Quasar India Ltd Management Discussions

A. Global Economic Outlook:

Global growth is projected to fall from an estimated 3.0 percent in both 2023 and 2024 to 2.8 percent in 2025. While the forecast for 2023 was modestly higher than predicted in the April 2023 World Economic Outlook (WEO), growth continues to remain weak by historical standards. The rise in central bank policy rates to fight inflation continues to weigh on economic activity. Global headline inflation is expected to fall from 6.8 percent in 2023 to 5.2 percent in 2024 and further to 4.3 percent in 2025. Underlying (core) inflation is projected to decline more gradually, and earlier forecasts for inflation in 2024 were revised upward due to continued pressures in services and labour markets.

The recent resolution of the U.S. debt ceiling standoff and, earlier, decisive actions by authorities to contain turbulence in the U.S. and Swiss banking sectors helped reduce immediate risks of financial instability. This has moderated some downside risks to the outlook. However, the balance of risks to global growth remains tilted to the downside. Inflation could remain stubbornly high or even rise again if new shocks occur, including those stemming from an escalation of the war in Ukraine, renewed Middle East tensions, or extreme weather events, which could prompt additional policy tightening. Financial market turbulence may re-emerge as markets adjust to sustained restrictive monetary policies. Chinas recovery could further weaken in 2025, hindered by ongoing stress in the real estate sector and rising local government debt, with broader spillovers to global demand. In addition, sovereign debt distress could spread to more vulnerable economies. On the upside, inflation could ease faster than expected, reducing the need for tight monetary policy, and resilient domestic demand could support stronger-than-expected global activity.

In most economies, the policy priority remains achieving sustained disinflation while safeguarding financial stability. Central banks should stay focused on restoring price stability while reinforcing financial supervision and risk oversight. Should market strains intensify, timely and targeted liquidity support should be provided, while limiting moral hazard. Fiscal policy should aim to rebuild buffers, ensuring that consolidation efforts remain growth-friendly and continue to protect the most vulnerable. Supply-side improvements including labor market reforms, infrastructure upgrades, and productivity-enhancing measures would support fiscal sustainability and aid a smoother return of inflation to target levels.

For emerging market and developing economies, growth is projected to be broadly stable at 4.0 percent in 2023, 4.1 percent in 2024, and 4.0 percent in 2025. While the average remains steady, underlying divergences persist: around 60 percent of economies in this group are expected to grow faster in 2025, while others particularly low-income countries and regions with high debt burdens continue to face significant challenges.

Growth in emerging and developing Europe is projected to rise to 1.8 percent in 2023, 2.2 percent in 2024, and further to 2.5 percent in 2025, supported by recovering external demand and moderating inflation. The forecast for Russia has been revised upward again to 1.8 percent in 2025, driven by resilient consumption, strong industrial output, and ongoing fiscal support, despite sanctions and structural challenges.

B. Overview of the Indian Economy:

India, meanwhile, continues to enjoy a Goldilocks moment, with economic activity gaining further momentum despite persistent global uncertainties. The latest GDP data for the final quarter of FY2024 25 was encouraging and largely aligned with optimistic forecasts. Indias GDP growth for FY2024 25 is now estimated at 7.1%, supported by robust domestic demand, resilient services and industrial output, and sustained public investment. This strong performance follows a full-year growth of 7.2% in FY2022 23 and 6.4% in FY2023 24, reinforcing Indias position as the fastest-growing major economy in the world. Recent economic reviews indicate that both consumption and investment trajectories have solidly surpassed pre-pandemic levels.

Economists and analysts remain broadly bullish on the Indian economy. Our growth forecast for FY2025 26 is in the range of 6.5% to 6.8%, with upside potential if global headwinds ease. The buoyancy of domestic demand, improving rural recovery, and momentum in public capex have led us to raise the lower bound of our expected growth range. If global conditions improve particularly through stabilization of commodity prices and easing of geopolitical tensions Indias growth could surpass 7% again over the next two years.

Government capital spending is expected to remain a key driver of growth, supported by strong tax buoyancy, a simplified and digitized tax system, ongoing tariff rationalization, and improvements in compliance efficiency. These structural fiscal reforms have provided room for increased outlays on infrastructure, logistics, and green energy projects, which continue to yield high growth multipliers across sectors. In addition, the revival of the monsoon and a strong Kharif season in 2025 have boosted agricultural output and rural demand, further strengthening the economic outlook.

With consistent macroeconomic stability, a large and growing working-age population, accelerating digitization, and improving ease of doing business, India remains on track to become one of the worlds top three economies within the next 10 to 15 years. Its trajectory is underpinned by its robust democratic framework, dynamic entrepreneurial ecosystem, and increasingly strategic global partnerships.

C. Industry structure and development:

The Indian economy demonstrated resilience during the year, maintaining its position as the worlds fastest-growing major economy with an estimated GDP growth of 6.5% for FY 2024 25. While macroeconomic fundamentals remain broadly positive, the investment climate is still evolving. Investors both domestic and foreign are closely observing policy direction and governance stability post the general elections. Sustained clarity and consistency in policy-making will be key to attracting long-term capital and strengthening Indias standing as a preferred emerging market destination.

