Saptak Chem & Business Ltd Management Discussions

1) INDUSTRY STRUCTURE AND DEVELOPMENT:

The Fertilizer Industry has been adversely affected due to the adverse Policies of Govt. of India, as a result thereof; margins have been under pressure due to withdrawal of subsidy. The most of the fertilizer plants in India are lying closed. The development of the industry wholly depends upon the policies of Govt. of India. Your Company has been engaged in the trading of chemical on retail basis. The Indian chemical industry is among the most diversified industrial sectors and includes basic chemicals and its products, petrochemicals, fertilizers, paints, gases, pharmaceuticals, dyes, etc. In terms of volume of production, it is the twelfth-largest in the world and the third-largest in Asia. Despite a growth in domestic manufacturing capacity India remained a net importer of chemicals as capacity addition lagged demand growth and with certain chemical imports being cheaper than those produced within the country.

2) OPPORTUNITIES AND THREATS:

The opportunities are explored to diversify in other areas i.e., agricultural produce as the SSP Fertilizer in India is facing threat from low demand on one side and withdrawal of subsidy by Govt. on the other side. As such other business opportunities are being looked into. The Company have been trying hard to re-enter into the market in the sluggish trend and unpredictable impact of pandemic COVID-19. The Company has also penetrated into the agricultural market on very small scale. The Company is committed to measure and quantify impact of the business operations of the Company after initiation of full-fledged business operation in the coming financial year.

3) SEGMENT-WISE PERFORMANCE:

The Company has identified its activities as single segment. Hence, the Companys performance is to be viewed as a single segment Company operating in retail trading of agricultural produce.

4) RECENT TREND AND FUTURE OUTLOOK:

So far as agricultural is concerned, the future can become promising, if overall recessionary trend gets change due to various reasons.

5) RISK AND CONCERNS:

The company has already closed the SSP operation and struggling to stay in the chemical market.

6) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has proper and adequate system of Internal Control in order to ensure that all transactions are authorized, recorded and reported correctly. Regular internal audit checks are carried out to ensure that adequate systems are in place. The management continuously reviews the Internal Control systems and procedures to ensure orderly and efficient conduct of business. The emphasis of Internal Control prevails across functions and processes covering the entire activities of the company.

7) FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Other matters such as operational and financial performance have been discussed under the respective heads in the Directors Reports.

8) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS FRONT:

Our employees continue to be the backbone of our organization. Our efforts are towards instilling a level of competency in the work force. The human resource has to be more dynamic and result oriented in the present- day business environment.

9) FINANCIAL PERFORMANCE:

The Company has diversified its business activities and at the verge of achieving better financial performance. The Company has successfully implemented various operational excellence programs designed with the help of external consultants so as to optimize on cost and delivery commitments. The Companys cash flow position as at the yearend continues to remain strong. Increased liquidity has strengthened the Companys confidence for launching new growth initiatives for the existing and emerging businesses of construction.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof, including:

10) CAUTIONARY STATEMENT:

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

Date: 29/05/2024

Place: Ahmedabad

Sd/-

Rohitkumar Parikh

Managing Director

DIN: 07394964