Prime Fresh Ltd Management Discussions

The Global Economic Overview / Outlook:

In 2024, the global economy navigated moderate growth amidst persistent inflationary pressures and geopolitical instability. The global economy expanded to 3.3% in calendar year 2024, up slightly from 3.2% in 2023. A year marked by significant global elections, the immediate impact of which is evident, while long term effects remain to be seen, added another layer of complexity. Monetary policy, particularly interest rate adjustments in major economies, remained a central focus. Trade tensions and supply chain disruptions continued to strain global commerce and investment, while geopolitical volatility persisted. Concurrently, technological advancements, especially in AI and renewable energy, presented both, significant opportunities for productivity gains and challenges related to workforce adaptation.

The global economic outlook for 2025 is marked by cautious optimism amid persistent uncertainties. The International Monetary Fund (IMF) estimated Global growth stood at 3.0% for 2025 and estimated 3.1% in 2026. Growth in advanced economies is projected to be 1.5 percent in 2025 and 1.6 percent in 2026. In the United States, with tariff rates settling at lower levels and looser financial conditions, the economy is projected to expand at a rate of 1.9 percent in 2025. In emerging market and developing economies, growth is expected to be 4.1 percent in 2025 and 4.0 percent in 2026. In India, growth is projected to be 6.4 percent in 2025 and 2026 reflecting a more benign external environment while growth in China is projected to be 4.2% reflecting the lower effective tariff rates.

Rising trade tensions are expected to significantly constrain global trade activity. The IMF now projects global trade volume growth to decelerate sharply, from 3.8% in 2024 to just 1.7% in 2025 but rebounded to 2.5% in 2026. The downgrades primarily driven by the direct impact of new trade measures, as well as their indirect effects through disrupted trade linkages, increased uncertainty, and weakening market sentiment.

Indian Economic Overview

World-wide, the electoral outcomes, coupled with ongoing geopolitical and economic uncertainties, influenced the global environment for businesses and policymakers. The rise of AI and the green transition are reshaping activities by driving innovation, improving efficiency and redefining industrial landscapes. Amidst these disruptions, India continued its growth push, emerging as the fastest growing large nation. India performed well on major macroeconomic indicators like GDP, inflation, foreign exchange, fiscal health etc. India remained among the fastest-growing major economies globally, retaining its position as the worlds fifth-largest economy in nominal GDP terms and the third largest in purchasing power parity (PPP). As per the Second Advance Estimates of National Income released by the National Statistical Office (NSO) in February 2025, Indias real GDP is projected to grow by 6.5% in FY 2024–25 as compared to 9.2% in FY 2023–24. In 2024–25, real GDP growth was estimated at 6.5 per cent. The Reserve Bank of India expects the same rate to continue in 2025–26.

Indian Agricultural Sector Overview

Agriculture sector is the largest source of livelihood for the Rural India. India is amongst the leading producers in the world of several agri-commodities, including milk, rice, wheat, sugarcane, cotton, pulses, spices and fruits & vegetables and is the largest source of employment in the country. With 55% of the Indian population engaged in the agriculture sector, it contributes the 16% to Indias total GDP.

Agriculture sector is estimated to grow by 4.6% while manufacturing is expected to grow by 4.3% (Source: NSO Second Advance Estimates, February 2025). Indias agricultural sector could potentially grow to $1 trillion to $1.4 trillion by 2035 and to $ 1.8 trillion to $ 3.1 trillion by 2047 as per McKinsey Report 2025. Indias $580 billion to $650 billion agriculture sector is one of the largest and fastest-growing in the world: Over the past six years, it has grown at 5 percent per annum, driven by structural reforms and increased formalization. The demand for organic products in the Indian market is growing and is anticipated to rise with a CAGR of 25.25% between 2022-27. The Indian food processing industry accounts for 32% of the countrys total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

Favourable agri environment complemented by Governments policy interventions like irrigation infrastructure development, direct income transfer, credit access, soil health focus and promotion of modern farming techniques like nano fertilisers, drones, agri stacks, supported sectoral growth. India registered record food grain output of 354 million tons, an increase of 6% over last year. With ~USD 630 billion agricultural economy, India is playing an increasingly crucial role in shaping the global supply chains and will be pivotal in addressing the world hunger challenge. Digital and technological innovations along with infrastructure push can overcome some of the structural challenges and propel Indias agricultural growth story.

