Indian Sucrose Ltd Management Discussions

GLOBAL SUGAR MARKET

The International Sugar Organization (ISO) raised its 2024/25 global sugar deficit forecast to 4.88 MMT from its previous estimate of 2.51 MMT, signaling a tightening market compared to the 2023/24 global sugar surplus of 1.31 MMT. The ISO also lowered its global sugar production forecast for 2024/25 to 175.5 MMT from the earlier estimate of 179.1 MMT. Green Pool Commodity Specialists projected that the global sugar market will shift to a surplus of 2.7 MMT in the 2025/26 crop year after an estimated deficit of 3.7 MMT in 2024/25.

Indias decision to allow 1 MMT of sugar exports this season, announced on January 20, also weighed on prices. The country had restricted sugar exports since October 2023 to maintain domestic supply. During the 2022/23 season, India permitted exports of only 6.1 MMT after allowing a record 11.1 MMT in the previous season. However, the Indian Sugar Mills Association (ISMA) projects that Indias 2024/25 sugar production will decline by 15% year-over-year to a five-year low of 27.27 MMT.

GLOBAL ECONOMY

As per the International Monetary Funds World Economic Outlook (WEO), the risks to global growth are broadly balanced and a soft landing is a possibility with the global growth projected at 3.1% in 2024 and 3.2% in 2025, with the 2024 forecast 0.2% higher than the previous WEO released in October 2023, on account of greater-than expected resilience in the United States and several large emerging market and developing economies, as well as fiscal support in China. The forecast for 2024–25 is, however with elevated central bank policy rates to fight inflation, a withdrawal of fiscal support amid high debt weighing on economic activity, and low underlying productivity growth. World trade growth is projected at 3.3% in 2024 and 3.6% in 2025, below its historical average growth rate of 4.9%. In emerging market and developing economies, growth is expected to remain at 4.1% in 2024 and to rise to 4.2% in 2025. An upward revision of 0.1% for 2024 since October 2023 reflects upgrades for several regions. India, being an emerging market and developing economy itself, is projected to remain strong at 6.5% in both 2024 and 2025, with an upgrade of 0.2% points for both years, reflecting resilience in domestic demand.

INDIAN SUGAR MARKET

Next to Brazil, India is the largest global producer of sugar. In India, sugarcane is produced majorly in nine states, viz., Uttar Pradesh, Maharashtra, Karnataka, Punjab, Andhra Pradesh, Bihar, Gujarat, Haryana, and Tamil Nadu. It is one of those important agro-based industries that impacts the rural livelihood of many. Demand for cane and sugar is increasing in India because of their extensive use in applications like food and beverages, bakery, confectionery and Others.

The Indian sugar industry is expected to see a rebound in production during the 2025-26 season, with estimates ranging from 35 to 36 million tonnes, a significant increase compared to the previous year. This growth is largely attributed to favorable weather conditions and increased sugarcane acreage. While the current season (2024-25) experienced lower-than-expected production, the outlook for 2025-26 is optimistic due to anticipated higher yields and a strong monsoon. Indias sugar production has dropped by 18.38% to 25.82 million tonnes as of July in the current season 2024-25, compared to the same period last year. This decline comes as major sugar-producing states reported lower output, according to the National Federation of Cooperative Sugar Factories Ltd (NFCSF). The NFCSFL also reported that Uttar Pradesh, Indias largest sugar-producing state, saw a decline in output to 9.27 million tonnes as of July, down from 10.36 million tonnes last year. Maharashtra, the second-largest producer, experienced a sharper fall, with output dropping to 8.09 million tonnes from 11 million tonnes, while Karnatakas production decreased to 4.06 million tonnes from 5.16 million tonnes.

The decline in production is attributed to a combination of reduced sugarcane availability, adverse weather conditions, a rise in the diversion of sugarcane for ethanol production, and pest and disease outbreaks.

STATE-WISE SUGAR PRODUCTION AND CRUSHING

A. MAHARASHTRA

Sugar production in Maharashtra for the ongoing 2024-25 season has reached 728.67 lakh quintals (approximately 72.86 lakh tonnes), marking a decline from the 879.6 lakh quintals produced during the same period last season. Currently, 156 mills are engaged in sugarcane crushing operations, while 44 mills have concluded their crushing season. As of February 23, statewide mills have crushed 781.82 lakh tonnes of sugarcane, compared to 884.6 lakh tonnes crushed during the same period last season. The states overall sugar recovery rate stands at 9.32%, lower than the 9.94% rate achieved during the same period last season.

