MRP Agro Ltd Management Discussions

The Management of the Company is pleased to present its report on the Industry Scenario including on the Companys performance during the financial year 2024-25.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS Global Economic Outlook

The Global growth remained stable but subdued through 2024, and recent developments have significantly altered the outlook. Following sweeping tariff measures by the United States on April 2, 2025 bringing tariff rates to century-high levels and subsequent global trade tensions, the IMFs April 2025 reference forecast downgraded global growth projections to 2.8% in 2025 and 3.0% in 2026, down from earlier estimates of 3.3% for both years. These estimates fall well below the 2000 2019 historical average of 3.7%. Advanced economies are expected to grow at 1.4% in 2025, with the US forecast lowered to 1.8% (a 0.9 percentage point downgrade) and the euro area to 0.8%. Emerging market and developing economies are projected to grow at 3.7% in 2025 and 3.9% in 2026.

Global headline inflation is expected to ease to 4.3% in 2025 and 3.6% in 2026, though the decline is slower than previously anticipated. Advanced economies are facing upward inflation revisions, while emerging markets see marginal downward changes. The global outlook is now dominated by heightened downside risks, including elevated trade policy uncertainty, reduced investment sentiment, asset repricing, and foreign exchange volatility. These risks are compounded for economies already experiencing debt stress, potentially leading to financial instability and challenges to the international monetary system.

To mitigate risks and restore stability, coordinated global action is essential. Policymakers must promote a rules-based and predictable trade environment, enhance transparency, and reduce uncertainty. Central banks should fine-tune monetary stances to balance inflation control and growth support, while using targeted foreign exchange interventions to contain volatility. Macroprudential measures must be activated to safeguard financial stability. Fiscal policy should aim to restore buffers through credible medium-term consolidation plans, while maintaining critical expenditures in areas such as health, infrastructure, and energy security. Structural reforms in labor, product, and financial markets can boost productivity, reduce debt overhang, and narrow cross-country disparities. Additionally, with aging populations and shifts in migration patterns, long-term growth prospects and external balances will be increasingly influenced by demographic dynamics. As global financial conditions tighten, resilience in emerging markets will depend on prudent debt management, sustained policy discipline, and strengthened international cooperation. For corporates, especially in trade-linked sectors, strategic agility and risk management will be key to navigating this evolving macroeconomic landscape.

SUMMARY OF OUR BUSINESS

Our company is engaged in the trading of food grains, fly-ash, and coal, including the import and export of these products, catering to a large and growing consumer base across both urban and rural areas. With a strong domestic procurement network, the company has established a robust market presence to meet diverse consumer needs. In addition to trading activities, the company is also involved in the dal processing business, wherein raw pulses are transformed into high-quality, ready-to-use dal through a meticulous process of cleaning, hulling, and splitting. Our state-of-the-art processing facility, equipped with advanced technology and stringent quality controls, enables us to deliver superior products that meet rising market demand. This strategic diversification not only enhances our product portfolio but also strengthens our position in the agri-based industry, paving the way for sustained growth and long-term success.

On February 4, 2025, the Company successfully launched a new range of premium products Urad Mogar, Urad Gota, and Urad Pulses. These high-quality, Sortex-cleaned offerings are available in 30 kg packaging and will be distributed across various districts in Madhya Pradesh. This launch marks a significant milestone in our ongoing commitment to delivering superior quality products and enhancing value for our customers.

Our company believes in creating a strong consumer facing front end and invests heavily in grains, fly-ash and coal. As our Company deals in trading of Food Grains, sales and marketing play a key role in ensuring that the corporate and products brands communicate and reach out to the customers in proper way; helping the Company in selling its strong value proposition of purity, quality and healthy grains. As part of its sales and marketing efforts, company regularly communicates with the consumer on various platforms to increase awareness of our Products.

Our Company is maintaining the equipments for measuring the Quality of the Product which enable us in maintaining quality of products, understanding the requirement of the customers and also we trade in some of food grain items with brand name such as

"MRP". Our Company has a brand which commands a high reputation for quality products, efficient services and level of reliability as a stable supplier of quality products in food grains. Before packaging and distributing, the Product is inspected by Quality Assurance department. Our range is appreciated for their features such as hygiene and accurate composition.

OUR COMPETITIVE STRENGTHS

We believe that the following are our primary competitive strength:

Compliance with Quality Standards: -

We adhere to quality standards as per industry standards as we are capable of meeting the quality standards at competitive costs, which enables us to maintain our brand image in the market. Our ability to maintain and improve the products we offer to customers enables us to generate stable revenue and minimize customer complaints. We now focus on guiding the overall experience of our customer which is intended to upgrade the experience of customer to one of much greater engagement and satisfaction. We are very particular and stringent about hygiene and fumigation our process. Our dedicated efforts towards the quality of products helped us gain a competitive advantage over others. We believe that our quality products have earned us a goodwill from our customers, which has resulted in repeat services orders from many of them.

