Neelkanth Ltd Management Discussions

Your directors are pleased to present the Management Discussion and Analysis for the financial year ended 31st March, 2024.

A. INDUSTRY STRUCTURE AND DEVELOPMENTS:

BUSINESS OVERVIEW

Your Company is into trading of Agri products, mainly rice. Your Company exports rice from India. Further, your Company also does trading locally. In developing economies, the growth is powered by increasing young population, growing disposable income, life-style changes etc. In developed economies where penetration and usage are already high, new products addressing needs are emerging to expand and/or change the face of the market. Changing economic and business conditions, evolving consumer preferences, rapid technological innovation and adoption and globalization are creating an increasingly competitive market environment that is driving corporations to transform the manner in which they operate.

GLOBAL SCENARIO

Rice, wheat and maize are the three most important crops cultivated worldwide. Rice, on the other hand is a staple food for about half the global population. Rice supply in emerging economies is inextricably linked to both political stability and food security.

On July 20 2023, the government had imposed an export ban on non-basmati rice in response to a sharp rise in domestic rice prices. The export ban has led to concerns globally as India accounts for about 40 per cent of the international trade in rice and stopping supplies could lead to a rise in world prices of the cereal.(Business Line dt.15.8.2023).

Agricultural sector plays a crucial role in the economy with about half of the Indian workforce engaged in the sector. According to an article in the Harvard Business Review, global food demand is expected to increase by up to 98% by 2050. An exponential increase in production and productivity will be required to meet the growing needs of an increasing population at a time when natural resources are fast depleting and the impact of climate change is becoming more severe.

Despite global uncertainty and headwinds, the economy performed well. India remains a relatively bright spot in the global economy, as per the International Monetary Fund (IMF). It is expected to remain the fastest-growing Asian economy and one of the fastest-growing in the world. A conducive domestic policy environment, along with the governments focus on structural reforms, kept domestic economic activity in India robust.

Approximately 85% of world basmati exports are from India and therefore, countries looking to purchase basmati rice have limited alternatives.

India is one of the largest consumers of rice, which is mainly consumed as a staple food by more than 70% of the population. Indian Basmati rice exports are expected to post strong growth on the back of improved demand in the international market.

The Global Basmati Rice Market is estimated to be USD 6.09 Bn in 2023 and is expected to reach USD 6.87 Bn by 2028, growing at a CAGR of 2.1%.

India is the largest market, with a share over 70%, followed by Pakistan and Kenya, both have a share over 20% percent.In terms of product, Indian Basmati Rice is the largest segment, with a share over 70%. And in terms of application, the largest application is Direct Edible followed by Deep Processing.

The Asia Pacific is the leading producer of rice, globally. The region accounts for almost 90% of the global production. China is the leading rice producer, followed by India. However, basmati rice, specifically, is primarily grown in India and Pakistan. India is the largest producer of basmati rice, accounting for over 70% of its output in the global basmati rice market. The country is also the leading exporter of basmati rice. The strengthening exports is a combined result of an increasing demand from Iran and the rise in prices that have been taking place over the last three years. Haryana, Punjab, Himachal Pradesh, Rajasthan, Uttarakhand, Uttar Pradesh, Jammu and Kashmir, and Delhi are the major basmati rice producing states in India. In Pakistan, the Punjab province is the largest producer of the paddy crop.

The Middle East and Africa are significant consumers of basmati rice, which accounts for 37.5% of their total consumption of the paddy crop. GCC countries are the major importers of the basmati variety of the paddy crop. The steady increase in imports from Saudi Arabia and Iran is driving the rise of Indian exports of basmati rice. Iran was followed by Saudi Arabia and the United Arab Emirates are the significant importing countries of the basmati variety from India. Algeria, Somalia, and Kenya are the major importing countries in Africa. Europe and the US are also significant consumers of the basmati variety.

Rice is broadly divided into basmati and non-basmati varieties. Basmati is a rice type which was originally found in the Indian subcontinent and is traditionally consumed as part of Indian and other South Asian cuisines. It has a long and slender grain and is aromatic when cooked. It is either served plain or with accompaniments. It is also cooked with spices to make savoury rice dishes. They are available in either raw or parboiled forms.

