Naturite Agro Products Ltd Management Discussions

COMPANY OVERVIEW

Naturite Agro products Limited is proud to be one of e few Indias select manufacturers of e manufacturer, suppliers and exporter of Capsicum Oleoresin, Pure Capsaicin Natural, Paprika Oleoresin, Turmeric Oleoresin & Curcumin Powder. e offered range has been availed to e cuomers in andard compositions. Its products are supplied to healcare, food, and beverage induries.

INDURY RUCTURE AND DEVELOPMENTS

e spices market in India has witnessed significant grow in recent pa on account of rising demand for spices fueled by expansion of spice mixes. e surge in grow is majorly originated from grow in chilly and turmeric as a segment of spice market. e grow in is segment has largely been led by e domeic factors such as increase in e area under cultivation and increasing demand from international markets. Unorganized segment has been dominating e spices market in India for la many years. e dominance of e unorganized segment in spices market in India can be attributed to e presence of huge number of local players selling open and unbranded products in e market.

e market for spices and seasoning has witnessed eady grow in recent decades due to rising demand for functional foods across e globe, wherein some select spices meant to provide immunity, such as turmeric, ginger, and garlic, have received tremendous responses from consumers globally. Additionally, e demand from consumers for high-quality healy food ingredients, along wi e increased preference for trying out new flavors in e foodservice sector and processed food products, is supporting e overall spices and seasoning markets grow globally, leading to an upward trend during e foreca period.

e global oleoresin market size was decently valued in 2021 and is anticipated to witness a compound annual grow rate (CAGR) of 6.9% from 2022 to 2030. Growing demand from healcare, pharmaceutical, food, and beverage induries are driving forces of e global oleoresin market. Oleoresins are made from varied ingredients and spices, which are found all around e world. It is usually found in semi-solid extract form. A variety of oleoresins has multiple characteriics based on e spice ey are derived from. ey exhibit numerous erapeutic as well as antioxidant properties as well and are utilized in e pharmaceutical, healcare, food, and beverage induries. e data for is oleoresin market came primarily from interviews wi top market indury experts, different sources and research.

OPPORTUNITIES AND REATS:

Opportunities:

1. Venture into ready to eat food segment present a huge opportunity for company.

2. Increasing consumption of processed meat, confectionary and baked food products is likely to boo e demand for oleoresins as a food flavoring agent.

3. Liing e company under a ock exchange will open up huge avenues of capital for e company to support its expansion plans and allows it to venture into new businesses

reats:

1. e new introduced regulatory norms in e spices market also pose a significant challenge.

2. Intervention of Government viz-a-viz import & export of spices is causing upheavals in e market hence affecting bo demand and price.

3. Conant increase in cos in terms of raw material inputs, services, power and fuel. e huge surge in cos continues to be a point of concern for e Company.

SEGMENT -WISE /PRODUCT WISE PERFORMANCE:

e company doesnt have any oer segment or products and it is mainly involved in trading of Oer Agricultural Products.

RISKS AND CONCERNS:

Employee, input and raw material cos have continued to increase unprecedentedly is year. Heavy rains and oer climatic changes have made it hard to get agricultural inputs on time and reatened eir timely availability is year and e war in Ukraine causes significant challenges for co and supply chain.

INDURY OUTLOOK:

Oleoresin is a natural extract from plants at is used as a flavoring and coloring agent in e food, pharmaceutical, and cosmetic induries. ese days natural products are obtaining more awareness among e people across e globe as ey are looking for safer, healier and more suainable alternatives to conventional products. e main factors driving e market grow are e increasing demand for natural and organic products, e rising popularity of enic cuisines, and e growing awareness of e heal benefits of oleoresins. e natural products market is growing rapidly, is grow is driven by factors such as consumer preference, innovation, reduced environmental impact and enhanced social responsibility. e Chilli Oleoresin products are used in pharmaceutical applications due to eir antioxidant, anti-cancer, and anti-inflammation features. ey help in reducing e free radicals in e human body.

INTERNAL CONTROL SYEMS AND EIR ADEQUACY

e Company has proper and adequate syems of internal controls in order to ensure at all assets are safeguarded again loss from unauorized use or disposition and at all transactions are auorized recorded and reported correctly.

e Board of Directors has been entrued wi e responsibility of reviewing e findings and to inveigate and take necessary actions wherever required.

