Super Spinning Mills Ltd Management Discussions

Industry Condition

Indian real estate growth for 2027 is shifting from a rapid boom to a phase of steady, moderate stabilization. The office and flex workspace market is surging. Flexible workspace supply is scaling up to 125 million sq. ft. by 2027, driven by the expansion of Global Capability Centers (GCCs) and hybrid work models.

Coimbatore continues to see strong demand from its IT and manufacturing boom, making it a key investment hub in the state, Coimbatores real estate market has hit a historic turning point. Transitioning from a quiet industrial city to South Indias premier Tier-2 luxury and commercial destination, it is drawing massive investment away from congested metros like Chennai. Driven by unprecedented infrastructure expansions and a booming Global Capability Center (GCC) ecosystem, the market is heading into a highly active phase.

According to the recent market tracking, the citys office vacancy has tightened almost to zero. To relieve this constraint, a massive 4.3 million sq. ft. Grade-A office supply pipeline is scheduled for delivery in peripheral and suburban markets. Progress on the Coimbatore Metro Rail, upcoming city-wide transit-oriented corridors, and the multi-phase Airport Expansion Project are directly multiplying land valuations. High-earning IT, manufacturing, and textile professionals are moving the residential market from simple rate sensitivity to space and community sensitivity. Further that Gross Leasing Volume (GLV) has demonstrated steady momentum, expanding by 46% Year-on-Year. The leasing profile remains heavily anchored by the IT-BPM sector (58% share) and a rapidly expanding Healthcare, Pharmaceuticals, and Engineering footprint (42% share)

Hindupur: Emerging Investment Potential. Hindupur has witnessed relatively limited growth in the real estate sector over the past two years; however, its medium-term outlook remains promising. The current Government of Andhra Pradesh has initiated several measures to attract industrial and infrastructure investments to the region. A proposed industrial corridor near the Companys Super Sara Unit, along with the planned defence corridor at Lepakshi, located close to Hindupur, is expected to improve regional connectivity, support economic activity, and enhance investment interest in the area.

Review of Operations & Outlook for current year

During the year under review, the Company continued its strategic transition from textile manufacturing operations to the real estate and property leasing business. Manufacturing operations remain discontinued, and the Companys primary focus is on the efficient utilization of its existing land and property assets through development, leasing, and other value-enhancing opportunities.

The Company is actively exploring suitable real estate development projects and leasing arrangements that align with its long-term business objectives and are expected to generate sustainable revenue streams while maximizing shareholder value.

The Company continues to focus on its strategic transformation towards a real estate development and asset monetisation business, with emphasis on creating sustainable and recurring revenue streams through the optimal utilisation of its existing land bank and infrastructure.

The Company has already leased out certain portions of its factory and warehouse facilities at the Super Sara Unit, Hindupur, and continues to explore additional leasing opportunities to further enhance the utilisation of its existing assets. In parallel, the Company is evaluating the sale or development of a parcel of land at Hindupur through an appropriate Joint Development arrangement, with the objective of unlocking value from its real estate holdings.

Further, the Company has initiated the development of a Grade A commercial property on its existing land parcel in Coimbatore through a Joint Development partnership. Upon implementation, the project is expected to substantially

expand the Companys portfolio of premium leasable assets, strengthen recurring rental income, diversify its revenue base, and enhance long-term shareholder value.

The Company is actively pursuing the leasing of its existing Super B Unit by undertaking strategic infrastructure restructuring to align the property with prospective tenant requirements. The management is engaged in discussions with potential occupants and remains focused on completing the leasing process at the earliest, with the objective of generating stable recurring revenue while maximizing the value of its existing assets.

Going forward, the Company intends to pursue a disciplined and asset-light growth strategy by leveraging strategic partnerships, optimising the utilisation of its real estate assets, and identifying commercially viable development opportunities. The Companys focus remains on building a resilient business model supported by stable lease rentals, prudent capital allocation, and sustainable value creation for all stakeholders.

Opportunities & Threats

The Companys strategic transition from manufacturing operations to real estate development and leasing presents significant opportunities to unlock the value of its existing land assets and establish sustainable revenue streams. The continued growth of the Indian real estate sector, supported by urbanization, infrastructure development, and increasing demand for quality commercial, industrial, and mixed-use spaces, offers favourable prospects for asset monetization through development, long-term leasing, and other value-enhancing initiatives.

The Company is actively exploring opportunities to optimize the utilization of its land bank by restructuring existing infrastructure and identifying suitable tenants and development partners. Such initiatives are expected to strengthen recurring rental income, improve asset productivity, and enhance long-term shareholder value.