The decline is linked to factors like lower yields, delays in the start of the crushing season, and diversion of sugarcane for ethanol production.

B. UTTAR PRADESH

Uttar Pradesh continues to lead the country in sugar production during the 2024–25 crushing season, with 92.75 lakh tonnes of sugar produced so far. However, the state is also witnessing a sharp dip in sugar recovery and overall output compared to last year, reflecting broader concerns in the sugar industry.

According to the National Federation of Cooperative Sugar Factories Ltd (NFCSF), UPs sugar production has declined from

103.65 lakh tonnes last year — a drop of nearly 11%. Even more alarming is the fall in sugar recovery rate from 10.60% to 9.70%, a signal that the same amount of cane is now yielding significantly less sugar.

Uttar Pradesh is also playing a key role in Indias ethanol blending programme, which recently achieved its 2025 target of 20% ethanol blending in petrol — five years ahead of schedule. A substantial share of this ethanol comes from sugarcane-based feedstock, much of it sourced from UP.

Out of the 700 crore litres of ethanol supplied so far in the current ethanol year, 38% has come from sugarcane, with UP being one of the largest contributors.

C. TAMIL NADU

The Tamil Nadu sugarcane sector in 2025 is facing concerns about the announced Fair and Remunerative Price (FRP) and its impact on farmer livelihoods. While the central government increased the FRP to ?355 per quintal for the 2025-26 season,

farmers in Tamil Nadu, particularly in the western districts, are expressing dissatisfaction, stating its insufficient and doesnt meet the state governments previous election promise of ?4,000 per tonne.

The mill management has been awaiting government approval for a ?160-crore proposal to revamp facilities and replace ageing machinery. The old machinery installed in 1955 had worn out and had to be discarded during 2023.The new committee will frame an action plan to revive cane crushing operations.

The mill has, for the last couple of years, been extracting rectified spirit and ethanol by sourcing molasses from other mills in the State, as per the media report.

Farmers associations have been pressing for revival of cane crushing at the mill, pointing out that it offers an around 11% sugar recovery rate, the highest in the region. The Region has suggested modernising the unit with a crushing capacity of 2,500 tonnes per day. Farmers currently transport their cane to other mills, adding to their costs.

D. PUNJAB

The Punjab Government announced the sugarcane crushing in the state will begin from November 25, 2024 onwards. This decision was made during a meeting of the State Sugarcane Control Board, chaired by Punjab Agriculture and Farmers Welfare Minister S. Gurmeet Singh Khudian at his office. He Further said that Punjab has witnessed a 5% increase in the area under sugarcane crop. This year, sugarcane crop has been cultivated on 1 lakh hectares area, which is up from around 95,000 hectares previous year. There are 15 sugar mills in Punjab, comprising nine cooperative and six private mills, which are expected to crush around 700 lakh quintals of sugarcane. The state is projected to produce 62 lakh quintals of sugar this season

Farmers associations have been pressing for revival of cane crushing at the mill, pointing out that it offers an around 7.5% Average sugar recovery rate.

SUGAR PRODUCTION ESTIMATE

The Indian Sugar and Bio-energy Manufacturers Association (ISMA) has released the first estimates of sugar production for the 2025–26 season.

In ISMAs meeting on 31st July 2025, attended by representatives from sugar-producing states across the country, Indias gross sugar production (before diversion) is estimated to increase by 18%, reaching around 349 lakh tonnes, compared to 295 lakh tonnes produced in 2024-25.

Based on the satellite images procured in the latter part of June 2025, the total acreage under sugarcane in the country is estimated to be around 57.24 lakh hectares in 2025-26 SS against 57.11 lakh hectares in 2024-25 SS i.e. marginally higher than last year. The images of the cane area, field reports regarding expected yield, sugar recovery, drawal percentage, impact of previous and current years rainfall, water availability in reservoirs, expected rainfall during SW monsoon 2025 and other related aspects were discussed in detail, ISMA said.

