Nath Bio-Genes (India) Ltd Management Discussions

Global Economy

The global economic outlook for FY24 is increasingly positive, with projected growth now at 2.7%, an upward revision from the earlier forecast of 2.4%¹. This adjustment reflects the exceptional performance of the United States economy and improved prospects for several major emerging markets, collectively invigorating the global economic landscape.

However, concerns about a resurgence in inflation persist due to rising food and energy prices, exacerbated by geopolitical tensions in the Red Sea and transit challenges in the Panama Canal. Additionally, upward wage pressures in developed economies with historically low unemployment rates could contribute to inflationary pressures².

Looking beyond FY24, the global economy is expected to maintain a steady growth trajectory, albeit with regional disparities. Technological innovation and digital transformation will continue to drive productivity gains, particularly in sectors like finance, healthcare, and manufacturing. Investment in emerging Technologies such as artificial intelligence, renewable energy, and biotechnology will be pivotal in sustaining long-term growth. The transition to a green economy will gain momentum, with increased investment in renewable energy sources, sustainable agriculture, and environmentally friendly technologies. This shift will not only mitigate climate risks but also create new economic opportunities and jobs.

The resolution of geopolitical tensions and the establishment of stable trade relations will be crucial for global economic stability. Diplomatic efforts and international cooperation will play a significant role in ensuring a conducive environment for economic growth. Aging populations in developed economies and a growing youth demographic in emerging markets will influence labor market dynamics and economic policies. Addressing skills gaps and fostering inclusive growth will be essential to harness the full potential of the global workforce. Central banks and governments will need to strike a balance between controlling inflation and supporting economic growth. Adaptive monetary policies and targeted fiscal measures will be key to navigating economic uncertainties and fostering a stable economic environment.

Overall, while the global economy faces both opportunities and challenges, the underlying resilience and adaptability of markets worldwide provide a solid foundation for sustained growth in the coming years.

Effective policy measures, technological advancements, and international cooperation will be instrumental in shaping a prosperous global economic future.

Indian Economy

Indias economy presents a compelling picture of moderate growth in the near term with significant longterm potential. While the real GDP growth is expected to moderate to 6.8% in fiscal 2025 and the Nominal GDP has witnessed a growth rate of 9.6% in FY 2023-24 over the growth rate of 14.2% in FY 2022-23, this steady expansion positions India to become the worlds third-largest economy by 2031³. This growth is also expected to translate into a significant rise in per capita income, which is estimated to reach US$ 4,000 by FY 2030, reflecting a nearly 70% increase from FY 2023 levels. Furthermore, this growth trajectory is projected to elevate India to the upper-middle-income category by the same year, signifying a substantial improvement in living standards⁴.

This follows impressive expansions of 7.6% and 7.0%⁵ in the preceding fiscal years, showcasing resilience amidst economic fluctuations. The anticipated moderation reflects global economic dynamics and adjustments in domestic policy settings aimed at sustainable growth. This achievement marks a significant milestone in Indias economic evolution, underpinned by robust fundamentals despite global economic headwinds, rising interest rates, and potential fiscal adjustments.

The government is striking a commendable balance between fiscal consolidation and growth. The revised fiscal deficit for FY24 is estimated at 5.8% of GDP, demonstrating a continued focus on fiscal responsibility. This trend is expected to persist, with the projected fiscal deficit for FY25 anticipated to be 5.1% of GDP. Importantly, the government is prioritizing infrastructure development to fuel long-term growth. The FY25 capex target of US$ 133.8 billion (Rs 11.1 lakh crore) represents an 11.1% increase compared to the previous year⁶. This significant investment in infrastructure bodes well for Indias future economic potentials.

Looking ahead, Indias economic narrative remains compelling, driven by continued investments in infrastructure, digital transformation, and reforms aimed at enhancing business climate and governance. Challenges such as income inequality and infrastructure gaps persist but are being addressed through targeted policy interventions. The governments commitment to fiscal discipline and inclusive development augurs well for long-term growth prospects. Moreover, demographic advantages, a burgeoning middle class, and increasing urbanization are poised to sustain domestic demand and investment momentum.

