Alfavision Overseas (India) Ltd Management Discussions

i) FORWARD LOOKING STATEMENT

In this Report, we have disclosed some forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. All statements that address expectations or projections about the future, but not limited to the Companys strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements. Since these are based on certain assumptions and expectations of future events, the Company cannot guarantee that these are accurate or will be realised. The Companys actual results, performance or achievements could thus differ from those projected in any forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any such statements based on subsequent developments, information, or events. The Company disclaims any obligation to update these forward-looking statements, except as may be required by law.

The following discussions on our financial condition and result of operations should be read together with our audited financial statements and the notes to these statements included in the annual report. Unless otherwise specified or the context otherwise requires, all references herein to "we", "us", "our", "the Company "are to Alfavision Overseas (India) Limited.

ii) INDUSTRY STRUCTURE;

Our Company is engaged in the business of Organic farming, cultivation and herbal medicinal farming. Going organic is synonymous with modern-day Indian living. While India has always had a rich legacy of healthy living influenced by Ayurveda, the pandemic once again accelerated the demand for organic foods and an exponential increase in organic consumers. Today, people are becoming more aware of what they consume than ever before. The science of ‘From Farm to the Table has become part and parcel of everyones lives.

Considering the growing demand for healthy natural products, especially among millennials, the Indian organic market will definitely expect a surge in the coming years. According to Expert Market Research (EMR), the Indian organic food market stood at a value of USD 849.5 million in 2020. The market is further expected to grow at a CAGR of about 20.5% in the forecast period of2021 and 2026 to reach a value of about USD 2601 million by 2026.

The demand of herbal medicinal products has been increased in domestic and international market, and so exports of herbal medicine have reached a value of 100 million dollars a year. Company is having enough land and for the purpose of making proper use of that land, management is planning to cultivate herbal plants over that land, as the demand of herbal product increased drastically in international as well as domestic market. Cultivation of plants over unused land benefited the company. Company will develop

such plants with scientific techniques in order to maximize yield. Company is also planning to undertake integrated proj ect for farming, processing and storage of herbal crops on large scale. Besides the company is also embarking upon trading activities on large scale to maximize its margins.

iii) MARKET STZE:

In recent years, consumers in India have displayed a noticeable shift in their food preferences. They are increasingly concerned about the nutritional value and quality of the food they consume, leading them to explore organic alternatives. This change in behaviour stems from a desire to prioritize their health and well-being, as well as a growing awareness of the detrimental effects of chemical-laden farming practices on the environment.

According to a report, the Indian organic food market reached a value of $1,278 million in 2022. The projections are even more impressive, with estimates indicating that the market is expected to reach a value of $4,602 million by 2028, reflecting a compound annual growth rate (CAGR) of 23.8% during the period of2023-2028. These figures underline the immense potential and promising future of the organic sector in India.

iv) OPPORTUNITIES:

• Technological Innovation: Advancements in areas like bio pesticides, precision agriculture, and soil health management are making organic farming more efficient and productive. These innovations can help close the yield gap between organic and conventional methods.

• Policy Support: Governments around the world are increasingly recognizing the value of organic agriculture and implementing policies that encourage its adoption. This includes financial incentives for farmers, research funding, and support for organic infrastructure development.

• Consumer Education: As consumers become more aware of the benefits of organic food, demand is likely to continue to grow and how to face climate changes. This creates opportunities for farmers to expand their markets and connect directly with consumers through farmers markets, CSAs, and other direct-to-consumer channels.

• Environmental Benefits: Organic farming offers a range of environmental benefits, including improved soil health, reduced pollution, and increased biodiversity. These benefits are becoming increasingly important as we seek to address climate change and other environmental challenges.

v) CHAT XENGES TO CONSIDER:

• Lower Yields: Compared to conventional methods, organic farming often yields lower crop outputs. This can be due to factors like pest and disease pressure, nutrient limitations, and reliance on less potent weed control methods.

• Higher Labour Costs: Organic farming is typically more labour-intensive than conventional agriculture.

This is because tasks like hand weeding, crop rotation, crop residue and maintaining soil health require significant human input.

• Limited Infrastructure: The infrastructure for processing, storing, and distributing organic produce is often less developed than for conventional products. This can lead to challenges in getting organic food from farm to table.

• Market Access: While demand for organic food is growing, it still represents a niche market in many regions. This can make it difficult for organic farmers to find reliable buyers and secure fair prices for their produce.

• Higher Production Cost: Organic farming methods require more labours, and organic inputs are often more expensive than conventional inputs. This cost makes it difficult for small farmers to enter the organic agriculture market, which limits the growth of the industry

- Lack of standardization and certification: One of the primary challenges in the global organic agriculture market is the lack of standardization and certification. Different countries have different standards for organic farming, which can make it challenging for farmers to comply with the regulations. This lack of standardization also makes it difficult for consumers to understand what they are buying.

vi) BUSINESS STRATEGY:

Our company had always endeavoured to optimize shareholder value. The Company is planning to increase Organic Farming as after considering the Location and resources of the company as there is a huge scope available for the company for Organic farming at a large scale.

vii) OUTLOOK:

Our company is engaged in Organic farming and is planning to expand it at a large scale. Company is taking many steps to increase the Sales Turnover, Quantity and Quality as well as the Profit Margins and expects to achieve the optimums in near future.

