KRBL Ltd Management Discussions

Global Economic Overview

In 2024, the global economy grew at an estimated 3.2%, reflecting a modest and uneven recovery amid lingering effects of the cost-of-living crisis, tight financial conditions and heightened geopolitical tensions. Advanced economies expanded at a slower pace of around 1.7%, supported by easing inflation and stable domestic demand, while emerging market and developing economies (EMDEs) grew more robustly at approximately 4.2%, despite facing challenges such as high debt burdens, capital outflows, and exchange rate volatility. Global inflation declined from previous highs but remained elevated in several economies. Headline inflation averaged 5.9% globally, with advanced economies recording around 3.5% and EMDEs facing higher inflation at roughly 8.1%. In response, Central Banks largely maintained tight monetary stances to ensure inflation expectations remained anchored, carefully balancing this against the risk of slowing growth. Trade disruptions intensified following the announcement of sweeping U.S. tariffs, triggering repricing of financial assets, currency volatility, and further uncertainty, particularly for economies already under debt distress.

Global Economic Outlook

Looking ahead to 2025, the global economy faces a precarious path, with projected growth slowing slightly to 3.1%. Risks are tilted to the downside, with concerns over broader financial instability, rising debt vulnerabilities in low- income countries, and renewed social unrest due to continued economic pressures and eroded policy buffers. Furthermore, declining international development assistance may force deeper fiscal adjustments in vulnerable economies. Nonetheless, there are opportunities for stabilization. A rollback of trade tensions and greater predictability in trade policies could improve investor sentiment and boost growth. Policymakers must prioritize rebuilding fiscal and financial buffers, coordinating debt restructuring, and implementing structural reforms will be essential to manage volatility and ensure stability. As global inflation is expected to decline further in 2025—to 4.5% globally—central banks will need to fine-tune their policy mix to achieve both price and financial stability.

Source: IMFs World Economic Outlook April25

Indian Economic Overview

Amid the evolving global developments and the recent trade and tariff-related uncertainties, Indias domestic economy continues to show signs of stability and resilience. Key indicators such as higher GST collections and increased E-way bill generation in Q4 FY25 suggest steady growth in economic activity. Consumer sentiment has shown improvement, with RBIs latest survey reflecting a more positive outlook on current conditions and future expectations. Rural demand remains steady, with majority of households surveyed by NABARD reporting increased consumption over the past year. The manufacturing sector is also seeing a revival. RBIs Industrial Outlook Survey highlights improved production, stronger order books, and better capacity utilisation.

Inflationary pressures softened in March 2025. Retail inflation declined sharply from 5.4 per cent in FY24 to 4.6 per cent in FY25, marking the lowest levels in the last six years. The inflation rate in March 2025 marked the lowest year-on-year inflation since September 2019, with food inflation falling sharply. Government interventions and favourable harvests helped moderate food inflation. While the overall inflation outlook has improved, supported by a rate cut and positive food price trends, geopolitical uncertainties warrant close monitoring.

Alongside easing inflationary pressures, the governments strong commitment to fiscal consolidation, evidenced by general government fiscal deficits continuously declining since the COVID-19 peak of 2020-21, has enabled higher availability of domestic savings to finance private sector investment. While white collar hiring witnessed a slowdown, specific sectors such as AI/ML and FMCG remained resilient. The employment subindices of the Services Purchasing Managers Index (PMI) indicate a deceleration in hiring, whereas employment in manufacturing continues to show strength. Formal job creation is rising, as indicated by the growing net payroll additions under the Employee Provident Fund Organisation.

Indian Economic Outlook

Overall, the outlook for the Indian economy appears positive. The economy continues to demonstrate resilience in the face of a turbulent global environment, with the growth momentum supported by easing inflationary pressure, growing consumption demand, fiscal discipline, labour market stability and a resilient financial sector. Investment activity has gained momentum and is expected to strengthen further, driven by sustained capacity utilisation, the governments continued emphasis on infrastructure development, healthy balance sheets of banks and corporates, and easing financial conditions. While merchandise exports may face pressure due to global uncertainties, services exports will likely maintain their resilience.

That said, uncertainties stemming from global developments constitute a key risk for the growth outlook for FY26. More than trade, the perception of prolonged uncertainty may cause the private sector to put its capital formation plans on hold. The private sector and policymakers must be mindful of this risk and act urgently to avoid making uncertainty feed upon itself.

