Shivamshree Businesses Ltd Management Discussions

1. INDUSTRIAL STRUCTURE AND DEVELOPMENTS

The global and domestic macroeconomic landscape during the financial year under review witnessed calibrated growth, supported by robust infrastructural allocations and a strategic shift towards sustainable industrial practices. Your Company, M/s. Shivamshree Businesses Limited, is structurally engaged in the business of trading specialized commodities including solar cells, photovoltaic cells, and solar panels, alongside electric power generation using solar energy. However, recognizing the continuously increasing competition within the core industry, the Company has strategically diversified its business operations into the highly specialized packaging sector. The Company is currently developing a Flexible Intermediate Bulk Container (FIBC) Bags manufacturing unit to provide bulk packaging products that enhance the logistical operations of diverse industries such as Agriculture, Infrastructure, Minerals, Chemicals, Refractories, Fly Ash, Construction, and Food processing.

2. FINANCIAL OVERVIEW AND IND AS COMPLIANCE.

The Standalone Financial Statements for the fiscal year ended March 31, 2026, have been strictly prepared in compliance with the statutory requirements of the Companies Act, 2013, and the applicable Indian Accounting Standards (Ind AS). The Management of the Company accepts absolute responsibility for the integrity and objectivity of these financial statements, as well as for the various estimates and judgments deployed therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, ensuring that the financial statements reflect in a true and fair manner the form and substance of all corporate transactions, and reasonably present the Companys state of affairs and comprehensive profit for the year.

3. OPPORTUNITIES, THREATS, AND COMPETITION

Opportunities: The ongoing structural commissioning of the Companys proprietary Solar Power Plant will drastically optimize the operational power expenditures required for the FIBC Bags manufacturing premises, ensuring higher EBITDA margins and long-term captive energy self-reliance. Furthermore, the structural shift away from single-use plastics has amplified the demand for reusable FIBC bulk bags, presenting a massive revenue corridor. Threats & Competition: Competition in the domestic market has intensified, forcing players to adopt aggressive marketing strategies and promotional campaigns to protect their market shares. The Company faces threats from uncontrolled variations in the pricing of polymer-based raw materials, which are structurally linked to global crude oil indices. The Company plans to penetrate deeper into the global market through focused customer retention and aggressive business development in untapped geographical regions.

4. SEGMENT-WISE AND PRODUCT-WISE PERFORMANCE

During the financial year ended March 31, 2026, the Company remained deeply focused on executing its structural expansion pipeline.

o Trading Segment: The trading division maintained a stable operational trajectory despite macroeconomic headwinds, driven by prudent inventory management and strict credit control mechanisms.

o Manufacturing & Solar Segment (Under Development): The Company is currently undertaking two major capital projects: (i) the construction and development of a Solar Power Plant under the solar segment, and (ii) the construction of its own proprietary manufacturing premises for the FIBC Bags unit. Expenditure incurred towards these ongoing projects, including construction and other directly attributable costs, has been strictly capitalized under Capital Work-in-Progress (CWIP) pending the completion of the respective projects and the formal commencement of commercial operations.

5. RISKS AND CONCERNS

The risk management function is an integral component of the Companys structural objectives, ensuring that critical risks are continuously identified, monitored, and managed effectively to protect the business. The Company is exposed to changes in tax laws, Government policies, and regulatory requirements (such as state electricity board grid connectivity rules) which might affect business operations. The Management has proactively initiated measures to mitigate these risks through strong marketing efforts, strict cost reduction via advanced inventory management techniques, and the retention of specialized technical talent.

6. OUTLOOK

While profit margins in the broader industry remain under pressure, the Management maintains a highly optimistic and forward-looking structural outlook for the upcoming financial year. The Company has taken robust remedial measures and is confident in meeting systemic challenges through its strengthened marketing network, strategic planning, productivity improvements, and continuous cost-reduction exercises. The primary operational objective remains the seamless transition of the FIBC and Solar projects from CWIP to active commercial assets, transforming the Company into a structurally diversified, asset-heavy manufacturing entity.

7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company places significant emphasis on maintaining an exhaustive and automated Internal Financial Control (IFC) mechanism commensurate with its scale and operational complexities. The internal control architecture is designed to strictly safeguard physical and financial assets, ensure complete adherence to management policies, and prevent transactional leakages. The Audit Committee rigorously reviews internal audit findings and statutory compliances on a regular basis, ensuring that the control environment operates effectively and remains legally impenetrable.

8. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Standalone Financial Statements accurately reflect the strategic transitional phase of the Company. During the quarter and year ended March 31, 2026, the Company, pursuant to the explicit approval of the Board of Directors vide a duly passed Board Resolution, structurally reclassified outstanding sundry creditors aggregating to 2,58,24,693/- as Long-Term Borrowings. This strategic reclassification was executed based on revised terms and understandings entered into between the parties and has been appropriately presented in accordance with the provisions of Ind AS and Schedule III to the Companies Act, 2013. Furthermore, lease liability workings under Ind AS 116 are not applicable for the current period, as the existing lease agreements expired in March 2026, aligning perfectly with the Companys ongoing construction of its own operational premises.

9. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

Your Company firmly believes that employees are its most valuable assets and the key drivers of sustained corporate growth. During the year, various employee benefits, recreational, and team-building initiatives were deployed to enhance operational skills, motivation, and foster team spirit, alongside the targeted recruitment of specialized technical personnel required for the upcoming FIBC and Solar divisions. Industrial relations across all administrative and operational segments remained exceptionally cordial, harmonious, and dispute-free throughout the year.

10. HEALTH, SAFETY, AND ENVIRONMENTAL PROTECTION

Your Company operates in absolute compliance with all applicable environmental and labor laws. The Management has been strictly adhering to the relevant statutory mandates and has proactively implemented all necessary structural measures to protect the environment, prevent ecological hazards, and maximize worker protection, health, and occupational safety at its ongoing construction and administrative sites.

The comprehensive details of significant changes (i.e., variations of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with explicit, detailed explanations for such operational variations, have been meticulously computed and disclosed within the Notes forming an integral part of the Standalone Financial Statements attached to this Annual Report.

12. CAUTIONARY STATEMENT

The statements documented in this "Management Discussion and Analysis Report" describing the Companys objectives, projections, estimates, expectations, and predictions may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual annual results could differ materially from those expressed or implied, depending upon prevailing macroeconomic variables, climatic conditions, shifts in Government policies, volatility in raw material pricing, and other incidental factors beyond the direct control of the Management.