Asian Tea & Exports Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT

A significant share of the Indian population are vegetarians and pulses represent the main source of proteins in their diets. Besides proteins, pulses are also a good source of carbohydrates, vitamins, minerals, fatty acids, dietary fibres, etc. Apart from being the staple food for people, pulses have found applications in the food processing industry. Pulses flour is considered to be healthier as compared to wheat flour and has been replacing the latter in making snacks and confectionary items to produce healthier food options for health-conscious consumers. Similarly, pulses are also being increasingly used in the ready to eat and snack food industry. The India pulses market size reached 36 million Tons in 2024. Looking forward, it is expected that the market would reach 60 million Tons by 2033, exhibiting a growth rate (CAGR) of 5.38% during 2025-2033.

INDIAN ECONOMIC OVERVIEW

India remains a bright spot in the global economy, with GDP growth estimated at 6.5% in F.Y. 2025 (Economic Survey), driven by strong domestic consumption, infrastructure investments, and policy reforms. The Country continues to benefit from a growing middle class, rising disposable incomes, and increasing digital penetration, all of which are fueling demand for FMCG products. Despite global uncertainties, Indias inflation has moderated and improving rural and urban consumption trends have kept the economy on a stable growth trajectory.

The packaged foods and beverages segment continues to remain resilient despite inflation and delivered robust growth in the FMCG industry as the underlying drivers remain robust with attractive demographic profile and rising consumer affluence, increasing penetration and low branded share. Consumption is also boosted by omnichannel retail and the rise of quick commerce. The sector continues to see significant input cost inflation with the increase in commodity costs impacting overall demand trends. However, rural demand has bounced back in the year and has outpaced urban consumption growth in recent quarters.

OPERATIONAL AND FINANCIAL PERFORMANCE

The company has achieved a standalone business turnover of Rs. 509.176 million in current financial year compared to Rs. 343.076 million in 2023-24. The company has earned a standalone profit of Rs. 1.789 million in current financial year compared to Rs. 2.862 million in 2023-24. Further, it achieved a consolidated business turnover of Rs. 535.503 million in current financial year compared to Rs. 418.841 million and earned a consolidated profit of 4.997 million in current financial year compared to Rs. 0.956 million in 2023-24.

OPPORTUNITIES AND THREATS

The Company is consolidating business opportunities in tea rice, wheat and pulses. Changing government regulations on trade of pulses would determine future growth of the business. Global tea production is rising every year and so is the consumption. Being agricultural in nature, production is directly linked to the weather conditions prevailing during the year and tends to affect the production in adverse conditions. Extreme weather conditions also give rise to pest infestation which is again detrimental for crop. We follow prudent field practices and 100% irrigation facilities to overcome such natural vagaries. Rising cost in form of higher wages and other inputs not supported by increase in price realization, continues to pose major threat on survivability of organized sector.

SEGMENT WISE PERFORMANCE

The Company is engaged in the trading of tea, rice, wheat and pulses. The segment wise performance has been specified in details in the Financial Statement for the year under review.

BUSINESS OUTLOOK

As a result of increasing urbanisation and busy lifestyles, healthy ready-to-eat snack foods are becoming increasingly popular with consumers in the country. Moreover, Indias large consumer base also represents a major driver for the pulses market. From a population of 1.3 Billion in 2018, the Indian population is expected to exceed 1.5 Billion by 2030. This is expected to create a huge demand for food during the period, driving the consumption of pulses in the country.

RISK AND CONCERNS

• Consistent quality is an important factor for achieving good price.

• Fluctuation in foreign exchange rate is also a cause of concern.

• Increase in employees cost with accrual liability for retirement benefits is a cause of concern. INTERNAL CONTROL SYSTEM

The Company has an adequate system of internal control commensurate with the size and nature of its business. The suggestions, recommendations and implementation of the Internal Audit are placed before the Management and the Audit Committee.

The Company has appointed M/s. Arya Agarwal & Associates., Chartered Accountants for conducting internal audit of various activities in order to monitor the performance of the Company on a continuous basis. The management regularly reviews Internal Audit Reports to monitor the effectiveness of internal controls in place. The Audit Committee of the Board continuously reviews the significant observations, if any, of the Internal and Statutory Auditors on financial and accounting controls as well as statutory compliance matters.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Directors believe that human resource is the most important asset and also a source of competitive advantage. Efforts are being made to design and implement an effective staff policy in the Company in order to foster a culture of harmony, learning, sense of belongingness and care. The relations of the Company remained cordial and harmonious throughout the year.

SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Comparative analysis of Important Ratios with variance is tabulated below:

S. No	Descriptions	Ratios (current Year)	Ratios (Previous Year)	Variance (%)	Reason of Significant variance
1	Debtors Turnover	2.83	2.26	25.22	Due to better realization of Trade receivable, the Ratio has improved
2	Inventory Turnover	8.55	10.76	(20.54)	Due to lower inventories, the ratio has improved
3	Net Capital Turnover Ratio	1.68	1.30	29.23	The ratio has improved due to increase in net sales during the year
4	Current Ratio	3.02	2.49	21.29	Normal Variance
5	Debt Equity Ratio	0.26	0.41	(36.59)	The ratio has decreased due to increase in Shareholders Equity
6	Return on Investment	0.35	0.65	46.59	Due to profit in the Current year return of Capital Employed has improved
7	Net Profit Ratio	0.39	0.91	(57.61)	The company has earned profit mainly due to repayment of loans resulting in reduction in financial cost and reduction in other expenses
8	Return to Capital employed	3.56	4.07	(12.37)	No Variance

DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

CAUTIONARY STATEMENT

This report includes forward looking statements and assessments that involve risks and uncertainties. Actual results might differ materially from those expressed or implied.

	For and on Behalf of the Board
Registered Office:
4/1, Middleton Street,
Sikkim Commerce House 5th
Floor, Kolkata-700071 Date:
1st September, 2025	Sd/-	Sd/-
	Hariram Garg	Sunil Garg
	(DIN: 00216053)	(DIN: 00216155)
	Managing Director	Director