With the right strategies in place, continued domestic reforms, and a strong focus on infrastructure development and job creation, the economy can demonstrate resilient growth despite global uncertainties.

As per IMFs World Economic Outlook released in April 2025, India economy is projected to grow at 6.3% in FY26 as against 6.2% in FY25.

Indian Agriculture Industry overview

The Agriculture and Allied Activities sector has long been the backbone of the Indian economy, playing a vital role in national income and employment. This sector contributes approximately 16% of the countrys GDP for FY24 at current prices and supports about 46.1% of the population. Not only does its performance directly impact food security, but it also influences other sectors, sustaining livelihoods and supporting economic growth. In recent years, the agriculture sector in India has shown robust growth, averaging 5% annually from FY17 to FY23, demonstrating resilience despite challenges.

In the agricultural year 2024-25, record production has been achieved in key crops including rice, wheat, maize, groundnut, and soybean. This record production is largely due to a favourable monsoon and ideal weather conditions. Timely and well- distributed rainfall across major crop growing states significantly improved soil moisture, promoting healthy crop development and creating optimal conditions for cultivation. As a result, there has been a considerable increase in kharif sowing area, along with higher yields in major kharif crops such as rice, maize, bajra, moong, soybean, and sugarcane. Furthermore, the improved soil moisture contributed to an expansion in cultivated area during the rabi and summer seasons. Also, the intermittent rainfall during rabi season further enhanced overall agricultural output.

Assured remunerative prices, improved access to institutional credit, crop diversification, support for sustainable practices, and enhancement in productivity have played a crucial role in the sustained growth observed.

As a major global cereal producer, India accounts for 11.6 per cent of the worlds total output. However, crop yields in the country are considerably lower compared to those of other leading producers, underscoring the need for productivity improvements.

As per Third Advance Estimates of production of major agricultural crops for the agricultural year 2024-25, the country has achieved a record foodgrain production and is estimated at 353.96 million MT, which is higher by 21.66 million MT than the foodgrain production of 332.30 million MT in 2023-24 registering approx. 6.5% increase.

Agriculture exports inched up to $ 52 billion in FY25 from $ 48.9 billion in FY24, registering a modest 6.3% increase. Rice is the Indias top agricultural export in FY25 with export volume of 20.2 million metric tonnes (MMT) worth $ 12.5 billion, nearly one-fourth of overall agri-exports.

Policy initiatives such as Pradhan Mantri Kisan Maandhan Yojana (PM-KMY), Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) and Pradhan Mantri Fasal

Bima Yojana (PMFBY) have been instrumental in offering financial and income assistance to farmers increasing their resilience to weather shocks. Additionally, the Government has implemented a Minimum Support Price (MSP) for 22 kharif and rabi crops that secures prices at one-and-a-half times the all-India weighted average cost of production. Price measures to encourage the cultivation of high-value crops like oilseed have also been implemented, as have incentives for crop diversification, improvements in agricultural marketing, and enhanced resource efficiency.

Despite performing well, the Indian agricultural sector still faces challenges such as the adverse effects of climate change, fragmented landholdings, suboptimal farm mechanisation, low productivity, disguised unemployment and rising input costs.

Source:

1. Economic Survey 2025

2. Financial Express Article - Agri-trade mix bag (26th May 2025)

3. Third Advance Estimates of major crops for 2024-25

Outlook

India sets a record 354.64 MT foodgrain output target for 2025-26, driven by an above normal monsoon forecast. Focus on Kharif crops, resilient strategies, fertilizer supply, and a pan- India awareness campaign to boost productivity and modern farming practices. This is an increase of 0.2% for the current (2024-25) crop year, which itself is an all-time high.

Of the estimated total food grains production in the next crop year, the forthcoming kharif season is likely to contribute 168.88 MT and rest by rabi and summer harvests.

Rice and wheat crops in the next crop year are projected at 151 MT and 117 MT.

The Indian Meteorological Department has predicted above normal southwest monsoon (June-September) rains at 105% of the benchmark - long period average. The country receives over 75% of annual rainfall during June-September period.

Source:

Financial Express Article (8th May 2025)

USDA World Grain Trade Report, June 2025

Global Rice Industry

In 2024-25, Global rice trade expanded & rice prices moderated due to upward estimates of rice production and rice stocks due to favourable weather conditions in major rice producing countries. In 202425, rice production is estimated at 537.7 million tons, higher by 14 million tons from previous year. India emerged as the largest rice producer with estimated rice production of 149 million tons in 2024-25, higher by 10 million tons from previous year.