This is a welcome sign for Indias long-term economic health, signaling a transition from a labor-intensive to a more productive, efficiency-driven economy. To achieve this, India is making strides on multiple fronts. The governments "Make in India" initiative fosters technological advancements in manufacturing, while infrastructure projects aim to improve logistics and connectivity. Additionally, skilling initiatives like Skill India are crucial in equipping the workforce with the capabilities to thrive in this new paradigm. By prioritizing these aspects, India is well-positioned to capitalize on the efficiency wave and propel sustainable economic growth.

In conclusion, while India navigates through global uncertainties and domestic challenges, its economic trajectory remains resilient and promising. The nations ascent towards becoming a global economic powerhouse is supported by prudent policymaking and a proactive approach to sustainable development. Investors and stakeholders can anticipate a dynamic and evolving financial landscape, offering opportunities amidst the broader narrative of growth and transformation.

Agricultural Sector

Agricultural development stands as a pivotal instrument in eradicating extreme poverty, fostering inclusive prosperity, and addressing the nutritional needs of an estimated ten billion people by 2050. Moreover, agriculture significantly contributes to global economic output, constituting approximately 4% of global GDP and exceeding 25% in some developing nations⁷.

In 2024, the global agricultural market is poised to achieve a gross production value of approximately USD 4.59 trillion, with an anticipated compound annual growth rate (CAGR) of 3.76% through 2029, projecting a value of USD 5.52 trillion by the end of the period⁸. Concurrently, import values are projected to reach USD 949.7 billion, growing at a CAGR of 11.54%, while export values are expected to total USD 841.7 billion in 2024, with an anticipated CAGR of 17.73% over the same period. This growth trajectory underscores the sectors resilience and strategic importance in meeting global food demand.

According to Bain & Co., the Indian agricultural sector is also poised for a substantial growth, projected to reach between US$ 30-35 billion by 2025. The sectors resilience is underscored by the First Advance Estimates for 2023-24, which anticipate rice production at 1,063.13 lakh tonnes during the kharif season. India demonstrated robust performance, with exports reaching US$ 35.18 billion from April to December 2023-24 alone. For the full fiscal year 2023-24, agricultural exports are expected to match the previous years level at US$ 53 billion, reflecting sustained global demand and competitive positioning.

The global agricultural biotechnology market is forecasted to expand from USD 79.9 billion in 2023 to USD 119.6 billion by 2028, reflecting a CAGR of 8.4% during the forecast period. This growth underscores the sectors increasing reliance on advanced biotechnological solutions to enhance productivity and sustainability.⁹

Such growth forecasts underscore Indias strategic positioning in the global food economy, driven by robust domestic demand, policy support, and a burgeoning industrial base. As India continues to harness its agricultural and food processing potential, it stands poised to enhance its global footprint and economic resilience in the years ahead.

Agribusiness firms are increasingly pursuing acquisitions of arable land to bolster crop yields and expand their operational footprint in response to heightened demand and growth opportunities in farming activities. These strategic initiatives are expected to underpin continued growth and profitability within the agricultural sector.

Seed Sector Overview

According to the World Seed Trade Statistics, India boasts the sixth-largest domestic seed market globally, valued at approximately $1.3 billion ¹⁰ . However, the seed replacement rate remains low for most crops, with the notable exceptions of cotton and certain vegetables. The adoption of hybrid seeds is predominantly observed in cotton, and to a lesser extent in crops such as corn, millet, sunflower, and some vegetables. The concept of seed certification emerged in response to the growing concern over the rapid loss of varietal identity during production cycles.

According to the hybrid seeds market trends, based on crop, the fruits & vegetable crops segment was the highest revenue contributor to the market, with $40,951.5 million in 2020, and is estimated to reach $118,878.4 million by 2031, at a CAGR of 10.0% during the forecast period. The fruit & vegetables crops segment grows at the highest rate, in terms of both value and volume in the market.

