Gopal Snacks Ltd Management Discussions

Economic Overview

Global Economy

The global economy displayed stability in CY("Calender Year") 2024, successfully overcoming early concerns about a potential downturn caused by supply chain disruptions, geopolitical uncertainties and inflationary pressures. Posting a growth rate of 3.3% for CY 2024 (1), the global economy managed to sustain its momentum despite several headwinds. Economic activity took divergent paths across the globe. Advanced economies faced challenges, including sluggish manufacturing output, dampened consumer confidence, and ongoing inflationary pressures. Soaring energy prices disrupted global trade, and the delayed impact of earlier interest rate hikes further reduced demand, limiting growth. The US economy showcased resilience with high employment rates and impressive corporate earnings. In the US, there has recently been a change in Presidency, which may result in considerable policy changes, impacting global trade and bilateral relations among nations. Europe, despite facing political and economic challenges, navigated uncertainties and is positioned for a robust recovery.

Emerging markets and developing economies, on the other hand, confronted a unique set of challenges. These included reduced external demand and capital outflows sparked by rising interest rates in developed nations, as well as uncertainities around local policies

Geopolitical tensions and trade disruptions hit export-dependent countries the hardest. Still, some economies showed significant resilience, Global Economic Overview supported by strong domestic consumption and targeted policy measures, helping to cushion the impact of these headwinds.

Meanwhile, China is actively addressing overcapacity and financial strains in the real estate sector, laying the groundwork for sustainable and balanced economic growth. Emerging markets and developing economies outperformed with a robust 4.3% growth rate, significantly outpacing the modest 1.8% growth seen in advanced economies in CY 2024. (1)

Outlook

Looking ahead, the global economic outlook for CY 2025 and CY 2026 remains cautiously optimistic, despite ongoing geopolitical uncertainties, including potential changes to US import tariffs. Expectations of a shift towards more accommodative monetary policies, along with a continued decline in inflation, are likely to support global growth and offset some of the prevailing risks.

Global GDP is projected to stabilise at 2.8% in CY 2025 and improve to 3.0% in CY 2026. (1) Growth in emerging markets and developing economies is expected to remain steady, with a projected increase of 3.7% in CY 2025. (1) Advanced economies are forecast to see a modest recovery, with growth rising to 1.4% (1).

A key contributor to this outlook is the sustained strength of consumer spending. As inflation continues to ease-declining to 4.3% in CY 2025 and further to 3.6% in CY 2026 (1)—household purchasing power is expected to improve, supporting demand across sectors. Advanced economies are likely to achieve their inflation targets earlier, contributing to greater macroeconomic stability. While geopolitical uncertainties persist, sustained government investments, prudent fiscal management and strong consumer activity are expected to create a balanced and inclusive global economic landscape.

Indian Economy

Indias economy continues its steady growth trajectory, demonstrating resilience despite global challenges. According to The International Monetary Fund (IMF) India has grown by a growth rate of 6.5% for CY 2024 and projected to grow 6.2% in CY 2025 and 6.3% in CY 2026, significantly outperforming the global growth forecasts of 2.8% in CY 2025 and 3.0% in CY 2026. (1) Amid global economic turbulence and geopolitical tensions in Europe and the Middle East, Indias economy has displayed remarkable stability, driven by strategic government initiatives and consistent export growth. Retail inflation in India has followed a steady downward path over the past three financial years, falling from 6.7 percent in 2022–23 to 5.4 percent in 2023–24, and further to 4.6 percent in 2024–25, contributing to a more stable economic environment and enhancing consumer sentiment, which is expected to drive higher consumer spending in key retail sectors. (7)

The manufacturing sector has shown strong performance, and urban consumption remains steady, further reinforcing the momentum of economic growth. Despite ongoing global trade uncertainties, Indias robust domestic foundations, supportive policies, and a thriving private sector are expected to sustain this positive growth outlook.

From a fiscal perspective, the government has committed to fiscal consolidation, targeting a fiscal deficit of 4.4% of GDP for FY 2025-26. The FY 2025-26 Union Budget allocates INR 11.21 lakh crore (approximately 3.1% of GDP) for capital expenditure, highlighting a strong emphasis on infrastructure-driven growth. This significant investment is expected to strengthen structural capacities, generate employment, and create multiplier effects across the economy. (8) Indias trade outlook is poised for gradual recovery. Exports are projected to rise, buoyed by global demand for key products like engineering goods, pharmaceuticals, and electronics. Additionally, falling oil prices and a stronger domestic manufacturing sector, supported by the PLI schemes, are expected to reduce import dependency. This combination should lead to a reduction in the trade deficit and a more stable external environment. The governments new trade policies and agreements are also likely to boost exports, positioning India more prominently on the global trade map.

