Yuranus Infrastructure Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry Overview

The Indian cotton industry forms an important part of the countrys agricultural and textile value chain. Cotton trading is closely associated with the availability and quality of cotton, crop arrivals, domestic consumption, textile industry demand, prevailing market prices and developments in the global cotton market.

The cotton trading business is inherently cyclical and subject to fluctuations in commodity prices. The performance of market participants may vary from year to year depending upon the volume of cotton available for procurement, prevailing market prices, timing of purchases and sales, inventory levels, demand from textile mills, logistics costs and other market-related factors.

Cotton prices are influenced by several factors, including weather conditions, crop output, domestic and international demand and supply, Government policies, minimum support prices, export and import conditions and movements in global commodity markets.

Industry Scenario

During the year under review, the cotton market continued to remain dependent on crop arrivals, availability of cotton, domestic textile demand and price movements in domestic as well as international markets.

The trading environment remained competitive, with margins being influenced by fluctuations in procurement and selling prices, market demand and the timing of transactions. In such an environment, trading companies need to maintain appropriate inventory levels, exercise prudence in procurement and sales decisions and closely monitor market developments.

The domestic textile industry continues to be an important source of demand for cotton. Consequently, changes in spinning, yarn, textile and apparel demand can have a direct impact on cotton trading volumes and market conditions.

Business Performance

The Company is primarily engaged in the trading of cotton. The Companys business performance is influenced by market conditions prevailing during the cotton season, procurement prices, selling prices, trading volumes, inventory levels and demand from customers.

During the financial year under review, the Company recorded a decrease in revenue from operations as compared with the previous financial year. The change in revenue was primarily attributable to variations in trading volumes, prevailing market conditions and cotton price movements during the year.

Revenue in a commodity trading business may fluctuate significantly from one year to another and does not necessarily correspond proportionately with profitability, as the latter is also dependent upon trading margins, inventory costs, finance costs and other operating expenses.

The Company continued to focus on prudent procurement and sales practices, monitoring of market conditions, efficient utilisation of working capital and maintaining appropriate relationships with suppliers and customers.

Financial Performance

The key financial parameters of the Company for the year under review, as compared with the previous financial year, are set out below:

PARTICULARS	F.Y. 2025-26	F.Y. 2024-25
Revenue form Operation	1080.34	2746.07
Other Income	4.90	19.14
Total Income (Total Revenue)	1085.24	2765.21
Total Expenditure (Excluding Depreciation and Finance Cost)	966.96	2767.80
Profit before Financial costs, Depreciation and amortization expenses and Taxation	118.28	-2.59
Less: Finance Costs	16.40	10.81
Operating profit before Depreciation and amortization expenses and Taxation	101.88	-13.4
Less: Depreciation and amortisation	45.72	44.97
Profit before exceptional item and Tax	56.16	-58.37
Less: Exceptional item	-13.60	0.00
Profit before tax	69.76	-58.37
Less: (1) Current Tax	13.01	-
Less: (2) Deferred Tax Less: (3) Prior Period Taxes	5.28 3.00	-14.86 0
Profit after tax	48.47	-43.51
EPS (Basic)	1.38	-1.24
EPS (Diluted)	1.38	-1.24

The Companys financial performance during the year reflects the prevailing conditions in the cotton trading market and the level of trading activity undertaken during the year.

Management continues to monitor market conditions and seeks to balance business opportunities with appropriate commercial and financial risk.

Opportunities

The cotton trading industry provides opportunities arising from the continued importance of cotton as a natural fibre and its use across the textile value chain.

The Company may seek to leverage opportunities arising from:

• Demand from domestic textile and spinning industries;

• Relationships with suppliers, ginners, traders and customers;

• Geographical diversification of procurement and sales;

• Efficient inventory management;

• Improved market intelligence and timely assessment of market conditions; and

• Disciplined working-capital management.

The Company intends to evaluate business opportunities based on prevailing market conditions and expected risk-adjusted returns.

Risks and Concerns

The Companys business is exposed to various risks inherent in commodity trading. The principal risks include: Cotton price volatility

Fluctuations in cotton prices may affect procurement costs, selling prices, inventory valuation and trading margins. A significant adverse movement in prices during the period of inventory holding may affect profitability

Availability and quality of cotton

Cotton availability and quality depend upon crop conditions, weather, regional production and market arrivals. Variations in these factors may affect procurement and trading activity.

Demand risk

Changes in demand from textile mills, spinning units and other downstream industries may influence trading volumes and selling prices.

Inventory risk

The Company may be exposed to inventory and price risk where cotton is held for subsequent sale. Effective monitoring of inventory levels and holding periods is therefore important.

Working capital and liquidity risk

Cotton trading generally requires working capital for procurement and inventory holding. Changes in borrowing costs, availability of finance and collection cycles may affect the Companys financial position.

Counterparty and credit risk

The Company is exposed to credit risk in relation to customers and other counterparties. The Company seeks to manage such risk through appropriate credit assessment, monitoring of receivables and regular follow-up for collections.

Regulatory and policy risk

Changes in Government policies, taxation, agricultural regulations, import/export policies, minimum support prices and other regulatory measures may affect the cotton trading environment.

The Company continues to monitor these risks as part of its normal business and takes appropriate measures based on the prevailing circumstances.

Internal Control Systems and Their Adequacy

The Company maintains internal control systems commensurate with the size, nature and complexity of its operations.

The internal control framework covers key areas including procurement, sales, inventory, receivables, payments, banking transactions, accounting and financial reporting.

The Company has appropriate controls and processes intended to ensure that transactions are authorised, assets are safeguarded, accounting records are maintained appropriately and financial information is reliable.

