Yash Management & Satelite Ltd Management Discussions

BUSINESS OVERVIEW

The Companys main business activities are indigenous wholesale trading and merchant imports & exports especially in agriculture produces like food grains, pulses, oil seeds etc. and metals including copper, iron, semiprecious metals, precious metals, textile products and all type of industrial products

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

This section of Annual Report has been included in adherence to the spirit enunciated in the code of Corporate Governance approved by the Securities and Exchange Board of India ("SEBI"). Though, utmost care has been taken to ensure that the opinions expressed by the Management herein contain its perceptions on most of the important trends having a material impact on the Companys Day-to-day operations, no representation was made that the following presents an exhaustive coverage on and of all issues related to the same. Further, the discussion following herein reflects the perceptions on major issues as on date and the opinions expressed here are subject to change without notice. However, its important to note that the Company cannot guarantee the accuracy or realization of these assumptions and expectations. The Company undertakes no obligation to publicly update or revise any of the opinions or statements expressed in this report, consequent to new information, future events, or otherwise. The management of the Company is presenting herein the overview, opportunities and threats, initiatives by the Company and overall strategy of the Company and its outlook for the future. This outlook is based on managements own assessment and it may vary due to future economic and other future developments in the country.

GLOBAL ECONOMY

The world economy is navigating a complex but evolving landscape in 2025. While heightened trade tensions and ongoing policy uncertainties continue to pose challenges, there are signs of resilience and adjustment across global markets. Recent increases in tariffs particularly in the United States have raised production costs and disrupted supply chains, yet many businesses are adapting by diversifying trade partnerships and streamlining operations. Although global economic growth is projected to moderate to 2.4 per cent in 2025, down from 2.9 per cent in 2024, this still reflects a stable, if slower, pace of expansion in the face of significant headwinds. The impact is being felt across both advanced and emerging economies, but some regions are beginning to show signs of renewed investment interest and innovation-led growth. Trade and investment flows remain under pressure, particularly affecting export-dependent developing countries. However, some nations are leveraging this period to strengthen regional trade ties and reorient toward higher-value exports. While lower commodity prices and tighter financial conditions are creating fiscal stress, particularly in highly indebted countries, a more coordinated policy response is gradually taking shape. On the positive side, inflationary pressures are easing globally, providing policymakers with greater flexibility. Still, short-term risks from cost-push inflation and ongoing uncertainty demand careful policy calibration. A balanced mix of monetary, fiscal, and structural reforms, including targeted industrial strategies, will be essential to foster macroeconomic stability and build resilience. Progress toward the Sustainable Development Goals remains uneven, but there is growing recognition of the need for inclusive and sustainable recovery efforts. While slower growth and cost-of-living challenges persist, stronger social protection measures and increased global cooperation can help mitigate their impact and support vulnerable populations. Despite lingering investment sluggishness, green and digital transitions continue to offer long-term opportunities for a more equitable and resilient global economy.

INDIAN ECONOMY

Indias real GDP growth is estimated at 6.4 per cent in FY25 (as per first advance estimates of national income), which equates nearly to its decadal average. Real gross value added (GVA) is also estimated to grow by 6.4 per cent FY25. The global economy on an average grew by 3.3 per cent in 2023 against the IMF projection of 3.2 per cent growth in the next five years. The real GDP growth in FY26 is expected to grow between 6.3 and 6.8 per cent, keeping in mind the upsides and downsides to growth. Thrust on grassroots-level structural reforms and deregulation to reinforce the medium-term growth potential and boost global competitiveness of Indian economy. Geopolitical tensions, ongoing conflicts and global trade policy risks continue to pose significant challenges to the global economic outlook. Retail headline inflation has softened from 5.4 per cent in FY24 to 4.9 per cent in April December 2024. Capital expenditure (CAPEX) improved continuously from FY21 to FY24. Post general elections, CAPEX grew YOY by 8.2 per cent during July- November 2024. India accounts for seventh-largest share in global services exports, underscoring Indias global competitiveness in the sector. During April to December 2024, non-Petroleum and non-Gems & Jewelry exports went up by 9.1 per cent reflecting resilience of Indias merchandise exports amid volatile global conditions. Indian economy is in the middle of a change that represents an unprecedented economic challenge and opportunity. Geo-Economic Fragmentation (GEF) is replacing globalization leading to imminent economic realignments and readjustments. To realize the vision of Viksit Bharat by 2047 India will need to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two. The Medium-term growth outlook for India must consider the new global realities - GEF, Chinas manufacturing prowess, and dependency on efforts for energy transition on China. India to focus on systematic deregulation to reinvigorate the domestic levers of growth and empower individuals and organizations to pursue legitimate economic activity with ease. Systemic deregulation or enhancing economic freedom for individuals and small businesses is arguably the most important policy priority to bolster Indias medium-term growth prospects. Focus of reforms and economic policy must now be on systematic deregulation under Ease of Doing Business 2.0 and creation of Indias SME sector. In the next step, States must work on liberalizing standards and controls, setting legal safeguards for enforcement, reducing tariffs and fees, and applying risk-based regulations.

