Srivasavi Adhesive Tapes Ltd Management Discussions

1. INTRODUCTION:

Our company was originally incorporated as a Private Limited Company under the name Srivasavi Adhesive Tapes Private Limited under the provisions of the Companies Act, 1956 vide Certificate of Incorporation issued by the Assistant Registrar of Companies, Bangalore, Karnataka on March 19, 2010. Subsequently, our Company was converted to Public Limited Company and the name of our Company was changed to Srivasavi Adhesive Tapes Limited vide Special Resolution passed by the Shareholders at the Extra-Ordinary General Meeting of our Company held on September 14, 2022. The fresh Certificate of Incorporation consequent to conversion was issued on September 29, 2022 by the Registrar of Companies, Bangalore. The Corporate Identification Number of our Company is L24295KA2010PLC052908.

2. INDUSTRY STRUCTURE:

Changing economic and business conditions, rapid technology, innovation and adoption and globalization are creating an increasingly competitive market environment that is driving corporations to transform the manner in which they operate. Companies in this environment are now focusing even more on their business objectives such as revenue growth, profitability, and asset efficiency.

3. INVESTMENTS/ DEVELOPMENTS:

We are increasing our reach in the industry by expanding our client base across sectors / verticals. We are an ISO 9001:2015 certified company certified by TUV Nord and engaged in manufacturing/ coating, converting and Die cuts of industrial Specialty self-adhesive tapes, We do customized die cutes of Films, Foams and allied products catering to various industries such as Automotive, Locomotives, Aerospace, Defence, Electrical & Electronics, Renewable Energy, Print & Paper, Food & Pharma, FMCG, White & Brown Goods, Furniture, Retail, Construction, Infrastructure, Sports & Fitness Equipment, Textiles & Leather Industries serves wide range of pressure sensitive adhesive tapes, , BOPP tapes, Eco Friendly paper Tapes, Filament tapes, Double Side tapes, Packaging tapes, Specialty Protection tapes, Surface Protection tapes, Masking tapes, Specialty Foams/ Films.

4. OPPORTUNITIES AND THREATS: Strength:

Growth in the Indian economy and demand creates unprecedented opportunities for company to invest significantly in each of its core businesses. Outlook for the overall industries is positive. In keeping with the philosophy of continuous consumer centric approach which is the hall mark of anyorganization, several developmental activities have been planned for the next fiscal year.

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 like us. We believe that we can 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 product mix has evolved over the past several years as we have entered new product categories. Our product portfolio includes industrial speciality self-adhesive tapes, which are made from film, foam, foil, fabric and paper, with different kind of adhesive system to suit industrial application and specification oriented adhesive tapes. We make Filament tapes, Fiber glass fabric tapes, polyester tapes, cotton fabric tapes, Double sided tapes, scrim tapes, reinforced foil tape, reinforced paper tape, high temperature resistant polyester tapes, Aluminum foil tapes, ECO friendly paper tapes, BOPP Packaging tapes, Protection tapes, Masking tapes, Foams Tapes etc. We engage in manufacturing of products based on customer specification or applications of our customers to meet their requirements. We believe that maintaining a variety of products in our business provides us with an opportunity to cater to diverse needs of different customer segment such as Automotive, Locomotives, Aerospace, Defence, Electrical & Electronics, Renewable Energy, Solar, Print & Paper, Food & Pharma, FMCG, White & Brown Goods, Furniture, Retail, Construction, Infrastructure, Sports & Fitness Equipment, Textiles & Leather Industries. Our products undergo quality check at various levels of production to ensure that any quality defects or product errors are rectified on real time basis. We also provide the customized Diecutting solutions to our customers as per there application requirements.

6. OUTLOOK:

The Continual growth in this sector in India is necessary to give necessary support to the industry. The company is making all effort to accelerate the growth of its business. It Expect to improve its position in the market by focusing in the technologically advanced and more profitable Product andmarket segment and working aggressively in the area of productivity, efficiency, and cost reduction.

7. RISKS AND CONCERNS:

The industry is exposed to the following risk and concerns:

Complex Global Supply-Chain:

Companies have to juggle internal and external resources while staying within international standards. Issues such as traceability and compliance are increasing operational burdens.

Uncertain Demand:

Aggregately, economic volatility and cyclical demand cause fluctuations in production. On a more granular level, consumer preference can cause spikes in demand for an individual products or company. Efficient lean capabilities must be in place to keep inventory aligned with demand.

8. 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.

9. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE: Share Capital:

During the year under review, the Company No changes in Share capital of Company.

Reserves and Surplus:

The Reserve and Surplus of Company is Rs. 3,253.86 Lakhs on Consolidated as on period ended on 31 st March, 2026.

Total Income:

The Company has earned total Income Rs. 11,047.70 Lakhs on Consolidated as on period ended on 31 st March, 2026.

10. 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 assets of your Company. The Company recognizes people as its best employees and the Company has kept a sharp focus on Employee Engagement. The Company s HumanResources is commensurate with the size, nature and operations of the Company.

