Supra Trends Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

Indian economy has demonstrated resilience and maintained healthy macro-economic fundamentals, despite global economic challenges. There has been strong growth across sectors. The accelerated pace of economic reforms and strong domestic consumption have led to higher and sustainable growth of the Indian economy and strengthened its position in the world. In the three quarters of the fiscal year, Indias GDP growth touched 8.2% year over year (YoY) in these quarters. The geopolitical tensions, supply chain disruptions, high inflation, and tighter monetary conditions were some of the challenges for the economic recovery.

The hospitality sector in India is an integral part of the travel and tourism industry. Indias tourism and hospitality industry experienced significant recovery and growth in 2025-26, marked by increased domestic and international demand, major global events, spiritual and religious tourism, and expansions in hotel chains. The government has also initiated various measures like developing ports as cruise tourism hubs, supporting new projects from international hotel chains, increase in budget to the tourism sector, launch of Scheme to develop theme-based tourist to boost the industry.

Indian consumer with constantly expanding wallet and higher aspiration constitutes to be the largest opportunity for your Company. Second opportunity lies in the constant force of technology change. This provides your Company with opportunity to meet consumer needs differently from its competitors. Technology also gives us opportunity to improve efficiency and productivity. Growth of individual categories is linked to the overall economic growth. Primary risk to the business will be on account of adverse changes to the economy. Volatility in commodity prices is the other risk. Your Company is looking forward to meet the needs of changing economic scene in India and also to enhance the size and value of business activities of the company so that it will be able to achieve optimal return on capital employed.

Some of the biggest threats or risks faced remains unchanged which are the economic uncertainty or slow recovery, business interruption, failure to innovate or meet customer needs, uncertainty in International Travel, natural disasters, geo-political tension, pandemic risk and health crises. The industry was among the hardest hit by the COVID-19 pandemic. Employee management continues to be a major challenge faced by the industry, shortage of experienced personnel, high attrition rate, lack of workforce quality. Maintenance of food safety and hygiene, catering to changing consumer likings are some of the critical factors. Changing government guidelines becomes difficult to adhere to, risk of fire, to maintain competitive menu prices with ever changing price of raw materials, supply chain issues, numerous clearance / licenses /approvals from authorities, high real estate cost are some of the concerns faced by the industry.

Ever changing scenario demands the industry to adapt to a new reality and innovation to stay competitive in the market. While some of the changes may be temporary, others become permanent as the evolution is inevitable to meet the changing needs and expectations.

The Company is presently operational in only one segment i.e. Restaurant and food services and allied activities.

The Company has proper and adequate internal control systems to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and the transactions are authorized, recorded and reported correctly. The internal control system provides for well documented policies, guidelines, authorizations approvals and procedures. The observations arising out of audit are subject to periodic review, compliance and monitoring. The significant observations, made in internal audit reports, along with the status of action thereon are reviewed by the Audit Committee of the Board of Directors on a regular basis for future appropriate action, if deemed necessary.

Discussion on Financial Performance with respect to Operational Performance:

1. Total Income: Rs.9.14 Lakhs
2. Share Capital: The paid-up share capital as on March 31, 2026 is Rs.13,53,72,410/- divided into 1,35,37,241 fully paid-up equity shares of Rs.10/- each.
3. Net Loss: Rs.70.53 Loss
4. Earnings Per Share (EPS): The Earning Per Share for the Financial Year 2025-26 is Rs. (0.52) per share (Face Value: Rs.10/- each). Your directors are putting continuously efforts to increase the performance of Company and are hopeful that the performance in coming year will improve in faster way.

Your company recognizes that the human resources are the most crucial factor for achieving sustained growth over the years. The management considers its highly motivated and passion driven work force as its partner in the growth of the company. As on the March 31, 2026, there are 7 employees on the rolls of the Company.

Wherein the preparation of financial statements a treatment different from that prescribed in an Accounting Standard has been followed the fact shall be disclosed in the financial statements together with the managements explanation as to why it believes such alternative treatment is more representative of the true and fair view of the underlying business transaction.