There is an increasing awareness among farmers regarding the higher yield and superior quality of produce derived from hybrid seeds, driving a gradual shift towards their use. The global hybrid seeds market was valued at $59.6 billion in 2020 and is projected to reach $166.2 billion by 2031, registering a compound annual growth rate (CAGR) of 9.6%¹¹.

In India, the hybrid seeds market generated revenue of $17.7 billion in 2020 and is expected to grow to $51.8 billion by 2031, with an estimated CAGR of 10.0% during the forecast period. This robust growth trajectory underscores the increasing importance and adoption of hybrid seeds in enhancing agricultural productivity and ensuring food security.

Cotton Sector Overview

Indias cotton cultivation spans over 13.06 million hectares, representing a significant portion of the global total of 33.1 million hectares. The Indian cotton industry is a vital economic sector, supporting the livelihoods of approximately 60 million individuals. In the fiscal year 2023-24, India produced 31.6 million bales of cotton (each bale weighing 170 kg) as of November 2023.

The primary importers of Indian cotton during FY24 (until January 2024) were Bangladesh, China, Sri Lanka, and Vietnam. These countries collectively accounted for 45% of Indias total cotton exports. Notably, despite the challenges posed by the COVID-19 pandemic, India maintained its export momentum in cotton and cotton yarn. Bangladesh emerged as the largest importer, securing over 34% of Indias cotton exports, followed by China with a 13% share. The total value of cotton exports reached US$ 5.3 billion in the fiscal year 2023-24¹² (until January 2024).

In alignment with strategic economic goals, the Government of India, in collaboration with the Export Promotion Council, has set an ambitious target of US$ 100 billion in textile exports by 2025-26. To achieve this, there is a focused effort to enhance cotton productivity from the current yield of approximately 450 kg lint per hectare to at least 800-900 kg lint per hectare. This initiative aims to bolster the competitive edge of Indias textile industry on the global stage.

Company Overview

Nath Bio-Genes (India) Limited stands as a distinguished leader in the Indian seed industry, leveraging over two decades of expertise in producing and distributing high-quality seeds to Indian farmers. The Companys robust research and development initiatives have yielded numerous acclaimed cotton seed varieties, noted for their resilience against viruses and weather fluctuations, as evidenced by their outstanding performance in ICAR trials. The companys commitment to excellence is further demonstrated through its comprehensive extension programs designed to empower farmers. These initiatives include product awareness campaigns, crop demonstrations, agronomic input guidance, fertigation practices, and post-harvest management training.

As Nath Bio-Genes transitions from addressing food security to focusing on nutritional security, the company is dedicated to bringing healthier seed varieties from farms to consumers plates. This strategic shift underscores Nath Bio-Genes ongoing mission to support farmers and contribute to the overall wellbeing of the population through innovative agricultural solutions.

Notably, the recent introductions of the Sanket and Jumbo cotton seeds have secured top-three rankings across diverse geographies and planting conditions. This consistent superior performance underscores a strong potential for Nath Bio-Genes cotton seed portfolio to outpace industry growth rates.

The companys core crops flourished in FY24, with significant volume increases for Cotton (17%), Paddy (12%), Bajra (26%), Maize (19%), and Wheat (27%). This diversification strategy has not only mitigated risk but also positioned Nath Bio-Genes as a well-rounded player in the agricultural sector.

Even more impressive is the advancement in the Non-Cotton, Non-Paddy (NCP) segment. Here, Nath BioGenes achieved a remarkable 15.73% value surge despite a modest volume increase (4.21%). This shift towards higher-margin products demonstrates a keen focus on profitability. Notably, their continued emphasis on the NCP portfolio, including Maize, Bajra, Mustard, and Wheat, resulted in a commendable 16% volume growth, solidifying their strategic direction.

