Svarnim Trade Udyog Ltd Management Discussions

A. Overview of the Global Economy:

The global economy in the past financial year has faced a mix of challenges and opportunities, with growth slowing to an estimated 2.8-3.0%, as reported by the IMF and World Bank. Advanced economies have experienced sluggish expansion, while emerging markets have displayed more resilience despite facing inflationary pressures, currency fluctuations, and geopolitical uncertainties.

For businesses like Svarnim Trade Udyog Limited, which operates across a wide range of sectors, including investments, textiles, chemicals, and IT solutions, the economic environment has provided both hurdles and avenues for growth. The demand for essential commodities, such as textiles, chemicals, and raw materials, has remained relatively stable, driven by the resilience of industries like manufacturing, infrastructure, and consumer goods. At the same time, Svarnims focus on technology-driven solutions has placed it in a favorable position to capitalize on the ongoing digital transformation, as businesses increasingly rely on software development, IT-enabled services, and cloud-based solutions.

While inflation and supply chain disruptions have posed challenges, especially in sectors such as raw materials and textiles, the companys diverse portfolio provides a buffer against economic downturns. Svarnims investments in technology and software development, along with its broad market reach in industries like chemicals and textiles, have positioned it to benefit from continued demand for innovative, cost-efficient solutions.

Despite global economic uncertainties, the long-term outlook remains cautiously optimistic. As sectors such as IT and software development continue to evolve, and demand for essential goods and services holds steady, Svarnim Trade Udyog Limited is well-positioned to navigate the complexities of the global economy and capitalize on emerging opportunities.

B. Overview of the Indian Economy:

Indias economy has shown strong resilience, with growth projected at around 6.0-6.5% in the past year, supported by robust domestic demand, infrastructure development, and a growing digital economy. The country remains one of the fastest-growing major economies, with significant strides in sectors like IT, manufacturing, and textiles.

Key sectors like IT and software development continue to thrive, providing a favorable environment for companies like Svarnim Trade Udyog Limited, which focuses on technology and investments. The governments push for digital transformation and initiatives like "Make in India" have created substantial growth opportunities in these fields.

While inflation and supply chain disruptions have posed challenges, the governments focus on economic reforms and infrastructure investment, along with the Reserve Bank of Indias monetary measures, have helped stabilize the economy. These developments align with Svarnims diverse business model, offering avenues for continued growth in both the domestic and international markets.

Indias strategic positioning in global trade and its ongoing investments in key sectors make it an attractive hub for investment, positioning Svarnim Trade Udyog Limited to benefit from the countrys long-term economic growth.

C. Outlook:

The coming year presents pricing challenges, especially with raw material costs and inflation. Svarnim Trade Udyog Limited will focus on offering new products that meet retail price points and exploring blends with manmade fibers to remain competitive. While the textile market is expected to stabilize within a quarter, the key to success will be differentiation through innovation and quality. By balancing cost efficiency with high standards, Svarnim can navigate this period of uncertainty. With a diversified portfolio and a focus on strategic adaptation, the company is well-positioned to capitalize on opportunities and continue its growth trajectory in the year ahead.

D. Industry Structure and Developments:

Indias economy grew by ~7.3% in FY 2023-24, but the textile export sector faced challenges, experiencing a decline for the second consecutive year, primarily due to geopolitical tensions affecting global trade. However, the outlook for FY 2024-25 is positive, with domestic demand remaining steady and large overseas retailers expected to resume inventory restocking, leading to a recovery in exports.

Cotton prices in India have eased, with higher domestic production expected to stabilize costs. However, the appreciation of the USD and adverse weather impacts on cotton crops in other major producing countries could limit price deflation. On the logistics front, shipping rates have cooled, and supply chain disruptions are gradually stabilizing, with geopolitical tensions in the Middle East expected to further normalize the situation.

Inflation continues to affect both manufacturers and consumers, leading to higher production costs across supply chains. The Indian textile sector, however, remains optimistic, with the market expected to exceed USD 209 billion by 2029. Government initiatives like the extension of the RoSCTL scheme and increased allocations for textile-related schemes, including the Cotton Corporation of India and the ATUFS, provide a positive outlook for the industry.

