Saptak Chem & Business Ltd Management Discussions

ANNEXURE-B

The Board of Directors is pleased to present the Management Discussion and Analysis Report for the financial year ended March 31, 2026.

1. Industry Structure and Developments

The Indian agricultural sector continues to play a vital role in the countrys economic growth, supported by increasing domestic demand, government initiatives aimed at strengthening agricultural infrastructure, and the gradual modernization of supply chains. The agricultural produce trading industry has witnessed steady opportunities driven by improved logistics, digital procurement platforms, and expanding domestic consumption.

The Company is primarily engaged in the business of trading in agricultural produce. During the financial year, the Company continued to evaluate business opportunities with a focus on sustainable growth, operational efficiency and strengthening its market presence. The Company remains committed to expanding its customer base and enhancing shareholder value through prudent business strategies.

2. Opportunities and Threats

Opportunities

(a) Increasing demand for agricultural commodities across domestic markets.

(b) Growing opportunities arising from organized procurement and distribution.

(c) Government initiatives supporting agricultural infrastructure and agri-business.

(d) Expansion of strategic business relationships with customers and suppliers.

(e) Availability of capital for business expansion through equity funding.

(f) Scope for diversification into allied agricultural trading activities.

Threats

(a) Fluctuations in commodity prices.

(b) Changes in government policies and regulatory framework.

(c) Intense competition from organized and unorganized market participants.

(d) Working capital requirements due to business expansion.

(e) Supply chain disruptions arising from climatic or market conditions.

The Company continuously evaluates these risks and adopts appropriate mitigation measures to minimize their impact on business operations.

3. Segment-wise Performance

During the financial year, the Company operated in a single business segment, namely Trading of Agricultural Produce. Accordingly, there are no separate reportable segments requiring disclosure.

4. Outlook

The outlook for the Company remains positive. During the financial year, the Company secured a significant purchase order valued at approximately ?5 Crore for execution during the financial year 2026- 27. This order is expected to strengthen the Companys operational activities and contribute positively to its revenue generation.

To support the anticipated increase in business operations and working capital requirements, the Company initiated a preferential issue of convertible warrants. The Company has received the in-principle approval from BSE Limited for the proposed preferential issue, and the proposed allottees have remitted the requisite 25% upfront warrant subscription amount in accordance with the applicable provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The additional capital is expected to strengthen the Companys financial position and support future business expansion.

The management remains optimistic about the Companys growth prospects and will continue to explore suitable business opportunities while maintaining financial discipline.

5. Risks and Concerns

Every business is exposed to certain internal and external risks. The Companys principal risks include market volatility, commodity price fluctuations, competition, changes in government policies, liquidity management, and operational risks.

The management regularly reviews these risks and has established appropriate internal processes to identify, monitor and mitigate potential business risks. The Company also continues to strengthen its internal control framework to support efficient business operations.

6. Internal Control Systems and Their Adequacy

The Company has an adequate system of internal controls commensurate with the size, scale and nature of its business. These controls are designed to safeguard assets, ensure the accuracy and reliability of accounting records, promote operational efficiency, and ensure compliance with applicable laws and regulations.

The internal control systems are periodically reviewed by the management and the Audit Committee to ensure their effectiveness and adequacy.

7. Financial Performance with Respect to Operational Performance

During the financial year under review, the Company continued its efforts to strengthen its business operations and improve its financial position. The management remained focused on optimizing available resources, maintaining cost discipline and enhancing operational efficiency.

Detailed information relating to the financial performance of the Company has been provided in the Directors Report and the Audited Financial Statements forming part of the Annual Report.

8. Material Developments in Human Resources and Industrial Relations

The Company considers its employees as one of its most valuable assets. It continues to focus on developing a performance-oriented work culture through employee engagement, training and professional development.

Industrial relations during the year remained cordial and harmonious, and the Company continued to maintain a healthy relationship with its employees.

9. Discussion on Financial Performance and Key Financial Ratios

The financial performance of the Company is discussed in detail in the Directors Report forming part of this Annual Report.

Pursuant to Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, explanations for significant changes (25% or more) in key financial ratios, wherever applicable, have been provided in the relevant section of the Annual Report based on the audited financial statements.

10. Cautionary Statement

Statements made in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various economic conditions, government policies, market developments, competitive pressures and other incidental factors beyond the control of the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

	For Saptak Chem and Business Limited
	(Formerly known as Munak Chemicals Limited)
Date: 01/08/2026
Place: Ahmedabad	Sd/-
	Jubin Premji Gada
	Director
	DIN:10820579