ABans Enterprises Ltd Management Discussions

GLOBAL ECONOMY

The global economy in 2024 exhibited a degree of stability as it navigated a complex environment shaped by numerous economic, geopolitical, and policy challenges. According to the World Economic Outlook by the International Monetary Fund (IMF) , the growth of global Gross Domestic Product (GDP) eased to 3.3%. There were notable differences in growth trends; while developed economies experienced a more gradual rate of expansion, emerging markets, particularly in Asia, continued to show a comparatively steady growth path.

The global economy faced persistent headwinds last year. Key challenges included geopolitical issues like the Russia-Ukraine conflict and Red Sea disruptions, supply chain complexities, trade tensions, and shifting climate policies impacting investments.

Global inflation eased, an encouraging sign. Advanced economies expect to hit inflation targets sooner than emerging markets, where deceleration may be gradual.

Outlook

The global economy is expected to maintain a steady growth trajectory, with projected expansion rates of 2.8% and 3.0% for 2025 and 2026, respectively. This optimistic forecast is backed by strong economic growth in the United States and significant advancements in key emerging markets.

In the United States, growth is anticipated to fall to 1.8% in 2025, before further reducing to 1.7% in 2026, influenced by changes in labour market conditions and a decline in consumer spending. Growth in the Eurozone is predicted to be at 0.8% in 2025 and improve to 1.2% in 2026, driven by increased consumer spending and lower inflation rates. Overall, growth in developed economies is expected to stabilise within the range of 1.4% to 1.5% during this period.

While global disinflation is ongoing, some regions are facing stagnation due to persistently elevated inflation levels. Global inflation is projected to fall to 4.3% in 2025 to 3.6% in 2026, with developed economies likely to meet their inflation targets ahead of others. Monetary policies are expected to vary across different regions, reflecting the diverse economic conditions.

(Source:World Economic Outlook, IMF )

INDIAN ECONOMY

Throughout the current FY 2024-25, Indias economy has maintained consistent growth and stability, reinforcing its standing as a leading major global economy for expansion.

Office The SecondNational Advanced Statistical Estimate (SAE) projects real Gross Domestic Product (GDP) growth of 6.5% for this financial year, following 9.2% growth in the preceding year.

Source:IMF WEO

This upward trend highlights Indias strong economic base, supportive government strategies, a vibrant services sector, and robust domestic demand, all contributing to a positive long-term outlook. Key to this enhanced growth and self-reliance are substantial government reforms and significant investments in both physical infrastructure, alongside initiatives such as ‘Make in India and the Production-Linked Incentive (PLI) scheme. Indias services sector expanded steadily by 7.2%, driven by strong performance in finance, property, professional services, public administration, and defence, amongst others.

The nations economic stature continues its upward climb.

India now stands as the worlds fifth-largest economy by nominal Gross Domestic Product (GDP) and the third-largest when assessed by purchasing power parity (PPP). Ambitious national targets aim for a USD 5 trillion economy by FY 2027-28 and a USD 30 trillion economy by 2047. These goals are supported by substantial infrastructure investments, ongoing governmental reforms, and widespread technological adoption. Reflecting this commitment, the capital investment budget for the upcoming financial year (2025-26) has been increased to 11.21 Lakh Crores, representing 3.1% of GDP.

Outlook

While the IMF projects that Indias economy is expected to grow at a rate of 6.2% in the financial year 2025-26, the RBI expects an expansion of 6.5%. Eitherway, these projections indicate that by 2030, India is likely to become the worlds third-largest economy, driven by investment in infrastructure, greater private sector capital expenditure, and the expansion of financial services. Ongoing reforms are anticipated to support this long-term economic advancement.

Several factors underpin this positive outlook, including Indias favourable demographics, increasing capital investment, proactive government schemes, and strong consumer demand. Improved spending in rural areas, helped by moderating inflation, further reinforces this growth trajectory. The governments focus on capital expenditure, prudent fiscal management, and measures to boost business and consumer confidence are creating a supportive environment for both investment and consumption.

As tensions rise between India and Pakistan, historical trends suggest past conflicts had limited impact on stock markets but often affected corporate earnings. The Nifty index has shown varied reactions, from significant Kargil to minor dips following Pulwama. JM Financial observes that while earlier conflicts slowed economic growth, Indias economy now demonstrates greater resilience and a better capacity to absorb shocks.

(Source:PIB, MoSPI, IMF, RBI)

INDUSTRIAL OVERVIEW

Indian Commodity Market

Indias commodity market comprises both agricultural and non-agricultural segments, each playing a critical role in the countrys economic structure. Agricultural commodities primarily cover foodgrains, oilseeds, and plantation crops, while non-agricultural commodities span energy, metals, and bullion. In calendar year 2024, the commodities market experienced significant volatility, marked by sharp price movements across asset classes. Precious metals such as gold and silver recorded all-time highs across multiple currencies, driven by global macroeconomic shifts and investor demand for safe-haven assets. The energy segment delivered a mixed performance, reflecting geopolitical dynamics and fluctuating supply-demand fundamentals. In contrast, the agricultural commodities segment saw a robust bull run, supported by strong industrial demand and supply-side constraints. These diverse trends shaped a dynamic trading environment, offering both opportunities and challenges for market participants. (CNBC-TV18)

Agricultural Commodities

In FY 2024-25, India recorded a foodgrain production as high as 3,309.18 Lakh Metric Tonnes (LMT).

