Vikas Lifecare Ltd Management Discussions.

Your Board of Directors is pleased to share the present Management Discussion and Analysis Report based on the business of the company i.e. Polymer & Chemical Business, FMCG Business and Lifecare and Pharmaceutical Business and the business performance under each of its strategic pillars along with the Financial Statements for the financial year ended March 31, 2021.

Current/Conventional Business:

1. Polymer & Chemical Business: Your Company is in the business of trading and manufacturing of polymer compound like PVC compounds, EVA, PP, PE, BASE polymers, additive and chemicals (meant for plastic processing). Also your company does the up-cycling of polymer compounds. For the polymer compound manufacturing your company has the Hi-Tech R&D lab to check online and final product and has expertise in designing compounds in more than 200 color in different physical specification based on the customer specification.

A) Polymer compound:

From the Year 2019, our company started the manufacturing of Polymer compounds such as PE compound, PVC Compound, V Blend SOE compound, PP granules, Thermoplastic Rubber (TPR) compounds. Thermoplastic Rubber (TPR) Styrene-Butadiene-Styrene (SBS) copolymers are a versatile family of compounds which combine a high strength, a comprehensive range of hardness and a low viscosity for the thermoplastic melt processing. The wear resistance and physical resistance are variable (depending on composition). Mostly used for common footwear. TPR may vary according to the type of process used, presenting itself in the form of compact TPR or TPR expanded. Our compounding unit is headed by team of experienced persons with over 37 years of experience in the field of polymers and around 25 years in the compounding of Thermoplastic Elastomers.

B) Recycled Compound:

As per Extended Producer Responsibility (EPR), the plastic waste shall need to be channelized to register waste recyclers and recycling of plastic shall comply with the prescribed Indian Standard (IS 14534:1998). Companies using Plastic Raw Material will ultimately responsible for collection, segregation, channelizing and recycling of the plastic waste materials according to their usage volume. Vikas Lifecare Limited (VLL) processing plans & activities have been designed keeping in focus on existing & upcoming laws for EPR as per MoEF for plastic waste management (recycling for plastics). Thats an exorbitant opportunity for your company which has a long experience & the required intricate technical understanding for Re Cycling & up cycling these plastic waste materials, along with complimenting the need of the plastic processors to fulfill their EPR Obligations. Your company is pioneer in plastic waste recycling, is scaling up its recycling strength to help build a circular economy, recycle post-consumer waste directly into moldable granules and subsequentlygive a second life to plastics.

C) Food grade plastic piping system for drinking water:

After the overwhelming response received from the Agri & Food Products business, Vikas Lifecare Limited is ventured into the arena of food grade piping systems for drinking water under the Jal Jeevan Mission. Jal Jeevan Mission initiated by Department of Drinking Water & Sanitation, Ministry of Jal Shakti, Government of India. Your company possesses a rich experience in sourcing and supplies of food grade plastic raw materials for food & drinking water contact applications of plastic piping systems.

D) Chemical Business:

To expands its operations in the organic chemicals business. Vikas Lifecare Limited completed of registration process and granted the stage -I clearance from SIPB, Ethanol Distillery will be setup under the Ethanol Production Promotion Policy 2021, of Bihar State Government, which supplements the "National Biofuels Policy 2018" of the Government of India for setting up "Ethanol" Manufacturing Unit in Bihar with initial installed capacity of 60KL per-day.

2. FMCG Business: Despite the challenging conditions prevailing during the year, your Company is ventured in to FMCG business segment. The FMCG Businesses comprising Branded Packaged Foods, Personal Care Products, Agri commodities have been growing at an impressive pace over the past several years and your company is doing best in trading of raw and finished cashew nuts. The Indian FMCG market is at an inflection point and winning in the market place will be an outcome of capitalising on the trends as well as building efficiencies in business operations. Your Company seeks to significantly scale up the FMCG strengths viz. deep consumer insight, Agricommodity sourcing expertise.

A) Food protection and Personal Hygiene:

As a long-term business strategy, forayed into Consumer / FMCG businesses with some strategic products, acquisitions, tie-ups and intends to establish / acquire business in this segment as well as expand its footprint in the country and beyond. Company is ventured in "Food protection and Personal Hygiene" segment of FMCG industry for aluminum foil and tissue paper products.

B) Agro Commodities:

• Our Company has also started the trading of raw and finished cashew nuts to pursue one of its strategies of venturing into FMCG market. Company has also ventured into Agri Products business with diverse activities including Food & Crop Protection, Preservation & Storage, Crop Research, Crop Production Company is working towards gaining a foothold in the Agri Business with starting operations in the various facilities required for this business activities as soon as possible. For this company has started procuring land at various strategic locations and have so far purchased approx 36.41 Acre land since June2021.

