Premier Capital Services Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

India has a large, growing and increasingly sophisticated dairy consuming population. Demand for dairy products is growing at a fast rate.

Dairy development programmes have eventually transformed India from a milk-deficient nation into the worlds largest milk producer. Our world leading agritech and dairy technology could make a huge difference to Indias agricultural productivity and dairy production efficiency. Today, India contributes one-fourth of the global milk output alone. The dairy companies not only provide nutritious milk and milk products at affordable prices to consumers but also provide livelihoods to crores of dairy farmers across the country.

Further, Dairy Industry strengthens the rural economy, develop the ecosystem of self- employment and small entrepreneurship, increase social inclusion, and increase opportunities to set new standards in innovation and research.

Your company is mainly engaged in the business of trader of dairy products such as milk, skimmed milk powder, ghee, butter, cheese etc. which are under one broad segment of the market, so segment reporting is not applicable to it.

In FY 2026-27, the Indian economy is expected to witness stronger growth compared to the previous year, with real GDP projected to expand between 7% and 7.4%, supported by robust private consumption.

While global uncertainties such as economic slowdown and rising protectionist measures could pose risks to growth, Indias ongoing trade engagements are expected to provide a counterbalance. Trade agreements with key partners such as the United Kingdom, the United States and the European Union are likely to strengthen bilateral trade by improving market access for goods and services.

These agreements emphasizes labour-intensive sectors, support the “Make in India” initiative, enhance export competitiveness and facilitate greater mobility for Indian professionals through simplified access for service providers, business visitors and independent professionals.

i. Increasing preference for packed and branded products over loose / unbranded products leading to increase in overall market.

ii. Lower fodder prices will improve Indias cost competitiveness in the global dairy landscape.

iii. E-commerce and quick commerce channel provide new opportunities for growth.

i. Dairy analogues, adulteration and plant-based products pose a major challenge and threat to the dairy industry specially to value added product category.

ii. Milk price volatility and regional disparities, including subsidies given by some states from time to time.

iii. Environmental issues and water scarcity.

i. The dairy industry faces threats such as foreign product introduction, increasing chemical contaminants, poor microbiological quality, export of quality feed ingredients, molasses deficiency, excessive grazing pressure on marginal lands, and the extinction of indigenous cattle breeds due to crossbreeding programs. The liberalization of the industry is also likely to be exploited by multinationals, leading to milk shortages and adversely affecting consumers.

ii. Subsidy to farmers by some states in the recent past has disrupted the overall commodity market

The Company has adequate internal control and Procedures systems commensurate with the nature of its business and the size of its operations. Continuous efforts are being made to see that the controls are designed to provide a reasonable assurance with regard to maintenance of accounting controls and assets from unauthorized use or losses. All significant audit observations and follow-up actions thereon are reported to the Audit Committee. The audit committee looks into all aspects of internal functioning and advises corrective action as and when required.

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 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 financial ratios.

The Company has identified the following (change of 25% or more as compared to the immediately previous financial year) in key financial ratio:

Reason for change in Return on Net Worth: The Company reported an increase in the FMV of the investment held due to which there is increase in Networth.

The Company regards its employees as valuable asset and continuously reviews and evolves policies and procedures to attract and retain its pool of technical and managerial personnel through a conducive work environment.