Global consumption in 2024-25 stood at 532.6 million tons higher by 8 million tons, mainly driven by India (4.5 million ton consumption increase) and other countries.

India continued to be the top exporter contributing nearly 40% of the total global rice exports despite export restrictions in first half of the year.

Outlook

Global rice production is expected to increase by 1.0 million tons in 2025-26 new record of 538.7 million tons. The biggest year-to-year increase is expected for India, the second year that it is the top producer with record high rice production supported by government policies. China is forecasted to slightly increase production. Together these two producers account for more than half of global rice production. Larger crops are also forecasted in Bangladesh, Burma, and the Philippines.

World rice consumption is expected to increase by 6.1 million tons to a record 538.8 million tons. Consumption in India, the second- largest rice-consuming country, is projected to reach a record high at 125.0 million tons. The Government of India continues to allocate rice in public distribution programs, with a small quantity allocated for ethanol production. Consumption in China, still the largest riceconsuming country, is projected nearly unchanged, as feed use remains low and coarse grain prices are more affordable. Consumption in Sub-Saharan Africa, South Asia, and the Middle East is forecast to see continued growth with rising populations.

Global stocks are forecast to be virtually unchanged at 185.1 million tons. China (57 percent) and India (23 percent) together account for 80 percent of global stocks because of the governments public stockholding programs. Overall, stocks in major rice-producing countries are forecast to rebound with gains mainly in China and Thailand. India is forecast to remain the largest rice exporter in 2026 with exports projected at a record 24.5 million tons, up 5 lakh tons from the previous year and accounting for nearly 40 percent of global rice trade. Higher trade is driven by a larger crop and ample stocks, keeping prices the lowest among major exporters.

Source: USDAs May 2025 report on World Grain Market & Trade

Indian Rice Industry Overview

With record rice production of 149 million ton, India emerged as the largest producer of rice in the world in 2024-25, accounting for slightly more than one-fourth of global rice production. In 20232024, India rice production is estimated at around 138 million tonnes.

Earlier to control domestic surges in rice prices, the Indian government had put certain measures in place, like banning the export of white non- Basmati rice, imposing a 20% export duty on the export of par-boiled non-basmati rice and minimum export price (MEP) on Basmati exports in 2023-24. The export of broken rice was banned since 2022-2023. This brought down rice prices in domestic and export markets.

In 2024-25, record rice production helped surplus rice stocks and thus helped in rice price moderation and removal of all export restrictions on rice in second half of the year and as a result India rice export surged and global rice prices moderated.

Indian Basmati Rice Industry Overview

India produced around 12 million tonnes of Basmati rice in 2024-2025 and of that, 6 million tonnes were exported, which is 15% higher than the previous year sign. A driving force for this growth is the rise in demand for long-grain speciality variants, known for their quality aroma and flavour. The increasing preference for brown Basmati rice is also boosting growth in the market.

As per the Kantar Household Panel MAT report (Dec 2025), at present, around 42% of urban households in India consume Basmati rice, of which only 19.2% consume packaged Basmati rice. This indicates strong growth of packaged Basmati rice in the domestic market. Market expansion is further aided by the adoption of Basmati rice in the food and beverage sector to prepare Biryani, Desserts and Pilaf, to name a few. There is a surplus demand for Basmati rice in various regions across the globe, especially in the Middle East, giving the markets future a positive outlook.

Indian Rice Industry Outlook

Owing to above normal monsoon forecast in the upcoming monsoon season, India is expected to have record 151 million ton of rice production, slightly higher target set by Indian government that previous year production. Consumption of rice continues to grow with growing population and through rice distribution under Governments PDS program.

Indian Basmati Rice Industry Outlook

A highlight of the Indian Basmati rice industry is the excess demand from key markets in the Middle East, USA and UK. The demand for Basmati is expected to remain stable throughout the marketing year 2025-2026.

The USDA report predicts an output of 13 million tonnes of Basmati rice in 2025-2026, with acreage expected to increase from 2.4 million hectares to 2.5 million hectares.

