TGIF Agribusiness Ltd Management Discussions

ANNEXURE-E

INDUSTRY STRUCTURE & OVERVIEW:

According to Allied Market Research1, the global pomegranate market was valued at $5.6 billion in 2023, and is projected to reach $10.6 billion by 2033, growing at a CAGR of 6.7% from 2024 to 2033. The pomegranate market focuses on the cultivation, processing, and commercialization of pomegranates, a nutrient-rich fruit widely valued for its health benefits and culinary versatility. Pomegranates are consumed fresh as juice or in processed forms such as arils, concentrates, and extracts. Rise in consumer demand for superfoods and health-centric products has accelerated the growth of the pomegranate market globally. With its rich antioxidant profile and numerous applications in food and beverages, nutraceuticals, and cosmetics, pomegranates are a vital component of the functional food trend.

According to Times of Agriculture, Pomegranate farming earns 2.5-4 lakhs per acre per annum. The crop is generally grown over 1-2 acres with high-density cultivation of nearly 400 plants per acre. Other popular varieties include Bhagwa, which gives large and sweet fruits. The pomegranate crop requires a dry climate, irrigated through modern means. Cost to Grow: 1.5–2 lakh Profit: 3–4 lakh annually (after maturity) Time to Yield: 2–3 years Popular Varieties: Bhagwa, Mridula, Ganesh, Jalore Seedless, Arakta, Phule Bhagwa Super

According to Times of Agriculture, Dragon Fruit farming has an annual benefit ranging between 6 lakh and 10 lakh for an acre of farmland. The wholesale price of the fruit varies between 200 and 300 per kg. It requires 1 acre of land with poles and drip irrigation and an initial cost of 5-7 lakhs per acre. ROI begins after 2 years of farming. Cost to Grow: 3–4 lakh Profit: 5–6 lakh annually Time to Yield: 1–2 years Popular Varieties: White Dragon 1, Red Dragon 1, White Flesh (Hylocereus undatus), Red Flesh (Hylocereus costaricensis), American Beauty

According to Ministry of Commerce & Industry, 14 Tons of Indian pomegranates exported from Ahilyanagar in Maharashtra to New York, USA. Looking ahead, the industry is optimistic that with continued marketing efforts and strategic promotional campaigns, Indian Pomegranates can carve a niche for themselves in the premium U.S. market. In light of the growing success, industry stakeholders sought APEDAs continued support in launching promotional campaigns for the Indian Pomegranate in the coming year, with the aim of educating U.S. consumers on the fruits exceptional eating quality and diverse culinary applications.

Our Company has been incorporated on December 27, 2023 pursuant to the conversion of the limited liability partnership i.e. "TGIF Agribusiness LLP". The erstwhile LLP was previously known as "ARV Farmpro LLP" which was formed by the conversion of the partnership firm i.e. "Aarvee Farm Products". The partnership firm i.e. "Aarvee Farm Products" was formed by our promoter Niraj Chhaganraj Gemawat and her wife Rachana Gemawat pursuant to a deed of partnership dated February 28, 2014. We are primarily a horticulture Company engaged in open farming of certain fruits and vegetables. Our farm land is spread over an area of over 110 acres and is situated in the vicinity of three villages i.e. Ajari, Kasindra and Kojra, all of which are located in the tehsil of Pindwara, district Sirohi, Rajasthan. We have obtained all our farm lands on lease basis from our Promoter, who are co-owners of the property, Niraj Chhaganraj Gemawat and Rachana Gemawat, vide a lease deed. Our Company is engaged in the farming of pomegranate which contribute to more than 95% of our revenue from operations. Apart from the farming of pomegranate we are also engaged in the farming and cultivation of dragon fruits and Sagwan trees. We follow different farming practices so as to produce quality fruits such as fruit thinning, wherein some portion of fruit crop from the tree is removed before its maturity, in order to improve the general size and quality of the remaining crop, leaf vegetative growth practice to reduce tolerance level of external appearance, protecting fruit with protection material, measuring soil moisture to determine the water application. Under our farming model, wherein we generally employ farmers and workers in the vicinity of our farms. We also engage ourselves in to supervision of farmers and croppers to constantly monitor the quantity and quality of crops. With the growing consumer knowledge, interest, and purchasing power the demand for the fruits have also increased. This, in turn, played an important role in increasing our product demand in the market. We maintain adherence to quality and safety standards including plant quality, product quality, use of plant nutrients, fertilizers, pesticides to safeguard the plants and produce etc. These steps ensure the fulfilment of food safety and quality control and helps us in increasing the farm produce. We use drip irrigation systems for each of our farms to ensure proper irrigation of the farms and also minimize time spent on irrigation activity. The post-harvest facility has been designed to avoid contamination and to maintain food hygiene in the process. The products are packed as per individual client requirement and delivered to the customers.

