Samyak International Ltd Management Discussions

Your Directors hereby presents the Management Discussion and Analysis Report (MDAR) for the year ended on 31 st March, 2026:

Global Economic Review

The global economy in FY2026 demonstrated resilience despite persistent geopolitical, trade and energy-related uncertainties. Global GDP growth stabilized at modest but uneven levels across regions, supported by disinflation, a gradual shift toward monetary easing in select economies and continued investments in technology and infrastructure. However, medium-term growth prospects remained constrained by structural challenges, including slowing productivity, elevated public debt and increasing geo-economics fragmentation.

Global trade moderated during the year following an inventory led recovery. The trading environment was shaped by tariff measures, industrial policies, selective trade restrictions and disruptions to key shipping routes, leading to a heightened focus on supply chain localization and resilience.

Inflation eased across most major economies, supported by softer commodity prices, improved supply chains and the lagged effects of tighter monetary policy, although services inflation remained sticky in several regions. Energy prices remained volatile during FY2026, particularly crude oil and natural gas, with periodic fluctuations driven by geopolitical tensions in key producing and transit regions. While medium-term supply expectations improved, near-term volatility continued to impact cost structures across energy intensive industries, including chemicals. Overall, the macroeconomic environment in FY2026 was characterized by stable but modest growth, easing inflation and gradually improving financial conditions in the latter part of the year, offset by elevated geopolitical and policy risks.

Sources: International Monetary, January 2026 Updates and April 2026 International Energy Agency (IEA), Oil Market Report, December 2025

Indian Economic Outlook

The Indian economy is estimated to have grown at around 7.4-7.6% in FY2026, reaffirming its position as the fastest growing major global economy. Growth was driven by strong domestic demand, sustained government capital expenditure and resilient performance across manufacturing and services sectors, particularly infrastructure, construction, financial services and technology-enabled services.

Inflation moderated during FY2026, with headline CPI inflation averaging around 4.0 4.5%, supported by easing food prices, improved supply-side management and relatively stable core inflation. Indias external trade remained resilient in FY2026 despite a challenging global environment characterised by muted goods demand, trade fragmentation and geopolitical disruptions. Total exports (merchandise and services combined) are estimated at approximately USD 840 860 billion, supported primarily by strong growth in services exports, while merchandise exports remained under pressure due to weak global demand.

Merchandise exports in FY2026 stood at around USD 430 440 billion, reflecting only marginal growth over the previous year amid subdued global demand. Lower demand from key markets, pricing pressures in select commodities and chemicals and a slowdown in global manufacturing weighed on export momentum. Merchandise imports rose to approximately USD 740 770 billion, driven by higher energy imports, strong domestic investment demand for capital goods and elevated precious metal prices, partly offset by moderation in non-essential imports. Services exports continued to be a key growth engine, reaching approximately USD 410 420 billion and registering highsingle-digit growth. This was supported by robust demand for IT, business and professional services, financial services and the continued expansion of global capability centres. Services imports increased modestly to around USD 200 205 billion, resulting in a sizeable services trade surplus of approximately USD 210 215 billion, which significantly cushioned the overall trade balance. Consequently, Indias overall trade deficit widened in FY2026 due to elevated merchandise imports; however, the strong services surplus continued to play a stabilising role. The merchandise trade deficit is estimated at approximately USD 310 330 billion, while the large net services surplus helped keep the current account deficit within manageable levels, reinforcing external sector resilience. Government capital expenditure remained a key growth catalyst, with Central Government capex sustained at around 3.1% of GDP, reflecting a continued focus on infrastructureled development. The Union Budget reiterated its longterm commitment through elevated allocations toward transportation, energy transition, manufacturing ecosystems and logistics, alongside continued policy support for chemicals, fertilisers and domestic manufacturing.

Sources: Economic Survey 2025 26, RBI, Union Budget, Press Information Bureau (PIB), India Brand Equity Foundation (IBEF), Monetary Policy Statements and Growth Projections FY26.

