Mavens Biotech Ltd Management Discussions

Pursuant to Listing Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015 aligned with Companies Act, 2013, the Management Discussion & Analysis Report for the year under review is given below;

Background: -

The Management Discussion and Analysis Report sets out the developments in the business, the Companys performance since the last Report and the future outlook. This Report is part of the Directors Report and the Audited Financial Statements, forming part of the Annual Report. However, certain statements made in this Report relating to the projections, outlook, expectations, estimates, etc., may constitute "forward looking statements" within the meaning of applicable laws and regulations and may differ from actual. Several factors could make a significant difference to the Companys operations, including climatic conditions, economic conditions affecting demand and supply, government regulations, revision in government policies, taxation and natural calamities over which the Company does not have any control.

The Union budgets strategic tax stimulus to boost economic activity

One of the biggest highlights of the 2025 Union Budget was the governments recognition of the need to bolster consumer spending—particularly among the middle-class demographic—leading to the implementation of a significant personal income tax reduction. Several indicators suggested stress among consumers due to high inflation and economic uncertainty until December 2024, including the observed slowdown in growth in the fast- moving consumer goods sector, in which urban areas saw a modest 2.8% growth in the July to September quarter of 2024, while rural areas experienced a more robust 6% growth.

The potential impact of global trade uncertainty

At the time of writing, India faces an ad valorem baseline tariff rate of 10% on its goods exports to the United States. Since this rate is applicable over and above the 2023 trade-weighted average MFN tariff rate of 2.2%, the effective trade-weighted average MFN tariff rate is 12.2%.12 After the 90-day pause, the remaining potential differential tariff rate on India of 16% (which varies across countries) could take the effective trade-weighted average MFN tariff rate to 28.2% on Indias exports to the United States by the end of the fiscal year.

The additional 26% total reciprocal tariff rate on Indias exports to the United States is creating uncertainty, and all eyes are on the ongoing negotiations between the two nations. These negotiations may determine the final reciprocal tariff rate, perhaps taking the trade-weighted average MFN tariff rate anywhere between the current 12.2% and the potential 28.2%.

Furthermore, the effective tariff on different commodities will vary. This is important because some products, such as petroleum products, semiconductors, pharmaceuticals, and gold, have been exempted for now. Investigations are underway into some of these products, which could potentially lead to new tariffs, further adding to the uncertainty.

It was noticed that Indian goods exported to the United States are more price-elastic (-0.7, a 1% increase in import tariff rates of the United States leads to a 0.7% fall in Indias exports to the United States). On the other hand, Indian goods imports are less so (-0.08, a 1% increase in Indias import tariff leads to a 0.08% fall in Indias imports from the United States, lower than the impact on exports). This helped in estimating the net impact of tariffs and depreciation. Assuming 3% depreciation across all scenarios helped assess the net impact of changing tariffs only.

Optimistic scenario

There will likely be more clarity in the trade policies by the end of 2025, improving business sentiment. Investment decisions will be made factoring in the continued volatility in trade and disruptions in supply chains. Gradually, the global economy will rebound over the next year.

In India, political stability, policy continuity, stimulus, and strong reforms increase economic activity, thereby boosting investor confidence in the strengths of domestic demand. The US Federal Reserve may go for fewer rate cuts as inflation may rebound. Economic stimulus programs in China help the country recover in the short run, leading to better trade and investment.

Crude oil prices remain range-bound (Brent prices at around US$70 per barrel) due to a balanced demand from emerging nations, higher global uncertainties, and a higher supply of crude oil from the United States.

The Reserve Bank of India eases monetary policy twice or thrice this year while maintaining a vigil on unsecured lending. This boosts credit growth and consumer spending. The dollar price index appreciates initially but then remains range-bound. This could cause marginal volatility in the Indian rupee, but the countrys central bank is vigilant against fluctuations.

The Indian governments efforts to boost consumer spending result in strong spending and private investment growth, leading to buoyant revenues and higher dividends from public sector undertakings and the Reserve Bank. However, the government ramps up capital expenditures on key infrastructure projects.

Pessimistic scenario

Trade-related uncertainty continues, and there are shocks to supply chains. Regions with ongoing conflicts see prolonged economic uncertainty. Because of political and policy changes, the United States and Europe may enter stretches of recession, and investment and trade scenarios worsen. Chinas economy slows down, and supply disruptions cause high inflation. Monetary policy remains tight in both the West and India.

Market scenario in India

The projected growth rate for the trading business in India in 2024 is expected to be around 6.5% according to reports by the United Nations Trade and Development (UNCTAD. The five main reasons for international trade takes place are differences in technology, differences in resource endowments, differences in demand, the presence of economies of scale, and the presence of government policies.

Market Environment:

Mavens Biotech Limited is engaged in the business of trading in biotech product and commodities & its allied products and dealing other concern activities with an excellent track record of growth in the Indian domestic market. The Company adherence to strong business ethics and transparent corporate policies, with a stable political environment, this is probably the most conducive period for a steady pace of implementation of policy reforms. The commodity market in India is over 100 years old but was officially established through a legal trading mechanism in the year 2003. As every country relies on raw materials to grow, the commodities markets have a special place in driving a countrys economy and allowing investors to profit along the way.

Review of Operation:

The Company operates mainly in Indian Market. The management of Mavens Biotech Limited presents the analysis of performance of the Company for the Financial Year 2024-2025 and its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic and other developments.

During the year under review, the Companys the total revenue of Rs. 5.91 lacs. Outlook for 2024-2025, Your Company is planning to develop business through diversification mixed with sustain efforts in the present business line. The Board is hopeful for achieving good income & profitability in years to come.

