Shetron Ltd Management Discussions

ANNEXURE - 7 TO THE BOARDS REPORT

Your Directors have pleasure in presenting the Management Discussion and Analysis Report for the year ended on March 31,2026.

ECONOMY, INDUSTRY STRUCTURE AND DEVELOPMENTS IN FOOD CANS AND BATTERY SEGMENTS:

GLOBAL ECONOMIC OVERVIEW:

After withstanding higher trade barriers and elevated uncertainty last year, global activity now faces a major test from the outbreak of war in the Middle East. Assuming that the conflict remains limited in duration and scope, global growth is projected to slow to 3.1 percent in 2026 and 3.2 percent in 2027. Global headline inflation is projected to rise modestly in 2026 before resuming its decline in 2027. Slowdown in growth and increase in inflation are expected to be particularly pronounced in emerging market and developing economies.

Downside risks dominate the outlook. A longer or broader conflict, worsening geopolitical fragmentation, a reassessment of expectations surrounding artificial-intelligence-driven productivity, or renewed trade tensions could significantly weaken growth and destabilize financial markets. Elevated public debt and eroding institutional credibility further heighten vulnerabilities. At the same time, activity could be lifted if productivity gains from AI materialize more rapidly or trade tensions ease on a sustained basis.

Fostering adaptability, maintaining credible policy frameworks, and reinforcing international cooperation are essential to navigating the current shock while preparing for future disruptions in an increasingly uncertain global environment. As Chapter 2 shows, scaling up of defense spending prompted by a rise in geopolitical tensions could boost economic activity in the short term but also bring about inflationary pressures, weaken fiscal and external sustainability, and risk crowding out social spending, which could in turn ignite discontent and social unrest. As Chapter 3 demonstrates, where conflict erupts, acute macroeconomic trade-offs and scarring follow and last well beyond the immediate wartime shock.

INDIAN ECONOMIC OVERVIEW:

Indias economic momentum remains strong, underpinned by resilient domestic demand and sustained macroeconomic stability. In FY 2025-26, Real GDP (GDP at Constant Prices) is estimated to reach Rs. 3.22.58.000 crore, rising from Rs. 2,99,89,000 crore in fY 2024-25, reflecting a robust growth of 7.6%. At current prices, Nominal GDP is projected to reach Rs. 3,45,47,000 crore (US$ 3.91 trillion) in FY 2025-26, from Rs. 3.18.07.000 crore (US$ 3.60 trillion) in the previous year, registering a growth of 8.6%. On the production side, Real Gross Value Added (GVA) is estimated at Rs. 2,94,40,000 crore, up from Rs. 2,73,36,000 crore in FY 2024-25, indicating a growth of 7.7%, while Nominal GVA is expected to expand to Rs. 3,13,61,000 crore (US$ 3.55 trillion) from Rs. 2,88,54,000 crore (US$ 3.26 trillion), marking a growth of 8.7%. In Q3 FY26, Real GDP is estimated at Rs. 84.54.000 crores against Rs. 78,41,000 crores in Q3 FY25, while Nominal GDP rose to Rs. 90,91,000 crores from Rs. 83,46,000 crores, showing continued quarterly momentum. Collectively, these trends highlight Indias position as one of the fastest-growing major economies, supported by broad-based expansion across sectors.

India is primarily a domestic demand-driven economy, with consumption and investments contributing to 70% of the economic activity. With Indias economy showing resilient growth, supported by strong domestic demand, policy reforms, and a healthy investment pipeline, several new projects and developments are underway across key sectors. According to World Bank, India must continue to prioritise lowering inequality while also putting growth- oriented policies into place to boost the economy. In view of this, there have been some developments that have taken place in the recent past. Some of them are mentioned below.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Marketing structures include management and organizational structure as well as planning and information systems, and especially marketing channels. Marketing structures are created to facilitate marketing functions. In this chapter we discuss how business trends are impacting the way marketing is conducted. Customer relationship management, supply chain management, and planning and information systems are discussed and illustrated, and marketing channels are discussed with an emphasis on the marketing channel as a social system.

The element of the Integrated Model of Marketing Planning (IMMP) that falls between marketing strategies and marketing functions. Marketing structures are arranged in order to realize marketing strategies and to facilitate marketing functions. For example, if a company emphasizes product quality as a core competency in its marketing strategy, implementation of a total quality management system may be an appropriate approach to management.

General business management trends have a significant impact on the way marketing is managed and practiced. For example, moves toward lean thinking, total quality management, supply chain management, and customer relationship management all change in some way the manner in which marketing is conducted.

SEGMENTWISE PERFORMANCE:

The Company products constitute metal packaging and hence there is no separate disclosure on segment reporting.

