Shakti Press Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT</dhhead>

Industry Structure and Developments

The packaging industry has been witnessing sustained growth in demand on a year-on-year basis, necessitating continuous investments in technology upgradation and automation. At the same time, the highly fragmented nature of the industry has resulted in intense competition, exerting pressure on margins and extending the payback period of investments. With the demand from large customers steadily increasing, it is anticipated that the organized segment will continue to capture a larger market share and benefit from improved margins.

Future Prospects / Outlook

The printing and packaging industry, though fragmented and concentrated in the hands of a few large players, has regained momentum in recent years after the slowdown caused by the global financial crisis of 2008-09. The sector is inherently linked to the overall GDP growth of the country as well as the expansion of the educational sector.

With India’s GDP growth projected at around 7.8%, the industry is expected to sustain its growth trajectory. Against this backdrop, the Company anticipates achieving a business growth rate of 10% to 15% over the next three years. Furthermore, the Indian printing and packaging industry has, over the last five years, upgraded to international standards, thereby unlocking significant export opportunities. India is increasingly being recognized as a competitive sourcing hub for printing and packaging materials, and is gradually positioning itself as a strong alternative to China in this space.

The long-term growth potential of the sector is further supported by macroeconomic drivers such as rising literacy levels, expanding consumerism, higher standards of living, and growing demand for quality packaging materials.

Opportunities and Threats a) Opportunities

The enactment of the Right to Education Act and enhanced budgetary allocations by the Central and State Governments have resulted in robust demand for textbooks and notebooks. Revival in the financial sector and increased IPO activity are expected to generate additional demand for printing services. The Government’s focus on ensuring food safety through stricter legislation on packaging standards will create additional business opportunities for the packaging industry.

Your Company is well positioned to leverage these opportunities and is actively exploring expansion of its production capacity in the packaging segment. b) Threats

Uncertainty regarding regulations governing the use of plastics in packaging could impact demand patterns. Volatility in raw material prices, particularly petrochemical-based inputs, may increase production costs, thereby affecting profitability.

Risks and Concerns

The Company is exposed to risks arising from changes in environmental regulations impacting the use of plastics, volatility in international petrochemical markets affecting raw material prices, and fluctuations in export demand. These factors could potentially impact the growth and profitability of both the industry and the Company.

Human Resources and Industrial Relations

The Company considers its human resources as its most valuable asset and believes that a motivated and committed workforce is a key driver of growth and success. The Company continues to focus on employee development, motivation, and retention by offering competitive compensation and career advancement opportunities. As on 31st March, 2025, the Company had 65 permanent employees. Industrial relations remained cordial throughout the year under review.

Internal Control Systems and Their Adequacy

The Company has in place adequate internal control systems commensurate with the size and nature of its operations. The Internal Audit function, overseen by a qualified Chartered Accountant on a consultancy basis, ensures effective internal checks and balances in financial as well as operational areas.

Cautionary Statement

Certain statements made in the Management Discussion and Analysis Report may be “forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied due to various factors such as changes in economic conditions, demand-supply dynamics, regulatory changes, tax laws, market conditions, and other incidental factors beyond the control of the Company.

FINANCIAL REVIEW

Fig. In Lakh

Financial Results	Year ended on 31st March, 2025	Year ended on 31st March, 2024
Total Income	1,302.78	1159.86
Profit /(Loss) Before Tax	7.94	47.86
Profit /(Loss) After Tax	6.70	47.86

On behalf of the Board

For SHAKTI PRESS LTD.

RAGHAV H SHARMA	Digitally signed by RAGHAV KAILASHNATKAILASHNATH SHARMA
	Date: 2025.09.04
	18:19:45 +0530 Sd/-

(Raghav Sharma)

DIN: 00588740

MANAGING DIRECTOR

Place: Nagpur

Date: 4TH September, 2025