Swadha Nature Ltd Management Discussions

(Forming part of Directors Report for the year ended March 31, 2026)

Swadha Nature Limited (Formerly Known as MS Securities Limited) (“the Company”) is a public listed Company incorporated in February 12, 1992. The equity shares of the Company are listed on BSE Ltd, since the Year 1995 under Security Code No.: 531039 at BSE.

Overview

Based on the Economic Survey 2024-25 presented on January 31, 2025, and the newly released Annual PLFS Report 2025 (January December 2025), the total workforce aged 15 and above was estimated at 61.6 crore in 2025. The Agriculture sector remains the largest employer, although its share in employment decreased from 44.8% in 2024 to 43.0% in 2025. share of women in the agricultural workforce has shown a significant rise, increasing from 57% in 2017-18 to 64.4% in 2023-24. During the period July September 2 0 2 5, due to Kharif operations, the share of rural employment in the agriculture sector rose to 57.7%, up from 53.5% in the previous quarter (April-2025). Agriculture and allied activities GVA is estimated to grow by 3.1% in FY26, supporting rural demand. The survey emphasizes accelerating crop diversification, specifically boosting horticulture, livestock, and fisheries to increase farm income. T o reduce dependence on raw agricultural production, the report identifies agro-processing as a fertile area for generating rural employment. While growth is steady, the report highlights the need to bridge the gap in agricultural productivity through enhanced R&D and digital agriculture, as crop yields remain lower than international standards. The agriculture sector continues to show resilience but is facing structural shifts towards self-employment and high-value, non-crop farming activities

Agriculture continues to be the primary livelihood source for over 55% of Indias population, making it both a significant contributor to GDP and a key driver of rural employment, particularly among women. The Government of India has introduced multiple initiatives for sustainable agricultural growth, improved productivity, and greater market linkages, recognising that the sectors predominance in employment is both a challenge and an opportunity. India retains its global position as one of the largest agricultural producers: Worlds largest cattle herd (including buffaloes) Largest area under wheat, rice, and cotton cultivation Largest producer of milk, pulses, and spices Second-largest producer of fruits, vegetables, tea, farmed fish, cotton, sugarcane, wheat, and rice With the second-largest agricultural land area globally, the sector continues to provide livelihoods to nearly half of the countrys population. Farmers remain central to the sectors resilience, ensuring national food security and raw material supply for industries.

Food Processing Industry and Consumer Trends

Indias consumer spending grew at 6.9% in FY 2024 25, consolidating its recovery from the pandemic-led slowdown. The Indian food industry continues to expand its share in global food trade, driven by domestic demand and value addition opportunities in food processing. The food processing sector: Accounts for ~33% (marginally increasing) of Indias total food market (up from 33% in FY 2024 25) Ranks fifth globally in production, consumption, exports, and anticipated growth Is a critical link between agriculture and industry, offering significant potential for employment generation, value addition, and export earnings The sectors growth in FY 2025 26 has been supported by favourable government policies, increasing investment in agri-infrastructure, and the expansion of cold-chain logistics, warehousing, and processing facilities.

Market Size

The latest data from the Ministry of Agriculture & Farmers Welfare and DPIIT reflects record-breaking performance in

Indias agriculture and allied sectors as of early 2026. The agricultural sectors production activity was valued at approximately USD 567 billion in 2025, according to reports on Statistics. GDP/GVA Share for FY 2024 25, the sectors contribution to Indias total Gross Value Added (GVA) at current prices is estimated at ~17.9%, down slightly from 18.3% as the service sector continues to expand. Real GVA for the agriculture and allied sector is estimated to grow by 3.8% in FY 2024 25, compared to 1.4% in the previous year. Final estimates for 2024 25 indicate a record-high total foodgrain output of 357.73 million metric tonnes (MMT), up from 332.3 MMT in 2023 24. Total Kharif foodgrain production reached a record 173.33 MMT for the 2025 26 season, according to the latest PIB releases. Rice: 150.18 MMT (up from 137.8 MMT).Wheat: 117.94 MMT (up from 113.3 MMT).Oilseeds: Record 42.99 MMT, driven by soybean (15.27 MMT) and groundnut (11.94 MMT). Deployment of the Digital General Crop Estimation Survey (DGCES) in major states has re-engineered crop yield reporting through automated grain analyzers and remote sensing. The budget allocation for agricultural development is set at 1.30 lakh crore for FY 2026 27.

