Fruition Venture Ltd Management Discussions

Economic Overview:

The global economy continued to show measured resilience in FY 2024-25, despite facing persistent headwinds. According to the IMFs July 2025 World Economic Outlook update, global real GDP growth is projected at 3.0% for 2025, slightly above the earlier April forecast of 2.8%, supported by easing trade tensions, improved financial conditions, and fiscal support in key economies. Risks to the global outlook remain broadly balanced. On the downside, geopolitical conflicts, lingering tariff related trade disruptions, and elevated interest rates may weigh on recovery. However, factors such as improved investor sentiment, faster-than-expected policy easing, and productivity gains from advanced technologies continue to provide support. In contrast, the World Banks latest estimates remain more conservative, projecting global growth at just 2.3% for 2025 reflecting ongoing concerns about stagnating productivity and limited fiscal space in emerging markets.

India continues to maintain its position as one of the worlds fastest-growing major economies. Following a strong GDP growth of 8.2% in FY 2023-24, the Indian economy is estimated to have grown at a steady pace of 6.5% in FY 2024-25, despite global economic uncertainties. Forecasts by the International Monetary Fund (IMF) and the Reserve Bank of India (RBI) remain optimistic, projecting growth in the range of 6.5% to 7.0% for the year. Inflationary pressures eased during the year, with the average Consumer Price Index (CPI) falling to approximately 4.8%, compared to 5.4% in FY 2023-24. These indicators reflect Indias resilient economic fundamentals, supported by strong domestic demand, fiscal discipline, and a favorable policy environment.

The outlook for FY 2024-25 remains optimistic. The Reserve Bank of India (RBI) anticipates that the manufacturing sector will continue its current momentum, supported by strong capacity utilisation and improving investment activity. The services sector is expected to grow steadily, surpassing pre-pandemic trends, driven by robust demand in contact intensive industries and digital services. Additionally, the agricultural sector is likely to benefit from a forecast of a normal south-west monsoon, which would support rural consumption and overall economic stability. Collectively, these sectoral trends point to a balanced and resilient growth trajectory for the Indian economy in the current fiscal year.

Private consumption is expected to strengthen in FY 2024-25, supported by a revival in rural activity and an uptick in discretionary spending by urban households, as indicated by the RBIs consumer confidence surveys. Improving income levels and a positive labour market outlook are likely to further bolster domestic demand. On the investment side, both credit growth and private capital expenditure are projected to rise, driven by strong business and consumer sentiment, along with healthier corporate and banking sector balance sheets. The ongoing recovery in private investment points to a renewed upturn in the capex cycle. Meanwhile, core inflation is expected to continue its downward trajectory, signalling a broad-based easing of price pressures across the economy. Company Overview:

The Company continued its core business of commodity trading during FY 2024-25, while strengthening its presence in the manufacturing and marketing of consumer goods. Building on last years diversification, the Company expanded its plastic product manufacturing operations with the installation of additional injection moulding machines, marking steady progress in its new line of business.

BUSINESS REVIEW AND PERFORMANCE

The current market conditions are improving in a balanced manner and there are hopes of steady recovery form the past effects of pandemic situation. The Company will continue to pursue the long lasting and stable growth based on its philosophy of generating profits through creation of the ”Greatest Value” for its Customers and Stakeholders.

Though the company had incurred loss during the year but it has diversified its business activities and ventured in to manufacturing activities and expecting the business to stabilise and grow in the coming years.

SWOT ANALYSIS

Strengths

AWK~. High-Quality Product Standards.

. Established Brand Presence.

. Robust Dealer and Service Network.

. Visionary Leadership of Top Level Management.

. Skilled and qualified employees.

NO. Emerging and Challenging new markets.

. Adaptability to Technological Advancements.

Weakness

1. Rising Production and Operational Costs.

2. Increasing demand.

3. Limited Online or Digital Presence

Opportunities

1. Rising Global Market Demand.

2. Advancements in Technology.

3. Digitalisation of Business Operations.

4. Expansion into Untapped Markets.

5. Industry Knowledge and Training Initiatives

Threats

1. Rising cost of Raw Material.

2. Intensifying Competition from Domestic and International Players.

3. Global Economic and Geopolitical Uncertainties.

4. Technological Disruption.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has established proper and effective internal control system to provide reasonable assurance for safeguarding the Companys assets, promoting operational efficiency and reliability and ensuing compliance with various legal and regulatory provisions. The internal control systems are designed to ensure that the financial and other records re reliable for preparing financial statements and for maintaining accountability of assets and other records in a systematized manner.

The company has created an effective internal control system, by establishing the following:

1. Policies and procedures including, organizational structure, job descriptions, authorization matrix;

2. Segregation of duties and responsibilities;

3. Authorization and approval process;

4. Performance monitoring and control procedures;

5. Safeguarding assets, completeness and accuracy;