Shri Gang Industries & Allied Products Ltd Management Discussions

GLOBAL AND INDIAN ECONOMIC OUTLOOK

Global Economic Scenario

The global economy stands at a critical juncture in 2025, navigating between renewed optimism and persistent uncertainty. Signs of resilience are evident-global GDP is projected to grow at 3.1%-3.3% in 2025, buoyed by easing inflation, stabilising labour markets, and resilient demand. Emerging markets, particularly India with an expected 7.0% growth, continue to drive global momentum through robust domestic consumption, structural reforms, and sustained government spending.

At the same time, challenges remain significant. A series of policy pivots, including new US tariff measures and resulting countermeasures, has reintroduced volatility into the global trade system. High-frequency indicators such as retail sales and PMI surveys point to slowing momentum in advanced economies, where tight monetary conditions continue to weigh on activity. Within countries, uneven income gains highlight persistent vulnerabilities despite headline GDP recovery.

The medium-term outlook also faces structural headwinds. Growth over the next five years is forecast at around 3.2%, below the 2000-2019 average of 3.7%, with population ageing emerging as a key drag on productivity and labour force participation. For many emerging and developing economies, this implies a deceleration in income convergence.

Going forward, the path of global growth will depend heavily on how trade tensions evolve, the extent of policy coordination, and the effectiveness of structural reforms. Reducing policy-induced uncertainty and restoring confidence through reforms, investment in technology, and prudent fiscal management will be critical to sustain momentum and ensure a more inclusive recovery.

Indian Economy

India continues to maintain its position as the fastest-growing large economy, with GDP growth of 7.0% in FY 2024-25, supported by a robust infrastructure push, resilient services, and strengthening consumption. Looking ahead, the IMF projects growth of 6.2% in 2025 and 6.3% in 2026, while the Reserve Bank of India (RBI) estimates growth at 6.5% in FY 2025-26, highlighting Indias consistent outperformance relative to global peers.

A major driver of growth has been the governments sustained focus on capital expenditure. In FY 2024-25, CAPEX outlay of 11.5 lakh crore (3.3% of GDP) boosted job creation and rural connectivity, with the FY 2025-26 Union Budget further allocating Rs.11.21 trillion (3.1% of GDP). While rural demand recovery has been somewhat uneven due to erratic monsoons, overall consumption trends remain strong. Rising disposable incomes, improved consumer confidence, and a recovering supply chain are driving higher spending on both essentials and discretionary services.

Inflation dynamics have improved significantly, with consumer price inflation easing to a six-year low of 4.6% in FY 202425, largely on account of food prices. This enabled the RBI to initiate its first rate cuts in nearly five years—25 basis points in February 2025 and another 25 basis points in April 2025—bringing the repo rate down to 6.0%, while shifting its stance to ‘neutral? to balance growth with stability.

Digital India continues to be a transformative growth engine. Flagship programs such as ONDC, DigiLocker, and the Ayushman Bharat Digital Mission are strengthening the digital ecosystem, enabling greater financial inclusion, promoting formalisation, and widening access to government services. Rapid adoption of digital payments further underscores India?s innovation-led, inclusive growth trajectory.

Going forward, India?s growth outlook remains broadly resilient but contingent on external and domestic factors.

• Upside prospects include a revival in the corporate investment cycle, improved business sentiment, faster global disinflation, easing commodity prices, and early resolution of trade and geopolitical tensions.

• Downside risks stem from increasing protectionism and trade fragmentation, volatile energy and financial markets, geopolitical uncertainties, climate-related disruptions, and uneven rural demand recovery.

Overall, India?s economy is well-positioned for sustained, broad-based growth, driven by infrastructure-led expansion, resilient domestic demand, and rapid digital transformation, while maintaining careful policy calibration to manage global and domestic risks.

Industry Overview

Global Alcoholic Beverage Industry

The global alcoholic beverage industry is undergoing significant shifts, influenced by evolving consumer preferences and market dynamics. The International Wine and Spirits Record (IWSR) data projects India, China and the United States to be the key drivers of growth in the global alcoholic beverage market. These countries are estimated to collectively add USD 30 billion in value to the industry by 2028, despite the challenges faced in 2023 and 2024.