B. OPPORTUNITIES AND THREATS

i. OUR STRENGTHS

We believe in our competitive strengths including leadership in delivering good quality product that enable clients in turn to deliver improved business results in addition to optimizing the efficiency of their business. Our proven, commitment to quality and process execution, strong brand, long-standing client relationships, commitment and dedication will eventually take us to the position of a leading competitive player.

Experienced Management: One of the key strengths is highly experienced management and management team helping the Company to source the agricultural produce at right time at competitive prices, quality and quantum.

Agriculture remains the backbone of Indian economy and is likely to remain core to the development of our multi-trillion dollar economy journey. Modern input and tools are being deployed to improve the output and efficiency of our farmlands.

ii. HUMAN CAPITAL

Skilled and dedicated employees are essential to organisations success. All our actions are aimed at providing opportunities to developing talent. The Companys total employee strength as on 31st March, 2024 stood at 8. Employees are encouraged and motivated to grow across the organisation, while personal and professional growth is ensured through regular interventions. The Company maintains harmonious and friendly relations with its employees.

Your company strongly believes that our people are our greatest assets, they give your company its unique competitive edge. Your company recognizes and nurtures their strengths through a structured Talent Management process focused on capability building. The process also ensures continuous talentavailability, through job rotations, job enlargements, Cadre building programs, leveraging talent for different roles. Your company is committed to continuously engaging its employees as key drivers for shareholder value creation. Customized Unit level and Manager level Employee engagement action plans have enabled our company to take positive steps in this journey. Employee morale was fostered through encouraging "appreciation sharing”.

iii. OUR STRATEGY

With the objective to sustain growth, your Company is pursuing several strategic initiatives in all key areas of business. The key elements of strategy include strengthening the product portfolio, refresh and update existing products and strengthen the Marketing Team. In addition, your Company is pursuing expansion in overseas markets. Establishing the channel and building the brand in key focus markets remain the priorities for your Company. We seek to further strengthen our march towards a leading global Agri product trading and export house by:

Strengthening our strategic partnership with our clients.

Increasing our relevance to clients by being able to work in the entire spectrum of their business.

Delivering higher business value to clients through the alignment of our structure and offerings to their business objectives.

To achieve these goals, we seek to increase business from existing and new clients, continue to enhance our engagement models and offerings, expand geographically, continue to develop deep industry knowledge, pursue alliances and strategic acquisitions, enhance brand visibility and continue to invest in infrastructure and employees.

iv. OPPORTUNITIES

The country witnessed a record foodgrain production of 3296.87 Lakh Metric Tonnes (LMT) during the agricultural year 2022-23 registering an increase of 30.82% as compared to 2520.25 Lakh Metric Tonnes (LMT) in 2014-15. Further, during 2022-23 the production of rice, wheat and pulses stood at 1357.55 LMT, 1105.54 LMT and 260.58 LMT respectively registering an increase of 28.7%, 27.77% and 51.90% over their respective production of 1054.82 LMT, 865.27 LMT and 171.54 LMT during 2014- 15. The growing foodgrains production in the country is due to higher budget allocation to agriculture sector and successful implementation of various scheme and programmes by the Ministry of Agriculture and Farmers Welfare.

The Governments initiative to promote Farmer Producer Organisations (FPOs) as the core catalyst of agricultural transformation can indeed leverage economies of scale, enable sustainable agriculture, support market-led production and create larger market access. FPOs provide the power of the collective to small and marginal farmers. FPOs have a tremendous potential to serve as major enablers in augmenting farm livelihoods, by facilitating a crucial link between markets and individual farmers.

The agricultural sector, which is estimated to constitute 18 per cent of Indias GVA in FY24, is the bedrock of the nations economy. Despite challenges posed by the global health crisis and variability in climate conditions, the sector has demonstrated remarkable tenacity and resilience, contributing significantly to Indias economic recovery and development. Ensuring food security is a cornerstone of government policies, especially for vulnerable populations. Timely and efficient procurement and distribution of food grains are paramount. The improved performance is also reflected in a substantial surge in agriculture exports, reaching ?4.2 lakh crore in FY23, surpassing the previous years records. Given opportunities

and an appropriate policy setting, Indias farmers have demonstrated their capability to meet food demand of the rest of the world. The potential is still huge.

