Utique Enterprises Ltd Management Discussions

OVERVIEW Global Economy

The global economy remained resilient in the year 2024, expanding at a solid annualized pace of 3.20% through the second half of the year. However, recent activity indicators point to a softening of global growth prospects. Business and consumer sentiment have weakened in some countries. pressures continue to linger in many economies.

At the same time, policy uncertainty has been high and significant risks remain. Further fragmentation of the global economy is a key concern. Higher-than-expected inflation would prompt more restrictive monetary policy and could give rise to disruptive repricing in financial markets.

Global GDP growth is expected to moderate from 3.20% in 2024 to 3.10% in 2025 and 3.00% in 2026, with higher trade barriers in several G20 economies and increased policy uncertainty weighing on investment and household spending. Annual real GDP growth in the United States is projected to slow from its very strong recent pace, to 2.20% in 2025 and 1.60% in 2026. Euro area real GDP growth is projected to be 1.00% in 2025 and 1.20% in 2026, as heightened uncertainty keeps growth subdued. Growth in China is projected to slow from 4.80% this year to 4.40% in 2026. pressures persist in many economies, with headline inflation recently turning up again in an increasing share of economies. Services price inflation has stayed elevated, with a median rate of 3.60% across OECD economies. Over 2025-2026 inflation is projected to be higher than previously expected, although still moderating as economic growth softens. Headline inflation is projected to fall from 3.80% in 2025 to 3.20% in 2026 in the G20 economies. Underlying inflation is now projected to remain above central bank targets in many countries in 2026. The high level of geopolitical and policy uncertainty at present brings with it substantial risks to the baseline projections. One possible risk is the escalation of trade restrictive measures. An illustrative exercise, where bilateral tariffs are raised further on all non-commodity imports into the United States with corresponding increases in tariffs applied to non-commodity imports from the United States in all other countries, shows that global output could fall by around 0.30% by the third year, and global inflation could rise by 0.40% per annum on average over the first three years. The impact of these shocks would be magnified if policy uncertainty were to increase further or there was widespread risk repricing in financial markets. These would add to the downward pressures on corporate and household spending around the world. The volume of world merchandise trade is likely to increase by 3.00% in 2025; however, rising geopolitical tensions and increased economic policy uncertainty continue to pose substantial downside risks.

Global growth is projected at 3.30% both in 2025 and 2026, below the historical (2000–2019) average of 3.70%. The forecast for 2025 is broadly unchanged from that in the October 2024 World Economic Outlook (WEO), primarily on account of an upward revision in the United States offsetting downward revisions in other major economies. Global headline inflation is expected to decline to 4.20% in 2025 and to 3.50% in 2026.

Indian Economy

The year 2024 presented a mixed bag for the Indian economy, with notable successes tempered by emerging challenges. Despite the geopolitical tensions and a sluggish recovery in advanced economies, India managed to clock an impressive

GDP growth rate of 6.50% for the fiscal year ending March

2025. This growth was fueled by a combination of strong domestic demand, government initiatives, and a resilient export sector.

Indias foreign exchange reserves remained robust, providing a cushion against global uncertainties and currency volatility. The reserves hovered around $600 billion for most of the year, supporting the Rupee and ensuring stability in external trade and payments.

The Governments focus on infrastructure development continued to yield results. Massive investments in highways, railways, and urban development projects were announced with an aim to create more jobs and enhance long-term productivity.

Despite growth, inflation proved to be a significant concern. Consumer Price Index (CPI) inflation hovered in the Reserve Bank of Indias target range of 2.00%-6.00%.

As the year ends, India finds itself at a crossroads. The economy has demonstrated remarkable resilience, with achievements like strong growth, robust investments, and improved fiscal metrics. However, challenges like inflation, slowing consumption, and revised growth projections highlight the need for cautious optimism.

The World Bank said that Indias growth is projected to remain steady at 6.70% a year for the next two fiscal years, beginning April 2025. Growth in South Asia is expected to rise to 6.20% in 2025-2026, it said.

Reserve Bank of India projected Indias GDP growth rate at

6.60% for the fiscal year 2024 2025, indicating a recovery trajectory following the economic slowdown experienced during the first half of the fiscal year. This growth forecast reflects a positive outlook for the economy amid improving financial stability.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Silver market is forecast to record another significant deficit (total supply less demand) for the fifth consecutive year in 2025. In keeping with previous years, silver industrial demand will remain the key driver of this favorable supply/ demand backdrop, with volumes projected to hit a new record high this year.

Concerns about President Donald Trumps anticipated tariff policies have fueled short covering and deliveries of silver (and other precious metals) into CME warehouses since late 2024. This, coupled with rising economic and geopolitical uncertainties, has underpinned a healthy recovery in silver prices since the start of 2025.

The bullion market, a critical component of this sector, continues to thrive, driven by Indias cultural affinity for Gold and Silver. The expanding economy and rising disposable incomes have further bolstered demand for these precious metals. This growth is further supported by the capital markets, which facilitate investments in bullion through various financial instruments like Gold Exchange-Traded

Funds (ETFs) and Sovereign Gold Bonds. These instruments provide investors with easier and more secure access to gold and silver, enhancing market liquidity and stability.

The integration of advanced technologies in trading platforms and the liberalization of commodity markets will further enhance trading efficiency and transparency, solidifying Indias position as a key player in the global commodity trading landscape.

OPPORTUNITIES AND THREAT

Trading in commodities and derivatives are subject to inherent risks such as credit risk, margin risk, volatility in prices of commodities and currencies, political risk, leverage risk, operational risk such as high transaction costs, regulatory changes, interest rate risk, warehousing and storage cost, etc.