• Your Company is empanelled with National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) as exporter, Ministry of Agriculture, Government of India, for expanding the Agro Products business like Food Grains, Pulses, Spices, Oilseeds, Bio-Fertilizers and Miscellaneous other Products.

3. Lifecare & Pharmaceutical Business: Rising per capita income and changing lifestyles and food preferences, among other demographic and epidemiological trends, are leading to a rapid rise in the incidence of NonCommunicable Diseases (NCDs) in pharma markets. Pharmaceutical spending in these markets will be focused on overall growth through control and prevention of NCDs, especially cardiovascular diseases, cancer and diabetes. To cope with rising demand, driven largely by an expanding geriatric population, governments of most emerging economies will continue to seek expansion of their national health insurance schemes, boosting further spending on healthcare.

To get benefited from different schemes like PLI scheme, API Scheme by the government your Company has interest toward the healthcare and pharma business for this they have acquired 22% stakes in Advik Laboratories Ltd which is Pharmaceutical Company manufactures pharma products to the domestic and export market. It is the manufacture of API on contract manufacturing basis to different pharma companies like Dr. Reddy Laboratories Limited, Cadila Pharmaceuticals Limited, Abbott India Limited, Torrent Pharmaceuticals Limited etc.

Global Industry Review:

1. Polymer & Chemical Business:

• The global plastic compounding market size was valued at USD 61.4 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.5% over the forecast period. Increasing substitution for glass, metals, wood, natural rubber, and man-made materials, such as concrete, is anticipated to drive the growth.

• The demand for plastic is rising owing to its various industrial applications due to benefits, such as easy molding and the ability to form the desired shape. Plastic compounding involves an elaborate process with various stages, such as determining additives ratio, high-speed mixing via twin-screw extruders, melt mixing, and cooling, before final pellet cutting and packaging. There is a diverse range of products available, depending on the additives and fillers integrated while processing the polymers.

• For food grade piping system the global HDPE pipes market was valued at $17,907 million in 2017 and is projected to reach $26,518 million by 2025, growing at a CAGR of 5% from 2018 to 2025.

2. FMCG Business:

• The global FMCG market is projected to reach $15,361.8 billion by 2025, registering a CAGR of 5.4% from 2018 to 2025. Fast moving consumer goods (FMCG) also known as consumer packaged goods are products that can be bought at a low cost. These products are consumed on a small scale and are generally available in a variety of outlets including grocery store, supermarket, and warehouses.

• The global aluminum foil market size was valued at USD 23.1 billion in 2018 and is expected to advance at a CAGR of 5.3% from 2019 to 2025. Increasing demand from food and pharmaceutical packaging sectors is expected to significantly drive the market over the coming years.

• Packaging industry dominated the market with a revenue share of 65.4% in 2018. The product is extensively used in packaging because of its ability to protect items packaged inside against oxygen, light, bacteria, and moisture. It is primarily used in food & beverage, pharmaceutical, tobacco, and cosmetics packaging applications.

• For Agri commodities, the global agriculture market is expected to grow from $9602.79 billion in 2020 to $10181.92 billion in 2021 at a compound annual growth rate (CAGR) of 6%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $13133.95 billion in 2025 at a CAGR of 7%.

3. Lifecare & Pharmaceutical:

• The global Pharma and Health Care market size is projected to reach US$ 1576430 million by 2027, from US$ 1198960 million in 2020, at a CAGR of 4.0% during 2021-2027.

• The pharmaceutical industry makes major contributions to the prosperity of the world economy. It is a robust sector that has been one of the pillars of industrialized economies and is increasingly recognized as an important industry in the developing world as well.

Key Market Movements for different business:

1. Polymer & Chemical Business:

• Plastic compounding market is segmented based on polymer type, end use, and region. Depending on polymer type, the market is classified into polypropylene (PP), polyethylene (PE), polyvinyl chloride (PVC), polystyrene (PS) and expanded polystyrene (EPS), polyethylene terephthalate (PET), polyurethane (PU), acrylonitrile butadiene styrene (ABS), and other polymers. As per end use, it is segregated into automotive, building & construction, packaging, electrical & electronics, medical etc.

• The demand for plastic is rising owing to its various industrial applications due to benefits, such as easy molding and the ability to form the desired shape. Plastic compounding involves an elaborate process with various stages, such as determining additives ratio, high-speed mixing via twin-screw extruders, melt mixing, and cooling, before final pellet cutting and packaging.

• Based on application, the water supply pipe segment is estimated to grow at the highest CAGR during the forecast period. The growth of the segment is attributed to the rise in demand for water infrastructure owing to growth in population.

• Water piping system initiated by Government under Jal Jeevan Mission for supply of water to every individual. For this project requirement of HDPE pipes require in enormous quantity.