(Source:SME Futures).

The sector grew at 3.5% in the second quarter of FY 2024-25, up from 0.4% - 2% in the previous quarters, supported by consistent government investment and favourable monsoons.

Nevertheless, long-term growth trends reflect slower agricultural income growth compared to non-agricultural sectors, with average agricultural income rising ~5% annually over the past decade.

(Source:Moneycontrol).

India is considered to be the king of spices and holds a central position in the global spice trade, as per The International Spice Conference (ISC) 2025, organised by the All India Spices Exporters Forum (AISEF), commenced in Bengaluru. The Indian spice market was valued at USD 24 billion in 2024 and is projected to grow to USD 61 billion by 2033, with a CAGR of 10.56%. This expansion reflects a transformation in spice cultivation, processing, and consumption.

(Source:Rural Voice)

In FY 2024-25, Indias agricultural commodities market exhibited robust growth in the spot segment, driven by record production in key crops. Maize output reached 372.49 rallies Lakh Tonnes, while during events soybean production increased to 151.32 like Lakh Tonnes, bolstered by favourable monsoon conditions and improved farming practices. The oilseed sector also performed well, with rapeseed-mustard production estimated at 128.73 Lakh Tonnes. However, the futures market remained constrained due to regulatory measures; the Securities and Exchange Board of India (SEBI) extended the suspension of trading in key agricultural commodities such as soybean, rapeseed, and crude palm oil until January 2025 to mitigate food inflation. This suspension limited hedging opportunities for stakeholders. Meanwhile, digital platforms like the National Agriculture Market (eNAM) continued to enhance market access and price transparency for farmers, contributing to a more integrated and efficient agricultural market ecosystem.

(Sources:Investing.com, Reuters, Tec hSci Research )

Indias commodity market comprises both agricultural and non-agricultural segments, each playing a critical role in the countrys economic structure.

Non-Agricultural Commodities

Indias industrial output grew 5% in January 2025, with the manufacturing sector rebounding and contributing to increased non-agricultural commodity demand. Energy and metal trading volumes remained concentrated on MCX, though volatility persisted amid global commodity price swings.

(Source:PIB.gov)

In FY 2024-25, Indias non-agricultural commodities market experienced substantial growth, particularly in the derivatives segment. The Multi Commodity Exchange (MCX), which predominantly facilitates derivative trading in non-agricultural commodities, reported a 101% year-on-year increase in average daily turnover (ADT) for futures and options, reaching

2,19,063 Crores. This surge was primarily driven by a 115% rise in options trading, which accounted for a significant portion of the total turnover. The futures segment also saw a 38% increase in ADT, totalling 27,153 Crores. Notably, the exchange facilitated the delivery of 7.08 metric tonnes of gold, 663.27 metric tonnes of silver, and 69,384 metric tonnes of base metals during the year. These figures underscore the robust performance and resilience of the non-agri commodities sector amidst a dynamic economic landscape.

Sources: Business Standard

Outlook

Indias commodity market is poised for a dynamic year ahead, shaped by global economic shifts, domestic demand, and regulatory measures. Energy demand is expected to remain strong, with oil consumption projected to grow by 3.39% –outpacing global peers – as industrial activity gains momentum.

Base metal prices are likely to rise, reflecting tightening global supply and sustained infrastructure spending. In contrast, agri-commodity derivatives trading will remain restricted due to SEBIs extended suspension on key agri-commodity contracts till March 2026. Overall, a resilient domestic economy and strategic policy support are expected to sustain trading volumes and investor interest across key non-agri segments.

Sources: ToI article on oil demand, ToI article on metals, ToI on SEBI ban extension

GLOBAL BULLION MARKET INSIGHTS

In FY 2024-25, global bullion markets witnessed heightened activity driven by macroeconomic developments and geopolitical factors. Gold prices surged past USD 2,300 per ounce, propelled by the Federal Reserves cautious monetary stance, and ongoing geopolitical uncertainties, particularly in Eastern Europe and the Middle East. Central banks significantly increased gold purchases, acquiring approximately 1,045 tonnes in 2024, underscoring bullions appeal as a hedge against global financial volatility. (Source: World Gold Council, Reuters)

Global silver markets also experienced robust demand, to reach a record 680.5 million ounces, primarily driven by industrial consumption. Key sectors driving this demand included renewable energy, electric vehicles, and advanced electronics, reflecting silvers growing industrial relevance amidst global sustainability initiatives. (Source: The Silver Institute) India remained a central player in this dynamic market, with domestic bullion trends closely mirroring global patterns.

Elevated global prices influencedlocal buying behaviour, leading investors towards structured bullion products and physical investments, despite a moderation in jewellery demand. The strategic implications for bullion traders, like Abans Enterprises Limited, are significant. With seamless integration between derivatives trading and physical delivery, AEL was advantageously positioned to navigate and capitalise on evolving market conditions effectively.

