T. Spiritual World Ltd Management Discussions

Pursuant to Listing Regulation of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 aligned with Companies Act, 2013, the Management Discussion & Analysis Report for the year under review is given below;

Background

The Management Discussion and Analysis Report sets out the developments in the business, the

Companys performance since the last Report and the future outlook. This Report is part of the Directors

Report and the Audited Financial Statements, forming part of the Annual Report. However, certain statements made in this Report relating to the projections, outlook, expectations, estimates, etc. may constitute "forward looking statements" within the meaning of applicable laws and regulations and may differ from actual. Several factors could make a significant difference to the Companys operations, including climatic conditions, economic conditions affecting demand and supply, government regulations, revision in government policies, taxation and natural calamities over which the Company does not have any control.

Business Segment

T. Spiritual World Limited is to search the new avenue to engage in the business of trading and dealing in other concern activities in the Indian domestic market. The Company adherence to strong business ethics and transparent corporate policies, with a stable political environment, this is probably the most conducive period for a steady pace of implementation of policy reforms.

Review of Operation

The Company operates mainly in Indian Market. The management of T. Spiritual World Limited presents the analysis of performance of the Company for the Financial Year 2024-2025 and its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic and other developments. The Company has managed to maintain a growth trajectory in its financial performance in the current year. During the year under review, the Company achieved the total revenue of Rs. 0.72 Lakh.

Outlook for world trade in 2025 and 2026

At the start of the year, WTO economists expected to see continued expansion of world trade in 2025 and 2026, with merchandise trade volume growth picking up gradually over time in line with GDP, and commercial services trade volume growing even faster. A profusion of new tariff measures announced and implemented since January prompted WTO economists to re-examine the trade landscape, resulting in a significant downgrade to the outlook for merchandise trade, and a smaller reduction in the outlook for services trade.

The recent tariff disturbances follow a strong year for world trade in 2024 where merchandise trade grew 2.9% and commercial services trade rose 6.8%. Meanwhile, market-weighted world GDP grew 2.8%, making 2024 the first year since 2017 (excluding the rebound from the COVID-19 pandemic) where merchandise trade grew faster than output.

Drivers of trade and output

Macroeconomic conditions were more favourable in 2024 for the expansion of global trade than in 2023, notably because of the global easing of inflation. High inflation in 2023 undermined real incomes, which supressed trade and had a more pronounced impact on manufactured goods and in Europe, due to the sharp rise in energy prices.

At the beginning of 2025, the expectation was that macroeconomic conditions would continue to support global trade expansion in 2025 and 2026. Inflation was expected to decline further, boosting real incomes and allowing interest rates to ease somewhat, with additional positive effects on global demand.1 A reduction in real interest rates would prompt investment spending, which is intensive in imports.

Global trade to hit record $33 trillion in 2024, but uncertainties over tariffs loom

However, concerns loom for 2025, where the risks include escalating trade wars, geopolitical tensions and shifting policies, clouding the outlook.

According to the UN trade and development body (UNCTAD)s Global Trade Update, the projected figure for this year marks a $1 trillion increase over 2023, driven by robust 3.3 per cent annual growth.

A significant contributor was trade in services, which surged by seven per cent, accounting for half of the total expansion and adding $500 billion to global trade value. Goods trade, while growing at about 2 per cent, has remained below its 2022 peak.

Risks of change in US policies

Countries most exposed to changes in US trade policy are likely those with large trade surpluses with the country and higher tariff barriers. Based on 2023 figures for trade in goods, these include China (about $280 billion trade surplus), India ($45 billion), the European Union ($205 billion) and Viet Nam ($105 billion), according to UNCTAD.

Other nations with trade surpluses, including Canada ($70 billion), Japan ($70 billion), Mexico ($150 billion) and the Republic of Korea ($50 billion), may also face some risks, despite imposing relatively lower tariffs on US imports or having established trade agreements with the country.

Adding to the uncertainty is the trajectory of the US dollar and macroeconomic policy shifts, add to global trade concerns.

Our World Economic Outlook

Forecast includes tariff announcements between February 1 and April 4 by the US and countermeasures by other countries. This reduces our global growth forecast to 2.8 percent and 3 percent this year and next, a cumulative downgrade of about 0.8 percentage point relative to our January 2025 WEO update. We also present a global forecast excluding the April tariffs (pre-April 2 forecast). Under this alternative path, global growth would have seen only a modest cumulative downgrade of 0.2 percentage point, to 3.2 percent for 2025 and 2026.

Finally, we include a model-based forecast incorporating announcements made after April 4. Over that period, the United States temporarily halted most tariffs while raising those on China to prohibitive levels. This pause, even if extended indefinitely, does not materially change the global outlook compared to the reference forecast. This is because the overall effective tariff rate of the United States and China remains elevated even if some initially highly tariffed countries will now benefit, while policy-induced uncertainty has not declined.