In summary, Indias economy is poised to continue its strong performance in FY 2025-26, underpinned by growing domestic demand, increased public investment, and strategic policy measures. Despite external challenges, Indias focus on digital innovation, a vibrant start-up ecosystem, and a growing manufacturing sector will enhance its long-term resilience. With prudent fiscal management, rising productivity, and growth fueled by innovation, India is set to maintain its position as the worlds fastest-growing major economy, paving the way for inclusive and sustainable development.

Outlook

India to remain relatively insulated against the global shocks in the near future and continue to grow strongly. The structural long-term growth story for India remains intact driven by favourable demographics and stable governance. According to the IMFs World Economic Outlook Report, India is expected to maintain its position as the fastest-growing major economy, Growth will be driven by continued expansion in the services sector and a boost in manufacturing, supported by government efforts to enhance infrastructure and streamline tax policies.

The Reserve Bank of India has projected real GDP growth at 6.5%, supported by steady expansion in services and a recovery in industrial activity. (1) Government initiatives such as the Production Linked Incentive (PLI) schemes and increased infrastructure investment continue to strengthen Indias position in global supply chains. As global manufacturers pursue the China+1 strategy, India is increasingly emerging as a competitive manufacturing base.

Higher capital expenditure allocations, stable inflation, and improving business sentiment are expected to support private investment and employment generation. Combined with a young workforce, expanding digital infrastructure, and a large consumer market, these drivers position India to deliver resilient and broad-based growth through FY2025–26.

Source:

• RBI- https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2120509

• Ministry of Statistics and Programme Implementation –

Provisional Estimates of National Income 2024–25 https://mospi.gov.in

• Union Budget 2024–25, Ministry of Finance – Budget at a Glancehttps: //www.indiabudget.gov.in/doc/Budget_at_Glance/bag1.pdf • https://www.pib.gov.in/PressReleasePage.aspx?PRID=2098447&utm_source

• IMF World Economic Outlook, April 2025 – https://www.imf.org/en/Publications/WEO

• https://www.pib.gov.in/PressReleasePage.aspx?PRID=2122148 • https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2098353

Industry Overview

The fast-moving consumer goods (FMCG) sector should see revenue rebound 100 to 200 basis points (bps) to 6-8% in fiscal 2026, compared with a more modest 5-6% expected in fiscal 2025 as volume rises 4-6% on a gradual recovery in urban, and steady rural, demand. (9) Several structural drivers remain supportive of sector growth. These include the acquisition of direct-to-consumer brands, rising disposable incomes, evolving consumer lifestyles, and deeper digital penetration. The introduction of lower-priced packs and products amid increasing competition has helped preserve affordability and sustain consumer engagement. In addition, the rapid expansion of e-commerce platforms and greater adoption of omnichannel distribution strategies have expanded market reach and accessibility.

A narrowing gap in consumption between urban and rural regions indicates a broader and more inclusive consumer base. Policy support through investments in infrastructure, agriculture, MSMEs, and social welfare, combined with rising rural incomes, is expected to drive demand at the grassroots level. As consumer preferences evolve and distribution networks modernise, the FMCG sector is well positioned to benefit from long-term structural demand drivers, with rural markets offering considerable growth potential.

Source:

• CRISIL FMCG Sector Outlook, March 2025 - https://www.crisilratings.com/en/home/newsroom/press-releases/2025/03/fmcg-revenue-to-see-a-mild-100-200-bps-recovery-to-6-8percent-next-fiscal.html

Packaged Food Market in India

Indias packaged food industry continues to expand, driven by changing consumer lifestyles, rapid urbanisation, and increasing demand for convenience-based products. According to IMARC Group, the Indian packaged food market reached US$ 113.9 billion in 2023 and is projected to reach US$ 210.81 billion by 2032, reflecting a compound annual growth rate (CAGR) of 7.08% during 2024–2032. This growth is supported by shifting consumer preferences towards convenient meal options and the widespread adoption of food preservation techniques. (10) The sector remains fragmented, with both organised and unorganised players coexisting. However, the growing penetration of modern trade and e-commerce platforms is contributing to an increasing market share for organised brands. Packaged foods represent a significant segment within Indias broader food processing and packaging industries. Government initiatives focused on enhancing cold-chain infrastructure, strengthening logistics, and improving food safety standards have further supported the sectors development.