Outlook

Global bullion market conditions are expected to remain dynamic in FY 2025-26, shaped by continued geopolitical risks, monetary policy adjustments, and sustained industrial demand. Gold prices are anticipated to maintain strength, though elevated levels may temper retail jewellery demand. Silvers industrial-driven demand is projected to remain robust, supported by ongoing investment in renewable energy technologies and electronics manufacturing. Indias bullion traders, particularly those with sophisticated market intelligence and delivery infrastructure like Abans Enterprises Limited, will likely play a pivotal role in managing volatility and capturing opportunities in these evolving market conditions. (Sources: World Gold Council, The Silver Institute, Reuters)

INDIAN BULLION INDUSTRY OVERVIEW

Indias bullion industry experienced significant in FY 2024-25, influenced by global economic factors and domestic demand.Indias gold consumption increased by 5% year-on-year, reaching 802.8 tonnes in 2024, up from 761 tonnes in 2023. This rise was driven by heightened investment demand, festive purchases, and a reduction in import duties. The total value of gold demand surged by 31% to 5,15,390 Crores, compared to 3,92,000 Crores in the previous year.

(Source: The Economic Times, The New Indian Express)

The average gold price in India during 2024 was 2,00,039 per ounce, with a peak of 2,34,365 per ounce on October 30, 2024.

The Reserve Bank of India (RBI) augmented its gold reserves by 72.6 tonnes in 2024, positioning itself as the third-largest gold purchaser among global central banks. Consequently, golds share in Indias foreign exchange reserves increased from 7.7% in January 2024 to 11.31% by early February 2025.

(Source: Exchange Rates, World Gold Council)

Indias silver imports witnessed a substantial surge, with imports reaching a record 4,172 metric tonnes in the first four months of 2024, surpassing the total imports for the entire previous year. This increase was primarily attributed to rising demand from the solar panel manufacturing sector and heightened investor interest.

(Source: The Economic Times)

Outlook

The sharp rise in bullion prices in India, on account of global economic uncertainties, suggests a potential moderation in demand.

(Source: The Economic Times)

The World Gold Council projects Indias gold consumption to range between 700 and 800 tonnes in 2025, a slight decline from the 802.8 tonnes recorded in 2024. This anticipated decrease is attributed to record-high gold prices, which have tempered jewellery demand, although investment demand remains high.

(Source: Reuters, The Economic Times)

While specific projections for silver demand in FY 2025-26 are limited, the continued emphasis on renewable energy initiatives and industrial applications is expected to sustain the demand for silver in India. However, precise figures will depend on various factors, including global market trends and domestic industrial growth.

Given its dual expertise in physical bullion and derivative markets, AEL is well-positioned to navigate the evolving price and demand dynamics. Its hedged trading model and delivery capabilities enable it to serve both investment-led and industrial demand with precision. In a high-price environment,

AELs ability to offer structured solutions and scale efficiently reinforces its leadership in the bullion ecosystem.

INDIAN DERIVATIVES MARKET OVERVIEW

Indias derivatives market experienced substantial growth in FY 2024-25, primarily driven by equity index options.

According to the Financial Express, index options turnover surged from 4.5 Lakh Crores in FY 2017-18 to 138 Lakh Crores in FY 2024, reflecting a significant

(Source: The Financial Express) However, during FY 2024-25, the annual premium turnover of index options declined marginally to 136 trillion, due to a series of regulatory measures to curb speculation in the derivatives segment.

(Source: Business Standard)

These include increasing the minimum contract size for index derivatives and reducing the weekly expiries per exchange to one.

(Source: Mastertrust)

Outlook

The derivatives market in FY 2025-26 is expected to stabilise, with a focus on sustainable growth and investor protection. SEBIs continued oversight aims to balance market development with risk mitigation, ensuring that the derivatives segment contributes positively to the broader financial ecosystem.

Market participants anticipate a gradual shift towards more informed trading practices, supported by enhanced regulatory frameworks and investor education initiatives. The emphasis will likely be on promoting a transparent and efficient derivatives market that aligns with global best practices. Amidst evolving regulations and shifting market dynamics, AELs disciplined, strategy-driven approach to derivatives trading offers a key advantage. The Companys focus on hedged, insight-led positions – particularly in commodity-linked instruments – aligns well with the markets transition toward more informed and risk-aware participation. As the market stabilises, AEL is well-positioned to deepen its role as a trusted, high-integrity participant in Indias derivatives ecosystem.

INDIAN JEWELLERY MANUFACTURING INDUSTRY

The Indian jewellery manufacturing industry faced challenges in FY 2024-25, primarily due to declining exports and subdued global demand. According to Reuters, Indias exports of cut and polished diamonds dropped by 16.8% year-on-year to USD 13.3 billion, marking the lowest level in nearly two decades.

(Source: Reuters)

Indias total exports of gems and jewellery, including gold and silver, experienced a downturn of 11.72% to USD 28.5 billion (appx. 2.41 Lakh Crores) in FY 2024-25, as compared to the preceding financial year. This decline is attributed to ongoing geopolitical tensions, according to data from the Gem & Jewellery Export Promotion Council (GJEPC). In 2023-24, the overall value of gems and jewellery exports stood at USD 32.2 billion ( 2.67 Lakh Crores), as per GJEPC figures.

