Aristo Bio-Tech & Lifescience Ltd Management Discussions

ANNEXURE-C

The discussion hereunder covers Companys performance and its business outlook for the future. This outlook is based on assessment of the current business environment and Government policies. The change in future economic and other developments are likely to cause variation in this outlook.

The Managements views on the Companys Performance and outlook are discussed below:

GLOBAL ECONOMY:

The global macroeconomic landscape faces significant headwinds in the year ahead, characterized by decelerating growth, persistent geopolitical tensions, and a cautious recalibration of monetary policy. A key driver of this slowdown is the intensification of trade disputes?most notably, the implementation of U.S. tariffs, including a 10% baseline levy and elevated duties on Chinese imports. These measures have disrupted global trade flows, provoked retaliatory actions, and heightened policy uncertainty, collectively dampening investor confidence, curbing capital expenditures, and sustaining inflationary pressures.

The International Monetary Fund (IMF) projects global GDP growth at 2.8% for 2025, slightly outpacing the World Banks estimate of 2.3%. While global inflation is expected to decline to 4.2%, the disinflationary trajectory will likely be uneven, with advanced economies on track to meet central bank targets ahead of their emerging market counterparts.

Trade performance is expected to weaken significantly, with global trade volumes forecast to grow by just 1.7% in 2025?a notable drop from 3.8% in the prior year. This decline reflects the compounded effects of escalating trade restrictions and mounting policy ambiguity. As a result, stakeholders across the public and private sectors are closely monitoring developments in energy markets, global supply chains, and key international trade corridors.

INDIAN ECONOMY:

Indias GDP growth is projected at 6.5% for FY25, underpinned by strong domestic consumption, increased government expenditure, and a more accommodative monetary policy stance. To bolster investment and economic activity, the Reserve Bank of India (RBI) has implemented a 100-basis point reduction in the repo rate, with additional easing anticipated in the latter half of 2025.

Both the International Monetary Fund (IMF) and Moodys forecast a 6.5% growth rate for FY26, citing resilient domestic demand and continued fiscal support as key drivers. Indias economy does not require revival?it requires strategic resilience management and structural acceleration. Should current policy momentum be maintained and global geopolitical tensions subside, India is well-positioned to exceed 7% growth in FY26, supported by contained inflation and strengthened investor confidence.

INDUSTRY STRUCTURE AND DEVELOPMENTS- INDIAN AGROCHEMICAL SECTOR:

The global agrochemical industry has witnessed significant growth over the past decade and is projected to reach a valuation of over USD 390 billion by 2025. This growth is primarily driven by the increasing global population, rising demand for food security, and the continued need for higher agricultural productivity. Asia-Pacific remains the largest market, with India and China leading consumption. Technological advancements, such as the use of artificial intelligence (AI) in pesticide development and RNA-based pesticide innovations, are transforming how agrochemicals are discovered and applied, enhancing both efficiency and environmental safety.

However, the industry faces ongoing challenges, including pesticide resistance especially among weeds and rising scrutiny over the environmental and health impacts of chemical usage.

Recognizing the pivotal role of the agrochemical industry, the Indian government has identified it as one of the top 12 sectors to attain global leadership, with a projected growth rate of 8-10% through 2025, as reported by the Federation of Indian Chambers of Commerce and Industry (FICCI).

Approximately 30-35% of Indias annual crop yield is lost due to pests, weeds, and diseases, as reported by the Indian Council of Agricultural Research (ICAR). Agrochemicals, including pesticides and fungicides, play a crucial role in mitigating these losses by protecting crops from various threats.

However, the industry faces challenges such as stiff competition from cheap imports, particularly from China, which can impact profit margins for Indian producers. Moreover, global economic slowdowns and unpredictable weather patterns pose additional challenges by causing fluctuations in demand for agrochemicals. Despite these challenges, the Indian agrochemicals sector remains resilient, driven by innovation, strategic investments, and a favorable regulatory environment.