According to the sugar body, In Maharashtra, the cane area has increased to 14.93 lakh hectare for 2025-26 SS, against last year area of 13.82 lakh hectares i.e. up by approximately 8%. The overall crop quality this year is significantly better than last year. A higher proportion of plant cane and adequate water availability have contributed to this improvement. The abundant rainfall received in May was particularly beneficial, enhancing soil moisture and supporting early crop growth. Additionally, southwest monsoon rainfall between June 1 and July 31 has remained within the normal range, further supporting crop development. The forecast for the remainder of the 2025 southwest monsoon is also positive, reinforcing expectations of a healthy and promising crop. Additionally, reservoir levels in cane growing regions have better availability of water as compared to last year i.e. higher 30 – 40%.

These factors are likely to enhance cane productivity and improve sugar recovery from the standing crop, thereby positively impacting overall sugar output. The combination of better yields and increased cane area is expected to boost gross sugar production (before diversion) to 132.68 lakh tonnes against 93.34 lakh tonnes last year i.e. up by approximately 42%.

In Karnataka sugarcane area has increased by about 6% to 6.76 lakh hectares against 6.4 lakh hectares last year. Similar to Maharashtra, favorable rainfall and adequate water availability in reservoirs have improved standing crop quality significantly and therefore sugarcane yield and sugar recovery are expected to increase. Accordingly, gross sugar production (before diversion) is

expected to increase by 23% to 66.19 lakh tonnes against 53.68 lakh tonnes produced in 2024-25 SS.

S.No	States	Sugarcane Acreage		% Change over last year	2024-25 (P)			2025-26 (E)
					Estimated sugar production	Estimated sugar diversion	Net sugar production	Estimated sugar production
		Lakh Hectares			BEFORE DIVERSION		AFTER DIVERSION	BEFORE DIVERSION
		2024-25	2025-26		Lac tons	Lac tons	Lac tons	Lac tons
1	Uttar Pradesh	23.30	22.57	-3	100.74	34.04	92.76	102.53
2	Maharashtra	13.82	14.93	8%	93.34		80.96	132.68
3	Karnataka	6.40	6.76	6%	53.68*		41.86*	66.19
4	Tamil Nadu	2.07	2.05	-1%	6.99*		6.93*	7.15
5	Gujarat	2.31	2.22	-4%	8.94		8.92	9.41
6	Others	9.12	8.71	-5%	31.38		29.60	31.06
7	Total (estimated end of season)	57.11	57.24	0%	295.07	34.04	261.03	349.01

In Uttar Pradesh, cane area has declined by approximately 3% to 22.57 lakh hectares against 23.30 lakh hectares last season. However, the overall condition of the standing crop is much better than last year. Moreover, due to cane development initiatives at the mill level, including timely corrective measures and varietal replacements, the incidence of red rot and other disease infestations is expected to remain minimal in the 2025-26 sugar season and therefore cane yield and recovery are likely to recover. Accordingly, it is estimated that gross sugar production (before diversion) in the state would be 102.53 lakh tonnes against last year production of 100.74 lakh tonnes.

SUGAR CONSUMPTION

In a release, ISMA stated that, on the consumption side, it is noted that the domestic sales quota for the first four months of this year is 7 lakh tonnes lower compared to the same period last year. Additionally, during the previous year, a higher sales quota was released due to increased demand during the general elections (April – June, 2024). Consequently, ISMA estimates that, with an average domestic consumption of approximately 23.5 lakh tonnes over the remaining eight months, the total domestic consumption for the sugar season 2024-25 is projected to be lower, at around 280 lakh tonnes.

As crushing progresses at normal pace, sugar production till 31st December, 2024 in the current 2024-25 Sugar Season reached

95.40 lakh tonnes, against 113.01 lakh tonnes produced last year on the corresponding date. Number of operating factories were 493 this year, against 512 factories which operated last year on the corresponding date, according to ISMA.

SUGARCANE FAIR & REMUNERATIVE PRICE

The Fair and Remunerative Price (FRP) for sugarcane for the 2025-26 sugar season is set at ?355 per quintal, according to PIB. This price is for a basic recovery rate of 10.25%. There is a premium of ?3.46 per quintal for every 0.1% increase in recovery above 10.25% and a similar deduction for decreases, according to PIB. For sugar mills with a recovery rate below 9.5%, the FRP is set at ?329.05 per quintal. The Commission for Agricultural Costs and Prices (CACP), an attached office of the ministry of agriculture and farmers welfare, calculates the FRP in consultation with sugar industry associations and state governments. Factors considered include the cost of production, returns from other crops, market prices of agricultural commodities and sugar, sugar recovery, by-product sales, and reasonable margins for farmer. The FRP protects farmers by guaranteeing a minimum price, encouraging improved cane quality, and helping ensure timely payments. The sugar sector is a vital industry, providing livelihoods to many farmers and workers