E. Opportunities and Threats:

Opportunities:

• Domestic Growth: Rising consumer demand creates strong potential for expansion in key sectors.

• Global Recovery: The expected rebound in global demand presents an opportunity for increased exports.

• Government Support: Continued government incentives like RoSCTL and funding for tech upgrades boost industry growth.

• Digital Transformation: Growing demand for IT services opens avenues for expansion in technology and consulting.

Threats:

• Geopolitical T ensions: Ongoing global conflicts could disrupt supply chains and trade.

• Raw Material Costs: Volatility in cotton and crude oil prices could increase production costs.

• Inflation: Rising inflation could squeeze margins and affect consumer purchasing power.

• Logistics Disruptions: Shipping delays and container shortages may continue to impact exports.

F. Segment-wise or Product-wise performance:

The Company is primarily engaged in single segment i.e. Trading and Distributors.

G. Future Outlook:

The future outlook for Svarnim Trade Udyog Limited is positive, driven by continued economic growth in India and global recovery across key sectors. The company is well-positioned to benefit from government initiatives, increasing demand for IT and digital services, and the rebound in textile exports. Strategic focus on innovation, cost-effective solutions, and expanding into new markets will help mitigate challenges like inflation and raw material cost fluctuations. With a diversified portfolio and a proactive approach to market trends, Svarnim is poised for steady growth in the coming years.

H. Risks and Concerns:

• Geopolitical Instability: Ongoing global tensions could disrupt supply chains and impact international trade.

• Fluctuating Raw Material Prices: Volatility in cotton, crude oil, and other key inputs may affect production costs and margins.

• Inflationary Pressures: Rising inflation could reduce consumer purchasing power and squeeze profit margins.

• Regulatory Changes: Shifts in government policies or taxes could affect business operations and profitability.

• Supply Chain Disruptions: Although improving, logistical challenges, such as shipping delays, could still impact timely deliveries and exports.

• Currency Risk: Fluctuations in exchange rates may impact the cost of imports and international revenues.

I. Material Developments in Human Resources / Industrial Relations:

The company continues to view its employees as its most valuable asset, integral to its competitive success. A well-structured HR policy fosters a positive work environment, offering equal opportunities, inclusive growth, and alignment of individual goals with the organizations vision. The HR division plays a pivotal role in developing a skilled workforce by providing ongoing professional and personal growth opportunities. Comprehensive employee engagement and training programs are in place to enhance productivity, improve skills, and nurture a strong talent pool, ensuring continued organizational success.

J. Internal control systems and their adequacy

The company has established a robust internal control system that is tailored to the complexity and evolving risks of its business operations. These controls ensure the reliability of financial information, timely reporting of both operational and financial transactions, and the safeguarding of assets. Additionally, the internal control systems ensure strict adherence to applicable laws and regulations. The companys internal auditors play a key role in the regular monitoring and review of these controls, ensuring that any risks are effectively managed and that compliance is maintained at all times.

K. Discussion on financial performance with respect to operational performance

The financial performance of the Company for the Financial Year 2024-25 is described in the Directors Report of the Company.

L. Key Financial Ratios:

In accordance with the SEBI (Listing Obligations and Disclosures Requirements) Regulations 2018 (Amendment) Regulations, 2018, 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. In this regard, the Company has no significant changes in any key sector specific financial ratios to report.

M. Material developments in Human Resources / Industrial Relations front including number of people employed

The cordial employer - employee relationship also continued during the year under the review. The Company has continued to give special attention to human resources.

N. Caution Statement

Statements made in the Management Discussion and Analysis describing the various parts may be "forward looking statement" within the meaning of applicable securities laws and regulations. The actual results may differ from those expectations depending upon the economic conditions, changes in Govt. Regulations and amendments in tax laws and other internal and external factors.

Registered Office:		By the Order of the Board of
3A Mangoe Lane, 1st Floor Surana House,		Svarnim Trade Udyog Limited
Kolkata, West Bengal - 700 001
	Sd/- Surbhi Aggarwal	Sd/- Sangeeta Aggarwal
Place: Kolkata	Whole-time Director	Director
Date: 28th August, 2025	DIN:08409763	DIN:10252827