Indias Agri exports have witnessed strong performance in recent years; touching a peak of US$ 53 billion in FY 2022-23, moderating to US$ 50 billion in FY 2024-25 due to trading restrictions on Agri-commodities amidst concerns over food security and inflation on the back of geopolitical tensions and climate crises. However, Indias share of global agri-trade remains low at only about 3%. Enhancing agricultural productivity and value addition to global standards, while simultaneously improving market linkages, remain critical to enhance competitiveness of the agri sector and drive significant increase in farmers income.

F&V Sector Overview:

The fruits & vegetables market in India is expected to reach a projected revenue of US$ 62,407.6 million by 2030.

A compound annual growth rate of 5.9% is expected of India fruits & vegetables market from 2025 to 2030. The India fruits & vegetables market generated a revenue of USD 47,385.9 million in 2025 and is expected to reach USD 62,407.6 million by 2030.

In terms of segment, vegetables were the largest revenue generating product in 2025 The India market is expected to grow at a CAGR of 5.9% from 2025 to 2030.

Fruits is the most lucrative product segment registering the fastest growth during the forecast period. In terms of revenue, India accounted for 5.9% of the global fruits & vegetables market in 2025.

India is the fastest growing regional market in Asia Pacific and is projected to reach USD 62,407.6 million by 2030.

Source: https://www.grandviewresearch.com/horizon/outlook/fruits-vegetables-market/india

Company Overview:

Established in 2007 by first-generation entrepreneurs and headquartered in Ahmedabad, Prime Fresh Limited (PFL) is a leading player in the post-harvest management of fruits and vegetables in India. Listed on the BSE Limited, PFL has built a strong reputation in the domestic and global markets by focusing on end-to-end post-harvest supply chain solutions. The Company offers comprehensive third-party logistics (3PL) and warehousing services, catering to various sectors and serving some of the countrys largest national retailers. During the year under review, we continued to strengthen its position in the fruits and vegetables (F&V) supply chain space through strategic expansion and operational excellence bringing its total network to more than 1,10,000 farmers across 18 states. With a procurement volume reaching 33,940.6 metric tons (MT) for the year, PFL now handles over 600 tons of fresh produce daily, managing an extensive product portfolio of 75+ SKUs. We commenced new distribution centre (DC) operations in Lucknow, further enhancing its logistical capabilities. We currently manage more than 400,000 sq. ft. of warehousing space across India. We have also deepened our market linkages by building new relationships with traders, APMC players, packers, and consolidators, while maintaining active engagement with 85+ APMC partners, 2,400 suppliers and local area aggregators, and 4,000+ SME (GT buyers) spread across

85+ districts. Supported by a core team of 42+ experienced agri-professionals, we have maintained a sharp focus on operational efficiency and service delivery. Our omni-channel model continues to deliver value across 30+ e-commerce and retail platforms, and we have expanded our global footprint by exporting to 6 countries. These initiatives reaffirm our position as a resilient and forward-looking enterprise with over 18 years of experience in the F&V supply chain domain. We are a well-established player mastering the core activities from sourcing across different states of India (85 Districts in Maharashtra, Gujarat, Rajasthan, UP & Kashmir, Himachal) to distribution of Fruits & Vegetables through multiple platforms (Domestic & Global markets). We have successfully built a huge network of farmers, aggregators, various cold storages, pack houses, transportation services and other supply chain partners for all kinds of fresh Fruits and Vegetables. We are providing employment directly & indirectly to almost 100000 people across India. PFL credits a huge experience and earned expertise since 2007 in sourcing, handling, sorting & grading, warehousing, ripening, storage, packing and delivery of Fresh Fruits and vegetables.

Business Segments: Prime Fresh largely operates its business under two main verticals-

Fruits & Vegetable (F&V) supply chain business: Under the F&V Business it offers post-harvest management services, market linkages & end to end supply of Fruits & Vegetables to many national clients covering wide range of buyers across multiple sales channels like Modern trade, Ecommerce, HORECA, Food Processors, Exporters, APMCs, General Trade and D2C.

