Has Lifestyle Ltd Management Discussions

a. Industry structure and developments:

In light of the prevailing economic challenges, the Board of Directors is proactively addressing the complexities of todays dynamic business environment. The ongoing volatility has heightened pressures on the FMCG sector, making it imperative to adopt a strategic and adaptive approach to safeguard profitability and sustain growth.

Our focus remains on developing innovative solutions that not only drive resilience in the short term but also position the Company for long-term success. The Board is committed to enhancing operational efficiency, rationalizing costs, and exploring new revenue streams while remaining aligned with our core values and stakeholder interests.

We recognize that these conditions call for a balance between immediate performance and future sustainability. Accordingly, our strategies are being continuously evaluated and refined to ensure agility in responding to near-term challenges, while simultaneously building a strong foundation for growth. By leveraging our industry expertise, we aim to seize opportunities for innovation and differentiation, particularly in areas that enhance consumer value and strengthen our market presence.

The Board remains steadfast in its mission to navigate uncertainties with foresight and resilience. By staying proactive, agile, and focused on our long-term vision, we are confident in our ability to not only withstand current economic headwinds but also emerge stronger, creating lasting value for all stakeholders.

b. Opportunities and Threats:

The FMCG industry is undergoing rapid transformation, creating both opportunities for growth and challenges that require careful navigation. On the opportunity side, shifting consumer behaviour, with increasing preference for health-conscious, organic, natural, and eco-friendly products, provides strong potential for expanding our portfolio and entering new segments. Emerging markets, supported by a growing middle class and demand for premium offerings, further strengthen the prospects for long-term expansion. Additionally, the accelerated digital transformation across the sector enables us to leverage e- commerce and digital marketing to broaden consumer reach, enhance direct-to-consumer sales, and deliver personalized experiences, while also improving efficiency through technology-driven supply chain and inventory management.

At the same time, the industry faces a number of threats. Economic uncertainties, including fluctuations in raw material prices, inflationary pressures, and supply chain disruptions, can adversely impact operating costs and margins. Rising logistics costs and the complexities of managing a reliable supply chain in a globalized market add to these challenges. Furthermore, evolving regulatory requirements, particularly those relating to environmental sustainability and product safety, necessitate continuous vigilance to avoid financial and reputational risks. The competitive landscape also remains intense, with established players and new entrants alike driving rapid innovation and fighting for consumer loyalty.

In this dynamic environment, the Companys ability to harness consumer trends, embrace digital transformation, and expand into growth markets will be pivotal to sustaining progress. At the same time, agility, compliance readiness, and a focus on continuous innovation will be essential to effectively manage risks. By maintaining this balance, we remain confident in our capacity to deliver sustainable growth and long-term value for all stakeholders.

c. Segment-wise or product-wise performance:

Our Company, a prominent player in the Food & Beverage sector, remains committed to delivering exceptional culinary experiences to our customers. Through our well-established retail chain of outlets, we offer an extensive and diverse array of products that cater to a wide range of tastes and preferences. Our product portfolio includes:

• Fresh & Exotic Fruit Juices: These are packed with essential nutrients and fibers, catering to the health-conscious segment of our clientele. The variety in flavors and the quality of ingredients used in our juices have contributed significantly to their popularity.

• Smoothies & Milkshakes: Our smoothies and milkshakes continue to be a customer favorite, known for their rich texture, refreshing taste, and nutritional value. These products have consistently performed well, particularly in urban markets with a growing demand for quick, yet healthy, snack options.

• Nano shots, vegetable juice, fruit salad: catering to the needs of health-conscious consumers, our range of nano shots, vegetable juices, and fresh fruit salads has been designed to offer a refreshing, nutritious, and convenient eating experience. These wholesome offerings have enabled us to strengthen our presence in the wellness and on-the-go nutrition segment, while aligning with the growing demand for natural and healthy alternatives.

• Authentic South Indian Delights: To cater to diverse consumer tastes, we offer a curated selection of South Indian favorites such as Idle, Dosa, Uthappam. These offerings bring together authentic flavors, high-quality ingredients, and convenient formats, making them appealing to both traditional food lovers and new-age consumers seeking variety. By combining heritage with

modern convenience, this product line has helped us capture a growing segment of customers who value both authenticity and accessibility in their dining choices.

At the core of our business strategy is the ambition to establish and solidify a distinguished brand positioning as a celebrated Food & Beverage store. Throughout the past fiscal year, our efforts have been directed towards not just meeting but exceeding the expectations of our valued customers. This has involved continuous innovation in our product offerings, enhancing the instore experience, and expanding our market presence.