INDUSTRY DRIVERS:

The key factors of driving the agrochemical industry are:

• Rising Global Population and Food Demand: The world population is projected to exceed 9.7 billion by 2050, significantly increasing food consumption. This surge in demand pressures the agricultural sector to boost productivity, particularly in regions already facing food insecurity. Agrochemicals, such as fertilizers, herbicides, fungicides, and insecticides, are crucial in achieving high crop yields and preventing crop loss due to pests and diseases.

• Declining Arable Land per Capital: Rapid urbanization, industrial expansion, and soil degradation are shrinking the amount of arable land. Farmers are forced to intensify production on limited land, which requires efficient use of agrochemicals. The need to maintain or increase yield per unit of land is a primary growth factor for the agrochemical industry.

• Government initiatives to promote agriculture: Many governments subsidize fertilizers and pesticides to support agricultural productivity. These regulations drive innovation in eco-friendly, low-toxicity formulations. Additionally, initiatives are being undertaken to improve soil health, strengthen credit facilities, crop insurance and infrastructure. A notable initiative, the "Digital Agriculture Mission," has been launched to modernize the agricultural sector and leverage the benefits of digital technologies. These collective endeavors are aimed at driving growth and ensuring the sustainability of agriculture sector.

• Increasing Consumer Demand for Quality and Safety: Rising consumer awareness of food safety and environmental sustainability affects market dynamics. Organic and residue-free farming practices are gaining traction, boosting the demand for biological agrochemicals. Agrochemical companies are developing solutions that meet both productivity goals and sustainability standards.

• Private Sector Investment and Strategic Partnerships: The agrochemical industry is seeing increased investments, M&A activity, and partnerships with aggrotech startups. Strategic alliances with biotechnology firms and AI-driven aggrotech platforms enhance product pipelines and market reach. Private equity and venture capital are investing in sustainable and precision farming innovations, accelerating industry evolution.

• Climate Change and Environmental Stress: Unpredictable weather patterns, droughts, floods, and extreme temperatures are becoming more frequent due to climate change. These conditions create favorable environments for pests and plant diseases, increasing the need for crop protection chemicals. Agrochemicals are used to mitigate biotic and abiotic stress, ensuring consistent crop performance under adverse conditions.

• Increasing investment in agricultural research and development (R&D): The Indian agriculture industry is currently witnessing a steady rise in research and development endeavors. Substantial investments in R&D initiatives are driving the deployment of enhanced technologies, improved supply chain systems, and the utilization of organic materials for the production of top-notch agricultural goods. These remarkable advancements are bolstering productivity, elevating product quality, and fostering overall growth within the industry.

COMPANY OVERVIEW AND OUTLOOK:

Our Company was originally incorporated on March 17, 2005 as "Aristo Bio-Tech and Lifescience Private Limited" under the provisions of the Companies Act, 1956 with the Registrar of Companies, Maharashtra, Mumbai. Subsequently our Company was converted into Public Limited Company and name of company was changed from "Aristo Bio-Tech and Lifescience Private Limited" to "Aristo Bio-Tech and Lifescience Limited" vide fresh certificate of incorporation dated May 20, 2020 issued by the Registrar of Companies, Mumbai. Further our Company has changed the registered office from State of Maharashtra to Gujarat vide Certificate of Registration of Regional Director order for Change of State dated November 18, 2021 issued by Registrar of Companies, Ahmedabad.

Our Company is an agrochemical company engaged in the manufacturing, formulation, supplying, packaging and job work services in various Pesticides such as Insecticides, Herbicides, Fungicides, Plant Growth Regulators and a wide variety of other Agrochemicals for India as well as for Export. Agrochemical industries are very vast field and deals with production and distribution of pesticides and fertilizers to increase the crop yields. Agrochemicals (Crop protection products/pesticides) are designed to protect crops from insects, diseases and weeds. Currently our company has 257 products registered with CIB&RC for manufacturing and sales.

