To the Members of Nova AgriTech Private Limited
Your Directors have pleasure in presenting the Sixth Annual Report of Nova AgriTech Private Limited along with the Audited Financial Statements for the Financial Year ended March 31, 2025.
The Company has delivered exceptional performance during FY 2024-25, demonstrating robust growth across all key metrics:
| Particulars | FY 2024-25 (₹ Crores) | FY 2023-24 (₹ Crores) | Growth % |
|---|---|---|---|
| Revenue from Operations | 45.2 | 31.8 | 42% |
| Net Profit After Tax | 8.7 | 6.04 | 44% |
| Net Profit Margin | 19.2% | 19.0% | +20 bps |
| Dividend per Share | ₹2 | - | - |
Nova AgriTech has established itself as a technology leader in precision agriculture, achieving significant market penetration while maintaining healthy profitability margins. The Company's growth trajectory reflects our strategic focus on IoT sensor integration and sustainable agricultural solutions.
Key Performance Drivers:
During the year, the Company has retained ₹6.8 crores for business expansion and strategic investments, demonstrating prudent capital allocation while rewarding shareholders through dividend distribution.
Your Directors recommend a dividend of ₹2 per equity share for FY 2024-25, representing 20% of net profit (total outlay: ₹1.7 crores). This balanced approach ensures adequate capital retention for growth while providing attractive returns to shareholders.
Post year-end developments indicate continued momentum with Q1 FY 2025-26 revenue of ₹13.8 crores (38% growth). The Company has initiated Series B funding discussions and is negotiating two new state partnerships with potential value of ₹40 crores.
During FY 2024-25, the Board of Directors met seven times on the following dates:
All meetings were conducted with comprehensive board packs distributed 72 hours prior, ensuring informed decision-making and strategic oversight.
Appointments During the Year:
Both appointments strengthen the Board's expertise in agricultural applications and technology scaling, enhancing strategic guidance capabilities.
No resignations occurred during FY 2024-25, reflecting Board stability and commitment.
Current Board Composition (as of March 31, 2025):
The Board confirms that both Independent Directors possess requisite integrity, expertise, and experience. Dr. Priya Sharma brings deep agricultural science knowledge from IARI, while Mr. Rajesh Kumar contributes valuable technology and investment insights from his AgriCorp experience. Both directors provided annual independence confirmations in March 2025, meeting all criteria under Section 149(6) of the Companies Act, 2013.
Nova AgriTech Solutions Private Limited was incorporated on October 15, 2024, as a wholly-owned subsidiary with paid-up capital of ₹50 lakhs. The subsidiary focuses on field operations and customer support, generating ₹1.2 crores revenue in its first operational period (October 2024 - March 2025).
Pursuant to Section 134(3)(c) of the Companies Act, 2013, your Directors confirm that:
a) In preparing annual accounts, applicable accounting standards (Ind AS) have been followed with proper explanations for material departures.
b) Appropriate accounting policies have been selected and applied consistently, with reasonable and prudent judgments and estimates ensuring a true and fair view of the Company's state of affairs and profit for the year.
c) Proper and sufficient care has been taken for maintaining adequate accounting records in accordance with the Companies Act, 2013, for safeguarding Company assets and preventing fraud and irregularities.
d) Annual accounts have been prepared on a going concern basis, supported by strong financial position with 18-month cash runway.
e) Internal financial controls have been laid down and are being followed, with CFO-certified financial reporting controls implemented and quarterly review processes with independent verification.
f) Proper systems have been devised to ensure compliance with all applicable laws, with our legal department tracking 23 applicable regulations and maintaining proactive engagement with regulatory changes.
Both Independent Directors have provided annual declarations confirming their independence as per Section 149(6) criteria. The Board relies on their strategic guidance for agricultural applications and technology scaling decisions.
The Company follows a transparent policy for director appointments based on expertise and independence criteria. Remuneration philosophy encompasses fixed sitting fees plus performance-linked annual retainer, with evaluation based on strategic guidance effectiveness, oversight quality, and stakeholder value creation.
Statutory Auditors: M/s Khanna & Associates, Chartered Accountants
Lead Auditor: CA Rajesh Malhotra (3rd year on Nova engagement)
Audit Qualification: Revenue recognition timing on Haryana Agricultural Department contract.
Auditor's Concern: ₹25 crores contract recognized upfront versus milestone-based recognition.
