Adarsh Plant Protect Ltd Management Discussions

INDIAS ECONOMIC GROWTH: A BRIGHT SPOT AMIDST GLOBAL UNCERTAINTY

Indias economic growth trajectory has been a beacon of resilience and dynamism, garnering global attention amidst an environment of global tensions and economic stagnancy. According to FICCI report, softening price levels and ensuing monetary policy easing in some of the major economies, positive momentum in interest sensitive sectors, and continued recovery in service sector are expected to bode well for the growth prospects this year. According to OECDs latest assessment on economic outlook, global growth is forecasted at 3.3 percent in 2025, marking a marginal increase vis-a-vis the 3.2 percent growth estimate of 2024. The growth is expected to remain below the pre- pandemic average (2013-2019) of about 3.4 percent Also, variation in growth trajectories across countries remains.

Indias economic outlook for 2025 reflects cautious optimism, amidst the backdrop of persisting external headwinds. Indias economic outlook for 2025-26 is generally positive, with most forecasts projecting a growth rale of around 6.2% to 6.5%. The Reserve Bank of India projects a real GDP growth of 6.5% for 2025-26, says PIB. The World Bank has also maintained its growth forecast for India at 6.3% for the fiscal year 2025-26. Some reports suggest that India has the potential to become the worlds third-largest economy by 2030. Despite some downward revisions. India is still projected to be the fastest-growing major economy, outpacing many global and regional competitors.

KEY DRIVERS OF ECONOMIC GROWTH

Strong Domestic Demand: Strong domestic demand, especially private consumption and government spending, are expected to be the main engines of growth On the positive side, participating economists expect consumer spending to gain momentum, driven by an improved outlook for the agriculture sector, which is likely to bolster rural consumption and sentiment in the first half of the next fiscal year

Moderating Inflation: Inflationary pressures have been moderating, providing a more stable macroeconomic environment. The Reserve Bank of Indias prudent monetary policy has helped keep inflation in check, fostering a conducive environment for investment and consumption.

Manufacturing Resurgence: Initiatives such as "Make in India" and the Production Linked Incentive (PLI) schemes are revitalizing the manufactunng sector. Increased domestic and foreign investments in manufacturing are boosting industrial output and creating employment opportunities.

Service Sector Resilience: Indias service sector, particularly IT and IT-enabled services, continues to perform strongly. The sector remains a key driver of economic growth, contributing significantly to GDP and exports.

Investment: On investment front, the governments focus on capital expenditure is expected to remain a key growth driver in the year 2025-26. Investments in infrastructure and allied sectors—such as roads, housing, logistics, and railways—are anticipated to further economic momentum. Additionally, the services sector, particularly hospitality, real estate, health, and education, is expected to contribute to creation of fresh capacity.

Resilience to Global Winds: Indias diversified economy and prudent economic policies have helped it navigate global economic uncertainties better than many other economies. The countrys resilience is further supported by its robust foreign exchange reserves and a stable financial system.

Supply Chain Diversification: As global companies seek to diversify their supply chains, India is emerging as a preferred destination. The governments policies to enhance ease of doing business and improve logistics infrastructure are making India an attractive hub for global manufacturing and services.

ECONOMIC OVERVIEW

In the midst of global tensions and stagnancy, India is poised to benefit from global supply chain diversification away from China. Expanding trade and investment partnerships across agriculture, defence, energy, healthcare, and emerging technologies will foster mutual growth. Development of high-quality industrial clusters with robust backward and forward linkages is essential for India to integrate into diversifying global supply chains. Complementing this effort, infrastructure upgrades and sector-specific policies can attract greater foreign direct investment (FDI).

The Union Budget for 2025-26, as presented on 1st February 2025, amidst global economic uncertainties and moderating domestic growth, focused on following factors:

-Boosting Private Consumption

-Enhancing Capital Expenditure

-Strengthening Agriculture and Rural Economy

INDUSTRY STRUCTURE. DEVELOPMENTS. AND OUTLOOK

• Outlook

Your Companys products are related to three segments: (i) Industrial Packaging, and (ii) Agriculture Plant and Protect, and (iii) Smokeless chulha/ Ecostove.

The Management of your Company expects the year 2025-26 to have a promising and prosperous growth in the Companys overall performance. Business operations have resumed to normalcy, but macro-economic concerns still affect fluctuations in raw material prices. The Management is confident in achieving growth in all segments, overcoming the challenges ahead.

i. Industrial Packaging

The future of the India industrial drums market appears promising, propelled by burgeoning e-commerce, pharmaceutical, and food industries With the rise in demand for safe and durable packaging solutions, the market is likely to witness strong growth.