(Source: Angelone)

However, March showed a slight improvement in exports, registering a growth of 1.02% at USD 258.297 million ( 22,340.89 Crores), in contrast to USD 2,556.97 million ( 21,228.71 Crores) during the same month of the previous year, the council added. increase in trading activity. Total gold jewellery exports during FY 2024-25 exhibited a marginal decrease of 0.11% at USD 11,215.46 million ( 94,937.78 Crores), compared to USD 11,227.72 million ( 93,066.82 Crores) in FY 2023-24. Silver jewellery exports in FY 2024-25 experienced a substantial dip of 40.58% to USD 961.79 million ( 8,115.32 Crores), down from USD 1,618.63 million ( 13,424.4 Crores) in the previous year.

The derivatives market in FY 2025-26 is expected to stabilise, with a focus on sustainable growth and investor protection.

Silver emerged as the top asset this year, rising 18.97% internationally and 15.20% domestically. Its growth is fuelled by monetary easing, a weakening dollar, and industrial demand for solar and electronics.

(Source: Livemint)

Meanwhile, coloured gemstone exports showed a decline of 8.01% during FY 2024-25 at USD 440.38 million ( 3,729.93 Crores), compared to USD 478.71 million ( 3,961.98 Crores) in the previous year.

(Source: Economic Times)

Outlook

The outlook for the Indian jewellery manufacturing industry in FY 2025-26 is cautiously optimistic. While export challenges persist, the domestic market is expected to continue on its growth trajectory, supported by rising consumer demand and evolving fashion trends.

Efforts to enhance design innovation, expand organised retail presence, and leverage digital platforms are anticipated to contribute to the industrys development. Additionally, favourable government policies and initiatives aimed at promoting the gems and jewellery sector may provide further impetus to growth.

In this evolving landscape, AELs jewellery business remains focussed on the premium domestic segment, where demand continues to be resilient. Its emphasis on handcrafted, customised designs for high-net-worth clients positions it well to navigate export headwinds. By aligning with evolving consumer preferences and maintaining operational agility, Abans Jewels is well-placed to deepen its presence in Indias growing luxury jewellery market.

COMPANY OVERVIEW

Abans Enterprises Limited (AEL) is positioned at a rare convergence in the commodity ecosystem – where the precision and proficiency of derivatives trading meets the ground realities of physical trade. In a market often divided between financial transactions and on-ground delivery, AEL bridges the gap with intelligence, infrastructure, and integrity. Leveraging its expertise in commodities derivatives, the Company has honed its risk management mechanisms, while using market insights to structure its positions. With respect to its presence in the physical commodity markets, AELs footprint spans Indias agri heartlands and global trading hubs, allowing the Company to read market signals from both mandis and exchanges. This dual perspective enables AEL to decode price action in real time and anticipate volatility, before responding to it. What truly sets AEL apart, however, is its execution ethos: a zero-default track record, disciplined transaction management, and a reputation built on trust with clients, suppliers, and institutional stakeholders.

Until last year, AELs commitment – captured by the theme Navigating with precision – was towards laying the foundation for growth by realigning its structure, and sharpening its focus to unlock long-term value. In the year gone by, the company translated intent into outcomes as reflected in the shift from groundwork to growth. In FY 2024-25, the focus pivoted to strategic clarity, market insight, and operational discipline converge to deliver measurable progress.

BUSINESS SEGMENT REVIEW

Intelligence in Action Across Markets

At Abans Enterprises Limited, we believe in connecting insight with execution. Our diversified portfolio spanning agri products, bullion, base metals, derivatives, and bespoke jewellery is a direct reflection of our commitment to strategy, structure, and scale. With integrated infrastructure and hedged operations, we continue to deliver resilience, agility, and value in a ever-changing commodity landscape.

Agri Commodities

Rooted in Legacy. Powered by Agility.

AEL continued to leverage Indias position as a global agri powerhouse, focussing on high-demand commodities such as coriander, turmeric, castor seed, guar gum, cottonseed, etc. Our operations span both futures and spot trades, creating a resilient trading model that serves a wide spectrum of agri clients.

With Indias agri markets becoming increasingly digital, our goal is to deepen penetration into higher-margin commodities and expand spot market access through targeted alliances and data-backed decision frameworks.

FY 2024-25 Key Highlights:

Maintained presence across major agri commodity clusters in India Strengthened relationships with Pan India agri-physical traders Introducedtech-enabledinsightsforcrop-cycle linked trading

Agri trading volumes stood at 5,541 MT, maintaining a strategic focus on high-margin contracts

Bullion & Base Metals

Delivering Precision in Every Gram and Tonne.

Gold, silver, copper, aluminium, and lead continued to anchor our commodity desk in FY 2024-25. With every transaction fully hedged and physically backed, AEL retained its trusted position across Indias bullion corridors and manufacturing-linked base metal markets.

