Swadha Nature Ltd Management Discussions

(Forming part of Directors

Report for the year ended March 31, 2025)

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 and CSE Ltd. since the Year 1995 under Security Code No.: 531039 at BSE and 023059 at CSE.

Overview

The Company operates in the agriculture sector, a cornerstone of Indias economy. According to the Indian Economic Survey 2024-25, Indias workforce was estimated at 57.3 crore in 2023-24, using Worker Population Ratio (WPR) from PLFS 2022-23 and MoHFWs latest .

population projections. The Periodic Labour Force Survey

(PLFS) indicates that over 44.6% of the workforce remains

engaged in agriculture and allied activities.

Agriculture continues to be the primary livelihood source for jt over 54% of Indias population, making it both a significant j contributor to GDP and a key driver of rural employment, I 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% of Indias total food market (up from 32% in FY 2023-24)

• 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 2024-25 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

According to Inc42, the Indian agricultural sector is projected to reach US$ 24 billion by 2025. The Indian food and grocery market is the worlds sixth largest, with retail sales contributing approximately 70% of the total. The agriculture and allied industry has seen significant government support, private investment, and technological adoption in recent years. Between April 2000 and September 2024, cumulative FDI inflows in agriculture services stood at US$ 3.11 billion (Source: DPIIT). As per the First Advance Estimates for 2024-25 (Kharif season):

• Total foodgrain production is estimated at 165 million tonnes.

• At current prices, agriculture and allied sectors contributed —18.3% of Indias GDP in 2022-23 (latest official consolidated data; FY 2023-24 final estimates are pending).

• In 2022-23 (3rd Advance Estimate), foodgrain production in India touched 330.5 million metric tonnes (MMT).

• India remains the second-largest producer of food grains, fruits, and vegetables, and the second- largest exporter of sugar globally.

• For the Kharif Marketing Season (KMS) 2023-24, rice procurement is anticipated at 521.27 LMT, compared with 496 LMT in the previous KMS 2022-23.

Market drivers include Indias rapid population growth, rising income levels in both rural and urban areas, and an increase in demand for agricultural and allied products nationwide. Additionally, the sector is being transformed by the adoption of advanced technologies such as blockchain, artificial intelligence (AI), geographic information systems (GIS), drones, and remote sensing tools, alongside the rollout of multiple e-farming platforms aimed at improving efficiency and farmer access to markets.

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, Chemical and natural extracts Industry.

Recent trend and future outlook

Notwithstanding global uncertainties, regulatory tightening and cyclical economic downtrend, chemical industry in India on the whole, will continue to much ahead 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 move southward and liquidity to ease in the coming quarters. This should augur well for demand growth also. However, your company is making all possible efforts will improve its 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 fear of world war resulting from Ukraine - Russia war, 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 conducted the 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 01^st April, 2017, accordingly, the financial statements for the Financial Year 2024-25 have been prepared in accordance with Ind AS.

The Net Worth of the Company as on March 31, 2025 is Rs. 69.21 lakh. The Total Revenue and Net Loss (after tax) of the Company during the year under review was Rs. 9.07 lacs and Rs. 2.64 lacs respectively as compared to Rs. 15.77 lacs and Rs. 1.82 lacs (net profit) respectively in the previous year.

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.

Place: Patna Date: 13/08/2025	By Order of the Board of Directors For Swadha Nature Limited (Formerly Known as MS Securities Limited) Sd/-
Registered Office:	Dipakkumar Shah Managing Director DIN: 08234203
601B, Ashiana Plaza Budh Marg, Patna- 800001, Bihar
CIN: L01100BR1992PLC004781
Email: swadhanaturelimited@gmail.com Website: www.snl.in.net