Svaraj Trading & Agencies Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT:

The Company is primarily engaged in the business of designing, developing, assembling, manufacturing, trading, marketing and dealing in machineries and equipment, including roti maker machines. The nature of the Companys activities is diverse and does not fall exclusively within any single specific industry or sector.

The machinery and equipment business is influenced by various factors, including technological developments, changing consumer requirements, product innovation, manufacturing capabilities, availability and cost of raw materials, competitive conditions and overall economic activity. The Company continues to focus on developing and offering products in accordance with market requirements and on improving its operational and marketing capabilities.

As part of its ongoing business development and expansion strategy, the Company has also diversified its activities into the sale of marketing rights, thereby broadening its business portfolio and creating additional avenues for revenue generation.

The Company continues to evaluate opportunities for expansion and diversification of its business activities, while maintaining due consideration to market conditions, commercial viability and available resources.

OPPORTUNITIES:

The Companys diversified business model provides opportunities for expansion into various machinery, equipment and allied business activities. Increasing demand for innovative and efficient machinery and equipment, coupled with changing consumer preferences, may provide opportunities for the Company to introduce new products and strengthen its market presence.

The Companys activities relating to marketing and sale of marketing rights may also provide additional opportunities for revenue generation and business diversification.

The Company may further explore opportunities arising from product innovation, technological development, expansion of its customer base, development of new markets and strategic business initiatives.

THREATS:

The Companys business is subject to normal business risks, including competition, fluctuations in the prices and availability of raw materials and components, changes in customer preferences, technological changes, economic conditions and changes in applicable laws and regulations.

The Company also faces competition from established as well as emerging players operating in the machinery, equipment, trading and allied sectors. Increased competition may exert pressure on product pricing, margins and market share.

The Company seeks to mitigate such risks through prudent business practices, continuous monitoring of market conditions, product development, cost management and diversification of its business activities.

SEGMENT WISE OR PRODUCT-WISE PERFORMANCE:

The Companys principal business activities comprise designing, developing, assembling, manufacturing, trading, marketing and dealing in machinery and equipment, including roti maker machines, along with activities relating to the sale of marketing rights. During the year under review, the Companys performance was dependent upon the level of business generated from its respective products and activities, prevailing market conditions and demand for its offerings. The Company continues to assess the performance and commercial viability of its various products and business activities and intends to strengthen those areas which offer sustainable growth potential.

The detailed financial performance of the Company for the year under review is reflected in the Audited Financial Statements forming part of the Annual Report.

OUTLOOK:

The Companys outlook remains focused on sustainable growth through diversification of its business activities, improvement in operational efficiency, development of products and services in line with market requirements and expansion of its customer and business base.

The Company intends to continue exploring commercially viable opportunities in machinery and equipment and allied activities, while also evaluating opportunities arising from the sale of marketing rights and other potential business avenues.

The management believes that the Companys diversified business approach may enable it to respond more effectively to changing market conditions and emerging business opportunities.

RISKS AND CONCERNS:

The Companys operations are exposed to various business and operational risks, including market competition, demand fluctuations, changes in technology, availability and cost of raw materials and components, changes in consumer preferences, regulatory changes and general economic conditions.

The Companys diversification into different business activities also requires continuous assessment of the commercial viability and associated risks of each activity.

The management periodically reviews the Companys business operations and the associated risks and takes appropriate measures, wherever considered necessary, to minimise their potential impact on the Companys operations and financial performance.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has established internal control systems commensurate with the nature, size and complexity of its business operations.

The internal control framework is designed to ensure proper safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, timely preparation of reliable financial information and compliance with applicable laws and regulations.

The adequacy and effectiveness of internal controls are reviewed periodically by the management and appropriate corrective measures are undertaken wherever considered necessary.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The financial performance of the Company during the year under review should be read in conjunction with the Audited Financial Statements and the accompanying Notes to Accounts forming part of this Annual Report.

The operational performance of the Company is influenced by the scale of its machinery and equipment business, trading activities, marketing activities and sale of marketing rights, together with prevailing market and economic conditions.

The management continues to focus on improving operational efficiency, prudent cost management, effective utilisation of resources and development of additional business opportunities with a view to achieving sustainable improvement in the Companys financial performance.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Human resources continue to be an important component of the Companys operations. The Company endeavours to maintain a healthy and professional work environment and to provide appropriate opportunities for development and improvement of employee capabilities.

The Company maintains cordial relations with its employees and continues to focus on effective utilisation of human resources in accordance with its business requirements. Number of people employed during the reporting financial year is 15.

RATIOS:

The 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 is mentioned in Note No. 20 (viii) (xvii) viz., Details of Ratio as per Schedule III in the Audited Financial Statements forming part of the Annual Report.

CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, estimates, outlook and predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations.

Actual results could differ materially from those expressed or implied due to various factors, including changes in economic conditions, market demand, competition, technology, availability and cost of raw materials and components, regulatory changes and other factors beyond the Companys control.

The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events or otherwise, except as may be required under applicable laws and regulations.

	By Order of the Board of Directors
	For Svaraj Trading and Agencies Limited
	Name: Rekha Soni	Name: Harendra Gupta
Place: Mumbai	Designation: Director	Designation: Managing Director
Date: May 28, 2026	DIN: 05335667	DIN: 05335662