Sheetal Universal Ltd Management Discussions

1. INDUSTRY OUTLOOK:

During the period under review, the overall economy witnessed robust growth, driven by a resurgence in key sectors and strong consumer demand. With the pandemic situation largely under control, industries across the board have resumed operations at full capacity, contributing to a steady economic revival. The agriculture and agrobased industries, in particular, have demonstrated significant potential for sustained growth. As global and domestic markets continue to prioritize food security and sustainability, the demand for highquality agricultural products is expected to rise substantially. Favorable government policies, increased investment in agriinfrastructure, and technological advancements are further catalyzing this growth trajectory. Sheetal Universal Limited operates in the agriculturebased products segment, the company is wellpositioned to capitalize on these emerging opportunities. The outlook for the industry remains positive, with strong demand projected for the coming years, both in domestic and international markets. Our focus on quality, innovation, and customercentric solutions places us in a strategic position to leverage this momentum and drive longterm value creation for all stakeholders.

The company envisaged remarkable growth over previous years. Companys turn over shows 2. OPPORTUNITIES AND THREATS: increasing trends due to expansion. Government is providing various incentives to agricultural industries. Also, company is putting efforts to launch new products for expansion. At the same time, there is intense price pressure from the competitors and international financial crisis. Due to vast experience in manufacturing and international marketing, the Customers also growing rapidly. We have always maintained high quality standard and also make a good track record.

The initiatives are being taken by the Company for improving the quality standards and reduction of costs at appropriate level. New machineries were installed to provide better result and to cope up with changing requirement of the industry. The employees at all levels are being made aware of the changing conditions and the challenges of the open market conditions and to train the personnel to tackle the difficult situations which will improve the overall productivity, profitability. Also initiatives were taken by company to direct touch with farmers and also providing them quality services and knowledge.

Major fluctuations Rupee price value corresponding to fluctuation in the raw material price and stringent market conditions can affect the companys performance. Product risk, risk of fluctuation in the raw material price, government policies, and financial risk can affect the company, which requires continuous follow up.

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. 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 202425 are as follows: (Rs in Thousands)