Tavernier Resources Ltd Management Discussions

1. INDUSTRY OUTLOOK:

Prior to the management transition, the Company was engaged in the jewellery and real estate sectors, both of which faced challenges in terms of market volatility, high capital intensity, and shifting consumer preferences. With the proposed shift to event management and social media marketing, the Company is entering industries that are more dynamic, technology-driven, and less capital-intensive. These sectors are experiencing strong growth, supported by increasing demand for digital content, brand visibility, and experiential marketing. While the outlook is promising, the new business landscape is highly competitive and fast-changing, requiring the Company to remain agile, innovative, and responsive to evolving client needs.

2. OPPORTUNITIES AND THREATS

The strategic shift opens new opportunities for the Company to enter high-growth sectors such as event management and digital marketing, which continue to expand with increasing demand for online presence and experiential services. By leveraging an asset-light and outsourced model, the Company aims to remain agile and cost-efficient. However, the new business environment also brings threats, including intense competition, will depend on the Companys ability to quickly adapt rapid technological changes, and dependency on third-party service providers. Success and establish a strong market presence in its new domain.

3. INITIATIVES:

As part of the ongoing transition, the new management has initiated steps to reposition the Company within the event management and social media marketing space. Initial efforts are focused on developing an operational model, identifying strategic partners, and exploring potential client segments on domestic and international territories. The Company is also working on establishing its brand presence in the digital space and laying the groundwork for scalable service offerings in line with market demand.

4. RISKS AND CONCERNS:

The Company is currently undergoing a significant transition, including a change in management and a complete shift in business focus from jewellery and real estate to event management and social media marketing. This change presents inherent risks, including uncertainty around successful execution of the new business model, market acceptance, and operational challenges associated with starting afresh in a competitive industry. The decision to operate without permanent employees and rely on outsourcing during the initial phase may also pose risks related to quality control and continuity. However, the new management is very much optimistic about the successful execution and growth of the company.

5. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Significant financial highlights in F.Y. 2024-2025 are as follows: -

A. EBITDA has turned positive as compared to negative in the previous year.

B. The net profit after tax of the company increased by 995.3% as compared to previous year.

C. EARNINGS PER SHARE (EPS) in the year 2024-25 is at 4.45 as compared to EPS of (0.50) in year 2023-24.

6. INTERNAL CONTROL SYSTEM:

The 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.

7. PERFORMANCE SNAPSHOT:

The standalone financial highlights for FY 2024-25 are as follows:

Particulars	FY 2024-25		FY 2023-24
	Ratios	% Change	Ratios	% Change
Current Ratio (in times)	109.68	1037.11%	9.65	590.14%
Return on Equity Ratio (in times)	0.34	692.57%	(0.06)	167.30%
Trade Receivables Turnover Ratio (in times)	2.02	100.00%	-	0%
Debt Service Coverage Ratio (in times)	16.04	100.06%	(0.01)	102.67%
Debt-Equity ratio (in times)	-	0%	-	0%
Trade Payable turnover ratio (In times)	-	100.00%	96.18	10.00%
Net Capital Turnover Ratio (In times)	0.03	87.93%	0.27	55.39%
Net Profit margin (in %)	1026%	5009.28%	(0.21)	499.13%
Return on Capital employed	34%	5645.26%	(0.01)	124.82%

8. HUMAN RESOURCES:

During the first half of FY 2024 25, the Company did not have any employees on its payroll, as operations in the jewellery and real estate segments remained minimal due to the ongoing process of a management takeover. The incoming management proposes a strategic shift in business focus to event management and social media marketing. In line with this transition, the new management intends to operate primarily on an outsourcing basis and does not plan to appoint permanent employees in the immediate term. This approach is aimed at maintaining operational flexibility during the restructuring phase.

9. FUTURE PLAN:

In line with the strategic decision to revise the companys main object, as outlined in the resolution passed by the shareholders pursuant to postal ballot notice, the company is poised to realign its operations and business focus. This change will mark a significant transition towards new growth avenues and business opportunities, thereby enabling the Company to diversify and expand its scope of operations in line with emerging market opportunities.

	By Order of the Board of Directors
	For, Tavernier Resources Limited
	Sd/-
Place: Mumbai
Date: 05/09/2025	Mokshaben Ravjibhai Patel
	Whole-Time Director
	DIN: 10712712