Policy support through programmes such as the Pradhan Mantri Kisan Sampada Yojana, the PM Formalisation of Micro Food Processing Enterprises (PMFME), and the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) has facilitated capacity expansion, technology adoption, and improved market access. These measures position Indias packaged food sector to benefit from long-term structural demand drivers, with rural markets and organised distribution channels offering considerable growth potential.

Source:

• IMARC Group – "India Packaged Food Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2024–2032" – https://www.imarcgroup.com/india-packaged-food-market

• Ministry of Food Processing Industries, Government of India – https://www.mofpi.gov.in

• Next IAS / PIB (updated 2024) – https://www.nextias.com/ca/current-affairs/20-09-2024/food-processing-sector-in-india

Growth trend in packaged food market in India

Exhibit 16: Packaged Food Market, India, INR Billion (FY 2018-FY 2027F)

Overview of Savoury Snack Market

The savoury snacks segment in India forms part of the broader food processing industry, which has been expanding due to shifts in consumer behaviour and economic factors. Growth in the sector has been supported by urbanisation, rising incomes, and lifestyle changes that have increased demand for packaged and convenience-focused products. According to the India Brand Equity Foundation (IBEF), Indias food processing industry benefits from a youthful demographic, changing dietary habits, and evolving consumption patterns.

Continued improvements in retail infrastructure and digital platforms have contributed to enhanced market penetration for processed food products, including savoury snacks. Government policies and sector-specific initiatives aimed at modernising the food industry provide further opportunities for investment and growth in this segment.

Indian Savoury Snack Market

The Indian savoury snacks market represents a significant segment within the food processing industry, shaped by diverse consumer preferences and regional tastes. In recent years, the segment has seen increasing interest in both Western-style snacks and traditional ethnic varieties. Manufacturers are actively pursuing product innovation, exploring new flavours and formats to meet changing consumer expectations.

Modern retail and e-commerce channels are playing a larger role in the distribution and marketing of savoury snacks, allowing brands to reach broader consumer bases across urban and rural markets. Companies in this segment are focusing on brand positioning and supply chain efficiency to enhance market presence. The savoury snacks market is anticipated to remain a key contributor to the food sectors future growth, supported by evolving dietary trends and continued investment in manufacturing and distribution capabilities.

Exhibit 28: Growth trajectory of Organized Indian Savoury Snacks market, INR Billion

Split of the industry by Region, FY 2023E

Exhibit 37: India Savoury Snacks and Papad Market - Split by Region, FY 2023E

Estimation of Trends of Growth- Organized Versus Unorganized Indian Savoury Snacks Market

Exhibit 29: Market Share Growth Trend for Organized Versus Unorganized Sector of Indian Savoury Snacks

Organised Namkeen market

The organised Namkeen market in India continues to evolve as producers cater to diverse regional tastes and consumer expectations for variety in savoury snacks. Popular products in this segment include traditional items such as farsan, mixtures, and bhujia as well as newer variations incorporating innovative flavours and ingredients to appeal to broader audiences.

Brands are also responding to consumer demand for options perceived as lighter and healthier, including products with reduced oil content or enhanced nutritional profiles. Companies operating in this segment are placing emphasis on differentiating their offerings through unique recipes, packaging innovations, and targeted marketing campaigns. The organised Namkeen segment is positioned for further development as companies explore opportunities to expand their portfolios and strengthen brand loyalty.

Organised Gathiya Market

Gathiya, a traditional savoury snack, has maintained strong demand across Gujarat and is increasingly finding acceptance in states including Madhya Pradesh, Maharashtra, Rajasthan, and Uttar Pradesh. In the organised segment, producers have focused on expanding their regional presence by introducing branded products in hygienic packaging formats that appeal to consumers seeking authenticity and consistent quality. Companies in this segment are leveraging distinctive recipes and regional flavour profiles to differentiate their products and strengthen market recognition.

Organised Western snacks

The western snacks segment continues to hold a significant position within the Indian savoury snacks market. This category includes products such as chips, snack pellets, and extruded snacks, which appeal to a wide consumer base due to varied flavours, convenience, and strong brand presence. Companies operating in the organised western snacks market are focusing on new product development, flavour innovation, and expanding distribution networks to capture emerging opportunities across different regions. The segment is expected to sustain growth as consumer demand evolves and preferences shift towards packaged and branded snack options.

Impact of E-commerce and Quick Commerce

The Indian snacking industry has benefited significantly from the rapid expansion of e-commerce platforms, which have broadened market access and improved product availability across urban and semi urban regions. According to the India Brand Equity Foundation, Indias e-commerce market is projected to grow from 123 billion US dollars in fiscal year 2024 to 292.3 billion US dollars in fiscal year 2028, reflecting a compound annual growth rate of 18.7 percent. The quick commerce segment is also expanding, with the market expected to reach approximately 86 thousand crore rupees by fiscal year 2029. Companies in the snacking sector are increasingly adopting online sales channels, digital marketing strategies, and direct to consumer approaches to enhance brand engagement and respond to evolving consumer expectations.growth in this segment.

Source: IBEF – "Indian E-commerce Industry Overview" -https://www.ibef.org/industry/ecommerce

Key Government Schemes Driving the Indian Savoury Market Value Chain

The Indian government continues to implement various initiatives to strengthen the food processing sector and enhance the availability of raw materials, processing capabilities, and market access. These programmes support increased production, promote modernisation, and enable sustainable growth across the industry.expectations.growth in this segment.

• Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): This scheme has a total budget of Rs 10,900 crore and incentivises the production of ready to cook, ready to eat, and other specialised food products. As of March 2024, incentives exceeding Rs 1,100 crore have been disbursed, encouraging investment and employment opportunities, including participation from small and medium enterprise.

• Food Processing Fund: Established by NABARD with a corpus of Rs 2,000 crore, this fund supports the modernisation and expansion of food processing units within designated food parks. As of March 2023, NABARD had sanctioned Rs 1,180 crore and disbursed Rs 830 crore to finance infrastructure development.

• Creation and Expansion of Food Processing and Preservation Capacities (CEFPPC): This initiative provides financial assistance for setting up mega food parks and agro processing clusters, aimed at enhancing preservation capacity and reducing post-harvest losses. Recent updates have focused on supporting decentralised infrastructure closer to farming areas.

• Infrastructure for Agro Processing Clusters: his programme is designed to establish modern processing facilities near production regions, improving the efficiency of the supply chain and supporting local economies.

• Agricultural Export Promotion Scheme (APEDA): Designed to boost exports of agricultural and processed food products, this scheme offers support for infrastructure, quality improvement, and market access. Policy support in recent years has contributed to sustained growth in Indias Agri food exports.

These government initiatives collectively play a significant role in improving efficiency, enhancing market opportunities, and positioning India as a growing player in the global food processing industry. Their ongoing implementation and expansion are crucial for the sectors long term growth and sustainability.

Source:

PIB Press Release:https://www.pib.gov.in/PressReleasePage.aspx?PRID=2116175 NABARD- Food Processing Fund: https://www.nabard.org/content1. aspx?catid=8&id=570&mid=8

Company Overview

Gopal Snacks Limited, headquartered in Rajkot is a leading snack manufacturer in India. It ranks among the countrys fastest-growing, fully integrated (FMCG) companies. Founded by Mr. Bipin Hadvani in 1999 as a partnership firm named Gopal Gruh Udyog, it transitioned into a corporate entity in 2009 and now operates as a limited company. The Company produces a diverse array of ready-to-eat packaged snacks, including ethnic namkeen, gathiya, wafers and snack pellets. Its product lineup extends to other FMCG items such as extruder products, noodles, spices and flour, all marketed under its brand.

Key Strengths

The Company has established several core strengths that significantly enhance its market position and operational efficiency:

Diverse product portfolio

Gopal Snacks offers a wide array of packaged snack products. This diverse product range helps the Company mitigate the risk of seasonal sales fluctuations and market disruptions. By offering a broad selection of products, the Company maintains stable revenue streams across different seasons and market conditions.

Forward and backward integration

The Company operates its own besan plant, securing a reliable supply of its essential ingredient. Controlling the supply chain from this foundational level allows the Company to manage costs effectively and maintain its high-quality standards.

In-house machine manufacturing and customisation

Gopal Snacks benefits from its capability to manufacture and customise machinery internally. This reduces reliance on external suppliers and facilitates rapid adjustments in the production process to meet market demands.

Own transportation fleet

The Company optimises its product distribution by managing its own fleet of transport vehicles. This ensures timely and efficient delivery of products across various regions.

Cold storage facilities

Owning cold storage facilities enables the Company to preserve the quality of perishable raw materials, minimizing spoilage and ensuring a steady supply for consistent snack production.