• Ethanol is gaining support for application as fuel, owing to its renewable source and eco-friendliness with lower emissions. Ethanol has a higher octane number than gasoline, providing premium blending properties. The ethyl alcohol (ethanol) market size is projected to register a CAGR of over 5% during the forecast period (2021-2026).

• According to the Ministry of Petroleum and Natural Gas, India, the country has proponed the target of achieving 20% ethanol-blended fuel by five years and now to complete the target by 2025. The country needs 4 billion liters of ethanol for 10% ethanol blend, and for 20% ethanol blend, the country needs 1,000 crore liters of ethanol, which will cost approximately INR 65,000 crores.

2. FMCG Business:

• Based on product type FMCG is classified as personal care (skincare, cosmetics, hair care, others), healthcare care (over-the-counter drugs, vitamins & dietary supplements, oral care, feminine care, others), and home care. In 2019, based on type, the healthcare segment accounted for 4.3% share of the global FMCG market and is expected to growth at the highest CAGR of 8.7%.

• Personal care segment has occupied around 5% share of the market share and is expected to growth at the highest CAGR of 6.2%.

• Rise in rural consumption will drive the FMCG market. It contributes around 36% to the overall FMCG spending. In the FY21 in rural India, FMCG witnessed a double-digit growth recovery of 10.6% due to various government initiatives (such as packaged staples and hygiene categories); high agricultural produce, and reverse migration.

• India is among the 15 leading exporters of agricultural products in the world. Agricultural export from India reached US$ 38.54 billion in FY19 and US$ 35.09 billion in FY20. The organic food segment in India is expected to grow at a CAGR of 10% during 2015-25 and is estimated to reach Rs. 75,000 crore (US$ 10.73 billion) by 2025 from Rs. 2,700 crore (US$ 386.32 million) in 2015.

• The government has set a target to buy 42.74 million tonnes from the central pool in FY21; this is 10% more than the quantity purchased in FY20. For FY22, the government has set a record target for farmers to raise food grain production by 2% with 307.31 million tonnes of food grains.

3. Lifecare & Pharmaceutical:

• High economic growth with increasing penetration of health insurance to push expenditure on healthcare and medicine in India. Medicine spending in India is projected to grow 9-12% over the next five years, leading India to become one of the top 10 countries in terms of medicine spending.

• Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers, which are on the rise.

• In June 2021 Finance Minister Ms. Nirmala Sitharaman announced an additional outlay of Rs. US $ 26578.3 Million that will be utilized over five year for the pharmaceutical PLI schemes such as Active Pharmaceutical Ingredient (API), Drug intermediate and starting materials.

Indian Industry Overview:

1. Polymer & Chemical Business:

• The Indian plastics industry made a promising beginning in 1957 with the production of polystyrene. Thereafter, significant progress has been made, and the industry has grown and diversified rapidly. The industry spans the country and hosts more than 2,000 exporters. It employs about 4 million people and comprises more than 30,000 processing units, 85-90% of which are small and medium-sized enterprises.

• In FY20, plastic and linoleum export from India stood at US$ 7.55 billion.

• During April 2019 to January 2020, plastic export stood at US$ 7.045 billion with the highest contribution from plastic raw material at US$ 2.91 billion, plastic sheets, films, and plates at US$ 1.22 billion and packaging materials at US$ 722.47 million.

• India exported plastics worth US$ 813 million in October 2020, and the export during April 2020 to October 2020 was US$ 5.58 billion.

• The total plastic and linoleum export during April 2020 to November 2020 was US$ 4.90 billion and for the month of November 2020, it was US$ 507.06 million.

• The Indian plastics industry produces and export a wide range of raw materials, plastic-molded extruded goods, polyester films, molded/ soft luggage items, writing instruments, plastic woven sacks and bags, polyvinyl chloride (PVC), leather cloth and sheeting, packaging, consumer goods, sanitary fittings, electrical accessories, laboratory/ medical surgical ware, tarpaulins, laminates, fishnets, travel ware, and others.

• Owing to the increasing application of HDPE pipes in various end use industries, the market for HDPE pipe is expected to witness substantial growth. The growth in demand from water irrigation systems in agricultural industry is expected to drive the growth of the HDPE pipe market. Rapid urbanization is anticipated to increase the demand for water supply, leading to increase in requirement of HDPE pipes. Furthermore, growth in sewage disposal infrastructure fuels the demand for HDPE pipes. However, volatile raw material prices attributed to fluctuation in prices of crude oil is expected to hamper the market growth. Conversely, innovation and technological advancements in PE pipe provide future growth opportunities to the HDPE pipes market in India.

