Shaba Chemicals Ltd Management Discussions.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

A. OVERVIEW

The Indian economy has witnessed good steady recovery and continued to grow in the last fiscal year. Good monsoon in most part of the country and revival in manufacturing activity added to the optimism. This GDP growth has placed India firmly amongst the fastest growing economies of the world in the current year. 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.

B. INDUSTRY STRUCTURE AND DEVELOPMENT

The Company is mainly engaged in chemical business but due to shortage of funds company is not able to continue this business. Company is looking and enquiring about entering into share broking business and enquiring to get TCM membership of MCX, NCDEX.

C.RISKS & CONCERS:

The business of the company totally depends upon the changes taking place in the economy either it be relating to fluctuations in stock and capital market, regulations governing such markets, government policies, taxation policies, changes taking place in global economics, etc. The growth of industry provides necessary opportunities for the company to grow. However, the company is under constant pressure due to steep competition from unorganized sector and industrial scenario in the nearby areas.

The company’s strength is built around domestic and international marketing network. The company has a network of 3 marketing offices in India as well as over 30 corporate customers and over 3 channel partners as a part of its domestic network which is comprised from various segments, allowing the company to de-risk its business.

C. OPPORTUNITY AND THREATS

The Company’s strength is its director experience in marketing and commodity trading and company is enquiring for membership of NSE, MCX, and NCDEX for the brokerage business. The Company does face threats from financial arrangement and new emerging players in these product lines.

D. SEGMENT-WISE PERFORMANCE

The operation of the company consists of the single segment. Hence, Indian accounting standard on Segment Reporting (IND AS-34) issued by institute of Chartered Accountants of India does not apply.

Factors that may affect our results of the operations:

Our financial conditions and results of operations are affected by numerous factors which inter alia include as follows:

-Growth of unorganized sector and threat from local regional players;

-Change in freight and forwarding charges;

-General economic and business conditions;

-Changes in political and social conditions in India;

-Prices of raw materials the company consume and the products it manufactures;

-Our company‘s ability to successfully implement our growth strategy;

-Changes in laws and regulations relating to the industry in which we operate;

-Any adverse outcome in the legal proceeding in which our Company is involved; and

-Sudden change in global Commodity prices which may affect our outstanding position in commodities.

-The loss or shutdown of operations of our company at any time due to strike or labour unrest or any other reasons;

E.CAUTIONARY STATEMENT

Statements in this "Management Discussion and Analysis" describing the Company’s objectives expectations or predictions are forward looking within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied in the statements on various factors and circumstances.

F. OUTLOOK

We are committed to deliver set up new strong network on a consistent basis, our strategy has been to develop strong customer relationship and to be a customer driven Company. The Indian economy has shown substantial growth in the year 2006-07 and this will have a positive impact in all the sectors. Commodities prices have maintained their high volatility, marking it difficult to take long term view on prices,

For and on behalf of the Board of
Directors
SHABA CHEMICALS LIMITED
S/d- S/d-
SANGEETA NEEMA JAY KISAN NEMA
DATE: 04rth, SEPTEMBER, 2018 MANAGING DIRECTOR DIRECTOR
PLACE: INDORE DIN: 01871324 DIN: 06749729