Among these three countries, India is showing significant growth, particularly in whisky. Markets such as China are experiencing volume declines due to economic factors. In response to the dynamic environment shaped by macroeconomic and regulatory pressures, brands are actively recalibrating their strategies by expanding into emerging markets and promoting innovation across product categories to sustain growth.

Increasing disposable incomes in emerging markets, which have led to higher demand for premium and luxury products, are a key driver of growth in the global alcoholic beverage industry. Consumers are increasingly interested in unique, high-quality, craft and artisanal drinks. At the same time, expansion of e-commerce and retail channels has promoted accessibility for these products.

Urbanisation and changing social trends are encouraging more social drinking, while product innovations, such as low- alcohol and uniquely flavoured options, are attracting a wider audience. Marketing efforts, brand positioning, and strong growth in the travel and hospitality sectors are further propelling the industry?s growth.

To summarise, the major trends seen currently in the industry include a growing shift toward premium products, escalating demand for wellness-focused beverages, and increasing preferences for craft and non-alcoholic options, driven by evolving consumer lifestyles and health-conscious choices.

Indian Alcoholic Beverage Industry

India?s alcoholic beverage industry is undergoing accelerated growth, supported by favorable demographics, a large and youthful population, rapid urbanisation, and rising disposable incomes. Evolving lifestyles and shifting social attitudes— including increased acceptance of alcohol consumption among women in emerging urban centres—are further expanding the consumer base. As more young professionals enter the workforce, demand for premium alcoholic beverages has risen sharply, driven by aspirations for improved lifestyles and quality consumption experiences.

Key Consumer Trends

A defining trend shaping the industry is premiumisation. Consumers are increasingly moving towards higher-quality, differentiated products, with affluent segments exploring a wider repertoire of brands. This has fuelled growth in the premium spirits category, particularly through on-trade channels such as bars, restaurants, and lounges, where consumers are encouraged to experiment with premium offerings. Attitudes toward drinking are also evolving, with a shift towards more social and moderate consumption.

Market Composition

The Indian alcoholic beverage market is domestically driven, with whisky imports primarily used for blending into Indian Made Foreign Liquor (IMFL). India remains the world?s largest importer of Scotch whisky, and premiumisation is expected to further strengthen import demand. Restrictions on mass-media advertising have prompted companies to rely heavily on point-of-sale promotions, digital campaigns, event-based activations, and immersive brand experiences. Notably, post- COVID, large-scale experiential events, international artist collaborations, and omni-channel activations have become important brand-building tools for industry leaders.

Consumer Value Shifts

While premiumisation is driving growth at the top end, the middle and mass segments are becoming increasingly valueconscious. Consumers are seeking compelling propositions through innovative packaging, accessible flavour profiles, differentiated narratives, and competitive pack-price formats. This duality—premiumisation at the top and value-driven disruption at the base—is shaping the competitive dynamics of the industry.

Market Size and Growth Outlook

• Current Size (2024): ~USD 56 billion

• Projected Size (2034): ~USD 112 billion

• CAGR (2024-2034): ~7.2%

• Spirits Segment Outlook: Led by whisky, vodka, and rum, projected to reach ~USD 51 billion by 2034.

Export Opportunities and Policy Support

Despite being the world?s fifth-largest consumer market, India ranks only 40th in alcoholic beverage exports. This gap presents a significant opportunity, particularly in high-potential markets such as the UAE, Singapore, and Africa. The government is actively supporting export growth through participation in international trade shows, improving market access, and pursuing regulatory reforms. Privatisation and ongoing policy rationalisation are expected to further unlock the industry?s economic potential.

