Srigee DLM Ltd Management Discussions

OVERVIEW

INDUSTRY STRUCTURE AND DEVELOPMENT

The Indian plastics and electronics industries continue to play an important role in the manufacturing sector, with increasing demand for plastic moulding goods, plastic granules and electronic components driven by applications across consumer goods, packaging, automotive, electrical and electronics industries. The plastic processing industry is supported by advancements in moulding technologies, automation and increasing demand for lightweight, durable and cost-effective products, while the growth of domestic electronics and mobile manufacturing is creating opportunities in the assembly of mobile parts and components. The industry is also influenced by factors such as fluctuations in raw material prices, crude oil prices, competitive pressures, technological developments and evolving environmental and regulatory requirements. Overall, the Company believes that continued growth in domestic manufacturing, electronics consumption and demand for polymer-based products presents opportunities for sustainable growth and expansion.

OPPORTUNITIES AND OUTLOOK

The Company expects a positive outlook, supported by growing demand for plastic moulding products, plastic granules and mobile components. Increasing domestic manufacturing and expansion of the electronics sector are expected to provide further business opportunities. The Company will continue to focus on improving operational efficiency, product quality and customer base. The Company remains committed to sustainable growth and strengthening its market position.

Opportunities:

- Growing demand for plastic moulding products and granules due to their wide industrial applications.

- Expansion of the mobile and electronics industry creating opportunities for mobile parts assembly.

- Product diversification and new market opportunities through development of value-added products.

- Adoption of advanced technology and automation to improve efficiency, quality and competitiveness.

RISK, CONCERNS AND THREATS

Risk:

- Raw Material Price Risk: Fluctuations in the prices and availability of plastic polymers and other raw materials may impact margins and profitability.

- Market & Competition Risk: Intense competition and changes in customer preferences may affect the Companys market share and pricing.

- Technology Risk: Rapid technological changes in the mobile and electronics industry may require continuous investment in technology and processes.

- Regulatory & Environmental Risk: Changes in environmental regulations, plastic-related restrictions and other statutory requirements may increase compliance costs and operational challenges.

Threats:

- Intense Market Competition: Increasing competition from domestic and international players may put pressure on pricing and market share.

- Raw Material Price Volatility: Significant fluctuations in the prices of polymers and other raw materials may adversely affect profitability.

- Regulatory Changes: Changes in environmental, plastic usage and other regulatory requirements may increase compliance costs.

- Technological Changes: Rapid technological developments in the electronics and mobile industry may require continuous investment in new technology and processes.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal control systems commensurate with the size and nature of its business to ensure efficient operations, safeguarding of assets, accuracy of financial records and compliance with applicable laws and regulations. The internal controls are periodically reviewed and strengthened to ensure effective risk management and operational efficiency.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The segment continues to be the primary revenue driver from Manufacturing of Plastic Moulding Goods, Trading and Plastic Granules and Sub-assembly of Mobile parts.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The companys financial performance has shown resilience despite challenging market conditions. Revenue growth has been primarily driven by the Engineering Solutions segment, which has seen increased demand across all sectors. Operational efficiencies have been improved through process optimization and cost control measures, contributing to a healthy profit margin.

A. Standalone Financial Performance:

(i) Net Sales and Other Income:

Net Sales and other income for the financial years 2024-2025 & 2025-2026 is INR 7136.85/- lakhs and INR 7575.63/- lakhs, respectively.

(ii) Expenditure:

Total expenditure for the financial years 2024-2025 & 2025-2026 is INR 6486.61/- lakhs to INR 6807.45/- lakhs, respectively.

B. Profit/Loss:

Total Profit for the financial years 2024-2025 & 2025-2026 is INR 500.66/- lakhs & INR 686.72/- lakhs, respectively.

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

The company continues to prioritize employee development and engagement. Significant investments have been made in upskilling our workforce to keep pace with technological advancements. The total number of employees as of the end of the financial year stood at 56. Industrial relations remained harmonious, with no significant disruptions during the year.