FY 2024-25 Key Highlights:

Imported gold through established overseas supply routes Hedged bullion transactions via COMEX, MCX, and NCX Secured repeat contracts from key jewellery and industrial buyers Base metal trade aligned with Nalco-linked aluminium contracts

Volumes stabilised after a high base in FY24

Bullion & Base Metals Turnover (Rs. in Crores)

	Base Metals	Bullion
FY 2022 23	2.66	1,087.95
FY 2023 24	88.41	926.18
FY 2024 25	56.58	3,497.73

As the commodity ecosystem shifts toward integrated global sourcing and delivery, AEL is scaling its institutional bullion trade and expanding base metal alliances to support Indias industrial surge.

Derivatives

Turning Volatility into Opportunity.

AELs derivatives desk continues to be a core pillar of its Commodity Intelligence model – translating data into strategy, and strategy into performance. With a pan-commodity approach, we traded futures and options across agri, bullion, and base metals while launching structured debentures linked to equity and commodity benchmarks.

FY 2024-25 Key Highlights:

Launched performance-linked debentures backed by Nifty and gold Enhanced algo-based strategies across MCX and NCDEX Increased option-writing capabilities for institutional hedging

Registered significant growth in bullion derivative volumes

By combining structured risk products with execution excellence, we are poised to become a preferred derivatives partner for institutions navigating complex price cycles and evolving regulatory norms.

Jewellery

Artisan Precision Meets Market Demand.

Abans Jewels has emerged as a serious player in Indias design-led jewellery segment. With gold consumption in India expected to be between 700-800 tonnes in 2025^# – driven by both cultural demand and rising investment interest – our bespoke offerings have gained strong traction among high-net-worth retailers and premium stores.

FY 2024-25 Key Highlights:

Deepened supply relationships with top-tier jewellery chains Streamlined design-to-delivery lifecycle for custom orders

Integrated supply chain efficiencies post-100%

Launched premium lines in coloured and fancy stone jewellery

From Zaveri Bazaar to high streets across India, Abans Jewels is positioning itself not just as a supplier – but as a strategic partner for premium retailers seeking design innovation, consistency, and trust.

#World Gold Council (WGC) - https://www.thehindu.com/business/ markets/indias-gold-demand-falls-15-in-january-march-to-1181-tonnes-on-high-prices-world-gold-council/article69508904.ece

Financial Overview

The financial statements have been prepared and presented on going concern basis and in accordance with the Indian Accounting Standards (Ind AS) as per the Companies

(Indian Accounting Standards) Rules, 2015 notified under Section 133 of the Companies Act, 2013, (the ‘Act) and other relevant provisions of the Act, as amended from time to time.

Accounting policies used for the preparation of the financial statements are disclosed in Note-1 to the Consolidated Financial Statements.

Statement of Profit & Loss

The following table sets forth selected financial information from our consolidated operations for the year ended March 31,

2025 and March 31, 2024.

(Rs.in Crores)

Particulars	FY 2024-25	FY 2023-24
Total income	3,878.16	1,775.53
Finance cost	18.12	12.03
Employee cost	6.95	5.21
EBITDA	51.77	34.73
PAT	18.85	9.76

Total income

Total Income grew by 118.42% in FY 2024-25, increasing to 3,878.16 Crores from 1,775.53 Crores, driven primarily by strong demand for agricultural and metal commodities both in domestic and international markets. This growth reflects increase in both volume and value. However, the sharp rise in gold and silver prices has led to a compressed yield.

Finance Cost

Finance costs have increased by 50.62%, rising from 12.03 Crores in FY 2023 24 to 18.12 Crores in FY 2024 25.

This increase is primarily attributable to higher borrowings undertaken to meet working capital requirements for increased business operations.

Employee Cost

Employee costs have increased by 33.40%, rising from Rs. 5.21 Crores in FY 2023-24 to 6.95 Crores in FY 2024-25.

This increase is primarily due to headcount growth driven by business expansion and annual salary increments.

EBITDA Margin

49.06% growth in EBITDA from 34.73 Crores in FY 2023-24 to 51.77 Crores in FY 2024-25 demonstrates the effectiveness of our ongoing initiatives to streamline expenses and strengthen our business model.

Profit After Tax

For the reasons outlined above, Profit after tax has increased by 93.14% from 9.76 Crores in FY 2023-24 to 18.85 Crores in FY 2024-25. This improvement has resulted into increase in EPS per share to 2.70 of FY 2024-25 from 1.40 of FY 2023-24.

Statement of Assets and Liabilities

The following table sets forth selected consolidated financial position from our Balance Sheet as at March 31, 2025 and March 31, 2024.

(Rs.in Crores)

Particulars	FY 2024-25	FY 2023-24
Net worth	206.13	185.53
Borrowing	251.56	155.03
Trade receivables	145.41	180.44
Trade payable	12.44	93.14
Inventories	221.90	99.36

Net Worth

The Companys net worth has risen from 185.53 Crores to 206.13 Crores in FY 2024-25, marking a growth of 11.10%. This increase is primarily attributable to the profits generated during the year. Additionally, in compliance with provisions of the Companies Act, 2013, the Company has transferred 6.67 Crores from retained earnings to the debenture redemption reserve during the current year.

