Pradhin Ltd Management Discussions

The Indian agriculture sector continues to play a pivotal role in the countrys economy, contributing significantly to GDP and employment. With increasing emphasis on food security, sustainable farming, and agro-based exports, the agro and agro-related products industry has witnessed notable growth.

Government initiatives such as PM-Kisan, Agri Infrastructure Fund, MSP support, and subsidies have further boosted farmers income and created demand for agro inputs and allied products.

The industry is also experiencing structural changes with adoption of technology, farm mechanisation, precision farming, organic agriculture, and increasing exports of value-added products.

2. Opportunities and Threats

Opportunities:

Growing domestic demand driven by rising population and urbanisation. Expanding export market for agro commodities and processed products. Increasing adoption of organic farming and sustainable practices.

Government support through subsidies, credit schemes, and infrastructure development.

Digital and technological interventions (AgriTech, AI, drones, precision farming).

Threats:

Dependence on monsoon and climatic variations. Price volatility in commodities. Rising input costs (fertilisers, fuel, labour). Global economic uncertainties impacting exports.

Stringent international quality and compliance standards.

3. Segment–wise or Product–wise Performance

The Company operates only in one segment i.e agro and agro products and hence segment reporting is not applicable

4. Outlook

The long-term outlook for the agro sector remains positive due to: Steady demand for food grains and value-added products. Rising focus on food processing and exports. Expansion of cold chain, storage, and logistics infrastructure. Increasing adoption of AgriTech solutions by farmers.

The Company is well positioned to leverage these opportunities through its diversified product portfolio, distribution network, and focus on innovation and sustainability.

5. Risks and Concerns

Key risks include:

Climate change, erratic rainfall, and natural calamities.

Government policy changes on pricing and exports.

Fluctuations in commodity prices and international trade restrictions.

Supply chain disruptions and logistics challenges.

The Company has adopted robust risk management practices, including hedging, insurance cover, and contingency planning to mitigate these risks.

6. Internal Control Systems and Their Adequacy

The Company has well-established internal control systems commensurate with the nature and scale of its operations. The internal audit function regularly reviews key business processes, risk areas, and compliance with applicable laws. The Audit Committee periodically reviews audit findings and monitors implementation of recommendations to ensure effective internal controls.

7. Financial Performance with Respect to Operational Performance

During FY 2024-25, the Company achieved a turnover of 2504.72 lacs as against 83.93 lacs in the previous year, registering a growth of 2884% . The loss during the year was Rs. 32.33 lacs as against loss of Rs. 42.97 in the previous year.

8. Human Resources / Industrial Relations

The Company considers its human resources as a vital asset. Various training, skill development, and welfare programs were conducted during the year to enhance productivity and employee engagement. As on 31st March 2025, the Company had 4 employees. Industrial relations during the year remained cordial.

9. Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, and expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially due to economic conditions, government policies, natural calamities, and other incidental factors.

Other Disclosures

a. Basis of related party transaction:

During the year under the review, related party transactions, if any, are disclosed in the Balance Sheet. Transactions are entered at arms length.

b. Disclosure of accounting treatments:

The Company has followed all relevant Accounting Standards while preparing the financial Statements.

c. Board Disclosures - Risk Management:

The Company has developed comprehensive risk management policy and same is reviewed by the Audit Committee, which in turn, informs the Board about the risk assessment and minimization procedures. Major risks identified for the Company by the management are Currency fluctuation, Compliance, Regulatory changes, Manufacturing & Supply, Litigation, Information Technology and new capital investments return. The management is however, of the view that none of the above risks may threaten the existence of the Company as robust Risk mitigation mechanism is put in place to ensure that there is nil or minimum impact on the Company in case any of these risks materialize. Since the risk control frame work is new to Indian Corporate Culture, it is being strengthened on continuous basis using the outside professional help.

d. Proceeds from public issues, right issues, preferential issues etc.:

During the year under review 19338640 equity shares were issued as rights shares at the rate of Rs. 10/- per share and premium of Rs. 15/- per share.

Further 10840000 shares were issued due to conversion of warrants at the price of Rs. 10/- per share and premium of Rs. 40/- per share.

During the year under review the face value of the share has been reduced from Rs. 10/- to Re. 1/- per share. Alongwith the split of share from Rs. 10/- per share to Re. 1 per share there was issued of bonus shares of 676548800 shares of Re. 1/- per share.

no fund raising by way of public issue, right issue or preferential issue was made.

Besides above, there was no instance of non-compliance of any matter related to the capital markets during the last three years.

Details of significant changes in key Financial Ratios & Return on Net worth

Pursuant to amendment made in schedule V to the Listing Regulations, details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in Key Financial Ratios and any changes in return on net worth of the Company (on standalone basis) including explanations therefor are given in notes to the financial statements. Members are requested to refer the same.

Cautionary Statement

The above Management Discussion and Analysis contains certain forward looking statements within the meaning of applicable security laws and regulations. These pertain to the Companys future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions with respect to investments, fiscal deficits, regulation etc. In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time on behalf of the Company.