Service business: Under the Services business PFL offers 3PL services covering warehousing, handling, Packing, C&F, Ripening of fruits, cold storage management, manpower solutions & facility management etc. PFL handles over 300 tonnes of fresh fruits and vegetables from 16+ plus locations. PFL has built more than 5.5 Lakh tonnes per annum of operational capacities, including inward, outward, sorting, grading, packing cleaning, loading, and unloading of various agriculture products, FMCG products, pharmaceutical sector & many such sectors.

Our Approach:

Proudly rooted in India, we are firmly aligned with the Governments vision for Aatma Nirbhar Bharat. The Governments proactive steps to promote both public and private investment in post-harvest activities—ranging from aggregation, modern storage, efficient supply chains, processing (both primary and secondary), to marketing and branding—are commendable and represent a strategic move to unlock the full potential of the agriculture sector.

In line with this vision, we have embraced targeted collaborative models to expand the scale and impact of its Agri and rural development efforts. This partnership-driven approach, as opposed to conventional transactional models, plays a vital role in shaping the future of agriculture—one that is climate-resilient and economically empowering.

Our strong backward-integrated supply chain ecosystem continues to lay a critical role in empowering farming communities and Farmer Producer Organizations (FPOs) by providing reliable market linkages, assured and prompt payment, and enhanced access to high-quality agricultural inputs, we enable sustainable value addition at the farm level. This integrated framework not only strengthens the agri-value chain but also promotes inclusive growth across rural India. It is pertinent to note that a substantial portion of food produced in India is lost at various stages of the supply chain due to seasonality, perishability, and infrastructural constraints. Enhancing food processing capacities and post-harvest handling infrastructure is imperative to address these inefficiencies. Doing so will drive greater demand for high-quality agricultural produce, reduce post-harvest losses, improve farmer realisations, and contribute meaningfully to the nations food security objectives. The food processing industry is poised to play a transformative role—stimulating investment, generating employment, boosting agri-exports, and establishing Indian brands on the global stage. Targeted investments in climate-controlled infrastructure and branded product development are expected to further strengthen large agri-value chains. To ensure farmers have secure market access, corporate involvement and infrastructure investment are essential.

We believe that businesses can be a force for transformative change by adopting innovative models that integrate sustainable livelihoods with environmental stewardship, all while delivering long-term shareholder value.

We are actively forging partnerships with next-generation agri-startups, leveraging underutilized agri-infrastructure, and collaborating with farmers and local aggregators to build a robust and scalable agri-value chain. We are committed to enabling inclusive growth across the entire ecosystem. Initiatives in digitalization, cross-selling, strategic collaboration, and value addition hold immense potential to revolutionize the agriculture sector, increase productivity, and drive systemic improvements across the value chain—ensuring optimal resource utilization.

Our business model—underpinned by strategic investments aimed at enhancing operational efficiency, especially in agri-commodity sourcing for diverse sales channels and customer segments—continues to offer a strong competitive edge, particularly amidst inflationary pressures. These initiatives are closely aligned with the national priorities of enhancing agricultural and industrial competitiveness, generating large-scale employment, and supporting sustainable livelihoods. They also aim to boost domestic agri-value chains, promote Indian brands, and maximize value creation within the country. All investments made are guided by the overarching objective of farmer welfare, rural development, employment generation, and inclusion of marginalized communities. In doing so, we are contributing to the creation of a resilient, self-scaling, and self-sustaining fruit and vegetable supply chain ecosystem.

