Dhyaani Tradeventtures Ltd Management Discussions

GLOBAL ECONOMY OVERVIEW

As per the latest reports of IMF the global economy is expanding at a modest, uneven pace, with projected growth estimated around 3.1% to 3.3%. While easing inflation and technology investments provide support, the outlook remains threatened by high public debt, trade frictions, and geopolitical conflicts. While the US and China remain the top two economies, India currently ranks 6th in nominal terms. It trails slightly behind Japan and the UK but remains the worlds fastest-growing major economy.

Key Highlights

United States: $32.38 trillion GDP, remains the worlds largest economy. China: $20.85 trillion GDP, continues as the second-largest economy. India: $4.15 trillion GDP, currently ranks 6th among the largest economies. Fastest Growth: India leads major economies with a growth rate of 6.48% in 2026. The USs April 2025 reciprocal tariffs initially sparked global growth and inflation fears, but the short-term impact has proven minor. Global economic activity remained stable because of frontloaded exports, trade agreements lowering effective rates, and delayed tariff implementations. Consequently, the IMFs revised projections show higher-than-expected 2025 growth for emerging markets, while advanced economies performed better than feared due to strong US economic momentum.

Key Takeaways

Tariff Shock: US imposed long-promised reciprocal tariffs in April 2025. Transient Impact: Initial fears of global stagnation and high inflation did not last. Buffer Factors: Trade deals, early consumer spending, and delayed price hikes eased the blow. Resilient Growth: Emerging and advanced markets outperformed early 2025 IMF risk projections.

TRENDS IN INDIAN ECONOMY

Even as the global economy navigates uncertainty, India continues to chart a strong growth path, as reflected in the First Advance Estimates (FAE) for FY26 released by the Ministry of Statistics and Programme Implementation (MoSPI). These estimates place the real GDP growth rate at 7.4 per cent and the GVA growth rate at 7.3 per cent, surpassing earlier projections by various agencies and our own estimates in the Economic Survey of 2024-25, and reaffirming Indias status as the fastest-growing major economy for the fourth consecutive year. On the demand side, domestic demand continues to anchor growth, supported by a strengthening momentum in capital formation. On the supply side, manufacturing activity has gained traction, and services continue to drive overall expansion, led by steady performance in trade, transport, and financial and professional services.

INDIAN ECONOMY OVERIVEW WITH FOCUS ON AGRICULTURE & ALLIED SECTORS

Agriculture and allied activities contribute nearly one-fifth of Indias national income at current prices, but account for 46.1 percent of the countrys workforce. Given the relatively large share of employment in agriculture and allied activities, the sector remains central to Indias overall growth trajectory. Strengthening agricultural performance is therefore important for inclusive growth and ensuring food security. Indian agriculture has demonstrated resilience, registering steady growth with major growth coming from the allied sector. While food grain production has increased in recent years, higher-value allied sectors, such as livestock, fisheries, and horticulture, are assuming an increasingly important role in enhancing income opportunities and strengthening rural livelihoods. At the same time, certain challenges persist, including fragmented landholdings, limited access to irrigation and quality inputs, low levels of mechanisation and investment, and stagnating yields across several crops and regions, which continue to limit productivity gains and farmer incomes. The government is undertaking several interventions to improve productivity in agriculture and allied sectors through a mix of policy measures, including programmes for technology, input and income support, strengthening infrastructure and improvements in market linkages. Policy measures such as Krishonnati Yojana(KY) which is an umbrella scheme of 08 schemes-Mission for Integrated Development of Horticulture (MIDH), National Food Security and Nutrition Mission, (NFSNM), Sub-Mission on Agriculture Extension (SAME), Integrated Scheme on Agricultural, Marketing, Digital Agriculture Mission (DAM), National Mission on Edible Oil Oilseed (NMEO-OS), National Mission on Edible Oil Oil palm (NMEO-OP) and Mission Organic Value, Chain Development for North East Region (MOVCDNER) which aim to promote the holistic, science-based development of agriculture and allied sectors to enhance production, productivity, and value realisation of farm produce. Measures to improve diversification, and sustainability have also positively impacted productivity. In addition, the decision in 2018 19 to fix the MSP at 1.5 times the all-India weighted average cost of production is an important step that provides greater price certainty and assures farmers of a specified return.