• India ethanol market is projected to grow from $ 2.50 billion in 2018 to $ 7.38 billion by 2024, exhibiting a CAGR of 14.50% during 2019-2024, on the back of increasing ethanol use in applications such as fuel additives and beverages. Ethanol is a prominent alcoholic beverage, mainly found in beer, cider, wine, spirits and ale. Indian government is trying to reduce its dependence on imported crude oil and incentivizing Indian sugar manufacturers to produce ethanol for Oil Marketing Companies (OMCs). It is expected that ethanol production will increase by three to five folds in the future in order to meet the demand for its 20% Fuel Blending Program (FBP).

2. FMCG Business:

• Fast-moving consumer goods (FMCG) sector is Indias fourth largest sector with household and personal care accounting for 50% of FMCG sales in India. Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector. The urban segment (accounts for a revenue share of around 55%) is the largest contributor to the overall revenue generated by the FMCG sector in India. However, in the last few years, the FMCG market has grown at a faster pace in rural India compared to urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50% of the total rural spending.

• The Government has allowed 100% Foreign Direct Investment (FDI) in food processing and single-brand retail and 51% in multi-brand retail. This would bolster employment, supply chain and high visibility for FMCG brands across organized retail markets thereby bolstering consumer spending and encouraging more product launches. The sector witnessed healthy FDI inflows of US$ 18.03 billion from April 2000 to December 2020.

• Agriculture is the primary source of livelihood for about 58% of Indias population. Gross Value Added by agriculture, forestry, and fishing was estimated at Rs. 19.48 lakh crore (US$ 276.37 billion) in FY20. Share of agriculture and allied sectors in gross value added (GVA) of India at current prices stood at 17.8 % in FY20. Consumer spending in India will return to growth in 2021 post the pandemic-led contraction, expanding by as much as 6.6%.

• The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year due to its immense potential for value addition, particularly within the food processing industry. Indian food and grocery market is the worlds sixth largest, with retail contributing 70% of the sales. The Indian food processing industry accounts for 32% of the countrys total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

3. Lifecare & Pharmaceutical:

• India is the largest provider of generic drugs globally. Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK.

• Globally, India ranks 3rd in terms of pharmaceutical production by volume and 14th by value. The domestic pharmaceutical industry includes a network of 3,000 drug companies and ~10,500 manufacturing units.

• India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers with a potential to steer the industry ahead to greater heights. Presently, over 80% of the antiretroviral drugs used globally are supplied by Indian pharmaceutical firms.

Company Overview:

Vikas Lifecare Limited (VLL) established in the year 1995, is principally engaged in the business of recycling plastic waste and trading of polymer compounds, manufacturing of polymers compounds. Vikas Lifecare limited is polymer additive related Chemicals Trading House, based in the capital city, it has rich domain experience and in-depth knowledge of International and Local Polymers Market.

Having a more than 2-decade strong operating history in the manufacturing of specialty chemicals for plastics industry, arms VLL with in-depth understanding of the product designing and market trends. The Company is having rich domain experience and in-depth knowledge of International and Local Polymer markets. We at VLL combine management expertise and best business practices - with high ethical standards.

We have set an industry benchmark in service quality and value creation for our customers who have patronized us with their trust and loyalty. Vikas Lifecare limited is certified under ISO 9001:2015, for trading and manufacturing of PVC compounds, EVA, PP, PE, BASE polymers, additive and chemicals( meant for plastic processing). Our manufacturing facility is located at G-83, Vigyan Nagar, RIICO Industrial area, Shahjahanpur, Rajasthan, Alwar, Rajasthan-301706.

Your Company is a del-credre agent of ONGC Petro Additions Limited.

Recently, as a long-term business strategy, forayed into Consumer / FMCG businesses with some strategic products, acquisitions, tie-ups and intends to establish / acquire business in this segment as well as expand its footprint in the country and beyond.

Your Company has built capabilities to produce specifically engineered (ready-to-use / designed / modified) materials for plastic processors, for a wide spectrum of plastic products and application. Thats an exorbitant opportunity for VLL which has a long experience & the required intricate technical understanding for plastic materials. VLL is the technically driven company with the hands on sophisticated processing units inducing the quality which is acceptable in Europe and U.S.

Segment Wise /Product Wise Performance

The Company is under four business segments which is trading(Base polymers, additives and chemicals meant for plastic processing , commodity compounds( Manufacturing up-cycled polymer compounds like EVA, PVC, PP,PE etc.), Environment protection( Recycling and up-cycling of plastic waste to fulfill EPR) and FMCG & Healthcare.

Current Business Segments

Our business is divided into different major segments which include recycling materials, trading and manufacturing of Polymer Compounds, FMCG segment, Healthcare & Pharmaceutical, Agri Product, Food grade piping system for Jal Jeevan Mission.

Recycling Material Division

During the period under review, your Company completed the acquisition of Recycled and Trading Compounds Division of group concern Vikas Ecotech Limited through demerger, thus shifting the entire manufacturing of recycled material in the Company and hence putting greater emphasis on taking this production process to greater heights. The products of your Company find application across diversified segments of including automotive, packaging, sheathing and in textile industry as well.