BUSINESS Key Highlights of FY2025 & financial Results

In FY 2024-25, Prime Fresh Limited demonstrated financial resilience and disciplined execution across its operations. Despite a dynamic external environment, the Company delivered stable performance, driven by strategic capital investments, operational efficiencies, and sustained demand in its core FNV Business segment KEY DATA POINTS: CONSOLIDATED FINANCIAL PERFORMANCE:

Sales YoY: From 14920.90 lakhs to 20676.55 lakhs - up by 38.57 % EBIDTA YoY: From 1010.11 lakhs to 1332.29 lakhs - up by 31.90 %

PBT: From 954.66 lakhs to 1281.26 lakhs - up by 34.21% PAT: From 696.93 lakhs to 912.25 lakhs - up by 30.90%

STANDALONE FINANCIAL PERFORMANCE:

Standalone Sales for Prime Fresh Limited increased by 36.98% to 19579.57 lakhs from 14294.14 lakhs. EBIDTA YoY increased from 977.36 lakhs to 1285.63 lakhs up by 31.54% PBT has risen from 922.14 lakhs to 1235.21 lakhs which is up by 33.95% PAT is up by 30.43% from 679.02 lakhs to 885.62 lakhs

Prime Fresh Limiteds F&V procurement during FY25 in terms of tonnage has grown to 33940.60 MT from 29630.67 MT during FY2024. The F&V Tonnage Sales have increased to 33050.30 MT tonnes during FY2025 from 28908.56 MT during the previous year. The rise in the overall business has majorly come from the products like Onion, Potato, Apple, Orange Nagpur and Sweet lime.

Team Prime Fresh remains optimistic about further growth during FY2025 backed by sustainable rise in capabilities, competency, team, capital & network of supply chain partners. PFLs each location has huge scope for better capacity utilization & higher productivity gains.

During the Financial year 2025, Prime Fresh Limited continued to focus on Growth & Expansion of Procurement network, Distribution centres, team addition and product portfolio enhancements.

Standalone Financial Statement Highlights FY25 and FY24

Particulars (Rs. Lakhs except EPS)	FY25	FY24	YoY%
Revenue from Operations	19579.57	14,294.14	36.98
Other Income	97.30	36.54
Total Revenue	19676.87	14,330.68	37.31
Total Expenses excluding Depreciation, Amortization & Finance Cost	18,391.24	13,353.33
EBITDA	1285.63	977.35	31.54
EBITDA Margin (%)	6.53%	6.82%
Depreciation & Amortization	19.60	15.48
Finance Cost	30.82	39.74
PBT before Exceptional Item	1,235.21	922.13
Exceptional Items	0	0
PBT	1,235.21	922.13	33.95%
Tax	349.59	243.11
PAT	885.62	679.02	30.43%
PAT Margin %	4.50%	4.74%
Other comprehensive profit / loss	0	0
Net PAT	885.62	679.02	30.43%
Basic & Diluted EPS	6.49	4.98

Prime Freshs key achievements/ milestones during the year FY 2025 are mentioned below:

• We successfully commenced operations at our new Distribution Centre (DC) in Bengaluru

• Received In-principle Approval of Prime Fresh Limited-Employee Stock Option Plan-2024 from BSE Limited.

• Received In-principle Approval for migration of the company form SME Board of BSE Limited to the Main Board BSE limited.

• Our tomato operations have also been launched across Madhya Pradesh, Uttar Pradesh, Karnataka, and Himachal Pradesh, reinforcing our long-term strategic focus on regional sourcing and product diversification.

Opportunities - Unlocking synergies that can drive scale, efficiency, and mutual growth across the entire value chain.

Tapping into Untapped Potential: Formalising the Unorganised Sector

As per the various reports, estimates and research academicians the size of Indian F&V industry is estimated to be around 25 Lacs Crores (25,00,000 crores). The market share of organized players is estimated to be between 8-13%. This provides huge opportunity to many corporates; new startups and well experienced players like Prime Fresh Limited to be a part of huge growth shift from unorganized to organized players. Led by dynamic management and aptly supported by experienced team, we are an integrated player operating across Fruits & Vegetables Value Chain and service provider for large corporate and retail giants. There is exponential growth expected in the rate of organization of F&V trade, over the next 8-10 years, which provides huge opportunity for organized players like your company Prime Fresh. Organised F&V industry is expected to grow from USD 25 Bn in FY 2023 to USD 150 Bn by FY 2030. The Fruits & Vegetables (F&V) sector in India is undergoing a structural transformation, offering a multitude of growth avenues for organized players like Prime Fresh Limited. The following strategic opportunities are well-aligned with the companys long-term vision and capabilities:

Formalization and professionalization of Fruits and Vegetables sector

Integration and collaboration of stakeholders

Adoption of new practices, technologies and Value addition

Improving efficiency, productivity, profitability and consumer experience

Setting new standards and benchmark for hygiene, traceability, quality, packing and branding, Marketing and exports.