Even the domestic demand for packaged Basmati rice is expected to remain steady owing to consumption preferences shifting from loose to packaged rice resulting from growing urbanisation, quality assurance, increasing household consumption and expenditure trends

Company Overview

KRBL Limited enjoys premier status in the Indian Basmati Rice Industry and has been a leader in the segment for over a century. It is Indias first integrated rice company and its primary operations include manufacturing and marketing rice products. The Companys success is a result of responsible operations that have been executed efficiently, complemented by innovative manufacturing and a proactive approach to identifying and making the most of new opportunities.

As KRBL evolved over the years, its product portfolio has widened to cater to consumers across geographies. The dietary market is consumer-driven and offers KRBLs products a source of steady demand in India and the Company aims to cater to international markets, too.

KRBLs leadership features stalwarts of the Indian agri-product industry like Mr. Anil Kumar Mittal (Chairman & Managing Director), Mr. Arun Kumar Gupta and Mr. Anoop Kumar Gupta (Joint Managing Directors). Their leadership steers the Company towards success, supported by a team of qualified professionals. KRBL has made its presence felt in every aspect of the entire value chain, from seed development and multiplication to contact farming, production and marketing. The Company does not rest on its laurels and is dedicated to enhancing offtake, widening the reach and deploying technologies that bolster cost-competitiveness.

Overall Key Strengths

KRBL is a leading exporter of branded Basmati rice from India catering to consumers in more than 90 countries across six continents.

The Company enjoys revenue diversification across multiple sources, contributing to its financial stability.

Owns the worlds largest rice milling plant in Punjab with a combined capacity of 207 tonnes per hour paddy processing and 233 tonnes per hour rice processing capacity. The Company has largest contact farming network coverage for rice.

The Company maintains a comfortable capital structure and demonstrates strong debt protection metrics, ensuring financial strength and stability.

Domestic Market

With strong demand in the domestic market, KRBL is well- positioned for growth and holds a marketleading position across various distribution channels, including general trade, modern trade and e-commerce. Growth prospects are further enhanced by the transition from loose to packaged rice, expanding distribution reach, introducing new products and exploring selected non-Basmati rice varieties.

Exports

KRBL maintains a strong presence in key export markets, solidifying its position as a leading player in the global rice trade. The Company is actively pursuing efforts to stimulate growth in new markets by diversifying its export footprint and expanding its customer base.

Expansion

By establishing new plants at strategic locations, KRBL is poised to meet growing demand and make inroads into the non-Basmati rice segment to expand its product portfolio and market reach. A new plant in Karnatakas Gangavathi region is under construction to tap non-basmati rice market.

New Products

Company is continuously innovating in existing product categories and exploring opportunities in new products segment. Last year, company has forayed into Biryani Masala. In current year, expanding its basket, company has launched Healthy Edible Oil & Poha.

Key Strategic Priorities

Increasing consumer centricity

Increasing total addressable market

Focus on innovation

Building best in class functional capabilities

Digitisation across value chain

Strong Financials

KRBL prioritises maintaining healthy margins and has ample capital availability, positioning the Company favourably for future growth. Furthermore, KRBL takes pride in being a long zero-debt company that ensures financial security and flexibility.

Companys Renewable Power Generation Capacity

KRBL has established Renewable Power Division to produce renewable energy and to contribute for the environment. Company uses the husk generated during paddy hulling to generate power which makes the Companys manufacturing plants self-reliant for power. Company has also established solar plant and wind plants to generate green renewable energy at various locations.

Installed Power Generation Capacity
Total Wind power project capacity	112.25 MW
Total Solar power project capacity	17 MW
Total Biomass capacity	17.59 MW

Financial Performance

In FY25, the Company recorded a total income of H5,65,510 Lakh, grew by 3.2% compared to the previous year. EBIDTA of the Company stood at H73,566 lakh in FY25 compared to H89,925 Lakh in FY24.

Summary of Consolidated Income Statement

(Rs. in Lakh)

Description	FY25	FY24
Revenue
Revenue from Operations	5,59,381	5,38,469
Other Income	6,129	9,696
Total Income	5,65,510	5,48,165
Expenses Material Cost	4,21,441	3,99,992
Material Cost / Total Income (%)	74.52%	72.97%
Gross Profit	1,44,069	1,48,173
Gross Profit Margin (%)	25.48%	27.03%
Employee Benefit Expenses	17,446	14,885
Depreciation & Amortization Expense	8,110	7,937
Other Expenses	53,057	43,363
Total Expenses	5,00,054	4,66,177
Total Expenses / Total Income (%)	88.43%	85.04%
EBITDA	73,566	89,925
EBITDA Margin (%)	13.01%	16.40%
Finance Cost	1,455	2,410
Profit Before Tax	64,001	79,578
PBT Margin (%)	11.32%	14.52%
Tax Expense
Current Taxation	16,362	21,066
Deferred Taxation	34	-1,074
Net Profit after Tax	47,605	59,586
Other Comprehensive income/ (expenses)	(209)	(179)
Total Comprehensive Income	47,396	59,407
Comprehensive Net Profit / Total Income (%)	8.38%	10.84%

