White Organic Agro Ltd Management Discussions

BUSINESS OVERVIEW

White Organic Agro Limited, based in Mumbai, is engaged in the business of trading in agro products and allied products. The Company has been progressively consolidating its business activities and remains focused on developing a simple, practical and sustainable business model.

The Company primarily operates through sourcing and trading of agro products from various suppliers, vendors and market participants. Depending on market conditions and business requirements, the Company may also explore outsourcing, contract arrangements, procurement, processing, packaging or other allied activities relating to food and agro products.

Our approach remains flexible and opportunity-driven. Rather than committing significant resources to fixed infrastructure, the Company intends to evaluate opportunities based on commercial viability, market demand, working capital requirements and expected returns.

INDUSTRY AND ECONOMIC OVERVIEW

India has a large and diversified agricultural base, creating a broad ecosystem for trading in cereals, pulses, spices, grains, fruits, vegetables and other agro commodities. Domestic consumption, organised distribution, food processing and Indias established position in global agricultural trade continue to support the underlying market.

According to the Economic Survey 2025-26, Indias agricultural exports increased from approximately US $34.5 billion in FY20 to US $51.1 billion in FY25, although the pace of growth has moderated in recent years. The Survey also highlights the significant scope for India to further strengthen its position in global agricultural trade. (India Budget)

For a trading-oriented business, the market provides opportunities across sourcing, distribution and supply of agricultural commodities. At the same time, the business remains subject to commodity-price movements, seasonal availability, weather conditions, changes in trade policies and fluctuations in demand.

The Company therefore believes that a measured and flexible trading approach, supported by prudent working-capital management and diversified sourcing, is appropriate for the current stage of its business.

BUSINESS OPPORTUNITIES

The Companys principal opportunity lies in building a reliable and efficient agro-product trading and sourcing platform.

The Company will continue to evaluate opportunities to source products from established suppliers and vendors and supply them to suitable customers and markets. Depending upon commercial viability, the Company may also consider outsourcing or entering into arrangements for processing, grading, packing, branding or other value-added activities.

The Company may also evaluate opportunities to acquire, outsource or associate with existing food and packaging businesses or capacities, wherever such opportunities are commercially suitable and complement the Companys existing activities.

Such an approach provides the Company with flexibility to participate in different segments without necessarily undertaking large capital expenditure.

TRADING ACTIVITIES

Agro-product trading will remain the principal focus of the Company.

The Company intends to build its activities gradually by identifying suitable products, suppliers and customers and by responding to market opportunities. The emphasis will be on prudent procurement, efficient inventory management, appropriate working-capital deployment and maintaining commercially viable margins.

The Company will also continue to assess opportunities across different agro commodities, depending upon market conditions and availability.

OUTLOOK

The outlook for agro-product trading remains constructive, supported by Indias large agricultural production base, domestic consumption and established participation in international agricultural trade.

At the same time, the Company remains conscious of the cyclical and price-sensitive nature of commodity trading. Accordingly, the immediate focus will remain on consolidating the existing business, improving efficiencies and selectively pursuing opportunities that are commercially viable.

The Company does not intend to pursue growth merely for the sake of scale. Each opportunity will be evaluated on its merits, with emphasis on prudent capital deployment, working-capital discipline and sustainable profitability.

RISKS AND CONCERNS

The Companys activities are subject to risks normally associated with commodity and agro-product trading, including:

? Fluctuations in commodity prices and margins;

? Seasonal availability and supply-related disruptions;

? Weather and natural calamity-related risks;

? Changes in government policies, duties and regulations;

? Changes in domestic and international demand;

? Counterparty and credit risks;

? Working-capital and inventory management risks; and

? Competition from other market participants.

The Company seeks to manage these risks through prudent procurement, diversified sourcing, appropriate inventory management, internal controls and regular monitoring of market conditions.

Deployment of Capital:

The Company remains committed to efficient deployment of capital with a focus on maximizing returns for shareholders. Future investments will be guided by the principles of scalability, sustainability, and high ROI potential. Emphasis will be placed on ventures and trading opportunities that deliver superior margins, robust cash flows, and consistent long-term shareholder value creation.

=> Internal Control Systems and their adequacy

In view of the changes in the Companies Act, the Company has taken additional measures to strengthen its internal control systems. Additional measures in this regard are fraud risk assessment, mandatory leave for employees, strengthening background verification process of new joiners, whistle blower policy and strengthening the process of risk management. The Company maintains a system of internal controls designed to provide a high degree of assurance regarding the effectiveness and efficiency of operations, the adequacy of safeguards for assets, the reliability of financial controls, and compliance with applicable laws and regulations.

The organization is well structured and the policy guidelines are well documented with pre-defined authority. The Company has also implemented suitable controls to ensure that all resources are utilized optimally, financial transactions are reported with accuracy and there is strict adherence to applicable laws and regulations.

The Company has put in place adequate systems to ensure that assets are safeguarded against loss from unauthorized use or disposition and that transactions are authorized, recorded and reported. The Company also has an exhaustive budgetary control system to monitor all expenditures against approved budgets on an ongoing basis.