Our Company supplies its products across 20 states i.e. Assam, Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Jammu & Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttarakhand, Uttar Pradesh, West Bengal and 15 Countries i.e. Armenia, Australia, Bangladesh, Belgium, Cambodia, Germany, Italy, Kenya, Moldova, New Zealand, Poland, South Africa, UAE, Ukraine and Vietnam.

Our Company is manufacturing agrochemicals such as Insecticides, Herbicides, Fungicides and Plant Growth Regulators which are directly sold to our customers and is also engaged in job work as per customer requirements.

Our company has adequate production and quality control system. All formulations are strictly tested with the latest available guidelines and testing methods by our in-house Quality Control Lab personnel. High Performance Liquid Chromatography (HPLC), Ultraviolet Spectrograph (UV) and Gas Chromatography (GC) are used to ensure top quality Raw materials and formulation testing and release. Strict testing for all Packing materials like Tin, HDPE bottles, Coextruded bottles, Fluorinated HDPE bottles, Pet bottles, Labels, Mono cartons, Corrugated boxes, Laminated pouches is also done as per the Food and Agriculture Organization of the United Nations (FAO) and Bureau of Indian Standards (BIS) guidelines and testing methods. All Finished goods are re-tested and counter samples are stored separately in sample storage rooms.

OPPORTUNITIES AND THREATS:

Opportunities:

o Feeding the growing India and global population. With rising population, the government is focused on the food security of the nation. With Indias population set to exceed 1.5 billion by 2030, there is an urgent focus on developing sustainable solutions for long-term food production.

o Protecting crops from pests, diseases, and environmental stressors remains critical to ensuring food security and supporting economic growth. By adopting more advanced crop protection measures and innovative farming practices, governments can mitigate losses and maintain a stable food supply.

o Precision farming technologies are expected to redefine modern agriculture by 2025. With advancements in AI, IoT, drones, and data analytics, precision farming is becoming more accessible and scalable.

o Agrochemicals are increasingly seen as vital tools for mitigating the impacts of climate change on agriculture. With unpredictable weather patterns, pests, and disease outbreaks becoming more frequent, agrochemicals are crucial in maintaining crop health and resilience.

Threats:

o The agrochemical industry is grappling with growing regulatory scrutiny, particularly regarding the approval process for new molecules. The slow pace of regulatory approvals for new agrochemical products is a significant barrier to innovation.

o With tighter environmental and safety regulations, any lapses or non-compliance can lead to severe penalties, product recalls, or even license suspensions.

o The erratic nature of rainfall, a result of climate change, is disrupting traditional agricultural cycles. This volatility affects the timing of sowing and harvesting, and in turn, impacts the demand for agrochemicals.

o The growing resistance of pests to conventional pesticides is a major challenge that the agrochemical industry is facing. This resistance reduces the effectiveness of existing pest control solutions, posing a serious threat to crop protection efforts

o Agrochemical inventories have been at elevated levels after the kharif season, because of the erratic rainfalls and weak demand. This has led to higher sales returns and a decline in profitability for agrochemical companies.

o The pace of change in both the agrochemical market and adjacent industries is accelerating. Companies must stay agile to meet evolving customer needs, regulatory requirements, and market dynamics.

Risk and Concerns:

A well-defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process is in place. The objective of the mechanism is to minimize the impact of risks identified and taking advance actions to mitigate it. The mechanism works on the principles of probability of occurrence and impact, if triggered. A detailed exercise is being carried out to identify, evaluate, monitor and manage both business and non-business risks.

Segment-Wise or Product-Wise Performance:

The Companys operation predominantly comprises of only one segment. In view of the same, separate segmental information is not required to be disclosed as per the requirement of Indian Accounting Standard 108 Operating Segment. Your company deals in various products such as Fungicides, herbicides, Weedicides, Insecticides and many more.