Borrowings

During the year, the Company raised Rs. 60.24 Crores through the issuance of debentures to address heightened working capital requirements stemming from an expanded business cycle. This resulted in an increase in the debt-to-equity and overallratio from 0.84 to 1.22 in FY 2024-25.

Trade Receivables

During the current financial year, trade receivables decreased to 145.41 Crores from 180.44 Crores in the previous year, representing a reduction of 19.41%. This improvement collections from debtors and an indicates efficient more overall strengthening of the Companys financial position.

We consistently monitor the ageing of receivables, and as a result, the average trade receivable days have decreased to 15 days in FY 2024-25 from 34 days of FY 2023-24.

Trade Payables

Trade payables stood at 12.44 Crores at the end of FY 2024-25, compared to 93.14 Crores in FY 2023-24, marking a reduction of 86.64%. This decrease reflects the Companys effective management of short-term obligations and its ability to negotiate favourable terms with suppliers. We maintain a proactive approach in monitoring the ageing of payables, which has contributed to a reduction in average trade payable days to 5 days in FY 2024-25 from 13 days in FY 2023-24. This improvement underscores our commitment to maintaining strong supplier relationships and optimising our working capital cycle.

Inventory

As of the end of FY 2024-25, inventory levels rose to 221.90 Crores from 99.36 Crores in the previous year, representing an increase of 123.33%. Effectiveinventory management continues to be a strategic priority for the Company. While this increase reflectsour anticipation of higher sales, our disciplined approach ensures that inventory levels remain well-aligned with demand. Importantly, inventory holding days improved to 15 days in FY 2024-25, down from 21 days in FY 2023-24, underscoring efficiency and stronger enhanced operational supply chain management.

Conclusion

The comparative analysis of key financial metrics, as outlined above, provides valuable insights into the Companys financial health. It also operational highlights our sustained progress and resilience throughout the past year. We remain committed to delivering sustainable value through prudent financial management and strategic growth initiatives, while proactively responding to changing business dynamics. The improvement in book value per share to 29.55 as of FY 2024-25, up from 26.60 in FY 2023-24, reflects the strength of our business policies, sound and unwavering commitment to our stakeholders.

Details of significant changes (i.e. or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor Debt-Equity Ratio

During FY 2024-25, the Debt-to-Equity Ratio reflects of 46.05%, from 0.84 times in FY 2023-24 to 1.22 times in FY 2024-25. This change is on account of a strategic enhancement in borrowings aimed at supporting the companys growth initiatives and operational requirements. This approach has been adopted with a focus on optimising the capital structure while maintaining financial flexibility.

Return on Equity

During FY 2024-25, the Return on Equity (ROE) demonstrated a significant improvement of 73.83%, increasing from 5.26% FY 2023-24 to 9.14% in FY 2024-25. This significant driven by increased contribution form the growth in business activity. Increase in contribution is result of better resource utilisation, strategic decision-making and disciplined cost management. The enhanced ROE indicates more effective deployment of shareholders funds, aligning with the companys commitment to sustainable value creation and long-term financial health.

Net Capital Turnover Ratio

During FY 2024-25, the Net Capital Turnover Ratio recorded a significant improvement of 90.64%, in FY 2023-24 to 19.75 times in FY 2024-25. This substantial growth reflectsthecompanysenhancedefficiency in utilising its capital resources. Better utilisation of assets and operational resources contributed to a marked increase in both revenue and profitability during the year.

Return on Capital Employed

During FY 2024-25, the Return on Capital Employed (ROCE) registered a significant from 9.55% in FY 2023-24 to 22.39% in FY 2024-25. This significant growth is driven by the growth in business activity. Increase in contribution is result of better resource utilisation, strategic decision-making and disciplined cost management. The enhanced ROE indicates more effective deployment of shareholders funds, aligning with the companys commitment to sustainable value creation and long-term financial health.

Return on Investment

During FY 2024-25, the Return on Investment (ROI) recorded a substantial improvement of 141.72%, increasing from 3.76% in FY 2023-24 to 9.09% in FY 2024-25. Although the company is not engaged in investment activities as part of its core operations, surplus funds were prudently allocated to low-risk government securities and other carefully selected investment avenues. This strategic deployment of surplus funds resulted in higher investment income, contributing positively to the companys overall financial performance and return profile

Inventory turnover ratio

During FY 2024-25, the companys Inventory Turnover Ratio improved by 28.20%, with the inventory holding period reducing from 21 days in FY 2023-24 to 15 days. Effective inventory management continues to be a strategic priority for the Company. While this increase reflects our anticipation of higher sales, our disciplined approach ensures that inventory levels remain well-aligned with demand.

Trade Receivables Turnover Ratio

During FY 2024-25, the companys Trade Receivable Turnover Ratio improved significantly, with the average collection period reducing from 34 days in FY 2023-24 to 15 days in FY 2024-25, reflecting a change of 54.54%. This improvement indicates more efficient collections from debtors and an overall strengthening of the Companys financial position.

We consistentlygrowthis monitor the aging of receivables, and as a result, the average trade receivable days have decreased.

