Anik Industries Ltd Management Discussions

Your Directors hereby presents the Management Discussion and Analysis Report (MDAR) for the year ended on 31 st March, 2025:

GLOBAL ECONOMIC REVIEW:

The global economy entered 2025 facing heightened uncertainty after relative a period of stabilization in 2024. According to the April 2025 IMF World Economic Outlook, global GDP growth is projected at 2.8% for 2025 and 3% in 2026, down from 3.3 percent for both years in the January 2025. The downgrades are broad- based across countries and reflect in large part the direct effects of the new trade measures and their indirect effects through trade linkage spillovers, heightened uncertainty, and deteriorating sentiment. Global currency markets have experienced increased volatility in 2025, with the U.S. dollar strengthening due to risk aversion and elevated U.S. yields. This has increased depreciation pressure on several emerging market currencies, including the Indian rupee.

Global headline inflation is expected to decline at a pace that is slightly slower than what was expected in January, reaching 4.3 percent in 2025 and 3.6 percent in 2026, with notable upward revisions for advanced economies and slight downward revisions for emerging market and developing economies in 2025. (World Economic Outlook, IMF, April, 2025.)

INDIAN ECONOMIC REVIEW:

Despite facing spillover effects from global headwinds, India continues to exhibit remarkable economic resilience. The country is growing at nearly twice the pace of the worldwide economy, reflecting the strength of its domestic demand, policy support, and structural reforms. According to the April 2025 IMF World Economic Outlook, Indias real GDP is projected to grow at 6.2% in FY25 and 6.3% in FY26, significantly outpacing the global growth forecasts of 2.4% and 3.0% for the same periods, respectively. This robust momentum underscores Indias growing role as a key driver of global growth, even amid heightened global economic uncertainty. (WorldEconomic Outlook, IMF, April, 2025. )

Indias headline inflation, measured by the Consumer Price Index (CPI), has moderated in FY25 (April-December) compared to FY24. This decline is primarily due to a significant decrease in core inflation, which dropped by 0.9 percentage points between FY24 and FY25 (April-December). The sharp decline in core inflation was largely driven by core services inflation, which was lower than core goods inflation. Assuming a normal monsoon and no further external or policy shocks, the RBI expects headline inflation to be 4.2 per cent in FY26. IMF has projected an inflation rate of 4.4 per cent in FY25 and 4.1 per cent in FY26 for India. (Economic Survey - 2024-25 of Ministry of Finance, January 2025)

Indias financial sector has performed well amidst unfavorable geopolitical conditions. On the monetary front, system liquidity, represented by the net position under the Liquidity Adjustment Facility, remained in surplus during October-November 2024. (Economic Survey - 2024-25 of Ministry of Finance, January 2025)

A. Industry Structure and Developments:

The Indian economy has continued to display resilience and robust growth despite ongoing global uncertainties. In FY 2024-25, India remained one of the fastest- growing major economies in the world, supported by strong domestic demand, government-led infrastructure initiatives, and sound fiscal and monetary policies. According to the IMFs April 2025 Outlook, Indias GDP growth for FY25 is projected at 6.2%, significantly outpacing global growth estimates of 2.8%. This steady performance reflects the underlying strength of the Indian economy and its growing importance in the global economic landscape.

Your Company is primarily engaged in the business of trading of Agri- Commodities, Edible oil & Vanaspati, Property Development, Wind power Generation & others. In terms of wind power installed capacity, India is fourth in Global ranking in the world. India has rapidly grown in the Wind Power Energy Sector. The unexploited resource has the potential to sustain the growth of wind energy in future. The management continues to adapt its strategy to navigate external challenges while identifying new growth opportunities in its core and emerging business verticals.

B. Opportunities & Threats:

(I) Trading:

During the year under review the trading business of the company is substantially increased and performed exceptionally well, as trading segment of the company contributed more than 90% of the total revenue. Your company has been allotted quota from Government for importing duty free Vanaspati and Bakery Shortening from Sri-Lanka that helped company to increase its trading turnover and profitability from this segment.

Despite ongoing global volatility in the edible oil market and financial uncertainties, the Company managed the risks efficiently. With these efforts, the Company expects the trading business to continue performing strongly in the coming years

(II) Real Estate:

The performance of real estate segment of your company was also strong. The Real estate project of the Company "One Rajarhat" comprising premium service apartments and luxury residences?€”has been successfully completed and with the excellent response from the public almost all the units have been sold. Presently, the Company is supporting the development of a similar premium real estate project named "One Victoria", of its material subsidiary Revera Milk & Foods Private Limited. This project is expected to bring good returns in the future and in addition to that your company is eying for new projects in Kolkata to continue its performance in real estate sector.