Improving integrity, accountability, reliability and dependability.

Creating scale and sustainability in growth and Entire Value Chain.

Changing Lifestyles and Rising Popularity of Healthy Food, Health-conscious consumers globally

Increase market share in existing business verticals

Pan-India presence with extensive supply and distribution network to benefit the Company in the long-run

Diversified businesses with synergies in operations

Focus on inorganically growing business offerings

These opportunities position Prime Fresh Limited to play a leading role in the transformation of Indias unorganized Fruits

& Vegetables sector. With a strong focus on high-demand markets across the country, we are well-placed to drive new growth. Simultaneously, we remain committed to future-proofing its business through environmentally responsible practices and sustainable rural development, ensuring long-term value for all stakeholders.

Business Outlook:

Entering FY2026 with Strong Momentum and a Bold Growth Path

We have entered FY2026 on a firm foundation, setting its sights on an ambitious new growth trajectory. Over the years, the Company has undergone a significant transformation and now stands well-positioned for hyper-growth across all key business metrics—sales, profitability, scale, and operational reach.

Today, we operate across 18 states, supported by a young, dynamic, and highly experienced team, extensive infrastructure, and a robust network of stakeholders. This growth has been underpinned by the strategic development of a comprehensive and resilient agri-supply chain ecosystem, meticulously built over the past several years. The result is a business platform capable of supporting sustained acceleration in both the Fruits & Vegetables (F&V) segment and the Services vertical.

The outlook for both segments is strong, buoyed by our wide-scale expansion efforts in recent years. With a significant increase in capacity, capabilities, talent and operational network, Team we are prepared and energized to capitalize on the abundant opportunities that lie ahead in FY2026. Importantly, we have fostered deep-rooted relationships with key stakeholders, further reinforcing its ability to scale effectively.

As we embark on FY2026, we are pleased to update that your organization has entered the new fiscal year with strong momentum.

Few milestones at the beginning of FY26 as under:

• We successfully commenced operations at our new Distribution Centre (DC) in Lucknow, marking a significant step in expanding our North India presence.

• We launched UP Mangoes operations, building deeper backward integration in the mango portfolio right from the farm level.

• Received a certificate for Organic Products Supply Chain development & Execution License.

• Received UP Mandi License.

• Successfully migrated to the main board of BSE Limited.

• Entry into the Banana category, with operations started in Maharashtra. Sales network expansion in Delhi, Haryana, and Punjab through the Banana category, enabling better market penetration and category diversification.

These milestones demonstrate your organizations ability to drive growth with impact.

We are well-positioned to achieve further success in FY2026, driven by our strategic initiatives and commitment to excellence. Over the past decade, we have emerged as a prominent national player in Indias Fruits & Vegetables sector—an industry projected to exceed Rs. 40 lakh crore by 2030. We remain firmly committed to contributing to the nations progress and operates with a core belief in "One Nation, One Vision".

Strategic Alignment with National Priorities

Our initiatives across business segments are strongly aligned with Indias broader national objectives—enhancing agricultural competitiveness, creating large-scale employment, promoting equity, and building a resilient Agri-value chain that supports sustainable livelihoods. We also focused on developing strong Indian brands that can capture value domestically and stand out in global markets. We are focusing on building an export verticals & building technology driven Business Execution model to strengthen productivity & efficiency

Inclusive and Scalable Product Strategy

As part of its inclusive and performance-driven product strategy, Prime Fresh Limited is targeting 30%+ growth in tonnage sales for FY2026. This growth will be driven by the scaling up of high-demand produce, including:

Potatoes

Onions

Tomatoes

Oranges

Sweet lime

Pomegranate

Going forward, company believes that these products must drive further growth along with Banana & Mangoes during Next few years.

Some of the products which supported we also plan to strengthen its domestic distribution network—both B2B and B2C—by expanding into new F&V categories and enhancing its last-mile reach.