In reviewing the fiscal year 2024-2025, it is crucial to assess our performance in comparison with the previous financial year, 2023-2024. This comparative analysis provides a clear picture of our growth trajectory and highlights areas where we have achieved significant advancements, as well as those that require further strategic focus.

During the financial year 2024-2025, the company recorded a decline in total income, which stood at Rs. 1,457.35 Lakhs, compared to Rs. 1,549.58 Lakhs in 2023-2024. This decrease reflects a challenging operating environment and a moderation in revenue streams.

Despite ongoing efforts to enhance operational efficiency, total expenses remained substantial, resulting in a decline in profit before tax, which reduced from Rs. 277.71 Lakhs in the previous year to Rs. 85.57 Lakhs in the current year.

Tax expenses also decreased in line with the lower profitability. Consequently, the profit after tax for the year amounted to Rs. 85.57 Lakhs, marking a significant reduction from Rs. 277.71 Lakhs in the previous fiscal year. The company remains focused on improving its financial performance through cost optimization and strategic growth initiatives in the upcoming periods.

While there was a moderation in income and profitability, our core strategies continue to strengthen the business foundation and reinforce our position as a trusted and emerging brand in the Food & Beverage industry. As we move forward, we remain committed to innovation, expansion, and unlocking long-term value for our stakeholders.

d. Outlooks:

In todays challenging market environment, adaptability and agility remain more critical than ever. The Company is committed to elevating service quality and strengthening its market presence through the opening of new outlets. This strategic expansion will not only enhance the visibility of our brand, HAS Juices & More, but also reaffirm our dedication to delivering excellence and consistency across all customer touchpoints.

While our core business continues to focus on fresh and healthful juices, we recognize the highly competitive nature of the industry. Despite these challenges, the long-term outlook for the sector remains encouraging, driven by increasing consumer demand for nutritious, natural, and convenient offerings.

Looking ahead, we are confident that a well-balanced strategy encompassing innovative product introductions, robust marketing initiatives, and proactive market development will significantly strengthen our presence. These efforts will enable us to tap into the growing health-conscious segment in India and accelerate business growth in the coming years.

As market dynamics continue to evolve, our mission remains clear—to create lasting value for customers, nurture enduring relationships, and sustain our upward growth trajectory. By embracing change, leveraging our strengths, and staying aligned with consumer preferences, we are well-positioned to capitalize on industry opportunities and secure a stronger position in an increasingly competitive landscape.

e. Risks and concerns:

The performance of our business categories remains closely tied to the broader economic landscape. As such, any adverse movement in the economy poses a direct risk to our operations. Economic slowdowns or unfavorable conditions could dampen consumer spending patterns, thereby impacting demand for our products and ultimately influencing revenue and profitability.

In addition to macroeconomic factors, several other risks merit consideration:

1. Intensifying Competition - The fresh juice and wellness segment continues to attract multiple players, which may exert pressure on pricing, margins, and market share.

2. Operational Risks - Challenges relating to supply chain continuity, quality assurance, and maintaining uniform product standards could hinder our ability to consistently deliver value.

3. Regulatory Landscape - Any introduction of new policies or amendments to existing regulations governing health and wellness products may necessitate realignment of operations and compliance practices.

4. Evolving Consumer Trends - Shifts in consumer choices, or a preference towards alternate health and nutrition solutions, could influence product demand, requiring timely innovation and adaptability.

5. Technology-led Disruption - Rapid digital and technological advancements may require continuous upgrades and investments in systems and platforms to remain competitive and meet consumer expectations.

To address these risks, the Company remains committed to proactive monitoring, strategic adaptability, and operational resilience. By staying responsive to market signals and maintaining a flexible business approach, we aim to mitigate potential challenges and secure sustainable growth in the long term.

f. Internal control systems and their adequacy:

The Company has established a robust system of internal controls that forms the foundation of its operations. These controls are designed to promote operational efficiency, ensure compliance with applicable laws and regulations, safeguard the Companys assets, and maintain the reliability and integrity of financial reporting. Our framework is supported by a well-defined organizational structure, comprehensive policy guidelines, and embedded control mechanisms that collectively reflect our commitment to sound governance and operational excellence.

System of Internal Controls

The Companys internal control framework is structured to:

• Enhance Operational Efficiency by streamlining processes, minimizing redundancies, and ensuring optimal use of resources.

• Ensure Compliance with internal policies, industry regulations, and applicable laws, thereby conducting all business activities within an ethical and legal framework.

• Safeguard Assets through rigorous monitoring, asset management procedures, and regular audits to prevent misuse, theft, or loss.

• Maintain Accuracy of Financial Reporting by implementing thorough documentation, reconciliations, and adherence to applicable accounting standards and practices.

Organizational Structure and Policies

The organizational framework clearly defines roles and responsibilities, ensuring accountability and effective oversight. Well- documented policy guidelines provide a structured approach to decision-making and operational procedures, while internal controls are integrated into daily practices to mitigate risks and ensure adherence to established policies.

Continuous Improvement;

Recognizing the evolving nature of business and regulatory landscapes, the Company is committed to regularly reviewing and enhancing its internal control framework. By adopting best practices, incorporating technological advancements, and aligning with industry benchmarks, we continuously strengthen our systems to sustain efficiency and compliance.

Risk Management;

The internal control systems are closely linked with a proactive risk management approach. The Company continuously evaluates potential risks, develops fortified strategies to mitigate them, and refines its systems to remain resilient in a dynamic business environment. Regular assessments ensure that risks are identified early, addressed effectively, and monitored consistently.

In summary, the Companys internal control systems are comprehensive, effective, and adequate to meet the scale and complexity of its operations. Through a blend of strong governance practices, continuous system enhancement, and proactive risk management, the Company remains well-positioned to safeguard stakeholder interests, maintain operational excellence, and achieve sustained success.

g. Discussion on financial performance with respect to operational performance:

For the financial year (F.Y.) 2024-2025, the companys gross income and net profit were lower compared to the previous financial year (F.Y.) 2023-2024. The company continues to focus on improving efficiency and building a strong foundation for future growth.

The detailed financial performance is outlined below:

Gross Income: The Gross Income for F.Y. 2024-2025 decreased to =t1,457.35 Lakhs, compared to =t1,549.58 Lakhs in the previous financial year. While there was a decline, the company continued its efforts to strengthen market presence through expanded outreach, product enhancements, and targeted promotional activities.

Profit for the Year: The profit for the year declined to ^85.56 Lakhs, from ^277.71 Lakhs in the previous year. This reduction reflects the impact of various external and operational factors. Despite the lower profitability, the company remains committed to optimizing operational efficiency, managing costs effectively, and laying the groundwork for sustainable growth in the coming years.

• Revenue Growth: The substantial increase in gross income signifies that our operational performance has been robust, driving higher sales and expanding our customer base. This growth aligns with our strategic goals of increasing market presence and driving sales.

• Profit Margins: The notable rise in profit margins reflects our ability to manage expenses effectively while scaling up operations. This suggests that our cost control measures, operational efficiencies, and pricing strategies have contributed positively to our bottom line.

• Strategic Initiatives: The financial performance is a testament to the successful implementation of strategic initiatives such as opening new outlets, enhancing product offerings, and investing in marketing. These actions have contributed to increased revenue and profitability.

Overall assessment of the financial performance for F.Y. 2024-2025 indicates a decline in both gross income and profit compared to the previous year. While the financial outcomes reflect certain market and operational challenges, they also demonstrate the companys resilience and focus on long-term stability. We remain committed to strengthening our core operations, improving efficiency, and adapting to evolving customer needs. Looking ahead, we will continue to pursue innovation and strategic growth to enhance stakeholder value.

h. Material developments in Human Resources / Industrial Relations front, including number of people employed:

Our company acknowledges the crucial role that Human Resources (HR) and Industrial Relations (IR) play in driving our growth and ensuring long-term success. Over the past year, we have made several significant advancements in these areas, aimed at fostering a positive work environment and cultivating a high-performance culture.

• Number of People Employed: Our workforce has undergone a slight reduction over the past year. As of the end of F.Y. 2024-2025, the company employed 85 employees, down from 89 employees in the previous year. This adjustment aligns with our efforts to optimize operations and maintain efficiency while continuing to support our strategic growth initiatives.

• Recruitment Initiatives: We have enhanced our recruitment processes to attract top talent across various levels of the organization. This includes refining our hiring strategies, leveraging advanced recruitment tools, and expanding our talent pools to include diverse and highly skilled candidates.

• Onboarding Programs: We have implemented comprehensive onboarding programs to ensure new hires are seamlessly integrated into the company culture and equipped with the necessary skills and knowledge to contribute effectively.

• Training Programs: A focus has been placed on continuous learning and professional development. We have introduced a range of training programs designed to enhance employees skills, leadership capabilities, and career progression. These include technical training, leadership workshops, and soft skills development.