Strong distribution network

The Company ensures that its products are widely available with its strong distribution network. This enhances consumer access and supports market penetration efforts. This network is crucial for maintaining a strong presence in the urban and rural markets. Market adaptation and innovation

The Companys ongoing efforts to innovate its products allows it to adapt swiftly to changing consumer tastes and market trends. Regularly updating the product lines and the introduction of new flavours keep the Company relevant and competitive in a dynamic market environment.

Manufacturing Capabilities

Manufacturing Facility	Gathiya	Namkeen	Snack Pellets	Wafers	Extruded Snacks	Papad	Besan	Spices	Raw Pellets	Seasoning
Rajkot, Gujarat (Primary Facility)	-	-	-	-	-	-	-	-	-	-
Gondal, Gujarat (Primary Facility)**	-	-	-	-	-	-	-	-	-	-
Modasa, Gujarat (Primary Facility)	-	-	-	-	-	-	-	-	-	-
Nagpur, Maharashtra (Primary Facility)	-	-	-	-	-	-	-	-	-	-
Rajkot, Gujarat (Ancillary Facility I)	-	-	-	-	-	-	-	-	-	-
Rajkot, Gujarat (Ancillary Facility II)	-	-	-	-	-	-	-	-	-	-
Modasa, Gujarat (Ancillary Facility III)	-	-	-	-	-	-	-	-	-	-

Business Review

Product Portfolio

Category Type	Number of Products(1)
Ethnic Snacks
Namkeen	34
Gathiya	8
Western Snacks
Snack Pellets	13
Wafers	10
Extruded Snacks	6
Other Products
Spices	6
Papad	5
Besan	1
Others(2)	17
Total	102

 

Performance Highlights

Indias Largest Gathiya Manufacturer with a 31% market share of the organised segment.

Second-largest ethnic namkeen manufacturer in Gujarat and among the top packaged namkeen brands across India.

Diverse Ethnic portfolio with over 39 products, driving over 55% of Company revenue.

Product-wise Revenue Contribution

	FY 2024		FY 2025
Category	Amount (INR Cr)	Percentage of Revenue from Operations	Amount (INR Cr)	Percentage of Revenue from Operations
Ethnic Snacks
Gathiya	387.1	27.60%	399.1	27.19%
Namkeen	385.5	27.49%	371.2	25.28%
Total (A)	772.6	55.09%	770.3	52.47%
Western Snacks
Snack Pellets	290.5	20.17%	259.1	20.71%
Wafers	117.6	8.39%	166.0	8.39%
Extruded Snacks	15.8	1.13%	19.3	1.13%
Total (B)	432.9	30.22%	444.3	30.22%
Other Products
Papad	54.5	3.89%	49.4	3.37%
Besan	72.8	5.19%	85.8	5.85%
Spices	10.1	0.72%	8.5	0.58%
Others (1)	12.5	0.89%	25.1	1.71%
Total (C)	149.9	10.69%	168.9	11.50%
Others (2) (D)	56.1	4.00%	84.5	5.76%
Total (A+B+C+D)	1402.5	100.00%	1468.0	100.00%

(1) Others include sale of chikki, noodles, rusk, soan papdi, washing bar and flour.

(2) Includes sale of by-product, raw materials and wastage and other operating income comprising subsidy income.

Financial Performance

Brief standalone financial performance for FY 2024-25

(Amount in INR crore)

Particulars	Year end - 31 st March 2024	Year end - 31 st March 2025
Total Income	1406.9	1473.6
Operating EBITDA	168.4	105.2
Interest and Financial Charges	5.3	3.4
Profit Before Tax & Exceptional items	131.8	74.2
Exceptional items	-	47.2
Tax Expenses	32.2	8.0
Net Profit	99.6	19.0

Key financial ratios

Particulars	Year end - 31 st March 2024	Year end - 31 st March 2023	% change
Debtors turnover (in times)	68.16	55.15	(19.09%)
Inventory turnover	8.00	8.10	(1.27%)
Payable turnover	72.72	57.67	(20.70%)
Current Ratio (in times)	2.39	2.16	(9.40)%
Debt-equity ratio (in times)	0.17	0.16	(4.88%)
Net profit margin (%)	7.1%	1.3%	(81.77%)