AGRICULTURAL SECTOR

Over the last five years, the average annual growth rate in the agriculture and allied sector has been around 4.4 per cent4 at constant prices. In Q2 of FY 2025-26, the agriculture sector registered a growth of 3.5 per cent.5 The decadal growth of 4.45 per cent (FY16-FY25), the highest in comparison to previous decades, has primarily resulted from the strong performance in livestock (7.1 per cent) and fishing and aquaculture (8.8 per cent), followed by the crop sector at 3.5 per cent.

Indias food grains production has witnessed a steady increase, despite certain challenges. Indias food grain production is estimated to have reached 3,577.3 lakh metric tonnes (LMT) in Agriculture Year (AY) 2024 25, an increase of 254.3 LMT over the previous year. This growth has been driven by higher output of rice, wheat, maize and coarse cereals (Shree Anna). The increase in production is attributed to the favourable monsoon across regions and the governments supportive policies. While food grain production has continued to expand, the horticulture sector, which accounts for approximately 33 per cent of agricultural GVA, has emerged as a bright spot in the countrys agricultural growth trajectory. In 2024-25, horticulture production reached 362.08 MT, surpassing the estimated food grain production of 329.68 MT.9 This underscores a gradual diversification of agricultural output towards high-value crops. The Union Budget 2026-27 steers Indian agriculture toward technology-driven modernization, regional crop diversification, and high-value cultivation. The Ministry of Agriculture and Farmers Welfare received a total allocation of 1,40,529 crore (a 5.4% increase from the previous fiscal year), supplemented by major digital and subsidiary initiatives.

1. Financial & Subsidy Allocations

Total Outlay: 1.40 lakh crore explicitly for the Ministry of Agriculture.

PM-KISAN: Maintained direct income support with an allocation of 63,500 crore (approx. 45% of the ministrys budget). Fertilizer Subsidy: Allocated 1,70,944 crore to lower input costs and ensure affordable fertilizers for marginal farmers. Credit Subvention: Earmarked 22,600 crore under the Modified Interest Subvention Scheme (MISS) to supply subsidized credit via Kisan Credit Cards.

2. High-Value Agriculture & Regional Focus

The budget explicitly shifts strategy away from traditional staples toward high-value crops (HVA) to boost farm income: Coastal Regions: Launched a new Coconut Promotion Scheme to replace old orchards, alongside self-reliance programs for cocoa, cashew, and scientific sandalwood farming. North-eastern States: Dedicated funds to scale up agarwood cultivation and agroforestry. Hilly Areas: Focused programs to expand the high-density cultivation of premium nuts (walnuts, almonds, pine nuts).

3. Digital Public Infrastructure & Tech Integration

Bharat-VISTAAR: Launched an AI-powered multilingual platform integrating Agri Stack data with the Indian Council of Agricultural Research (ICAR) models to provide customized, real-time weather and crop advisories. Farmer IDs: Targeted the completion of unique digital footprints (IDs) for 11 crore farmers by the end of 2026-27.

4. Allied Sectors & Rural Value Chains

Fisheries: Proposed the integrated development of 500 reservoirs and Amrit Sarovars to boost aquaculture. Livestock & Dairy: Expanded credit-linked modernizing subsidies for poultry, dairy, and livestock enterprise setups. Natural Fibres: Linked agricultural output to rural industries by funding the National Fiber Scheme and textile parks to directly support cotton, jute, silk, and wool farmers.

STRENGTHS OF INDIAN AGRICULTURE SECTOR

1) Horticulture production reached 362.08 million tonnes, overtaking traditional food grain production (357.73 MMT) to become a massive financial stabilizer.

2) Livestock Gross Value Added (GVA) expanded by 195% while fish production surged by 140%, making non-crop activities steady 5 6% annual growth anchors.

3) The sector maintains the worlds largest arable land footprint (180 million hectares), supporting record-breaking domestic grain yields.