Thus, the Company is expected to grow its business exponentially in upcoming future years as the demand for such products will be higher than ever, thus creating more demand for the Company.

With growing awareness of environment protection, initiatives of governments worldwide and continuous efforts on research and development in field of recycling materials, the plastics recycling industry is booming, spread across an informal amalgam of street pickers, small start-ups and non- governmental entities and is focused on the secondary use economy.

Trading of Polymer Compounds

Your Company is a polymers and polymer additive related Chemicals Trading House, based in the capital city, it has rich domain experience and in-depth knowledge of International and Local Polymers Market.

Your Company is a del-credre agent of ONGC Petro Additions Limited and its trading segment will growcorrespondingly with the expansion and growth of the ONGC.

• Inter-Linkage of OPaL Plans with Companys Growth

OPaL is poised to become a key player in the growth of the polymer industry, because it has all the essential ingredients to become one of the best performing operators in the global petrochemical industry. OPaL has the combine advantages of adequate indigenous feedstock supplies, talented manpower, ready market and above all, a better and brighter domestic market, Vikas Lifecare Limited has been appointed by Opal as its del credre agent for supplying the plastic and raw rubber polymers on regular basis.

The demand for polymers in India is huge and is expected to further rise with the growth in GDP and thus will lead to growth in the supply of polymers by your Company to Opal.

Polymers are used extensively and have replaced traditional materials like Metal, Wood, Paper, and Glass in day- to-day life style. Economy of any region and per capita income & spending power directly impact the polymer consumption. As, global per capita consumption of polymer is 26 Kg per person per year, India is lagging much behind in terms of per capita having just 5 kg per person per year.

It is forecasted that the demand will be increasing in India at an annual rate of 12.5%. Growing Indian economy will push the Polymer consumption in near future and will be the major market to tap, thus your Company is all energized to meet the increasing demand of polymers in India and cater to economy at large through OPaL. Polymer Compounds:

Vikas Lifecare limited was engaged in the manufacturing of different polymer compounds like PE compound, PVC compounds, V blend SOE compound, Polypropylene compounds and also started manufacturing of Thermo Plastic Rubber (TPR) compound since FY 2019-2020 onwards.

FMCG and Retail Sector:

• Your Company is venturing into a new business segment "Food protection and Personal Hygiene" segment of FMCG industry" with the total investment of approx Rs. 100 crore in 2 years and has signed a definite agreement for acquisition of a portfolio or trademarks, comprising of popular and well established national brands such as S.R. Foils.

• With the acquisition of the prestigious Brand portfolio,, the company is initiating the process to identify and acquire an existing plant for manufacturing these items in the interim, alternate arrangements are being made to produce these products through third party contract manufacturing.

• As the demand of aluminum foil and tissue paper products in India has been growing at fast pace and is expected to continue to grow in view of present per capita consumption is quiet low. With the changing lifestyle, urbanization and increasing requirement of food packaging would be the key factors for sustaining the growing demand.

• During December 2020, Our Company initiated the trading of raw and finished cashew nuts to pursue one of its strategies of venturing into FMCG market.

• The company focused energies to scale up operations in the recently started FMCG business and the efforts have resulted in rich opportunities of dealing in variety of premium quality dry fruits, nuts and other premium consumer products as well.

• Your Company received an overwhelming response in this business segment and since nascent start has completed the sales of first Rs. 102 Million in this business segment with an additional 136 Million worth of materials in transit as on date.

• Company has identified two key personnel who have requisite qualification, domain knowledge, rich experience and who have established track record of successfully delivering the results, and decided to appoint them as COO and CTO of companys recently started Consumer Products/FMCG Division. In this business segment, it was noted that despite the outburst of second wave of Covid- 19 pandemic, lockdowns and other restrictions imposed to curb its spread, the division has registered sales of Rs 150 Million in first quarter of the current fiscal year; the business segment is foreseeing exceeding its initial target of Rs. 500 Million for FY21-22.

Tapping Into New Business Ventures

> Tapping into Pharmaceutical & Lifecare business:

• Vikas Lifecare acquired 22.04% stake in Advik Laboratories Ltd., it is a BSE listed pharmaceuticals company having its Registered Office and Manufacturing Unit in Delhi NCR.

• Advik Laboratories Ltd. has an established infrastructure facility at Industrial Area, Shona, Haryana to manufacture quality pharmaceuticals, both for domestic and export markets. In the domestic market and has been supplying pharma products to large Indian Pharma Companies on contract manufacturing basis, like Dr. Reddy Laboratories Limited, Cadila Pharmaceuticals Limited, Abbott India Limited, Torrent Pharmaceuticals Limited etc.

