Sheetal Universal Ltd Management Discussions

1. INDUSTRY OUTLOOK:

During the period under review, the overall economy continued to demonstrate steady growth, supported by activity across key sectors and improving domestic demand. The agriculture and agro-based industries continue to offer significant growth potential, driven by increasing focus on food security, sustainable agricultural practices, technological advancements and supportive government initiatives. Increased investment in agricultural infrastructure, mechanisation and value-added agricultural products is expected to create further opportunities for industry participants. Sheetal Universal Limited operates in the agriculture-based products segment and remains well positioned to benefit from the favourable industry outlook. The Company continues to focus on quality, product development and customer relationships to strengthen its market presence and create long-term value for its stakeholders.

The Company has continued to strengthen its business operations and has witnessed growth in its turnover during the year under review. Various government initiatives and schemes for the agricultural sector provide a favourable environment for the Companys business. The Company intends to leverage these opportunities by expanding its product portfolio and strengthening its market presence. At the same time, the industry remains exposed to competitive pricing pressures, fluctuations in raw material prices, changes in government policies, foreign exchange movements and prevailing international market conditions. With its experience in manufacturing and marketing of agricultural products, established customer relationships and focus on quality standards, the Company remains committed to addressing these challenges and capitalising on emerging opportunities.

The Company has undertaken various initiatives during the year to improve quality standards, operational efficiency and cost effectiveness. During the year, the Company expanded its product portfolio by launching a new line of flavoured nuts, in addition to its existing range of nuts, to cater to changing customer preferences and market requirements. The Company also continues to focus on employee training and development to enhance operational capabilities. Further, the Company has taken initiatives to establish direct engagement with farmers by providing quality products, services and relevant agricultural knowledge, with the objective of strengthening its relationships across the agricultural value chain.

The Companys performance may be affected by fluctuations in raw material prices, foreign exchange rates, competitive market conditions, changes in government policies and overall economic conditions. Changes in the prices and availability of agricultural products and other inputs may also impact the Companys margins and profitability. The Company continuously monitors these factors and takes appropriate measures to manage the associated operational, market and financial risks.

Your Company has a proper and adequate system of internal controls, to ensure the safeguarding of assets and their usage, maintenance of proper records, adequacy and reliability of operational information. The internal control is supplemented by an extensive audit by internal and external audit teams and periodic review by the top management, Audit Committee and Board of Directors.

Audit Committee also seeks views of the statutory auditors on the adequacy of internal control systems in the Company. In compliance with Section 143(3)(i) of the Act, the Statutory Auditors have issued an unmodified report on the Internal Financial Controls over Financial Reporting which forms a part of the Independent Auditors Report also forming part of this Annual Report.

The standalone financial highlights for FY 2025-26 are as follows:

(Rs in Lakhs)

Key Financial Ratios:

Human resources continue to play an important role in the Companys growth and operations. During the year under review, the Company maintained healthy and harmonious relations with its employees and continued to focus on recruitment, employee development, training and engagement. The Company believes that a capable and motivated workforce is essential for achieving its business objectives and accordingly continues to undertake appropriate initiatives for enhancing employee skills, productivity and overall organisational effectiveness.

The Company intends to expand its operations, strengthen its market presence and increase its share in the domestic and international markets. The Company will continue to focus on product development, operational efficiency, customer relationships and expansion of its business activities. Further, with the incorporation of its wholly owned subsidiary, Helios Global LLC in Russia on 05 March 2026, the Company intends to explore opportunities for expanding its presence in international markets. As on 31 March 2026, Helios Global LLC had not commenced its operations.

The Company operates in a single business segment, namely "Manufacturing of Agricultural Products". During the year under review, the Companys major and material business activities continued to relate to a single geographical segment, i.e. India. The Company has, however, initiated steps towards expanding its international presence through the incorporation of its wholly owned subsidiary, Helios Global LLC, in Russia on 05 March 2026. As on 31 March 2026, the subsidiary had not commenced its operations.

The Company intends to explore and develop international business opportunities through the said subsidiary in the future. Detailed segment-wise information forms part of the financial statements and the Independent Auditors Report, as applicable.