4) Sector growth is holding steady at 3.1% to 3.6% for FY26, consistently driving rural consumption and cushioning the national growth cycle.

5) Agricultural export earnings have scaled up to $51.1 billion, showing an 8.2% compound annual growth rate.

6) Direct cash flow is securely anchored via 4.27 lakh crore disbursed via PM-KISAN alongside 1.90 lakh crore settled in crop insurance

THREATS, RISKS & CONCERNS

1) Climate and Environmental Risks: Heavy reliance on the Southwest Monsoon leaves farmers vulnerable to delayed rains, flash floods, and prolonged droughts.

2) Soil Degradation: Intensive, chemical-heavy farming practices have depleted micronutrients and organic matter, reducing long-term soil fertility and increasing crop susceptibility to disease.

3) Water Scarcity: Over-extraction of groundwater, exacerbated by inefficient flood-irrigation methods, causes severe water crises in several key agricultural states.

2. Economic and Market Risks: Price volatility of agricultural commodities, dependence on middlemen, leading to reduced profit margins for farmers. Limited access to formal credit and financial services. High input costs (seeds, fertilizers, machinery) with fluctuating returns.

3. Infrastructure and Supply Chain Challenges: A stark lack of adequate cold storage, modern warehousing, and rural transport infrastructure forces distress sales immediately after harvest. Geopolitical tensions (such as conflicts in West Asia) and fluctuating crude oil prices directly drive up the costs of essential agricultural inputs, particularly fertilizers.

4. Policy and Regulatory Risks: Inconsistent agricultural policies across states. Delays in subsidy disbursement and insurance claims. Lack of awareness and access to government schemes. Trade restrictions and export bans affecting market access.

5. Social and Demographic Concerns: Aging farming population and youth migration to urban areas. Low levels of education and training among farmers. Gender disparities in land ownership and access to resources. Farmer distress and mental health issues, sometimes leading to suicides.

6. Technological and Innovation Gaps: Slow adoption of precision agriculture, AI, and data analytics. Limited R&D in certain crop categories and allied sectors. Digital divide in rural areas affecting access to agri-tech solutions.

INTERNAL CONTROL SYSTEMS

The Company does not have any formal internal audit system. The internal policies of the Company ensure efficient use and protection of assets and resources, compliance with policies and reliability of the financial and operational reports. The management is taking steps to introduce the internal audit system commensurate with the size and nature of the business of the company. The Audit Committee of the Board of Directors deals with the adequacy of internal controls and budgeting functions.

FINANCIAL PERFOMANCE

During the year, your Company recorded a turnover of 2721.73 Lakhs. While the Company reported a loss for the financial year, it continued to make operational improvements aimed at long-term value creation. The Board remains committed to driving revenue growth and enhancing operational efficiency. With focused efforts on market expansion, and cost optimization, the Company is well-positioned to capitalize on future opportunities and strengthen its financial performance in the coming years.

HUMAN RESOURCES

The Company continued to have cordial and harmonious relations with its employees during the year under review.

FOREIGN CURRENCY RISKS

Volatility in global economies have become the new common in recent times and since company has less exposure to foreign revenue, risk is low in our case. However, the company has a defined policy for managing its foreign exchange exposure minimizing the currency risk which results in stable earnings.

FINANCIAL RATIOS

Particulars	FY 2025-26	FY 2024-25
1 Current Ratio	1.72	2.58
2 Debt-Equity Ratio	0.04	0.16
3 Return of Equity Ratio	0.00	0.01
4 Net Capital Turnover Ratio	0.99	0.39
5 Net Profit Ratio	0.00	0.02
6 Return of Capital Employed	0.00	0.02

DISCLAIMER

The statements in the “Management Discussion and Analysis Report” describe the Companys objectives, projections, expectations, estimates or forecasts which may be “forward-looking statements” within the meaning of the applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied therein due to risks and uncertainties. Important factors that could influence the Companys operations, inter alia, include global and domestic demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in government regulations, tax laws, economic, political developments within the country and other factors such as litigations and industrial relations.