Regulatory Scenario in the Indian Market

Despite alcoholic beverages holding a deep cultural and historical significance in India, the industry operates within a complex regulatory framework, governed by both central and state laws. The Food Safety and Standards Authority of India (FSSAI), under the Ministry of Health & Family Welfare, regulates the sector through the Food Safety and Standards (Alcoholic Beverages) Regulations, 2018, which came into effect on April 1,2019. These regulations aim to ensure consumer safety, uphold quality standards, and provide a structured approach to industry oversight. India?s alcoholic beverage industry operates within a dynamic regulatory landscape, with state specific laws shaping production, distribution and sales. While excise duties, licencing requirements and advertising restrictions present challenges, they also stimulate innovation in marketing and brand positioning. Evolving policies, and a growing focus on responsible consumption, will catalyse opportunities for businesses to adapt and thrive in a more structured and compliant environment.

Another landmark development during the year was the India-UK Free Trade Agreement, which was in the works since 2022. The trade pact has reduced duty on import of Scotch whisky and gin from the UK to half - at 75% from 150% earlier. This will gradually reduce to 40% over the next 10 years. India is amongst the world?s largest whisky markets, and this agreement will enable improved accessibility of Scotch for Indian consumers and boost the growth of alcobev and hospitality industries.

• IMIL- Indian Made Indian Liquor

• IMFL -Indian Made Foreign Liquor

Andhra Pradesh, Karnataka, Maharashtra, Telangana, Uttar Pradesh and West Bengal are among the principal consumer states.

Consumer Landscape

The consumer profile of India is changing evolving with rapidly propagating middle class. The segment is broadly categorised into:

> Prestige and Above Segment: Increased aspiration, international travel experiences and expanding brand awareness among urban consumers are key factors propelling growth in this premium market segment.

Evolving consumer demand includes:

• Craft and flavoured spirits

• Regionally customized blends

• Multichannel brand engagement

> Growth Potential

The Alcobev market of India is still underpenetrated when compared with an international benchmark. Growth catalysts include:

• Demographic dividend: India?s young population drives economic vitality and future growth potential.

• Urban migration and infrastructure development

• Growing on-premise consumption

• Greater social acceptance for drinking amongst women

• Worldwide travel

Indian Whisky Segment Overview

India is the world?s largest consumer of whisky, accounting for nearly half of global whisky consumption. Whisky dominates the Indian spirits category, contributing over 60% of the country?s total alcohol consumption by volume. The market is valued at an estimated USD 18-20 billion in 2024 and is projected to grow at a CAGR of 6-7% over the next decade, driven by rising incomes, premiumisation, and expanding urban demand.

Key Drivers

• Demographics: A large, young, and aspirational consumer base.

• Premiumisation: Growing preference for higher-quality blends and single malts, especially in urban centres.

• Global Influence: Imported Scotch remains highly aspirational; India is the largest importer of Scotch whisky globally.

• Domestic Strength: Indian Made Foreign Liquor (IMFL) brands dominate the mass and mid-tier segments, while homegrown premium brands are gaining traction.

Trends

• Rapid expansion of the premium and super-premium whisky segments.

• Rising popularity of single malts and craft whiskies.

• Increasing female consumer participation in urban markets.

• Brand-building through digital campaigns, experiential events, and collaborations due to advertising restrictions.

Outlook

The Indian whisky market is set for sustained growth, supported by premiumisation, rising disposable incomes, and continued product innovation. Both global majors and Indian players are aggressively investing in premium and superpremium offerings, positioning India as the largest and most attractive whisky market worldwide over the coming decade.

Indian Extra-Neutral Alcohol (ENA) Market

Extra-Neutral Alcohol (ENA) is a high-purity ethyl alcohol used as the primary raw material in the production of alcoholic beverages such as whisky, vodka, rum, gin, and liqueurs. It also has applications in pharmaceuticals, cosmetics, and personal care products. In India, the ENA market is closely linked to the performance of the alcoholic beverage industry, given that liquor manufacturing consumes the majority of ENA produced.

Market Size and Growth

The Indian ENA market is estimated at ~USD 3.5-4.0 billion in 2024. It is expected to grow at a CAGR of ~5-6% through 2030, in line with rising demand for alcoholic beverages and industrial applications.

India is one of the largest producers and consumers of ENA globally, supported by abundant feedstock availability (sugarcane molasses and grains).

Key Drivers

• Alcoholic Beverage Industry Growth: Rising whisky, vodka, and premium spirits consumption is the dominant demand driver.