Also, our Company has adequate area of land at Bhopal which is suitable for Mega Agro activities like Cultivation of medicinal plants organic manure, farming and also development of green dense resorts for entertaining citizens. Company is exploring the various possibilities of developing the said land.

viii) RISK AND CONCERNS:

The competition in global market of herbal products affects the business activities of the Company. The loss of such types of specific jadibhutties in nature, lack of processing method also affects the profitability of the Company.

ix) INTERNAL CONTROL AND ADEQUACY;

The Managing Director (MD) and Chief Financial Officer (CFO) are accountable for financial controls,

with their effectiveness measured through objective metrics like accounting hygiene and audit scores, while the Company ensures strong governance through regular investor communication and adherence to regulatory and statutory requirements.

The Company has implemented a robust internal control system to ensure the accurate and timely preparation of financial statements and management reports, maintain regulatory and statutory compliance, and protect investor interests, with the Audit Committee reviewing the systems effectiveness.

A Certificate signed by the MD and CFO, included in the Corporate Governance Report, confirms the presence of effective internal control systems and procedures.

The Company continuously strengthens its internal control systems through background verification of new employees, a whistle-blower policy for reporting unethical behaviour, and enhanced risk management processes for multiple projects. The internal control systems are regularly updated to provide high assurance of operational effectiveness and efficiency, adequate asset protection, reliable financial controls, and compliance with applicable laws and regulations.

This comprehensive approach reflects the Companys commitment to maintaining a high standard of financial and operational integrity, ensuring that its internal control systems are both effective and continually improved to address evolving needs and challenges.

x) PREVENTION OF INSIDER TRADING:

In view of the SEBI (Prohibition of Insider Trading) Regulation, 2015 the Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading in securities by the Directors and designated employees of the Company and amended Code/Policy were also hosted on the website of Company. The Code requires Trading Plan, pre-clearance for dealing in the Companys shares and prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed.

xi) MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATION:

There has been no material development on the Human Resources/ industrial Relation front during the year. Employee relations at all level continue to remain cordial.

xii) FINANCIAL PERFORMANCE OVERVIEW:

The discussions in this section relate to the Rupee-denominated financial results pertaining to the year that ended 31 st March, 2025. The financial statements of Alfavision Overseas (India) Limited are prepared in accordance with the Indian Accounting Standards (referred to as Ind AS ) prescribed under section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, as amended

from time to time. Significant accounting policies used in the preparation of the financial statements are disclosed in the notes to financial statements.

The following table gives an overview of the Standalone financial results of the company:

	STANDALONE
PARTICULARS	31.03.2025	31.03.2024
Total Revenue	192.20	318.10
Total Expenses	180.02	290.46
Profit Before Tax	12.18	27.64
Profit After Tax	12.18	27.64
Earnings per share
(i) Basic	0.04	0.09
(ii) Diluted	0.04	0.09

xiii) RESOURCES AND LIQUIDITY:

a. As on 31st March, 2025, the net worth stood at Rs. 1209.26 Lakhs and the total debt was at Rs. 13565.90 Lakhs.

b. The cash and cash equivalents at the end of 31 st March, 2025 were Rs. 7.72 Lakhs.

c. The net debt to equity ratio of the Company stood at 2.95:1 as on 31 st March, 2025.

xiv) DETAILS OF SIGNIFICANT CHANGES IN KEY RATIOS AND NUMBERS

PARTICULARS	2024-25	2023-24	Variance	Comments for Variation in ratio above 25%
Trade Receivable Turnover	0.07	0.14	-50.00%	Due to decreased sales as currently company is dealing in organic farming business gross sales is reduced whereas due to stucked trade receivables of cotton business average trade receivables is decreased.
Inventory Turnover			-0.00%
Current Ratio	24.73	3105	-20.35%	-
Debt Equity Ratio	2.95	3.23	-8.67%	-
Net Profit Margin Ratio	0.06	0.09	-33.33%	Due to Decrease in gross sales and gross purchase and due to agriculture seasonal business the profit margin are squeezed due to which the net profit reduces and further the other income is also reduced in comparison of previous year which also affected the net profit.
Return on Equity Ratio	0.01	0.01	-0%

xv) CAUTIONARY STATEMENT:

This report may contain "forward looking statements", by company, which are not historical in nature. These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, many of which are beyond our control and difficult to predict. This could cause actual results, performance or achievements to differ materially from those estimated in these statements.

	For and on behalf of the Board
	Sd/-
	Vishnu Prasad Goyal
Date: 05/09/2025	Chairman & Managing Director
Place: Indore	DIN: 00306034