M Lakhamsi Industries Ltd Management Discussions

Your company has acquired a proprietor concern namely M/s. M. Lakhamsi and Co. in the exciting and high growth partnership space. M/s. M. Lakhamsi and Co. is engaged in the business of Exports of sesame seeds, castor oil and seeds, peanuts, sunflower seeds, spices, wheat flour, rice, oil cakes, meals, Whole / Ground Spices, Seeds, Kernels, Oil Seeds, Pulses based products.

Industry Structure and Developments:

India is one of the leading producers and exporters of oilseeds, spices, pulses, and agro-based processed products. The global demand for agricultural commodities, especially for edible oil seeds like sesame, castor, and groundnuts, as well as spices and grains, has remained strong due to increasing awareness of healthy food habits, natural oils, and plant-based protein sources.

Indias agro-export sector benefits from favorable agro-climatic conditions, a large agricultural base, and growing global demand for organic, natural, and non-GMO products. Government initiatives such as ‘One District, One Product (ODOP), Agri Export Policy, and incentives under MEIS/RODTEP schemes have further bolstered growth.

Business Overview

Your Company is primarily engaged in the export of a diversified range of agricultural commodities, including but not limited to:

Oil Seeds: Sesame seeds, castor seeds, groundnuts, sunflower Oils: Castor oil and derivatives Grains and Cereals: Wheat flour, rice Spices: Whole and ground spices Pulses and Pulse-Based Products Value-Added Products: Kernels, cleaned and sorted seeds, processed grains

The Company focuses on delivering high-quality, processed, and hygienically packed products that meet international food safety and quality standards.

Financial and Operational Performance

During the financial year under review, the Company continued to maintain stable operations despite global headwinds such as shipping constraints, inflationary trends, and foreign exchange volatility. A consistent focus on quality assurance, diversified sourcing, and efficient logistics helped mitigate these challenges.

Revenue from operations increased during current financial year 2024-2025. The revenue generated from operations amounted to INR 10815.88 Lakhs in F.Y. 2024-25 as compared to F.Y. 2023-2024 in which revenue generated amounted to INR 10477.71 Lakhs.

Opportunities and Threats

Opportunities:

Rising global demand for plant-based and sustainable food products

Expansion into new geographies and customer segments

Increasing preference for organic, non-GMO, and traceable agricultural products Value addition through modern processing, packaging, and branding

Threats:

Fluctuating commodity prices and exchange rates Climate change impacting agricultural output Stringent international food safety and phytosanitary regulations Geopolitical tensions and trade restriction

Internal Control Systems and Their Adequacy:

The Company strongly believes that a robust internal control mechanism is a prerequisite to ensure that an organization functions ethically, complies with all legal and regulatory requirements and observes the generally accepted principles of good corporate governance. To enable this, the Company has established a strong internal control system for the Company, which is comprised of policies, guidelines and procedures to ensure the orderly and efficient financial and business conduct.

The Company has adopted strong internal control systems backed by constant reviews and upgradation. Internal Audit, Statutory Audit by external agencies and the Audit Committee, look into the internal control aspects and further advice on the corrective measures as and when required.

Human Resource/Industrial Relations:

The Company values and appreciates the dedication and drive with which its employees have contributed towards improved performance during the year under review. The relations with workers and staff are cordial during the year under review. All issues pertaining to staff matters are resolved in harmonious and cordial manner.

Disclosure of accounting treatment:

Financial Statements are prepared as per Ind AS duly following the principles laid in the Ind AS. Management has not adopted any other standards other than the prescribed Accounting Standards in preparing the financial statements.

Outlook:

Global demand for Indian agricultural exports is expected to remain positive, driven by evolving food consumption patterns, health consciousness, and supply chain diversification strategies of international buyers.

Your Company is committed to expanding its market presence, introducing value-added product lines, and adopting sustainable practices across operations. Investments in technology, process automation, and digital traceability are also on the roadmap.

The Management remains confident about the long-term prospects of the business and will continue to focus on innovation, efficiency, and customer satisfaction.

Cautionary Statement:

The statements in this section describe the Companys objectives, projections, estimates, expectations and predictions, which may be “forward looking statements” within the meaning of the applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other incidental factors.