• Demographics & Urbanisation: A young population, rising disposable incomes, and lifestyle changes boost beverage alcohol consumption, which in turn drives ENA demand.

• Diversified Applications: Expanding use of ENA in pharmaceuticals (formulations, antiseptics), cosmetics (perfumes, deodorants), and industrial solvents adds stability to demand.

• Government Push for Ethanol Blending: Although distinct from fuel ethanol, overlap in feedstock and distillery capacity expansion indirectly benefits ENA production.

Outlook

The Indian ENA market is expected to witness steady growth, anchored by strong demand from the alcoholic beverages industry, particularly premium spirits. With rising premiumisation, grain-based ENA production is likely to gain momentum. Policy stability, raw material security, and technology adoption in distilleries will be key to sustaining growth and ensuring India retains its position as a leading global ENA producer.

Indian Made Foreign Liquor Segment Overview

The Indian Made Foreign Liquor (IMFL) segment is the largest and most dominant category in India?s alcoholic beverage industry, accounting for over two-thirds of the country?s spirits consumption. Valued at around USD 35-38 billion in 2024 and projected to grow at a CAGR of 6-7% through 2030, IMFL comprises whisky, rum, brandy, vodka, and gin, with whisky alone contributing nearly 60% of sales. Growth is being driven by favourable demographics, rising disposable incomes, urbanisation, premiumisation, and wider distribution into Tier-2 and Tier-3 cities. While the mass and value segments continue to anchor volumes, the prestige, premium, and super-premium categories are driving revenue growth, supported by changing consumer aspirations and lifestyle shifts.

Although the industry faces challenges from high taxation, state-level regulatory variations, raw material volatility, and strict advertising restrictions, it continues to innovate through premium offerings, craft spirits, and digital engagement strategies. Looking ahead, the IMFL segment is expected to see sustained double-digit growth in premium and superpremium categories, particularly in whisky and single malts, cementing its position as the engine of India?s alcoholic beverage industry and a key contributor to government revenues.

Growth Drivers

Change in demographics, coupled with the change in lifestyle is another major factor expected to foster the market of alcohol. The legal drinking age in India varies from state to state (from 18years to 25years), further indicate that India is ideal for the high growth of the alcohol market.

The outlook for the Indian alcoholic beverages continues to remain positive due to favorable demographics, expanding middle class, rising disposable income levels, greater preference for premium food and drink experiences and greater acceptance of alcoholic beverages in social circles. Increased consumption of liquor in rural areas will be another major reason for the growth in the market. Although the average per adult intake of alcohol is considerably low in India when compared to other countries such as the United States, drinkers among young Indians are more prevalent. This provides tremendous opportunity to drive growth of Alcobev industry on the back of its rising working age population. It is expected that per capita consumption will increase with changes in lifestyle and aspiration of the population.

The Indian market is huge and has great potential for all the players in this space, we firmly believe there is room for everyone in this industry. The age demographics are in India?s favor and because of rapid urbanization, the industry will continue to witness healthy demand.

Company Overview

The company is primarily engaged in the business of alcoholic beverages industry and has established a Grain based Distillery along with a Bottling Plant for Indian Made Foreign Liquor (IMFL) at Sandila, Dist. Hardoi, Uttar Pradesh. It manufactures, sells and distributes alcoholic beverages offering a portfolio of various Brands across scotch whisky, IMFL whisky and country liquor. The Company continues to drive growth by augmenting its premium offerings while also maximizing value across segments to cater to varied consumer preferences.

During the year, the Company enhanced its distillery production capacity from 55 KLPD to 66 KLPD at its Sandila, Uttar Pradesh plant. The facility, equipped with cutting-edge distillation technology from Praj Industries Limited, and supported by a 9-line bottling plant, ensures efficiency, scale, and superior product quality.

The Company continues to be a preferred tie-up unit for the supply of prestigious IMFL brands for United Spirits Limited (USL), further reinforcing its long-standing industry partnerships and market credibility

Company achieved a revenue of Rs.35,262.37 Lakh, reflecting a growth of 22.16% over the previous year?s ‘28,864.89 Lakh. Profit Before Tax rose sharply to Rs.3,400.53 Lakh, registering an increase of 74.31% as compared to Rs.1,950.81 Lakh in the previous year, underscoring the Company?s operational strength and market resilience.

