Yuranus Infrastructure Ltd Management Discussions

ECONOMIC OVERVIEW

Global Economy

The global economy maintained steady growth in FY 2024-25, despite challenges posed by geopolitical uncertainties, trade disruptions and inflation. Infrastructure investments and policy measures played a key role in supporting economic stability, allowing major economies to adapt to shifting conditions. However, growth patterns varied across regions, with advanced economies expanding at a slower pace of 1.7% in both 2024 and 2025, primarily due to the impact of high interest rates. In contrast, Emerging Markets and Developing Economies (EMDEs), particularly in Asia, demonstrated resilience by achieving growth rates of 4.4% in 2024 and 4.2% in 2025. The presence of supply chain vulnerabilities compelled businesses and governments to reassess their trade dependencies and adopt more effective strategies to enhance stability. Although inflation eased compared to previous years, it remained a concern, prompting central banks to take a careful approach to monetary policy.

WORLD ECONOMIC OUTPUT (%)

Looking ahead, global economic growth is projected to be supported by sustainability initiatives and continuous innovation. Although risks such as policy uncertainty, geopolitical tensions and monetary policy tightening persist, the global economy is expected to remain stable at 3.3% in both 2025 and 2026. Inflation is projected to decline from 4.2% in 2025 to 3.5% by 2026, with advanced economies anticipated to achieve their inflation targets ahead of emerging markets. Growth in advanced economies is expected to be moderate, with rates of 1.9% in 2025 and 1.8% in 2026. Meanwhile, Emerging Markets and Developing Economies (EMDEs), led by China and India, are projected to maintain steady growth rates of 4.2% and 4.3%, respectively.

The global push for a sustainable future has been gaining momentum, supported by rising investments in renewable energy. However, volatility in energy markets continues to pose challenges, affecting supply chains and overall economic stability. The United States has introduced a new reciprocal tariff policy, imposing a 26% tariff on over 180 countries, including India. This marks a significant change in global trade and may create challenges for the Indian economy while also promoting strategic adaptability. Higher import costs may lead to increased consumer prices worldwide. Despite these uncertainties, economies are expected to remain resilient by adopting technological advancements and executing well-planned strategic policies.

Indian Economy

India has become one of the fastest-growing major economies, driven by strong domestic demand, structural reforms, and supportive policies. However, in FY 2024-25, global economic uncertainties, rising geopolitical tensions and persistent inflationary pressures impacted Indias growth, and affected the growth role. According to Ministry of Statistics and Programme Implementation (MOSPI)s second advance estimates, the economy grew by 6.5% year-on-year (YoY) in FY 2024-25, slower than the 9.2% growth recorded in FY 2023-24.

Despite this moderation, India remained on a steady growth path, supported by strong manufacturing, expanding services and increased infrastructure investments. Government initiatives promoting digital transformation, financial inclusion and ease of doing business further strengthened the economy. The Production-Linked Incentive (PLI) schemes encouraged domestic manufacturing and attracted significant foreign direct investment (FDI), particularly in sectors like electronics, automotive and renewable energy.

While global demand fluctuations affected external trade, strong export growth in key sectors such as pharmaceuticals, textiles and engineering goods provided stability. Additionally, efforts to diversify trade and sign free trade agreements (FTAs) helped reduce external risks. Rising urbanisation and a growing middle class also contributed to increased consumer spending across various sectors. Building on this momentum, Indias economy is projected to grow at 6.5% in FY 2025-26.

Indian GDP Growth Rate (in %)

Inflationary pressures remained a concern in FY 2024-25, primarily due to global supply chain disruptions and commodity price volatility. RBI announced that the repo rate would be reduced by 25 basis points to 6%, following a unanimous decision by the Monetary Policy Committee (MPC). Previously, the repo rate stood at 6.25% and was last cut during the monetary policy review in February 2025. The decision was taken amid evolving global economic conditions, particularly concerns arising from US reciprocal tariffs on major economies, which have contributed to global growth uncertainties. Despite this adjustment, the MPC retained a "neutral" stance to ensure flexibility in addressing macroeconomic changes. Meanwhile, Consumer Price Index (CPI) inflation for FY 2024-25 is projected at 4.9% as compared to 5.4% in FY 2023-24 and is further projected to decline to 4.0% in FY 2025-26. However, key risks such as geopolitical tensions, fluctuations in global commodity prices and financial market uncertainties could influence economic growth prospects.