Trade Payables Turnover Ratio

During FY 2024-25, the companys Trade Payables Turnover Ratio improved significantly, with the average payment period reducing from 13 days in FY 2023-24 to 5 days, reflecting a change of 60.55%. This decrease reflects the Companys effective management of short-term obligations and its ability to negotiate favourable terms with suppliers. We maintain a proactive approach in monitoring the ageing of payables, increasingfrom10.36times which has contributed to a reduction in average trade payable days. This improvement underscores our commitment to maintaining strong supplier relationships and optimising our working capital cycle.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a robust internal control framework that is appropriately scaled to match the nature of itsof134.43%,increasing business operations and their complexity. These controls are designed to ensure operational efficiency, safeguard increasedcontributionform the Companys assets, ensure the accuracy and reliability of financial reporting, and maintain full compliance with applicable laws and regulations.

The Audit Committee plays a central role in overseeing the Companys risk management structure. It regularly reviews key risks, evaluates mitigation strategies, and ensures the effectiveness of the associated policies and procedures. Responsibility for the implementation of these frameworks rests with the management, who ensure that risk management practices are embedded within their respective areas of operation.

To maintain an objective assessment of the internal control environment, the Company has engaged an independent professional firm to conduct internal audits. This firm performs periodic reviews and reports directly to the Audit Committee,

. offering insights into the adequacy and performance of the Companys internal controls and risk management systems. Significant findings and are closely monitored by management to ensure timely and effective resolution.

Paresh Rakesh & Associates, the Companys statutory auditors, have audited both the standalone and consolidated financial statements included in this annual report. As part of their Auditors Report, they have also issued an attestation on the Companys internal financial controls in accordance withSection 143 of the Companies Act, 2013.

Following its review, the Audit Committee concluded that the Companys internal financial controls were adequate and functioning effectively as of March 31, 2025.

NAVIGATING THE LANDSCAPE OF OPPORTUNITIES AND THREATS

Leveraging Growth Potential (Opportunities)
Surging Agricultural Demand	The expanding global population and rising disposable incomes are fuelling a growing demand for agricultural commodities, such as grains, pulses, and oilseeds. This presents a significant opportunity for expanding our trading footprint and capturing a larger market share.
Precious Metals	The enduring cultural and economic value of gold and silver underpins a consistent demand.
Market Expansion	The rise of digital platforms for precious metal investments unlocks new trading opportunities.
Harnessing Trading Technology	Integrating cutting-edge technologies like blockchain and AI into our trading platforms promises enhanced transparency, efficiency, and security, attracting more market participants and boosting overall activity.
Capitalising on Financial Expertise	Our proficiency in capital markets allows for sophisticated risk management through derivatives and other financial instruments, providing a crucial advantage in navigating price volatility and optimising returns in commodity trading.
Benefiting from Government Initiatives	Favourable government policies aimed at agricultural modernisation and export promotion, alongside support for sustainable practices and infrastructure, create a positive environment for agricultural commodity trading.

Addressing Potential Challenges (Threats)
Managing Market Volatility	The inherent volatility of commodity markets, driven by factors like weather, geopolitics, and economic cycles, requires careful management to protect trading margins and profitability.
Mitigating Supply Chain Disruptions	Disruptions to the supply chain, whether from natural events, health crises, or logistical issues, can impact commodity availability and pricing, affecting our trading operations.
Navigating Global Economic Uncertainty	Economic downturns and international financial instability can dampen commodity demand, impacting trading volumes and overall profitability.
Addressing Technological Risks	While technology offers significant advantages, it also presents challenges such as cybersecurity threats and the continuous need for technological upgrades to avoid operational inefficiencies and market share erosion.

RISK AND CONCERNS

The Company recognises that navigating the complexities of the commodity trading and jewellery manufacturing sectors involves inherent risk and challenges. By identifying these risks, we can implement effective mitigation measures to safeguard our business and ensure sustainable growth in a dynamic market environment.