The adequacy and effectiveness of internal controls are reviewed periodically by the management. The Audit Committee also reviews matters relating to financial reporting, internal controls and other areas within its

Human Resources

The Company recognises the importance of its employees in supporting its business operations. The Company seeks to maintain a professional working environment and ensure that employees are provided with appropriate support to discharge their responsibilities.

The Company continues to focus on employee development, regulatory compliance, workplace discipline and effective communication.

As at March 31, 2026, the Company have 7 (Seven) employees.

Outlook

The outlook for the cotton trading business remains dependent upon a number of factors, including domestic cotton production, crop arrivals, cotton prices, textile industry demand, global market conditions, Government policies and the overall economic environment.

Given the inherent volatility in commodity markets, the Company expects that trading conditions may continue to vary during the coming year. The Company will continue to adopt a measured approach to procurement and sales and will evaluate business opportunities based on market conditions, expected margins and associated risks.

The Company remains focused on maintaining financial discipline, managing working capital efficiently, controlling operating costs and strengthening its relationships with customers and suppliers.

Management will continue to monitor developments in the cotton market and take business decisions based on prevailing market conditions and the Companys risk appetite.

Cautionary Statement

This Management Discussion and Analysis contains statements concerning the Companys objectives, expectations, estimates and outlook that may constitute forward-looking statements under applicable laws and regulations.

These statements are based on assumptions and expectations that are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied due to factors including changes in cotton prices, crop production, market demand, Government policies, economic conditions, availability of working capital, competition and other risks associated with the Companys business.

The Company undertakes no obligation to publicly update or revise any forward-looking statements except as may be required under applicable laws and regulations.

COMPANY OVERVIEW

Yuranus Infrastructure Limited, formerly known as Pankhil Finlease Limited was incorporated on 22nd February 1 994 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 1 7 April 201 2 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.

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 31,2026, 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. 2025-26	F.Y. 2024-25
Revenue form Operation	1080.34	2746.07
Other Income	4.90	19.14
Total Income (Total Revenue)	1085.24	2765.21
Total Expenditure (Excluding Depreciation and Finance Cost)	966.96	2767.80
Profit before Financial costs, Depreciation and amortization expenses and Taxation	118.28	-2.59
Less: Finance Costs	16.40	10.81
Operating profit before Depreciation and amortization expenses and Taxation	101.88	-13.4
Less: Depreciation and amortisation	45.72	44.97
Profit before exceptional item and Tax	56.16	-58.37
Less: Exceptional item	-13.60	0.00
Profit before tax	69.76	-58.37
Less: (1) Current Tax	13.01	-
Less: (2) Deferred Tax	5.28	-14.86
Less: (3) Prior Period Taxes	3.00	0
Profit after tax	48.47	-43.51
EPS (Basic)	1.38	-1.24
EPS (Diluted)	1.38	-1.24

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	2.88	6.20	-53.59%	The current ratio has declined from 6.20 to 2.88 over the year, primarily due to an increase in current liabilities coupled with a reduction in current assets. Additionally, trade payables have risen significantly, largely attributable to extended credit periods granted by vendors, which have been appropriately considered in the analysis.
Solvency Ratio Debt-Equity Ratio (times) Debt Service Coverage Ratio (times)	Current & NonCurrent Borrowing + Lease Liabilities Net Profit after taxes + Depreciation & Amortisation Expenses + interest + Taxes	Total Equity Interest + Lease Payments + Principal Repayments of Loan	0.51 2.95	0.65 -0.20	-21.89% -1592.14%	Not Applicable The Debt Service Coverage Ratio (DSCR) has improved significantly from -0.20 in the previous year to 2.95 in the current year. This substantial increase is primarily attributable to the companys transition from a loss-making position to profitability during the year. The improvement reflects enhanced earnings capacity and a better ability to meet debt servicing obligations, indicating a marked strengthening in the companys financial position and liquidity. .
Profitability ratio
Net Profit Ratio (%)	Profit After Tax	Total Revenue from Operations	4.49%	-1.58%	-383.16%	The Net Profit Ratio has improved from -1.58% in the previous year to 4.49% in the current year, reflecting a significant positive margin gap. This expansion in margins is primarily attributable to improved operational efficiency and better cost management during the year.
Return on Equity Ratio (%)	Profit After Tax - preference dividend (if any)	Average Shareholders Equity	14.05%	-1 2.70%	-210.60%	Higher profits during the year, driven by improved margins and better management of cotton price volatility, led to a significant increase in return on equity.
Return on Capital employed (%)	Earnings before interest and taxes	Net Worth + Total Debt + Deferred Tax Liability - Deferred Tax Assets	14.29%	-1 2.04%	-218.75%	Improved operating earnings during the year, driven by stronger margins and better cost management, led to a significant increase in Return on Capital Employed (ROCE), which rose from -1 2.04% in the previous year to 1 4.29% in the current year
Return on Investment (%)	Income generated from investments	Weighted average invested funds	5.59%	42.89%	-86.96%	Return on Investment has declined during FY 2025—26, primarily attributable to adverse market conditions impacting the returns on investments.

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.

DISCLOSURES WITH RESPECT TO DEMAT SUSPENSE ACCOUNT/ UNCLAIMED SUSPENSE ACCOUNT

This clause is not applicable to our company since there are no shares in the demat suspense account or unclaimed suspense account.

DISCLOSURE OF CERTAIN TYPES OF AGREEMENTS BINDING LISTED ENTITIES

Our Company has not entered into any of the agreement covered under clause 5A of paragraph A of Part A of Schedule III of these regulations.

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 1 3, 2026
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