Standard Surfactants Ltd Management Discussions.

(i) Industry structure and developments:

Your company is primarily engaged in the business of manufacturing of Surface Active Agents and Consignment Stockiest of Indian Oil Corporation Limited. The Covid-19 pandemic led to an economic contraction in the Calendar Year 2020 that was both sudden and deep compared to the previous global crises. Indias recovery in FY 2021-22, with estimated GDP growth of 11.5% at the beginning of CY 2021, has seen a downward revision between 9.6% and 10.5% due to rising Covid-19 infections at the beginning of FY 2021-22. However, with easing of lockdown restrictions globally and businesses adapting to the new way of working, the overall outlook is looking up.

(ii) Opportunities and Threats:

In India, with increasing demand, defending the Companys market position is a prime focus area. The Company will pursue the execution of its capacity addition plans for key products. The Companys value-driven growth opportunity in the specialty segments will ensure scale and consolidation. Strategic partnerships around themes of innovation and sustainability will continue to offer better customer value.

On the other side, logistics, market coverage, sales monitoring, and channel management becomes challenging and will play crucial role for the sustained viability and continuing success of the Companys businesses.

(iii) Segment wise or product wise performance:

The Company operates in two primary business segments viz. Manufacturing of Surface Active Agents and Consignment Stockiest of Indian Oil Corporation Limited, for High Density Polyethylene, Linear Low Density Polyethylene, Poly Propylene, Paraffin wax and other petroleum products. Further, Segment wise or product wise performance are self explanatory under Note no. 35 of the Financial Statements which forms a part of the Annual Report, which are self explanatory and need no further comments.

(iv) Outlook:

The global surface active market is expected to grow considerably owing to its vast applications in sectors such as home care, Agro industries and other connected fields. Surfactants reduce the surface tension of the liquid and remain stable in solutions containing relatively high concentration of electrolytes. Owing to these characteristics, the surface active agents are being used as hard surface cleaners, in textile scouring, and as metal cleansers. Further, In developing countries such as India and China, demand for personal care products is increasing due to expanding middle-class consumer base and rising disposable income of general populace, which in turn is driving the market.

(v) Risk and concerns:

The risks that may affect the functioning of the Company include, but are not limited to :

• Economic conditions;

• Increasing cost of raw materials and logistics;

• Volatile forex fluctuations;

• Competitive market conditions;

Your Company has a defined risk management strategy with senior management identifying potential risk, evolving mitigation responses and monitoring the occurrence of risk. The risks are identified on a regular basis, across functions and business segments and the Company strives to link each risk with mitigation step to ensure business continuity.

(v) Internal Control System:

The Companys Internal Financial Control framework is commensurate with the size and the nature of its operations. These have been designed to provide reasonable assurance about recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance of Corporate Policies.

(vi) Financial and Operational Performance:

The Directors Report has specifically dealt with subject matter the headings Operational Review.

(v) Human Resources:

The Company follows the core values of "be thorough on safety first and compliance" and takes great pride in being compliant to all laws and regulations governing labour and employees and continues to exercise strong governance over all established procedures and practices. Your Company endeavors that the conduct of all operations are in such manner so as to ensure safety of all the employees. The Company maintained harmonious industrial relations in the Company during the financial year 2020-21.

(vi) Cautionary Statement:

The statements made in this report describe the companys objectives and projections that may be forward looking statement within the meaning of applicable laws and regulations. The actual result might differ materially from those expressed or implied depending on the economic conditions, government policies, tax regime and other incidental factors, price conditions, domestic and international markets which are beyond the control of the company.

(vii) Significant changes in Key Financial Ratios:

There was change of more than 25% in Interests Coverage ratio, Debt Equity Ratio, Operating Profit Margin and Net Profit Margin during the year. This was due to lower interest cost, higher retained profit and focus on current assets and liabilities.

For STANDARD SURFACTANTS LIMITED
ANKURGARG PAWAN KUMAR GARG
Place : Kanpur Whole Time Director Chairman and Managing Director
Date : 23.08.2021 DIN: 00616599 DIN-00250836