Existing Customer Relationship: -

We believe that we constantly try to address customer needs around a variety of products. Our existing customer relationships help us to get repeat business from our customers. This has helped us maintain a long-term working relationship with our customers and improve our customer retention strategy. We believe that our existing relationship with our customers represents a competitive advantage in gaining new customers and increasing our business.

Existing Relationship with Suppliers: -

We have acquired raw materials from several suppliers and have contacts with them for a long time. We believe that our strong relationships with suppliers will enable us to continue to grow our business. Due to our relationships with our suppliers, we get quality and timely supplies of raw materials. This enables us to manage our inventories and supply quality products on timely basis to our customers. This in turn has enabled us to generate repeat business.

Scalable Business Model: -

Our business model is order driven, and comprises of optimum utilization of our resources and thereby enabling us to achieve consequent economies of scale. We believe that this business model has proved successful and scalable for us in the last financial years. We can scale upward as per the requirement generated by our Company. The business scale generation is basically due to the development of new markets both international and domestic, by adopting aggressive marketing of the product, adding more products and also by maintaining the consistent quality of the product.

OUR BUSINESS STRATEGY

Meeting Customer Requirements

Our Company intends is to provide the customer with 100% satisfaction. The products are manufactured using good quality material procured from reliable sources so that the customers receive the products with the best possible quality standards within the stipulated time frame.

To build-up a Professional Organization

As an organization, we believe in transparency and commitment in our work and with our suppliers, customers, government authorities, banks, financial institutions etc. We have an experienced and technically sound team for taking care of our day-to-day operations. We also consult with external agencies on a case-to-case basis on technical and financial aspects of our business.

Optimal Utilization of Resources

Our Company constantly endeavors to optimize the utilization of resources. We have invested significant resources, and intend to further invest in our activities to develop customized systems and processes to ensure effective management control. We regularly analyze our existing policies to be carried out for providing our products which enables us to identify the areas of bottlenecks and correct the same. This helps us in improving efficiency and putting resources to optimal use. We also intend to continue to build on our inclusive culture to ensure our employees remain engaged and committed to delivering exceptional service.

Improving operational efficiencies

Our Company intends to improve efficiencies to achieve cost reductions so that they can be competitive. We believe that this can be done through domestic presence and economies of scale. Increasing our penetration in existing regions with new range of products, will enable us to penetrate into new catchment areas within these regions and optimize our infrastructure. As a result of these measures, our company will be able to increase its market share and profitability.

2. OPPORTUNITIES AND THREATS

Our Company purchases the food grains, fly-ash and coal from local market by way of auction in large quantity and further sale the Products after clearing the Quality check to the wholesalers. Our business model is B2B (Business to Business Basis) as we deal in bulk trading of food grains, fly-ash and coal.

Our company is having the local mandi license for purchase of food grains via auction from local market of Tikamgarh, Madhya Pradesh. Also, our Company is registered dealer with Department of Mines & Geology, Government of Jharkhand for Purchase of Mineral such as Coal.

Increased Competition from Local & Big Players and Change in Government Policies are major threats to the Company.

3. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company is primarily engaged in the Processing and Trading of Agro Commodities, which in the context of AS 117 on

"Operating Segments" constitutes a single reporting segment. Further, there are no reportable geographical segments.

4. OUTLOOK

Indias retail industry is one of the most dynamic and rapidly growing sectors, driven by increasing urbanisation, rising disposable incomes, changing consumer preferences, and a surge in e-commerce adoption. Contributing over 10% to the countrys GDP and around 8% to employment, India has become the worlds fifth-largest global retail destination, ranked 63 in the World Banks

Doing Business 2023 report. The sector is expected to reach a market value of US$ 2 trillion by 2032, supported by a sizeable middle class, expanding urban consumer base, and significant interest from global retail giants. With nearly 60 new malls covering 23.25 million sq. ft. projected to become operational by 2025, and online shoppers anticipated to grow from 150 million in 2020 to 500 million by 2030, the e-commerce market is also set to hit US$ 350 billion in GMV. Government reforms have further enhanced the ease of doing business, attracting foreign investment and enabling 100% FDI in certain segments, making India one of the most promising global retail markets.

5. THREATS, RISK AND CONCERNS

The Company is concerned about prevailing exposure norms, financial position, entry of new players in the market, rising competition from banks & multilateral agencies, uncertain business environment, fluctuation in rupee, likely increase in cost of capital due to volatile market conditions. Further, the state of business and policy environment in the country also has a cascading effect on the interest-rate regime, cost and availability of raw materials and gestation period & capital outlays required for raw material.

6. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company maintains an adequate system of Internal Controls including suitable monitoring procedures to ensure accurate and timely financial reporting of various transactions, efficiency of operations and compliance with statutory laws, regulations and

Company policies. Suitable delegation of powers and guidelines for accounting have been issued for uniform compliance. In order to ensure that adequate checks and balances are in place and internal control systems are in order, regular and exhaustive Internal Audit of Office/plant are conducted by the in-house Internal Audit Division and external professional audit firm. The Internal Audit covers all major areas of operations, including identified critical/risk areas, as per the Annual Internal Audit Programme. The Audit Committee of Directors periodically reviews the significant findings of different Audits, as prescribed in the Companies Act, 2013 and in the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

7. FINANCIAL AND OPERATIONAL PERFORMANCE

Revenue from the operations of your Company for the year 2024-25 was Rs. 10,392.35 Lakhs which is 140.58% more than Rs. 4319.57 Lakhs in the previous year. Profit before Depreciation Interest & Tax for the current year was Rs. 903.95 Lakhs against Rs. 133.24 Lakhs in the previous year. Profit after tax for the current year at Rs. 689.69 Lakhs was increased by 592.21% over Rs. 99.64 Lakhs in the previous year.

8. HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company gives utmost importance to the capacity-building and well-being of its employees. The Industrial Relations in the Company continued to be on a cordial note. There are regular interactions between the management and the representative-associations on issues pertaining to employee welfare. The Company has an atmosphere of trust and cooperation, which results in a motivated work force and consistent growth in the performance.

9. ANALYSIS OF SIGNIFICANT CHANGES IN FINANCIAL RATIOS

As per the recent amendments to the SEBI Listing Obligations & Disclosure Requirements (LODR), we give below additional information in respect of financial parameters that are applicable to our company:

Detail of Significant changes (i.e. change of 25% of more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanation therefore as under:

a) Debtor Turnover Ratio: The Debtor Turnover ratio as on March 31, 2025 is 35.02 times as compared to 53.65 times in the previous year. b) Inventory Turnover Ratio: The Inventory Turnover Ratio as on March 31, 2025 is 0.39 times as compared to 73.45 times in the previous year. c) Interest Coverage Ratio: The Interest Coverage Ratio as on March 31, 2025 is 39.70 times as compared to 15.17 times in the previous year. d) Current Ratio: The Current Ratio as on March 31, 2025 is 13.63 times as compared to 2.32 times in the previous year. e) Debt Equity Ratio: The Debt Equity Ratio as on March 31, 2025 is 0.00 times as compared to 0.14 times in the previous year. f) Operating Profit Margin: The Operating Profit Margin Ratio as on March 31, 2025 is 98.69% as compared to 4.31% in the previous year. g) Net Profit Margin: The Net Profit Margin Ratio as on March 31, 2025 is 6.64% as compared to 2.31% in the previous year.

Cautionary Note

Certain statements in "Management Discussion and Analysis" section may be forward looking and are stated as required by applicable laws and regulations. Many factors may affect the actual results, which could be different from what the Management envisages in terms of future performance and outlook.

ANNEXURE B

CERTIFICATE OF NON DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

To,

The Members

MRP AGRO LIMITED

House No.100, First Floor, Ward No.23, Infront of Thane Ajak, Civil Line Road Tikamgarh MP-472001

In Pursuance of sub clause (i) of clause 10 of Part C of schedule V of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirement) Regulations, 2015; (LODR) in respect of MRP AGRO LIMITED, we have examined the relevant disclosures provided by the Directors (as enlisted in Table A).

In our opinion and to the best of our knowledge and based on the following: i. Documents available on the website of the Ministry of Corporate Affairs; ii. Verification of Directors Identification Number (DIN) status on the website of the Ministry of Corporate Affairs; and iii. Disclosures provided by the Directors (as enlisted in Table A) to the Company.

We hereby certify that none of the Directors on the Board of the Company (as enlisted in Table A) has been Debarred or Disqualified from being appointed or continuing as Director of company by the SEBI/ Ministry of Corporate Affairs or any statutory authority as on March 31^st, 2025.

List of Directors (Table A)

S.No. Name of the Directors	DIN	Date of appointment in the Company	Designation
1. Deepak Luhar	08906642	12/10/2020	Independent Director
2. Manish Jain	08110055	13/04/2018	Managing Director
3. Raksha Jain	08110056	13/04/2018	Non-Executive Director
4. Santosh Kumar Lohiya	08534024	12/10/2020	Independent Director

Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.