Central to Nath Bio-Genes success is its commitment to fostering strong relationships within the agricultural community, collaborating closely with over 15,000 forward-thinking farmers who cultivate seeds for the Company. This collaborative approach has not only enhanced agricultural productivity but also earned Nath Bio-Genes numerous accolades, including the prestigious "Vasantrao Naik Prathisthan Award" in recognition of its significant contributions to the sector.

Product Portfolio

Segment	Key Products	Product Pipeline	Key Geographies
Cotton	Sanket, Jambo, Profit +, Rana, Maharana, Himalaya, NBC-10 & NBC-11	NBC 2020, NBC 211, PAN India NBC 30, NBC 85	Central Zone, South Zone, Western Zone in India
Paddy	Dhadak, Dhadak Gold, Loknath, Gorakhnath, Tehelka, Gazab, Khushi-27, Puravakamini, Menka, Kasturi, Nath 2020, Nath Poha, Golden-72, Mehak-92, Karina, Nath-11	NBRH 19195, NBRH 34	North, Central and North-East India
Pearl Millet	Super-27, NBBH-20, NBH-07, NBH-05, NBH- 1717	NBBH-2122, NBBH-2212	North, West & Central India
Mustard	Rajshree, Rajshree Gold, Himalaya, Goldie, Goldie Super, Golden-100 & Pari-313	In Progress	North & Central India
Corn	Dominator, NWMH-2002 Gold, Don-1588, NMH-1008, Dominator Gold, Singham, NMH 1707	NMH- 5620, NMH-6560, NMH-6962	PAN India
Wheat	Mohan Wonder, Manik-07, NAVNATH	NW-10, NW-16, NW-20	North, West, East & Central India
Forage	NutriMax, NutriMax Gold	In process	North, West, East & Central India
Grain Sorghum	Amranath, Amarnath- 251	In process	North, West, South & Central India
Vegetable	Chilli - Legend, NCH-495 Okra - NOH05, Sara Cucumber - NCH02. NCH 1061 Bitter Gourd - Chintu Tomato - Akhand, Joy	Chilli - NCH 2561, NCH 200, NCH 2546 Okra - NOH3341 Cucumber - NCUH2061 Bitter Gourd- NBH6054 Tomato - NTH1965	PAN India
PNS	Win-chi-Win, WinGoli, WinPro Granules	In process	PAN India

Cotton - The company has demonstrated remarkable resilience within the cotton industry, despite the sector grappling with the significant challenge of illegal genetically modified (BT) cotton seeds. This resilience is evidenced by a notable 17% increase in cotton sales volume for FY24, about 16.06 lakh packets were sold. Cotton continues to be a pivotal segment, accounting for 31% of the companys overall revenue in the same fiscal year. In response to the adverse impact of illegal BT cotton seeds, the company has actively engaged in a comprehensive array of initiatives. These efforts include strategic collaborations with industry bodies and government entities to tackle the issue at its root. Additionally, the company has prioritized farmer education, underscoring the critical importance of using legitimate BT cotton seeds to achieve optimal yields and sustainable agricultural practices.

BT Cotton - For commercial cultivation in India, BT cotton is the only transgenic crop approved by the government. Popularly known as, cotton bollworm is a prevalent pest that has been targeted with a pesticide using genetic engineering.

HTBT Cotton - It adds another layer of alteration, rendering the plant resistant to the herbicide glyphosate, even though it has not been approved by regulators.

Challenges faced by Cotton Industry - HTBT cotton requires only one application of glyphosate. There is no additional requirement for weeding. This leads to a saving of cost of about. Since the Genetic Engineering Appraisal Committee has not authorized it, it is being sold illegally in Indian marketplaces. With such unlawful cotton seed sales, farmers are in danger since there is no guarantee of the quality of the seed, it pollutes the environment, the industry loses genuine seed sales, and the Government also loses revenue. It would not only destroy tiny cotton seed businesses, but it would also endanger the countrys whole legal cotton seed industry.

The company is developing products which have most of the following features:

• Medium and Large Boll

• Ease in harvesting

• High tolerance to sucking pests.