Segment-wise Performance

The Companys Consolidated Revenue from Operations in FY25 is at H5,59,381 Lakh, grew by 3.9% from previous financial year. In FY25, the Companys domestic business remained resilient & recorded revenue of H4,02,616 lakh marking a growth of 1.9% contributed by volume growth. In FY25, Export business recorded revenue of H1,47,302 lakhs, grew by 10.7%.

(Rs. in Lakh)

Description	FY25	FY24
Agri Segment
Export Sales	1,47,302	1,33,122
Domestic Sales	4,02,616	3,95,017
Power Segment	9,463	10,330
Total	5,59,381	5,38,469

Key Financial Ratios

(Rs. in Lakh)

Description	FY25	FY24
Operating profit margin (%)1	11.70%	15.23%
Net profit margin (%)1	8.51%	11.07%
Return on net worth (%)2	9.43%	12.48%
Return on Capital Employed (%)2	11.37%	14.87%

(Rs. in Lakh)

Description	FY25	FY24
Inventory3	3,88,485	4,45,071
Trade Receivable4	46,777	30,308
Trade Payable	15,136	12,934
Inventory turnover ratio	1.96	2.27
Debtor turnover ratio	14.51	18.31

(Rs. in Lakh)

Description	FY25	FY24
Debt Equity ratio5	0.08	0.11
Current ratio	6.26	5.40
Interest Coverage ratio6	44.99	34.02

Reason for Change in the Ratio:

1) Operating Profit margin and Net profit margin are lower in FY25 due to lower Other Income, higher proportionate employee cost, higher freight on sales and other expenses.

2) Return on Net Worth and Return on Capital Employed declined due to lower margins as explained in point 1 and increased fund invested.

3) Inventory value is lower due to lower per unit carrying cost. As basmati paddy crop season is from October to December, closing Inventory as on 30th September has been considered for calculating Inventory turnover ratio.

4) Trade receivables are higher mainly on account of higher export receivables.

5) Debt-equity ratio is lower due to lower borrowings and higher shareholders funds in current financial year.

6) Interest Coverage ratio is higher mainly due to lower finance cost in current year partially impacted by lower EBIT in current year.

Formula Used for Calculation of the Ratios

Operating profit margin (%)	Profit before interest, taxes and exceptional items/Revenue from operations
Net profit margin (%)	Profit after tax/Revenue from operations
Return on net worth (%)	Profit after tax/Average Equity
Return on capital employed (%)	Profit before interest, taxes and exceptional items/ (Total Equity + Borrowings + Lease liability + Deferred tax liability)
Inventory turnover ratio	Net sales/Average of opening and closing inventories
Debtors turnover ratio	Net sales/Average of opening and closing trade receivables
Debt equity ratio	Debt (Borrowing and lease liability)/Equity
Current ratio	Current assets/Current liabilities
Interest coverage ratio	Profit before interest, taxes / Finance costs

Opportunities

In the dynamic global market landscape, KRBL Limited recognises the significance of identifying and navigating the opportunities and threats that shape its industry. By analysing emerging opportunities and potential challenges, KRBL Limited remains proactive in adapting its strategies and capitalising on favourable trends. With a keen focus on continuous improvement and agile decision-making, the Company stands ready to leverage opportunities and mitigate threats, ensuring sustained growth and resilience in an ever-evolving business environment.

Consumption Shift

The shift from loose to packaged rice in both Basmati and non-Basmati segments in the domestic market presents a significant opportunity. This transition, driven by consumer preferences for convenience and quality assurance, is further accelerated by the ongoing urbanisation of the Indian population. As more people migrate to urban areas, the demand for packaged rice is expected to rise, offering the Company the chance to further tap into a growing market segment by providing innovative packaging and meeting the evolving needs of urban consumers.