Your Company Management believes that in any market the biggest risk is not having complete understanding of the business. Therefore, your Company Management adopts focus-based approaches in trading in order to reduce the risk and create a substantial value creation for its stakeholders. Global Silver demand is expected to remain broadly stable in 2025 at 1.20 billion ounces, as gains in industrial applications and retail investment will be mitigated by weaker jewelry and silverware demand.

Silver industrial fabrication is forecast to grow by 3.00% this year, with volumes on track to surpass 700 million ounces

(Moz) for the first time. In keeping with recent years, Silver will benefit from ongoing structural gains in green economy applications.

In the automotive industry, even assuming slower growth in battery electrical vehicle production, greater vehicle sophistication, electrification of powertrains (albeit at a reduced pace), and ongoing investment in expanding related infrastructure will boost silver demand. Elsewhere, gains are also expected in the consumer electronics market, as the development of artificial intelligence systems will continue to boost product offerings.

Silver physical investment is also forecast to rise by 3.00%, thanks to improving demand in Europe and North America. Total global silver supply is forecast to grow by 3.00% in 2025 to an 11-year high of 1.05 billion ounces.

Silver mine production is expected to reach a seven-year high in 2025, rising by 2.00% to 844 Moz. Increased output is anticipated from both existing and new operations in several markets. In China, growth will come from base metal and gold operations, while in Canada and Chile, the ongoing ramp-up of Heclas Keno Hill and Gold Field Salares Norte will contribute to rising output, respectively.

Silver recycling is projected to increase by 5.00%, with volumes breaching 200 Moz for the first time since 2012.

This year, industrial scrap will be the key growth driver, particularly changeouts in ethylene oxide catalysts. Jewelry and silverware recycling will also rise, reflecting Indias price-led gains.

The Silver market is forecast to remain in a deficit in 2025 for the fifth year running. Although this years deficit is expected to fall by 19.00% to 149 Moz, it is still sizeable historically.

SEGMENT-WISE/PRODUCT-WISE PERFORMANCE

At present, your Company has Silver, Gold and Copper segment/product-wise classification.

Your Company Management is optimistic on the outlook of trading in precious metals on account of improved regulatory framework, better integration of markets, developing market infrastructures and warehousing facilities.

The strategy to be implemented will focus on delivering value to its shareholders and at the same time, control inherent risks in order to ensure sustainable development of the Company and protect the interests of its stakeholders.

RISKS AND CONCERNS

Risk is an integral part of business and we aim at delivering superior shareholder value by achieving an appropriate balance between risks and returns. Commodity Trading is subject to continuously evolving market dynamics, regulatory environment due to increasing globalization, integration of world markets, newer and more complex derivative products and transactions and an increasingly stringent regulatory framework.

The Company Management identifies and monitors risks on an ongoing basis and evolves processes/systems to monitor and control the same to contain the risks to minimum levels. Ongoing monitoring by our officials help in identifying risks early.

Further, your Company deals only with fixed contracts on physical delivery basis and also hedge the price fluctuation linked to these contracts.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has a robust system of accounting and administrative controls ably supported by an Internal Audit System with internal checks and controls to ensure safety and proper recording of all assets of the Company.

The internal audit plan is aligned with critical business risks and also involves reviewing and documenting key process risks. The scope and coverage of audits include ensuring operating guidelines, and the reliability of financial and operational information and adherence to statutory compliances.

The Internal Auditor of the Company reviews all the control measures on a quarterly basis and recommends improvements, wherever deemed appropriate, and reports to the Company Management.

The Audit Committee regularly reviews the audit findings.

Based on their recommendations, the Company has implemented a number of control measures in both operational and accounting related areas, apart from the usual security related measures. The internal controls are designed to ensure that the financial and other records are reliable for preparing financial statements and other data and for maintaining the accountability of the assets.

Internal Control and Audit is an important procedure and the Audit Committee of the Company has been empowered by the

Board of Directors to review the adequacy of internal financial controls.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year 2024-2025, your Company continued to follow a focused based approach in trading and focused on select precious metals commodities such as Silver.

The key financial indicators stand as follows for the financial years 2023-2024 and 2024-2025:

Particulars	2024-2025	2023-2024
1. Debtors Turnover (in days)	N.A.	N.A.
2. Inventory Turnover	5.50	3.97
3 Interest Coverage Ratio	N.A.	N.A.
4. Current Ratio	103.10	40.07
5. Net Debt to Equity Ratio	N.A.	N.A.
6. Operating Profit Margin	96.41	96.32
7. Net Profit Margin	0.48	0.42
8. Net-worth (Rs. lac)	6994.06	6973.80
9. Return on Net-worth	0.007	0.004

There are Silver trading operations in the Company. There are no significant changes in Trading this year as compared to previous year. The Company has a comfortable Current Ratio and operating margin. There are no debts or debtors for the Company.

HUMAN RESOURCES

Your Company firmly reiterates its trust that our employees are the key assets of the organization. Our Human Resource

Department continuously focuses on employee engagement and motivation, which further helps in achieving strategic objective of the organization.

Your Company continuously strives to provide its employees with competitive compensation packages. During the year under review, we maintained a very cordial relationship with all the employees. As at March 31, 2025, your Company had 5 (five) permanent employees on its rolls.

For and on behalf of the Board
J. R. K. Sarma	Mahesh Menon
Executive Director	Director
DIN: 00088327	DIN: 00164298
Place: Mumbai
Date: May 29, 2025