Suncity Synthetics Ltd Management Discussions

For the financial year ended 31^st March 2026

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company operates in a business environment influenced by overall economic conditions, market demand, competitive pressures, regulatory developments and changes in operating costs. The performance of the Company is dependent upon its ability to effectively manage its operations, maintain business relationships, control costs and respond appropriately to changes in the business environment.

During the financial year under review, the Company continued its business operations while focusing on operational efficiency and prudent management of its resources. The Company remains committed to strengthening its operating performance and improving its financial position.

2. FINANCIAL PERFORMANCE

The financial performance of the Company for the financial year ended 31st March 2026, as compared with the previous financial year, is summarized below:

(Rs. in Lakhs)

Particulars	F.Y. 2025-26	F.Y. 2024-25
Revenue of Operations	75.09	116.93
Other Income	8.34	1.15
Total Expenses	118.84	165.54
Profit / (Loss) before Exceptional Item and Tax	(36.41)	(47.46)
Exceptional Item	40.06	(11.45)
Profit / (Loss) before Tax	3.65	(58.91)
Current Tax	-	-
Deferred Tax	-	3.00
Profit / (Loss) After Tax	3.65	(56.91)

Revenue from operations during FY 2025-26 stood at ^75.09 lakhs, as against ^116.93 lakhs in FY 202425, representing a decrease of approximately 35.78%.

The decline in operating revenue reflects lower business volumes during the year under review. The Company continues to evaluate opportunities for improving its operating performance and enhancing revenue generation.

Other Income

Other income increased substantially from ^1.15 lakhs in FY 2024-25 to ^8.34 lakhs in FY 2025-26. The increase contributed positively to the overall financial performance of the Company during the year.

Total Expenses

Total expenses decreased from ^165.54 lakhs in FY 2024-25 to ^118.84 lakhs in FY 2025-26, representing a reduction of approximately 28.59%.

The reduction in expenses reflects the Companys efforts towards cost management and rationalisation of expenditure. However, the level of expenses remained higher than the operating revenue during the year, resulting in a loss before exceptional item and tax.

Profit/(Loss) before Exceptional Item and Tax

The Company reported a loss before exceptional item and tax of ^36.41 lakhs during FY 2025-26 as compared to a loss of ^47.46 lakhs during FY 2024-25.

Thus, the loss before exceptional item and tax improved by approximately 23.29% over the previous year. The improvement was primarily supported by the reduction in total expenses and increase in other income, although the decline in operating revenue continued to affect the Companys operating performance.

Exceptional Item

During FY 2025-26, the Company recognised an exceptional gain of ^40.06 lakhs, as compared to an exceptional loss of ^11.45 lakhs in FY 2024-25.

The exceptional item had a significant positive impact on the Companys overall financial results and resulted in the Company reporting a profit before tax of ^3.65 lakhs for FY 2025-26.

Profit/(Loss) Before Tax

The Company reported a profit before tax of ^3.65 lakhs during FY 2025-26 as compared to a loss before tax of ^58.91 lakhs during FY 2024-25.

The improvement in the profit before tax was primarily attributable to the exceptional gain recognised during the year, together with lower operating expenses and higher other income.

Profit/(Loss) After Tax

The Company reported a profit after tax of ^3.65 lakhs for FY 2025-26, as against a loss after tax of ^56.91 lakhs in FY 2024-25.

The improvement in the bottom-line performance represents a significant change from the previous years results. The Company, however, recognises the need to improve its core operating performance and strengthen recurring revenue generation.

3. OPERATIONAL PERFORMANCE

During the year under review, the Company experienced a decline in revenue from operations. Despite the lower operating revenue, the Company succeeded in reducing its overall expenditure compared with the previous year.

The Companys loss before exceptional item and tax reduced from ^47.46 lakhs to ^36.41 lakhs. This indicates an improvement in the underlying cost structure, although the operating performance remained challenging.

The Company continues to focus on improving operational efficiency, controlling costs and exploring opportunities for sustainable improvement in business performance.

4. BUSINESS OUTLOOK

The Companys immediate focus is on strengthening its core operations, improving revenue generation and maintaining effective control over operating costs. The Company intends to adopt a cautious and disciplined approach towards its operations and financial resources.

Going forward, the Company will continue to assess business opportunities based on their commercial viability and potential contribution to sustainable growth. Management remains focused on improving operational efficiency and creating a stronger foundation for future performance.

5. RISKS AND CONCERNS

The Company is exposed to various risks inherent in its business and the economic environment in which it operates. These may include market risk, business and operational risks, liquidity risk, credit risk, regulatory risk and other external economic factors.

The Company continuously monitors such risks and takes appropriate measures, wherever considered necessary, to mitigate their potential impact. The management remains conscious of the importance of maintaining adequate financial discipline and exercising prudence in business decisions.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an internal control framework commensurate with the nature and size of its operations. The internal control systems are designed to safeguard the Companys assets, ensure proper accounting of transactions, maintain reliability of financial reporting and promote compliance with applicable laws and regulations.

The management periodically reviews the effectiveness of internal controls and takes corrective measures wherever required. The Company remains committed to maintaining appropriate internal controls and strengthening them in line with the growth and.requirements of its business.

7. FINANCIAL AND LIQUIDITY MANAGEMENT

The Company continues to exercise prudence in managing its financial resources and operating expenditure. The management monitors cash flows and working capital requirements on an ongoing basis to ensure that available resources are utilised efficiently.

The Company remains focused on improving its operating cash generation, managing working capital effectively and maintaining adequate liquidity to meet its business requirements.

8. HUMAN RESOURCES

Human resources remain an important element in the Companys ability to achieve its business objectives. The Company endeavours to maintain a professional and productive work environment and encourages its employees to contribute towards the achievement of organisational goals.

The Company believes that employee engagement, appropriate allocation of responsibilities and development of skills are important for improving operational effectiveness.

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, estimates or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied due to various factors, including changes in economic conditions, market conditions, business risks, regulatory requirements and other factors beyond the Companys control.

The Company assumes no responsibility for updating these forward-looking statements subsequent to the date of this report.

For and on behalf of
Suncity Synthetics Limited
Sd/-	Sd/-
Sumita Mishra	Ramesh Chandra Mishra
Managing Director	Director
DIN:00207928	DIN:00206671
Date: - 14.08.2026
Place: - Mumbai