Mayukh Dealtrade Ltd Management Discussions

Your company was originally incorporated as Mayukh Commercial Limited at Kolkata, West Bengal, as a limited company under the provision of Companies Act, 1956 vide certificate of incorporation dated 14th august, 1980 bearing corporate identification number U51219WB1980PLC032927 issued by the Registrar of Companies, Kolkata, West Bengal. The name of our company was changed to "Mayukh Dealtrade Limited” vide a fresh certificate of incorporation dated august 26, 2024 issued by registrar of companies, Kolkata, further name of our company was changed to "Sattva Sukun Lifecare Limited” vide a fresh certificate of incorporation dated December 12, 2024 issued by registrar of companies, Mumbai.

The company is mainly engaged in manufacturing and supply of all type of Kapoor Dani, Burner, Aroma Burner, Ceramic Kapoor Dani, aroma oil burner and Aroma oil burner cum Night Lamp, Night Lamps, home & office decoration lighting products, flower pots with lighting, lighting flower vase, Aroma Burner with timer and same kinds of other products on retail as well as on wholesale basis in India or elsewhere, selling of all these products through outlets and also on online selling platforms portals (India Mart, Amazon, Flipkart, Snapdeal Etc.).

Further, we are also involved in the business of producers, manufacture, buy, sell, process, convert, laminate reprocess or otherwise deal in all models, shapes, sizes, capacities and varieties of Kapoor Dani, burner, aroma burner, Ceramic Kapoor Dani, aroma oil burner and Aroma oil burner cum night lamp, Night Lamps, home & office decoration lighting products, flower pots with lighting, lighting flower vase, Aroma Burner with timer and same kinds of other products.

Sattva Sukun Lifecare Limited (Formerly Known as Mayukh Dealtrade Limited) is one of the strongest manufacturers and suppliers of Kapoor Dani, Burner in the Indian domestic market. Our product range includes various types of Kapoor Dani, burner, aroma burner, Ceramic Kapoor Dani, aroma oil burner and Aroma oil burner cum night lamp, Night Lamps, home & office decoration lighting products, flower pots with lighting, lighting flower vase, Aroma Burner with timer and same kinds of other products like Vaporizer. Our production facilities are ISO 9001:2015, certified.

The company has made strong growth in recent months and today we have strong presence in markets of India, Naturally, the advantage is passed on to our customers. A better design, better attitude towards production process, timely dispatch, good packing and a responsive approach - all are sure to help us grow further miles ahead of competition. We have a strong customer profile across India to their satisfaction.

GLOBAL OVERVIEW

The global wellness, aromatherapy, and lifestyle products market has been witnessing steady growth in recent years, driven by increasing consumer awareness towards holistic well-being, spiritual practices, and home ambiance enhancement. The rising adoption of aromatherapy as an alternative therapy for stress relief, relaxation, and overall health improvement is creating significant opportunities for products such as aroma burners, kapoor

danis, and related accessories.

Across Asia-Pacific, particularly in India, incense, kapoor (camphor), and aroma-based products have strong cultural and traditional significance. This demand is further supported by urban consumers seeking eco-friendly, aesthetically designed, and multi-purpose lifestyle products. Globally, the popularity of yoga, meditation, and wellness tourism has accelerated the use of aroma burners and diffusers, positioning them not only as utility items but also as lifestyle essentials.

GLOBAL CAMPHOR MARKET

Market Size & Growth Projections

One report estimates the global camphor market to reach USD 0.74 billion by 2032, with a compound annual growth rate (CAGR) of around 4.3% during 2023-2032.

Synthetic camphor, in particular, is projected to grow from USD 395.1 million in 2021 to USD 700.9 million by 2031· a CAGR of 6% Pharma-grade synthetic camphor is expected to reach USD 652.4 million by 2034, growing at a CAGR of 3.8% from 2024 ..

OUTLOOK

With an anticipated economic downturn, the camphor industry faces several key challenges during the shortand medium-term forecast. These include shifting consumer preferences and the need for industrial policy amendments to align with growing environmental concerns, significant fluctuations in raw material costs due to geopolitical tensions, and expected subdued economic growth. Despite the anticipated challenges, the camphor industry can leverage valuable opportunities by prioritising resilience and innovation. This entails maintaining investment discipline, actively engaging in business ecosystems, and demonstrating a strong commitment to sustainability. Altogether, these efforts underscore the chemicals industrys pivotal role in driving sustainable solutions.

INDIAN FRAGRANCE MARKET

The fragrance sector in India is experiencing a significant transformation. This upheaval is propelled by evolving consumer preferences, increased disposable income, and a growing demand for personal care and cosmetic products. According to Statista, the fragrances market in India is projected to grow by 1.49% from 2024 to 2028, reaching a market volume of US$ 336.20 million in 2028.

