Eureka Industries Ltd Management Discussions

GLOBAL ECONOMY OVERVIEW:

According to the World Economic Situation and Prospects as of mid-2025, the world economy is now projected to grow by 2.7 per cent in 2025 (+0.3 percentage points from the January forecast) and 2.8 per cent in 2026 (+0.1 percentage points from the January forecast). On balance, the near-term economic outlook is only cautiously optimistic as economic vulnerabilities remain, amid persistently high interest rates, continuing geopolitical tensions, and increasing climate risks.

Unmet revenue expectations have ushered in a new wave of pragmatism where maintaining a healthy profit margin has become pivotal for corporations due to the uncertain macro outlook. In extreme cases, organizations resorted to cost-cutting measures, such as reducing headcount and cutting discretionary spending. The global real estate sectors outlook for the financial year 2024-25 reflects a mix of opportunities and challenges influenced by economic, demographic, and technological trends. Continued urbanization, especially in emerging markets, drives demand for residential and commercial p roperties. Post-pandemic economic recovery b o osts investor confidence and increases real estate transactions.

INDIAN ECONOMY OVERVIEW:

India has bounced back strongly since the pandemic and it is now one of the worlds fastest-growing economies. Its GDP growth for the July to-September quarter shattered market expectations, growing 7.6% year over year. The biggest boost to growth came from a rebound in the industrial sector auto sales, industrial production, and corporate profits pointed to resilient performance. Double-digit growth in the industry suggests that businesses ramped up production to meet the oncoming demand during festivals. In addition, credit growth and flights taken pointed to buoyancy in the services sector. Indeed, the financial, professional, and real estate services sectors did quite well in the first half of the fiscal year as well.

In the year ahead, improving fundamentals should buttress the underlying strength of GDP growth. We expect the Indian economy to grow between 6.9% and 7.2% through fiscal 2024 to 2025 (April 2024 to March 2025) in our baseline scenario, followed by growth ranging between 6.4% and 6.7% the next fiscal year. Higher government spending on building infrastructure and improving logistics will help reduce the cost of doing business and encourage private investment. The fiscal deficit of the first seven months was just 45% of the budget estimate, which gives the government ample room to focus on infrastructure spending and to support jobs and income.

Bringing more manufacturing opportunities to India, increasing digital adoption across all sectors of the economy, and promoting competitiveness through exports will be important for a sustainable growth trajectory in the long term. India will have to leverage its proximity to a sizable domestic market to increase the scale and scope of economies where it has a competitive advantage. To secure inclusive and widespread growth, it will be necessary to capitalize on the growing environment for trade and investment opportunities by stepping up technological transformation, strengthening governance, and working toward attaining decarbonization targets for sustainability

ABOUT OF THE COMPANY:

Incorporated on 03^rd November 1992, Presently Eureka Industries Limited is dealing in agricultural commodities. The Companies trading portfolio includes of wheat, rice, paddy, maize and pulses. Further Company gradually plans to cultivate agriculture produce of all description like fruits, vegetable, seeds, cereals, pulses, grains, rice, lentils, cash crops, corn, hay and straw using methods which are sustainable and organic in nature

OPPORTUNITIES AND THREATS:

The improvement in the global economic situation coupled with protection given by Indian Government provides opportunity for growth and it is set to grow in Expected line Outlook. The company expects the pressure on Quality Customer to continue due to competition.

SEGMENT WISE PERFORMANCE:

During the year ended on 31st March, 2025, the Company was operating under the business of trading and dealing in agriculture commodities and under single segment. The financial details are given in notes to accounts forming part of the Annual Report.

OUTLOOK:

The Company continues to explore the possibilities of expansion and will make the necessary investments when attractive opportunities arise.

CHALLENGES:

While the management of your Company is confident of creating and exploiting the opportunities, it finds the following challenges:

(i) Economic Uncertainty (ii) Interest Rates and Financing (iii) Regulatory Changes (iv) Supply and Demand Imbalance

RISKS & CONCERNS:

The Company is exposed to specific risks that are particular to its businesses and the environment within which it operates, including inter alia, market risk, competition risk, human resource risk, execution risk and significant downturn in the economic cycle. The Management of the Company is striving hard to mitigate the by taking appropriate steps in a proper manner and make the Company profitable reducing the burden of loans.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Adequate internal control systems commensurate with the nature of the Companys business, size and complexity of its operations are in place and have been operating satisfactorily.

Internal control systems comprising of policies and procedures are designed to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedure, applicable laws and regulations. Internal control systems are designed to ensure that all assets and resources are acquired economically, used efficiently and adequately protected.

FINANCIAL PERFORMANCE & REVIEW:

The Company having a Profit of Rs. 21427.25 Thousand during current financial year as against loss of Rs. (45559.57) Thousand during the previous year. The financial performance of the Company for the year 2024-25 is described in detail in the Directors Report under the head Financial Performance of the Company. The management is striving hard to improve its performance in upcoming financial year.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS FRONT:

The Company has continued to give special attention to Human Resources/Industrial Relations development. Industrial relations remained cordial throughout the year and there was no incidence of strike, lock-out etc. Functional training and employee engagement was given adequate weight age during the year to enhance employee productivity and morale.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS:

The Company has identified the following ratios as key financial ratios:

Ratio	2024-25	2023-24	Variance %	Reasons
Current Ratio (in tunes)	0.99	0.39	152.12%	* Due to matenal change in
Debt equity ratio (in times)	-0.96	-0.35	172.31%	performance of the company in comparison to previous year. All ratio becomes incomparable for the year.
Debt service coverage ratio (in tunes)	15.15	-77.44	-119.56%
Return on equity- ratio (in %)	-83.49%	335.06%	-420.99%
Trade receivables turnover ratio (m times)	199.66	45.39	339.90%
Trade payables turnover ratio (m times)	16.95	8.29	104.49%
Net capital turnover ratio (m times	-70.28	-15.85	343.27%
Net profit ratio (in%)	2.51%	-23.67%	26.18%%
Return on capital employed (in %)	-83.49%	335.05%	-420.98%
Return on Net- worth	- 143.33%	125.24%	-268.57%
Inventor} Turnover	0	15.14%	100%
Operating Profit Margin (%)	123.67%	97.49%	-21.17%
Net Profit Margin (% J	-23.67%	2.51%	110.60%

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG W ITH A DETAILED EXPLANATION THEREOF:

Sr. No. Particulars	2024-25	2023-24	Changes	Reason
1. Remm on Net Worth	143.33%	125.24%	-268.57%	Due to matenal change in performance of ?e company in comparison to previous year. All ratio becomes incomparable for the year.

CAUTIONERY STATEMENT

Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be “forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.