• Performance Management: Our performance management system has been refined to better align individual goals with organizational objectives. This includes regular performance reviews, constructive feedback, and tailored development plans to support career growth.

• Engagement Initiatives: We have launched various initiatives to improve employee engagement and satisfaction. These include employee feedback surveys, team-building activities, and recognition programs to celebrate achievements and foster a sense of belonging.

• Well-being Programs: We have introduced well-being programs aimed at supporting employees mental and physical health. These programs include wellness workshops, health screenings, and flexible work arrangements to promote work-life balance.

• Regulatory Compliance: We have ensured compliance with labour laws and regulations through regular audits and updates to our policies and practices. This includes adhering to wage regulations, working conditions, and employee rights.

• Conflict Resolution: Our approach to industrial relations emphasizes proactive conflict resolution and open communication. We have established channels for employees to voice concerns and address issues promptly and effectively.

• Policy Revisions: We have reviewed and updated our HR policies to reflect current best practices and legal requirements. This includes updates to employee handbooks, code of conduct, and grievance procedures to ensure clarity and fairness.

• Diversity Initiatives: We are committed to fostering a diverse and inclusive workplace. Our diversity and inclusion initiatives include implementing policies to promote equal opportunity, conducting diversity training, and supporting employee resource groups.

Overall, the past year has seen important developments in our Human Resources and Industrial Relations efforts. Although our workforce decreased slightly from 89 to 85 employees, we have continued to focus on employee development, strengthening labour relations, and promoting diversity. These initiatives reflect our ongoing commitment to building a supportive and high- performance work environment, nurturing talent, and driving sustainable organizational success.

i. Performance-Based Appraisal System:

A notable achievement on the Human Resources front is the successful implementation of a performance-based appraisal system. This system is designed to recognize and reward employees contributions in alignment with their performance, ensuring a fair and transparent evaluation process. By linking rewards and career advancement to performance metrics, the system empowers our workforce to excel and motivates them to strive for continuous improvement.

Key features of the system include:

• Objective Evaluation: The system utilizes clear and measurable performance indicators to provide an objective assessment of employee achievements and areas for development.

• Transparent Process: Employees have access to the criteria and metrics used in their evaluations, promoting transparency and trust in the appraisal process.

• Regular Feedback: Frequent feedback and performance reviews are integral to the system, enabling employees to understand their progress and make adjustments throughout the year.

• Recognition and Rewards: High performers are recognized and rewarded through various incentives, including bonuses, promotions, and professional development opportunities.

Overall, the performance-based appraisal system is a cornerstone of our commitment to fostering a high-performance culture, driving employee engagement, and achieving organizational goals.

j. Employee Empowerment and Development:

Weve continued our focus on employee empowerment and development, fostering a learning environment where skill enhancement is actively encouraged. Our commitment to employee growth is demonstrated through a variety of initiatives designed to equip our workforce with the tools and knowledge needed to excel in their roles.

Key aspects of our approach include:

• Comprehensive Training Programs: We offer a range of training initiatives and workshops tailored to various skill levels and departmental needs. These programs are aimed at enhancing both technical and soft skills.

• Skill-Building Opportunities: Employees are encouraged to participate in skill-building activities that align with their career aspirations and organizational goals. This includes access to online courses, seminars, and industry conferences.

• Mentorship and Coaching: Our mentorship and coaching programs provide employees with guidance and support from experienced leaders within the company, helping them navigate their career paths and achieve their professional objectives.

• Continuous Learning Culture: We promote a culture of continuous learning by providing resources and tools that facilitate ongoing personal and professional development. Employees are encouraged to pursue learning opportunities that drive innovation and enhance job performance.

By investing in our employees growth and development, we aim to build a more skilled, motivated, and engaged workforce, ultimately contributing to the overall success and competitiveness of our organization.

k. Employee Well-Being:

The well-being of our employees remains a top priority. We are dedicated to creating a supportive work environment where employees can thrive both personally and professionally. By prioritizing employee well-being, we aim to enhance job satisfaction, reduce stress, and create a positive and productive work environment. Our commitment to supporting our employees health and happiness is integral to our organizational success.

l. Number of People Employed:

As of the current financial year 2024-2025, our workforce stands at 85 employees, slightly lower than the previous years 89. This adjustment reflects our ongoing efforts to optimize resources while continuing to harness the talents of skilled individuals who drive our companys progress and excellence.

Through these strategic developments, we remain focused on cultivating an engaged, motivated, and skilled workforce that fuels our current success and propels us toward sustained growth and innovation. By continually investing in our people, we are building a strong foundation for ongoing achievement and long-term success.