Going forward, Indias economic outlook remains positive, with growth projections staying above the global average. The governments initiatives, including the Production-Linked Incentive (PLI) scheme and the promotion of electric mobility, are playing a significant role in driving economic growth. Additionally, continued investments in infrastructure, renewable energy and digital transformation are expected to support the countrys long-term expansion. India is well-positioned to continue its growth trajectory and establish itself as a leading economic powerhouse by maintaining fiscal discipline, imparting a culture of innovation, and strengthening global partnerships.

BUSINESS SCENARIO

India is a fast growing major economy. The Government has taken significant initiatives to strengthen the economic credentials of the country. Various measures have been announced by Government providing economic relief, strengthening the health system and providing impetus to growth and employment. With the vaccination-programmes having covered the bulk of the population, economic momentum building back and the likely long-term benefits of supply-side reforms in the pipeline, the Indian economy is expected to gain momentum. The various initiatives of Central Bank have infused liquidity into the banking system to nurture nascent growth impulses and support a durable recovery.

The increase in global demand as the world economy recovers from pandemic and Russian -Ukraine war led to increase in crude prices, which also impacted the domestic economy. The government through various initiatives/reforms, inter-alia, deregulation of numerous sectors, simplification of process and privatization has helped in reducing the imbalance of demand and supply in the overall economy. A rise in domestic investments has been one of the most significant contributions to the Indian growth story and the public and private sectors have enabled and sustained these investments.

Apart from being a critical driver of economic growth, Foreign Direct Investment (FDI) has been a major non-debt financial resource for the economic development of India. The Governments favourable policy regime and robust business environment has ensured inflow of the foreign capital. Inflation is expected to remain elevated due to volatile commodity and crude prices on the back of geopolitical tensions due to the Russia-Ukraine conflict.

India has undertaken a number of reforms, such as formalization of its economy, incentivizing domestic manufacturing, digitalization, import substitution, increasing exports which has helped in providing flexibility to the government in terms of monetary policy. With an improvement in the economic scenario, there have been investments across various sectors of the economy. The Indian economy is poised to grow at a quick pace backed by various initiatives taken by the government. Initiatives under Atma Nirbhar Bharat including introduction of structural and procedural reforms, record vaccinations, various PLI schemes designed to attract investments, Make-in- India programme to boost domestic manufacturing capacity, reduction of corporate tax rate, etc and steps to improve operational efficiency have helped the economy to grow.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The cotton trading industry in 2024-25 is characterized by a diversified value chain, including cotton growers, ginners, traders, exporters, and textile mills. India, China, the US, and Brazil remain major global cotton producers, with India being a key player in both cultivation and export. The industry involves organized commodity exchanges, spot and forward markets, and government-regulated agencies shaping pricing and quality standards.

Key Developments (FY 2024-25):

Market Volatility: Global economic uncertainties, climate change, and shifting trade relations (such as the US-China trade landscape) continue to impact cotton prices and trade flows.

Sustainability Initiatives: There is an increased shift towards sustainable cotton-organic, BCI (Better Cotton Initiative), and regenerative farming practices are in focus due to growing ESG (Environmental, Social, and Governance) compliance from international buyers.

Digitalization: Adoption of digital platforms for cotton trading is accelerating, with improvements in traceability, logistics management, and real-time market analytics enhancing transparency and transactional efficiency.

Government Policy: Support measures in major producing countries, such as MSP (Minimum Support Price) in India and export subsidies in the US, shape both domestic supply and global competitiveness. New policies regarding crop insurance and support for climate-resilient varieties have been prominent this year.

Export & Import Trends: Demand recovery in global markets, particularly from Southeast Asia, continues, though supply chain disruptions occasionally affect delivery schedules. Indian exports have remained competitive due to currency advantages.

Price Trends: Cotton prices have exhibited moderate volatility, influenced by weather patterns, shifting acreage, and consumption growth in the textile sector.

