Premier Capital Services Ltd Management Discussions

Annexure "III"

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.

SEGMENT WISE OR PRODUCT-WISE PERFORMANCE

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.

OUTLOOK

In the fiscal year 2026, the Indian economy is anticipated to exhibit moderate growth relative to the preceding financial year, with an anticipated real GDP growth ranging from 6.3% to 6.8%. However, this is from a significantly high baseline. Consequently, India is positioned to reinforce its status as one of the fastest-growing major economies, thereby substantially contributing to global GDP growth.

Nevertheless, external risks such as a global economic slowdown, geopolitical tensions and protectionist policies that lead to trade disruptions could adversely affect Indias future economic prospects. Furthermore, a deceleration in urban consumption, an increase in food inflation and sluggish growth in capital formation are also likely to impact the growth trajectory.

OPPORTUNITIES

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. THREATS

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.

RISKS AND CONCERNS

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

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

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.

FINANCIAL PERFORMANCE AND FINANCIAL RATIOS

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 comparedto the immediately previous financial year) in key financial ratio:

Details of change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof

Reason for change in Return on Net Worth: The Company reported a diminution in investment of Pumarth Infrastructure Private Limited by Rs. 1,248.74 Lakhs. This diminution is a result of the amalgamation of Pumarth Properties & Holdings Private Limited, Pumarth Meadows Private Limited, and Nishant Finance Private Limited with Pumarth Infrastructure Private Limited due to which there is decrease in Networth.

HUMAN RESOURCE / INDUSTRIAL RELATIONS

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.