Chemical Industry

Global Chemical Industry

Global chemical production (excluding pharmaceuticals) grew by approximately 2.2 2.5% in FY2026, indicating a gradual but incomplete recovery from recent cyclical lows. Overall output remained below long-term historical growth trends, reflecting structural headwinds in mature markets. The improvement was supported by easing destocking pressures, stabilisation in energy prices and a modest recovery in downstream demand. However, growth remained uneven across regions, shaped by divergent industrial activity, energy cost dynamics and evolving trade realignments. In advanced economies, chemical production showed mixed signs of stabilisation in FY2026, ranging from flat to modest contraction following sharp declines in the previous year. While industrial activity stabilised, growth remained constrained by structurally higher energy costs, relatively tight financial conditions and weak construction demand. Recovery was primarily led by consumer-oriented segments and selective manufacturing value chains, with overall utilisation rates remaining below pre-pandemic levels.

Across emerging markets, chemical production growth moderated to approximately 3.7 4.0% in FY2026, compared to stronger growth in the previous year. Despite slower momentum, emerging markets continued to be the primary drivers of global chemical demand, supported by domestic consumption, infrastructure investment and manufacturing expansion. In China, the worlds largest chemical producer, growth eased to around 4% in FY2026. The moderation reflected structural overcapacity, continued weakness in construction and real estate-linked demand and softer export momentum. Growth was supported by demand from consumer goods, electronics and energy transition-related segments, while pricing pressures persisted due to excess capacity. Other emerging Asian markets experienced a gradual recovery, with chemical production growing by around 3.0 3.5% in FY2026. India emerged as a key contributor, with production expanding by approximately 4.5%, supported by strong domestic demand, infrastructure spending, growth in specialty chemicals and favourable policy support. Supply chain diversification trends continued to benefit Indian chemical producers.

In the United States, chemical demand remained subdued in FY2026, with production declining by approximately 1%, following a weak previous year characterised by destocking and subdued industrial activity. Persistently low utilisation rates, weak demand from construction and automotive sectors and structural overcapacity constrained recovery.

In the European Union, chemical production declined marginally by around 0.5 1.0% in FY2026, reflecting persistent cost competitiveness challenges and subdued industrial demand, with recovery remaining slow and uneven across end-use segments. In South America, chemical production expanded by approximately 2.0 2.5% in FY2026, supported by recovery in consumer demand, increased automotive production and sustained demand for agricultural chemicals, particularly fertilisers and crop inputs. Japan recorded a marginal recovery of around 0.5% in FY2026 following multiple years of decline. While demand from technology and consumer segments stabilised, continued weakness in automotive production limited the pace of recovery.

The global agrochemicals market, which experienced a sharp downturn in earlier years due to channel destocking, price corrections and volatile weather conditions, showed early signs of stabilisation during FY2026. While volumes remained below peak levels, inventory normalisation and improving farm economics supported a gradual recovery. Export pressures persisted, though the pace of decline moderated, indicating improving underlying demand conditions.

Sources: Outlook for the Chemical Industry 2025-26 and Fundamentals of the Group Economic Environment: BASF Integrated & Combined Management Reports, McKinsey & Company - Global Chemicals Industry Insights, India Brand Equity Foundation (IBEF), Deloitte Insights -Chemical Industry Outlook

Indian Chemical Industry

India continues to strengthen its position as a key global chemicals manufacturing hub. As of FY2026, India remains among the top six producers of chemicals globally and among the top three in Asia, with the sector contributing approximately 5 6% to Indias GDP and around 9% to manufacturing gross value added. With production spanning over 80,000 chemical products, India represents one of the most diversified chemical manufacturing bases globally.

The Indian chemical industry is estimated to have reached approximately USD 300 - 320 billion in FY2026, supported by steady mid-single-digit growth. Growth momentum remains structurally strong, driven by sustained domestic demand across agriculture, infrastructure, FMCG, automotive and energy-transition segments, alongside rising global interest in India as a resilient and diversified sourcing destination. Specialty chemicals and export-oriented segments continue to outperform the broader industry.

The sector continues to attract long term foreign capital. Cumulative FDI equity inflows into the chemical industry (excluding fertilizers) reached approximately USD 23 24 billion between April 2000 and June 2025. Manufacturing led FDI strengthened in 2025, supported by policy continuity, infrastructure development and supply chain realignment trends. Strategic investment interest continues to be led by Japan, South Korea and Southeast Asia, as global players actively diversify supply chains beyond China.