INTERNAL CONTROL SYSTEM AND ITS ADEQUACY:

Internal controls are a process that helps ensure a companys system is secure, reliable and compliant with relevant regulations. Though controls like requiring a username and password or putting purchasing limits on company credit cards may seem simple, the stakes are high.

One-third of all fraud committed in 2020 resulted from weaknesses in internal controls. The SEC also takes internal controls seriously, having monitored and charged organizations that dont resolve internal control failures.

Internal controls are essential for businesses to ensure that their systems are secure. Controls have different components and are usually rooted in an organizations systems. Employees may engage with a control structure daily — like inputting credentials to unlock a point of sale — without realizing they are following an intentional security protocol. But whether employees know it or not, these controls prevent breaches, fight back against fraud and ensure that only authorized users can access sensitive systems and information.

The primary purpose of internal controls is to secure a businesss information and assets. An internal controls system minimizes risk and promotes compliance as a business pursues its objectives. Internal controls are important because they protect an organizations systems, data and assets. As significant as security is, the importance of strong internal controls is even further-reaching than that. There are many different internal controls, but they typically fall into three different categories. All organizations should aim to have controls that align with these internal control types:

CORPORATE POLICIES:

HUMAN RESOURCES/ INDUSTRIAL RELATIONS:

The Company maintains a constructive and collaborative relationship with its employees and trade unions. Industrial relations remained harmonious throughout the year, supported by proactive engagement, transparent communication, and timely resolution of concerns. Focused initiatives on skill development, workplace safety, and employee well-being have strengthened workforce stability and productivity. The Company continues to invest in building a motivated and capable workforce aligned with its growth objectives.

TPM/ISO/IMS:

Your Company has completed the twenty second year of TPM (Total Productive Maintenance) programme to sensitize employees in safe and clean working environment enabling, zero accidents and breakdowns, highly skilled teams with high OEE rates and customer are clear through good quality, less cost and timely delivery.

Your Company is ISO 9001:2015 certified for Quality Management Systems (QMS) since 2002. The ISO version is upgraded from ISO 9001:2008 to ISO 9001:2015 by stringent audits from TUV-Rheinland. Through this your company is committed to be competitive with stringent quality norms which will in turn will ensure to achieve customer satisfaction with Continual process improvements. Your company is making continuous efforts for improvement in the processes, Quality Management Systems (QMS) and skill building.

In addition to this, your company is certified for Environment Management System(EMS) since 2024. ISO 14001:2015-This ensures to protect environment, preserve resources, promote sustainable practices and pollution prevention. With this company is certified for Occupation, Health and Safety (OHS) ISO 45001:2018. This provides Safe working environment by eliminated Occupational Hazards and protect workers, prevents Occupational related injury and ill health at workplace.

In addition to above ISO certificates, your Company is also FSSC-22000-5.0 certified since 2018, for Food Safety Systems Certificate (FSSC) which was received in the financial year Dec-2022. This is further revised to FSSC 22000-6.0. This will help in maintaining and monitoring of Hazard and Critical Control Points (HACCP) during the process of manufacturing metal cans for food packaging. The certification helps to set standards and commitment for hygiene of employees and the surroundings which will impact in hygienic packaging for processed food. As the companys policy of FSSC speaks, it prevents contamination in source and ensures product safety, while also complying with the applicable statutory and regulatory requirements.

CAUTIONARY STATEMENT:

Statements in this report describing the companys objectives, expectations or forecasting may be forward looking within the meaning of applicable laws and regulations. The actual results may differ materially from those expressed in this statement. Important factors that could make a difference to the companys operations include economic conditions affecting demand/supply and price conditions in the domestic and also international markets, changes in the Government regulations, tax laws, other statutes and also many exogenous variables. The Company assumes no responsibility to publicly amend, modify and revise any forward looking statements, on the basis of any subsequent development, information or events or otherwise.

SIGNIFICANT CHANGES IN KEY RATIOS: In Accordance with SEBI (Listing Obligation and Disclosure Requirement Regulations 2018) Amendment regulations 2018, The Company is required to give details of significant Changes).

S.No.	Particulars	Ratios
		2025-26	2024-25
1	Debtor Turnover Ratio	7.94	7.08
2	Inventory Turnover	4.31	4.56
3	Interest Coverage Ratio	2.42	2.13
4	Current Ratio	1.24	1.29
5	Debt Equity Ratio	1.23	1.62
6	Operating Profit Margin(%)	7.82	8.24
7	Net Profit Margin(%)	1.62	1.34

 

	For and on behalf of the Board
	For Shetron Limited
Place : Bengaluru	Diwakar S Shetty
Date : 2nd May, 2026	Executive Chairman
	DIN: 00432755
	[Address Divya Bunglow, Dr. R.S. Jain Marg Gandhigram Road, Juhu, Mumbai 400049]