T. Spiritual World Ltd Management Discussions

Pursuant to Listing Regulation of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 aligned with Companies Act, 2013, the Management Discussion & Analysis Report for the year under review is given below;

Background

The Management Discussion and Analysis Report sets out the developments in the business, the Companys performance since the last Report and the future outlook. This Report is part of the Directors Report and the Audited Financial Statements, forming part of the Annual Report. However, certain statements made in this Report relating to the projections, outlook, expectations, estimates, etc. may constitute "forward looking statements" within the meaning of applicable laws and regulations and may differ from actual. Several factors could make a significant difference to the Companys operations, including climatic conditions, economic conditions affecting demand and supply, government regulations, revision in government policies, taxation and natural calamities over which the Company does not have any control.

Global Scenario

A key driver of inflation across the world has been the rapid surge in energy, food, and commodity prices. The economic indicators suggest that global activity has slowed owing to the stretching the Russia-Ukraine war and clash between Israel and Palestine at Gaza. Global trade growth in 2024 is still expected to be subpar despite a slight upgrade to GDP projections since last fall, WTO economists said in a new forecast on 5 April. Weighed down by the effects of the war in Ukraine and Gaza, stubbornly high inflation, tighter monetary policy and financial market uncertainty.

Business Segment

T. Spiritual World Limited is to search the new avenue to engage in the business of trading and dealing in other concern activities in the Indian domestic market. The Company adherence to strong business ethics and transparent corporate policies, with a stable political environment, this is probably the most conducive period for a steady pace of implementation of policy reforms.

Review of Operation

The Company operates mainly in Indian Market. The management of T. Spiritual World Limited presents the analysis of performance of the Company for the Financial Year 2023-2024 and its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic and other developments. The Company has managed to maintain a growth trajectory in its financial performance in the current year. During the year under review, the Company achieved the total revenue of Rs. 0.72 Lakh.

Global Overview

Global growth is projected at 3.1 percent in 2024 and 3.2 percent in 2025, with the 2024 forecast 0.2 percentage point higher than that in the October 2023 World Economic Outlook (WEO) on account of greater-than-expected resilience in the United States and several large emerging market and developing economies, as well as fiscal support in China. The forecast for 2024–25 is, however, below the historical (2000–19) average of 3.8 percent, with elevated central bank policy rates to fight inflation, a withdrawal of fiscal support amid high debt weighing on economic activity, and low underlying productivity growth. Inflation is falling faster than expected in most regions, in the midst of unwinding supply-side issues and restrictive monetary policy. Global headline inflation is expected to fall to 5.8 percent in 2024 and to 4.4 percent in 2025, with the 2025 forecast revised down.

Trade in 2023 and the outlook for 2024 and 2025

World merchandise trade volume is expected to grow 2.6% in 2024 and 3.3% in 2025 as demand for traded goods rebounds following a contraction in 2023. Trade volume was down 1.2% last year after recording 3.0% expansion in 2022 despite the outbreak of war in Ukraine. The lingering effects of high energy prices and inflation weighed especially heavily on demand for trade-intensive manufactured goods, but this should recover gradually over the next two years as inflationary pressures ease and as real household incomes improve.

The relatively small 1.2% decline in merchandise trade in 2023 obscures strong regional variation, as import demand fell sharply in Europe, declined in North America, remained flat in Asia, and increased in major fuel-exporting economies. Weak demand reduced export volumes in Europe and prevented a stronger recovery in Asia, while the picture in other regions was mixed. If the forecast is realized, Asia will make a bigger contribution to trade volume growth in 2024 and 2025.

Opportunities and Threats Opportunities

a) Favorable Government regulations

b) Favorable macro-economies and micro-economies conditions

c) Steady arrival in the market from farmers in such a way they are getting the benefit of the increase in prices.

d) Surging demand from the Pharmaceutical Industry for dietary supplements, sales have risen over the past few months.

e) Demand from health drinks, beverages, ice cream, and bakery products gained to improve the fiber content.

f) Niche for growth

Threats

a) Imports from China and other cost effective labour countries

b) Competition in the Indian market from large traders

c) Geographically located in East India and presently not covering pan India

d) Increase cost of operations

e) The increase in the price of Isabgol has led to a shift towards alternative natural fibers such as guar gum and tamarind kernel powder. The Isabgol industry in India is expected to face challenges from the increasing use of synthetic fibers and the adoption of alternative natural fibers by the food, industry.

