Yaan Enterprises Ltd Management Discussions

INDUSTRY STRUCTURE & DEVELOPMENT

The Company operates across a diversified range of business activities, principally comprising Trading of Goods, Construction, Travel & Tourism, and Jewellery & Gems. The industry structure is therefore characterised by different market dynamics, competitive conditions and regulatory environments across each segment.

The financial year 2025-26 witnessed a significant improvement in the Companys operating performance, primarily driven by a substantial increase in revenue from the Trading of Goods segment. The Companys total income from operations increased to 2,442.98 lakhs during FY 2025-26 from 541.34 lakhs in the previous financial year, representing a growth of approximately 351.3%.

The growth in revenue was accompanied by a substantial improvement in profitability. Profit before tax increased to 107.76 lakhs from 39.21 lakhs in FY 2024-25, representing an increase of approximately 174.8%.

SEGMENT-WISE PERFORMANCE

During the year, 3.74% of total revenue came from Tour& Travel operations and Construction and Trading of Goods which consist of 96.26 % of total revenue. The Company has earned total revenue of Rs. 2456.52 Lakhs as compared to Rs. 550.50 Lakhs as in previous year. Profit after Tax (PAT) for the financial year 2024-25 is Rs. 78.16 Lakhs as compared to the previous financial year PAT Rs. 45.85 Lakhs.

OUTLOOK, OPPORTUNITIES AND THREATS

The Companys outlook remains positive, supported by the significant growth in the Trading of Goods segment and improved performance of the Travel & Tourism segment during FY 2025-26. The Company sees opportunities for further expansion of its trading activities, improvement in operational efficiencies, growth in tourism-related services and selective participation in viable construction projects. At the same time, the Company remains mindful of challenges arising from intense competition, fluctuations in input and commodity prices, working-capital and finance costs, regulatory changes, economic and geopolitical uncertainties and risks associated with the travel and construction sectors. Management will continue to pursue sustainable and profitable growth through prudent financial management, cost control, efficient utilisation of resources and effective risk management.

RISK & CONCERNS

The Companys operations are subject to various business and economic risks, including fluctuations in market demand, competition, changes in commodity and input prices, credit and counterparty risks, working-capital requirements, fluctuations in interest and financing costs, regulatory and taxation changes, and general economic and geopolitical uncertainties. Management regularly reviews these risks and takes appropriate measures to mitigate their potential impact. The Company remains committed to maintaining effective internal controls and continuously monitoring financial and operational risks to ensure sustainable business operations.

INTERNAL CONTROL SYSTEMS

The Company has an adequate system of internal controls commensurate with the size, scale and complexity of its operations. The internal control framework is designed to safeguard the Companys assets, ensure accuracy and reliability of financial reporting, promote operational efficiency and ensure compliance with applicable laws and regulations. The controls are periodically reviewed by the Management and necessary corrective measures are taken wherever required. The Company remains committed to continuously strengthening its internal control systems and processes to support effective risk management and sustainable business operations.

The Audit Committee reviews the reports of the Internal Auditors and monitors the effectiveness and operational efficiency of these internal control systems. The Audit Committee gives valuable suggestions from time to time for improvement of the Companys business processes, systems and internal controls.

FINANCIAL PERFORMANCE

The annexed Balance Sheet has given the members, the Companys performance in the year under report.

KEY FINANCIAL RATIO

FINANCIAL RATIO PARTICULARS	31ST March 2026
Current Ratio	2.74 %
Debt-Equity Ratio	106.57 %
Debt Service Coverage Ratio	25.16 %
Return on Equity Ratio	15.79 %
Inventory Turnover Ratio	0.00 %
Trade Receivables Turnover Ratio	3.58 %
Trade Payables Turnover Ratio	5.96 %
Net Capital Turnover Ratio	2.23 %
Net Profit Ratio	3.18 %
Return On Capital Employed	17.61 %

HUMAN RESOURCES MANAGEMENT

The Companys belief in trust, transparency and teamwork improved employee efficiency at all levels. Companys commitment to harmonious industrial relations resulted in enhancing effectiveness of operations and enabled the achievement of international benchmarks in tourism business The companys ongoing objective is to create an inspirational work climate where talented employees engaged in creating sustained value for the stakeholders. Training and orientation programs are being arranged periodically, to update the employees in the work techniques, The overall human resources are positive and would be able to effectively achieve the desired objectives. The Company has developed an environment of harmonious and cordial relations with its employees. As on March 31st 2026 the Company has a total of 4 full time employees across all its business segments.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys position, objectives, projections, estimates and expectations may be "forward looking statements" within

the meaning of applicable law and regulations. Actual results might differ substantially or materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, inter-alia, change in tourism policy of the Government, natural calamities, change in political and economic conditions, change in Government policies and regulations, tax laws and other statues, market and other risks, risk inherent in successfully implementing companys growth strategy, dependence on certain patrons and other factors over which the company does not have any direct control.

Ranjith Soman

Chairman cum Managing Director

DIN: 01714430