OUTLOOK

Overall, the fragrance sector in India is witnessing a remarkable growth trajectory, driven by changing consumer preferences and a growing demand for personalized and natural products. The market is expected to continue evolving, with a strong emphasis on Customization, inclusivity, and product diversification to cater to varied customer needs.

INDIAN CAMPHOR MARKET

India ranks as the worlds second-largest importer of camphor, mainly sourcing the product from China, Germany, and the United Kingdom. Natural camphor is derived from the wood of camphor trees primarily found in Japan, Taiwan, and Vietnam. In contrast, synthetic camphor is produced from pine trees, making this variant more cost-effective and scalable. However, despite Indias abundance of pine trees, the countrys output of camphor only accounts for 17%, with 80% of it sourced from imports. This underscores the necessity for camphor companies to import Turpentine.

The Indian camphor market is witnessing notable growth due to the increasing use of camphor in natural products, medical applications, religious rituals, and agriculture. Camphor is also utilised in skincare products to reduce acne and pimples. In the pharmaceutical industry, camphor tablets are extensively used to alleviate pain, swelling, congestion, and coughs. Additionally, camphor tablets are applied in agriculture as a repellent to

ward off insects and reptiles. The use of camphor in religious rituals in India has also contributed to market growth.

The camphor market in India is highly competitive, with numerous smaller players present in the industry. Synthetic camphor, which is more affordable and widely available, has a higher demand than natural camphor, which is at least three times more expensive. In India, camphor is mainly used for religious purposes, and for preparing pharmaceuticals, tire, paints, Fragrance & Flavour, and cosmetics.

FINANCIAL PERFORMANCE

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year under review, the Companys consolidated total revenue has increased from Rs. 355.73 lakh in 2023-24 to Rs. 566.69 lakh in 2024-25. Profit after tax increased by Rs. 129.91 lakh from Rs. 119.04 lakh to Rs. 248.95 lakh. For standalone performance and consolidated performance, the members may refer to the Boards report and Financial Statement.

KEY FINANCIAL RATIO ANALYSIS :

OPPORTUNITIES

Fragrance & Kamphor significantly influence purchasing decisions across various FMCG categories, including home and personal care, and food & beverage, among others. India boasts an abundance of skilled labour, raw materials, and cost-effective production. This presents a substantial opportunity for the country to emerge as a global chemical hub. Indias current per capita consumption of chemicals, despite being low compared to the global average, offers an attractive market. This is owing to its large population base, rising per capita income, and increasing demand from end-use industries. The growing demand for personal care and home care products presents a significant growth avenue in the fragrance market. Additionally, digitalisation provides competitive advantages for chemical companies through improved operations management, innovation, and new digital business models. Chemical companies are increasingly implementing digitalisation initiatives and tools in their supply chains, demand planning, and pricing strategies.

THREATS

While significant opportunities abound, certain factors pose threats to growth. The potential obstacles to "Sattva Sukun” growth include ongoing conflicts, geopolitical tensions, escalating crude oil prices, domestic inflationary pressures, and disruptions in the global supply chain. Despite these risks, the Company is well- positioned to capitalize on sector opportunities. Its successful forward integration has solidified its position in the Fragrance & Camphor market.

RISKS AND CONCERNS

The continued policies of Government controlling free exports and volatile economic environment have a bearing on the overall performance of the company.

OPERATIONAL REVIEW

Considering the business environment your directors foresee the startup of business operation in the near future. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has suitable and adequate system of Internal Controls commensuration its size and nature of operations primarily to ensure that - the assets are safeguarded against loss from unauthorized use or disposition;

- the transactions are authorized, recorded and reported correctly and - Code of conduct, Policies and applicable statutes are duly complied with. As a measure of Internal Control System, which has been evolved over the years, the Company has established a methodical system of Annual Budgeting and Management Information System (MIS). In addition, Administrative and HR activities of the Company are also brought within this purview.

RISK MANAGEMENT

Risk is an integral part of the business process. To enhance the risk management process, the company has mapped the risks. Risk arises for achieving business objectives are identified and prioritized. Risk mitigation activity plans are established and executed as and when need arises. Periodical reviews are carried out to assess the risk levels.

ENVIRONMENT AND SAFETY

The Company is conscious of the importance of environmentally clean and safe operations. The Companys policy requires the conduct of all operations in such manner so as to ensure safety of all concerned, compliance of statutory and industrial requirements for environment protection and conservation of natural resources to the extent possible.