Risk and Concerns

Uncertainties in business offer opportunities and downside risks. Consequently, the Company recognizes the importance of well-structured system to identify and manage the different elements of risk.

Pressure on margins, high manpower and infrastructure cost, availability of substitutes, higher overheads, are some factors which could impact adversely especially as we strive to tap into the competitive markets.

Basis of preparation and presentation of our Financial Statements

The Financial Statements have been prepared and presented under the historical cost convention, unless otherwise specifically stated, on the accrual basis of accounting and comply with the applicable accounting standards referred to in the Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

Internal Financial Control and their Adequacy

The Company has in place well-defined internal control mechanisms and comprehensive internal audit programs with the activities of the entire organization under its ambit.

Human Resources

Human Resources Development envisages the growth of the individual in tandem with the organization. It also aims at the upliftment of the individual by ensuring an enabling environment to develop capabilities and to optimize performance.

Your Directors want to place on record their appreciation for the contribution made by employees at all levels, who through their steadfastness, solidarity and with their co-operation and support have made it possible for the Company to achieve its current status

The Company, on its par, would endeavor to tap individual talents and through various initiatives, ingrain in our human resources, a sense of job satisfaction that would, with time, percolates down the line. It is also the endeavor of the Company to create in its employees a sense of belonging, and an environment that promotes openness, creativity and innovation.

Material Developments in Human Resources

Our professionals and employees are our most important assets. We believe that the quality and level of service that they deliver is a huge contributing factor in growth and development of the Company. Further, for better management certain alterations were made in the top management and other hierarchies in the Company.

Discussion of Financial Performance

Directors of your Company are very hopeful to build up the performance of the company and post better results in the forthcoming financial year and to add value to the shareholders. The Company is hopeful of improving its turnover and bottom line and hopeful of posting better revenue ahead. Financial Highlights with respect to Operational Performance is as under:

Particulars	2023-24	2022-2023	2021-2022
Profit Before Tax	(19.37)	(18.25)	(118.24)
Profit after Tax	(19.37)	(18.25)	(118.24)
Earnings Per Share (Rs.)	(0.10)	(0.09)	(0.59)

Details of Significant Changes: -

Sl. No. Particular	F.Y. 23-24	F.Y. 22-23	Numerator	Denominator	in %	Reason
1 Current Ratio	12.083	15.323	Current Assets	Current Liabilities	-21.14	NA
2 Debt Equity Ratio	-	-	Total Debt	Shareholders Equity	NA	NA
3 Debt Service Coverage Ratio	NA	NA	Net Operating Income	Total debt Service	NA	NA
4 Return on Equity Ratio	-0.126	-0.106	Net Profit After Tax	Shareholders Equity	19.54	NA
5 Inventory Turnover Ratio	NA	NA	Cost of Goods Sold	Average Inventory	NA	NA
6 Trade Receivale Turnover Ratio	-	-	Average Receivable*12	Income from Operation	NA	NA
7 Trade Payable Turnover Ratio	NA	NA	Avereage Payable*12	Net Credit Purchases	NA	NA
8 Net Capital Turnover Ratio	-	-	Sales	Net Assets	NA	NA
9 Net Profit Ratio	-26.898	-101.365	Net Profit After Tax	Total Revenue	-73.46	Increase in losses as wells as increase in total revenue.
10 Return on Capital Employed	-0.126	-0.106	Earnings before Interest and Tax	Capital Employed	19.54	NA
11 Return on investments	-	-	Differce in amount of investments	Initial Investments	NA	NA

Cautionary Statement

Statements made in the Management Discussion and Analysis Report describing the Companies objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement important factors that influence the Companys operations, include global and domestic supply and demand conditions. We undertake no obligation to publicly update any forward looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward looking statements that speak only of their dates.