Adinath Bio-Labs Ltd Management Discussions

Statements in this Report, particularly those which relate to the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied. Pursuant to Listing Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015 aligned with Companies Act, 2013, the Management Discussion & Analysis Report for the year under review is given below;

Indias goods and services exports have crossed a record $820 billion in financial year 2024-25, which represents a close to 6 per cent increase over the corresponding figure of $778 billion for the previous financial year, despite the economic uncertainties in global markets, according to data compiled by the Commerce Ministry.

In 2024, India continued with economic expansion, ensuring its status as an emerging global economic powerhouse. With a 6.6 percent gross domestic product (GDP) growth rate, the country retained its position as the worlds fifth-largest economy, steadily narrowing the gap with Germany, which ranks fourth at present. This performance showed Indias consistent trajectory of growth, marked by strategic initiatives and focused economic policies.

The Reserve Bank of India (RBI) released its latest Financial Stability Report (FSR) on December 30, 2024. Its findings align with the GDP growth projection of 6.6 percent for FY2024-25, as previously outlined by the outgoing RBI Governor Shaktikanta Das during the monetary policy announcement on December 6.

It must be noted that the FSR serves as a vital resource for understanding the stability of the Indian financial sector and identifying potential risks and is issued twice a year i.e., June and December.

The RBI projects Indias GDP growth rate at 6.6 percent for the fiscal year 2024-25, indicating a recovery trajectory following the economic slowdown experienced during the first half of the fiscal year. This growth forecast reflects a positive outlook for the economy amid improving financial stability.

The December 2024 FSR notes that Indias banking system is grappling with a growing liquidity deficit, which stood at INR 2.43 trillion (US$28.38 billion) as of December 23, 2024. This deficit is driven by factors such as tax outflows and the central banks foreign exchange interventions. To address the issue, market participants anticipate measures like open market bond purchases and potential reductions in the cash reserve ratio (CRR).

The latest International Monetary Fund (IMF) projections indicate that India will surpass Japan by 2025 to become the fourth-largest global economy. The country is projected to surpass Japan in the coming year with a nominal GDP of US$4,340 billion. At present, Indias economy is fifth largest in the world.

The geographic trends in the FDI source data indicate popular jurisdictions with which India enjoys strong investment relationships. Notably, Mauritius led with 25 percent of total FDI equity inflow, amounting to US$177.19 billion, primarily due to tax treaties and ease of investment structures. Singapore followed closely, contributing 24 percent of inflows (US$167.47 billion), reflecting its role as a hub for global investment funds.

Indias trade performance in 2024 reflects the countrys rising prominence as a key player in 5international markets. The year 2025 marked achievements in exports and imports, backed by robust policies and strategic partnerships.

Pharmaceuticals: Leveraging its position as a major producer of generic drugs, India expanded its pharmaceutical exports to emerging markets in Africa, Asia, and Latin America.

Agriculture and processed food: India maintained its position as a top exporter of rice, spices, and marine products, with new markets opening up in the Middle East and Southeast Asia.

Global growth is projected to stay at 3.1 percent in 2024 and rise to 3.2 percent in 2025. Elevated central bank rates to fight inflation and a withdrawal of fiscal support amid high debt weigh on economic activity. Inflation is falling faster than expected in most regions, amid unwinding supply-side issues and restrictive monetary policy. Global headline inflation is expected to fall to 5.8 percent in 2024 and 4.4 percent in 2025, with the 2025 forecast having been revised down. If the current forecast is realized, trade growth will remain positive in 2024. It should be noted that there is a high degree of uncertainty associated with the forecast due to shifting monetary policy in advanced economies and the unpredictable nature of the Russia-Ukraine and Gaza -Israel Conflicts. Despite the war in Ukraine and the lingering impact of the pandemic, trade in both goods and services have seen strong growth this year.

The Company operates mainly in Indian Market and engaged in Business of Trading. The management of Adinath Bio-Labs Limited presents the analysis of performance of the Company for the Financial Year 2024-2025 and its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic and other developments. During the year under review, the Company earned total revenue of ^ 7.68 lakh.

Outlook for 2024-2025, Your Company is planning to develop business through diversification mixed with sustain efforts in the present business line. The Board is hopeful for achieving good income & profitability in years to come.

The Company is into the business of trading.

a) High Tariffs and Protectionist Policies

b) Price Sensitivity

c) Infrastructure

d) Power of States

a) Favorable Government regulations

b) Favorable macro-economies and micro-economies conditions

c) Niche for growth

a) Economic restriction due to Corona Lockdown in the Country.

b) Competition in the Indian market from large traders

c) Geographically located in East India and presently not covering pan India

d) Increase in cost of logistics

Both local and foreign stakeholders are being impacted by the significant price changes that are occurring on the Indian commodity market. These fluctuations are affecting a variety of commodities. The fluctuations in prices have substantial repercussions for the economy as a whole, as well as for commercial traders, manufacturers, and consumers.

Uncertainties in business offer opportunities and downside risks. Consequently, the Company recognizes the importance of well-structured system to identify and manage the different elements of risk.

Pressure on margins, high manpower and infrastructure cost, availability of substitutes, higher overheads, are some factors which could impact adversely especially as we strive to tap into the competitive markets.

The Financial Statements have been prepared and presented under the historical cost convention, unless otherwise specifically stated, on the accrual basis of accounting and comply with the applicable accounting standards referred to in the Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

The Company has adequate internal control procedure commensurate with its size and nature of the business. The nature control system is supplemented by extensive internal audit s regular review by the management and well documented policies and guidelines to ensure reliability of financial and all other records to prepare financial statement and other data. Moreover, the Company continuously upgrades these systems in line with best accounting practices. The Company has independent audit system to monitor the entire operation and the audit committee of the Board reviews the findings and recommendation of the internal auditors

Human Resources Development envisages the growth of the individual in tandem with the organization. It also aims at the Up-liftment of the individual by ensuring an enabling environment to develop capabilities and to optimize performance.

Human Capital refers to our employees and their commitment and motivation towards achieving organizational goals. This is critical to creating value for our clients and ensuring the long-term sustainability of our business. We strive to foster a people centric culture that enables high performance. Our unwavering focus on engaging, developing and retaining talent, while promoting inclusivity, diversity and transparency, is central to our business strategy.

The Company, on its part, would endeavor to tap individual talents and through various initiatives, ingrain in our human resources, a sense of job satisfaction that would, with time, percolates down the line. It is also the endeavor of the Company to create in its employees a sense of belonging, and an environment that promotes openness, creativity and innovation.

DISCLOSURE OF ACCOUNTING TREATMENT:

In preparation of it financial statement no accounting treatment different from that prescribed in the accounting standard has been followed.

Directors of your Company are very hopeful to build up the performance of the company and post better results in the forthcoming financial year and to add value to the shareholders. The Company is hopeful of improving its turnover and bottom line and hopeful of posting better revenue ahead. Financial Highlights with respect to Operational Performance is as under:

NA - Not Applicable

Statement in the management discussion & analysis describing the Companys objectives, projections, estimates & exceptions may be “forward looking statements" within the meaning of applicable securities laws & regulations. These statements being based on certain assumptions and expectation of future events, actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of subsequent developments, information or events. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the companys operations include economic conditions affecting demand/supply and price conditions in the domestic & overseas markets in which the company operates changes in the Government regulations, tax laws & other statutes & other incidental factors.