Trio Mercantile & Trading Ltd Management Discussions

1) Financial Performance During the year ended on 31st March, 2024 companys performance was down when compared to previous year. In current scenario overall business is down and company is also suffering from downward trends in business.

2) Material Developments in Human Resources :- Artificial Intelligence is playing big role nowadays. The whole Human Resources culture is affected AI is a big challenge in modern days and it is also opening big opportunity to selected few. Now survival of fittest is a reality. All employees have to upgrade themselves to the New technology developments. If up gradation is not implemented then one will be thrown out of system. Things are changing faster than it was expected few years back.

3) Industry Structure & Redevelopment :- Industry is struggling to survive. Input costs are rising and competition is tough. Companies are finding difficult to sustain and New age companies are posing big challenges to traditional business. New techniques and methods are ruling industry structure. Daily new developments are taking and posing difficulties to industries in general.

4) Segment wise performance :- Company is still struggling in trading sector. Company is facing competition from unorganized sectors. GST cost is becoming unrealistic and organized sectors are suffering.

Companys performance is improving in other activities.

5) Opportunity & Threats :- As economy is improving there will be scope for improvement in short duration. Wars are disturbing supply chain and inflation is rising.

6) Further outlook :- World is facing tremendous pressure due to war. Russia war and Israel-Arab tussle is posing big threat to the world at the large.

7) Internal Control Systems and their adequacy :- Company is comensurate with adequate internal control systems. Looking to the nature and size of company the internal control systems are sufficient. Audit committee also monitors internal control department. Board will issue proper guidelines from time to time strengthen internal control measures.

8) Risk & Concern :- Interest Rate are rising and this is big concern for business. RBI is not reducing interest rate, due to this growth is suffering. Incomes are not raising enough to cope up rising interest costs. This is posing big threat to business and especially for industries.

9) Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including:

Particulars	Current Period	Previous Period	% Variance	Reason of Variance
Current Ratio	2.26	2.08	8%	Not Applicable
Debt- Equity Ratio	Not Applicable	Not Applicable	Not Applicable	Not Applicable
Debt Service Coverage Ratio	Not Applicable	Not Applicable	Not Applicable	Not Applicable
Return on Equity Ratio	(0.02)	(0.01)	121%	Due to decrease in Revenue from operations
Inventory turnover ratio	12.47	19.11	-35%	Due to decrease in Revenue from operations
Trade receivables turnover ratio	Not Applicable	Not Applicable	Not Applicable	Not Applicable
Trade payables turnover ratio	5.03	2.35	114%	Due to decrease in Revenue from operations
Net capital turnover ratio	0.82	1.17	-30%	Due to decrease in Revenue from operations
Net profit ratio	(0.09)	(0.03)	226%	Due to decrease in Revenue from operations
Return on Capital employed	(0.01)	(0.00)	108%	Due to decrease in Revenue from operations
Return on investment	Not Applicable	Not Applicable	Not Applicable	Not Applicable

10) Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof.

Return of Networth

Annual Net worth of the company / shareholders equity capital

Annual Net worth	Total Revenue	Total Liabilities
	-2408833.82	-2286779.56
	2397638.65	2419648.09
	-100.47	-94.51

Due to unprecedented fall in Economy recovery of Monies has become difficult. Variance 5.93%