C. Segment-wise or Product-wise Performance:

The company has disclosed business segment as the primary segment. Based on the criteria mentioned in Ind AS 108 "Operating Segment" the company has identified its reportable segments. The various segments identified by the company comprised as under:

Real Estate	- Construction and Development of Housing Project
Trading	- Agri Commodities, Edible Oils Etc.

The segment wise performance in detail is given in Note 37 to the audited accounts of the Company as available in this annual report.

Further note that the Company has discontinued Segment wise performance of Wind Power Business as due to completion of life -span of both the Wind Mills, the company has sold Wind Turbine Unit (WTU) of Jaisalmer, Rajasthan as scrap at good price and similar efforts are continue to sale WTU of Village Nagda, Dewas (MP)

D. Outlook:

The Companys outlook for FYQ2025 26 remains positive, grounded in strong macroeconomic fundamentals. Indias FYQ2024 25 GDP is estimated at 6.4%, with FYD2025 26 expected around 6.3-6.4% Inflation remained within RBIs target, averaging ~4.9% in FYD2024 25 (April-Dec), with forecasts of 4.6% (Q1 FY26) and 4.0% (Q2 FY26) and in real estate, while luxury segments may slow, collections improved and overall activity held steady, signaling resilience.

Against this, your company expects, continued momentum in the trading segment, supported by import quotas and favorable consumption trends,

Stable returns from its real estate projects, backed by urban demand and project execution etc. We remain cautiously optimistic, with strategies aligned to capitalize on structural growth and manage sector-specific challenges.

E. Risk and Concerns:

The Company has in place a robust risk management framework that identifies and evaluates business risks and opportunities. The Company recognizes that these risks need to be handled effectively and mitigated to protect the interest of the shareholders and stakeholders, to achieve business objectives and create sustainable value and growth. The Companys risk management processes focus on ensuring that these risks are identified promptly and a mitigation action plan is identified and monitored periodically to ensure that the risks are being addressed accordingly. The Companys risk management framework operates with the following objectives:

1. Proactively identify and highlight risks to the right stakeholders.

2. Facilitate discussions around risk prioritization and mitigation.

3. Provide a framework to assess risk capacity and appetite; develop systems to warn when the appetite is getting breached.

F. Internal Control Systems and their Adequacy:

The Company believes that Internal Control is one of the key pillars of governance, which provides freedom to the management within a framework of appropriate checks and balances. It has a robust internal control framework, which has been instituted considering the nature, size and risks in the business. The framework comprises, inter alia, a well defined organization structure, roles and responsibilities, documented policies and procedures, financial delegation of authority, etc. Information Technology (IT) policies and processes also ensure that they mitigate the current business risks. These policies are complimented by a management information and monitoring system, which ensures compliance with internal processes, as well as with applicable laws and regulations.

Pursuant to Section 134 of the Companies Act, 2013, the Board, through the Operating Management has laid down Internal Financial Controls and procedures to be followed by the Company. The adequacy of the same has been reported by the statutory auditors of your Company in their report.

G. Discussion on Financial Performance with respect to Operational Performance:

The performance of the Company for the financial year 2024-25 is summarized below

	Standalone		Consolidated
Balance Sheet	As on 31.03.2025	As on 31.03.2024	As on 31.03.2025	As on 31.03.2024
a. Property, Plant and Equipment	1204.99	1349.70	1154.17	5876.81
b. Capital Work-in-progress	0.00	0.00	0.00	1106.42
c. Financial Assets	10456.39	10425.17	126.05	94.82
d. Other Non-current assets	1353.12	3520.12	6234.73	8952.32
e. Current assets	15966.89	14221.92	26710.57	16959.02
f. Total Equity	28513.37	28111.37	40538.99	40216.08
g. Non- current liabilities	9.66	419.04	26.86	419.04
h. Current liabilities	2325.50	2784.00	4365.79	2990.75

(Rs. in Lakhs)