The improved performance is also reflected in a substantial surge in agriculture exports, reaching ?4.2 lakh crore in FY23, surpassing the previous years records. Given opportunities and an appropriate policy setting, Indias farmers have demonstrated their capability to meet food demand of the rest of the world.

(The Indian Economy- A Review January 2024-Department of Economic Affairs):The Food Safety and Standards Authority of India (FSSAI)23 has recently specified the identity standards for Basmati Rice to come into effect on 1 August, 2023. This will make it significantly easier for consumers and customers to evaluate the quality of basmati.

v. THREATS

The Agri sector remains vulnerable to the vagaries of climate change, facing considerable challenges as a primary source for food, fuel, fibre, fodder and livelihood security. It is pertinent to note that a substantial quantum of food is wasted along the chain in India, depending on the inherent perish ability of the crop and the season.

The Company is significantly exposed to climate-change risks, as the supply of paddy, its key input, relies on the monsoon. Paddy cultivation is water-intensive, posing sustainability challenges for this critical natural resource. While these environmental factors create supply-side risks.

The synchronized global recession coupled with dramatic changes in the financial landscape is further decelerated the growth. Compared to other economies, India has been somewhat stable as the Government has taken some proactive steps to combat the situation.

C. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

COMPANY AND PERFORMANCE OVERVIEW

During the financial year 2023-24, your Companys revenue was Rs. 571.85 Lakh whereas revenue figures for the previous year were Rs.317.17 Lakh.

Your Company follows strong customer engagement leading new business from existing and new customers. We have intensified new customer development and is hopeful to see the demand pick up as the macroeconomic conditions see a turnaround helped by Government initiatives.

Sr. No.	Particulars	For the financial year ended 31st March, 2024	For the financial year ended 31st March, 2023
1.	Income
	(a) Revenue from operations	571.85	317.17
	(b) Other income	4.47	1.94
	Total Income	576.32	319.11
2.	Earnings before interest, taxes, depreciation and amortization	45.65	33.15
	Less: Finance costs	5.12	13.93
	Less: Depreciation	10.39	10.20
3.	Profit before tax	30.14	9.02
4.	Less: Tax Expense:
	Current Tax	-	-
	Deferred Tax	-	-
	Income tax of earlier years	-	-
5.	Profit / (Loss) for the year	30.14	9.02
6.	Add: Other Comprehensive Income	(0.75)	-
	Total Comprehensive Income	29.39	9.02

The global basmati rice market is being aided by the superior quality, taste, and aroma of the product, which are driving the consumer preference for the product. The basmati variety forms an integral part of the Middle Eastern cooking. It is used to cook lavish dishes which contain layers of rice, meats, and dried fruits. It also forms a part of the staple diet of many cultures, thus, further aiding the industry growth. The increasing export demand from the Middle Eastern countries is also propelling the global basmati rice market forward. The US and Europe, too, are significant importing countries.

The rising population is also acting as a catalyst for the growth of the global basmati rice market. The increasing disposable income in the major consuming nations is driving the market growth. The rising disposable income is leading to increased consumption of premium products and, thus, is providing further impetus for the global basmati rice market growth as basmati rice is perceived as a premium variety.

PRICE ANALYSIS

In India, Basmati paddy prices have been rising for the past few years. The prices are expected to continue growing in the current year due to increased demand and bottlenecks in production and the decline in cultivation area.

Indian Rice Industry: Market Share & Forecast On the basis of rice variety, milled rice accounted for the largest market share in India with 80.3% of total rice production. Over the forecast period milled rice is expected to continue their dominance in the rice production.

D. OUTLOOK

The market size of the Indian rice industry is projected to grow steadily in the coming years, driven by the cultivation of high-yielding rice varieties and favorable climatic conditions. Indias position as the second-largest rice producer globally, along with its status as the top rice exporter, contributes to the markets expansion. The regular onset of monsoons in the country plays a significant role in boosting rice production, resulting in higher productivity compared to other Asian nations. The primary rice-producing regions in India also play a crucial role in the market size of the industry. The India Rice Market size is estimated at USD 52.82 billion in 2024 and is expected to reach USD 59.46 billion by 2029. India is well-known for both basmati and non-basmati rice production.

The increasing production is further fueled by the growing demand for rice from countries across the world. In addition to this, support from the government, favorable monsoons, the rising number of rice processing industries, etc have positively affected the production of rice in the country in the past few years.