Opportunities & Threats

Opportunities

The Indian alcoholic beverage industry presents significant growth opportunities at the back of rising disposable incomes, expanding middle class, young population, and evolving consumer preferences toward premium and innovative products. Key opportunities include:

• Premiumisation: Consumers are increasingly prioritizing quality over quantity, catalysing significant demand for premium and super-premium alcoholic beverages. Major brands are capitalising on this trend by expanding their high-end product portfolios, and launching innovative offerings that cater to local tastes and evolving consumer preferences. There is good opportunity in the liquor business as demand for potable liquor is showing a steady growth year on year.

• Innovation in Product Development: The growing popularity of flavoured alcoholic beverages, low-alcohol options and mixers presents opportunities for product diversification. Industry leaders are continuously exploring innovative formulations to cater to evolving consumer preferences, particularly among younger demographics.

• Expansion into Tier II and III Cities: There is strong potential for growth in tier II and tier III cities, where rising income levels and evolving social norms are driving increased alcohol consumption. Strengthening distribution networks and forging strategic partnerships with local retailers will lead to improved market penetration, increased product accessibility, and sustained growth across diverse consumer segments.

• Regulatory and Policy Tailwinds: Recent policy changes have created a more favourable business environment, offering opportunities for industry players to expand operations and streamline supply chains. Many organisations would leverage these regulatory shifts by refining their market strategies, enhancing compliance frameworks, and exploring new growth opportunities to drive long-term sustainability and expansion.

Threats

The Indian alcoholic beverage industry faces several challenges that impact its growth and operational dynamics. Key challenges include:

• Compliance and Taxation Complexity: The industry operates under stringent regulations that vary across states, making compliance and distribution challenging for businesses. Navigating these diverse policies requires careful strategic planning and a high degree of adaptability. The varying tax structures across different states lead to significant price differences, which in turn impact both the affordability of alcoholic beverages for consumers and the profitability of manufacturers.

• Illicit Market Competition: The presence of unregulated and illegal alcohol sales significantly affects the revenue of legally operating businesses by creating unfair competition and reducing their market share. This also poses serious risks to consumer safety and quality control, as unregulated products may not adhere to established health and safety standards.

• Cultural Sensitivities: Cultural sensitivities surrounding alcohol consumption continue to pose challenges in certain communities, where social norms and traditions discourage its acceptance threat of change in the Government policies which can affect the industry.

Risks & Concerns

The risks and opportunities of all corporations are inherent and inseparable elements. Directors and management of the Company take constructive decisions to protect the interests of stakeholders.

• Liquor industry is dependent on the policies of the State Governments as potable liquor is a State Subject. There is a threat of imposition of prohibition on consumption of liquor as done in the States of Gujarat and Bihar.

• A slowdown in global economic growth due to the ongoing geopolitical tensions may lead to a reduction in disposable consumer income and a deceleration in the IMFL industry, which could adversely affect the Company?s financial performance.

• Disruptions in the supply chain or limited availability of raw materials may create inflationary pressure, negatively impacting the Company?s earnings.

• Shifts in consumer preferences toward alcoholic beverages may significantly impact demand for the Company?s products.

• Prohibition in certain states poses a threat to legitimate sales and gives rise to inter-state smuggling impacting industry growth. This may also lead to a proliferation of country liquor sales in absence of / curtailed availability of branded products.

• The industry is exposed to multiple regulatory risks emanating from state taxes, and changes in regulations with respect to pricing, licensing, working of operating facilities, manufacturing processes, marketing, advertising, and distribution.

Operational and Financial Performance

During the year under review, your Company achieved a revenue of Rs.35,262.37 Lakh, reflecting a growth of 22.16% over the previous year?s Rs.28,864.89 Lakh. Profit Before Tax rose sharply to Rs.3,400.53 Lakh, registering an increase of 74.31% as compared to Rs.1,950.81 Lakh in the previous year, underscoring the Company?s operational strength and market resilience.