India industrial drums market is experiencing consistent growth with increasing demand for effective storage and transport facilities in diverse industnes. As per 6W research. India Industrial Drums Market Size is projected to reach at a CAGR 8 5% during the 2025 to 2031 The Indian industrial drums market is projected to experience steady growth due to secure storage solutions across various industries, including chemicals, paints, and food processing.

ii. Agriculture and Plant Protection

Agriculture and allied sectors are central to the Indian economy. The outlook for the agricultural equipment and plant protection market in 2025 is positive, with strong growth expected due to factors like increased food demand, precision agriculture adoption, and technological advancements. The market is experiencing a shift towards more sustainable and efficient practices, with innovations like smart sensors, drones, and Al-powered tools gaining traction.

The Indian agricultural equipment market is projected to grow significantly, with a CAGR of 8.63% between 2025 and 2033. according to IMARC Group. Technavio forecasts CAGR of 8.4% for the period 2025-2029.

Overall, the agricultural equipment and plant protection sector is poised for significant growth and transformation in 2025. driven by technological innovation and a growing emphasis on sustainability.

iii. Smokeless Chulha and Ecostove

The outlook for eco-stoves in 2025 is generally positive, with continued growth expected due to factors like increasing energy costs, environmental awareness, and the push for energy-efficient solutions. However, manufacturers face challenges like higher production costs related to advanced combustion technologies and competition from other heating options like heat pumps.

• Company Overview

• Performance for the Period

/. Industrial Packaging Segment

The sales related to Industrial Packaging of your Company is the major contributor to the revenue of the Company. Increased marketing spend and an expanded sales team have resulted in a larger customer base, projecting strong growth for the coming year The Management has thoroughly discussed possible risks and concerns and has taken appropriate countermeasures. The efforts put in over the last couple of years to increase the customer pool have provided long-term revenue visibility, which further helps in efficiently managing overheads and working capital to increase overall profitability. The packaging industry is one of the growing industries in India, and its dynamic nature requires periodic reviews and adaptations of strategies and plans.

This year, your Company has invested more in marketing activities to increase market penetration in the industrial packaging segment. With a view to increase its share in the industrial packaging market, we have shifted our focus from MS Barrel to Insulated Composite Barrel so as to provide reliable packaging that

mitigates temperature variation for temperature sensitive products which leads to longer shelf life of the material stored therein.

II. Agriculture and Plant Protection Segment

The Management believes the agricultural industry will see a revival in the current year due to regular monsoons and increased government spending on the agriculture sector. Additionally, increased spending capacity, easy availability of funds, and rising disposable income can also lead to growth in this segment.

The agriculture and plant protection is yet to witness remarkable growth in sales. The margins were in line with the Managements budget.

Hi. Smokeless Chulha/Ecostove

The business of this product is yet to perform up to its potential, but the Management is confident that it will do well in the coming years. The year witnessed a rapid growth in sales as compared to the previous year.

The Management has Increased its focus on this segment by taking vital steps in terms of increasing marketing campaigns and creating awareness of the product . Government channels and export channels are both underpenetrated for the product manufactured by the Company. The Company is positive about increasing sales in this segment with a strong sustainable business approach.

• Financial performance vis-a-vis Operational performance

A. Fina ncial Highlights

(Rs. in Lakhs)

PARTICULARS	2024-25	2023-24
Revenue from Operations	1749.70	1864.90
Other Income	0.95	0.28
Total Income	1750.65	1865.18
Profit before Finance Costs, Depreciation, Exceptional Items, Extraordinary Items and Tax	(84.25)	75.87
Less: Finance Costs	20.45	20.88
Profit before Depreciation, Exceptional Items, Extraordinary Items and Tax	(104.70)	54.99
Less: Depreciation/ Amortisation/ Impairment	7.19	6.39
Profit before Exceptional Items, Extraordinary Items and Tax	(111.89)	48.60
Less: Exceptional Items and Extraordinary Items	0.00	0.00
Profit before Tax	(111.80	48.60
Less: Current Tax, net of earlier year adjustments	0.00	0.00
Less: Deferred Tax	0.00	0.00
Profit after tax for the financial year (A)	(111.89)	48.60
Total Other Comprehensive Income/ Loss (B)	0.44	0.00
Total Comprehensive Income for the financial year (A+B)	(111.46)	48.60
Earnings Per Share (EPS in Rupees)
Basic	(1.13)	0.49
Diluted	(1.13)	0.49

Previous years figures are restated, regrouped, rearranged and recast, wherever considered necessary.

B. Segment-wise Operational Performance

(Rs. in Lakhs)

Particulars	2024-25	2023-24
Revenue
a) Industrial Packaging	1566.48	1687.05
b) Agriculture and Plant Protection	9.25	13.86
c) Smokeless Chulha and Ecostove	173.97	164.26

Tax liability

Since the Company has incurred loss since last many years, your Company was not falling in to liability to pay taxes and this year too as there is large amount of carried forward losses your Company is not liable to pay any tax.

C. Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor

Key Financial Ratios	2024-25	2023-24	Detailed explanation for change of 25% or more, if any
Debtors Turnover (days)	63.51	63.91	incremental decrease in turnover compared to marginal decrease in number of debtors
Inventory Turnover (days)	80.80	81.10	incremental decrease in turnover compared to marginal decrease in inventory level
Interest Coverage Ratio (times)	(4.45)	3.33
Current Ratio	1.36	1.71
Debt Equity Ratio (considering long term and short -term debt)	12.22	3.08
Operating Profit Margin (%)	(5.20)	3.73
Net Profit Margin (%)	(6.39)	2.61

D. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof

Return on Net Worth	2024-25	2023-24	Detailed explanation for change of 25% or more, if any
Return on Net Worth (PAT/ Net Worth)	( 322.19)	33.25	decrease in net profit and shareholders fund

Opportunities and Threats /. Industrial Packaging Segment

Opportunities:

• Growth in the Chemical and specialty sector.

• Growth in Exports due to the governments push for increasing domestic production.

• Adding new products in the product portfolio

• Tapping new domestic markets.

Threats:

• Material Cost Volatility

• Logistics & Distribution Bottlenecks

• Limited Recycling and Reuse Infrastructure

• Quality and Safety Standards

• Leakage and Tamper Issues

• Lack of Customization

//. Agriculture and Plant Protection Segment

Opportunities:

• Market Growth

• TechnologicalAdvancements

• Government Support Threats:

• Supply Chain Challenges

• New entrants in the market

• Substitute and alternative products.

• Fluctuation in commodity prices.

• Political Instability

Hi. Smokeless Chulha and Ecostove Opportunities:

• Growing Demand

• Environmental Consciousness

• Cost Savings

• Government Support

• TechnologicalAdvancements.

• Diversification

• Export Market.

• Development of new sales and distribution channels. Threats:

• High Initial Costs

• Infrastructure Limitations

• New entrants in the market.

• Raw Material Costs.

• Regulatory Hurdles.

• Risks and Concerns

The major risks faced by the Company in operations of its business are namely, availability of raw materials, fluctuation in price of raw materials, inconsistency of overhead cost such freight, electricity and labor and regulatory or political changes and their policies. To mitigate the same, the Company plans to procure the raw materials and reduce the overhead cost so as to maximize profit. Your Directors are now rigorously looking for measures to pursue all available infrastructural, manufacturing and financial resources to the fullest extent and in the best interest of the Shareholders of the Company.

Risk Management

Your Company follows well-established and detailed risk assessment and minimisation procedures, which are periodically reviewed by the Board. Your Company recognizes the importance of managing risk in the business to sustain growth. The Management of your Company follows a structured and disciplined approach to Risk Management in order to guide decisions on risk related issues and to mitigate various risks viz operational risk.

financial risk, regulatory risk, reputational risk. etc. Your Company has entrusted the Audit Committee with the responsibility of implementing and monitoring of the Risk Management Policy on a periodic basis.

The Companys risk Management approach strives to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the Companys business and processes

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company is committed to ensuring an effective internal control environment that provides reasonable assurance regarding the effectiveness and efficiency of operations, adequacy of safeguarding of assets, reliability of financial controls and compliance with applicable laws and regulations. The Company has adequate internal control systems commensurate with its size. Internal Auditor of the Company is entrusted the work of reviewing adequacy of internal control system and frequency of Audit compliance with the existing Accounting Standards. The duty of the Internal Auditor is to report to the Board of Directors and Audit Committee and place its report at every Audit Committee Meeting and subsequent Board Meeting and also remain present to interact with Board and Audit Committee for any suggestion of improvement in the Internal Control Audit Systems and steps to be taken thereon to improve the internal control system. The internal auditors ensure that internal controls are reviewed through the periodical internal audit process in consultation with the Audit Committee. Internal auditors cover every operational unit and all major corporate functions under the guidance of the Audit Committee of the Board.

The Audit Committee oversees the adequacy of the internal control environment through periodic reviews of audit findings and monitoring implementations of internal audit recommendations through compliance reports. The Certification by the Managing Director and the Chief Financial Officer of the Company has been provided elsewhere in this Annual Report and discusses the adequacy of the internal control systems and procedures.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES

Your Company considers people as the most important and valuable asset and the backbone of its success. Your Companys employees are highly efficient and committed to the growth of the business.

Your Company has well documented and updated policies in place to prevent any kind of discrimination and harassment, including sexual harassment. The Whistle Blower Policy plays an important role as a watchdog. The total employee strength of your Company as on 31^l March. 2025 stands at 39.

Cautionary Statement

The report of the Board of Directors. Management Discussions and Analysis Report are forward looking and affirmative statements within the meaning of the applicable securities and regulations. The actual performance in the coming years could differ from what is expressed or implied. The factors that could affect the Companys performance are the economic and other factors that affect the demand-supply balance in the domestic market, changes in governmental regulations, policies, and tax laws and other statues and host of other incidental factors.

	By the Order of the Board of Adarsh Plant Protect Limited
	Sd/- Mr. Naishadkumar Patel Chairperson
Date: 26r July. 2025	(DIN:00082749)