Risk	Impact	Mitigation Measures
Commodity Price Volatility Risk	Commodity markets are prone to considerable price fluctuations arising from factors such as imbalances in supply and demand, weather patterns, geopolitical instability, and speculative trading. Unfavourable price movements have the potential to affect the Companys profitability and margins.	To mitigate this risk, the Company employs hedging strategies on recognised stock exchanges. By establishing offsetting positions on the exchange, the Company can counteract potential losses resulting from adverse price movements. This approach contributes to the stabilisation of financial performance and ensures that the impact of price volatility is minimised, thereby safeguarding the Companys margins and profitability.
Regulatory And Legislative Risk	The Companys operations are subject to stringent regulations. Any negative alterations in the regulations, policies, or legislative frameworks governing commodity trading, derivatives, bullion trading, or jewellery manufacturing could have a detrimental effect on the Companys operations and increase compliance costs.	The Company maintains an internal legal and compliance team with comprehensive knowledge of market regulations. This team continuously monitors regulatory developments and implements necessary strategies to ensure adherence. By remaining proactive and well-informed, the Company can adapt swiftly to new regulations, thereby minimising potential disruptions and maintaining efficient operations.
Foreign Exchange Risk	The Companys international bullion trading activities, conducted through its Dubai subsidiary, can expose it to fluctuations in foreign exchange rates. These fluctuations have the potential to impact the Companys financial performance and profitability.	To manage this risk, the Company employs several strategies, including maintaining positions in US dollars and implementing robust policies and procedures for handling foreign exchange exposure. By taking well-considered positions in the international market, the Company can hedge against unfavourable currency movements, thereby safeguarding its financial performance and profitability rate volatility.
Operational And Internal Control Risks	The Companys operations include the handling and storage of valuable commodities such as gold and silver, alongside intricate trading activities. Any weaknesses in internal controls, security protocols, or operational procedures could result in the loss, theft, or misappropriation of assets.	To address this, the Company implements robust internal controls, conducts regular audits, and utilises reputable third-party vaulting agencies for the storage of precious metals. Furthermore, all holdings of precious metals are comprehensively insured.
Competition Risk	The commodity trading, derivatives, and jewellery manufacturing sectors are characterised by strong competition, with a significant number of participants active in the market. This intense competition has the potential to affect the Companys market share, pricing ability, and profitability.	The Company capitalises on its position as a major market participant with over a decade of operational history. Its competitive advantage is further reinforced by its strong infrastructure and substantial trading volumes, positioning it as one of the largest entities on the NCDEX. This established market presence and scale of operations assist the Company in maintaining its market share and pricing power.
Technological Risk	A failure to adopt and incorporate advanced technologies, such as real-time trading platforms, inventory management systems, or digital marketing tools, could place the Company at a competitive disadvantage and efficiency and impede its operational growth potential.	To mitigate this risk, the Company relies on its internal technology team and maintains an in-house system to address any technological disruptions. By not being dependent on external parties for critical technological requirements, the Company ensures its ability to adapt swiftly to new technological advancements and maintain continuous operations.

PEOPLE AND CULTURE

As of March 31, 2025, the Group had 68 permanent employees.

We are committed to being an organisation that attracts and retains top talent, offering an environment where individuals can learn, grow, and contribute meaningfully. Our workplace culture is grounded in core values, celebrates diversity, and promotes merit-based advancement aligned with individual aspirations.

We foster a positive and engaging work environment, placing strong emphasis on employee well-being. Through regular health assessments and structured wellness programmes, we encourage our people to prioritise their physical and mental health – contributing to higher productivity, satisfaction, and overall effectiveness. The company remains fully compliant with all Human Resources-related regulatory requirements and statutory obligations, upholding them in both letter and spirit. At AEL, we continuously invest in our employees, placing a strong emphasis on capability building and empowering them to reinvent themselves, stay agile and grow professionally. Developing a strong leadership pipeline and identifying high-potential talent remains a key focus. We actively promote from within, assigning expanded responsibilities to internal talent as part of their career progression. Our employees play a vital role in engaging with investors, partners, and other stakeholders. Their contribution is essential in representing the organisation with integrity and professionalism.

We also uphold the highest standards of safety across all our locations. Regular fire audits and adherence to established protocols ensure a safe and compliant workplace for all employees. Through this integrated approach to people development, well-being, compliance, and safety, we are building a motivated, future-ready workforce that drives sustained success for both individuals and the organisation.

SAFE HARBOUR/CAUTIONARY STATEMENT

This report, which describes our activities, projections, and expectations for the future, may contain certain ‘forward-looking statements as defined under applicable laws and regulations. Actual business results may differ materially from those expressed or implied due to various risk factors and uncertainties. We undertake no obligation to publicly amend, modify, or revise any forward-looking statements based on subsequent developments, information, or events, and assume no liability for any action taken by any party based on the information contained herein.

Closing Statement: Shaping the Future of Trade with Purpose and Precision

As we bring this Management Discussion and Analysis to a close, we reflectnot just on the numbers, but on the unwavering spirit that defines Abans Enterprises Limited (AEL). FY 2024-25 was a year of extraordinary transformation – across global commodity markets, financial ecosystems, and operational frameworks. Amidst geopolitical shifts and economic recalibrations, AEL remained anchored in its commitment to precision trading, ethical conduct, and strategic growth. The ever-evolving landscape of bullion, agri, and derivative markets offers not just complexity but opportunity. With our integrated trading model, technology-driven risk frameworks, and global sourcing presence, we are well-positioned to capture upside across cycles while mitigating volatility. Our ability to convert market signals into actionable insights – and those insights into structured, risk-managed trades

– is what continues to differentiate AEL in the competitive arena. We firmly believe that our people, our platforms, and our purpose will lead us through the next phase of innovation. As we build on the progress of the past and prepare for an increasingly interconnected future, we do so with confidence

– backed by the trust of our stakeholders and the discipline of our strategies.

In the words of Peter Drucker, "The best way to predict the future is to create it." At AEL, we are not just adapting to change – we are shaping it. We thank our shareholders, clients, partners, regulators, and employees for their continued belief in our vision. Together, let us continue charting a path where resilience meets opportunity, and performance meets purpose.

Believe in AEL. Together, lets shape what comes next.