Alka India Ltd Management Discussions

1. Introduction:

Alka India Limited (the Company), a Mumbai-based entity incorporated in 1993 and listed on the BSE (Scrip Code: 530889), was historically engaged in the textile manufacturing and trading sector, with operations spanning cotton, yarn, fabrics, and allied import-export activities in yarns, rayon, ibers, and cotton textiles. Over the years, the Company operated in a highly competitive and cyclical textile industry. However, the Financial Year 2024 25 (April 1, 2024 to March 31, 2025) marked a significant turning point in its corporate journey. Following the initiation of the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 in December 2023, the Honble National Company Law Tribunal (NCLT), Mumbai Bench, approved the Resolution Plan on February 7, 2025. This led to a comprehensive restructuring of the Companys capital and governance framework, including the extinguishment of the erstwhile promoters shareholding, reconstitution of public shareholding to 5% of the post-restructured capital, and allotment of fresh equity shares to new promoters and public shareholders. Given the late-stage implementation of the Resolution Plan during the inancial year, the Companys performance for FY 2024 25 was primarily characterized by effort on debt restructuring and operational realignment. In line with the strategic vision of the new management, a proposal for diversi ication was placed before the shareholders at the Annual General Meeting held on March 23, 2026, seeking alteration of the Object Clause of the Memorandum of Association (MOA). Pursuant to the shareholders approval, the Board of Directors duly amended the Object Clause, enabling the Company to venture into new business domains. Consequently, the Company has initiated its operations in the agro commodities sector, marking a strategic shift from its legacy textile business to a more diversi ied and growth-oriented business model. This transition is expected to position the Company for improved operational sustainability and long-term value creation.

2. Economic and Industry Overview:

During FY 2025 26, the Indian economy continued to exhibit strong resilience, underpinned by controlled installation, a steady revival in rural consumption, and sustained policy emphasis on agriculture and allied activities. Supportive monsoon conditions, upward revisions in Minimum Support Prices (MSP), and continuity in government policies contributed to enhanced farm incomes and improved agricultural productivity. The agriculture sector remained a cornerstone of the Indian economy, accounting for nearly 15 18% of GDP and providing livelihood to a large segment of the population. The recovery in rural demand had a positive spillover effect across the agro-commodity ecosystem, strengthening consumption patterns and market activity. During the year, India recorded healthy agricultural output across key crop categories, including food grains such as rice, wheat, and pulses, as well as oilseeds, sugarcane, and cotton. Favourable rainfall distribution, along with increasing adoption of farm mechanization and modern agri-technologies, played a crucial role in enhancing productivity levels. Nevertheless, certain regions experienced climatic inconsistencies and isolated extreme weather events, which continued to pose challenges to overall output stability. The agro-commodity markets witnessed a degree of price fluctuation during the year, influenced by multiple external and domestic factors. These included disruptions in global supply chains, geopolitical developments impacting commodity trade lows, periodic changes in export-import regulations, and volatility in international commodity prices. Despite these factors, domestic demand remained robust, while exports of commodities such as rice, spices, and sugar made a meaningful contribution to the countrys foreign exchange earnings. The Government also undertook selective interventions, including export controls on speci ic commodities, with the objective of maintaining price stability in the domestic market. On the policy front, the Government of India maintained its focus on strengthening the agricultural sector through a range of structural and developmental initiatives. These included scaling up investments under the Agriculture Infrastructure Fund, encouraging digital transformation through platforms like the electronic National Agriculture Market (e-NAM), periodic increases in MSP for key crops, and targeted efforts to enhance self-reliance in oilseeds and pulses. Furthermore, continued emphasis on improving supply chain infrastructure such as warehousing, cold storage, and logistics helped in enhancing market linkages and minimizing post-harvest losses.

3. Operational Review (Segment wise):

During the year under review, Alka India Limited marked the initial phase of its operations in the agro-commodity segment following its strategic transition into the sector. Within a relatively short period from the commencement of business activities, the Company has been able to establish a modest yet meaningful presence in the market and initiate its trading and supply chain network. For the financial year, the Company reported an overall turnover of approximately 1.5 crore, reflecting the early-stage nature of its operations and the gradual scaling of business activities. This performance demonstrates the Companys ability to effectively enter the agro-commodity space, build initial customer relationships, and execute its sourcing and distribution strategies in a competitive environment. The management believes that the operational groundwork laid during the year provides a stable platform for future expansion. With a focused approach towards strengthening procurement channels, enhancing market reach, and improving operational efficiencies, the Company is well-positioned to scale its operations and achieve sustainable growth in the agro-commodity and allied sectors in the coming years.

