Mukta Agriculture Ltd Management Discussions

ECONOMIC OVERVIEW:

GLOBAL ECONOMY

The global economy continued to face various economic and geopolitical challenges during the financial year 2025-26. Growth remained moderate due to continuing uncertainties relating to inflation, interest rates, geopolitical developments and international trade.

The global economic environment continues to remain uncertain. Changes in commodity prices, interest rates, exchange rates and international trade policies may have an impact on businesses across various sectors.

INDIAN ECONOMY

The Indian economy continued to remain resilient during the financial year 2025-26. Domestic consumption, investment activity, infrastructure development and various government initiatives continued to support economic activity.

The agriculture sector continues to have an important role in the Indian economy and remains dependent on factors such as monsoon, availability of agricultural inputs, commodity prices, government policies and overall market conditions.

The Government of India continues to take various measures for the development of the agriculture and allied sectors, including improvement in agricultural infrastructure, promotion of technology, support for farmers and development of supply chains.

OVERVIEW

Mukta Agriculture Limited is engaged in the business of trading of agricultural goods, natural resources and allied products.

During the financial year 2025-26, the Company did not have significant operating revenue from its business activities and continued to face financial challenges. The Company has incurred a loss during the year under review.

The Company continues to review its business position and available opportunities and will take appropriate steps based on the prevailing business and market conditions.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The agriculture and allied sector continues to be an important sector of the Indian economy. The performance of the sector is influenced by monsoon conditions, agricultural production, commodity prices, government policies, availability of finance, domestic consumption and export opportunities.

The Government continues to encourage development of agricultural infrastructure, food processing, storage facilities, technology-based agricultural activities and improvement in agricultural supply chains. However, the sector also remains subject to various external factors, including changes in weather conditions, commodity prices, market demand and regulatory policies.

OPPORTUNITIES & THREATS

The agriculture sector provides opportunities in areas such as agricultural trading, processing, storage, distribution and allied activities.

The Company may evaluate suitable business opportunities from time to time, depending upon market conditions, availability of resources and the Companys financial position.

The Companys business may be affected by fluctuations in commodity prices, changes in demand, availability of working capital, weather conditions, changes in government policies, competition and general economic conditions.

The Companys financial position and limited operating activity may also affect its ability to undertake substantial expansion of its business.

RISKS & CONCERNS

The agriculture-related business is exposed to various risks and uncertainties. These include adverse weather conditions, natural calamities, pest and diseases, fluctuations in agricultural production, changes in commodity prices, changes in government policies and regulations, market conditions and availability of finance.

The Company continues to monitor the business and financial risks associated with its activities and intends to take appropriate measures as and when required.

OUTLOOK

The agriculture-related business is exposed to various risks and uncertainties. These include adverse weather conditions, natural calamities, pest and diseases, fluctuations in agricultural production, changes in commodity prices, changes in government policies and regulations, market conditions and availability of finance.

The Company will continue to assess available business opportunities and prevailing market conditions. The future course of business will depend upon the Companys financial position, availability of suitable opportunities and overall market conditions.

SEGMENT-WISE PERFORMANCE

The Company is operating on only one segment. Hence separate segmental reporting is not applicable. The Company has no activity outside India.

INTERNAL CONTROLS SYSTEMS AND ADEQUACY

The Company has an internal control system commensurate with the nature and size of its business and operations. The internal control system is intended to ensure that transactions are properly authorized, recorded and reported and that the Companys assets are safeguarded.

The management periodically reviews the internal control systems and takes appropriate steps wherever considered necessary.

The Company has appointed Internal Auditors to carry out internal audit activities, wherever applicable. The internal audit process is reviewed by the management and the Audit Committee.

FINANCIAL PERFORMANCE

The financial performance is covered in the Directors Report and the same can be referred to by the shareholders.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT

During the financial year 2025-26, there were no material developments in human resources or industrial relations requiring specific disclosure.

The Company continues to maintain appropriate human resources for its present level of operations.

RATIOS WHERE THERE HAS BEEN A SIGNIFICANT CHANGE FROM FINANCIAL YEAR 2024-25 TO FINANCIAL YEAR 2025-26

During the year under review, the detail of changes made in the following key financial ratios as compare to the immediately previous financial year. The details of the same in a form of comparison is provided as:-

S. No. Particulars of Ratio	Financial Year 2025-26	Financial Year 2024-25
1 Debtors Turnover Ratio	NA	NA
2 Inventory Turnover Ratio	NA	NA
3 Interest Coverage Ratio	-	(436.32)
4 Current Ratio	434.09	18.10
5 Debt Equity Ratio	Nil	Nil
6 Operating Profit Margin	NA	NA
7 Net Profit Margin	0.44	(091)
8 Return on Net worth	0.01	(0.01)

DISCLOSURE OF ACCOUNTING TREATMENT

The Company has followed the accounting principles generally accepted in India, including the applicable Indian Accounting Standards (Ind AS), as specified under Section 133 of the Companies Act, 2013, read with the relevant rules made thereunder, to the extent applicable.

The Company has consistently followed the accounting policies applicable to it during the period under review. The significant accounting policies adopted by the Company are disclosed in the Notes forming part of the Financial Statements.

CAUTIONARY STATEMENT:

Statements in this Report describing the Companys objectives, expectations, estimates and outlook may constitute forward-looking statements within the meaning of applicable laws and regulations. Such statements are based on certain assumptions and expectations and are subject to various risks and uncertainties.

Actual results may differ materially from those expressed or implied due to factors including changes in economic conditions, market conditions, government policies, regulations, taxation, commodity prices, competition and other factors beyond the control of the Company.

By and on behalf of the Board
For Mukta Agriculture Limited
Krishan Khadaria	Mohit Khadaria
Director	Managing Director
DIN:00219096	DIN:05142395