Sawaca Business Machines Ltd Management Discussions

Your Directors have pleasure in presenting the management discussion and analysis report for the year ended on March 31, 2025.

1. INDUSTRY STRUCTURE, DEVELOPMENT:

During the period under the review, the Company had been operating in the Business of Trading. The main products for Trading include Various Perfumery Chemicals, cotton bales etc.

The performance of company was satisfactory during the entire FY 2024-2025. The year gone by saw high inflation, rising cost of imported fuel, moderating economy and a volatile political environment, which contributed to the challenging market environment. The GDP of Indian Economy has shown an exceptional growth during the FY 2024-25 and outperformed many other developed countries and became 04th Largest and fastest growing Economy in the world.

2. OPPORTUNITIES & THREATS:

The Government is committed to encourage the healthy growth of Capital Market for development of the Economy. While the government seems committed to reforms to address the challenges, political compromises and high populist spending in an election year will mean that tough decisions are more likely to be deferred. However, steps by RBI to stabilize the exchange rate by reducing liquidity support to the banking system will create a challenging environment for investments.

3. SEGMENT-WISE PERFORMANCE:

The Companys main business activity is trading of Perfumery & Organic Chemicals, Textile and information Technology Consulting & Support service during the year under review the Company has also invested in started business of matrimony website in the name of nextgenshaadi.com

4. OUTLOOK:

The Company continues to explore the possibilities of expansion and will make the necessary investments when attractive opportunities arise.

5. RISK & CONCERNS:

The Company is exposed to specific risks that are particular to its business, including interest rate volatility, economic cycle, market risk and credit risk. The management continuously assesses the risks and monitors the business and risk management policies to minimize the risk.

6. INTERNAL CONTROL SYSTEMS & THEIR ADEQUEACY:

The Companys operating and business control procedures ensure efficient use of resources and comply with the procedures and regulatory requirements. There are adequate internal controls to safeguard the assets and protect them against losses from unauthorized use or disposition and the transactions are authorized, recorded and reported correctly.

The Audit Committee periodically reviews the internal controls systems and reports their observations to the Board of Directors.

The Directors have appointed Mr. Tejas Shah of M/s. Shah& Shah, Chartered Accountants as the Internal Auditors of the Company for the FY 2024-2025 on 27.05.2025

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The Companys total revenue from operations during the financial year ended 31stMarch,2025 were Rs.8225.12 Lacs as against Rs. 758.31 Lacs of the previous year representing an increase of approximately about 1157% over the corresponding period of the previous year with total expenses of Rs. 8369.69 lacs (previous year of Rs.694.51lacs). The Company has made Net Loss of Rs. 34.88 Lacs as against Profit of Rs. 46.40 Lacs of the previous year after considering Depreciation and Provision for Tax and other adjustments representing an decrease of approximately about 175% over the corresponding period of the previous year.

The EPS of the Company for the year 2024-2025 is Rs. -0.01.

8. HUMAN RESOURCE DEVELOPMENT:

The Company believes that the human resources are vital in giving the Company a competitive edge in the current business environment. The Companys philosophy is to provide congenial work environment, performance-oriented work culture, knowledge acquisition / dissemination, creativity and responsibility. As in the past, the Company has enjoyed cordial relations with the employees at all levels.

The Company continues to run an in-house training programme held at regular intervals and aimed at updating their knowledge about issues.

9. ACCOUNTING POLICIES

The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The financial statements have been prepared under the historical cost convention on an accrual basis. The management accepts responsibility for the integrity and objectivity of the financial statements, as well as for the various estimates and judgment used therein

10. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY

PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS:

Sr. No.	Particulars	As at March 31, 2025	As at March 31, 2024	% change from March 31, 2024 to March 31, 2025	Reasons for % change from March 31, 2024 to March 31, 2025
1.	Current ratio	4.86	1.25	288.87	Net increase in ratio due to increase in current asset as compared to increase in current liability
2.	Debt- Equity Ratio	0.046	0.05	-9.80	There is a decrease because the equity has increased in FY 2024-2025
3.	Debt Service Coverage ratio	-4.43	5.25	-184.29	The change is due to revaluation of shares as INDAS adjustment due to which loss increased
4.	Return on Equity ratio	-1.00	0.04	-125	Change in return in equity is due to loss for the current year and increase in equity
5.	Inventory Turnover ratio	-	-	-	-
6.	Trade Receivable Turnover Ratio	10.47	10.87	-3.66	-
7.	Trade Payable Turnover Ratio		17.83	7.31	143.92 The change is mainly due to surge in purchase compared to trade payables.
8.	Net Capital Turnover Ratio	2.35	27.44	-91.42	The change in Net Capital Turnover is due is due to increase in current asset resulting in increase in working capital for the year.
9.	Net Profit ratio	-0.42	6.12	-106.80	Decrease in net profit ratio is due to revaluation of shares to market value due to INDAS adjustment and increase in turnover
10.	Return on Capital Employed	0.25	4.72	-94.63	Due to decrease in Earning before interest and tax

11. DISCLOSURE OF ACCOUNTING TREATMENT IN PREPARATION OF FINANCIAL STATEMENT

The Company has followed all relevant Accounting Standards laid down by the Institute of Chartered Accountants of India (ICAI) while preparing Financial Statements.

12. CAUTIONERY STATEMENT:

Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.

Place : Ahmedabad	For, Sawaca Enterprises Limited
Date : 04.09.2025	(Formerly Known as Sawaca Business Machines Limited)
	Sd/-
	Shetal Shah
	Managing Director
	(DIN: 02148909)