11. 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 F.Y. 2025-26 was 13.60% and for F.Y. 2024-25 was 16.72%. The Company has recorded growth in the Net profits of Company.

12. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

(All amounts in Lakhs Rupee except otherwise stated)

																	31st			31st
Particulars					Numerator					Denominator							March,			March,			Change			Remarks
																	2026			2025
																										Due to increase in
Current					Current					Current																working capital short
																	1.70			2.53			-33%
Ratio					Assets					Liabilities																term loan in FY 2025-
																										26
																										Borrowing has been
Debt-
										Shareholders \u2019																increased by 962.29
Equity					Total Debt												0.38			0.03			1016%
										Equity																Lakhs
Ratio
																										in FY 2025-26
					Earnings
					for		debt			Debt service =
Debt					service		=			Interest					&											Borrowing has been
Service					Net		profit			Lease																increased by 962.29
																	0.45			6.97			-94%
Coverage					after		taxes			Payments					+											Lakhs
Ratio					+ non-cash					Principal																in FY 2025-26
					operating					Repayments
					expenses
					Net Profits
										Average
Return			on		after taxes
										Shareholders \u2019							14%			18%			-24%			Below +/- 25%
Equity ratio					Preference
										Equity
					Dividend
Inventory
					Cost		of			Average
Turnover																	4.65			4.50			3%			Below +/- 25%
					Goods Sold					Inventory
Ratio
Trade
										Average
Receivable					Net		credit
										Trade							4.30			4.59			-6%			Below +/- 25%
Turnover					Sales
										Receivables
Ratio
Trade
										Average																Due to increase in
Payable					Net		Credit
										Trade							9.37			5.48			71%			purchase compared to
Turnover					purchase
										Payables																the previous year
Ratio
										Working
																										Due to decrease in
Net Capital					Net sales		=			capital					=
																										Working Capital
Turnover					Total sales -					Current assets							5.36			3.64			47%
																										compared to the
Ratio					sales return					Current
																										previous year
										liabilities
									Net sales					=
Net	Profit																								Due to decrease in Net
						Net Profit		Total			sales		-					5.52%			7.54%			-27%
Ratio																											Profit
									sales return
				Interest
Return		on
				(Finance					Investment							0.03			0.04			-5%			Below +/- 25%
Investment
				Income)
Net		profit				Profit After																					Due to decrease in Net
								Revenue										5.52%			7.54%			-27%
Margin						Tax																					Profit
								Capital
									Employed					=
				Earnings
Return	on								Tangible			Net													Due to increase in
				before
Capital									Worth + Total							0.13			0.22			-44%			Capital Employed
				interest
Employed									Debt					+											(Debt Portion)
				and taxes
									Deferred			Tax
									Liability

13. CAUTIONARY STATEMENT:

This report contains forward- looking statements based on the perceptions of the Company and the data and information available with the company. The company does not and cannot guarantee the accuracy of various assumptions underlying such statements and they reflect Company s current views of the future events and are subject to risks and uncertainties. Many factors like change in general economic conditions, amongst others, could cause actual results to be materially different.

Annexure III

Details pertaining to remuneration as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

1. The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2025-26:

Sr.	Name of the Director / Key	% increase/ (decrease) in		Ratio of remuneration		of each
No.	Managerial Person (KMP) and	remuneration in	the	Director	to	median
	Designation	financial year 2025-26		remuneration of employees
1.	D N Anilkumara	33.33%			34.38
2.	Ashwini D A	0%			15.47
3.	Prajakta Sangoram	NA			NIL
4.	Gopi D K	NA			NIL
5.	Giriraj Bhutra	NA			NIL
6.	Nikhil Jain	-9.39			1.23
7.	Rohit Kumar Joshi	0.03			8.26

2. The percentage increase in the median remuneration of employees of the Company in the financial year:

During the financial year 2024-25, the median remuneration of employees of the Company was increased by 10.84%.

3. The number of permanent employees on the rolls of Company:

As on March 31, 2026, there were 145 permanent employees on the rolls of the Company.

4. Average percentile increases already made in the salaries of employees, other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

During the last Financial Year, Average percentile increase made in the salaries of employees by 6.11% and increase in Managerial remuneration of KMP by 17.08%. ((The Managerial Remuneration has been increased due to their constant efforts, hard work, and dedication for development of business of Company and to achieve the magnificent growth in turnover and profit of the Company.)

5. Affirmation that the remuneration is as per the remuneration policy of the Company:

Annexure IV

Form No. AOC-2

[Pursuant to clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014]

1. Details of Contract or arrangements or transactions not at arm s length basis:

There were no contracts or arrangements or transactions entered into during the year ended 31 st March, 2026, which were not at arm s length basis.

2. Details of material contracts or arrangement or transactions at arm s length basis:

There were no material contracts or arrangements or transactions for the year ended 31st March, 2026.