Risk Management

Risk and Description	Mitigation Strategy
Supply Chain Disruptions: Potential disruptions in the supply chain such as natural disasters, pandemics, or political instability could impact the availability of raw materials and the distribution of finished products.	The Company diversifies its supplier base geographically and maintains strategic inventory reserves. It uses robust supply chain management software to enhance the visibility and responsiveness. Along with this, the Company also has an inhouse fleet and it also directly procures the raw materials from the farmers
Market Competition: Intense competition in the Indian snack industry could impact pricing, market position and profitability.	The Company differentiates itself through continuous product innovation and by maintaining quality. It focuses on unique product offerings, such as regional and innovative flavours.
Volatile raw material price: The price of raw materials like flour, lentils, pulses, potato and vegetable oils is often seen to fluctuate. This can pose a significant threat to the company if they are unable to channel the increase in prices of commodities to the consumers.	The Company will build strong relationships with various suppliers to obtain the raw materials at competitive market prices. The Company may also diversify their supplier base to reduce the risk of dependency or disruptions from any particular supplier.
Regulatory Changes: New food safety regulations or compliance requirements could impose additional costs or restrict operations.	The Company invests in proactive legal and regulatory monitoring systems and conducts regular audits and compliance training to ensure adherence to all regulations.
Consumer Preferences: Shifts in consumer preferences towards healthier options or different snack types could reduce demand for some products.	The Company maintains a strong R&D team, which conducts regular market research and consumer surveys to align products with consumer expectations and preferences.
Economic Downturns: Economic downturns may lead to decreased consumer spending on non-essential goods such as snacks.	The Company has developed a diverse product portfolio with budget-friendly options and maintains cost efficiency to withstand economic pressures.
Quality Control Failures: Failure to maintain high-quality standards could lead to product recalls and damage to the brands reputation.	The Company implements stringent quality control measures at every production stage and provides regular training to the staff on quality assurance processes and compliance standards.

Human Resources

The Company believes that their workforce is a critical factor in maintaining their competitive position. The human resource policies focus on training and retaining their employees. Gopal Snacks Limited trains their employees on a regular basis to improve productivity and maintain compliance standards on quality and safety. The Company offers performance linked incentives and certain other benefits to their employees to retain top talent. As of March 31, 2025, the Company had 3043 employees in India of which 1005 are employees (excluding skilled and unskilled labours) and 2038 are skilled and unskilled labours. Apart from the 3043 employees, 118 employees were on a contract basis. Total employee count including contractual employees are 3161. The table below sets forth a breakdown of their employees by department, as of March 31, 2025:

Department	Total
Automation & Maintenance	162
Chairman Office	2
CEO Office	2
Finance and Information Technology	42
Human Resource, Investor Relation and Administration	190
Logistic & Transportation	274
Operations	1,808
Procurement	21
Quality Control	38
Sales & Marketing	504
Total Permanent Employees	3,043
Contractual Employees	118
Total Employees including Contractual Employees	3161

Opportunities and Threats

Opportunities

Diversifying the product portfolio to include healthier snack options

Expanding distribution into under-served markets

Exploring international markets, particularly in regions with significant Indian population.

Utilising advanced technology to enhance operational efficiency and consumer engagement

Introducing new flavours and products tailored to regional preferences across India.

Enhancing their presence in India to strengthen brand visibility and access across the country

Threats

Intense competition from local and international brands. Volatility in raw material prices impacting profit margins. Regulatory changes leading to increased compliance costs.

Internal Control Systems and Adequacy

Gopal Snacks Limited implements a robust internal control system overseen by the Board of Directors, designed to ensure efficient and orderly business operations. This system encompasses comprehensive risk management, adhering to established plans and policies that include risk assessment, a strong control environment, precise control activities, effective information and communication and continuous monitoring of organisational activities. The internal audit function plays a pivotal role, conducted by an Independent Chartered Accountant Firm, which systematically evaluates the Companys data, records and performance to enhance operational effectiveness, ensure resource protection and uphold the reliability of financial reporting.

The internal control framework is further reinforced by the Board Level Audit Committee, which oversees the integrity and transparency of the internal audit process. Emphasis is placed on independent decision-making, rigorous documentation of process evaluations and rectification of identified deficiencies, fostering a culture of accountability throughout the organisation. Regular reviews and updates to policies and procedures ensure compliance with legal standards and internal guidelines, maintaining Gopal Snacks Limiteds commitment to corporate governance and operational excellence.

Cautionary Statement

The Management Discussion and Analysis section contains statements regarding the Companys objectives, projections, estimates, expectations, or predictions, which may be considered as ‘forward-looking statements according to applicable laws and regulations. It should be noted that actual results may differ significantly from those expressed or implied in these statements. The Company is under no obligation to publicly amend, modify, or revise any forward-looking statements, whether due to subsequent developments, new information, events, or any other reason.