Policy Environment and Government Focus

Government policy continues to play a critical enabling role. The Union Budgets for FY2025 and FY2026 have maintained a strong focus on:

Import substitution and domestic value chain development Green and sustainable chemical manufacturing Expansion of renewable energy and EV ecosystems Decarbonisation and energy efficiency across industrial operations

Production-linked incentives (PLI), Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs), infrastructure investments and ongoing reforms remain aligned with strengthening Indias long-term competitiveness as a global chemical manufacturing destination.

Sources- IBEF Chemicals & Petrochemicals Industry (2025 updates), Ministry of Commerce & Industry / DGCIS Trade Data, Press Information Bureau India Chem & Budget Communications, ACFI Deloitte, Invest India, Expert Market Research

Business Overview

With respect to GDP growth, the extent of divergence between the projected growth rate of the economy and the actual outcome is disconcertingly large. Rapidly changing global economic & business conditions and technological innovation are creating an increasingly competitive environment that is driving companies to transform their operations globally. The divergence between expected growth rates and actual growth rate is large. Yet, overall investment and fixed investment rates have remained reasonably high. Company is committed to satisfy the clients with improved quality and accelerated delivery schedules with a focus on developing long term relationships and strengthening strategic partnerships. There has been no occurrence of any event or circumstance since the date of the last financial statements that may materially and adversely affect or is likely to affect the trading or profitability of our Company or the value of our assets or our ability to pay our liabilities.

Industrial Structure and Developments

Despite near-term challenges, the Indian chemical industry continues to be supported by strong structural fundamentals. Stable domestic consumption, favourable demographic trends, and ongoing policy support for manufacturing provide a resilient foundation for long-term growth. In addition, the continued realignment of global supply chains is creating incremental opportunities for Indian manufacturers to expand their presence in international markets, particularly in higher-value segments such as Speciality chemicals and advanced materials.

Import substitution remains a key driver of growth, supported by improving domestic capabilities, increasing investments in capacity and technology, and a broader focus on self-reliance. As a result, companies with integrated operations, strong process expertise, and reliable supply chains are well positioned to capitalise on these emerging opportunities over the medium to long term.

The Indian chemical industry is among the established traditional sectors of the country that play an integral role in the countrys economic development. This sector forms a part of the basic goods industry and is a critical input for industrial and agricultural development. The Indian chemical industry is one of the oldest industries in India and has made immense contribution to the industrial and agricultural development of India. It encompasses both large and small-scale units. The chemical industry covers over 70,000+ commercial products, and provides the feedstock to many downstream industries such as finished drugs, dyestuffs, paper, synthetic rubber, plastics, polyester, paints, pesticides, fertilizers and detergents.

During the year 2026-2027, the Companys performance showing increasing trend in profitability as compared to last year. Looking at global economic slowdown and other factors, the performance of Company is satisfactory. The Management is hopeful that Companys future is bright in the coming years.

Budget 2026: Impact on the Indian Chemical Sector

On February 1, 2026, Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27, outlining the Governments fiscal priorities for the upcoming financial year with a continued focus on economic growth, infrastructure development, and structural reforms.

The Union Budget 2026-27 reflects a clear policy direction toward strengthening domestic manufacturing capabilities and enhancing the global competitiveness of Indias chemical industry. In an environment shaped by supply chain disruptions, trade realignments, and increasing focus on self-reliance, the budget adopts a more targeted and infrastructure-led approach to industrial development. The emphasis is on building scale, improving efficiency, and enabling long-term resilience through a combination of capital investments, ecosystem development, and sustainability initiatives. Rather than relying on direct sectoral incentives alone, the policy framework focusses on creating enabling conditions that support capacity expansion, innovation, and integration across value chains. The budget also aligns industrial growth with future demand drivers by supporting downstream sectors such as electronics, semiconductors, biopharma, and textiles. This integrated approach is expected to create multiplier effects for the chemical industry, strengthening both domestic demand and export competitiveness. Overall, Budget 2026-27 lays the foundation for a more competitive and self-reliant chemical sector, with a clear focus on infrastructure, manufacturing depth, and sustainability-led growth.

