Shivam Chemicals Ltd Management Discussions

MANAGEMENT DISCUSSION & ANALYSIS REPORT

1. INTRODUCTION:

Our Company was incorporated as ?Sun Organosys Private Limited on October 12, 2010 under the provisions ofCompanies Act, 1956 with the Registrar of Companies, Mumbai bearing Registration number 208870. The name of our

Company was changed to ?Shivam Chemicals Private Limited vide Ordinary Resolution dated January 17, 2012 and a fresh certificate of incorporation was issued on January 30, 2012 by the Registrar of Companies, Mumbai. Thereafter, the status of the Company was changed to Public Limited and the name of our Company was changed to ?Shivam Chemicals Limited vide Special Resolution dated November 04, 2023 and a fresh certificate of incorporation consequent to conversion was issued on November 21, 2023 by the Registrar of Companies, Mumbai. The Corporate Identification Number of our Company is L24100MH2010PLC208870. The Company has listed on BSE SME Platform w.e.f. 30^th April, 2024.

2. INDUSTRY STRUCTURE:

India currently represents one of the largest feed producers in the world. Animal feed includes various raw, processed and semi-processed products that are fed to livestock. Some of the most common feeds include pasture grasses, cereal grains, hay and silage crops, and other by-products of food crops, such as brewers grains, pineapple bran and sugar beet pulp. These products are carefully formulated with the help of nutritional additives, like vitamins and minerals, to maintain the overall health of animals and improve the quality of various end-products, including eggs, meat and milk. In this country, there has been a rise in public concern regarding the safety of animal-origin food products due to the prevalence of food-borne bacterial infections, bovine spongiform encephalopathy (BSE) and dioxin contamination. These concerns have prompted regulatory organizations to inspect and improve feeding practices in the country.

3. INVESTMENTS/ DEVELOPMENTS:

We are increasing our reach in the industry by expanding our client base across sectors / verticals. Development of products aiming at various sectors to improve the depth of our engagement with the industry.

4. OPPORTUNITIES AND THREATS: Strength:

1. Accreditation with various awards.

2. Own Inventory.

3. Experience of our Promoters and senior management team

4. Customer Satisfaction

5. Repetitive Customers

Opportunities:

??Vast Industrial Presence in both Public and Private Sectors??Huge demand for Domestic services??Avail of Low-cost, Skilled Human Resources.

??Proactive government continued thrust on reforms- Further liberalization under process.

Threats:

We operate in a competitive atmosphere. Some of our competitors may have greater resources than those available to us. While product quality, brand value, distribution network, etc are key factors in client decisions among competitors, however, price is the deciding factor in most cases. We face fair competition from both organized and unorganized players in the market. We believe that our experience in this business and quality assurance will be key to overcome competition posed by such organized and unorganized players. Although, a competitive market, there are not enough number of competitors offering services similar to us. We believe that we are able to compete effectively in the market with our quality of services and our reputation. We believe that the principal factors affecting competition in our business include client relationships, reputation, and the relative quality and price of the services.

5. SEGMENT WISE OR PRODUCT-WISE PERFORMANCE:

Our company is a manufacturer of Hydrated Lime (Calcium Hydroxide) & a distributor of various products such as Poultry feed supplement (MBM), Di-Calcium Phosphate (Feed Grade), Magnesium Oxide, Limestone Powder, etc.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Share Capital: During the year under review, the Company has increased Paid-up Share capital of Company as per details mentioned below:

Reserves and Surplus: The Reserve and Surplus of Company is Rs. 345.43 Lakhs as on period ended on 31st March, 2024 on standalone basis.

Reserves and Surplus: The Reserve and Surplus of Company is Rs. 266.27 Lakhs as on period ended on 31st March, 2024 on consolidated basis.

Total Income: The Company has earned total Income Rs. 13663.87 Lakhs as on period ended on 31st March, 2024 on standalone basis.

Total Income: The Company has earned total Income Rs. 14710.24 Lakhs as on period ended on 31st March, 2024 on consolidated basis.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Your Company follows a policy of building strong teams of talented professionals. People remain the most valuable asset of your Company. The Company recognizes people as its most valuable asset and the Company has kept a sharp focus on

Employee Engagement. The Companys Human Resources is commensurate with the size, nature and operations of the

Company.

9. DETAILS OF KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR:

IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

The Return on Net Worth for F.Y. 2023-24 was 12.66% and for F.Y. 2022-23 was 26.88%. The reason for decreasing due to increase in net worth of Company is more than the net profit of Company during the financial year.

11. FORWARD-LOOKING STATEMENT:

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates, and others may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, whether expressed or implied. Several factors could make a significant difference to our operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, any epidemic or pandemic, and natural calamities over which we do not have any direct/indirect control.