• The company has also been exporting its products, mainly to countries in South East Asia and the African continent. Advik has a team of PhD and Postgraduate scientists and Quality control teams that ensure their R&D lab innovates novel formulations suitable for the changing requirements of patients.

• The Company has paid the complete amount of Rs 50 Million towards settling the entire Bank Outstanding of Advik Laboratories Limited for making it an absolute debt-free entity here onwards. As resolved Vikas Lifecare is pursuing the further process and will induce another Rs. 20 Million initially to help Advik start the business operations, which will be done as soon as Advik receives the possession and other requisite permissions to start the operations.

> Acquisition of a start-up "Green life Agritech" (GLA):

• Vikas Lifecare Limited Finalized the acquisition of Greenlife Agritech, GLA is engaged in Importation, Propagation, Establishment and Management of Medicinal Plants, Ornamental Plants, Ferns, Sansevieria, Petra Croton, Aloe Vera, Bonsai, Areca, Palm, Peperomia, Oxy Cardiumand Fruit and many more of elite and niche varieties.

• GLA is currently operating on Seven Acres of State of The Art - Green House enabled nursery at Village Manouli, Sonipat Haryana. The Firm has IFFCO, Ferns N Petals, Nursery Live, as some of its customers and currently employs team of more than 10 Personnel and with sales panned across the regions of India.

> Tapping into Food grade plastic piping system for drinking water:

• After the overwhelming response received from the Agri & Food Products business, Your Company has ventured into the arena of food grade piping systems for drinking water under the flagship of Jal Jeevan Mission.

• While the Company has been exploring various opportunities embedded in the Consumer products Segment, having been closely associated as a supplier to a wide range of food grade plastic processors being an established supplier of niche and futuristic raw materials for non-toxic and food grade plastic raw materials, the Company has been exploring many projects and products in food contact safe plastic products creating an amazing synergy between Companys role as an established source of raw materials and the segment producing finished consumer products, including food grade piping systems for irrigation and domestic drinking water applications.

• Drinking water on one hand is a basic necessity for human population, lndia is striving towards providing safe drinking water at every doorstep to its vast population, on the other hand safe conveying systems for drinking water is an eminent requirement to meet the goal, which requires food grade conveying system for this drinking water.

• The Company possesses a rich experience in sourcing and supplies of food grade plastic raw materials for food & drinking water contact applications of plastic piping systems, on one hand the efficient sourcing of appropriate raw materials, and as such the Company will get benefitted from an enviable grip on commercial and technical aspects involved as it operates the business with the final products and at the outset achieved orders for food grade plastic piping system for drinking water valued at INR 500 Million for the ongoing Jal Jeevan Mission initiated by Department of Drinking Water & Sanitation, Ministry of Jal Shakti, Government of lndia. This order is to be completed in the next couple of quarters.

> Tapping into Ethanol Manufacturing Project

• Setting up "Ethanol" Manufacturing Unit in strategic location in Bihar with initial installed capacity of 60KL per-day, to expand its operations in the organic chemicals business under the Ethanol Production Promotion Policy 2021, of Bihar State Government, which supplements the "National Biofuels Policy 2018" of the Government of lndia.

• National Biofuels Policy 2018

India has a long-standing Ethanol blending program (to the conventional fossil fuels - Petrol and Diesel). The "National Biofuels Policy, 2018" mandates to blend 5% Ethanol to Diesel and up to 20% Ethanol in Petrol by 2030.

Around 2 billion litres of ethanol is currently consumed across India and in several union territories, where the program has been implemented on ground by the oil marketing companies (OMCs) with 3,400 outlets in seven states offer B5 diesel.

• Ethanol Production Promotion Policy 2021

In order to encourage sustainable and alternate fuels and also to cut Indias dependence on fossil fuels the state of Bihar announced "Ethanol Production Promotion Policy 2021" aims to achieve an overall growth and development of Green Field Ethanol Manufacturing Industries in the State.

The Ethanol Production Promotion Policy of Government of Bihar, Department of Industries is specifically devised towards promoting, encouraging, and supporting Ethanol Production units. The policy by way of offering multi facet support like Subsidies on Land Acquisition, Capital Investment, Finance Facility, Interest Subvention, Special Tax Rates along with Tax Rebates and Refunds.

Ethanol is being looked at as a major contributor towards the Fossil Fuel Replacement, reducing Indias dependence on Imports and strengthening the Economy through Forex Savings and Generating Business Opportunity and Employment in the projects established to produce Alternate Fuels.

Vikas Lifecare Limited has been granted the Stage-1 Clearance by the office of Director of lndustries, State lnvestment Promotion Board, Government of Bihar, in terms of the Bihar lndustriaI Promotion Rules, furthering the process of establishment of the ethanol project.

