedures with regard to purchase, stores and raw materials and bookings and other service and for sale of goods. The Company has an adequate internal audit system commensurate with size and nature of its business. The Company has engaged a firm of Chartered Accountants for its internal audit function. Reports of Internal Auditors are reviewed in the meetings of the Audit Committee of the Board.

Industrial Relations & Human Resource Development:

The Company has always valued its human resources and considered them as the biggest assets of the Company. The Company believes in the infinite potential of each employees and focus on the overall development of each employee. Industrial relations continued to be harmonious and cordial throughout the year. The company employed 02 numbers of employees as on 31st March, 2026.

[(I) 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 THEREFOR, INCLUDING:

(j) DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

The return on Capital Employed was increased to -0.15% as on 31st March, 2026 as compared to -0.10% as on previous financial year ended on 31st March, 2025. The reason decrease of the same because of scrawny market condition and the resort has been leased out to school project. However, your Directors are hopeful to have better results in the upcoming financial year.

Road Ahead

World Tourism Day 27th of September 2023 has been chosen to inspire us to consider what we want tourism to achieve, and how we can get there. The United Nations General Assembly recently held its special debate on tourism, highlighting the historic relevance of the industry, and showing that it is now a priority for governments and international organizations worldwide. This marks a remarkable development for the industry on a global scale.

In 2022, the tourism sector has shown signs of remarkable recovery with more than 250 million international arrivals recorded. However, long-term and holistic thinking is needed to meet the challenges facing our world. A more sustainable tourism model based on social inclusion, environmental protection, and responsible tourism practices is crucial for the industrys continued success.

To achieve sustainable tourism, we need to focus on important lines of action to guide responsible tourism recovery. These include public health, social inclusion, biodiversity conservation, climate action, circular economy, and governance and finance. Promoting sustainable tourism practices will create economic, social, and environmental benefits for communities around the world.

The first line of action is responsible recovery for people. The tourism sector can contribute to public health and humanitarian aid, which will help build confidence and trust in the industry. Targeted support for vulnerable groups, such as youth, women, rural populations, and indigenous communities, will allow for a more inclusive recovery.

The second line of action is social inclusion, which focuses on creating long-term support for small and medium enterprises beyond initial relief measures. Digital technologies can contribute to business continuity while capitalizing on the new services that tourism businesses and creative industries have provided to destinations in times of crisis, bringing an opportunity to create stronger ties with local communities.

The third line of action, responsible recovery for the planet, aims to support conservation efforts through tourism. By investing in nature-based solutions for sustainable tourism, we can foster disaster resilience in urban and natural environments.

The fourth line of action, climate change action, aims to accelerate the decarbonization of tourism operations. Enhancing mitigation efforts in the tourism sector, including investments to develop low-carbon transportation options and greener infrastructure, is crucial to the industrys resilience.

The hospitality business is dependent on global and domestic economic conditions. The Company is assessing the short term and on its operations, profitability, liquidity position and demand for its services etc. The Company has taken several measures to sustain the operations, optimization of financial resources and cost control. Some of them are here-

1. To explore the other avenues of the income within the current business operations.

2. To diversify the use of the Land and other assets of the Company.

3. To further optimize the Human Resource Operation

4. To explore opportunity to lease / rent out options for the Companys Assets/ properties.

5. To explore opportunities for contract farming or such other options to use the Agricultural Land of the Company.

6. To refinance the financial structure of the company.