Thanks to the favourable climatic conditions prevailing in India, over the years, the nation has emerged as the second largest rice-growing country worldwide. It doesnt matter how its cooked - steamed, boiled or fried - rice is included in pretty much every meal of the day in India. Basmati Rice is one of the most demanded ingredients in the world. It is an indispensable staple diet. As India is the worlds largest producer of quality basmati and non-basmati rice, a huge amount of rice is exported to the world annually. A large portion of the rice export by India contributes to the world economy.

E. RISKS AND CONCERNS

The Board of Directors and the Audit Committee of the Board review the business risks to which your Company is exposed and the mitigation plans. The senior management team led by the Director and CFO is entrusted to manager risks pro-actively with appropriate mitigation measures and implementation thereof.

KEY RISKS TO WHICH YOUR COMPANY IS EXPOSED INCLUDE

a. Escalation in prices and its impact on Orders received

Your Company, sometimes, gets order for export of rice in bulk quantities. The supply to be completed within the period specified therein. Though your company takes enough precautions before accepting such orders, sometimes, price fluctuation in the local market affects the company. However going forward, keeping the possibility of the commodity prices firming up, your Company continues to watch the market situation closely and continues to focus on cost re-engineering and value engineering to remain cost competitive.

b. Currency volatility

Your Company is in to export of goods and Foreign Exchange Risk is associated with export business. Fluctuations in exchange rate will affect the company. Your company has adopted risk mitigates to address the issue.

c. Attracting and retaining talent

As with any other business, high demand for talent globally impacts employee turnover. Your Company addresses this to the best possible extent by being an empowering organization with a professional management culture and maintaining a lean structure.

d. Impact on margins and product quality due to various reasons (climatic change, government policies, farmer shift to alternate profitable crops, etc.)

Sustainable farming goals are focused on: building direct connect with farmers

Increase the farmers income by increasing productivity at farm, reducing chemical consumption, reduction in other costs, better soil health amongst others. reduction in water consumption

e. Wage increases in the developing markets

This could impact costs and margins. Your company has been successful in containing the head count and managing the employee costs.

f. Monsoon

Agriculture in India is largely dependent on the monsoon. As a result, production of food-grains fluctuates year after year. A year of abundant output is often followed by a year of acute shortage in key crops.

Agriculture continues to be dependent on the vagaries of temperature and rainfall. Not only is quantity of rain important, but timing is even more critical. Rapidly changing climatic conditions and the impact of global climate change is having a drastic effect on the performance of crops as well as cropping patterns.

g. Irrigation

Although India is the second largest irrigated country of the world after China, only one-third of the cropped area is under irrigation. Irrigation is the most important agricultural input in a tropical monsoon country like India where rainfall can be uncertain.

h. Raw Material Risk

Quality rice production necessitates smooth supply of premium paddy as the key raw material and any price or production fluctuations of this commodity can hit profitability and adversely impact the Companys business.

Strong farmer relations, built over years through a well-established contact farming system, insulates the Company from this risk.

i. Scarcity of Raw Material supply due to unavoidable reasons

The Company carries sufficient amount of stock against its confirmed orders to avoid any such disruption on this account.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a well-placed, proper and adequate internal financial control system which ensures that all assets are safeguarded and protected and that the transactions are authorized, recorded and reported correctly.

Your Company has in place internal control systems and a structured internal audit process charged with the task of safeguarding the assets of your Company and ensuring reliability and accuracy of the accounting and other operational data. The internal audit department reports to the Audit Committee of the Board of directors. Your Company has a system of quarterly review of business as a key operational control wherein the performance is reviewed and corrective action is initiated.

The Audit Committee, the Statutory Auditor and the top management are regularly apprised of the internal audit findings, and regular updates, if any, provided at the Audit committee meetings of the Action taken on the internal audit reports. The Audit Committee of the Board consisting of non- Executive independent Directors reviews the quarterly, half yearly and the annual financial statements of your Company. A detailed note on the functioning of the Audit Committee and of the other Committees of the Board forms part of the section on corporate governance in the Annual Report.

Market Trends, Drivers, and Challenges

The Food Safety and Standards Authority of India (FSSAI)23 has recently specified the identity standards for Basmati Rice to come into effect on 1 August, 2023. This will make it significantly easier for consumers and customers to evaluate the quality of basmati.