The macroeconomic environment presented mixed signals: while retail inflation reached a six-year low of 2.1% (June 2025), core inflation remains moderately elevated. Fiscal consolidation efforts have reduced the deficit to 4.8% of GDP, and gross non-performing assets in the banking sector have declined to multi-year lows, reflecting systemic improvement in asset quality. However, private sector investment has yet to fully recover, and global economic uncertainties continue to pose challenges to export-led sectors.

Despite these headwinds, the Indian Textile and Fabrics Industry has remained resilient. As one of the countrys largest employment generators, the industry directly employs over 45 million individuals and indirectly supports around 105 million. The sectors market size is estimated at USD 225 billion, showing robust growth driven by both domestic consumption and rising global demand. The Governments Production Linked Incentive (PLI) Scheme, coupled with infrastructure initiatives such as PM MITRA Parks, has catalyzed fresh investments, enhanced export competitiveness, and encouraged value-added manufacturing.

D. Opportunities and Threats:

Opportunities:

Network area: The Company has diverse product portfolio, wide network area of sales, marketing and distribution, wide range of fill volumes etc. Management: The Company has experienced management team and well qualified senior executives. Market: Companys manufacturing and institutional sales stabilize revenue stream and helps in targeting new domestic and export markets. Hence, the Company has a wide range of network area for trading its products online or offline. Market Research and Development: Our continuous market research and development efforts have allowed us to identify emerging trends and customer preferences in the domestic market. By aligning our product offerings with these demands, we have managed to stay ahead of the competition.

Threats:

High Competition Era: The Pharmaceutical Industry has entered into the orbit of the high competition. The market fights are set to intensify with unstoppable capacity build up. The Competition from both unorganized and other organized players, leading to difficulties in improving market share. Manpower: The one of the common problem emerged for finding talent with competence or even skilled man power for Pharmaceutical Industries irrespective of the Companys Brand or Size. Under cutting of price: Due to high competition in market, the competitors are doing price cutting of Services to compete or keep their existence in markets which is ultimate big problems for the industries. New Entrance: More and more new organized players are entering into market which will increase competition in organized sector also.

E. Segment-wise or Product-wise performance:

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

The Turnover of the Company for the Financial Year 2024-25 is Rs. 4213.36 Lakhs.

F. Future Outlook:

Quasar India Limited expects to improve its performance in financial year 2024-25 and hopes to grow at rate faster than the growth of bank credit. The approach would be to continue with the growth momentum while balancing risk.

G. Risks and concerns:

Risk Management is an integral part of our Companys business strategy. A dedicated team is a part of the management processes governed by the senior management team. This team reviews compliance with risk policies, monitors risk tolerance limits, reviews and analyzes risk exposure related to specific issues and provides oversight of risk across the organization. The team nurtures a healthy and independent risk management function to avoid any kind of misappropriations in the Company. As part of the Risk Management framework, the management of Credit Risk, Market Risk, Operational Risk and Fraud Risk are placed under the Head Risk. The Credit Risk management structure includes separate credit policies and procedures for various businesses. The risk policies define prudential limits, portfolio criteria, exceptional approval metrics, etc. and cover risk assessment for new product offerings. Concentration Risk is managed by analyzing counter-party, industry sector, geographical region, single borrower and borrower group. Retail Finance credit approval is based on product / programs and monitoring is primarily done at the portfolio level across products and programs. Causal analysis is carried out and corrective actions are implemented on key risk indicators. A Senior Management oversight committee meets periodically to review the operational risk profile of the organization. Fraud risks are mitigated through a fraud risk management team.

H. Internal control systems and their adequacy:

The Company has an independent Internal Audit function with a well-established risk management framework. The scope and authority of the Internal Audit function are derived from the Internal Audit Charter approved by the Audit Committee. The Company has engaged a reputable external firm to support the Internal Audit function for carrying out the Internal Audit reviews.

The Audit Committee meets every quarter to review and discuss the various Internal Audit reports and follow up on action plans of past significant audit issues and compliance with the audit plan. The Chairperson of the Audit Committee has periodic one-on-one meetings with the Chief Internal Auditor to discuss any key concerns.

Additionally, the following measures are taken to ensure proper control:

Budgets are prepared for all the operational levels.

Any material variance from budget has to be approved by the Commercial director.

Any major policy change is approved by the managing director.

Any deficiency in not achieving target is reviewed at management meetings.

I. 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 no significant changes in any key sector specific financial ratios to report.

J. 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.

K. 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.

L. 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 Govt. Regulations and amendments in tax laws and other internal and external factors.

Registered Office:

1971-72, Room No. 3, Ground Floor,

Kucha Chelan, Khari Baoli,

Chandni Chowk, North Delhi,

Delhi, India 110 006

By the Order of the Board of

Quasar India Limited

 

Sd/-	Sd/-
Vijayrao More	Sureshkumar Prajapati
Director	Managing Director
DIN: 10298894	DIN: 09002828

 

Corporate Office:

505-D, Titenium City Center,

Nr. Sachin Towers, 100 Feet Ring Road,

Nandnagar Satelite, Azad Society,

Ahmedabad, Gujarat, India 380 015

 

Place: Ahmedabad

Date: 8th September, 2025