COMPANY OVERVIEW

Yuranus Infrastructure Limited, formerly known as Pankhil Finlease Limited was incorporated on 22nd February 1994 as a Non Banking Financial Company (NBFC) with the object of carrying the business of Leasing, Hire Purchase, Financing, Trading, Merchant banking and Advisors to the Public Issue. The companys business activities included financing the business via Joint Venture, partnerships, mutual agreement and carry on the business or transaction which may seem capable of being carried on or conducted so as, directly or indirectly to benefit the company. The company deals with financing of all kind of immovable and movable property including lands and buildings, plants and machinery, equipments, automobiles, computers and all consumers commercial and industrial items.

With the growth in the infrastructure, real estate field and textile sector, the Company wanted to increase its portfolio of activities in the same sector and wanted to focus on the infrastructure, real estate and textile sector as the main business activity. The Company wanted to act as promoters, organizers, developers and traders of land, estate, property, cooperative housing societies, association, housing schemes, shopping-office complexes, townships, farms, farm houses, holiday resorts, hotels, motels and to finance with or without security for the same and to deal with and improve such properties either as owners or as agents. and so, the Company surrendered its NBFC license and changed the name to Yuranus Infrastructure Limited on dated 17 April 2012 to carry out the new business purpose. The same has been informed to the respective regional stock exchange where the company is listed and the respective Registrar of Companies.

OPPORTUNITIES

The textile industry has been an integral part of human civilisation, catering to one of our basic needs clothing. It is the place where art, technology, and commerce intersect to create fabrics that clothe us and furnish our homes, along with a myriad of other uses we dont even realise.

The textile industrys outlook for 2025 and beyond is characterised by a strong emphasis on sustainability, incorporating both natural and synthetic fibres, prioritising yarn quality, embracing technical textiles and digital printing, and maintaining a resolute dedication to creating a more environmentally friendly and ethical future. Looking ahead, we anticipate that the Indian textiles market will exceed a valuation of $ 209 billion by 2029. The textile sector remains resilient by evolving to meet the demands of a changing world, actively embracing innovation, sustainability, and consumer preferences to maintain its enduring relevance.

Indias textile industry stands at the cusp of preparing for Budget 2025 amid a gloomy global environment and considerably promising growth prospect. Ranked as the sixth-largest exporter of textiles and apparel globally, India eyes increasing its textile exports to $600 billion by 2047, up from $44 billion in FY22. Geopolitical tension and shifting consumer behaviors have been some major factors that make earning such targets very difficult.

In addition, the Ministry of Textiles is looking at revitalizing the Scheme for Integrated Textile Parks with the objective of inventing internationally designed standards of new parks. The scheme has so far approved 54 textile parks and intends to increase infrastructures that augment operational efficiencies across the textile value chain.

The captains complain that there is a grave necessity for policy measures that will raise the resilience in supply chains, development of skills and technology, and market diversification. They say that through correct support in policy shadows and strategic investments, the Indian textile industry will survive the current turmoil and make the best of the emerging world opportunities.

THREATS, RISKS AND CONCERNS

While the Indian textile industry holds significant potential, it also faces several challenges that need to be addressed for sustained growth and competitiveness. Some key challenges are:

Global Competition: The Indian textile industry faces intense competition from other textile manufacturing countries, such as China, Bangladesh, Vietnam, and Indonesia. These countries often have lower labor and production costs, making them more cost-effective for buyers. To remain competitive, the Indian textile industry needs to focus on improving productivity, reducing costs, and enhancing product quality.

Infrastructure Bottlenecks: Inadequate infrastructure, including transportation, logistics, and power supply, poses a challenge for the textile industry. Delays in delivery, higher transportation costs, and frequent power disruptions can impact operational efficiency and overall competitiveness.

Skill Gap: The availability of a skilled workforce is crucial for the growth of the textile industry. However, there is often a disparity between industry requirements and the skills possessed by the available workforce. Bridging the skill gap through vocational training, upgrading educational curricula, and promoting research and development is essential to cater to the evolving needs of the industry.