• High tolerance to pink bollworm

• Wider adaptability

• Yield Superiority

With a focus on yield superiority, the strategy is to offer farmers a wide selection of cotton seed types that are suited for various climatic situations. Sanket and Jambo, the Companys two newest hybrids, are aiding in the segments rise.

Paddy - The sales composition of paddy encompasses both open-pollination and hybrid seeds, with hybrid variants commanding superior margins. Consequently, hybrid paddy constitutes the most significant segment of the Companys product portfolio. In pursuit of enhanced margins, the Company has strategically adjusted its paddy product mix to favor hybrid paddy sales. This strategic pivot resulted in a 7.43% decline in volume but a modest 1.24% decline in value for FY23, underscoring the higher value retention of hybrid seeds. Notably, paddy volumes have since increased by 11.99%, reflecting the growing prominence of hybrid paddy in the product mix. In FY24, paddy sales contribute to 25% of the Companys total revenue.

Hybrid paddy remains a high-value, low-volume product, central to the Companys strategic focus. Despite potential fluctuations in paddy volume, revenue and margins from this segment are projected to remain robust. The introduction of new products such as Dhoom, Dhadak, and Dhadak Gold are expected to further bolster this segment.

The Companys flagship products in the paddy segment include, Loknath, Gorkhanath, and Tehelka. In alignment with its R&D initiatives, the Company is developing products with the following characteristics:

• Early maturity, fine grain quality, and enhanced resistance to diseases and pests

• Improved tolerance to moisture stress

• Medium-Bold and Long-Bold grain products with medium maturity equipped with resistance to Bacterial Leaf Blight (BLB) and Brown Planthopper (BPH)

These strategic endeavors underscore the Companys commitment to innovation and market leadership in the high-margin hybrid paddy segment.

Vegetables - The vegetable segment is a significant market with a wide range of product offerings, and its cultivation varies across different regions in India. The Company has a robust presence in this segment, with more than ten crops available throughout the country, contributing around 7 % of the Companys top line. The Company is currently working on launching new products with high disease resistance and excellent virus resistance, particularly in tomato and okra, as well as high-yield and no bitterness features in chilly, bitter gourd, and cucumber. Furthermore, the Company is conducting extensive research and development to expand its product portfolio.

The R&D team of the Company has been working on the following:

• Developing newer products

• Diversifying the existing portfolio of products

• Bio-tech integrated Innovation

Plant Nutrient Supplement - Win-Chi-Win, a renowned Plant Nutrient Supplement, has consistently demonstrated its effectiveness in boosting crop yields. The Company has observed a notable surge in demand for this product across horticultural, agricultural, and vegetable crop sectors. To exclusively source and market Win-Chi-Win in India, the Company has formed a strategic partnership with a Chinese firm, ensuring widespread distribution across the nation. Within the PNS vertical, the Company has launched two innovative soil conditioners designed to enhance soil quality and promote healthy crop growth. Win-Chi-Wins performance has been exceptional, achieving a robust quantitative 34% growth in FY24.

Others - This category mostly covers wheat, jowar, mustard, bajra, and maize with a larger proportion of maize, mustard, and bajra. 44% of the Companys top line comes from this segment of the business.

Financial Overview

The Company has maintained a low net debt, currently as in FY24 is ^32 Cr, while consistently achieving strong performance in cotton sales, which saw a YoY growth of 16.38%. A stable net profit margin of approximately 12% (adjusted PAT) underscores its financial stability. Strategic diversification into high- margin segments such as field crops, vegetables, and supplements has notably supported the Companys shift to a de-risked business model, with non-cotton and non-paddy segments now comprising 45% of the portfolio.

Enhanced control over receivables is evident from improved receivable days, further bolstering the Companys financial position. Revenue showed a significant increase of 9.64% to reach ^3,326 million, supported by a robust gross margin of 59.85%, which reflects effective revenue growth and cost management strategies. The Company also generated a positive operating cash flow of ^747 million, demonstrating its ability to finance future investments and sustain growth.