> Tapping into Agri Products Business:

Company has ventured into Agri Products business with varied activities including Food & Crop Protection, Preservation & Storage, Crop Research, Crop Production, via developing and using latest techniques and facilities like Green Houses, Glass Structures, Micro Irrigation, and Hydroponics Etc.

Furthering in the direction in order to establish the proposed facilities for the various planned activities including related research work, the company has started procuring land at various strategic locations and have so far purchased approx. 36.41 Acre land since June2021.

S. No. Location Size Value
1. Manoli, Sonipat, Haryana. 10.25 Acres Rs. 123 Million
2. Village Bajitpur Thakran, Delhi 4.16 Acres Rs. 150 Million
3. Kothputli, Rajasthan. 15.00 Acres Rs. 150 Million
4. Sonipat, Haryana. 7.00 Acres Rs. 21 Million
TOTAL 36.41 Acres Rs. 444 Million

Company is working towards gaining a foothold in the Agri Business with starting operations in the various facilities required for this business activities as soon as possible, we are right on schedule as mandated by the management and though the process involved is long, we will soon have this business segment contributing significantly to the key financials.

> Proposal to acquire M/s Hydrolina Biotech Private Limited (HBT):

Your company is in the process to acquire Hydrolina Biotech Private Limited; this acquisition will be a key catalyst for Lifecare and pharmaceutical business segment.

• Hydrolina Biotech is engaged in nutraceuticals-derived from natural resources and started manufacturing and exporting "Vitalinaa" - Spirulina dried Powder, Tablets & Capsules, and sensing the huge opportunity in "Lycopene" later decided to enter into it, initiated R&D, for extraction of lycopene for commercial purpose.

• HBT is approved and financially supported by the Department of Biotechnology (DBT) and Technology Development Board (TDB), Ministry of Science &Technology, Govt. of India, the Company has its state- of-the-Art R&D facility, duly recognized by DSIR (Department of Scientific & Industrial Research) under Ministry of Science & Technology, New Delhi, Govt of India and its manufacturing plant in Tamilnadu. Its lycopene manufacturing unit is in full ready status, with all necessary approvals, as such production can be commenced immediately to tap the demand lycopene across the globe which is growing at rapid pace.

Opportunities for sustainable growth:

• Increasing demand for the polymers and increased measures for sustainability by thegovernment

• Relaxation in laws by the regulators and subsidies available on recycling materials by policymakers

• Increased opportunities through "Make in India" initiative by the Central Government.

• Wider audience and global use of the FMCG products and fast growth of the industry

• The Company is optimistic to exploit the opportunities available in the markets by harnessing its potential ad strengths.

• Continuing focus on organic growth

• Eyeing to create a meaningful presence outside of India

• Pursuing added value opportunities in various industries.

Impact of COVID-19

The emergence of COVID-19, which is declared a pandemic by the World Health Organization, is having a noticeable impact on global economic growth. According to International Monetary Fund, the global GDP is expected to decline by 0.3% in 2020. According to World Trade Organization (WTO), global trade volumes are projected to decline between 13% and 32% in 2020 as a result of the economic impact of COVID-19. The pandemic is affecting operations of various industries such as automotive, oil and gas, construction, aerospace, and others, as most of countries have issued "stay at home guidance". Moreover, it is expected that the outbreak of COVID-19 will be seen in the whole year of 2020, and a few months in 2021. As, polymer products are extensively used in these industries, the declining operations of these industries is directly affecting Polymers Market growth.

The pandemic (COVID-19) is an unprecedented global crisis that, by many calculations will have a deep and devastating economic and social impact along with taking a toll on human lives. COVID-19, the pandemic has impacted the entire global economy and the plastic and rubber polymers industry is no exception. COVID-19 hits the economy where it hurts: consumer confidence, which slows downstream demand in many segments. Polymer demand is impacted in the short, medium, and long term. The intensity of the effect differs according to the market segments. A negative demand impact is expected tocontinue into 2021. This crisis has caused deep destruction of personal wealth and economic uncertainty, consumers have also reduce discretionary spending on leisure, entertainment, travel and tourism, and eating out, which is impacting and will continue to impact related plastics consumption. Apart from these areas of the economy, major sectors including automotive and white goods will also face tremendous headwinds.

The Impact on the Company

The Companys manufacturing facilities remained closed from March 22, 2020, due to lockdown, which led to a total shutting down of the recycling business, Compounding and the trading business. The Company after obtaining necessary approvals from regulators and authorities resumed few of its operations at its plant situated at G- 83, Vigyan Nagar, RIICO Industrial Area, Shahjahanpur, Alwar, Rajasthan - 301706 w.e.f. May 21, 2020, however, the Company has been struggling to grab the pace in terms of its operations and performance post the opening of operational plants.

