Swashthik Plascon Ltd Management Discussions

Annexure - II

1. INTRODUCTION:

Our Company was originally incorporated as Private Limited Company in the name of "SWASHTHIK CAPS PRIVATE LIMITED" under the provisions of the Companies Act, 2013 vide Certificate of Incorporation dated May 05, 2011 bearing Corporate Identification Number U25209PY2011PLC002578 issued by the Assistant Registrar of Companies, Pondicherry. Subsequently, our Company was converted into a Public Limited Company pursuant to the special resolution passed by the shareholders at the Extra-Ordinary General Meeting of our Company held on June 22, 2023 and consequent upon conversion the name of our Company was change to SWASHTHIK PLASCON LIMITED vide a fresh certificate of incorporation dated July 13, 2023 bearing Corporate Identification Number U25209PY2011PLC002578 was issued by the Registrar of Companies, Pondicherry. Further the Company has issued share pursuant to Initial Public Offer (IPO) and listed on SME platform of BSE LTD on 05, December, 2023.

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. Development of software products aiming at various sectors to improve the depth of our engagement with the industry.

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 any organization, 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.

• Increasing investment in real assets (Capacity Expanding), Inflow of FDI (Foreign Direct Investment) across Industrial sector.

Threats:

As cybersecurity threats continue to evolve and become more sophisticated, enterprise IT must remain vigilant when it comes to protecting their data and networks. Further there are global and external factors, changes in Information Technology & Security Laws, tax laws, litigation and significant changes in the Global political and economic environment exert tremendous influence on the performance of the company. The Company has laid down procedures to inform Board Members about the risk assessment and minimization procedures.

5. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

To carry on the business of importers, exporters, manufacturers, dealers, sellers, buyers, or in any other manner or by any other mode or by any other commercial name in all kinds of plastic including PET, HDPE, LDPE, Granules, plastic polymers, Polystrene, PVC, Nylon synthetic rubber, packaging products, its recycling, plastic products, plastic raw materials, resins, goods and articles connected with the plastic manufacturing industry for all kinds of usages.

To carry on business of importers, exporters, manufacturers, agents and representatives and dealers in all kinds of plastic raw materials, products and its related machineries.

The Company has product wise performance as mentioned below:

I. Pet Bottles - Rs. 2872.74 Lakhs around 66.07% of total operating turnover

II. Pet Preforms - Rs. 1455.23 Lakhs around 33.46% of total operating turnover

III. Pilfer Proof Caps - 0.05 Lakhs around 0.00% of total operating turnover

IV. Trading Products - 20.00 Lakhs around 0.45% of total operating turnover

6. OUTLOOK:

The Continual growth in the in India sector 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 and market 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:

During the year under review, the initial authorized share capital of Rs 14,00,00,000 divided into 1,40,00,000 Equity Shares of Rs. 10 each was increased to Rs 18,00,00,000 divided into 1,80,00,000 Equity Shares of Rs 10 each pursuant to resolution of shareholders passed at the Extra-ordinary General Meeting held on June 22, 2023.

Further during the year under review, the Company has increased Paid-up Equity Share capital of Company as per details mentioned below:

The Company has, during the year under review, neither issued any Equity shares with differential voting rights nor any shares (including sweat equity shares) to its employees under any scheme.

Reserves and Surplus:

The Reserve and Surplus of Company on Standalone Basis is Rs. 4477.67 Lakhs as on period ended on 31st March, 2024.

The Reserve and Surplus of Company on Consolidated Basis is Rs. 4664.41 Lakhs as on period ended on 31st March, 2024.

Total Income:

The Company has earned total Income Rs. 4576.54 Lakhs on Standalone Basis as on period ended on 31st March, 2024.

The Company has earned total Income Rs. 13486.25 Lakhs on Consolidated Basis as on period ended on 31st March, 2024.

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 asset of your Company. The Company recognizes people as its most valuable asset and the Company has kept a sharp focus on Employee Engagement. The Companys Human Resources is commensurate with the size, nature and operations of the Company.

11. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE, INCLUDING:

12. 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. 2023-24 was 9% and for F.Y. 2022-23 was 14%. The reason for decreasing due to increase in net worth of Company is more than the net profit of Company during the financial year.

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 Companys 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.

DATE: 7th AUGUST, 2024