Samyak International Ltd Management Discussions

Your Directors hereby presents the Management Discussion and Analysis Report (MDAR) for the year ended on 31 st March, 2025:

Global Economic Review

Global economic growth is anticipated to range between 2.7% and 3.3% in 2025, according to various credible sources. While the growth rate is expected to stabilise at 3.3% in 2026, these projections remain below the historical average of 3.7% observed between 2000 and 2019. Global inflation is expected to moderate, driven by decreases in fuel and commodity prices, as well as reduced inflation rates in advanced economies.

Global headline inflation is projected to decrease to 4.2% in 2025 and 3.5% in 2026, with advanced economies reaching ahead of emerging markets and developing economies (EMDEs). Further, energy commodity prices are predicted to fall by 2.6% in 2025, primarily due to subdued oil demand from China and strong supply from non-OPEC+ countries. Gas prices are likely to increase, influenced by adverse weather conditions and supply disruptions stemming from ongoing conflicts in the Middle East. Major central banks monetary policy rates are expected to continue their downward trajectory, albeit at varying rates. Additionally, a tightening of fiscal policy is expected during 2025-2026, especially in advanced economies such as the United States.

Global trade is expected to remain slow, and could possibly worsen if reciprocal tariffs are implemented. According to the International Monetary Fund (IMF), global trade volume is projected to grow at a slower pace, with an estimated growth of 3.2% in 2025 and 3.3% in 2026. This estimation falls short of the historical average of 4.9%. The slowdown is primarily due to a significant increase in trade policy uncertainty, which is likely to affect investments in tradeintensive companies.

However, the negative impact of this heightened uncertainty is expected to be transient. Additionally, some trade activities may experience a short-term acceleration in response to the uncertainty and the anticipation of stricter trade regulations, providing a temporary offset to the overall slowdown

Outlook

Global growth is projected to remain modest at 2.8 % for CY 2025 and 3% for CY 2026. Disinflationary trends are expected to sustain, directed by a labour market cool down, decline in Chinese demand and descending oil prices due to production expansion by the US and the Middle East. This will enable Central Banks around the world to adopt a more flexible approach to promote economic activity.

With the new regime in US expected to impose additional tariffs on imported goods, an elevation in the inflation level is expected. The implementation of protectionist trade policies will impact global trade as seen in the downward revision of projected trade volumes for the next two calendar years.

Indian Economic Review

While Indias economy is projected to expand between 6.3% and 6.8% in FY26, it will face significant challenges, including geopolitical and trade uncertainties as well as potential commodity price shocks.

a. Key Domestic Growth Drivers: Sustained growth in private capital goods sector order books, driving increased investment. Improved consumer confidence and corporate wage growth. A resurgence in rural demand, supported by a rebound in agricultural production, easing food inflation and a stable macroeconomic environment.

b. In the Union Budget for FY2024-25 the Indian government has allocated Rs. 11.21 lakh crore for capital expenditure, maintaining the previous years level. This allocation represents approximately 22% of the total government spending of Rs. 50.65 lakh crore.

c. The Consumer Price Index (CPI) moderated from 5.4% in FY24 to 4.9% in FY25 (between April and December). However, inflation remains above the RBIs target due to elevated food prices, particularly for vegetables and pulses.

d. The fiscal deficit is estimated to be 4.8% of GDP in FY25, a notable decrease from 5.6% in FY24. It is expected to drop further to 4.4% in FY26.

Outlook

Indias economy is poised to sustain its upward growth trend in the long-term. Inflation is expected to remain manageable with the waning of core pressures. Although, ongoing trade tensions dampen the investors sentiments leading to a downward revision of growth projections in the near-term. However, with ongoing structural reforms, the nation is strategically positioned to navigate the uncertain global landscape by strengthening its bilateral relations thereby benefitting the export industry.

With the governments impetus on manufacturing, the sector is anticipated to exhibit renewed vigour. The passing of the Bio Pharma Act in the US aims to reduce the dependence on China within the biotechnology supply chains, creating new opportunities for India. As countries look to reinforce their supply chains by adopting a China plus one strategy, India, with its stable policy framework and favorable business environment is set to emerge as a global manufacturing hub for key industries.

Bolstered by a strong domestic foundation, the outlook for the Indian economy remains positive despite global macroeconomic challenges as the nation continues on its journey to establishing itself as a developed economy by 2047.

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

India ranks as the sixth largest producer of chemicals globally and third in Asia, contributing 7% to Indias GDP and 14% to the overall Index of Industrial Production (IIP). India holds a strong position in global chemicals trade, ranking 14 th in exports and 8 th in imports (excluding pharmaceuticals).

The Indian chemical industry, valued at ~US$ 250 billion, is expected to grow by approximately 8 - 10% in FY26. The cumulative FDI equity inflow in the chemical industry reached US$ 22.87 billion from April 2000 to September 2024. Indian companies are attracting investments from Japan, Korea and Thailand, who are seeking to diversify supply chains.

Indias chemical imports declined from US$ 102 billion in FY23 to US$89 Bn in FY24 and are expected to stabilize at US$ 91 billion in FY25. Meanwhile, chemical exports remained steady at US$ 51 billion in both FY23 and FY24 and are projected to maintain the same level in FY25.