OPPORTUNITIES

Indias agriculture sector continues to present significant growth opportunities, particularly in light of improved productivity, increased exports, and rising domestic demand. Agriculture remains a key livelihood source for over 40% of Indias population, even though its share in GDP has declined to below 18%. As per FY 2024 25 data, the agriculture sector benefited from favorable monsoon conditions, increased use of technology, and consistent policy support. The market size of Indian agriculture is estimated at USD 372.94 billion in 2024 and is projected to reach USD 473.72 billion by 2029, growing at a CAGR of 4.90%. Several structural drivers are supporting this expansion like rising rural and urban incomes have increased the demand for food grains, pulses, oilseeds, and processed food items. The sector is rapidly integrating with digital and smart farming technologies, such as AI, GIS, blockchain, drone surveillance, and remote sensing, enhancing precision agriculture and reducing costs. The proliferation of e-farming platforms and government-backed agri-tech initiatives has improved market linkages, access to real-time data, and credit for farmers. Indias performance in the global agricultural export market has strengthened, thanks to greater trade facilitation, digital customs clearance systems, and diversification of export destinations. Export Performance in FY 2024 25 (April 2024 March 2025) was robust, supported by high-quality yields and strong global demand:

Basmati and Non-Basmati Rice: USD 12.47 billion

Marine Products: USD 7.39 billion

Spices: USD 4.44 billion

Buffalo Meat: USD 4.06 billion

Sugar: USD 4.24 billion

Oil Meal: USD 1.34 billion

Processed Foods and Misc. Items: USD 3.1 billion

The metals and industrial sector experienced continued expansion during FY 2024 25, underpinned by a sustained rise in public and private infrastructure spending and the rollout of major government initiatives like PM Gati Shakti, Bharatmala, Smart Cities Mission, and Production-Linked Incentive (PLI) schemes. These have significantly increased demand for core metals such as iron, steel, copper, and aluminum. The total capital outlay for infrastructure in the Union Budget 2024 25 rose by 11.1% YoY, acting as a direct demand catalyst for the metals industry. Technological innovation has also supported the sector like Automation and digitization in mining operations are improving efficiency and safety. Energy-efficient smelting and advanced recycling processes are helping manufacturers reduce costs and environmental footprints. A notable shift toward secondary metal usage (from recycled scrap) has emerged as a sustainable and scalable solution to rising demand. Urbanization continues to be a major growth driver. With Indias urban population expected to reach over 600 million by 2030, demand for housing, transport systems, and urban infrastructure is escalating creating a steady consumption base for industrial and structural metals.

THREATS

Despite its resilience, the Indian agricultural sector in FY 2024 25 faced significant challenges that threaten its growth and sustainability. Slowing global demand and protectionist trade policies reduced agricultural export volumes, particularly for rice, meat, and oilseeds. Climate change intensified environmental volatility, with unseasonal rainfall, heatwaves, and increasing incidences of droughts, floods, pest outbreaks, and soil degradation adversely affecting crop yields. Persistent supply chain limitations, especially in cold storage and logistics, hindered the quality and marketability of perishable produce. Additionally, volatile input costs driven by fluctuating fertilizer and energy prices squeezed smallholder farmers margins. Similarly, the Indian metals sector, despite benefiting from domestic infrastructure demand, grappled with geopolitical disruptions like the Russia-Ukraine conflict and Red Sea tensions, which drove up procurement and shipping costs. Trade policy volatility, including anti-dumping duties and export restrictions, further restricted market access. Price fluctuations in key commodities such as copper and aluminum, combined with low hedging coverage, hurt profitability. Moreover, increasing ESG compliance pressures and dependence on imported raw materials heightened operational risks and capital costs, challenging long-term sustainability and competitiveness.

CHALLENGES

During FY 2024 25, the Indian agricultural sector continued to face significant systemic and operational hurdles despite government efforts to modernize infrastructure through schemes like the PM Kisan SAMPADA Yojana and the Agri Infra Fund. Supply chain inefficiencies especially in cold storage, warehousing, and rural logistics led to considerable post-harvest losses for perishable goods. Price volatility, driven by global market shifts, domestic procurement policies, and erratic weather, created income instability for farmers and squeezed agribusiness margins. Although digital and precision farming technologies are gaining ground, their adoption remains limited due to inadequate access to credit, technology, and formal financing in rural areas. Additionally, unpredictable policy changes related to subsidies, export restrictions, and input pricing further complicated planning for both producers and exporters. The metals and industrial sectors, while supported by strong domestic infrastructure demand, encountered their own set of challenges. Commodity price volatility fueled by global macroeconomic uncertainty, Chinese demand fluctuations, and speculative trading disrupted procurement and pricing strategies. Compliance with increasingly stringent ESG norms and environmental regulations raised operational costs, particularly for small and mid-sized firms lacking capital and technical capabilities. While larger players have begun integrating automation and green technologies, smaller firms lag due to funding constraints and workforce skill gaps. The push toward Industry 4.0 has further highlighted a shortage of digitally skilled labor, particularly in mining and metallurgical operations, limiting the sectors ability to modernize and compete globally.

