The Ravalgaon Sugar Farm Ltd Management Discussions

A. INDUSTRY STRUCTURE AND DEVELOPMENTS:

Indias proclivity for sweet foods is well known. A consumer looking for sweet foods can choose between hard-boiled sweets, toffees, chocolates, gums, jellies, mints, cakes, biscuits, traditional mithai and so on. The manufacturers of these products range from individual homes to small, unorganised establishments to large industrial units. Some of the distinguishing characteristics, regardless of size of the production unit, are the focus on good raw materials, hygiene, nutritional values and branding. Innovation in product and packaging, as well as consumer engagement through social and traditional media, have allowed the category to grow considerably in the last few years. The products are still largely sold through the general trade channel, though modern trade and quick commerce continue to gain relevance. The industry is highly price-sensitive and remains dependent on a stable pricing environment for raw materials and other industrial inputs. Overall, the industry is mature and growing with predictable demand characteristics.

B. OPPORTUNiTiES AND THREATS:

In March 2024, the Company completed the sale, transfer and assignment of its trademarks, recipes and all associated intellectual property rights relating to its sugar boiled confectionery business to Reliance Consumer Products Limited. The transaction was accompanied by customary restrictive covenants, which continue to govern the Companys activities in the confectionery segment during the applicable non-compete period. The Company has evaluated the option of contract manufacturing confectionery for third parties, which is permitted under the terms of the transaction. However, upon detailed assessment, the Company concluded that it is not in a position to operate contract manufacturing activities on a commercially viable basis, given the significant cost disadvantages relative to established, larger-scale contract manufacturers in the sector. Accordingly, this avenue has not yet been pursued.

The Company is therefore actively evaluating alternative uses for its manufacturing and ancillary assets, as well as other strategic directions that may leverage its existing assets, long-standing agricultural relationships, and operational infrastructure in the Ravalgaon region. Any such new direction will require considered investment, capability building, and the identification and attraction of suitable human resources to lead these initiatives. The Board continues to deliberate on the path forward with a view to preserving and enhancing shareholder value.

C. SEGMENT WiSE OR PRODUCT WiSE PERFORMANCE:

The Company has historically operated in a single business segment, namely the manufacture of confectionery. Following the sale of intellectual property rights related to its confectionery business in March 2024 and the consequent suspension of manufacturing operations, the Company did not carry out any manufacturing activity during the year under review.

D. OUTLOOK:

Overall economic activity in India remains robust despite persistent global headwinds. The confectionery segment continues to see intense competition, elevated input costs, and ongoing pricing pressures. However, the Companys immediate outlook is shaped principally by its ongoing strategic review. The Board is evaluating opportunities to redeploy the Companys assets and resources in directions that are commercially sustainable and consistent with the obligations arising from the transaction completed in March 2024. The outcome of this review will define the Companys operational direction for the coming years. Until a clear strategic path is identified and implemented, revenues and operating activity are expected to remain at nominal levels.

E. RiSKS AND CONCERNS:

The Company is in a transitional phase following the sale of its confectionery intellectual property and the suspension of manufacturing operations. Any new business direction will carry execution and learning-curve risks associated with entering unfamiliar areas. The Companys manufacturing assets at Ravalgaon are purpose-built for sugar-based confectionery production; their adaptability to alternative uses ? whether in food processing, agriculture, or other sectors ? will require careful assessment and, potentially, capital expenditure.

More broadly, the Company remains subject to the risks common to operating entities in India: inflationary pressures on input and manpower costs, unpredictable regulatory and local authority actions, and the general economic environment. The Companys current low level of operational activity limits revenue-side exposure but also limits the Companys ability to absorb fixed costs over a meaningful revenue base.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company maintains adequate internal control systems and makes need-based suitable changes therein to strengthen the same. The system provides, among other things, reasonable assurance of recording the transactions of its operations in all material respects and of providing protection against significant misuse or loss of the Companys assets.

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

The Revenue from Operations (Net) (excluding Other Income) for the year ended March 31, 2026 was nil, as against Rs. 115.81 Lakhs for the previous year. The decline reflects the full-year effect of the suspension of confectionery manufacturing operations following the sale of intellectual property rights completed in March 2024. The Companys operating activity during the year was limited to residual product disposals and asset management activities.

The Net Loss for the year ended March 31, 2026 was Rs. 486.54 Lakhs, as against a Net Loss of Rs. 202.70 Lakhs for the previous year.

H. MATERIAL Developments IN HuMAN RESOuRCES:

The Companys workforce has been significantly reduced following the suspension of manufacturing operations and the Voluntary Retirement Scheme offered to factory workers during the previous year. The Company currently retains a skeletal team to manage its assets, statutory obligations, and administrative functions. Industrial relations have remained cordial. The Company will assess its human resource requirements as and when its strategic direction is determined.

I. details OF SIGNIFICANT CHANGES:

Where a ratio is not meaningful due to the near-absence of operational revenue, this has been noted accordingly.

J. CAUTIONARY STATEMENT:

The information, opinions and views expressed in this section of the Annual Report contain certain forward-looking statements which involve risks and uncertainties. The Management has made its best efforts to present this discussion/analysis and believes these to be true to the best of its knowledge at the time of its preparation. The Management is not responsible to publicly update or revise any of these forward-looking statements whether on the basis of new information, future events or otherwise. The Management shall not be liable for any loss which may arise as a result of any action taken on the basis of information, opinion or views contained herein. The reproduction, disclosure or use of the information contained herein without express prior written permission of the company is strictly prohibited.