With strong fundamentals, a passionate and skilled team, growing demand, and the backing of a well-established agri ecosystem, Prime Fresh Limited is set to make FY2026 a milestone year—one of impactful growth, national contribution, and long-term value creation.

Strategic Growth through an Omni-Channel Sales Model:

Expanding Multi-Channel Sales Presence: We continue to strengthen our omni-channel sales strategy by expanding across multiple sales verticals, including HORECA (Hotels, Restaurants, and Catering), General Trade (GT), and new entries into select APMC markets in emerging towns. These efforts are expected to drive accelerated growth and deepen market penetration.

Enhancing Efficiency of Existing Operations: We are focused on scaling its supply chain operations to unlock higher throughput across its existing network while onboarding new customers. Key initiatives include:

• Expanding procurement capabilities, including contract farming partnerships to secure consistent, high-quality supply.

• Optimizing supply chain processes and logistics to reduce inefficiencies.

• Value addition to select SKUs, enhancing margins and market appeal.

• Geographic expansion in adjacent markets to extend distribution reach with minimal incremental cost.

Maximizing Utilization of Built Capacities: With a significant infrastructure backbone already in place—including distribution centers (DCs), collection centers (CCs), a growing farmer base, and a trained operations team—Prime Fresh is well-positioned to handle a substantial increase in F&V volumes. This capacity will support deeper distribution into underpenetrated regions, particularly North, North-East, and Southern India, enabling the company to service a broader geographic footprint. These initiatives align with our long-term vision of becoming a market leader in the fresh produce ecosystem, creating sustainable value for all stakeholders while contributing meaningfully to Indias agricultural growth story.

Robust Risk management:

Prime has strong capability in risk management. With several factors affecting the production and supply of F&V in India, Prime is able to effectively manage and minimize the risk between products, clients and procurement regions.

This is done by analyzing and predicting the produce, anticipating risk levels and accordingly adjusting procurement & distribution plans to accommodate and mitigate risk.

By strategically targeting established crop belts — such as Nashik for onions and Ratnagiri for mangoes, Pomegranates from Maharashtra, Gujarat and Rajasthan, we align our sourcing with regions known for high and consistent production. This reduces dependency on scattered or volatile supply areas. Furthermore, by sourcing fruits and vegetables across multiple agro-climatic zones in sync with seasonal and natural farming cycles, we enhance supply reliability and safeguard against regional disruptions.

Such a thorough system is made possible due to a well-built procurement foothold across the country in 6 states with a high level of experience of over 18 years in all core F&V competencies. Prime Freshs experienced team is positioned to successfully to achieve this, as reflected in the growth over the last few years.

Key Challenges/ Threats:

As an agri-focused enterprise operating in a dynamic and complex environment, we are exposed to a range of external and internal risks that may impact business performance and strategic goals. Key challenges include:

1. Climate and Weather Dependency: Given the agricultural nature of the business, operations remain highly sensitive to local and global weather conditions. Extreme climatic events—such as droughts, floods, unseasonal rainfall, or other natural disasters—can severely impact crop yield and quality, supply chain continuity, and overall business performance.

2. Uncertainty in Produce Availability and Procurement: The availability, quality, and pricing of fresh produce are influenced by numerous external factors beyond our control, including economic cycles, agricultural output, changing demand patterns, transportation costs, trade restrictions, and competitive sourcing pressures. These can disrupt procurement planning and impact margins.

3. Perishability and Handling Risk: Fresh fruits and vegetables are inherently highly perishable, and improper handling, storage, or processing at any point in the value chain can lead to significant losses. Ensuring stringent quality control across geographies remains a continuous operational challenge.

4. Seasonal Nature of the Business: The business is subject to seasonal fluctuations based on crop cycles, consumer demand, and regional climate conditions. These variations can lead to uneven revenue streams and operational challenges across the year.

5. Highly Fragmented and Volatile Industry Landscape: The fresh produce sector in India remains largely unorganized and fragmented, with significant volatility in pricing, supply, and demand. The sector is also highly competitive, with thin margins and a large number of informal players.

