Mawana Sugars Ltd Management Discussions

SUGAR BUSINESS Sugar Season 2024-25

Sugar season 2024-25 started with the Opening stock of 78 Lac Tons. All India Production of sugar is estimated to be around 264 Lac Tons (against initial estimates of 310 Lac Tons), anticipated domestic consumption of 280 Lac Tons and Exports of 8 Lac Tons. As a result, the closing stock of sugar as on September 30, 2025 is estimated to be around 54 Lac Tons which is sufficient for 2 months consumption. [Source: Indian Sugar & Bioenergy Manufacturers Association (ISMA)].

Sugar selling price during April 2024 to March 2025 moved in the range of Rs.3760-4100-4080/qtl. The price is expected to move in the range of around Rs.4000-4175/qtl levels during April - September,25 unless there is revision in the Government Policies relating to Minimum Support Price (MSP), revision in production numbers and Exports.

World sugar prices will continue to be driven by Crude (Sugar/ Ethanol Parity), Currency, tariff uncertainty and Indias Export policy.

DISTILLERY BUSINESS

The average All-India blending percentage touched 18.36% in the tender year 2024-25 till March 31,2025, OMCs have procured 369 Cr. Ltrs against the total requirement of 1054 Cr. Ltrs. Within this procurement, the sugar sector contributed 181.5 Cr. Ltrs, while the grain sector contributed the remaining 187.5 Cr. Ltrs. [Source: Indian Sugar & Bioenergy Manufacturers Association (ISMA)].

Against the Government target to achieve ethanol blending of 20% by 2025, the average All-India blending percentage touched 19.83 % in March 2025.

Nanglamal Distillery produced 29657 KL in the Financial Year 2024-25, and supplies to the Oil Marketing Companies are progressing well.

RISKS AND CONCERNS

Incidence/infestation of certain insect pests and diseases such as Top Borer, Early Shoot Borer, Red Rot etc. in sugar cane crop has been observed in last two-three years. The major impact of Top Borer is seen in CO-238 variety of cane which occupies the major portion of Companys cane area. Efforts are being made to control its incidence by integrated pest management techniques and also replacing the CO- 238 cane variety in the coming years so that its impact in Companys command area could be minimized.

DETAILS OF SIGNIFICANT CHANGES

Details of significant changes as required under SEBI(LODR) Regulations, 2015 are as under:

Please refer to note no. 52 of Standalone Financial statements for variation in Key Financial Ratio.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has proper and adequate internal control systems which provide reasonable assurance regarding all financial and operating functions and compliance with statutory provisions.

The Company has an internal audit section besides an independent external Chartered Accountants firm which undertakes internal audits throughout the year. The internal auditors reports are regularly reviewed by Senior Management and Audit Committee of the Board for its implementation and effectiveness.

The Company endeavors to constantly upgrade internal controls and periodic evaluation of the same is being undertaken.

Use of SAP and other software systems have also resulted in strengthening the internal controls and accurate reporting of operational and financial data.

HUMAN RESOURCES

In the past fiscal year, our Human Resources department has been instrumental in driving initiatives aimed at fostering a positive work culture, nurturing talent, and aligning our workforce with the strategic goals of the organization. Through a range of programs and policies, we have focused on enhancing employee engagement, development, and wellbeing.

Human Capability building and leadership pipeline:

In line with our commitment to building human capability, we have launched the "UDAAN" initiative for 25 identified high- potential employees. These individuals have undergone a comprehensive Assessment and Development Center (ADC), which combines assessment techniques such as simulations and structured exercises with targeted development activities. The objective is to identify each participants strengths and development areas, with the overarching goal of enhancing their current performance and preparing them for future roles and strengthen our leadership pipeline.

Talent Acquisition:

Talent acquisition remains a strategic priority for Mawana Sugars. We have implemented robust recruitment strategies to attract top talent and ensure a diverse and inclusive workforce. Our efforts have included leveraging innovative recruitment methods, establishing partnerships with educational institutions and professional organizations, and prioritizing diversity and inclusion in all aspects of our hiring process.

Talent Development:

Investing in the development of our employees remains a top priority. We have continued to provide comprehensive training and development programs to equip our workforce with the skills and knowledge necessary to excel in their roles and adapt to evolving business needs. Additionally, we have emphasized leadership development initiatives to cultivate a pipeline of future leaders within the organization.

Employee Engagement:

We believe that engaged employees are key to our success, and therefore, we have prioritized initiatives to enhance employee engagement across the organization. This has included regular communication channels, employee feedback mechanisms, recognition programs, and opportunities for professional growth and development.

Diversity and Inclusion:

Our commitment to diversity and inclusion is embedded in our corporate culture. We have taken proactive steps to promote diversity and foster an inclusive work environment where all employees feel valued, respected, and empowered to contribute their unique perspectives. This has included diversity training, mentorship programs, and initiatives to ensure equitable opportunities for all employees.

Industrial Relations:

Maintaining positive industrial relations is critical to fostering a harmonious and productive work environment and always been a cornerstone of our HR strategy. Through proactive engagement and a commitment to fairness and transparency, we have strengthened our industrial relations and built trust and mutual respect among all stakeholders.

In conclusion, our Human Resources activities reflect our ongoing dedication to fostering a supportive, inclusive, and high-performing workplace culture. We remain committed to investing in our greatest asset - our people - and supporting their growth and success now and in the future.

CAUTIONARY STATEMENT

Some of the statements in this Management Discussions & Analysis, describing the Companys objectives, projections, estimates, expectations and predictions may be ‘forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied. Important developments that could alter your Companys performance include change in material costs, technology developments and significant changes in political and economic environment, tax laws and labour relations.