Compliance with Standards and Regulations: Meeting the stringent quality and safety standards set by importing countries can be a challenge for Indian textile manufacturers. Adhering to environmental regulations and ethical labor practices also requires significant investment in technology and infrastructure. To access international markets and ensure sustainable growth, the industry must comply with global standards.

Access to Finance: Access to affordable finance remains a challenge for small and medium-sized textile enterprises. Limited access to credit and high interest rates can impede investment in modern machinery, technology upgrades, and infrastructure development. Ensuring better access to finance for the textile industry, particularly for small-scale enterprises, can spur growth and innovation.

Raw Material Availability: The availability and cost of raw materials, such as cotton, silk, and synthetic fibers, can fluctuate significantly, impacting the cost of production. Diversifying the sources of raw materials, promoting research in sustainable fibers, and improving agricultural practices can help mitigate these challenges.

Complex Tax Regulations: Historically, the Indian textile industry has faced complex tax structures, including multiple taxes at different levels, which can lead to increased compliance costs and administrative burden. The introduction of the Goods and Services Tax (GST) in 2017 aimed to simplify the tax regime, but streamlining and further simplifying tax regulations would support the growth of the industry.

Market Volatility and Uncertainty: The global textile market is influenced by various factors, including economic fluctuations, political stability, and changing consumer preferences. Uncertainty in demand and market volatility can impact the industrys growth prospects. Businesses need to stay agile, invest in market research, and continually innovate to address changing trends and preferences.

OUTLOOK AND FUTURE PROSPECTS

We are pleased to inform you that the year gone by has been excellent for the Textile Industry. The government is making all possible efforts towards gaining access to the new markets. Indian Textile Industry is one of the key industry of the country and the Government through its policies and initiatives continues to give further push to the industry so that it become global competitive and increase its Global share.

The high cotton prices coupled with slackness in Global demand are affecting the fortunes of the Textile Industry. The Future is still not clear. Your management is looking at the future with optimism and expects that with the improvement in the global demand and softening of raw cotton prices in the coming periods, will give a relief to the Textile Industry.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has put in a place an adequate and effective Internal Control Mechanism to ensure efficient conduct of its operations, security of assets, prevention and detection of frauds/errors, preserving accuracy and completeness of the accounting and business records and timely preparation of financial statements and related information. These internal control systems are then further supplemented by Internal Audit carried out by the Internal Auditor of the Company and periodical review by the management. The Company has put in place Proper and adequate controls, which are reviewed at regular intervals to ensure that the business decisions and transactions are properly authorized, correctly and timely reported and the assets are safeguarded from loss, damage and misuse.

In addition to above, the Company has formulated a Vigil Mechanism and Whistle Blower Policy for its Directors and employees of the Company for reporting genuine concern about unethical practices and suspected mal-practices.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company believes that the quality of the employees is the key to its success and is committed to equip them with skills. The Company provides to the employees a fair and equitable work environment and support from their peers with a view to develop their capabilities leaving them with the freedom to act and to take responsibilities for the task assigned. The Company has strongly embedded core values and all employees are trained and encouraged to use these values in their daily operations and the bases for making decisions. The Companys management has always carried out systematic appraisal of performance and imparted training at periodic intervals. The Company has always recognized talent and has judiciously followed the principle of rewarding performance. This has helped to ensure all employees are aligned and focused on key objectives and key performance indicators critical for the Companys performance.

The Companys relations with the employees continued to be cordial and harmonious relations with its employees. It considers manpower as its assets and that people had been driving force for growth and expansion of the Company. The Company acknowledge that its principal assets is it employees.

In adding up, the Company is committed to nurturing, enhancing and retaining top talent through superior Learning and Organizational Management. The Industrial relation of the Company with various suppliers, customers, financial lenders and employees is cordial.

As of March 31, 2024, the company had a total of 7 employees on its rolls, including factory workers. The company will continue to create opportunities and ensure that it recruits diverse candidates without compromising on merit.

HEALTH, SAFETY AND ENVIRONMENT

The safety and health of employees, partners, service providers and the public are a priority at Yuranus. The wellbeing of stakeholders and the minimization of impact on the natural environment are extremely important to us.