The Union Budget 2024 prioritizes key trends, including the adoption of the EV ecosystem, the expansion of renewable power installations, and promotion of chemical manufacturing, better green chemical production and decarbonization. These strategic goals are supported by aligned tax reforms, PLI initiatives and improved government expenditure.

Source: Ministry of commerce, Indian ministry of chemicals and petrochemicals, News articles, Expert Market Research

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 2024-2025, 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.

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

Looking ahead to 2025, Indias economic activity and GDP growth are expected to remain resilient despite ongoing geopolitical uncertainties. As a result, India is poised to become one of the major economies in the world with a promising growth outlook. Your Company anticipates sustained demand growth. The outlook for 2025 has been examined closely by your Company through the broad dimensions of demand drivers.

Risk and concerns

The Management vigilantly oversees potential risks and evaluates the efficacy of risk mitigation strategies devised by your Company.

The overarching risk of a general economic slowdown, stemming from pandemic-induced disruptions and persistent volatility in input costs and foreign exchange remains on the radar. Your Company has implemented comprehensive mitigation plans to safeguard margins while navigating growth and transformative endeavors.

In the burgeoning Indian growth market, heightened opportunities for employability and commensurate roles elevate your Companys attrition risk. Your Companys robust capability offerings, nurturing and developing talent, enhance employee relevance in the market.

Internal control system and their adequacy

The Company maintains adequate internal control systems, which provide reasonable assurance of recording the transactions of its operations in all material respects and of providing protection against significant misuse or loss of Company assets and compliance with applicable laws and regulations, etc.

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 2024-2025 is summarized below:

(Rs. in Lacs)

PARTICULARS	STANDALONE		CONSOLIDATED
	As at March 31, 2025	As at March 31, 2024	As at March 31, 2025	As at March 31, 2024
Property, Plant and Equipment	8.76	142.76	430.37	591.27
Goodwill	0.00	0.00	0.20	0.20
Other Intangible Assets	0.00	0.00	2349.99	2639.77
Financial assets (Non-current)	4138.75	3373.00	1602.90	880.05
Other Non-current assets	459.41	457.24	467.42	465.31
Current assets	569.79	729.03	1954.29	1976.83
Total Equity	4712.36	3708.35	5416.04	4431.42
Non- current liabilities	0.00	134.64	46.25	392.93
Current liabilities	627.72	1015.99	1505.19	1884.64

Particulars	STANDALONE		CONSOLIDATED
	2024-25	2023-24	2024-25	2023-24
Revenue from operations	1472.38	1252.36	4117.00	3750.57
Other Income	20.07	6.78	23.83	55.39
Total Income	1492.45	1259.14	4140.83	3805.96
Total Expenses	1434.19	1228.62	4024.42	3421.89
Profit/(Loss) before Share in Profit /(Loss) of Associate & exceptional items & tax	58.26	30.52	116.41	384.07
Share in Profit /(Loss) of Associate	-	-	(86.50)	-
Profit/(Loss) before exceptional items & tax	58.26	30.52	29.91	384.07
Exceptional Items	0.99	0.00	(4.80)	-
Profit/(Loss) before tax	59.25	30.52	25.11	384.07
Tax Expenses	3.31	1.32	34.72	4.13
Profit/(Loss) after tax	55.94	29.20	(9.61)	379.94
Paid up Equity Share Capital	799.72	624.72	799.72	624.72
Earnings per share (Rs.) Basic & diluted	0.80	0.47	0.99	5.44

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 31.03.2025 is 13.

KEY FINANCIAL RATIOS ANALYSIS

Details of key financial ratios are as follows:

S. No.	Particulars	31.03.2025	31.03.2024	Variance (PY-CY) %	Explanation for Variances more than 25%
1 .	CURRENT RATIO	0.91	0.72	26.50%	Due to decrease in current liabilities is more than decrease in current assets
2.	DEBT EQUITY RATIO	0.01	0.04	-80.83%	Decrease due to repayment of long term borrowings
3.	DEBT SERVICE COVERAGE RATIO	0.38	0.86	-55.60%	Due to increase in net profit before tax and repayment of borrowings during the year
4.	RETURN ON EQUITY	1.33%	0.83%	60.77%	Due to increase in net profit after tax during the year
5.	INVENTORY TURNOVER RATIO	5.86	4.90	19.64%	-
6.	TRADE RECV TURNOVER RATIO	7.14	10.72	-33.40%	Decreases due to increase in trade receivables
7.	TRADE PAYABLE TURNOVER RATIO	2.45	1.97	24.23%	-
8.	NET CAPITAL TURNOVER RATIO	(25.42)	(4.36)	482.41%	Due to increase in working capital as compared to previous financial year
9.	NET PROFIT RATIO (In %)	3.80%	2.33%	62.91%	Increase in revenue from operations and net profit after tax
10.	RETURN ON CAPITAL EMPLOYED (In %)	6.58%	3.97%	65.96%	Due to increase in net profit and repayment of borrowings
11.	RETURN ON INVESTMENTS (In %)	0.00%	0.00%	0.00%	-

Explanation for Variances more than 25%

a) Net Capital Turnover ratio : There is change in Ratio due to in decrease in working Capital and Increase in Turnover.

b) Return on Equity : There is change in ration due to decrease in Profit as Company has suffered loss during the current year.

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.