At the same time, the real estate business is exposed to various risks and uncertainties, including fluctuations in economic conditions, changes in government policies and regulatory requirements, interest rate movements, property market cycles, and evolving customer preferences. The Companys ability to successfully monetize its assets is dependent upon market demand, timely regulatory approvals, availability of suitable tenants or development partners, project execution capabilities, and competitive market conditions. Any adverse developments in these areas, including increases in construction costs or delays in obtaining statutory approvals, may impact the Companys business plans and financial performance.

The management continues to monitor the evolving business environment and adopts a prudent and disciplined approach towards investment, risk management, and asset utilization, with a focus on creating sustainable longterm value for all stakeholders

Risks and concerns

The Companys business is subject to various risks arising from economic, regulatory, and industry-specific factors that may impact its operational and financial performance. As the Company is in the process of transitioning its business focus towards real estate development and leasing, its future performance will depend on the successful monetization of its land assets and the effective execution of its business strategy.

The real estate sector is influenced by prevailing macroeconomic conditions, changes in government policies and regulations, interest rate fluctuations, market demand, and competitive pressures. Delays in obtaining statutory and regulatory approvals, changes in land use regulations, increases in construction and infrastructure development costs, and prolonged negotiations with prospective tenants or development partners may affect the timely implementation of the Companys plans.

The Company is also exposed to risks associated with fluctuations in property values, tenant occupancy levels, rental realizations, and overall market sentiment. Any slowdown in the real estate sector or adverse changes in the

regulatory environment could impact the Companys ability to generate anticipated revenues from its real estate assets.

The management continuously evaluates these risks and has adopted a prudent approach towards business planning, regulatory compliance, asset management, and financial discipline. The Company remains focused on strengthening its internal control framework, optimizing asset utilization, and implementing appropriate risk mitigation measures to safeguard stakeholders interests and support sustainable long-term growth.

Health, safety and Security Environment

Your Company has always been adopting all possible safety measures concerning the health and safety of the staff at all levels. Your company is committed to provide all its employees with a healthy and safe work environment.

Human Resources/lndustrial Relations

The Company recognizes that its employees are valuable assets and remains committed to maintaining a professional, ethical, and performance-oriented work environment. Employee relations continued to remain cordial throughout the year. Necessary measures are being adopted to improve the life, work culture, productivity, efficiency and effectiveness of the workers and staff at all levels. The Company has 5 employees on roll as on 31 st March 2026.

Internal control systems and their adequacy

The Company has a robust and well-embedded system of internal financial controls. This ensures that all assets are safeguarded and protected against loss from unauthorized use or disposition and all transactions are authorized, recorded and reported correctly. An extensive risk-based programme of internal audit and management reviews provides assurance on the effectiveness of internal financial controls, which are continuously monitored through management reviews, self-assessment, functional experts as well as by the Statutory/ Internal Auditors during their audits. The internal audit plan is also aligned to the current business objectives of the Company, which are reviewed and approved by the Audit Committee. Further, the Audit Committee monitors the adequacy and effectiveness of the Companys internal control framework.

The internal financial control policies and procedures followed and adopted by the Company for ensuring orderly and efficient conduct of the business are adequate and operating effectively. The adequacy and effectiveness of the internal control systems is also being periodically reviewed by the Audit Committee of the company and a report of auditors pursuant to Section 143(3)(i) of the Companies Act, 2013 certifying the adequacy of internal financial controls is annexed with the Auditors report.

Discussion on financial performance with respect to operational performance

Directors Report contains details pertaining to the financial and operational performance of the company for the financial year 2025-26. Further, the audited financial statements, which has been prepared in accordance with the requirement of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015, discloses a true and fair view of the performance of the company during the said period.

Segment-wise or product-wise performance

At present, the Company is engaged only in the business of real estate activities and there is no other separate reportable segment.

Details of Key Financial ratios

S. No	Description	Unit of Measurement	31.03.2026	31.03.2025	Variation in %	Reason
1.	Current ratio	In Multiple	0.37	0.35	5.71
2.	Debt Equity ratio	In Multiple	0.25	0.34	-26.47	The variation is due to decrease in debt and decrease in losses during the year in comparison to previous year.
3.	Interest Coverage Ratio	In Multiple	0.43	(0.22)	-300.29	The variation in Ratio is due to decrease in losses during the year in comparison to previous year.
4.	Trade Receivable turnover ratio	In Days	23	81	-71.60	The variation in the Ratio is due to decrease in Trade receivables during the year in comparison to previous year.
5.	Return of Equity	In %	(11.10)	(22.63)	-50.95	The variation in the return on equity ratio is due to decrease in losses during the year in comparison to previous year.
6.	Net Profit Margin (%)	In %	(91.96)	(247.56)	-62.85	The variation is on account of the excessive loss in the current Year compared to the losses in the previous Year.
7.	Return on Capital employed	In %	(6.48)	(13.92)	-53.45	The variation in the Ratio is due to decrease in losses during the year in comparison to previous year.