Opportunities and Threats

Based on the facts and circumstances existing as of that date, the Company does not anticipate any material uncertainties which affects its liquidity position and also ability to continue as a going concern. The management will continue to closely monitor the evolving situation and assess its impact on the business of the Company.

The future performance of your Company would depend to a large extent on its ability to successful diversification, market of commodities. We are hopeful that through the combination of market developments and expansion activity, there will be healthy growth over the next few years.

Outlook and Risk

Indias near-term outlook remains stable but subject to a range of external and domestic risks. Global trade fragmentation, geopolitical tensions, and commodity price volatility, particularly in energy markets, could weigh on exports and industrial growth. Disruptions in key global shipping routes have also added to logistics costs and introduced uncertainty in trade flows.

Inflation, although moderating, continues to warrant close monitoring, leading the Reserve Bank of India to maintain a cautious policy stance. Food price volatility and movements in global energy prices remain key upside risks. In addition, evolving global financial conditions and capital flow dynamics could influence currency stability and domestic liquidity.

The pace of private investment recovery and global demand conditions will also play an important role in shaping near-term growth. At the same time, Indias strong domestic demand base, improving financial sector health, and ongoing structural reforms provide resilience against external shocks.

Looking ahead, Indias long-term growth trajectory remains favourable, supported by demographics, policy continuity, and sustained investments in infrastructure and technology. Increasing integration into global value chains, alongside a large and expanding domestic market, is expected to support continued economic expansion. Despite near-term uncertainties, India remains well positioned to sustain its status as one of the fastestgrowing major economies globally.

The Industrial Chemicals segment is expected to remain moderate, with continued softness in the agrochemical and pharmaceutical industries.

Sources: International Monetary Fund, World Economic Outlook, January 2026 Update, available at: https://www.imf.org/en/publications/ weo/issues/2026/04/14/world-economic-outlook-april-2026

International Monetary Fund, World Economic Outlook, January 2026 Update, available at: https://www.imf.org/en/publications/ weo/issues/2026/01/19/world-economic-outlook-update-january2026?utm Government of India, Union Budget 2026 27, available at: https:// www.indiabudget.gov.in/ Ministry of Statistics and Programme Implementation (MOSPI), Provisional Estimates of National Income 2024 25 and Quarterly GDP Estimates, available at: https://www.mospi.gov.in/uploads/ latestReleases/latest_release_1767781372753_1380ce82-f5a5-440d99e6-e6b35af0deb5_GDP_Press_Note_on_FAE_2025-26.pdf

Internal Control Framework

The Company has established a comprehensive corporate governance framework designed to promote accountability, transparency, and operational integrity. Its management functions within a structured environment, consistently adhering to defined financial policies, applicable accounting standards, and robust internal systems.

At the core of the Companys internal financial control environment is a strong Risk Management Framework, supported by well-defined planning and review mechanisms. These systems are reinforced by carefully chosen accounting policies, which are approved by the Audit Committee and the Board, and are periodically reviewed to ensure they remain relevant and compliant with evolving requirements.

Internal financial controls related to the preparation and presentation of financial statements are evaluated on an ongoing basis, with particular emphasis on critical and high-risk areas. Based on a thorough review conducted during the year, senior management concluded that there were no material weaknesses or significant deficiencies requiring disclosure.

The Company continues to strengthen its control environment through ongoing audits, proactive risk management initiatives, and continuous improvement of processes.

The adequacy of the same has been reported by the statutory auditors of your Company in their report.

Segment wise performance

The operation of the company consists of the single statement. Hence, Accounting Standard on Segment Reporting (AS-17) issued by The Institute of Chartered Accountants of India does not apply. Factors that may affect results of the operations: Financial conditions and results of operations of the company are affected by numerous factors inter alia-

Growth of unorganized sector and threat from local regional players.

Change in freight and forwarding charges.

General economic and business conditions.

Companys ability to successfully implement our growth strategy.

Prices of raw materials the company consume and the products it manufactures.

Changes in laws and regulations relating to the industry in which the company operates.