Particulars	Standalone		Consolidated
	2024-25	2023-24	2024-25	2023-24
Revenue from operations	11637.25	10060.00	11637.25	10060.00
Other Income	222.31	538.00	208.41	545.35
Total Revenue	11859.56	10598.00	11845.66	10605.35
Profit/ (Loss) before Depreciation. Finance Cost, Exceptional items & Tax Expenses	556.42	1231.29	475.33	1233.00
Less: Depreciation & Amortization exp.	51.85	57.69	52.64	57.69
Less: Finance Cost	54.52	89.12	56.99	89.40
Profit/ (Loss) before Exceptional Items and Tax Expenses	450.05	1084.48	365.70	1085.91
Less: Exceptional items	0.00	650.00	0.00	650.00
Profit (Loss) before tax expenses	450.05	434.48	365.70	435.91
Less: Current tax	122.33	110.39	122.33	110.61
Less: Deferred tax	(66.10)	305.80	(66.10)	305.80
Less: Excess Tax provision written back for earlier	0.00	(10.95)	0.00	(10.95)
Less: Income Tax of Earlier Year	5.51	0.00	5.51	0.00
Profit (Loss) for the year	388.31	29.24	303.96	30.45
Add: Share of Profit/(Loss) of associate	-	-	-	-

During the year your Companys total revenue stood at Rs. 11859.56 Lakhs as compared to previous year figures Rs. 10598.00 Lakhs and consequently your company succeeded in achieving Profit before tax of Rs. 450.05 Lakhs as compared to previous figures of Rs. 434.48 Lakhs and Net Profit of Rs. 388.31 Lakhs as compared to previous year figure of Rs. 29.24 Lakhs.

On a consolidated basis, the total revenue stood at Rs. 11845.66 Lakhs as compared to previous year figures Rs. 10605.35 Lakhs and consequently net profit for the year stood at Rs. 303.96 Lakhs as compared to previous year net profit Rs. 30.45 Lakhs.

H. Information Technology/Cyber Security:

Cyber security controls are embedded in your Companys Information Technology (IT) environment to ensure protection from risks of unauthorized access, unauthorized changes or unavailability of the systems. Key cyber security controls include secure configuration of enterprise assets and software, malware defenses, periodic vulnerability and penetration testing, controlled access to critical business applications, appropriate segregation of duties and ongoing cyber security awareness programs for users.

I. Material Development in Human Resources/ Industrial Relations Front, including No. of people employed:

Employees play a significant role in determining the workplace culture. The culture is formed through their actions, attitudes, and interests at work with every businesses success we recognize, reward and value our employees. We recognize that employees are critical to the success of any business and strive hard to provide competitive remuneration, attractive benefits, and happy work conditions. They are an asset that provides the company with longterm value. The numbers of people employed during the year were 7.

J. Changes (change of 25% or more) in Significant Key Financial Ratios and Return on Net Worth:

As per the latest amendment as introduced by SEBI via SEBI (Listing Obligations & Disclosure Requirement) (Amendment) Regulations, 2018 on May 09, 2018 effective from April 01, 2019, new sub-clause (i) has been inserted in Clause I in Part B of Schedule V of SEBI (Listing Obligations & Disclosure Requirement), Regulations, 2015 according to which the listed entity shall provide the 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 the detailed explanations thereof, including:

S. No. Particulars	FY 2024-25	FY 2023-24	% Changes	Remarks
1 Debtors Turnover	1.48	1.24	18.98%	NA
2 Inventory Turnover	14.30	7.28	96.36%	Inventory turnover ratio increased due to decrease in average inventory as compared to previous year.
3 Interest Coverage Ratio	9.25	5.87	57.58%	Interest Coverage Ratio is increased due to decrease in long term interest cost as compared to previous year.
4 Current Ratio	6.87	5.11	34.41%	Current ratio increase during the year due to decrease in current Liabilities.
5 Debt Equity Ratio	0.01	0.03	-48.42%	Debt Equity ratio decreased due to Partial amount of LIC Term loans paid during the year.
6 Operation Profit Margin (%)	4.34	5.20	-16.54%	NA
7 Net Profit Margin (%)	3.34	0.29	1048.14%	Net Profit Margin is increased due to increase in Profit After Tax (PAT) of the Company as compared to previous year PAT.
8 Return on Capital employed	1.75	4.07	-57.08%	Return on Capital Employed in decreased due to decrease in PBIT during the year.

K. Cautionary Statement:

Statements in this Management Discussion and Analysis Report describing 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.

DISCLOSURE OF ACCOUNTING TREATMENT IN PREPARATION OF FINANCIAL STATEMENTS:

The Company has followed the guidelines of accounting standards as mandated by the Central Government in preparation of its financial statements.