Recognizing the important role of internal scrutiny, the Company has an internal audit function which is empowered to examine the adequacy of, and compliance with, policies, plans and statutory requirements. It is also responsible for assessing and improving the effectiveness of risk management, control and governance process.

Periodical audit and verification of the systems enables the various business groups to plug any shortcomings in time. As stated earlier the Company has improved effectiveness of the risk management process wherein it evaluates the Companys risk management system and suggests improvement in strengthening risk mitigation measures for all key operations, controls and governance process. In addition, the top management and the Audit committee of the Board periodically review the findings and ensure corrective measures are taken.

=> Discussion on Financial Performance with respect to Operational Performance

In continuation with the operational performance highlighted in the introductory paragraph and product wise performance, the performance of the Company for the financial year ended March 31, 2026, is as follows:

Total Net revenue stood at Rs. 13.25 crore for the year ended March 31, 2026, as against Rs. 19.63 crore for the corresponding previous period last year. The EBITDA (earnings before interest, depreciation and tax) was Rs. 1.44 crore for the year ended March 31, 2026, as against Rs. 2.31 crore for the corresponding previous period. The profit after tax for the financial year ended March 31, 2026 was Rs. 0.97 crore as against Rs. 1.73 crore for the corresponding previous period.

HUMAN RESOURCES

The Company recognises that its employees and professional associates play an important role in the efficient functioning of the business.

The focus remains on maintaining an appropriate team structure, clear responsibilities and a work environment that supports accountability, efficiency and continuous improvement.

WAY FORWARD

The Companys immediate priority is to consolidate its agro-product trading activities and strengthen the fundamentals of the business.

The Company will continue to explore suitable sourcing and trading opportunities and, where commercially appropriate, consider outsourcing, processing, packaging, acquisition or other allied arrangements in the food and agro-product space.

Our approach will remain prudent, flexible and opportunity-driven, with a clear emphasis on sustainable operations and responsible deployment of capital.

The management believes that strengthening the existing business and taking measured steps, rather than pursuing aggressive expansion, will provide a sound basis for the Companys progress.

Statements in this report describing the Companys objectives, plans, expectations or future outlook may constitute forward-looking statements. These statements are based on current expectations and assumptions and are subject to various risks and uncertainties. Actual results may differ materially from those expressed or implied due to changes in economic conditions, market conditions, government policies, regulations, commodity prices and other factors beyond the Companys control.

The financial statements have been prepared in accordance with the applicable provisions of the Companies Act, 2013 and relevant Indian Accounting Standards. For further details, members are requested to refer to the Directors Report and the audited financial statements.

Details relating to top employees shall be placed at the registered office of the Company for inspection by the Members of the Company.

The Management of the Company has been diligent in drawing up the said assumptions, expectations, predictions and forecasts as on date. However, considering the dynamic business and regulatory environment, it assumes no responsibility to publicly amend, modify or revise forward looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in government regulations, tax laws, economic developments within the country and such other factors globally The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013, relevant Indian Accounting Standards. Please refer Directors Report in this respect.

Key Financial Ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately preceding financial year) in key financial ratios. There were no significant changes in the key financial ratios as compared to previous financial year, comparative data is as under:

Particulars	FY26	FY25
(i) Debtors Turnover*	1.73%	5.11%
(ii) Inventory Turnover	0	0
(iii) Interest Coverage Ratio	0	0
(iv) Current Ratio**	0.98%	0.89%
(v) Debt Equity Ratio	0	0
(vi) Operating Profit Margin (%)***	10.33%	11.83%
(vii) Net Profit Margin (%)#	7.36%	8.81%
(viii) Return on Net Worth (%)##	1.67%	3.01%

During the year Purchases has reduced as compared to previous year and we have paid the major creditors during the year. Thus, Creditors outstanding as at year end as compared to previous year is much higher as compared to previous year and hence reduction in Trade payable turnover ratio.

*During the year the current assets has reduced and current liabilities has increased as compared to previous year resulting above variance in current ratio.

***Increase in operating profit margin is primarily attributable to higher sales realization, improved cost management, and enhanced operational efficiency, despite a reduction in overall sales volume.

#The Net Profit Ratio and Return of Investment Ratio has increased as compared to last year due to increase in Net Profit and Interest income.

Total Net revenue stood at Rs. 13.25 crore for the year ended March 31, 2026, as against Rs. 19.63 crore for the corresponding previous period last year. The EBITDA (earnings before interest, depreciation and tax) was Rs. 1.44 crore for the year ended March 31, 2026, as against Rs. 2.31 crore for the corresponding previous period. The profit after tax for the financial year ended March 31, 2026 was Rs. 0.97 crore as against Rs. 1.73 crore for the corresponding previous period.

2-C, MAYUR APARTMENTS, DADABHAI CROSS RD. NO.3, VILE PARLE (WEST), MUMBAI 400056, PH. NO. 022-31210901/31210902. DELHI: 101, KD BLOCK, PITAMPURA, NEAR KOHAT ENCLAVE, NEW DELHI 110034, PH. NO. 011-41045200.