6. Emergence of Well-Funded Startups: The entry of large, venture-backed agri-tech and food-tech start-ups with significant capital resources and aggressive expansion strategies poses a competitive threat, especially in key urban and export markets.

7. Rising Cost of Skilled Manpower: Operating in a complex and knowledge-intensive sector requires a technically competent and experienced workforce, particularly in areas such as crop seasonality, regional sourcing, logistics, food safety, sorting, grading , packing capabilities and negotiation skills. Attracting and retaining such talent is both cost-intensive and operationally demanding.

8. Escalating Operating Costs: There is a growing pressure on margins due to rising costs in produce handling, food-grade packaging, labor, logistics, cold chain infrastructure, and overall supply chain management. In addition, higher investments in technology, senior leadership, market development, and data-driven decision-making are necessary to remain competitive.

9. Global Uncertainty and Geopolitical Risks: Ongoing global uncertainties and geopolitical tensions—including trade disputes, supply chain disruptions, and policy unpredictability—continue to impact global trade flows and investor sentiment. These macroeconomic headwinds create a challenging and fluid operating environment for export-driven segments and strategic investments.

Risks and concerns

Our business has both Risk and Return and they are inseparable. As a responsible management, the Companys principal endeavour is to achieve maximum returns. We have implemented maker checker concept to minimize risks and expenses through detailed studies and interaction with experts. The Company has developed a comprehensive framework of robust mechanisms and processes to identify risks that may negatively impact its operations and profitability. It is working towards putting in place risk monitoring systems for swift response to safeguard itself from the loss of capital and ensure the sustenance of operational performance.

Internal control system and their adequacy

The Company and the Management has established adequate Internal Control systems to ensure reliable financial reporting. Internal Controls also help in assessing, evaluating, safeguarding and shielding the Company from losses and unofficial use or deposition of assets. This ensures that the Companys resources are put to optimum use and all transactions are authorized, recorded and reported correctly to the Management. We constantly refine our internal controls to ensure effectiveness and efficiencies of operating procedures. We always adhere to set guidelines and follows all Accounting Standards prescribed for maintenance of books of accounts and reporting of financial statements. These standards require appointed Independent Internal Auditors to plan risk-based audits and execute audits to assess the effectiveness of internal control over various areas of operations and financial reporting throughout the year.

Material developments in the human resource / industrial development front, including number of people employed.

We recognize human capital as an extremely important and strategic resource and honors the dignity of each employee irrespective of position and highly values the cultural diversities of employees. We believe in employee empowerment across the entire organization in order to achieve organizational effectiveness. Further, special efforts are made to identify specific training needs to hone the skills of the employees. Human Resources continue to get primary focus of the management and the company considers its human resources amongst its most valuable assets. As at the financial year ended March 31, 2025, there were total 725 number of employees and workers on the payroll of the Company.

Disclaimer/Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations and others may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ from those expressed or implied. Several factors that could significantly impact the Companys operations include economic conditions affecting demand, supply and price conditions in the domestic and overseas markets, changes in the Government regulations, tax laws and other statutes, climatic conditions and such incidental factors over which the Company does not have any direct control.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCEIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR

Ratio	March 31, 2025	March 31, 2024	Deviation
Debt- Equity Ratio = Total Debt/Shareholderss Equity *	0.07	0.00	8995.33%
Debt Service Coverage Ratio =Earning Available for debt Service/Debt Service **	30.37	16.64	82.49%
Trade payable Turnover Ratio = Net Credit Purchase/ Average Account Payable***	40.11	31.51	27.32%

Reasons

* & ** Due to increase in short term borrowing during the year.

*** During the year purchase has increase as compared to last year

REFERENCES (BIBLIOGRAPHY)

1 IMF World Economic Outlook, April 2025

2 OECD Economic Outlook, May 2025

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4 US Bureau of Economic Analysis, March 2025

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6 UK Office for National Statistics, March 2025

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9 https://www.imf.org/en/Publications/WEO/Issues/2025/01/17/world-economic-outlook-update-january-2025

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14 https://www.indiabudget.gov.in/

15 https://farmonaut.com/asia/union-budget-2025-agriculture-initiatives-india-top-reforms

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