RISKS & CONCERNS

In FY 2024 25, the Indian agricultural sector was challenged by a mix of operational, economic, and external risks that threatened production and profitability. Crop yields and quality continued to suffer from increasing pest infestations, soil degradation due to over-reliance on chemical inputs, and erratic rainfall patterns impacting irrigation. Input cost volatility, particularly in fertilizers affected by global natural gas prices, further strained farmer margins. Meanwhile, price and market risks were heightened by unstable global demand, shifts in domestic procurement policies, and unpredictable MSP adjustments, all contributing to income uncertainty for farmers and agribusinesses. Additionally, the sector remained vulnerable to global trade disruptions, protectionist policies, and currency fluctuations, which influenced the competitiveness and volume of agricultural exports. The metals and industrial sector, despite domestic demand support, faced a wide array of risks impacting operational stability and long-term growth. Global commodity price swings and fluctuating demand, especially from China and the U.S., made profitability unpredictable and raised concerns about investment returns. Environmental and regulatory pressures intensified, with stricter oversight on pollution, land use, and water management increasing compliance costs and potential liabilities. Operationally, supply chain disruptions, labor issues, and safety concerns created delays and raised costs. At the same time, companies were required to make substantial capital investments to modernize facilities and meet ESG standards, often under uncertain market conditions. Geopolitical risks, particularly in raw material sourcing regions, added further uncertainty, complicating procurement and long-term strategic planning.

RECENT TRENDS AND FUTURE OUTLOOK

As we move into the financial year 2025, the Indian agriculture sector is expected to sustain its positive trajectory, supported by continued government focus on infrastructure development, technological adoption, and policy reforms. Investments in modern irrigation systems, advanced warehousing, and cold chain logistics are projected to further reduce post-harvest losses and enhance market linkages. The increased deployment of genetically modified (GM) crops and precision farming technologies is anticipated to improve crop productivity and resilience against climatic variability, helping Indian farmers achieve better yields and incomes. Efforts towards pulse self-sufficiency are expected to consolidate, aided by the release of early maturing varieties and supportive price mechanisms. On the global front, economic growth is forecasted to stabilize, with the IMF projecting a moderate global GDP growth rate near 3.0% in 2025. Inflationary pressures are expected to remain subdued in most economies, bolstered by easing commodity prices and improved supply chain efficiencies. Nonetheless, geopolitical risks and potential disruptions continue to pose downside risks to growth and trade flows. Central banks, including the RBI, are likely to maintain a vigilant monetary policy stance, balancing growth support with inflation control. Global trade volumes are anticipated to witness gradual improvement, supported by increased industrial activity and recovery in consumer demand. The World Bank forecasts a further decline in the commodity price index by approximately 4% in 2025, driven mainly by softening prices in energy, food, and fertilizers. In contrast, base metal prices are projected to rise due to sustained demand from infrastructure development and the green energy transition. For India, the moderation in commodity import prices is expected to support domestic inflation containment, enhancing economic stability. This environment provides fertile ground for growth in both agricultural and metals sectors. The Company remains focused on leveraging these favorable trends through strategic investments, innovation, and agile market operations to strengthen its competitive position in the year ahead.

SEGMENT WISE PERFORMANCE

The Companys main business is trading activities. All other activities of the company revolve around the main business. As such there are no separate reportable segments, as per Ind AS-108. However, for the consolidated Financials the Company now has three reportable segments which consist of Trading Activities, Manufacturing Activities and Other Activities in accordance with Ind AS-108.

RESEARCH AND DEVELOPMENT

Company recognizes the importance of Research and Development across all important areas and continues to maintain and update its functional facilities, in spite of its financial position in order to meet the changing product requirements of the customers, achieve cost efficiencies and meet compliance requirements of statutory agencies.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Internal Control measures and systems are established to ensure the correctness of the transactions and safeguarding of the assets. Considering the size and nature of activities, the company has an adequate internal control system covering both accounting and administrative control. In addition, the internal audit is carried out periodically. The management ensuring an effective internal control system so that the financial statements and reports give a true and fair view and during the year under review no material or serious observation has been received from the Internal Auditors of the Company for inadequacy or ineffectiveness of such control.

CAUTIONARY STATEMENT

This Annual Report contains forward-looking statements that involve inherent risks and uncertainties. The Companys actual results may differ materially from those expressed or implied in these forward-looking statements. Factors that could cause such differences include economic conditions, market demand, regulatory changes, strategic initiatives, and the competitive landscape. Company does not undertake any obligation to update these forward-looking statements. Investors are advised to carefully consider the risk factors discussed in this Annual Report and rely on their independent judgment regarding the Companys future performance. The company assumes no responsibility to update or revise forward-looking statements to reflect new events or circumstances.