Pervasive Commodities Ltd Management Discussions

A. Global Economic Outlook:

The global economic landscape in the financial year 2024 25 witnessed a mixed trend, shaped by evolving geopolitical tensions, inflationary pressures, interest rate fluctuations, and changing consumer demand patterns. The commodity markets, being inherently sensitive to global macroeconomic indicators and geopolitical events, remained particularly volatile during the year.

Commodity markets form a critical part of the global trade ecosystem, dealing predominantly in primary economic sector products. These include soft commodities, such as agricultural products (wheat, coffee, cocoa, sugar), and hard commodities, such as metals and energy resources (gold, oil, etc.). The year saw a continued surge in participation in global commodity markets, with financial transactions increasingly outpacing physical deliveries a trend driven by investor sentiment, hedging strategies, and speculative trading.

Amid these dynamics, futures contracts continued to dominate commodity trading, offering liquidity and risk management tools for both producers and investors. The increased use of derivative instruments including spot contracts, forwards, futures, and options added further depth to global commodity exchanges.

During F.Y. 2024 25, supply chain disruptions, unpredictable weather patterns, and regional conflicts played a significant role in influencing commodity prices. Furthermore, central banks monetary policies, especially in the US, EU, and emerging economies, directly impacted commodity-linked currencies and capital flows into the sector.

Despite the challenges, global demand for key commodities remained robust, supported by industrial recovery in certain sectors, increased infrastructure investments, and a gradual shift towards sustainable and resource-efficient practices. As a participant in this evolving landscape, M/s. Pervasive Commodities Limited remained vigilant, continuously adapting to market trends and aligning its strategies with global developments to safeguard stakeholder value

B. Overview of the Indian Economy:

Indias economy maintained steady growth in F.Y. 2024 25, with GDP expanding at an estimated 7.2%, driven by strong domestic demand, infrastructure investment, and policy reforms. Despite global headwinds and inflationary pressures, macroeconomic stability was largely preserved through prudent fiscal and monetary measures.

Agriculture showed moderate performance due to uneven monsoons, while manufacturing and services sectors saw improved momentum. Inflation, particularly in food and fuel, remained a concern but was managed through timely interventions by the Reserve Bank of India.

For the commodity sector, global price volatility and currency fluctuations posed challenges, but supportive government policies and improved trading infrastructure created new growth opportunities. M/s. Pervasive Commodities Limited remained focused on leveraging these developments to strengthen its market position.

C. Industry structure and development:

The commodity market, encompassing both soft commodities like wheat, coffee, and sugar, and hard commodities such as gold and crude oil, continues to be a crucial component of the global trading ecosystem. Traditionally dominated by physical trading, the industry has increasingly shifted towards financial transactions, with derivative instruments like spot contracts, forwards, futures, and options gaining prominence. Futures contracts, secured by underlying physical assets, remain a cornerstone of commodity trading, offering participants avenues for hedging and price risk management.

In India, commodity markets have witnessed steady growth, supported by technological advancements, increased participation, and regulatory reforms. Exchanges like MCX and NCDEX have enhanced transparency, efficiency, and accessibility for a broad range of stakeholders. M/s. Pervasive Commodities Limited continues to align with these market developments, leveraging improved infrastructure and evolving trading mechanisms to strengthen its position in the commodity segment.

D. Opportunities and Threats:

Opportunities:

Rising demand for key commodities in both domestic and international markets. Government schemes promoting agricultural and commodity infrastructure. Growth of digital and online commodity trading platforms. Expanding export opportunities for Indian commodities. Wider adoption of hedging instruments like futures and options. Emerging market for sustainable and responsibly sourced commodities.

Threats:

High price volatility due to global and local disruptions. Regulatory uncertainty impacting trade and compliance. Adverse climate conditions affecting supply and output. Geopolitical issues disrupting global trade flows. Exchange rate fluctuations impacting margins. Rapid technological changes requiring constant upgrades.

E. Segment-wise or Product-wise performance:

The Company is primarily engaged in single segment i.e. Agricultural Product Trading.

The Turnover of the Company for the Financial Year 2024-25 is Rs. 3027.60 Lakhs

F. Future Outlook:

The Company presents the analysis of the Company for the year 2024-25 & its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic & other developments, both in India and abroad.

G. Risks and concerns:

The company operates in a dynamic and volatile commodity market, exposing it to risks such as price fluctuations, regulatory changes, and geopolitical uncertainties that can impact supply and demand. Additionally, climate variability poses a threat to agricultural commodity availability, while currency exchange rate volatility affects international trade margins. Technological disruptions and cyber risks also require ongoing vigilance to safeguard operations. M/s. Pervasive Commodities Limited continuously monitors these risks and implements robust mitigation strategies to protect stakeholder interests and ensure business continuity.

H. Internal control systems and their adequacy:

M/s. Pervasive Commodities Limited has established a robust internal control framework designed to ensure accuracy, reliability, and transparency in its financial reporting and operational processes. The company regularly reviews and updates its controls to mitigate risks related to compliance, asset protection, and process efficiency. Periodic internal audits, along with strong checks and balances, help identify and address gaps promptly. The management is confident that the current internal control systems are adequate and effective in supporting the companys business objectives and regulatory requirements.

I. Discussion on financial performance with respect to operational performance:

The financial performance of the Company for the Financial Year 2024-25 is described in the Directors Report of the Company.

J. Material developments in Human Resources / Industrial Relations front including number of people employed:

The cordial employer - employee relationship also continued during the year under the review. The Company has continued to give special attention to human resources.

K. Material Financial and Commercial Transactions:

During the year there were no material financial or commercial transactions.

L. Key Financial Ratios:

In accordance with the SEBI (Listing Obligations and Disclosures Requirements) Regulations 2018 (Amendment) Regulations, 2018, 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. In this regard, the Company has significant changes in key sector specific financial ratios is described in the Financial Statement along with reason for the variance in this Annual Report.

M. Human Resources:

These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company operations include global and domestic demand supply conditions, Government regulations, tax regimes, economic developments and other factors such as litigation and business relations.

N. Caution Statement:

Statements made in the Management Discussion and Analysis describing the various parts may be “forward looking statement” within the meaning of applicable securities laws and regulations. The actual results may differ from those expectations depending upon the economic conditions, changes in Government. Regulations and amendments in tax laws and other internal and external factors.

Registered Office:					By the Order of the Board of
C-806, Titanium City			Canter,	Near	Pervasive Commodities Limited
Sachin Tower, 100 Ft Road, Satellite,
Jodhpur	Char	Rasta,	Ahmedabad,
Ahmadabad	City,	Gujarat,		India,
380015
					Sd/-	Sd/-
					Parul Dharmeshkumar Dataniya	Fagun Chandrakant Soni
Place: Ahmedabad					Director	Managing Director
Date: 8th	September, 2025				DIN: 09785793	DIN: 10610730