TGIF has aligned its current systems of internal financial control with the requirement of Companies Act, 2013, The Internal Control – Integrated Framework is intended to increase transparency and accountability in an organizations process of designing and implementing a system of internal control. The framework requires a Company to identify and analyze risks and manage appropriate responses. The Company has successfully laid down the framework and ensured its effectiveness.

The Company operates in only single segment. Hence segment wise performance is not applicable.

We are an Agri-based company, our business is dependent on weather conditions, including extreme conditions such as drought and natural disasters. Further, the growth and production of the fruits and vegetables may be adversely affected by any change in the temperatures, weather patterns and the frequency and severity of extreme weather and natural disasters. The longer than usual periods of heavy rainfall in certain regions or a drought in India caused by changes in weather patterns may cause harm to the plantation and effect cultivation/harvesting of the fruits and vegetables. Further, adverse weather conditions may also cause volatility in the prices of commodities, which may affect our sales revenue. Consequently, the occurrence of any such unfavorable weather patterns may adversely affect our business, results of operations and financial condition. Our businesses are subject to seasonal variations. For example, every crop has a definite harvesting period during which the farm produce are higher compared to other parts of the year, hence the supply of the same is increased during the said period. Though, we maintain sufficient arrangements with storing facilities to store the farm produce and deliver in case of high demands during off period. However, in case we are not able to properly estimate demand and there is a shortage of farm produce and the estimated time period for which the produce can be stored without affecting its quality may have an adverse effect on our production cycle and sales. As a result of such seasonal fluctuations, our sales and results of operations may also vary by fiscal quarter, and the sales and results of operations of any given fiscal quarter may not be relied upon as indicators of the sales or results of operations of other fiscal quarters or of our future performance.

During the year under review, the Company has earned a net revenue from operations of 33,437 Thousand for the financial year 2024- 2025. Further, the Company has earned a Profit before tax (PBT) of 18,284 Thousand and Profit after tax (PAT) of 17,382 Thousand.

Cash and Cash equivalents as at March 31, 2025 were 49,269 Thousand. The Company continues to focus on its working capital, receivables and other parameters. The Basic and Diluted Earnings per share of the company as on 31st March, 2025 is 6.72.

Company has good relations with its employees. Your company is focused in balance work life approach which promotes employee innovation, excellence and mutual trust between all the personnel and the company. The company also focuses on systematic training programmes and developing the technical and behavioral skills of the personnel at each level of organisation to upgrade and innovate the work culture. Your directors acknowledge and thank employees for their constant support. 5 number of people were employed in the Company, as on 31st March, 2025.

Statements made in this Management Discussions and Analysis describing companys objectives and predictions may be "forward-looking Statements" involving future plans of the company within the meaning of applicable laws and regulations. Actual results may differ from those expressed herein. The company is dependent on factors that can impact the operations i.e. Government regulations, tax regimes, and economic developments within India and other countries. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their dates. The following discussion and analysis should be read in conjunction with the Companys financial statements included in this report and the notes thereto. Investors are also requested to note that this discussion is based on the Financial Results of the company.

The key Financial Ratios for Financial Year 2024-25 and Financial Year 2023-24 are as below: