Sumeet Industries Ltd Management Discussions

GLOBAL ECONOMY

The swift escalation of trade tensions and extremely high levels of policy uncertainty are expected to have a reasonable impact on global economic activity. The global economy is entering a phase of slower growth, influenced by protectionist trade policies and rising inflation. The projected global growth is expected to stabilize at 2.7% annually. While this marks a return to pre-pandemic growth rates, it remains insufficient to drive sustained development, particularly for emerging markets and developing economies (EMDEs), which contribute 60% of global growth. This stabilization is attributed to easing inflation and supportive monetary policies. However, growth is insufficient to offset the cumulative impact of previous economic shocks. EMDEs are experiencing slower per capita income growth, with many low-income countries unlikely to achieve middle-income status by mid-century without significant policy reforms. Key risks include heightened policy uncertainty, adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters.

The International Monetary Fund ("IMF") has projected global growth to moderate to 2.8% in 2025 and 3.0% in 2026, sharply lower than the 3.3% projected for both years in its January 2025 update. The IMF attributes this slowdown to factors like escalating trade tensions and increased political uncertainty. This highlights how critical a phase the global economy is currently passing through. Just as the world economy looked like stabilising following a series of shocks in the preceding years, it has been dealt a severe blow with the United States unilaterally announcing tariffs on major trading partners and critical sectors, bringing effective tariff rates to levels not seen in a century.

Managing downside risks dominate the outlook for most organizations. Ratcheting up a trade war, along with even more elevated trade policy uncertainty, could further reduce near and long-term growth, while eroded policy buffers could weaken resilience to future shocks. Divergent and rapidly shifting policy stances or deteriorating sentiment could trigger additional repricing of assets beyond what took place after the announcement of sweeping US tariffs on April 2, 2025 and sharp adjustments in foreign exchange rates and capital flows, especially for economies already facing debt distress. Broader financial instability may ensue, including damage to the international monetary system. On the upside, a de-escalation from current tariff rates and new trade agreements providing clarity and stability in trade policies could lift global growth

Out Look

Particulars	Estimate %		Projections %
	2024	2025	2026
World Output	3.3	208	3.0
Advance Economies	1.8	1.4	1.5
Emerging Market and Developing Economies	4.3	3.7	3.9
India	6.5	6.2	6.3

INDIAN ECONOMY.

India is projected to remain the fastest-growing large economy for 2025-26, reaffirming its dominance in the global economic landscape. Our countrys economy is expected to expand by 6.2% in 2025 and 6.3% in 2026, outpacing many of its global counterparts.

The higher disposable incomes to middle class, the rate cuts, the accommodative monetary policy and the enhanced liquidity in the banking system, is expected to boost growth in times of external uncertainties. The focus of the Budget on longer term development drivers and reforms, anchored around the ambition of ‘Viksit Bharat, adds to the confidence in domestic economic resilience

Our Country will be able maintain potential real GDP growth of 6-6.5% YoY over the next two years, making it worlds third largest consumer market in 2026 and third-largest economy by 2027 (after US and China). We expect Indias nominal GDP to increase from USD 4 trillion in FY25E to USD 6 trillion by FY30E. We believe Indias potential growth could benefit from manufacturing and export push, increased services exports, and digitalization, leading to improvement in productivity and efficiency gains. While the long-term growth prospects of India are fairly strong, the recent issues at our western border remain a threat to our economic growth for this year especially if they escalate over the course of the next few weeks and months

GLOBAL TEXTILE INDUSTRY

The Global Textile market demonstrated healthy growth in 2024, reaching an estimated USD 690 billion, with projections indicating expansion to USD 903 billion by 2028 at a CAGR of 7.0%. The industry benefited from improved consumer sentiment, normalising supply chains, and stable raw material prices, particularly in the latter part of the year. Demand was driven by the continued shift toward man-made fibres, increasing emphasis on sustainable and technical textiles, and greater digitisation across the textile value chain. The fashion e-commerce segment remained a significant growth driver, supported by widespread internet access, mobile-first consumers, and increasing demand across various age groups. This segment is projected to grow at a CAGR of 10.6%, reaching USD 1,357 billion by 2028. The shift to online platforms is reshaping supply chains and prompting quicker response cycles in global markets. However, the textile industry also faced challenges, particularly due to recent tariff hikes. Many countries have imposed new tariffs on textiles, especially affecting key players in China, Vietnam, and other Asian manufacturing hubs. These tariff hikes added additional costs to the global supply chain, leading to increased production costs and pressure on margins, particularly in low- and mid-tier markets. This scenario forced global brands and retailers to reassess their sourcing strategies and move towards more diversified supply chains to mitigate the impact of such tariffs. Simultaneously, the industry navigated key regional challenges, including political instability in Bangladesh, which disrupted production planning and weakened buyer confidence. Rising labour costs in Vietnam also created margin pressures in basic and value apparel categories. These developments intensified the shift towards diversification, resilience, and adherence to ESG compliance across global supply chains. Amid these complexities, India emerged as a preferred sourcing destination. The countrys integrated manufacturing capabilities, improving infrastructure, and commitment to sustainability norms positioned it as a key player in the evolving global textile landscape. Indias growing role in global sourcing decisions further highlights a shift toward more balanced and diversified vendor bases, as companies look to reduce dependency on tariff-exposed markets.

INDIAN TEXTILE INDUSTRY

The Indian textile and apparel industry remains a cornerstone of the countrys economy, contributing approximately 2.3% to GDP, 13% to industrial production, and 12% to total exports. It is the second-largest employment generator in India, engaging around 45 million people. In 2024, the industry was valued at approximately USD 222.08 billion, with projections estimating a rise to USD 646.96 billion by 2033 at a CAGR of 11.98%. Spanning the entire value chain from fiber to fashion, the Indian textile industry combines traditional sectors such as handlooms and handicrafts with modern segments like technical textiles. Evolving consumer demand has accelerated the shift toward sustainable materials, eco-friendly production processes, and digital distribution channels. The expansions of e-commerce and increasing preference for ethical fashion have created new opportunities for premium and niche textile products.

Year 2024 marked a year of steady recovery for the sector. The second half of 2024 saw improved export performance, especially to key markets in the US and Europe, driven by festive season demand, lower inventories, and rising retail footfall. From April to December 2024, apparel exports rose by 11.3% to USD 9.8 billion, while textile exports increased by 3.9% to USD 13.5 billion. Cumulatively, Indias textile and apparel exports grew 6.9% to USD 23.3 billion.

POLYESTER (MMF) INDUSTRY

Indian Manmade fibre (MMF) textile industry is vibrant and growing. Today, India produces almost all the types of synthetic fibres, be it polyester, viscose, nylon or acrylic and hence we are at the advantage compared to any other nations across the world. Currently, we are the 2nd largest producer of both polyester and viscose globally. MMF textile industry in India is self-reliant across the value chain right from raw materials to the garmenting. Our fabrics are international standard and known for their excellent workmanship, colours, comforts, durability and other technical properties. Due to heavy investments in world-class manufacturing plants, continuous innovation, untiring entrepreneurship, new product mix and strategic market expansion, India is poised to stand as a most prominent supplier in the global arena.

Global end-use demand for textile fibres is forecast to expand by an average of 2.80% per annum between 2015 and 2025, from 90.10 mn tons to 119.20 mn tons and global end-use demand for man-made fibres is expected to increase by 3.7% in 2025 ( Source : Ministry of textiles )

India stands as the worlds second-largest producer of man-made fibres. These fibres contribute to nearly 100 per cent of non-cotton and blended fabrics, offering versatility and cost-efficiency. Currently, the country produces a staggering 1,441 million kilograms of synthetic fibres and over 3,000 million kilograms of synthetic filaments. Man-made fibres, such as viscose and polyester, have proven to be flexible, durable, and capable of withstanding high-speed machinery. Their hydrophobic properties open doors to multiple applications. Consequently, man-made fibres have become a vital pillar of Indias textile industry, providing the sector with the agility to adapt to changing market dynamics.

In FY24, the MMF textile sector experienced a significant downturn, according to Directorate General of Commercial Intelligence and Statistics (DGCIS) data compiled by CITI. Exports of MMF apparel fell by 22 per cent to $2.89 billion from $3.53 billion in FY23. Overall exports in the MMF sector dropped by 11 per cent to $9.03 billion from $10.02 billion (Source: https://www.matexil.org/gallery/view/239562 )

While the export market is challenging, it is anticipated that as global demand increases, Indias exports of polyester has potential to correspondingly rise. Additionally, there is a notable increase in demand for polyester across all major product categories due to its superior functionality, comfort properties, competitive pricing compared to cotton. Going forward demand for polyester based products is increasing in the domestic market as well and hence there is good potential for polyester yarn and fiber.

Government Initiatives: The Indian government continues to bolster the textile industry through a series of strategic initiatives, focusing on manufacturing incentives, infrastructure development, trade facilitation, and sustainability.

Budget Allocation and key schemes: The Union Budget for 2024–25 allocated Rs.4,417 crore to the textile sector, marking a 28% increase from the previous years revised estimate of Rs. 3,443 crore. This allocation underscores the governments focus on revitalizing the industry through various schemes and programs.

Production-Linked Incentive (PLI) Scheme: The PLI scheme for textiles is being implemented nationwide, promoting the production of MMF apparel, MMF fabrics, and technical textile products to achieve size and scale and become competitive. The government has approved over Rs. 10,000 crore for the PLI scheme, with plans to extend it to the garments sector.

Rebate of State and Central Taxes and Levies : The RoSCTL scheme has been extended until March 31, 2026, providing rebates on central and state taxes for exporters of garments and made-up products, thereby enhancing the international competitiveness of the textile sector.

PM MITRA Parks Scheme: The government has approved the establishment of seven Mega Integrated Textile Region and Apparel (PM MITRA) Parks across India, aiming to boost jobs, exports, and investments. Each park is expected to create approximately 300,000 jobs and will be equipped with modern facilities.

National Technical Textiles Mission (NTTM): Launched in 2020, the NTTM aims to make India a global leader in technical textiles with a budget of Rs.1,480 Crore until 2025–26. The mission supports research, market development, exports, and skill development in the technical textiles sector.

Sustainability and Renewable Energy Initiatives: In alignment with global sustainability goals, India is encouraging textile units to adopt renewable energy sources, such as rooftop solar installations and biomass boilers. These measures aim to reduce the industrys carbon footprint and promote environmentally friendly practices.

Trade Agreements and Foreign Direct Investment (FDI): India continues to engage in Free Trade Agreement (FTA) negotiations with countries like the EU, UK, and Canada to enhance market access for textile exports. The liberalized FDI policy, allowing up to 100% investment under the automatic route, has attracted significant foreign investments, further strengthening the sector.

BUSINESS OVERVIEW

Sumeet Industries Limited has an integrated manufacturing facility at Karanj (Surat) from Melt to DTY. Our large product comprises of POY, FDY, Texturized Yarn, Micro Filament Yarn, Dope Dyed Yarn and Textile Grade chips (Pet Chips). The Company has accelerated its cost optimization drive across the value chain to further improve its operational efficiency.

The companys manufacturing unit have a locational advantage being situated in the Surat area. Its location gives its proximity to both raw material suppliers as well as end users. The production capacity of the plant is as under:

Name of the Product	Production capacity (TPA)
C.P. Plant	1,00,800
POY	52,500
FDY	45,500
Texturizing Yarn	5,400
Recycled Chips	2,700

RESULTS REVIEW

Turnover:

Sumeet Industries Limited has achieved a turnover (Standalone) of Rs. 100337.05 Crore in the year 2024-25 as against Rs. 984.86 Crore during the previous year showing a marginal increase of 1.88 % over previous year. Increase in sales was marginally increased due to marginal increase in price of finished goods. During the year under review the company has produced 103390.423 Tons (P.Y. 103842.209 Tons ) of Pet Chips/Polyester and Texturized Yarn and dispatched 102877.870 Tons ( P.Y. 103971.267 Tons ) of Pet Chips / Polyester and Texturized yarns

Other Income:

Other income consisting of receipt of Dividend, Discounts and Interest on Fixed Deposits, Exchange difference income & Others. Other income for the year 2024-25 is amounting of Rs. 236.80 Lacs against Rs. 84.81 Lacs in the previous year.

Consumption of Raw material:

Consumption of raw material was marginally decreased from Rs. 98610.90 Lacs to Rs. 95780.40 Lacs due to price fluctuation in raw material prices.

Employee Cost:

Employees cost were increased from Rs. 2837.10 Lacs to Rs. 3008.66 Lacs being some new employees has been appointed and annual increments were given to present employees.

Finance Cost:

Finance costs were increased from Rs. 1.81 Lacs to Rs. 358.74 Lacs being the company has taken fresh loans from financial institution after successful resolution of the company and management is taken over by Eagle Group "Successful Resolution Applicant".

FINANCIAL PERFORMANCE

a) The report of the Board of Directors may be referred to for financial performance.

b) As per provisions of SEBI Listing Regulations, 2015, the significant financial ratios (calculated on standalone basis) are given below:

Particulars	31.03.2025	31.03.2024	Change	Reasons for change by more than 25%
Current asset				Current Ratio has been increased due to decrease in current liability as compared to previous year
Current Ratio Current liabilities	1.62	0.53	195%
Current borrowings (Including Current Debt Equity Ratio maturities of long term debts)+Non current borrowings	0.38	-4.61	-109%	Debt Equity Ratio has been increased due to increase in equity & decrease in borrowings as compared to previous year.
Total Equity
Net Profit after Tax but before Interest,				Debt Service Coverage Ratio has been increased due to implementation of resolution plan under IBC.
Debt Service Coverage Depreciation & Ratio Amortization	2.32 Interest + Total	-0.08	-2768%
Installments
Profit after Tax				Return on equity ratio has been increased due to implementation of resolution plan under IBC.
Return on Equity Ratio Total Equity	0.82	0.64	26%
Cost of Goods sold
Inventory Turnover	9.21	9.60	-4.05%	Not Applicable
Average inventory
Net Credit Sale
Trade Receivables
Average Trade turnover ratio	11.78	10.06	17%	Not Applicable
Receivable
Net Credit Purchases for Goods				Trade Payable turnover ratio has been decreased due to implementation of resolution plan under IBC.
Trade payables
Average Accounts turnover ratio	10.63	29.94	-65%
Payable for Goods
Revenue from				Net Capital Turnover ratio has been increased due to increase in revenue from operations
Net capital turnover Operation ratio Working Capital	9.67	-4.44	-338%
Profit After Tax				Net profit ratio has been increased due to implementation of resolution plan under IBC.
Total Revenue
Net profit ratio	0.1501	-0.0599	-336%
EBIT				Return on Capital Employed has been decreased due to increased in capital employees.
Return on Capital Capital Employed employed	0.71	1.25	-41%
Return on investment Profit after Tax				Return on investment has been increased due to implementation of resolution plan under IBC.
Total Equity	0.82	0.64	26%

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The companys well defined organizational structure, documented policy guidelines, defined authority matrix and internal controls ensure efficiency of operations, compliance with internal policies & applicable laws and regulations and optimal use of companys resources, safeguard of all assets, proper authorization and recording of transactions and compliances with applicable laws.

The Companys internal control policies are in line with its size and nature of operations and they provide assurance that all assets are safeguarded, transactions are authorized, recorded and reported properly following all applicable statutes, General Accepted Accounting Principles, Companys Code of Conduct and Corporate Policies

The Company uses Enterprise Resource Planning (ERP) supported by in-built controls that ensures reliable and timely financial reporting. Well-established & robust internal audit processes, both at the Corporate and the Business levels, continuously monitor the adequacy and effectiveness of the Internal Controls and status of compliance with operating systems, internal policies and regulatory requirements. All Internal Audit findings and financial and audit control systems are periodically reviewed by the Audit Committee of the Board of Directors which provides strategic guidance on Internal Controls. The review of reports, statements, reconciliation and other information required by the management are well documented in application system to provide reasonable assurance regarding effectiveness and efficiency of operations, reliability of financial reporting and compliance with applicable laws and regulations. Additional modules in ERP like Production planning, Costing, Quality management has added additional advantages in improving product costing. The Company also has a robust & comprehensive framework of Control Self-Assessment which continuously verifies compliance with laid down policies & procedures and help plug control gaps.

ENERGY CONSERVATION

The Conservation of energy in all the possible areas is undertaken as an important means of achieving cost reduction. Saving in electricity, fuel and power consumption receive due attention of the management on a continuous basis. Various measures have been taken to reduce fuel consumption, reducing leakages, improving power factor optimizing process controls etc. resulting in energy savings. The Company is sourcing renewal power under open access which is facilitating reducing our power cost.

OPPORTUNITIES AND STRENGTH

Indias man-made fiber (MMF) products are known for their workmanship, colors and durability. Globally, the textile trade is dominated by MMF. India to increase its share in the global textile trade, the country will have to increase its competitiveness in MMF value chain, in terms of price as well as diversification in products. There is increasing trend in USA and Europe towards shifting textile business from China to other Asian countries and India is becoming a closer choice.

Indias self-sufficiency in raw materials across entire value chain and manufacturing capacity are factors favoring India over other countries. India has large indigenous raw material base – it is the second largest producer of Polyester Filament Yarn and Polyester Staple Fibre and third largest producer of Viscose Staple Fibre in the world. Due to large working population, human resource availability is an advantage for MMF industry. After Covid, garment trends is shifting to sustainable MMF in place of cotton due to climate constraints and cost reduction final garment. India is the world leader in spinning & processing recycled polyester which will work to our advantage.

OPPORTUNITIES AND CHALLENGES

OPPORTUNITIES

The growing disposable income and a burgeoning middle class have led to changing consumer preferences and rising demand for high-quality textile and apparels.

E-commerce expansion and meteoric rise of the retail sector are contributing to the growth of the industry.

There is a growing demand for environmentally friendly and sustainable textiles and garments as consumers are increasingly concerned about the environmental impact of textiles and are demanding more sustainable options.

Comprehensive Economic Partnership Agreements (CEPAs) and Free Trade Agreements (FTAs) with various countries are poised to boost exports of Indian textiles and open up new markets for the sector.

The trade diversification policy presents an opportunity for the Indian textile and apparel industry, as global companies are seeking to diversify their production and sourcing activities away from China. India is well-positioned to capitalize on this trend, capture a considerable share of this global shift and establish itself as a global manufacturing hub.

The PM MITRA Parks across seven states in India would attract large investments, including FDI in the textile sector, generate huge employment and create an integrated textiles value chain.

The rapid penetration of digital technology and social media influence is providing consumers with extensive access to fashion trends, styles, and brands. This shift in consumer behavior creates opportunities for branded textiles to cater to evolving consumer preferences.

CHALLENGES

Fluctuations in raw material prices and the high cost of energy and transportation pose significant challenges for the industry players, as increasing prices exert pressure on margins.

Consumer demand for textiles and apparel may falter amid high inflation and economic slowdown in key markets. Sluggish demand in the international and domestic markets may lead to high inventories, low production and a decline in exports.

The textile industry in India is highly capital-intensive, which impacts its competitiveness in the global market. Increasing competition from textile manufacturing hubs in countries, like Bangladesh, Vietnam,

Indonesia and China will pose a threat to Indias textile and apparel exports. Furthermore, the industry faces stiff competition from international retailers and fashion brands .

Rising labour costs, the shortage of skilled labour and overreliance on labour-intensive technologies may impact the operations.

Stringent environmental norms and regulations may impact operations and profitability.

Fast-changing trends and consumer preferences are shaping the textile industry and may impact demand.

THREAT, RISKS AND CONCERNS

The rapid deterioration of the global economic outlook following the Russia -Ukraine war and mass layoffs of employees by global corporations, has severely impacted demand and margins. Lack of modern technical know-how, non-availability of skilled manpower near factories, volatile raw material prices, infrastructure bottlenecks, are other factors that may pose a threat to progress of MMF industry. However, through investing in people, digitalisation, research & development, reaching out to untapped global markets, green energy and supply chain diversification, margins can be improved.

The objective of risk management framework is to identify events that may affect the company and manage risk in order to provide reasonable assurance regarding achieving the companys objective. The company is operating in an environment that is becoming more and more competitive. The company seeks to ensure that the risks if undertaken are commensurate with returns. Successful risk management implies not avoidance of risk, but anticipation of the same, and formulation and implementation of relevant mitigation strategies.

Managing risk assists us in discovering, assessing, and controlling risk to the capital and earnings of our Company. Financial uncertainties, legal liabilities, technical challenges, strategic management failures, and accidents are all potential sources of risk. To address the complete range of risks that we face, we use a proper risk management methodology and structure.

a) RAW MATERIAL RELATED RISK:

Raw material being a major cost of production, Companys operations and profitability are significantly dependent on price and timely availability of raw materials used in production process. The primary raw materials for our textile operations are Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG) that are required in the manufacturing of Partially Oriented Yarn (POY) and other polyester yarn. Being petrochemical products, prices of PTA and MEG are linked to naphtha prices and ethylene prices, respectively.

The Company has assured supplies of PTA and MEG from Reliance Industries Limited at internationally competitive prices and on an arms length basis.

b) RISK AGAINST FIRE, FLOOD AND ACCIDENTS

Risk against fire, flood, accident, health related problems and accidents of workforce are common risks attached to the working of any plant/company. Management has taken reasonable steps to counter the risk.

The company has taken Comprehensive All Risk Insurance Policy, which covers companys assets against all risks. Accidents due to human failure are being tackled through the continuous training to our technical and other staffs and through regular monitoring and supervision. All the employees of the company are also insured under Group Insurance Policy of Life Insurance Corp. of India. c) ECONOMIC RISK

Domestic sales contribute to a major part of the revenue of the company so, the factors that may adversely affect the Indian economy and in turn companys business includes rising in interest rate, deprecation of rupees, inflation, change in tax structure, fiscal and monetary policies, scarcity of credits, global trade slowdown etc. Over capacity in the POY and Chips industry can also affect margins. India is witnessing improving macroeconomic fundamentals–moderating inflation, stabilising currency and improving consumer demand.

d) MARKET RELATED RISK:

The Companys performance also depends upon the demand situation. A slowdown in demand may lead to decline in production/ sales and thus impact profitability.

We face competition from existing players and potential entrants in the Indian textile industry. The Indian textile industry is highly competitive both in the Pet Chips segment and in the POY/ FDY segment. Our company is in medium size as compared to the market leaders like Reliance Industries Limited. Domestic production is dominated by few organized players who have integrated facilities and large economies of scale and the unorganized sector is virtually absent.

The company has a well defined TQM system of control points, comprehensive budgetary controls and review system to monitor its operations to remain cost competitive than its peer group. The company also widened the value added product portfolio to address a broader client base and offer wide range of products.

Our product mix spread over six important Polyester products: Pet chips, POY, FDY, Dope Dyed, Micro Filament and Texturised Yarn. The company is continuing putting its thrust on re-engineering of its existing operations. With an expanded value based product portfolio, we can now address a broader client base.

The Companys operations will now scaled up and it is fully prepared to meet larger volumes due to change in management after CRIP.. The Company is confident that it will regain a preferred supplier status for quality, design capability and the capacity to provide large volumes on a consistent basis

Creating value for customers, meeting their ever-increasing expectations and responsibility towards the environment sets the foundation for the company to invest its resources to create new and enriched products, services and solutions, which not only provide enhanced benefits to the consumer but also reduce the negative impact on the environment.

d) TECHNOLOGY RISK

Information and Technology being the major backbone of Companys overall operation and data storage/ analysis, is another key risk area identified by the Company and several measures are being taken to strengthen the same and mitigate the risk associated with this.

Obsolescence of technology may affect the production process and technical support from original equipment manufacturers. The Company monitors such issues and makes investment in technology up-gradation on regular basis to ensure stability. This, in turn, helps the Company to stay at par with the global practices. The Company also does process re-engineering and improvisation to enhance efficiency and also helps in optimization.

Cyber security being a major concern for the IT ecosystem, we continue to focus on enhancing cyber security architecture which can protect our landscape from a wider range of security threats under guidance of "IRM – Governance and Risk Management.

f) REGULATORY RISK

There is a regulatory risk due changes in international and domestic laws, rules, policies, tax regulations, technical standards and trade policies etc.

Mitigating risks through regular review of legal compliances as well as external compliance audit, implementing an enterprise-wide compliance management system and monitoring of regulatory and legal compliances fro time to time

Risk is an integral and unavoidable component of business and given the Challenging and dynamic environment of the Companys operations, it is committed to proactively managing risk and accomplishing its goals. The Company has formulated a risk management policy and has in place a mechanism to update the Board Members about risk assessment. Some of the key business risks identified by the management include risks related to economic environment and market position, cost of production, legal and compliance with applicable laws, environment and sustainability, information technology and talent management.

The company has restrained its position in the industry due to proactive planning, efficient use of resources, capitalizing on emerging opportunity, striving on cutting edge technology and re-engineering of its existing operations by adding more value added and specialty products. The company has a strong technology back up which helps in maintaining the quality and monitoring to ensure that everything runs smoothly.

WASTE MANAGEMENT

Reduction of waste has direct implications on cost optimization. At the same time, waste management helps us derive significant value. We have identified several opportunities in our operations for minimizing and managing waste.

We have adopted various methods and practices for solid and hazardous waste management. Solid waste like polymers are sold to authorized parties for re-use. Fibre waste are used as captive material through waste re-cycling plant set up by the company. The company has setup a state of art an ETP plant for treating polluted water of the plant. Hazardous wastes are handled through registered recyclers, who are authorized by the concerned Pollution Control Boards.

ENVIRONMENT, HEALTH AND SAFETY (EHS)

In keeping with the environment-conscious tenor of the times, your company has taken effective steps in creating an aesthetic, environment-friendly industrial habitat in its factory units, mobilizing support and generating interest among staffs and labours for maintaining hygienic and green surroundings. Being providing continual efforts and stress on fire and safety, no major incident was noted in the year 202-25.

Safeguarding the health and safety of our people is integral to our commitment to remain a responsible organization. Contractors and contractual workers also come under the purview of the Companys health and safety endeavors. Personnel are trained with advanced safety and security standards to minimize hazards and ensure high performance. No fire or other incidence of such nature took place in the year under review. To achieve the environment, health & safety visions, various objectives have been set forth. These are as follows:

- Compliance with environment, health & safety laws and regular assessment of the compliance of operations against the requirement.

- Ensuring safety related practices to enable employees and others to eliminate work related injury and illness.

- There is a well-defined Emergency management plan to tackle any major emergency inside and outside plant premises.

- First Aid training camps organized.

- State-of-the-art fire and safety installations to meet emergencies within the company, as well as nearby areas.

- Training and counselling of employees, contractors, sub-contractors and transporters to ensure effects of environment, health and safety.

- Training and motivating employees to understand their EHS responsibilities and to participate actively in EHS program.

- Imparting fire fighting training to personnel and mock drills to ensure safety preparedness.

- Toilets and drinking water facility, Sanitizers facility provided and they are being regularly inspected for cleanness.

- Proactive measures to increase usage of recycled water.

- To abide by all statutory compliance as per Factories Act, 1948.

HUMAN RESOURCES

The company firmly believes that success of any organization largely depends upon availability of human assets within the organization as it is one of the most valuable assets because revenue and profit growth cannot take place without the right equality of people. To that effect, company has taken a series of measures that ensures that the most appropriate people are recruited in to the organization.

a) RECRUITMENT POLICY

The Company has been able to attract a team of dedicated professionals with appropriate expertise and experience, leaders who are passionate, eager to learn and succeed.

Recruitment based on merit by following well defined and systematic selection procedures eliminating discrimination, sustain motivated and quality work force through appropriate and fair performance evaluation to retain the best talent.

Various training programs, with internal and external experts are organized regularly for skill upgradation. The sincere efforts of the employees have resulted in major administrative expense savings.

b) PERFORMANCE APPRAISAL SYSTEM

A competency based performance appraisal system has been devised and implemented the same across the organization. The best performers get recognized and rewarded by the management with the objective of motivating them for further improved performance. Employees are promoted to higher positions on the basis of their performance, attitude and potential to motivate them for further improvement in their work.

c) PERSONNEL TRAINING

The company from time to time fosters a culture of training, people development and meritocracy to ensure that the maximum efficiencies are derived from its human capital. The newly recruited employees undergo a comprehensive induction program i.e. on-the-job training, up-skilling programs, including safety at workplace, stress management, conflict management, and teambuilding activities. The employees underwent both functional/technical and behavioral training that would eventually result in improved productivity. Safety training is given on regular basis to all employees including temporary employees.

d) LABOUR RELATIONS

On the labour front, during the year, there were no incidents of labour unrest or stoppage of work on account of labour issues and relationship with them continues to be cordial. To increase team spirit inter department tournaments are organized and various festivals are celebrated in the company.

STATUTORY COMPLIANCE

The Whole-time Directors and CFO makes a declaration in the Board Meetings from time to time regarding the compliance with the provisions of various statutes, after obtaining confirmation from all the units of the Company. The Company Secretary ensures compliance accordance to SEBI regulations and provisions of the Listing Agreement.

CORPORATE SOCIAL SERVICE

The company is committed to its corporate social responsibility and undertakes programs that are sustainable and relevant to local needs. The Company works for sustainable development by achieving excellence in its key functional areas including safety, business operations, process management, business results, climate change, carbon footprint reduction, energy and water management, medical aid, community development, customer promise and engagement, governance and compliance, human capital, and innovation under its CSR program.

The Company contributes to the development of its community near the plant at Karanj (Kim) Village as well as through employee volunteerism as a part of its Corporate Social Responsibility in the areas of education, training, health care and self-employment.

CAUTIONARY STATEMENT

Statement in the Management Discussion and Analysis (MDA) describing the companys objectives, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Several factors could make significant impact on the companys operation. These include geo political uncertainties affecting demand and supply and Government regulations, tax laws and other factors such as litigations and industrial relations.

Identified as having been approved by the Board

of Directors of Sumeet Industries Limited

 

Anil Kumar Jain

Company Secretary

 

Date : 05.08.2025

Place: Surat