ISMA PRELIMINARY ESTIMATES OF SUGAR PRODUCTION FOR 2025 SEASON

According to the Indian Sugar and Bio-energy Manufacturers Association (ISMA), Indias sugar production is estimated to rise by 18% to 34.9 million tonnes in the 2025-26 season, according to ISMA. This increase is attributed to higher sugarcane acreage in states like Maharashtra and Karnataka. ISMA also anticipates that a significant portion of this increased production, around 5 million tonnes, will be diverted for ethanol production, with the potential for 2 million tonnes to be exported.

According to the sugar body, In Maharashtra, the cane area has increased to 14.93 lakh hectare for 2025-26 , against last year area of 13.82 lakh hectares i.e. up by approximately 8%. The overall crop quality this year is significantly better than last year. A higher

proportion of plant cane and adequate water availability have contributed to this improvement. The abundant rainfall received in May was particularly beneficial, enhancing soil moisture and supporting early crop growth. Additionally, southwest monsoon rainfall between June 1 and July 31 has remained within the normal range, further supporting crop development. The forecast for the remainder of the 2025 southwest monsoon is also positive, reinforcing expectations of a healthy and promising crop. Additionally, reservoir levels in cane growing regions have better availability of water as compared to last year i.e. higher 30 – 40%.

These factors are likely to enhance cane productivity and improve sugar recovery from the standing crop, thereby positively impacting overall sugar output. The combination of better yields and increased cane area is expected to boost gross sugar production (before diversion) to 132.68 lakh tonnes against 93.34 lakh tonnes last year i.e. up by approximately 42%.

In Karnataka sugarcane area has increased by about 6% to 6.76 lakh hectares against 6.4 lakh hectares last year. Similar to Maharashtra, favorable rainfall and adequate water availability in reservoirs have improved standing crop quality significantly and therefore sugarcane yield and sugar recovery are expected to increase. Accordingly, gross sugar production (before diversion) is expected to increase by 23% to 66.19 lakh tonnes against 53.68 lakh tonnes produced in 2024-25.

In Uttar Pradesh, cane area has declined by approximately 3% to 22.57 lakh hectares against 23.30 lakh hectares last season. However, the overall condition of the standing crop is much better than last year. Moreover, due to cane development initiatives at the mill level, including timely corrective measures and varietal replacements, the incidence of red rot and other disease infestations is expected to remain minimal in the 2025-26 sugar season and therefore cane yield and recovery are likely to recover. Accordingly, it is estimated that gross sugar production (before diversion) in the state would be 102.53 lakh tonnes against last year production of 100.74 lakh tonnes.

ETHANOL OVERVIEW

India ethanol market is estimated to be valued at US$ 3.28 Bn in 2025, and is expected to reach US$ 9.31 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 16.1% from 2025 to 2032.

Ethanol is a renewable fuel produced through the fermentation of sugars found in crops such as corn, sugarcane, and wheat. In India, ethanol is primarily produced from molasses, a by-product of sugar production. Ethanol has gained popularity in India owing to its use as a blending agent with gasoline to curb vehicular air pollution as well as reduce the countrys reliance on crude oil imports. Key drivers supporting ethanol market growth in India include favorable government policies such as the ethanol blending program and rising environmental concerns.

India ethanol market is segmented into by source, end-user, grade, blending, application method, and region. By source, the market is segmented into molasses, sugar cane juice, grains, and others. The molasses segment accounted for the largest share of the market in 2025. Molasses is readily available in India as a by-product of sugar production. The government focus on using sugarcane juice directly to produce ethanol is expected to drive the sugar cane juice segment at the highest CAGR during 2025-2032.