Opportunities and Threats

Opportunities

Rising disposable incomes will enhance market penetration and strengthen consumer purchasing power. Continued regulatory support from the Government, including favourable Minimum Support Price (MSP) policies. Corporate expansion in agri-business, reflecting higher risk appetite and investment in the sector. Improved debt market efficiency enabling better access to capital for agri-enterprises. Increased demand for natural, organic, and sustainable agricultural products in both domestic and export markets. Potential for new product/service introductions leveraging value addition in food processing. Technological integration (AI, blockchain, drones, IoT) enhancing productivity and traceability.

Threats

Global economic slowdown potentially affecting export demand. Rising minimum wages and farm labour costs impacting production expenses.

Persistent inflationary pressures, which could raise consumer prices and affect demand elasticity. Intensifying competition in domestic and international markets. Climate variability and unpredictable weather patterns affecting yields. Unfavourable macroeconomic developments impacting consumer sentiment and investment flows.

Segment wise or product wise performance

The Company has identified its activities as single segment. Hence, the Companys performance is to be viewed as a single segment company operating in agricultural produce Industry. The Company operates in a single reportable segment and accordingly, segment-wise reporting is not applicable.

Recent trend and future outlook

Notwithstanding global uncertainties, regulatory tightening and cyclical economic downtrend, chemical industry in India on the whole, is expected to continue to grow at a healthy pace in the long term. We expect more favourable policy in the coming years for chemical and agricultural segment to remain stable or improve and liquidity to ease in the coming quarters. This should augur well for demand growth also. However, our Company is making all possible efforts to improve its performance and financial position.

Risks and Concerns

Like any other industry, this industry is also exposed to risk of competition, government policies, natural factor etc. As the Company is proposed to export raw materials/ finished product, the Company has risk on account of Exchange Rate fluctuations. The Company has taken necessary measures to safeguard its assets/interests etc. Prolonged limited economic activities due to geopolitical tensions, including the ongoing Ukraine Russia, Iran-Israel-US conflict, would severely hamper demand of our product in domestic and international markets.

Internal Control Systems and their Adequacy

The Company has proper and adequate system of Internal Controls to ensure that all the assets are safeguarded, protected as against loss from unauthorised use or disposition and that transactions are authorised, recorded and reported correctly. The

Company conducts internal audit of various departments through an independent internal auditor. The views of the statutory auditors are also considered to ascertain the adequacy of the internal control system.

Discussion on financial performance with respect to operational performance

The Company has adopted Indian Accounting Standards (Ind AS) from 01st April, 2017, accordingly, the financial statements for the Financial Year 2025-26 have been prepared in accordance with Ind AS. The Net Worth of the Company as on March 31, 2026 is Rs.53.01 lakh. The Total Revenue and Net Loss (after tax) of the Company during the year under review was Rs.1.78 Lakhs and Rs.13.04 Lakhs respectively as compared to Rs.9.07 Lakhs and Rs.2.64 Lakhs respectively in the previous year.

The accumulated losses reflected in the financial statements have led to erosion of the Companys net worth. In order to present a true and fair view of the financial position and to enable future growth, the Company has proposed a Scheme of Reduction of Capital, subject to necessary approvals.

Material Developments in Human Resources/ Industrial Relations front, including number of people employed

Human resources are considered as one of the most critical resources in business which need to be continuously nurtured to maximize the effectiveness of the organization. The Company recognizes its employees as a critical asset of the organization and lays due emphasis on all round development of its employees. Various initiatives have been taken up for developing employees at all levels and to make them future ready for higher roles and responsibility.

Cautionary Statement

Statements made herein describing the Companys objectives, projections, estimates and expectations may be ‘forward looking within the meaning of applicable laws and regulations. As forward-looking Statements are based on certain assumptions and expectations of future events over which the Company exercise no control, the Company cannot guarantee their accuracy nor can it warrant that the same will be realized by the Company. Actual results may differ from those expressed or implied. Important factors that could make a difference to the Companys operations include changes in Government regulations, tax laws, economic developments and other incidental factors.

	By Order of the Board of Directors
	For Swadha Nature Limited
	(Formerly Known as MS Securities Limited)
	Sd/-
Place: Ahmedabad	Dipakkumar Shah
Date: 27/04/2026	Managing Director
	DIN: 08234203
Registered Office:
50/4, Jalaram Park, Bhairavnath Road,
Pushpkunj Maninagar,
Ahmedabad,Gujarat, India, 380008
CIN: L01100GJ1992PLC170259
Email: swadhanaturelimited@gmail.com
Website: www.snl.in.net