DISCUSSION ON FINANCIAL PERFORMANCE WI RESPECT TO OPERATIONAL

PERFORMANCE:

e Financial atements of e Company for e financial year ended 31 March, 2025 have been prepared in accordance wi e applicable Indian Accounting andards (Ind AS) and e provisions of e Companies Act, 2013.

During e year under review e operating turnover of e company was declined to Rs.862.38 Lakhs as compared to Rs. 952.96 Lakhs in e previous year.

e Company has earned e Profit/Loss for e year amounting to Rs. (254.48) as compared to a Net Profit of Rs. 34.86 Lakhs in e previous year.

HUMAN RESOURCES/ INDURIAL RELATIONS:

Human resources are e back bone of any organization. We rive to offer our employees a dynamic and rewarding environment based on rong organizational values and individual abilities. e Company maintains eir human capital grow in line wi e demand. e companys retention rategy for talented employees includes offering competitive salaries and benefits, creating a positive and inclusive work culture, and enabling flexibility, work life balance, recognition and grow opportunities.

PERFORMANCE REVIEW:

Discussion on Financial Performance wi respect to Operational Performance: i. Total Income as on 31 March 2025 is 862.38 Lakhs. ii. Share Capital: e Paid-up share Capital as on 31 March, 2025 is 529.60 Lakhs. iii. Net Profit /Loss as on 31 March, 2025 is (254.48) Lakhs. iv. Earnings per Share (EPS) as on 31 March, 2025 are (4.81).

e Earning per Share for e Financial Year 2024-25 is Rs. (4.81) per share (Face Value: Rs.10/- each). Your directors are putting continuous efforts to increase e performance of e Company and are hopeful at e performance in coming year will overcome from e present situation.

CAUTIONARY ATEMENT:

atements in is management discussion analysis describing e Companys objectives, projections, eimates, expectations may be forward looking wiin e meaning of applicable securities-laws and regulations. Actual results may differ materially from ose expressed in e atement. Important factors at could make difference to Companys operations include economic conditions affecting e domeic market and e overseas markets in which e Company operates, changes in e Government regulations, tax laws and oer atutes and oer incidental factors.

Ratio	Numerator	Denominator	31 March 2025	31 March 2024	% change	Reason for variance
Current ratio	Current Assets	Current Liabilities	1.10	1.97	-44.29%	Note A
Debt- Equity		Shareholders
	Total Debt		1.30	0.24	451.37%	Note B
Ratio		Equity
Debt Service	Earnings for debt	Debt service =	0.54	-0.10	-658.78%	Note C
Coverage	service = Net profit	Intere & Lease
Ratio	after taxes + Non-	Payments + Principal
	cash operating	Repayments
	expenses
Return on	Net Profits after	Average	-0.21	0.03	-897.32%	Note D
Equity ratio	taxes - Preference	Shareholders Equity
	Dividend
Inventory	Co of goods	Average
			1.30	1.10	18.25%	-
Turnover ratio	sold	Inventory
Trade	Net credit sales =	Average Trade	1.89	3.03	-37.46%	Note E
Receivable	Gross credit sales -	Receivable
Turnover Ratio	sales return
Trade Payable	Net credit	Average Trade	8.18	4.36	87.68%	Note F
Turnover Ratio	purchases = Gross	Payables
	credit purchases -
	purchase return
Net Capital	Net sales = Total	Working capital =	5.63	1.99	182.96%	Note G
Turnover	sales - sales return	Current assets -
Ratio		Current liabilities
Net Profit ratio	Net Profit	Net sales = Total	-0.30	0.04	-911.60%	Note H
		sales - sales return
Return on	Earnings before	Capital Employed =	-0.12	0.02	-716.06%	Note I
Capital	intere and taxes	Tangible Net Wor +
Employed		Total Debt + Deferred
		Tax Liability
Return on	Intere (Finance	Intere (Finance	NA	NA	NA
Invement	Income)	Income)

 

	By Order Of e Board of Directors
	FOR NATURITE AGRO PRODUCTS LIMITED
	Sd/-	Sd/-
	G VALLABH REDDY	K. PRABHAKAR REDDY
Place: Hyderabad	Managing Director	Director
Date : 02.09.2025	DIN: 01006373	DIN: 00966105