Seya Industries Ltd Management Discussions

COMPANY PERFORMANCE OVERVIEW

The National Company Law Tribunal ("NCLT"), Mumbai Bench, vide order dated 2^nd November 2023 passed in CP (IB) 446 MB 2023 has initiated corporate insolvency resolution process ("CIRP") against the company. Mr. Bhavesh Rathod,

IP Registration No. IBBI/IPA-001/IP-P01200/2018-2019/11910 has been appointed as Interim Resolution

Professional ("IRP") to manage affairs of the Company in accordance with the provisions of the insolvency and bankruptcy Code 2016 ("Code). In line with the provisions of the Code, the powers of the Board of Directors stand suspended and the same are being exercised by IRP/RP

The Company has been under Corporate Insolvency

Resolution Process("CIRP") and the NCLT has appointed Insolvency Resolution Professional("IRP") to maintain the Company as a going concern until the Resolution Process is completed. The Operations of the Company had been severely impacted due to Covid -19 pandemic which ended in Feb-22 but again got impacted due to Ukraine Russia war. The Company had resumed its operation in a phased-wise manner and was coping-up with the after effects of the COVID pandemic but due to the start of the Ukraine-Russia war, the Company has been facing the challenges on account of rising Energy Prices, Rising Raw Material costs, fall in demand and steep fall in unit prices of the Products, thereby severely affecting both the Topline and Bottomline of the Company. The Company had received notices of Force Majeure from certain suppliers and customers and similarly the Company had also issued notices of Force Majeure to customers and suppliers. The Company however continued to incur committed expenditure with respect to its Employees, Plant related expenditures and other expenditures. This has significantly impacted the profitability. Both Covid-19 & Ukraine-Russia war has also had a significant impact on its customers and their ability to meet their committed obligations. Key Financial Ratios: The Company is undergoing CIRP, and the manufacturing operations remain suspended during the period under review.

Segment wise Performance: The Segment wise result is not applicable as the operations of the company have remained suspended.

Risk And Concerns: The Company has not adopted any Risk Management policy and framework since the commencement of the CIR process as the powers of the board of directors stand suspended.

The Company continues to operate under the Corporate Insolvency Resolution Process (CIRP) in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016. The Interim Resolution Professional is overseeing efforts to maintain the Company as a going concern.

Your company is in the business of manufacture of specialty chemicals which have applications in end user segments like Computer Printing Inks, Pigments & Paints, Pharmaceuticals, Personal & Health Care Products, Agrochemicals, Insecticides/Pesticides, Organic Chemical Intermediates, Rubber chemicals, Textile dyes, Thermic fluids, etc. Recessionary trends in Europe, UK and US arising post pandemic and Russia-Ukraine war have dampened the demand and consumption. It is expected that consumption will pick up gradually. This disruption has accelerated some of the emerging trends like virtualization, remote interactions and electronic transactions. The Company is closely monitoring the development in its customer industries and assessing the near term as well as long term effects of this development.