Changes in political and social conditions in India.

Any adverse outcome in the legal proceedings in which the company is involved.

The loss or shutdown of operations of our Company at any time due to strike or labour unrest or any other reasons.

Discussion on Financial Performance with respect to Operational Performance

The performance of the Company for the financial year 2025-2026 is summarized below:

(Rs. in Lacs)

PARTICULARS	STANDALONE		CONSOLIDATED
	As at March 31, 2026	As at March 31, 2025	As at March 31, 2026	As at March 31, 2025
Property, Plant and Equipment	135.93	8.76	312.51	430.37
Goodwill	0.00	0.00	0.20	0.20
Other Intangible Assets	0.00	0.00	2060.21	2349.99
Financial assets (Non-current)	3955.87	4138.75	3036.69	1602.90
Other Non-current assets	459.41	459.41	461.34	467.42
Current assets	1275.22	569.79	1490.50	1954.29
Total Equity	4902.39	4712.36	6011.53	5416.04
Non- current liabilities	63.18	0.00	113.80	46.25
Current liabilities	358.95	627.72	1391.67	1505.19

(Rs. in Lacs Except EPS)

Particulars	STANDALONE		CONSOLIDATED
	2025-26	2024-25	2025-26	2024-25
Revenue from operations	2063.13	1472.38	4225.98	4117.00
Other Income	25.81	20.07	335.87	23.83
Total Income	2088.94	1492.45	4561.85	4140.83
Total Expenses	2181.51	1434.19	4565.35	4024.42
Profit/(Loss) before Share in Profit /(Loss) of Associate & exceptional items & tax	(92.56)	58.26	(3.50)	116.41
Share in Profit /(Loss) of Associate	-	-	(35.77)	(86.50)
Profit/(Loss) before exceptional items & tax	(92.56)	58.26	(39.27)	29.91
Exceptional Items	(33.11)	0.99	119.79	-
Profit/(Loss) before tax	(125.67)	59.25	80.52	25.11
Tax Expenses	30.22	3.31	56.07	34.72
Profit/(Loss) after tax	(155.89)	55.94	24.45	(9.61)
Paid up Equity Share Capital	799.72	799.72	799.72	799.72
Earnings per share (Rs.) Basic & diluted	(1.95)	0.80	0.31	(0.12)

Material development in Human Resources / Industrial Relations front

Your Company considers the quality of its human resources to be the most important asset and constantly endeavors to attract and recruit best possible talent. Our training programs emphasize on general management perspective to business. The Company continues to empower its people and provide a stimulating professional environment to its officers to excel in their respective functional disciplines. The industrial relations of the Company continue to remain harmonious and cordial with focus on improving productivity and quality.

The number of permanent employees on the rolls of Company as on 31.03.2026 was 8 .

KEY FINANCIAL RATIOS ANALYSIS

Details of key financial ratios are as follows:

Particulars	31-Mar-26	31-Mar-25	Reason of variance
Current ratio (in times)	1.26	0.91	Due to increase in closing stock and loan given as compared to previous year
Debt-Equity ratio (in times)	0.03	0.01	Due to working capital demand loan limit sanctioned during the year
Debt service coverage Ratio (in times)	(1.19)	0.38	Due to net loss during the year
Return on Equity Ratio (in %)	-3.14%	1.33%	Due to decrease in net profit after tax during the year
Inventory turnover ratio (in times)	6.29	5.86	--
Trade receivables turnover ratio (in times)	8.38	7.14	Decreases due to increase in trade receivables
Trade Payables turnover ratio (in times)	5.28	2.45	Due to increase in purchase during the year is higher than increase in trade payables
Net capital turnover ratio (in times)	7.83	(25.42)	Due to increase in sale during the year and working capital is positive
Net profit ratio (in %)	-7.33%	3.80%	Due to net loss after tax during the year
Return on capital employed (in %)	-1.70%	6.58%	Due to increase in borrowings during the year
Return on investment (in %)	0.00%	0.00%	--

Cautionary Statement

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.

Disclosure of Accounting Treatment in Preparation of financial statements :

The Company has followed the guidelines of accounting standards as mandated by the Central Government in preparation of its financial statements.