India Ethanol Market- Drivers.

o Supportive Government Policies - The Indian government has implemented several supportive policies to boost ethanol production and consumption in the country. Ethanol blending program mandates an increasing blending of ethanol with gasoline. This has given ethanol a steady and expanding market. The government has also provided subsidies, loans and incentives for ethanol projects. The National Policy on Biofuels-2018 aims to triple ethanol production by 2025. Such policies encourage investments and development in the ethanol market.

o Growing Automotive Sector - India is one of the fastest growing automotive markets globally. Vehicle sales have been rising steadily due to rising incomes, increasing urbanization, and infrastructure development and expanding middle class. This expanding automotive sector boosts demand for fuels. Ethanol blending helps to address this fuel demand in a more sustainable manner while reducing oil imports. The government aims to achieve its ethanol blending targets by leveraging this vast growth potential of Indias automotive sector.

o Increasing Consumption as Biofuel - Most of the ethanol produced in India is used for EBP blending. But apart from blending, ethanols use as a biofuel is also rising for transportation applications. Ethanol fuel blends allow existing gasoline- based vehicles to switch to cleaner renewable fuels with minimal or no engine modification. Ethanol has high octane rating and oxygen content, making it an efficient fuel. As environmental concerns grow globally, ethanol is gaining traction as a cleaner burning biofuel alternative. This boosts its consumption in India.

o Expanding End-use Applications - Beyond fuel blending, ethanol has diverse end-use applications across industries like personal care, paints & coatings, chemical, pharmaceutical, and others. With rising incomes and growing consumer segments,

demand from these sectors is expanding. For instance, ethanol is widely used in cosmetics, perfumes, deodorants, antiseptic products, and others. Its solvent properties create opportunities across industrial domains. Such broad usage potential is fueling the growth of the ethanol industry.

India Ethanol Market- Opportunities

o Cellulosic Ethanol Production - Cellulosic ethanol made from agricultural residues, grasses or wood waste has immense potential in India. The country generates millions of tons of agri-waste annually which could be used to produce cellulosic ethanol. This 2G ethanol does not affect food security like 1G ethanol from grains/sugarcane. Government policy also encourages cellulosic projects. Companies are investing in 2G ethanol production technologies suitable for Indian biomass. Tapping the abundance of agri-residues can drive the market growth.

o Export Potential - Indias expanding ethanol production and favorable trade policies have opened up exports opportunities for domestic players. Ethanol exports help to deal with excess supplies as well as generate foreign exchange earnings. The government has allowed exports of surplus ethanol from molasses and non-food feedstock. It has also removed restrictions on export quantity and destinations. Several companies have commenced ethanol exports targeting fuel, potable liquor and industrial demand in overseas markets. Export demand would further propel production of ethanol.

o Emergence of Domestic Market - Historically ethanol production in India has largely depended on ethanol supply obligations for Oil Marketing Companies (OMCs) to meet EBP blending targets. However, new private sector opportunities are now emerging beyond OMC demand with growing usage in non-fuel sectors and specialty chemicals. Beyond the usual OMC demand, rising private consumption would give ethanol producers additional long-term demand certainty.

o Investments in Production Capacity - To meet rising domestic ethanol demand as well as tap export potential, public and private players are investing significantly to enhance production capacities. From molasses-based distilleries to grain/2G ethanol plants, capacity addition plans have been announced. The market has over 150 ethanol producers and additional players are also entering the market. Availability of feedstock, technologies and favorable policies continue to attract large scale investments.

India Ethanol Market- Restraints

o High Feedstock Costs - Feedstock can account for up to 70% of ethanol production costs. Fluctuating availability and elevated prices of feedstocks like corn, broken rice, sugarcane, and others can affect project viability. Excess sugarcane diversion towards ethanol also impacts sugar production. Managing feedstock costs through long-term contracts, using molasses efficiently during surplus sugar seasons is vital.

o Lack of Adequate Storage & Handling Infrastructure - Unlike fossil fuels, ethanol requires Given its propensity for absorbing water, it requires specialized infrastructure for storage and transportation. Lack of adequate tankage facilities at depots, rail tank cars to transport ethanol from production units to OMC depots hampers smooth supply logistics. Developing suitable storage and handling solutions is critical.

o Constraints in Supply Chain Mechanism - Complex sugarcane pricing policies, delays in announcing ethanol procurement tenders and prices affect industry planning. Release of government subsidies/incentives also often gets deferred. Resolving regulatory and procedural hurdles can help to streamline the supply ecosystem.