4. Financial Review:

The FY 2025-26 financials reflect the transitional nature of the year, with a net pro it of Rs. 17.81 Lakhs

Key highlights (standalone, audited):

(Rs. In Lakh)

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	250.21	0
Total Revenue	250.21	6.27
Total Expenses	232.40	50.85
EBITDA	17.81	(44.58)

Particulars	FY 2025-26	FY 2024-25
Pro it/(Loss) Before Tax	17.81	(44.58)
Net Pro it/(Loss)	17.81	(44.58)
EPS (Basic & Diluted, Rs.)	0.36	(0.01)

Key highlights (consolidated, audited):

(Rs. In Lakh)

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	250.21	0
Total Revenue	250.78	6.76
Total Expenses	232.51	51.04
EBITDA	18.27	(44.28)
Pro it/(Loss) Before Tax	18.27	(44.28)
Net Pro it/(Loss)	18.27	(44.28)
EPS (Basic & Diluted, Rs.)	0.37	(0.01)

5. Risks and Opportunities:

Risks:

Dependence on monsoon and exposure to adverse climatic conditions

Price volatility due to global trends, demand-supply mismatch, and currency luctuations

Regulatory risks including changes in MSP, export-import policies, and government interventions

Supply chain disruptions and infrastructure constraints

Intense competition from organized and unorganized players

Working capital requirements, credit risk, and counterparty defaults

Opportunities:

Growing domestic demand driven by population growth and rising rural incomes

Export potential for agro-commodities such as rice, pulses, spices, and oilseeds

Supportive government policies and increased investment in agri-infrastructure

Expansion of digital platforms and organized trading ecosystem

Improved supply chain infrastructure (warehousing, logistics, cold storage)

Scope for business scalability and diversi ication into value-added products

Threats:

Input shortages

Increased cost of cultivation

Lower farm output (downstream impact on commodity supply)

6. Outlook:

The outlook for the agro-commodities sector remains positive, supported by strong domestic consumption, favorable government policies, and increasing focus on agricultural productivity and infrastructure development. Rising demand for food and allied products, coupled with export opportunities, is expected to drive steady growth in the sector.

For Alka India Limited, the transition into the agro-commodities business marks the beginning of a new growth phase. Building on the initial operational foundation established during the year, the Company aims to gradually scale its trading activities, strengthen its supply chain network, and expand its market presence.

The management remains focused on enhancing operational efficiencies, managing risks prudently, and exploring opportunities in high-growth segments within the agro-commodity value chain. With a disciplined approach and evolving business strategy, the Company is well-positioned to achieve sustainable growth and create long-term value for its stakeholders.

7. Internal control systems and their adequacy:

The Company has established a comprehensive system of internal controls commensurate with the size, scale, and complexity of its operations in the agro-commodity business. These internal controls are designed to ensure orderly and efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information. Given the nature of the agro-commodity sector, the Company has implemented process-specific controls across the value chain, including procurement, storage, trading, and distribution. Key elements of the internal control framework include:

Procurement Controls:

Standardized procedures for vendor empanelment, quality verification, weighment controls, and price benchmarking to ensure transparency and prevent procurement-related risks.

Inventory Management Controls:

Robust systems for monitoring stock levels, periodic physical verification, reconciliation of book and physical inventory, and controls over storage conditions to mitigate risks of spoilage, pilferage, and quality deterioration.

Trading and Contract Management:

Defined approval matrices for purchase and sale contracts, monitoring of open positions, and risk management mechanisms to address price volatility and counterparty risks.

Financial Controls:

Adequate checks and balances for authorization, recording, and reporting of financial transactions, supported by ERP-based systems to ensure accuracy, audit trails, and compliance with applicable accounting standards.

Logistics and Supply Chain Controls:

Controls over movement of goods, including documentation, transporter due diligence, and tracking mechanisms to ensure timely and secure delivery.

Compliance Framework:

Systems to ensure adherence to applicable laws and regulations, including those relating to food safety, taxation, environmental norms, and stock exchange requirements.

IT and Data Controls:

Adequate information technology controls, including access restrictions, data backup, and system validations, to ensure integrity and security of business data.

The Company has also instituted an independent Internal Audit function , which periodically reviews the adequacy and effectiveness of internal controls across all functions. The internal audit reports, along with management responses and action plans, are placed before the Audit Committee of the Board for review and guidance.