As per FAQ, India is the second largest producer of paddy globally after China followed by Indonesia. In 2021, China produced 214.43 MMT of paddy, India produced 169.14 MMT followed by Indonesia at 55.25 MMT.

Rice is one of the three major crops cultivated worldwide, along with wheat and corn. However, rice is the most important crop that is used as a primary food source. In developing countries, the availability of rice is closely tied to the food security and political stability. Feeding more than half of the global population, just 10 countries produce nearly 84% of the global rice requirement

In the era of technology advancement, there is trend of producing genetically modified (GM) rice to ascertain the quality of rice and food security. Though commercially there is no production of GM rice, but many varieties have been approved for commercial production which is expected to boost the India rice industry.

Rice is a staple crop for 70% of the world and thus the demand for rice is expected to continue to grow over the forecast period. The food security concerns all over the world is driving the growth of the Indian rice industry, which by exporting rice to various countries is contributing towards global food security.

ECONOMIC ENVIRONMENT:

Neelkanth Ltd. is a Public Limited Company, incorporated and domiciled in India and has its registered office in Mumbai, Maharashtra, India. It is listed in BSE Limited. The financial year 2023-24 has been a year marked with challenges for the global as well as the Indian economy.

India has emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships.

INDIAN AGRICULTURE AND ALLIED INDUSTRIES

India had the highest export volume of rice worldwide, at 16.5 million metric tons as of 2023/2024. Thailand was the second largest rice exporter, with about 8.2 million metric tons of rice worldwide in that year. The largest rice importers were the Philippines and China.

Agriculture is the primary source of livelihood for about 58% of Indias population.

Market Size

Agriculture and allied activities

• The performance of the agriculture and allied sector has been buoyant over the past several years, much of which is on account of the measures taken by the government to augment crop and livestock productivity, ensure certainty of returns to the farmers through price support, promote crop diversification, improve market infrastructure through the impetus provided for the setting up of farmer-producer organisations and promotion of investment in infrastructure facilities through the Agriculture Infrastructure Fund. The agriculture sector has been growing at an average annual growth rate of 4.6 per cent during the last six years. Growth in allied sectors including livestock, dairying, and fisheries have driven the overall growth in the sector

• Crop diversification towards oilseeds, pulses, and horticulture needs to be given priority. This requires addressing core issues of irrigation, investment, credit, and markets in their cultivation. There is a need for coordinated action from state governments to facilitate the shift to high value and less water consuming crops. Use of alternative fertilisers such as Nano Urea and organic fertilisers should be promoted. These fertilisers protect the soil, are more productive, and contribute to higher nutrient use efficiency.

G. DISCUSSION ON FINANCIAL INFORMATION WITH RESPECT TO OPERATIONAL PERFORMANCE

Overview

The financial statements of the Company have been prepared in accordance with Ind AS as per the Companies (Indian Accounting Standard) Rules, 2015 as amended and notified under Section 133 of the Companies Act, 2013 (the Act) and other relevant provisions of the Act.

Income

Of the total revenues for the year ended 31st March, 2024, approximately 99.22% were derived from sale of products and remaining 0.78%from other income like Interest Income, Rent received, profit on sale of flat, sundry balance written back, other receipts, etc.

Expenditure

Purchases of stock in trade includes Rice Purchase. Employee benefit expense relates to Salaries and wages and Staff welfare expenses. Finance cost relates to interest expense. Other expenses primarily represents repairs and maintenance, insurance, rate and taxes, travelling & conveyance expenses, telephone expenses, advertising expenses, legal and professional charges, etc.

Depreciation and amortization

We have provided Rs. 10.39 Lakhs and Rs. 10.20 Lakhs towards depreciation and amortization, for the financial years ended 31st March, 2024 and 31stMarch, 2023 respectively.

Sensitivity to rupee movement

Company is sensitive to change in US Dollar value change as one segment of the company is in to export. Provision for tax

We have no provided for our tax liability.

Net profit after tax and exceptional item

Net profit stood at Rs. 30.14 Lakh for the year ended 31st March 2024 in comparison with net profit of Rs. 9.02 Lakh in the previous year.

Earnings Per Share (EPS) after exceptional item

During the year, our basic EPS after exceptional item increase to Rs. 0.69 per share from Rs.0.21 per share in the previous year.