https://www.coherentmi.com/industry-reports/india-ethanol-market

CO-GEN OVERVIEW

The Indian Government has been actively promoting co-generation as a means to increase energy efficiency and reduce emissions. Policies such as the National Mission on Sustainable Agriculture aim to boost the adoption of biomass-based co-generation technologies. The sector has seen advancements in co-generation technologies, including improvements in efficiency and reliability. Integration of advanced control systems and automation has enhanced the performance of co-generation plants, making them more competitive in the market. Since bagasse is a by-product of sugarcane, the quantity of bagasse production in the country is in proportion to the quantity of sugarcane produced. The power produced through co-generation substitutes the conventional thermal alternative and reduces greenhouse gas emissions. In India, interest in high-efficiency bagasse-based co- generation started in the 1980s when electricity supply started falling short of demand. High-efficiency bagasse co-generation was perceived as an attractive technology both in terms of its potential to produce carbon-neutral electricity as well as its economic benefits to the sugar sector. Recognizing the significant potential and role of biomass energy within the Indian context, the Ministry of New and Renewable Energy (MNRE) has launched numerous initiatives to promote efficient technologies across various sectors, aiming to maximize benefits derived from biomass utilization. India is also creating a viable market for bio products like biomass.

pellets and briquettes. The country hosts approximately 230 biomass pellet manufacturers and around 1,030 briquette manufacturers across various states. These products are supplied to power plants and industries. Additionally, the government has established a national mission on the use of biomass in Thermal Power Plants (TPPs) under the Ministry of Power. This initiative aims to address air pollution caused by farm stubble burning and reduce the carbon footprint of thermal power generation.

INDUSTRY OVERVIEW

The success of the sugar business depends on the sugarcane availability and sugarcane quality. During the year, the sugarcane availability in Punjab units was better compared to the previous year. The thrust on cane development activities initiated by your Company, including encouraging the farmers in various ways in all command areas, helped to increase the sugarcane availability. The average recovery recorded was at 9.93% as against 10.38% in the previous year. The lower recovery was due to the climate change, which led to late rainfall. In addition to the above, high temperature was witnessed both during day and night, which was prevalent across the state.

Your companys mission revolves around more than just profit margins; it is deeply rooted in the well-being of the farmers who form the backbone of our operations. For decades, we have worked tirelessly to uplift and empower them, recognizing their invaluable contributions to our success. Our commitment to their prosperity is unwavering, and every decision we make as a company is guided by this principle. Financial support is another crucial aspect of our farmer-centric approach. We understand that access to credit and capital is essential for agricultural development, especially in rural areas where traditional banking services may be limited. We offer all kind of assistance to the farmers in order to help them with the cultivation of sugarcane. The Company continued to pursue its strategies to optimize efficiencies, reduce costs, eliminate wastage, and achieve stretch targets for growth. Even as our Company continues to focus on capacity and efficiency enhancement, it aims to ramp up the diversification of the sugar portfolio.

The Company is engaged in two segments, namely sugar and cogeneration of power(Cogen.). The segment wise performance for the year is as under:

Particulars	Year Ended 31.03.2025	Year Ended 31.03.2024
Sugar Installed Capacity (TCD)	9000	9000
Sugarcane Crushed(Quintals)	10428636	10717256.47
Recovery %	9.95	9.93
Sugar produced (Quintals)	1037770	1065160
Power Installed Capacity Co-gen Power (MW)	59.5 M.W	59.5 M.W
Wind Mills (MW)	N.A.	N.A.
Units Generated (MWH)	109062	92280

Financial Performance

(? in Lakhs)

Particulars	Year Ended 31.03.2025	Year Ended 31.03.2024
Revenue from operations Sugar	44277.92	45486.41
Molasses	5700.70	3499.21
Bagasses & Others	16.30	-
Power	3199.53	2343.70
Total Expenses (Excluding interest)	48298.87	47102.77
Profit Before Interest and Tax (PBIT)	7754.17	7117.88
Profit After Tax (PAT)	3837.66	3277.47
Earnings per Share Basic Diluted	22.09 22.09	18.84 18.84

Details of Adequacy of Internal Financial Controls

The Companys internal control system is aimed at proper utilization and safeguarding of the Companys resources and promoting operational efficiency. The internal audit process reviews the in-system checks, covering significant operational areas regularly.

The Companys Audit Committee is responsible for reviewing the Report submitted by the Internal Auditors. Suggestions for improvements are considered and the Audit Committee follows up on the implementation of corrective actions. The Audit Committee also invites the Statutory and Internal Auditors for regular meetings to ascertain their views on the adequacy of internal control systems and keeps the Board of Directors informed of its observations from time to time.