Growing Demand

The demand for rice, both domestically and internationally, is growing. With an expected CAGR of 3% from 2023 - 2028, this global rice market growth is driven by several factors, including population growth, rising incomes and changing consumer preferences.

Quality Assurance

For consumers, its difficult to identify basmati rice which are safe to consume and free from any adulteration. As consciousness towards health increases, it provides company to penetrate deeper in the market.

Government Support

The Indian government provides several subsidies and other support to the rice industry. These subsidies help reduce production costs and make it more profitable for farmers to grow rice. The government also provides technical assistance to farmers and helps to improve the quality of rice production. Government initiatives such as the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), the Pradhan Mantri Fasal Bima Yojana (PMFBY), the Pradhan Mantri Krishi Kalyan Yojana (PMKKY), the National Mission for Sustainable Agriculture (NMSA) and National Food Security Mission (NFSM) - have all helped boost production while supporting farmers and food security.

Exports

India enjoys a geographical advantage for Basmati production and export. Compared to other exporters such as Thailand and Vietnam, Indias non-Basmati rice prices are lower. As domestic food inflation eased out and having surplus rice stock in country, Indian government has lifted all restrictions on export of rice which provide larger rice export opportunities to the Company.

Risks and Concerns

KRBL Limited strongly emphasises implementing a comprehensive system for managing risks, aiming to achieve its objectives while ensuring the organisations sustainability. Company management actively identifies, analyses, assesses, manages and controls risks that may impact operations. This process is led by the Companys senior management, with support from various committees that regularly review and monitor risks in line with governance standards. KRBL Limiteds risk management approach aligns with its strategy and contributes to its successful implementation.

S. No.	Category	Type of Risk	Risk Definition	Mitigation Controls
1	Operational	Paddy Procurement	Erratic weather conditions and limited availability of information about paddy sowing may result in unfavorable price movements, paddy availability and paddy quality thus affecting revenue and margins.	Conducting thorough field surveys on timely basis.
2	Strategic	Product Concentration	Product concentration largely in rice may adversely impact revenues and profitability.	Basmati is a staple so end consumer demand is relatively stable; For futher mitigation, Product Diversification through Non-Basmati segment. Category Additions like oil, masalas, rice based products to portfolio are being undertaken.
3	Strategic	Channel Partner Concentration	High dependency on a single distributor/dealer in some key markets.	Diversification of distributor base to reduce concentration risk; Regular performance and credit checks on key distributors; Structured exit and transition plans for distributor replacement; Clear contractual agreements with performance clauses.
4	Operational	Competition	Loss of market share due to competitive pressure.	Significant barriers to entry currently exist; Processes and Procedures are in place where we are monitoring the competitors on regular basis in the form of pricing/ quality/ promotional offers etc. and basis that we are taking counter actions.
5	Operational	International Trade Disruptions	Geo- Political crisis causing supply chain disruptions.	Diversify export markets to reduce dependence on specific countries; Close monitoring of geopolitical developments and responsive logistics planning; Trade insurance and currency hedging to mitigate financial impact.
6	Operational	Human Resource Management	Loss of relative capability to attract, develop and retain talent could affect growth plans.	The Company is working on department structure keeping 2 years in consideration. Every new hire is as per the structure.
7	Financial	Increase in Costs	Companys ability to compete with its primary current competition - unorganised sector - is critically dependent on its price competitiveness. Uncontrolled cost increases could affect its ability to complete effectively.	Close Monitoring of Expenses and Cost Reduction Initiatives.
8	Financial	Foreign Exchange	Unfavorable changes in foreign exchange rates.	The Company actively manages foreign exchange risk through a strong hedging policy, with unhedged exposures reported weekly to the Chairman and quarterly to the Board.
9	Legal and Regulatory	Regulatory Risks	Unfavourable Government Regulations in customer / competitor countries or India may affect demand / ability to supply, respectively.	Proactive monitoring of regulatory changes; Regular engagement with industry bodies and regulators.
10	Legal and Regulatory	Material Legal Cases	Any adverse action or judgement on the ongoing material litigations/ allegations may cause financial or reputational loss.	Maintain a legal risk register with status and exposure tracking; Proactive risk mitigation.
11	Legal and Regulatory	Compliance of Various Laws	Non-compliance with any law including Corporate law, FEMA, Labour Laws, Tax Laws, Food Safety and Legal Metrology, Establishment laws etc. could result in levy of penalty, adverse orders and hamper the corporate reputation and operations of Company.	Robust compliance management system; Define accountability through compliance ownership matrix; Regular employee training on statutory obligations.
12	Operational	Cyber Security and IT Risk	Cyber Security and IT risk could lead to financial loss, disruption or damage to the reputation of the Company from failure of its information technology systems.	Implementation of multi-layered cybersecurity measures to safeguard against data breaches and cyber threats.
13	Operational	ESG and Sustainability Risks	Cultivation of paddy requires considerable water usage, contributing to environmental water scarcity concerns.	Collaborated with the Indian Agricultural Research Institute (IARI), PUSA for developing high-yield, disease-resistant and climate-resilient rice varieties.
14	Regulatory/ Operational Risk	Product Quality	Maintaining Quality, standard and safety of finished products.	Hazard Analysis and Critical Control Points (HACCP) practices at Units. To meet product quality and safety requirements, the Company has ensured compliance with various certifications standards.
15	Financial	Credit Risk from Large Customers	High exposure to a few large customers increases the risk of credit loss due to delayed payments or defaults.	Robust credit assessment and approval processes; Defined credit limits based on customer risk profile; Regular ageing analysis and proactive followups; Credit insurance and dealer financing where applicable.

