Shentracon Chemicals Ltd Management Discussions

For the Financial Year ended 31 st March, 2026

Your directors are pleased to present the Management Discussion and Analysis Report for the year ended 31 st March, 2026, in compliance with Regulation 34(2)(e) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

(a) INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company has historically been engaged in the chemicals business and, during the financial year under review, the company had generated its revenue by operating in the fashion jewellery segment which are aligned with the object clause of the company under its ancillary objects. The Indian fashion jewellery industry has witnessed steady growth driven by changing consumer preferences, increasing disposable income, rapid growth of e-commerce platforms and rising demand for affordable lifestyle products. The Company intends to evaluate business opportunities in line with market conditions and its long-term business strategy.

(b) OPPORTUNITIES

Growing demand for affordable fashion jewellery and lifestyle products.

Expansion through online marketplaces and organized retail.

Increasing consumer spending on fashion accessories.

Product diversification and expansion into new markets.

THREATS

Rapidly changing fashion trends and consumer preferences.

Intense competition in fashion jewellery industries.

Fluctuation in raw material prices.

Supply chain disruptions and logistics challenges.

(c) SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

During the financial year under review, the Company expanded its operations in the fashion jewellery business. The management remained focused on strengthening operational efficiency, enhancing its market presence and exploring growth opportunities to achieve sustainable long-term growth.

(d) OUTLOOK

The outlook for the Companys business remains positive. The fashion jewellery segment offers significant growth potential supported by increasing consumer demand and expanding retail and e-commerce channels. The Company also continues to evaluate opportunities in the chemicals sector and intends to strengthen its overall business portfolio by pursuing suitable opportunities in line with market conditions and its long-term objectives.

(e) RISKS AND CONCERNS

The Company is exposed to various business risks including:

Changes in consumer preferences and fashion trends.

Intense competition in the chemicals and fashion jewellery industries.

Fluctuations in raw material prices.

Inventory management risks.

Supply chain disruptions.

Regulatory, environmental and compliance risks.

The Company has established appropriate systems to identify, monitor and mitigate these risks on a continuous basis.

(f) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an adequate system of internal controls commensurate with the size and nature of its business. These controls ensure safeguarding of assets, proper recording of transactions, compliance with applicable laws and timely preparation of reliable financial information. The internal control systems are periodically reviewed and strengthened wherever necessary.

(g) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year under review, the Company reported revenue from operations of Rs. 16.75 lakh, primarily from its fashion jewellery business. The Company incurred a loss of Rs. 33.35 lakh as compared to a loss of Rs. 29.90 lakh in the previous financial year. The management continues to focus on improving operational performance, optimizing costs and exploring opportunities across its business segments to strengthen the Companys financial position and achieve sustainable growth.

(h) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

Human resources remain one of the Companys most valuable assets. The Company continues to maintain cordial industrial relations and provides a healthy, safe and productive work environment. The Company remains committed to employee development, skill enhancement and professional growth.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, expectations, projections, estimates and predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors including economic conditions, government policies, market demand, competition, input costs and other risks beyond the control of the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements.

(i) 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 THEREFOR:

Particulars	Variation (%)	Reason
	Increase/ (Decrease) over previous Financial Year
Debtors Turnover Ratio	Nil	No significant variation (i.e. 25% or more) as compared to the previous financial year
Inventory Turnover Ratio	Nil	No significant variation (i.e. 25% or more) as compared to the previous financial year
Interest Coverage Ratio	Nil	No significant variation (i.e. 25% or more) as compared to the previous financial year
Current Ratio	33.39%	The Current Ratio decreased mainly due to a reduction in Current Assets during the year.
Return on Equity Ratio	5.20%	No significant variation (i.e. 25% or more) as compared to the previous financial year.
Debt - Equity Ratio	17.33%	No significant variation (i.e. 25% or more) as compared to the previous financial year.
Operating Profit Margin ( %)	Nil	No significant variation (i.e. 25% or more) as compared to the previous financial year
Net Profit Margin ( %)	Nil	The Net Profit Margin is not comparable with the previous financial year as the Company did not generate any revenue from operations during the previous year.

(j)Details of any changes in Return on Net worth as compared to the immediately previous financial year along with a detailed explanation thereof: As the Companys net worth remained negative during both the current financial year and the previous financial year, the Return on Net Worth is not capable of meaningful comparison. The net worth of the Company stood at negative Rs. 225.80 lakh as on 31 st March, 2026 as against negative Rs. 192.45 lakh as on 31 st March, 2025. Accordingly, no meaningful comparison of Return on Net Worth can be drawn for the year under review.

For and on behalf of the Board of Directors
Shentracon Chemicals Limited

Sd/-
Amit Lalit Jain
Director and Chairman
(DIN: 05263766)

Place: Mumbai
Date: 28-07-2026