Human Resources and Industrial Relations

Your Companys approach to talent development is founded on the belief that learning initiatives must remain synergistic and aligned to business outcomes, emphasize experiential learning, provide an enabling and supportive environment and promote learning ability. Deep functional expertise is fostered through immersion in solving complex customer problems by the application of domain expertise early in managerial careers. Key talent is provided critical experiences in high impact roles and mentored by senior managers. Managers are assessed on your Companys behavioral competency framework and provided with learning and development support to address any areas identified for improvement. As part of your Companys managerial development and capability building strategy, various programmes have been designed and customized to your Companys requirements under these platforms. Your Company has further strengthened its performance management system and its culture of accountability through renewed emphasis on Management by objectives which includes clearly defined goals and outcomes based assessment.

SWOT ANALYSIS

STRENGHTS

i) India takes the lead in global sugar consumption and holds the second position in sugar production.

ii) The sugar sector not only fosters related industries growth but also enhances the well-being of the rural economy in India.

iii) The Indian Sugar Demand has been on Rise Significantly from the past few years.

iv) India is the second largest producer and largest consumer of sugar in the world. Indian Sugar Industry is highly fragmented with private sector, Government undertakings, co-operatives, and unorganized players

WEAKNESSES

i) Cane Prices in the industry are very high as compared to the Global Markets

ii) Government regulates this sector by fixing the price of Sugar which affects the industry profitability.

iii) It is a seasonal based industry and can be affected due to various external conditions which is not in the control of the management.

iv) There are many unregulated players in the Industry which harm the reliability on the other Companies.

OPPORTUNITIES

i) Embracing enhanced farming techniques has the potential to substantially boost yields and efficiency.

ii) upgrades can enhance the utilization of by-products for greater efficiency.

iii) The ethanol and co-gen policy from the Government is a key driver for the Sugar Industry for its Growth.

iv) The industry is continuously making the best use of the byproducts of sugar production, such as bagasse, for renewable energy generation, contributing to our sustainability goals and thereby creating additional revenues.

THREATS

i) The Sector relies significantly on the unpredictable nature of monsoon seasons.

ii) The Cropping Pattern and yield levels are impacted by the climate change and The influence of El Ni?o and other environmental factors on sugar production and cultivation posed additional challenges with the weather anomalies disrupting agricultural cycles, affecting cane cultivation, harvesting, and sugar production.

iii) The Sugarcane prices are driven by the government and last few years saw an increase in FRP year after year.

iv) The interplay between government policies and environmental factors creates a complex operating environment for the company, necessitating a multifaceted approach to risk management and strategic planning.

KEY FINANCIAL RATIOS:

i) Debt Equity Ratio: It decreased from 0.97 (previous year) to 0.82 times during the year due to repayment of loans.

ii) Debt Service Coverage Ratio: It Increased from 2.44 (previous year) to 2.94 during the year due to increase in net profit.

iii) Trade Receivable Turnover Ratio: It decreased from 15.44 (previous year) to 08.77 during the year due to Increase in revenue.

vi) Inventory Turnover: - It increased from 2.72 (previous year) to 3.23 during the year.

v) Current ratio: - It increased from 1.16 (previous year) to 1.28 during the year.

vi) Net Profit Ratio: - It Increased from 6.04 (previous year) to 7.71 during the year due to increase in net profit.

vii) Interest Coverage Ratio: - It Increased from 2.65% (previous year) to 3.11% during the year due to increase in Earnings Before Interest and Taxes(EBIT).

viii) Operating Profit Margin: - It decreased from 10.62% (previous year) to 11.49% during the year due to Increase in operating profit.

ix) Return on Equity Ratio: - It Increased from 1.89 (previous year) to 2.49 during the year due to increased net profit.

DETAILS OF CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE PREVIOUS FINANCIAL YEAR: - Return on net worth is

14.89% during the year under review as Compared to 15.28% in the previous year. The change is due to increase in Net Worth from Other Comprehensive Income Impact as compared to previous year.

Cautionary Statement

Statements made in this Report describing industry outlook as well as Companys plans, projections and expectations may constitute ‘forward looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those either expressed or implied.

For and on behalf of the Board

Indian Sucrose Limited

	(Kunal Yadav)	(Jaitender Kumar)
Date: 30.08.2025	Managing Director	Director
Place: New Delhi	(DIN: 01338110)	(DIN: 08164429)