Company Outlook

The Companys future strategy underscores a continued focus on NCP Crops while emphasizing innovation and geographical expansion. Leveraging its research and development capabilities, the Company is introducing new products and acquiring additional territories. It has already commenced product testing and is obtaining licensing approvals in Southeast Asia and Africa, regions identified as significant markets. These strategic moves are designed to mitigate single-country regulatory and environmental risks, ensuring a diversified and resilient operational framework.

Infrastructure

The Company adheres to a strategic philosophy of minimizing capital tied up in infrastructure. Recognizing the superior efficiency and cost-effectiveness of leasing storage and processing facilities, the Company has entered into a long-term contractual agreement with a premier provider in Southern India. This arrangement consolidates all the Companys field crop processing requirements under one roof, thereby optimizing operational efficiency and reducing costs.

Research and Development

The Company has strategically enhanced its research and development capabilities by leveraging the expertise of the nations foremost R&D specialists. Utilizing cutting-edge technologies, the Company has successfully developed high-yielding hybrids that exhibit superior resilience to both biotic and abiotic stresses. The Companys unique and distinguished collection of Trait Specific Elite Germplasm confers a significant competitive advantage, positioning it ahead of industry peers. The Company has the following R&D investments:

• 40 breeding and evaluation R&D dedicated stations in different Agro-Climatic conditions

• About 325 acres of land for the purpose of research and development

• Partnerships and collaborations with globally recognized research institutes such as NRCPB, CIMMYT, IRRI, ICRISAT

• Dedicated team of hand-picked plant breeders and biotechnologists based at key R&D centers under the guidance of R&D veterans.

Seed Production

The Companys operations are extensively distributed across India, with seed production activities in Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Rajasthan, Odisha, Uttar Pradesh, Madhya Pradesh, and Tamil Nadu, encompassing diverse agro-climatic regions. Seed production spans more than 30,000 acres, managed by a team of around 25,000 dedicated growers and nearly 100 technically proficient organizers. The Company adheres to stringent field standards and quality control inspections throughout the seed production process, ensuring that only the highest quality seeds are delivered to its processing facilities. A team of skilled production employees and quality personnel meticulously monitor the farms to enforce these standards. The Company places significant emphasis on nurturing its relationships with produce growers and organizers. By acknowledging their challenges and providing necessary guidance, direction, and financial support, the Company has fostered trust, loyalty, and commitment among its team, yielding positive results.

Elaborate Seed Processing Facilities

The Company operates three advanced seed processing plants located in Maharashtra, Telangana, and Andhra Pradesh, offering state-of-the-art seed processing capabilities. Additionally, the Company maintains custom processing arrangements in Gujarat, Karnataka, Tamil Nadu, Madhya Pradesh, and Rajasthan. Each facility is fully equipped with pre-cleaners, fine cleaners, graders, gravity separators, de- stoners, indented cylinders, treaters, needle separators, and packaging machinery.

For the ginning, de-linting, drying, processing, treating, packaging, and storing of seeds, the Company has established independent facilities. These facilities ensure that farmers seeds meet and exceed the stringent quality standards mandated by regulatory bodies. By enhancing seed viability and extending their shelf life, the Company elevates the quality of seed processing. Furthermore, all packaging materials are selected for their superior environmental barrier properties, ensuring optimal storage conditions for the seeds.

Stringent Quality Assurance

The Company maintains state-of-the-art testing laboratories in Maharashtra and Andhra Pradesh, renowned for their precision and organization. The dedicated team conducts regular field inspections throughout the entire manufacturing process. Adhering to the Companys stringent quality policy, the highest standards are upheld to provide farmers with superior yields, thereby enhancing their profitability. Comprehensive Total Quality Management (TQM) practices are implemented, including frequent lot germination monitoring and genetic purity testing.