Despite the slowdown, global growth remains well above recession levels. Global inflation is revised up by about 0.1 percentage point for each year, yet the disinflation momentum continues. Global trade was quite resilient until now, partly because businesses were able to re-route trade flows when needed. This may become more difficult this time around. We project that global trade growth will dip more than output, to 1.7 percent in 2025 a significant downward revision since our January 2025 WEO Update.

Opportunities and Threats

Opportunities a) Favorable Government regulations b) Favorable macro-economies and micro-economies conditions c) Steady arrival in the market from farmers in such a way they are getting the benefit of the increase in prices. d) Surging demand from the Pharmaceutical Industry for dietary supplements, sales have risen over the past few months. e) Demand from health drinks, beverages, ice cream, and bakery products gained to improve the fiber content. f) Niche for growth

Threats a) Imports from China and other cost effective labour countries b) Competition in the Indian market from large traders c) Geographically located in East India and presently not covering pan India d) Increase cost of operations e) The increase in the price of Isabgol has led to a shift towards alternative natural fibers such as guar gum and tamarind kernel powder. The Isabgol industry in India is expected to face challenges from the increasing use of synthetic fibers and the adoption of alternative natural fibers by the food, industry.

Risk and Concerns

Uncertainties in business offer opportunities and downside risks. Consequently, the Company recognizes the importance of well-structured system to identify and manage the different elements of risk.

Pressure on margins, high manpower and infrastructure cost, availability of substitutes, higher overheads, are some factors which could impact adversely especially as we strive to tap into the competitive markets.

Basis of preparation and presentation of our Financial Statements

The Financial Statements have been prepared and presented under the historical cost convention, unless otherwise specifically stated, on the accrual basis of accounting and comply with the applicable accounting standards referred to in the Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

Internal Financial Control and their Adequacy

The Company has in place well-defined internal control mechanisms and comprehensive internal audit programs with the activities of the entire organization under its ambit.

Human Resources

Human Resources Development envisages the growth of the individual in tandem with the organization. It also aims at the upliftment of the individual by ensuring an enabling environment to develop capabilities and to optimize performance. Your Directors want to place on record their appreciation for the contribution made by employees at all levels, who through their steadfastness, solidarity and with their co-operation and support have made it possible for the Company to achieve its current status

The Company, on its par, would endeavor to tap individual talents and through various initiatives, ingrain in our human resources, a sense of job satisfaction that would, with time, percolates down the line. It is also the endeavor of the Company to create in its employees a sense of belonging, and an environment that promotes openness, creativity and innovation.

Material Developments in Human Resources

Our professionals and employees are our most important assets. We believe that the quality and level of service that they deliver is a huge contributing factor in growth and development of the Company. Further, for better management certain alterations were made in the top management and other hierarchies in the Company.

Discussion of Financial Performance

Directors of your Company are very hopeful to build up the performance of the company and post better results in the forthcoming financial year and to add value to the shareholders. The Company is hopeful of improving its turnover and bottom line and hopeful of posting better revenue ahead. Financial Highlights with respect to Operational Performance is as under:

Particulars	2024-2025	2023-2024	2022-2023
Profit Before Tax	(20.11)	(19.37)	(18.25)
Profit after Tax	(20.11)	(19.37)	(18.25)
Earnings Per Share (Rs.)	(0.10)	(0.10)	(0.09)

Details of Significant Changes: -

Sl. No.	Particular	F.Y. 24-25	F.Y. 23-24	Numerator	Denominator	Variation in %	Reason
1	Current Ratio	2.376	12.083	Current Assets	Current Liabilities	-80.33	This is due to decrase in Current Assets and increase in Current Liabilities
2	Debt Equity Ratio	-	-	Total Debt	Shareholders Equity	NA	NA
3	Debt Service Coverage Ratio	NA	NA	Net Operating Income	Total debt Service	NA	NA
4	Return on Equity Ratio	-0.151	-0.126	Net Profit After Tax	Shareholders Equity	19.48	NA
5	Inventory Turnover Ratio	NA	NA	Cost of Goods Sold	Average Inventory	NA	NA
6	Trade Receivale Turnover Ratio	-	-	Average Receivable*12	Income from Operation	NA	NA
7	Trade Payable Turnover Ratio	NA	NA	Avereage Payable*12	Net Credit Purchases	NA	NA
8	Net Capital Turnover Ratio	-	-	Sales	Net Assets	NA	NA
9	Net Profit Ratio	-27.927	-26.898	Net Profit After Tax	Total Revenue	3.83	NA
10	Return on Capital Employed	-0.151	-0.126	Earnings before Interest and Tax	Capital Employed	19.48	NA
11	Return on investments	-	-	Differce in amount of investments	Initial Investments	NA	NA

NA - Not Applicable

Cautionary Statement

Statements made in the Management Discussion and Analysis Report describing the Companies objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement important factors that influence the Companys operations, include global and domestic supply and demand conditions. We undertake no obligation to publicly update any forward looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward looking statements that speak only of their dates.