Futura Polyesters Ltd Management Discussions

Your Directors are pleased to present the Management Discussion and Analysis Report for the year ended 31^stMarch, 2024.

Investors are cautioned that these discussions contain certain forward looking statements that involve risk and uncertainties including those risks which are inherent in the Companys growth and strategy. The Company undertakes no obligation to publicly update or revise any of the opinion or forward looking statements expressed in this report consequent to new information or developments, events or otherwise.

1) INDUSTRY STRUCTURE AND DEVELOPMENTS OF THE COMPANY AND THRUST OF THE BUSINESS:

Futura is currently selling its freehold land available where originally the Company had its manufacturing unit. The freehold land is the only asset remaining as on existing source of funds in order for Company to sell and pay off its creditors.

2) BUSINESS PERFORMANCE AND SEGMENT REPORTING:

The revenue of the Company from discontinued operations during the financial year ended 31^st March, 2024 was Rs. 12.90 Lakhs as against Rs. 9.42 Lakhs in the previous financial year ended 31^st March, 2023. The Company faced severe financial crisis and suspended its operations with effect from 29^th December 2012.

3) OUTLOOK AND PATH FORWARD:

With the full settlement of all secured bank dues, receipt of No Dues Certificates from allconsortium lenders, and the restoration of full banking access with effect from 18th February 2026, the Company has completed the most critical phase of its financial rehabilitation. TheBoard is now focused on the following priorities:

(a) discharge of pending statutory compliances including filing of all overdue Annual Returns, financial statements, and regulatoryfilings with MCA, SEBI, and BSE;

(b) regularization of the Board composition with requisitenumber of Independent Directors and appointment of required KMPs;

(c) continuation of landsales at Chennai Manali to generate funds for meeting remaining obligations to workmen,creditors, and statutory authorities;

(d) pursuing revocation of BSE trading suspension inaccordance with applicable SEBI and BSE requirements upon meeting all prescribedconditions; and

(e) considering options for revival or orderly winding-up of the Companysaffairs in the best interest of all stakeholders.

The Directors acknowledge the patience and forbearance of all shareholders, creditors, workmen, and other stakeholders during this prolonged period of adversity and wish to assure them that every effort is being made to regularise the Companys position.

4) ADEQUACY OF INTERNAL FINANCIAL CONTROL:

Despite various challenges the Company has tried to place adequate internal financial controls with reference to the Financial Statements commensurate with the size, scale complexity of its operations and financial situation of the Company.

5) HUMAN RESOURCE DEVELOPMENT:

During the year under review for more than 2 quarters, the control of management was in the hands of official liquidator as Bombay High Court refused to grant extension and directed the ex - Directors to handover possession of the office premises and records of Futura Polyesters Limited to the Official Liquidator.

A settlement is being arrived at with workmen at Chennai. The Directors wish to place on record their appreciation for the co-operation extended by the Ex-Workmen.

6) SEGMENT-WISE PERFORMANCE:

The Company was into single reportable segment.

7) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The total income of the Company for the year ended 31^stMarch, 2024 stood at Rs. 12.90 lakhs (previous year Rs. 9.42 lakhs). The Company has loss (discontinued operation) of Rs. 565.99 lakhs.

8) DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

The Net worth of the Company as at the Financial Year ending on 31^st March, 2024 is Rs. (42,526.47) lakhs as compared to Rs. (41822.25) lakhs as at the end of previous financial year ended on 31^stMarch, 2023.

9) DISCLOSURE OF ACCOUNTING TREATMENT:

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind-AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards)

(Amendment) Rules, 2016 read with Section 133 of the Companies Act, 2013.

10) COMPLIANCE:

During the year under review the control of management was in the hands of official liquidator as Bombay High Court refused to grant extension and directed the ex - Directors to handover possession of the office premises and records of Futura Polyesters Limited to the Official Liquidator.

11) CAUTIONARY STATEMENT:

The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors.