Varyaa Creations Ltd Management Discussions

ANNEXURE B

Your Directors have pleasure in presenting the Management Discussion and Analysis Report for the financial year ended 31st March 2026.

The Company is engaged in the manufacturing and import-export of high-quality jewellery and precious gems, with a focus on customised handcrafted jewellery, certified diamonds and high-grade gemstones. The

Company serves both domestic and international markets and continues to focus on product quality, design innovation, customer relationships and operational efficiency.

During the financial year under review, the jewellery industry continued to operate in a dynamic environment characterised by fluctuations in precious metal and gemstone prices, changing consumer preferences, evolving international trade conditions and heightened competition. Against this backdrop, the Company continued to focus on strengthening its product offerings, maintaining quality standards and developing its domestic and international business relationships.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The global gems and jewellery industry remains an important component of the luxury and lifestyle sector. The industry encompasses the sourcing and processing of precious metals and gemstones, manufacturing of jewellery, wholesale and retail distribution, and international trade.

The sector continues to be influenced by precious metal prices, consumer spending patterns, global economic conditions, currency movements, geopolitical developments and changing preferences towards branded, customised and responsibly sourced jewellery.

Global Developments

During FY 2025-26, the global jewellery industry continued to witness changing demand patterns across major markets. While economic uncertainties and elevated precious metal prices remained challenges for the industry, demand for differentiated, customised and high-quality jewellery remained consumer markets.

Some of the key developments and trends influencing the industry include:

• Increasing consumer preference for certified diamonds, gemstones and high-quality jewellery ;

• Continued demand for customised, handcrafted and bespoke jewellery;

• Increasing adoption of digital platforms and e-commerce channels for jewellery discovery and sales;

• Growing awareness regarding ethical sourcing, transparency and traceability of precious metals and gemstones;

• Increasing acceptance and demand for lab-grown diamonds, particularly in selected consumer segments;

• Greater use of technology, including digital design tools, computer-aided design and virtual customer engagement, to improve product development and customer experience.

The global jewellery market continues to present opportunities for manufacturers and exporters with strong design capabilities, quality standards, reliable sourcing and established customer relationships.

Indian Market Developments

India continuestobe significantglobal centre for the gems and jewellery industry, with a strong ecosystem comprising manufacturers, processors, wholesalers, retailers and exporters. The countrys skilled workforce, established manufacturing capabilities and long-standing expertise in diamond processing and jewellery manufacturing provide a strong foundation for the sector.

The domestic jewellery market continues to evolve with increasing consumer awareness, preference for branded and certified products, demand for customised designs and greater adoption of digital channels.

The Indian jewellery industry is also witnessing increased emphasis on quality, hallmarking, certification and transparency in sourcing. Export-oriented businesses continue to monitor developments in key international markets, foreign exchange movements and changes in trade policies.

Key Trends During FY 2025-26 Digital Transformation:

Digital platforms continue to play an important role in product showcasing, customer engagement and market development. Jewellery businesses are increasingly adopting digital tools for design, marketing and customer interaction.

Customisation and Design Innovation:

Demand for customised and differentiated jewellery continues to provide opportunities for manufacturers with strong design and manufacturing capabilities. Bespoke designs and products catering to specific customer requirements remain an important area of opportunity.

Certified and Responsible Jewellery:

Consumers are increasingly seeking greater assurance regarding the quality, authenticity and sourcing of diamonds, gemstones and precious metals. Certification and transparency are therefore becoming increasingly important factors in the purchasing decision.

Precious Metal Price Volatility:

Fluctuations in gold and other precious metal prices continue to influence consumer demand, inventory costs and margins across the jewellery value chain. Effective inventory and working capital management remain important for industry participants.

International Markets:

Demand from international markets continues to provide growth opportunities for Indian jewellery manufacturers and exporters. However, global economic conditions, currency movements, geopolitical developments and changes in trade policies remain important factors affecting export business.

SEGMENT-WISE PERFORMANCE

The Company operates predominantly in a single business segment, i.e., manufacturing and import-export of jewellery and precious gems. Accordingly, separate segment-wise reporting is not applicable.

The Company continues to focus on strengthening its jewellery manufacturing capabilities, improving product quality and expanding its customer base in domestic as well as international markets.

FINANCIAL PERFORMANCE

During the financial year ended 31st March 2026, the Company recorded a net loss of 43.83 lakh, as compared to a net profit of 42.06 lakh during the previous financial year ended31st March 2025.

The change in profitability was primarily impacted by the challenging operating environment, fluctuations in precious metal and gemstone prices, competitive market conditions and other factors affecting the Companys business during the year.

The management continues to focus on improving operating efficiencies, strengthening margins, optimising costs and enhancing the Companys business performance.

OPPORTUNITIES AND THREATS Opportunities

Growing demand for customised, handcrafted and differentiated jewellery;

Increasing consumer preference for certified diamonds and gemstones;

• Expansion of digital and e-commerce channels for jewellery sales and customer engagement;

Opportunities to strengthen the Companys presence in international markets;

• Growing demand for Indian jewellery designs and craftsmanship in overseas markets;

Scope for product diversification and introduction of new designs and collections;

Increasing emphasis on quality, certification and responsible sourcing.

Threats

• Volatility in gold, precious metal and gemstone prices;

Foreignexchange and margins;

• Changes in import duties, export regulations and other government policies;

Geopolitical tensions and global economic uncertainties affecting international trade;

• Changes in consumer preferences and increasing competition in domestic and international markets;

• Working capital and inventory risks associated with the jewellery business.

OUTLOOK

The outlook for the jewellery industry remains cautiously optimistic, supported by continued consumer interest in jewellery, demand for customised and certified products and opportunities in both domestic international markets.

For FY 2026-27, the Company intends to focus on improving operational efficiency, strengthening its product portfolio, enhancing customer relationships and expanding its presence in selected domestic and international markets. The Company will continue to focus on customised and handcrafted jewellery and certified diamonds and gemstones, while exploring opportunities to strengthen its digital presence and market reach.

The Company remains conscious of the challenges arising from precious metal price volatility, global economic conditions and competitive pressures. Accordingly, the management will continue to adopt prudent cost, inventory and working capital management measures with the objective of improving profitability and achieving sustainable growth.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established internal control systems commensurate with the size and nature of its operations. These controls are designed to ensure the reliability of financial reporting, safeguarding of assets, operational efficiency and compliance with applicable laws and regulations.

The internal control framework is periodically reviewed by the management and appropriate measures are undertaken wherever necessary to strengthen the effectiveness of such controls.

The Audit Committee, wherever applicable, also reviews the adequacy and effectiveness of the internal control systems and financial reporting processes of the Company.

HUMAN RESOURCES / INDUSTRIAL RELATIONS

Human resources continue to be an important component of the Companys operations. As on 31st March 2026, the Company had 9 employees, including the Chief Financial Officer and Company Secretary .

The Company maintains cordial relations with its employees and continues to focus on providing a conducive working environment and developing employee capabilities in line with the requirements of its business.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations or 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.

Important factors that could make a difference to the Companys operations include economic conditions affecting demand and supply, fluctuations in prices of gold, precious metals and gemstones, changes consumer preferences, competition, currency fluctuations, domestic and international market conditions, changes in Government policies, laws and regulations, taxation and trade policies, geopolitical developments and other incidental factors beyond the Companys control.

	For Varyaa Creations Limited
	Pooja Naheta
Place: Mumbai	Managing Director
Date: 02nd September, 2026	DIN: 03548285