Continuous efforts to achieve safety awareness and eliminate unsafe practices are made through employee engagement.

DISCUSSION ON FINANCIAL PERFORMANCE

PARTICULARS	F.Y. 2024-25	F.Y. 2023-24
Revenue form Operation	2746.07	7339.74
Other Income	19.14	3.75
Total Income (Total Revenue)	2765.21	7343.49
Total Expenditure (Excluding Depreciation and Finance Cost)	2868.55	7146.01
Profit before Financial costs, Depreciation and amortization expenses and Taxation	-103.88	197.48
Less: Finance Costs	10.81	-
Operating profit before Depreciation and amortization expenses and Taxation	114.69	197.48
Less: Depreciation and amortisation	44.97	0.45
Profit before Tax	-58.37	197.03
Less: (1) Current Tax	-	52.52
Less: (2) Deferred Tax	-14.86	-0.02
Profit after tax	-43.51	144.53
EPS (Basic)	1.24	4.13
EPS (Diluted)	1.24	4.13

Note: Previous years figures have been regrouped / reclassified wherever necessary to correspond with the current years classification / disclosure and may not be comparable with the figures reported earlier.

Particulars	Numerator	Denominator	2024-25	2023-24	% of variance	Explanation for change in the ratio by more than 25%
Liquidity Ratio Current Ratio (times)	Current Assets	Current Liabilities	6.20	3.75	65%	There has been a decrease in creditors (current liabilities), This reflects better liquidity management and a stronger short-term financial position of the company compared to the previous year.
Solvency Ratio Debt-Equity Ratio (times)	Current & Non- Current Borrowing + Lease Liabilities	Total Equity	0.36	-	100%	The company was debt-free in the previous year. In the current year, a loan was taken and an office was leased, resulting in an increase in the debt-equity ratio.
Debt Service Coverage Ratio (times)	Net Profit after taxes + Depreciation & Amortisation Expenses + interest + Taxes	Interest + Lease Payments + Principal Repayments of Loan	-0.10	-	100%	The company was debt-free in the previous year. In the current year, a loan was taken and an office was leased, resulting in an increase in the debt Service Coverage ratio.
Profitability ratio Net Profit Ratio (%)	Profit After Tax	Total Revenue from Operations	-1.58%	1.97%	-180%	Due to the global instability in Textile market and lower margins, there is a reduction in the net profit ratio. However, the company has maintained operational efficiency and is focused on long-term stability and recovery.
Return on Equity Ratio (%)	Profit After Tax - preference dividend (if any)	Average Shareholders Equity	-12.70%	49.49%	-126%	Due to the global instability in Textile market and lower margins, there is a reduction in the return. However, the company has maintained operational efficiency and is focused on long- term stability and recovery.
Return on Capital employed (%)	Earnings before interest and taxes	Net Worth + Total Debt + Deferred Tax Liability - Deferred Tax Assets	-10.44%	39.68%	-126%	Due to the global instability in Textile market and lower margins, there is a reduction in the return. However, the company has maintained operational efficiency and is focused on long- term stability and recovery.
Return on Investment (%)	Income generated from investments	Weighted average invested funds	11%	0%	100%	Due to investments made in current year only.

DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements of the Company have been prepared in accordance with Accounting Standard ("AS") notified under the Companies (Accounting Standards) Rules, 2021 read with section 133 of the Companies Act, 2013.

CAUTIONARY STATEMENT

The Management Discussion and Analysis sections contain the Companys objectives, projections, estimates and expectations may constitute certain statements, which are forward-looking within the meaning of applicable laws and regulations. The statements in this management discussion and analysis report could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operation include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in the governmental regulations, tax regimes, forex markets, economic developments within India and the countries with which the Company conducts business and other incidental factors.

For and on behalf of Board of Directors

Yuranus Infrastructure Limited

Date: August 30, 2025

Place: Ahmedabad

Nitinbhai Govindbhai Patel

Chairman cum Managing Director

DIN: 06626646

Registered office:

Rannade House, First Floor,

Near Ishan Bunglows, Shilaj,

Ahmedabad, Daskroi,

Gujarat, India, 380059