Genetic purity of genetically modified crops is assessed through the Enzyme-Linked Immunosorbent Assay (ELISA) test. The Company undertakes rigorous measures to ensure seeds are produced under optimal conditions, maintaining genetic purity across all batches. Additionally, a stringent quality assurance process is employed during the processing and packaging of foundation seeds.

In alignment with the standards set by the International Seed Testing Association (ISTA), the Company performs over 200,000 quality tests annually across the entire supply chain before seeds are packaged and dispatched to marketing centers. Every seed lot entering the processing plants is meticulously sampled and evaluated for physical appearance, moisture content, presence of other distinguishable varieties, physical purity, treatment, genetic purity, germination, vigor, and soil emergence. These assessments are systematically classified and documented.

Diversified Distribution Network

The Company maintains an extensive network of 16 business centers across 131 regions in India, collaborating with over 20,000 distributors. Under the leadership of seasoned seed marketing professionals, the Company has significantly expanded its presence domestically and internationally over the past 4-5 years. Looking ahead, the Company aims to further extend its direct retailer network. Leveraging its strong position in India, the Company is strategically targeting international markets with agronomic conditions like those in India. The Company is well positioned to expand its operations into

additional regions across Asia, Africa, and the Middle East. Their focus is on building an un-paralleled Supply Chain Network.

Risk Mitigation Strategies

Risk	Impact	Mitigation
Regulatory Risk	Increased domestic as well as foreign competition in the seeds space can result in the tightening of regulatory norms posing a risk to the operations of the Company. Mitigation	The Company has a dedicated Compliance and R&D team to stay updated on international standards on GM and/or Hybrid seeds. These dedicated teams in collaboration with middle management and technology teams help the Company mitigate any risk arising from policy changes.
Technology Risk	Increased usage of the same technology on the soil can render soil, pathogens, and pests resistant to its beneficial effects.	The Companys R&D infrastructure is focused on innovating and inventing newer technologies to avoid reliance on only one type of technology. The Company aims to produce seeds with high yields and endurance to several pests and viruses.
Unpredictable Weather	Weather plays a key role in the production of food grains, pulses, vegetables, etc. Any adverse climatic conditions can negatively impact the production and maintenance of crops and fields	The Company attempts to minimize the effects of these natural variables by taking proactive and quick action by creating seeds that can be cultivated situations, such as drought, heat waves, etc.
Cotton Business	There are multiple risks associated with the cotton business such as the increased proliferation of illegal seeds which are herbicide tolerant in cotton- growing states to meet the customized product - based demand.	The company has a diversified product portfolio and focuses on All season products. The company seeks to increase segment growth in the vegetable and plant nutrient markets.

Human Resources

The Company regards its human resources as its most asset, particularly during its transition from the growth phase. Human resources are deemed essential for both operational efficiency and overall business success. The Companys team of dedicated scientists and researchers has established a robust foundation, facilitating continuous innovation and advancement.

To maintain and enhance employee capabilities, the Company invests in ongoing training and development programs, including workshops with prestigious research institutions worldwide. In its efforts to bolster brand awareness, the Company has strategically expanded its sales and marketing team. Comprehensive HR policies have been implemented to attract and retain top talent, ensuring that

employees can achieve their full potential within a supportive work environment. As of March 31, 2024, the Company employed a total of 423 individuals.

Internal Control Systems

The Company rigorously adheres to all local regulatory standards to ensure the effective and efficient management of its operations. It is firmly committed to the principle that a robust internal control system is foundational to sound corporate governance. The Companys internal controls are appropriately scaled to its size and the nature of its operations and are continually monitored and updated as necessary to safeguard assets against loss or unauthorized use.

An audit committee has been established to evaluate internal factors comprehensively and to recommend remedial actions whenever required. This proactive approach underscores the Companys dedication to maintaining stringent governance and operational integrity.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, expectations and estimates regarding future performance may be "forward-looking statements" and are based on the currently available information. The management believes these to be true to the best of its knowledge at the time of preparation of this report. However, these statements are subject to certain future events and uncertainties, which could cause actual results to differ materially from those, which may be indicated in such statements.