Financial condition

Sources of Funds

1. Share capital

Share Capital of your Company comprises of three classes of shares - equity shares having a face value Rs. 10/-each. Our authorized share capital is Rs 36.00 Crores, divided into 1,70,00,000 equity shares of Rs. 10/-each and 19,00,000 preference shares of Rs. 100/- each. The issued, subscribed and paid up capital stood at Rs. 435.90 Lakh as at 31stMarch, 2024, divided into 43,59,000 equity shares of Rs. 10/- each.

2. Reserves and Surplus Capital Redemption Reserve

The balance as at 31st March, 2024 stood at Rs. 5.53 Lakh/- same as the previous year.

Securities premium

The balance as at 31st March, 2024 stood at Rs. 355.67 Lakh /-, same as the previous year.

3. Application of funds Fixed Assest Additions to gross block

During the year under review, no fixed assets have been purchased.

Trade Receivables

Trade receivables amounted to Rs. 177.43 Lakhs as at 31st March, 2024, compared to NIL as at 31st March, 2023. These debts are considered good and realizable.

Cash and cash equivalents

Cash and cash equivalents include balance with Banks and cash in hand.

Financial Assets and other non-current assets

The following tables give the details of our Financial Assets and other non-current assets:

Financial Assets and other non-current assets. (Rs.in Lakh)

Particulars	31.03.2024	31.03.2023
Security Deposits	-	1.34
Loans & Advances (Related Party)	-	342.29
Advance Income Tax & TDS	-	0.32
Others	201.04	28.06
TOTAL	201.04	372.01

Current Liabilities and Trade Payables

(Rs.in Lakh)

Particulars	31.03.2024	31.03.2023
Trade Payables	95.95	5.82
Bank Overdraft	-	7.42
Others (Statutory Payments)	0.39	0.39
Others	22.86	16.26
TOTAL	119.20	29.89

H. MATERIAL DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYE

SALES AND MARKETING

The year witnessed an unprecedented move of demonetization by the government, right after the festive season got over. The Company took a hit on its trading during the year.

EXPORT

Export business of the Company did not do well during the year.

I. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR:

Key Financial Ratios:

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector specific financial ratios. The Company has identified following ratios as key financial ratios.

Sr. No.	Particulars	2023-24 (%)	2022-23 (%)	% of change
1.	Current Ratio	6.71	28.51	-21.8
2.	Debt Equity Ratio	0.05	0.06	-0.01
3.	Debt Service Coverage	3.03	1.72	1.31
4.	Return on Equity Ratio	3.19	0.98	2.21
5.	Inventory Turnover Ratio	1.02	1.27	-0.25
6.	Trade Receivables Turnover Ratio	6.45	1.82	4.63
7.	Trade Payables turnover Ratio	11.92	5.71	6.21
8.	Net capital turnover Ratio	0.84	0.39	0.45
9.	Net Profit Ratio (%)	0.05	0.03	0.02
10.	Return on Capital employed	0.04	0.02	0.02
11.	Return on Investment	-	-	-

Reasons for significant changes in key ratios:

1. Current Ratio - Decreased primarily due to increase of trade payables.

2. Debt Service Coverage Ratio - Increase due to decrease in interest expenses and increase in profit

during the year.

3. Return on Equity Ratio - Increase due to increase in profit.

4. Inventory Turnover Ratio - Due to closing inventory balance during the year.

5. Trade Receivables Turnover Ratio - Primarily due to increase in turnover and decrease in average trade receivables.

6. Trade Payables Turnover Ratio - Primarily due to decrease in average trade payables.

7. Net Capital Turnover Ratio - Primarily due to decrease in working capital and increase in Sales.

8. Net Profit Margin - Net profit ratio increases primarily due to better operating profit.

9. Return on Capital Employed Ratio - Primarily due to higher operating profit.

J. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

Return on Net Worth in the financial year 2023-24 is 3.19 % as compared to 0.98% in the immediately previous financial year 2022-23. During the financial year under review, return on Net Worth increased by 2.21% as compared to immediately previous financial year mainly because of increase in profit.

K. CAUTIONARY STATEMENT

Statements in this Annual report particularly those which relate to management discussion and analysis, describing your Companys objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results may materially differ from those expressed or implied.