The Company is currently operating in two segments- Edible oils operations and Liquor Operations. During the year, the Company earned a revenue of Rs. 35,086.79 Lakh from Liquor Operations and Rs. 175.58 Lakh from edible oils operations.

During the course of the year, the Company witnessed an improvement in net debt profile also.

Company?s performance and growth during the year reflect the strength of our broad-based portfolio and our ability to capitalize on emerging opportunities. We responded swiftly to market dynamics, efficiently serving consumer demand and demonstrating agility, speed, and precision in execution.

Outlook

Shri Gang Industries & Allied Products Limited delivered a strong earnings turnaround in FY 2025, with profits more than doubling year-on-year, supported by bottling partnerships with leading liquor players such as United Spirits Limited. With improving operating cash flows and stronger returns on capital, the Company is well-positioned to capitalize on the steady expansion of India?s IMFL market.

We remain strategically focused on enhancing capabilities through organisational and distribution reforms, brand-building initiatives, supply chain efficiencies, and portfolio optimisation. At the same time, as a responsible organisation rooted in ethics and integrity, we are committed to upholding the highest standards of corporate responsibility.

Our efforts are directed towards accelerating the growth of our core brands, strengthening our route-to-consumer strategy, and leveraging economies of scale to consolidate and expand our competitive edge.

Details of Significant Changes in Key Financial Ratios

Financial Performance

(INR in Cr.)

Particulars	FY 2023-24	FY 2024-25	YoY (% change)
Net Sales Value	288.65	352.62	22.16
EBITDA	34.71	49.01	41.18
PBT	19.51	34.01	74.31
PAT	14.81	29.36	98.28

 

Ratios	FY 2024-2025	FY 2023-2024	Change	Remarks
Net profit margin	8.32	5.13	62.18%	The improvement is attributable to enhanced capacity utilization and improved operational efficiencies.
Operating profit Margin	14.97	13.08	14.45%	The improvement is attributable to enhanced capacity utilization and improved operational efficiencies
Debtor?s turnover	110.01	103.42	6.37%	NA
Stock turnover	16.50	11.99	37.65%	Improvement in the ratio indicates more efficient inventory management and faster conversion of inventory into sales

 

Ratios	FY 2024-2025	FY 2023-2024	Change	Remarks
Debt-equity ratio	8.03	-ve	NA	The improvement is attributable to higher profitability during the year and Net Worth turning positive, thereby strengthening the Company?s overall financial position
Current ratio	0.43	0.35	16.22%	NA
Interest service coverage ratio	4.68	2.95	58.64%	Improvement attributable to higher profitability
Return on capital employed	0.45	0.30	49.91%	Improvement attributable to higher profitability

Material Developments in Human Resources / Industrial Relations Front. Including Number of People Employed

During the financial year March 2025, the Company continued to prioritize the development and well-being of its human capital, recognizing employees as a cornerstone of sustainable growth. We remain committed to fostering a workplace culture that empowers our teams, supports career progression, and promotes high levels of engagement across all levels of the organization.

Human Resources

Your Company recognizes that people are the prime assets of the organization. Your Company believes that its employees are integral to driving business success. Your Company?s talent pool plays a key role in commitment to deliver quality products and services. Your Company recognizes that the long-term success and sustainable growth of our organization depends on our capacity to attract, retain and develop our employees. We are committed to providing our employees across the country with a safe and healthy work environment and helping them realize their full potential. The organization fosters an open and transparent work culture that drives innovation and nurtures entrepreneurial spirit among all employees. Your Company believes in celebrating milestones, both big and small, and encourages people to connect, communicate and collaborate through various forums.

A growth-oriented work culture is emphasized, with a clear focus on developing premium brands. The Company?s customer- focused approach ensures effective responses to consumer needs while encouraging a professional environment that embraces calculated risks and innovation. The HR department fosters a system-driven environment that operates smoothly, regardless of individual work styles. The management promotes employee empowerment by increasingly automating systems and processes, which enhances accountability and creates a more engaged and motivated team.