Human Resources

At KRBL Limited, a core part of the business strategy is to provide an environment where all employees feel enabled, empowered, and committed. The Companys HR practices are aligned with industry best practices and have created a talent base, which helps reinforce leadership across countries. These practices enable it to seamlessly integrate professionals from different socio-economic backgrounds, countries, and cultures and invest in their formal and informal training. The Company focuses on diversity hiring and onboarding new talent from top FMCG organisations.

During the reporting year, KRBL Limited strived to strengthen its employee engagement across levels by providing an enriching work environment; it undertook HR transformation projects at various levels and maintained an ongoing dialogue with its people. During the year, the Company celebrated Independence Day, Diwali, Holi, and International Womens Day, among other events. The Company has always prioritised employee safety. Various safety training sessions were conducted at the head office and plants, including POSH training, fire safety training, and cybersecurity training, to name a few.

KRBL Limited believes its people are fundamental to great products, services and reputation. Therefore, it constantly endeavours to build a workforce of strong teams that include passionate, dedicated and highly- skilled professionals at the corporate and plant levels. The Company constantly introduces better systems and processes to enhance employee productivity and has conducted various training sessions for the overall skill development of employees.

KRBL Limited has been working towards developing, grooming and training its employees for next-level roles. It is inducting high-calibre talent to ensure the Company has the right people, teams and skills to grow its business. Its HR approach ensures the overall growth of an employee. The Company strives to ensure that its employees are well-rounded, feel safe in the work environment and are motivated and productive in their personal and professional lives.

The Companys total employee strength as of 31 March, 2025 stood at 2,995.

Information Technology

Information technology (IT) has been an integral part of the process at KRBL and has been one of the key driving forces behind the growth achieved. Effective management of the Companys vast network of distribution channels is facilitated by its use of top- of-the-line technology. The Company is consistently scaling up its IT investments to upgrade technological processes and evolve infrastructure and IT security, which can maximise the potential of the countless growth opportunities in the digital universe. Various business processes have been streamlined across the organisation using various Applications/Tools successfully and integrated with company ERP. The Company adheres to e-waste regulations, ensuring proper disposal and recycling practices contributing to environmental sustainability. In addition to cybersecurity measures, our Cyber insurance coverage provides financial protection and assistance in the event of cyber incidents, mitigating potential financial losses and liabilities.

Internal Control Systems and Adequacy

The Company prioritises transparency, ethics, and good corporate governance and has established strong internal controls integral to its growth process. It maintains proper accounting control and monitoring of operational efficiency; its policies ensure strict compliance with laws, and it works towards maintaining reliable financial and operational information. KRBL Limiteds Audit Committee is consistent in its periodic review of all audit reports, audit plans, audit findings of note, adequacy of internal controls and compliance with Indian Accounting Standards (Ind AS). Over and above this, the Audit Committee proposes improvements when necessary.

Cautionary Statement

Readers are advised to kindly note that the above discussion contains statements about risks, concerns, and opportunities, which are valid only when making the statements. Various factors, known or unknown, expected or otherwise, may influence the financial results. These statements are not expected to be updated or revised to address any changes in the underlying presumptions. Readers may appreciate the context in which these statements are made before using the same.