Indian Link Chain Manufacturers Ltd Management Discussions

ANNEXURE - 3

(As per Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

The Company has enaged in the business of trading for all kinds of crops, Grains, pulses, spices, dry fruits, other edible products, plantation of trees of all types and production of all kinds of organic food products, fruits, vegetables, dairy, forestry, agricultural, horticulture, tea, coffee, rubber, mineral, cotton, silk, cereals, cotton - silk, vetiveria, wood, lac culture, timber, fuel, floriculture, bee keeping, fodder raising, seeding and manufacturing, trading, processing of agriculture products and allied activities.

During the financial year 2024-25, the Company earned a profit of ^10,93,962 on a standalone basis, as against a profit of ^9,20,677 in the previous financial year 2023-24.

India is among the leading players in the global agriculture sector, providing livelihood to nearly 55% of the countrys population. With the worlds largest cattle herd (buffaloes), the largest area under wheat, rice, and cotton cultivation, and being the largest producer of milk, pulses, and spices, India holds a significant position in global food and agri-production.

The agricultural industry has also witnessed substantial diversification. From earlier operations largely focused on industrial usage, the scope has expanded to include organic food products, fruits, vegetables, dairy, forestry, horticulture, tea, coffee, rubber, cotton, silk, cereals, timber, fuel, floriculture, and more. This wider base highlights the sectors role in supporting domestic demand, enhancing exports, and contributing to sustainable growth.

• Rising demand for organic and natural food products in both domestic and international markets.

• Strong export potential for agricultural commodities such as rice, spices, tea, coffee, and cotton.

• Government support through schemes, subsidies, and policies promoting sustainable agriculture and rural development.

• Increasing use of technology, digital platforms, and precision farming methods to enhance productivity.

• Expanding food processing and retail sector providing value-addition opportunities for farmers and agri-businesses.

• High dependence on monsoon and vulnerability to climate change impacting crop yields.

• Rising input costs including fertilizers, pesticides, fuel, and labor wages.

• Global competition and price volatility in agricultural commodities.

• Fragmented land holdings limiting economies of scale for farmers.

• Regulatory challenges, export restrictions, and compliance with international quality standards.

During the year, trading and organic food production remained the key focus for operations, supported by steady performance in dairy and processing activities, while plantation and allied agricultural operations showed long-term growth potential. The Company hence operates under single segment.

The economy has been passing through a recessionary phase both in Indian and Internationally. The Government is taking several steps to boost the economy and one has to wait and watch for any significant signs for positive sentiment to emerge. However, considering the nature of business, the demand for the products being traded shall prevail as these would form the basic

The broader trends in the economy are expected to have a direct impact on your Companys growth prospects as well. Consequently, market demand and supply chains have been affected, significantly increasing the risk of a global economic recession. The impact of the global health pandemic may be different from that estimated as at the date of approval of the financial statements and the Company will continue to closely monitor any material changes to future economic conditions.

Every business has inherent elements of uncertainties and risks e.g. disruption in supply and consumption pattern as also payment delays and bad debts. The Company has to be very careful in selecting its suppliers and consumers. Rising prices and changing government regulations can also affect Companys performance.

Your Company has adequate internal Controls commensurate with the size and nature of business. The Audit Committee regularly monitors the business activity and performance.

Your company has proposed to diversify its business line for the purpose of growth hence the financial performance is average in this year.

The Company has Human Relations and Industrial Relations policies in force. These are reviewed and updated regularly in line with the Companys strategic plans. The Human Relations team continually conducts training programs for the development of employees.

The Company aims to develop the potential of every individual associated with the Company as a part of its business goal. Respecting the experienced and mentoring the young talent has been the bedrock for the Companys successful growth. The Companys employees age bracket represents a healthy mix of experienced and willing-to-experience employees.

Human resources are the principal drivers of change. They push the levers that take futuristic businesses to the next level of excellence and achievement. The Company focuses on providing individual development and growth in a work culture that enables cross- pollination of ideas, ensures high performance and remains empowering.

Details relating to top employees shall be placed at the registered office of the Company for inspection by the Members of the Company.

Senior Management shall make the disclosure to the Board relating to all material financial and commercial transactions, and where they have personal interest, that may have potential conflict with the interest of the Company at large.

Also your Company is paying rent for the premises it is using for the office purpose to another group concern in which Director is interested. The dealings are at arms length and at prevailing market.

Details of significant changes (25% or more as compared to the immediately previous Financial Year) in key financial ratios in 2024-25

The Return on Net Worth for the year was 4. 46% as compared to 2.82% in the immediate previous financial year.

The Companys operations for the financial year have been impacted by spread of Covid-19. The management of the Company has assessed the impact of the pandemic on its financial results/position such as trade receivables, trade payables and based on its best judgement and reasonable estimate, has concluded that there are no material adjustments required in the Financial Statements. The Company continues to monitor the economic effects of the pandemic while taking steps to improve its execution efficiencies and the financial outcome.

Above statements are made looking to business environment and outlook. The actual results may vary depending upon several factors beyond the control of the management.