The Company continues to focus on attracting and retaining right talent with right opportunities to employees. Learning is ingrained in our culture and employees are constantly encouraged and given ample opportunities to upgrade their knowledge and skill.

Your Company remains committed to enhancing employee capabilities, equipping them with the necessary tools to thrive in a rapidly evolving industry and adapt to future challenges. It is worth noting that the Company?s industrial facilities operate smoothly without the presence of labor unions, ensuring uninterrupted operations and minimal disruption.

Industrial Relations

Industrial relations during the year remained cordial, contributing to mutual development. Company maintained healthy and harmonious relations at all levels and across all locations. The Board of Directors and management wish to place on record their appreciation for the dedicated of all the employees in achieving strong performance. The Company remained fully compliant with all applicable abor laws and regulatory requirements.

No case was reported under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 was reported during the year.

Workforce Strength

As of March 31, 2025, the total number of employees stood at 235 compared to 219 as of March 31, 2024. The workforce includes personnel across various functions such as Sales & Marketing, Manufacturing, Finance and all other Corporate functions.

Cash Flow Analysis

The Cash Flow Statement of the Company for the year under review, in terms of Regulation 34(2) of the Securities & Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015 is annexed to the Annual Accounts of the company which forms part of the Annual Report.

Other Equity (Reserves and Surplus)

As on March 31,2025 the Reserves and Surplus in the Balance Sheet were negative at Rs. 879.68 Lakh as compared to the negative balance of Rs. 4,788.42 Lakh during the previous Financial Year ended on March 31, 2025.

Net Worth of the company stood at Rs. 1059.95 Lakh as compared to the negative net worth of Rs. 2,996.23 Lakh. The turnaround to a positive Net Worth was primarily driven by increased profitability during the year and the conversion of loans into share capital.

Internal Controls Systems & their Adequacy

The Company has a robust and well embedded system of internal financial controls. This ensures that all assets are safeguarded and protected against loss from unauthorised use or disposition and all transactions are authorised, recorded and reported correctly. An extensive risk-based programme of internal audit and management reviews, provides assurance on the effectiveness of internal financial controls, which are continuously monitored through management reviews, self-assessment, functional experts as well as by the Statutory/ Internal Auditors during their audits.

The internal audit plan is also aligned to the business objectives of the Company, which is reviewed and approved by the Audit Committee. Further, the Audit Committee monitors the adequacy and effectiveness of the Company?s internal control framework.

We have in place a robust internal control system aligned with the nature, size and complexity of our operations. Stringent and comprehensive controls have been implemented to ensure:

• Efficient and effective use of resources.

• Compliance with applicable laws, regulations, and statutes.

• Safeguarding of assets and interests.

• Proper approval, registration and reporting of transactions.

• Reliability and consistency of accounting data.

The Company?s internal control system is commensurate with the nature, size and complexities of the operations.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis, describing the Company?s growth prospects, are forward-looking statements including, but not limited to, statements relating to implementation of strategic initiatives, future business developments and economic performance. The actual results may vary, depending upon economic conditions, raw- material prices, government policies, regulations, tax laws and other incidental factors. There are several factors that could cause actual results and developments to differ materially from those expressed or implied by these forwardlooking statements, including factors that are outside company?s control. Your Company neither intends to, nor assumes any obligation to update or revise these forward-looking statements in the light of any developments which may differ from those anticipated.

For Shri Gang Industries and Allied Products Limited

Shri Gang Industries and Allied Products Limited 81

Date: August 29, 2025	Sanjay Kumar Jain
Place: New Delhi	Chairperson (Director)
	DIN:01014176

References

Institute of International Finance (IIF), Global Debt Monitor Q12025; International Monetary Fund (IMF), World Economic Outlook, April 2025; Reserve Bank of India (RBI), Monetary Policy Report, April 2025; National Payments Corporation of India (NPCI), 2025; Ministry of Finance, Union Budget 2024-25; WHO, Global Status Report on Alcohol, 2024; IWSR Drinks Market Analysis, 2024; The Economist: Global Elections Outlook 2025; MoSPI, Government of India, 2025; OECD Global Consumption Database, 2024; GourmetPro - Definitive Guide to the Indian Spirits market 2025.