8. Discussion on financial performance with respect to operational performance:

After the change in objects of the company dated 23 rd March 2026, the company has started trading of the agro-commodity goods. During this time, the Companys financial performance was closely aligned with its operational dynamics, which are inherently influenced by agro-climatic conditions, commodity price movements, and regulatory developments. a. Revenue from Operations:

The revenue of the Company is primarily driven by trading volumes and prevailing market prices of agro-commodities. During the year, revenue performance was decent. While the Company witnessed its first sales after introduction of the new management. b. Cost of Goods Sold (COGS) and Margins:

The cost structure of the Company is largely dependent on procurement prices, which are subject to seasonal variations and market conditions. During the year, there were no comparable previous year data. However, the margins were better than its peers. The Company continues to operate on relatively better margins . c. Operating Profitability:

Operating pro it (EBITDA) during the year was influenced by:

Efficient execution of procurement strategies

Inventory turnover and holding period

Ability to manage price risks and optimize trading spreads

The Company undertook measures to optimize operational efficiencies, including better supply chain coordination and cost rationalization, which partially offset adverse market conditions. During the year, the management was able to keep the EBIDTA over 7%. d. Inventory and Working Capital Management:

Given the nature of the business, inventory plays a critical role in operational and financial performance. The Company maintained optimal inventory levels to balance:

Price risk

Storage costs

Demand-supply dynamics

Working capital requirements remained elevated due to the need to finance procurement and maintain adequate stock levels. e. Other Income and Finance Costs:

During the year, the company has not indulged into taking finance from any bank or public financial Institutions.

f. Net Pro it / (Loss):

The net profitability of the Company reflects the combined impact of operational performance, cost management, and market conditions. Any pro it is attributable to:

Changes in trading volumes and realizations

Margin pressures due to input cost inflation

Effective cost control measures undertaken by the management

During the year, the company had some carried forward balance of loss which was set off against the proposed tax. Hence, during the year the Net pro it was same as EBIDTA.

9. Material developments in Human Resources / Industrial Relations front, including number of people employed:

The Company recognizes that its human resources are a key driver of its operational efficiency, particularly in the agro-commodity business which involves procurement, warehousing, logistics, and trading activities. During the financial year under review, there were no material disruptions in industrial relations, and the Company maintained cordial and harmonious relations across all levels of the organization. There were no instances of strikes, lockouts, or significant labour disputes reported during the year. The Company continued to focus on:

Strengthening its workforce capabilities through targeted training and skill development initiatives, particularly in areas such as supply chain management, quality control, and compliance;

Enhancing employee productivity and operational efficiency through performance-driven evaluation systems;

Ensuring adherence to applicable labour laws, safety standards, and employee welfare measures, especially at storage and handling locations.

Number of Employees:

As on 31 st March 2026, the Company had 3 employees on its rolls.

10. 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 therefore, including: Standalone:

Financial Ratios	2025-26	2024-25	Reasons
Current Ratio	0.56	NA	No significant change / Base data restated
Debt-Equity Ratio	0.00	NA	No significant change
Debt Service Coverage Ratio	NA	NA	No significant change
Return on Equity Ratio	NA	NA	No significant change
Inventory Turnover Ratio	0.00	NA	No significant change
Trade Payable Turnover Ratio	1.99	0	No significant change
Trade Receivable Turnover Ratio	1.00	0	No significant change
Net Capital Turnover Ratio	NA	NA	No significant change

Consolidated:

Financial Ratios	2025-26	2024-25	Reasons
Current Ratio	0.56	NA	No significant change / Base data restated
Debt-Equity Ratio	0.00	NA	No significant change
Debt Service Coverage Ratio	NA	NA	No significant change
Return on
Equity Ratio	NA	NA	No significant change
Inventory Turnover Ratio	0.00	NA	No significant change
Trade Payable Turnover Ratio	1.99	0	No significant change
Trade Receivable Turnover Ratio	1.00	0	No significant change
Net Capital Turnover Ratio	NA	NA	No significant change

	By Order of the Board of Directors
	For Alka India Limited
Date: April 07, 2026	Sd/-
Place: Ahmedabad	Karnik Shasankan Pillai
	Managing Director

Registered Office:

Gala No. D- 3/4/5, Hatkesh Udyog Nagar-1,

Off. Mira Bhayandar Road, Gcc Road,

Mira Near Hatkesh Substation

Thane - 401 107, Mira Road, Maharashtra, India

Corporate Office:

A 1115 Titanium Business Park,

Near Makarba Underpass, Jivraj Park,

Ahmedabad, Ahmadabad City, Gujarat, India, 380051

CIN : L46300MH1993PLC168521

E-mail Id : info@alkaindia.in