Business Segment:

During the year, the Company is into the business of trading.

Market Challenges:

a) High Tariffs and Protectionist Policies

b) Price Sensitivity

c) Infrastructure

d) Power of States

Opportunities and Threats:

Opportunities

a) Favorable Government regulations

b) Favorable macro-economies and micro-economies conditions

c) Niche for growth

Threats

a) Competition in the Indian market from large traders

b) Imports from China and other cost effective labour countries

c) Geographically located in East India and presently not covering pan India

d) Increase cost of operations

e) Increase in cost of logistics

f) Retention of top talented team members

Business leaders need to position their organizations for uncertainty:

This positioning can involve cultivating an insights edge, anticipating and adapting with scenario planning, developing a portfolio of strategic actions, and building geopolitical muscle. Businesses can also embrace cooperation to contribute to, and help shape, the discourse on the evolution of global connections.

Risk and Concerns:

Both local and foreign stakeholders are being impacted by the significant price changes that are occurring on the Indian commodity market. These fluctuations are affecting a variety of commodities. The fluctuations in prices have substantial repercussions for the economy as a whole, as well as for commercial traders, manufacturers, and consumers.

Uncertainties in business offer opportunities and downside risks. Consequently, the Company recognizes the importance of well-structured system to identify and manage the different elements of risk.

Pressure on margins, high manpower and infrastructure cost, availability of substitutes, higher overheads, are some factors which could impact adversely especially as we strive to tap into the competitive markets.

Basis of Preparation and Presentation of Our Financial Statements:

The Financial Statements have been prepared and presented under the historical cost convention, unless otherwise specifically stated, on the accrual basis of accounting and comply with the applicable accounting standards referred to in the Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

Internal Control Systems and Their Adequacy:

The Company has adequate internal control procedure commensurate with its size and nature of the business. The nature control system is supplemented by extensive internal audit s regular review by the management and well documented policies and guidelines to ensure reliability of financial and all other records to prepare financial statement and other data. Moreover, the Company continuously upgrades these systems in line with best accounting practices. The Company has independent audit system to monitor the entire operation and the audit committee of the Board reviews the findings and recommendation of the internal auditors.

Human Resources:

Human Resources Development envisages the growth of the individual in tandem with the organization. It also aims at the Up-liftment of the individual by ensuring an enabling environment to develop capabilities and to optimize performance.

Your Directors want to place on record their appreciation for the contribution made by employees at all levels, who through their steadfastness, solidarity and with their co-operation and support have made it possible for the Company to achieve its current status.

Your company recognizes the value of human resource, therefore, the human resource policies are being framed in such fashion that they not only aim to achieve the organizational goal but also recognize, appreciate and develop the individual interest of the employees. The Human Resource Development policies of the company are being framed so that it is in the best interest of the organization as well as employees of the company.

Material Developments in Human Resources:

Our professionals and employees are our most important assets. We believe that the quality and level of service that they deliver is a huge contributing factor in growth and development of the Company. Further, for better management certain alterations were made in the top management and other hierarchies in the Company.

Disclosure of Accounting Treatment:

In preparation of it financial statement no accounting treatment different from that prescribed in the accounting standard has been followed.

Discussion of Financial Performance:

Directors of your Company are very hopeful to build up the performance of the company and post better results in the forthcoming financial year and to add value to the shareholders. The Company is hopeful of improving its turnover and bottom line and hopeful of posting better revenue ahead. Financial Highlights with respect to Operational Performance is as under:

Particulars	2024-2025	2023-2024	2022-2023
Profit Before Tax	(10.72)	4.110	1.853
Profit after Tax	(41.72)	4.110	1.853
Earning Per Share (Rs.)	(0.004)	0.004	0.002

 

. Particular	F.Y. 24-25	F.Y. 23-24	Numerator	Denominator	Variation in %	Reason
1 Current Ratio	0.29	0.58	Current Assets	Current Liabilities	-49.79	Due to increase in Current Liabilities during the year.
2 Debt Equity Ratio			Total Debt	Shareholders Equity	NA	NA
3 Debt Service Coverage Ratio	NA	NA	Net Operating Income	Total debt Service	NA	NA
4 Return on Equity Ratio	-0.08	0.01	Net Profit After Tax	Shareholders Equity	-1,198.99	Due to Company has incurred losses during the year.
5 Inventory Turnover Ratio	NA	NA	Cost of Goods Sold	Average Inventory	NA	NA
6 Trade Receivale Turnover Ratio			Average Receivable*12	Income from Operation	NA	NA
7 Trade Payable Turnover Ratio	NA	NA	Avereage Payable*12	Net Credit Purchases	NA	NA
8 Net Capital Turnover Ratio			Sales	Net Assets	NA	NA
9 Net Profit Ratio	-7.06	0.43	Net Profit After Tax	Total Revenue	-1,753.31	Due to Company has incurred losses during the year and revenue is also declined.
10 Return on Capital Employed	-0.02	0.01	Earnings before Interest and Tax	Capital Employed	-382.51	Due to Company has incurred losses during the year.
11 Return on investments		0.02	Differce in amount of investments	Initial Investments	-100.00	This is due to there is no additonal investments made by the Company during the year.

Cautionary Statement:

Statements made in the Management Discussion and Analysis Report describing the Companies objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement important factors that influence the Companys operations, include global and domestic supply and demand conditions. We undertake no obligation to publicly update any forward looking statements, whether as a result of new information, future events or otherwise