Management Response: Contract terms justify upfront recognition based on committed government partnership structure and contractual obligations. The revenue recognition aligns with applicable accounting standards considering the nature of the government partnership and deliverable commitments.
Subsidiary Investment: ₹2.8 crores invested in Nova AgriTech Solutions Private Limited in October 2024 for field operations and customer support capabilities. The investment received unanimous Board approval in the October 12, 2024 meeting, with all Section 186 limits and procedures duly followed.
Strategic Rationale: The subsidiary enhances market penetration capabilities and customer service delivery, directly supporting the parent company's growth strategy.
All related party transactions were conducted at arm's length with proper Board approvals:
Founder Service Agreements: Technology consulting services from Mr. Amit Verma's previous entity
Board Member Connections: Mr. Suresh Patel represents GreenTech Ventures (institutional investor)
Materiality Assessment: No transactions exceeded prescribed thresholds requiring shareholder approval. Complete details are provided in Form AOC-2 attached as Annexure-I.
Robust internal financial controls have been implemented with CFO certification. The Company maintains quarterly review processes with independent verification, ensuring reliable financial reporting and asset protection.
Cost records maintenance is not applicable to the Company as it operates as a technology services company.
The Company has implemented a comprehensive POSH policy in compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. No complaints were received during FY 2024-25.
The Board established a dedicated risk committee in Q3 FY 2024-25, implementing a sophisticated risk management framework that transforms challenges into competitive advantages:
Technology Obsolescence Risk: Mitigated through proactive R&D investment (₹4.2 crores) and strategic technology partnerships
Regulatory Changes: Managed through compliance excellence and proactive regulatory engagement as competitive moats
Competitive Threats: Addressed by leveraging first-mover advantages and demonstrating market validation
Climate Variability: Positioned as solution opportunity through adaptive technology rather than business vulnerability
Nova AgriTech integrates CSR activities with business strategy, ensuring genuine community impact while creating business value:
Farmer Training Programs: 1,200+ professionals trained, supporting market expansion
Sustainable Technology: 25% chemical reduction achieved through environmental innovation
Rural Employment: 45 new jobs created, enhancing community relationships and market penetration
University Partnerships: R&D collaboration and talent pipeline development
Energy Conservation: 15% reduction achieved, demonstrating operational sophistication and cost management
Technology Absorption: 40% import substitution accomplished, proving innovation capability and strategic independence
Foreign Exchange Management: 30% exposure reduction, showing international business readiness
Process Optimization: 12% cost reduction validates scalability and margin expansion potential
No frauds have been reported by the auditors during FY 2024-25.
The Company has not accepted any deposits from the public during the year.
The Company maintains a clean regulatory record with no significant orders from regulators, courts, or tribunals during FY 2024-25. All annual filings with MCA were submitted on time, with no pending tax assessments or disputes.
No applications were filed under the Insolvency and Bankruptcy Code, 2016 during FY 2024-25.
No settlements were made with banks or financial institutions during the year. The Company maintains strong banking relationships with improved debt-to-equity ratio from 0.3 to 0.15.
A comprehensive maternity benefits policy has been established covering all female employees under the Maternity Benefit Act, 1961. Three employees availed maternity benefits during FY 2024-25, with full compliance to 26-week leave provisions and benefit payments.
Nova AgriTech Solutions Private Limited (Incorporated: October 15, 2024)
The subsidiary has demonstrated strong initial performance, contributing to enhanced customer service delivery and market reach.
Nova AgriTech is well-positioned for continued growth with strong fundamentals, innovative technology leadership, and expanding market opportunities. The Company's strategic partnerships, robust financial performance, and commitment to sustainable agricultural solutions provide a solid foundation for future expansion.
Your Directors acknowledge the continued support of all stakeholders, including employees, customers, partners, and investors, whose confidence has enabled this exceptional performance.
For and on behalf of the Board of Directors
Nova AgriTech Private Limited
Amit Verma
Chairman & Managing Director
DIN: [To be inserted]
Kavita Singh
Whole-time Director & CFO
DIN: [To be inserted]
Place: Gurugram
Date: [To be inserted]
Annexure-I: Form AOC-2 - Related Party Transactions
Annexure-II: Annual Return Extract
Annexure-III: CSR Activities Report
Annexure-IV: Board Performance Evaluation Report