HUMAN RESOURCES

Human resources development, in all its aspect like training in safety and social values is under constant focus of the management. Relations between management and the employees at all levels remained healthy and cordial throughout the year. The management and employees are dedicated to achieve the corporate objective and the targets set before the Company.

INFORMATION TECHNOLOGY

The Company views technology as a key pillar for organizational growth and business continuity. Innovations in technology enable processes and operational effectiveness. TIs data-driven platform with trusted software and hardware platforms drives seamless processes across the Company. During the year, In-house hosted critical enterprise application software, SAP has been seamlessly migrated and hosted on to Cloud4C Cloud, which offers enhanced security, elasticity, improved performance and built-in automatic backups to secure data.

INTERNAL CONTROL

The Company has designed a reliable internal financial reporting and control system to record financial and operational information in accordance with all applicable internal controls and other regulatory compliance requirements. The Audit Committee reviews the findings of the Internal and Statutory Auditors. This ensures the sustained adequacy and efficiency of internal controls. Additionally, the Board oversees the Audit Committees examination and ensures that prompt and adequate measures are taken to limit the risk and rectify the situation.

CORPORATE SOCIAL SERVICE

The Company is below the threshold limit for mandatory spend on Corporate Social Responsibility.

CAUTIONARY STATEMENT

The Management Discussion and Analysis section of this document contains forward-looking statements regarding the Companys future expectations and projects related to growth strategy, product development, market position, expenses, and financial results. These statements are based on certain assumptions and expectations, but the Company cannot guarantee their accuracy or realization. Factors such as economic conditions, government regulations, tax laws, and incidental factors may impact the Companys operations. The Company takes caution to identify and mitigate any potential risks and uncertainties that could affect its performance.

Conservation of Energy, research and development, Technology absorption, foreign exchange earnings and outgo. Particulars pursuant to the Companies (Accounts) Rules, 2014

(A) Conservation of energy-

13 The steps taken or impact on conservation of energy:

The Company is engaged in the manufacturing and processing of aroma burners. Considering the scale and nature of operations, the Companys activities are not energy-intensive. However, continuous efforts are made to optimize the use of energy in production and allied activities. The Company emphasizes efficient utilization of electricity, fuel, and other resources through the following measures:

• Adoption of energy-efficient machinery and equipment in the production process.

• Regular preventive maintenance of plant and equipment to minimize energy losses.

• Rationalization of production schedules to ensure optimum utilization of resources.

• Awareness among employees for judicious use of energy in day-to-day operations.

The impact of the above measures has been positive in terms of reduced energy consumption, cost savings, and contribution towards sustainable and eco-friendly operations.

These Air Curtains reduces penetration of insects and unconditioned air into a conditioned space resulting into preservation of air conditioning effect and low consumption of power. However, the Company is taking all possible measures to conserve energy. Several environment friendly measures were adopted by the Company such as Installation of capacitors to save power, Installed Thin Film Transistor (TFT) monitors that saves power, LED Lights, Creating environmental awareness by way of distributing the information in electronic form, Minimizing air-conditioning usage, Shutting off all the lights when not in use.

The company is also steadfast about maintaining a zero wastage and eco-friendly business process. To do so the company has established its own water treatment and recycling unit. Company stands true to its vision statement and strives to continuously innovate, upgrade, and contribute back to society.

(ii) The steps taken by the company for utilizing alternate sources of energy - The company uses soler panel to generate extra electricity.

(iii) The capital investment on energy conservation equipments -

(B) Technology absorption-

(i) The efforts made towards technology absorption - The Company continuously monitors and keep track of technological up gradation in the field of Burner manufacturing and the same are reviewed and considered for implementation. Your Company continued its focus on quality up-gradation and product enhancements.

The benefits derived like product improvement, cost reduction, product development or import substitution

a. Enhanced productivity & reduction in production time;

b. Total traceability of each piece during entire manufacturing process through customized software;

c. Reduction in re-work & rejection in manufacturing.;

d. Enhancement of product spectrum e. Improvement in quality of existing products.;

(ii) The benefits derived like product improvement, cost reduction, product development or import substitution - Not Applicable

(iii) In case of imported technology (imported during the last three years reckoned from the beginning of the financial year) - Not Applicable

(a) The details of technology imported;

(b) The year of import;

(c) Whether the technology been fully absorbed;

(d) If not fully absorbed, areas where absorption has not taken place, and the reasons thereof; and (v) The expenditure incurred on Research and Development - Nil

(C) Foreign exchange earnings and outgo-

The Foreign Exchange earned in terms of actual inflows during the year and the Foreign Exchange outgo during the year in terms of actual outflows - Nil