Samyak International Ltd Management Discussions

Your Directors hereby presents the Management Discussion and Analysis Report (MDAR) for the year ended on 31^st March, 2024:

Global Economic Review

Economic growth is estimated to have been stronger than expected in the second half of 2023 in the United States, and several major emerging market and developing economies. In several cases, government and private spending contributed to the upswing, with real disposable income gains supporting consumption amid still-tight though easing labor markets and households drawing down on their accumulated pandemic-era savings. A supply-side expansion also took hold, with a broad-based increase in labor force participation, resolution of pandemic-era supply chain problems, and declining delivery times.

According to projections, global growth will be 3.1% in 2024 and 3.2% in 2025. The 2024 forecast is 0.2% higher than the October 2023 World Economic Outlook due to the United States and several major emerging market and developing economies demonstrated stronger-than-expected resilience. But with higher central bank policy rates to combat inflation, a pullback in fiscal support due to high debt burdening economic activity, and weak underlying productivity growth, the forecast for 2024–2025 is lower than the historical average of 3.8 percent. Despite supply-side problems being resolved and tight monetary policy, most regions are seeing faster than expected inflation declines. The projected global headline inflation rate is predicted to decrease to 5.8% in 2024 and 4.4% in 2025, with a revision to the 2025 estimate.

Indian Economic Review

Amid a challenging global economic landscape and deteriorating geopolitical conditions, India continues to shine as a bright spot. It is the fifth-largest economy in the world and is poised to retain its position as the worlds fastest-growing major economy. Its GDP growth remained buoyant at 7.3% in FY 2023-24 as against 7.2% in FY 2022- 23, supported by robust domestic demand, moderate inflation, a stable interest rate environment, and strong foreign exchange reserves. Furthermore, an accelerated pace of economic reforms and increased capital expenditure paved the way for construction activities and large-scale employment opportunities in the country. The International Monetary Fund (IMF) commended Indias economic resilience, robust growth, and notable progress in formalization and digital infrastructure

India had successfully harnessed inflation in FY 2023-24 which is still plaguing major advanced economies. Indias Consumer Price Index (CPI) inflation rate decreased to 5.69% (provisional) in December 2023 against 5.72% in December 2022. The RBI, in its efforts to control inflation and boost economic growth, decided to keep the policy repo rate unchanged at 6.50%. Furthermore, Indias per capita Net National Income (NNI) at constant (2011-12) prices increased by 6.08% from Rs. 98,374 in FY 2022-23 to Rs. 1,04,550 in FY 2023-24. Due to increasing disposable income levels, there is a surge in household consumption in both urban and rural regions, boosting the demand across sectors. Indias economic outlook is optimistic as it reaps the benefits of demographic dividend, physical and digital infrastructure enhancements, increased capital expenditure and the governments proactive policy measures such as Production Linked Incentive

(PLI) Schemes. According to the IMF, the Indian economy is expected to expand steadily at 6.5% in 2024

The outlook for FY24 is mixed with continued global demand softening, higher inflation, higher interest rate regime, uncertainty in crude prices and sustained geopolitical crisis

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

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 2023-2024, 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 2024, 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 2024 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 2023-2024 is summarized below:

(Rs. in Lacs)

	STANDALONE		CONSOLIDATED
Balance Sheet	As at March 31, 2024	As at March 31, 2023	As at March 31, 2024	As at March 31, 2023
a. Property, Plant and	142.76	130.27	591.28	515.69
Equipment
b. Capital Work-in-progress	0.00	0.00	0.00	0.00
Financial assets	3526.60	3206.02	2875.40	2492.19
Other Non-current assets	0.00	0.00	0.65	0.65
Current assets	1190.17	644.70	2927.73	3952.54
Total Equity	3708.34	3360.06	6754.85	6941.92
Non- current liabilities	134.64	167.11	349.05	977.25
Current liabilities	1017.95	456.54	1933.16	1934.17

(Rs. in Lacs Except EPS)

PARTICULARS	STANDALONE		CONSOLIDATED
	2023-24	2022-23	2023-24	2022-23
Revenue from operations	1252.36	2068.30	3806.44	4530.96
Other Income	6.78	11.36	55.39	68.27
Total Income	1259.14	2079.66	3861.83	4599.23
Total Expenses	1228.62	2122.27	3477.73	4334.31
Profit/(Loss) before exceptional items & tax	30.52	(42.62)	384.10	264.92
Exceptional Items	0.00	0.00	2.71	3.64
Profit/(Loss) before tax	30.52	(42.61)	381.39	261.28
Tax Expenses	1.32	0.76	1.42	0.55
Profit/(Loss) after tax	29.20	(43.37)	379.97	260.73
Paid up Equity Share Capital	624.72	624.72	624.72	624.72
Earnings per share (Rs.) Basic & diluted	0.47	(0.69)	6.08	4.17

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 31.03.2024 is 17.

KEY FINANCIAL RATIOS ANALYSIS

Details of key financial ratios are as follows:

	FINANCIAL RATIOS
S. No. Particulars	Numerator	Denominator	31.03.2024	31.03.2023	Variance (PY-CY) %
1 CURRENT RATIO	CURRENT ASSETS	CURRENT LIABILITES	1.17%	1.41%	(0.08)
2 DEBT EQUITY	TOTAL DEBT	TOTAL EQUITY	0.04	0.05	0.01
3 DEBT SERVICE COVERAGE RATIO	EARNINGS BEFORE INT, TAX, DEPRECIATION AND EXCEPTIONAL ITEMS	INTEREST AND PRINCIPAL REPAYMENT OF LONG TERM DEBT WITHIN ONE YEAR	3.58	(0.68)	(4.53)
4 INTEREST SERVICE	EARNINGS BEFORE INT, TAX, DEPRECIATION AND EXCEPTIONAL ITEMS	INTEREST EXPENSES	3.26	(1.18)	(4.44)
5 RETURN ON EQUITY	PROFIT FOR THE YEAR	TOTAL EQUITY	0.07%	0.07%	0.00
6 INVENTORY TURNOVER RATIO	REVENUE FROM OP	AVERAGE INVENTORY	0.8	(0.13)	(0.21)
7 TRADE RECV TURNOVER RATIO	REVENUE FROM OP	AVERAGE TRADE RECIVABLES	0.18	(0.16)	(0.34)
8 TRADE PAYABLE TURNOVER RATIO	ANNUAL NET CREDIT PURCHASE	AVERAGE ACCOUNTS PAYABLES	1.41	2.67	1.26
9 NET CAPITAL TURNOVER RATIO	NET SALES	WORKING CAPITAL	0.17	(0.23)	(0.40)
10 NET PROFIT RATIO	PROFIT AFTER TAX	REVENUE FROM OPERATION	0.02	(0.02)	(0.04)
11 RETURN ON CAPITAL EMPLOYED	EARNING BEFORE INTEREST AND TAX	CAPITAL EMPLOYED	0.01	(0.01)	(0.02)
12 RETURN ON INVESTMENTS	INCOME GENERATED FROM INVESTMENT	AVERAGE INVESTMENTS	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.