The number permanent employees on the roles of the Company as on 31st March 2026 is 56 employees.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Ratio	Current Period	Previous Period	Variance in %	Reason for variance by more than 25%
Current Ratio	2.70	1.80	50.06	Increase due to Increase in Inventories
Debt-Equity Ratio	0.20	0.20	0	NA
Debt service coverage ratio	16.48	6.03	173.37	Increase due to Increase in Profit on Sale of Fixed Assets
Return in equity ratio	22.39	29.53	(24.18)	NA
Inventory turnover ratio	4.12	6.80	(39.39)	Decrease Due to Increase in Inventory
Trade Receivables Turnover ratio	16.37	13.56	20.74	NA
Trade payables turnover ratio	7.19	10.67	32.60	Increase due to increase in Purchase
Net capital turnover ratio	4.58	10.29	(55.51)	Decrease due to increase in working capital due to increase in Inventories
Net profit ratio	9.50	7.03	35.13	Increase due to Increase in Profit on Sale of Fixed Assets
Return on capital employed	16.43	22.44	(26.79)	Decrease due to increase in capital by IPO
Return on investment	-	-	-	-

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

The Return on Net Worth for the current financial year improved compared to the previous year, primarily due to higher net profits and efficient capital allocation. The companys strategic focus on high-margin projects and cost optimization efforts contributed to this improvement.

ENVIRONMENT, HEALTH & SAFETY (EHS)

The Company commits to ethical and sustainable operation in all business activities. Company maintains and implements an Environmental Management System (EMS) for meeting the purpose of organizations policy and objectives regarding environment. The aims of the system is use of processes, practices, techniques, materials, products, services or energy to avoid, reduce or control the creation, emission or discharge of any type of pollutant or waste, in order to reduce adverse environmental impacts. Adequate Occupational Health & Safety Management System is adopted by the Company for ensuring the conformance to the Occupational Health & Safety Management System, legal & statutory requirements, continual improvement and satisfaction of interested parties (i.e. customers, suppliers, employees and public).

DISCLOSURE OF ACCOUNTING TREATMENT

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standard: our company has followed all required accounting standards also disclosed significant accounting policy. Financial statements include balance sheet, profit and loss, cash flow statement with schedules/Notes.

CORPORATE GOVERNANCE REPORT

As per regulation 15(2) of the Listing Regulation, compliance with the Corporate Governance provisions shall not apply in respect of the following class of the Companies:

a. Listed entity having paid-up equity share capital not exceeding Rs. 10 Crore and Net worth not exceeding Rs. 25 Crore, as on the last day of the previous financial year;

b. Listed entity which has listed its specified securities on the SME Exchange.

Since, our Company falls in the ambit of aforesaid exemption (b); hence compliance with the provisions of Corporate Governance shall not apply to the Company and it does not form the part of the Annual Report for the financial year 2025-26.

DECLARATION SIGNED BY THE CHIEF EXECUTIVE OFFICER STATING THAT THE MEMBERS OF BOARD OF DIRECTORS AND SENIOR MANAGEMENT PERSONNEL HAVE AFFIRMED COMPLIANCE WITH THE CODE OF CONDUCT OF BOARD OF DIRECTORS AND SENIOR MANAGEMENT

Since, our Company falls in the ambit of SME Listed entity; hence compliance with the provisions of declaration signed by the chief executive officer stating that the members of board of directors and senior management personnel have affirmed compliance with the code of conduct of board of directors and senior management shall not apply to the Company and it does not form the part of the Annual Report for the financial year 2025-26.

COMPLIANCE CERTIFICATE FROM EITHER THE AUDITORS OR PRACTICING COMPANY SECRETARIES REGARDING COMPLIANCE OF CONDITIONS OF CORPORATE GOVERNANCE

Since, our Company falls in the ambit of SME Listed entity; hence compliance with the provisions of Compliance certificate from either the auditors or practicing company secretaries regarding compliance of conditions of corporate governance shall not apply to the Company and it does not form the part of the Annual Report for the financial year 2025-26.

DISCLOSURES WITH RESPECT TO DEMAT SUSPENSE ACCOUNT/ UNCLAIMED SUSPENSE ACCOUNT

During the year under review, there are no shares in the DEMAT suspense account or unclaimed suspense account; hence, this provision is not applicable.

DISCLOSURE OF CERTAIN TYPES OF AGREEMENTS BINDING LISTED ENTITIES (1) INFORMATION DISCLOSED UNDER CLAUSE 5A OF PARAGRAPH A OF PART A OF SCHEDULE III OF SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

During the year under review, the Company has not executed certain types of agreements binding listed entities as required to be disclosed under clause 5A of paragraph A of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

CAUTIONARY STATEMENT

The statements in the "Management Discussion and Analysis Report" section describes the company objectives, projections, estimates, expectations, and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors.

Registered Office:

Plot No. 434, Udyog Kendra 2, Ecotech

3, Greater Noida, Uttar Pradesh, India,

201306.

BY ORDER OF THE BOARD,

FOR, SRIGEE DLM LIMITED

Date: September 07, 2026

Sd/-

Suchitra Singh

Whole Time Director & CFO

DIN: 08586042

Sd/-

Shashi Kant Singh

Managing Director

DIN: 00775112