As the business situation is very dynamic, the Company closely monitored it and try to normalize by the end of 3rd quarter. In view of lock down previously imposed, the profitability during 1st quarter (April to June) has got adversely impacted, as crashing of raw material price lead to inventory loss, the labour was not available for processing and the demand of polymers from the principal was negligible during the initial stage of resuming the work at factory.

The Company has been trying to take utmost care of its staff and work force like sanitization of premises, social distancing, mandatory mask wearing, and thermal check at the gate, maintaining proper hygiene etc. Supply chain including logistics is being monitored to ensure availability and dispatch of stocks. We have taken cash flow, capital expenditure and overhead control measures to smoothly manage our operations.

Financial Performance

The financials of the Company as on 31st March, 2021 in comparison with the previous year figures along withthe key financial indicators are discussed as under:

Net worth

The Companys net worth viz. paid up share capital, general reserves and retained earnings stood at Rs.66.67 Crore as against the previous year where it stood at Rs. 53.52 Crore.

Borrowings

The Companys borrowings aggregated to Rs. 25.68 Crore comprising of secured borrowings from banks and financial institutes of Rs. 3.47 Crore and unsecured borrowings in form of inter-corporate loans/ advancesand loans from related parties of Rs. 12.14 Crore in comparison to the previous year figures being 40.21 Crore.

The total debt - equity ratio of the Company as on 31st March, 2021 was 0.62:1.

Trade Receivables & Trade Payables

Trade receivables at the end of financial year was Rs. 71.26 Crore and trade payables aggregated to Rs.37.66 Crore as against the previous year where Trade receivables and trade payables stood at 176.22 and 150.63 Crore respectively.

Current Assets & Current Liabilities

The Current Assets of the Company stood at Rs. 93.27 Crore whereas the current liabilities aggregated to Rs. 65.93 Crore as against the previous year where the Current Assets and Current Liabilities were 168.09 Crore and 190.51 Crore respectively. The Current Ratio of the Company as at 31st March, 2021 was 1.41:1 as against 0.88:1 in the previous year.

During the fiscal 2021, your Company made outstanding number of sales of its products on credit basis, thus reducing the Current Ratio of the Company at the same time making an increase in its sales during the year under review.

Earnings per Share

The basic and diluted Earnings per Share (EPS) as at the end of financial year was 0.053.

Research & Development

Trading and carrying out recycling process in the chemical industry, as vast as the chemical industry is spread, the greater is the need to continuously work on the Research and Development aspect of the sector. The Company is well aware of the only improvisation and the product quality is the vital for the growth and sustainability of the Company.

R&D is one of the driving forces for expansion in the company. Research and development is one of our key strengths and is integral to our growth. We continue to build on our capabilities and competencies in the field of chemistry. Our in-depth expertise in process research, process development and analytical references enables us to provide integrated solutions to our global customers.

Environmental Health and Safety

Chemicals have become an indispensable part of human life, sustaining activities and development, preventing and controlling many diseases, and increasing agricultural productivity. Despite their benefits, chemicals may, especially when misused, cause adverse effects on human health and environmental integrity. Widespread application of chemicals throughout the world increases the potential of adverse effects.

Growth of chemical industries, both in developing and in developed countries, is predicted to increase. In this context, it is recognized that the assessment and management of risks from exposure to chemicals is among the highest priorities in pursuing the principles of sustainable development.

We are subjected to extensive environmental law and regulations relating to the prevention and control for water and air pollution, environmental protection and hazardous waste management in relation to our manufacturing facility. Our company has obtained the necessary environment related approvals in relation to our manufacturing facility. We aim to comply applicable health and safety regulations and other requirements in our operation and comply with legislative requirements, requirements for our licenses, approvals, various certifications and ensuring the safety of our employees and the people working at our facility or under our management

Risks, Concerns, Internal Control Systems and their Adequacy

The major risk that concerns the Company is its business risk. The Company is subjected to a high business riskin terms of its high dependability on other Industries for demand of its products carrying the nature of raw materials. The Company has a risk management and mitigation plan. Periodic checks are carried out on all systems and processes as part of internal audit. The Companys internal control systems are commensurate with the natureof its business and the size and complexity of its operations. The Statutory Auditors also evaluate the efficacy and adequacy of internal control systems including controls with respect to the financial statements, its compliance with operating systems, accounting procedures and policies in the Company. Corrective actions are undertaken basis findings of audits.

Human Resources

Human Resource Capital is the most valuable asset for any organization. The Company places the utmost importance on maintaining cordial employer-employee relations both at its administrative offices and plant locations. The Company has developed a system to reward adequately and recognize employee contribution towards its growth. A remuneration policy has also been developed and adopted by the Company which provides for appointment and remuneration of Directors, Key Managerial Personnel and Senior Management.

Disclaimer

Statements in the Management Discussions and Analysis describing the Companys objectives, projections, estimates, expectations are "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax, corporate and other applicable laws together with the other incidental factors.