Discussion on Financial Performance with respect to Operational Performance:

PARTICULARS	F.Y. 202425	F.Y. 2023-24
Revenue From Operations	31,809.27	24,514.79
Other Income	45.36	18.04
Total Income	31,854.63	24,532.83
Less: Total Expenses Before Depreciation, Finance Cost and Tax	30,881.92	23,665.59
Profit Before Depreciation, Finance Cost and Tax	972.71	867.24
Less: Depreciation	260.24	157.07
Less: Finance Cost	165.77	169.41
Profit Before Tax	546.69	540.76
Less: Short Provision of Taxes in Earlier Year	-	0.31
Less: Current Tax	144.07	138.69
Less: Deferred Tax Liability (Liability)	(3.69)	12.19
Profit After Tax	406.31	389.57
Earning Per Share (Basic & Diluted)	5.97	5.72

Internal Control Systems and Their Adequacy:

The Company has established a comprehensive and adequate system of internal controls that is commensurate with the size and nature of its operations. These controls are designed to ensure the safeguarding of assets against unauthorized use or disposal, the accuracy and reliability of financial reporting, and compliance with applicable regulatory requirements and company policies. The Internal Audit Reports are regularly reviewed by the Audit Committee of the Board.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS:

The Company believes that human resource is the most important assets of the organization. It is not shown in the corporate balance sheet, but influences appreciably the growth, progress, profits and the shareholders values. During the year your company continued its efforts aimed at improving the HR policies and processes to enhance its performance. The vision and mission of the company is to create culture and value system and behavioral skills to insure achievement of its short- and long-term objectives. As on March 31, 2025, the Company had total 66 full time employees. The industrial relations have remained harmonious throughout the year.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS. ALONG WITH DETAILED EXPLANATIONS THEREFOR:

RATIO	AS AT 31ST MARCH, 2025	AS AT 31ST MARCH, 2024	% OF CHANGE IN RATIO	EXPLANATIONS
Inventory Turnover	7.27	6.91	5%	Increase In Inventory
Interest Coverage Ratio	5.46	5.19	5%	Not Applicable
Current Ratio	6.74	7.46	-10%	Increase In Inventory and Trade Receivables
Debt Equity Ratio	0.59	0.62	-6%	Due To Decrease in Debt
Net Profit Margin/ Operating Profit Margin	0.0106	0.0148	-29%	Not Applicable
Return On Net Worth/ Return On Equity Ratio	0.11	0.12	-6%	Due to Increase in Turnover as well as Profit for the year
Debt Service Turnover Ration	0.42	0.38	9%	Due to Increase in Turnover as well as Profit for the year
Trade Receivable Turnover Ratio	5.60	4.80	16%	Companys Collection of accounts Receivable is Efficient
Trade Payable Turnover Ratio	8.71	10.36	-16%	Company Is Making Payments to Its Creditors on Time
Net Capital Turnover Ratio	5.23	4.30	22%	Company Is Being Very Efficient in Using a Companys Short-Term Assets and Liabilities for Supporting Sales
Return On Capital Employed	0.164	0.156	-6%	Not Applicable
Return On Investment	0.109	0.116	-6%	Not Applicable

Cautionary Note:

Statements in the Management Discussion and Analysis report may be forward looking statements within the meaning of the applicable laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include among other, climatic conditions, economic conditions affecting demand, supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental.

For and on behalf of Board of Directors	Registered office:
Aristo Bio-Tech and Lifescience Limited	E-24/25/26, G.I.D.C., Ta. Savli,
CIN:L01100GJ2005PLC127397	Manjusar, Vadodara-391775,Gujarat

 

	Narendra Singh Barhat	Ketankumar Harkantbhai Joshi
Place: Vadodara	Chairman and Managing Director	Who le T i me Director & CFO
Date: August 14, 2025	DIN:00310306	DIN: 02089127