Vital Chemtech Ltd Management Discussions

The following section outlines the Companys performance and provides an overview of its future business prospects. This outlook is based on an evaluation of the current economic environment and prevailing government policies. It is important to note that changes in future economic conditions or other external factors may impact this outlook.

The Managements perspective on the Companys performance and future direction is detailed below:

INDUSTRY STRUCTURE AND DEVELOPMENTS:

GLOBAL ECONOMY:

Global growth is projected to remain resilient at 3.3 percent in 2026 and at 3.2 percent in 2027: rates similar to the estimated 3.3 percent outturn in 2025. The forecast marks a small upward revision for 2026 and no change for 2027 compared with that in the October 2025 World Economic Outlook (WEO). This steady performance on the surface results from the balancing of divergent forces. Headwinds from shifting trade policies are offset by tailwinds from surging investment related to technology, including artificial intelligence (AI), more so in North America and Asia than in other regions, as well as fiscal and monetary support, broadly accommodative financial conditions, and adaptability of the private sector. Global headline inflation is expected to decline from an estimated 4.1 percent in 2025 to 3.8 percent in 2026 and further to 3.4 percent in 2027. The inflation projections are also broadly unchanged from those in October and envisage inflation returning to target more gradually in the United States than in other large economies.

Risks to the outlook remain tilted to the downside. Re-evaluation of productivity growth expectations about AI could lead to a decline in investment and trigger an abrupt financial market correction, spreading from AI-linked companies to other segments and eroding household wealth. Trade tensions could flare up, prolonging uncertainty and weighing more heavily on activity.

Global growth is expected to remain steady, with the momentum in high-tech sectors set to slow but to continue to partly offset the drag elsewhere. While tariffs and uncertainty are projected to continue to weigh on the level of activity, the effect on growth is expected to fade during 2026 and 2027. At 3.3 percent for 2026 and 3.2 percent for 2027, the forecasts mark a slight deceleration from the estimated 3.3 percent achieved in 2025. The forecast for 2026 is revised upward by 0.2 percentage point compared with that in the October 2025 WEO, while the forecast for 2027 is unchanged. There are, however, significant revisions for some countries, with the changes in different directions.

INDIAN ECONOMY:

India is currently the 6th largest economy globally with a nominal GDP of $4.15 trillion, trailing the US, China, Germany,

Japan, and the UK. While India briefly secured the 4th position globally in 2025 at approximately $4.18 trillion, recent

currency fluctuations and slower-than-expected nominal growth have caused minor shifts in global rankings

The latest figures indicate an improvement over the 7.1 percent real GDP growth recorded in FY 2024-25, reflecting

continued momentum across agriculture, manufacturing, construction, and services sectors despite global economic

uncertainties.

However, India remains the worlds fastest-growing major economy, with real GDP projected to grow at roughly 7.7% in FY 2025-26. Because of this robust compounding growth, the IMF continues to forecast that India will cross the $5 trillion threshold, overtaking Germany to become the 3rd largest global economy by 2027 or 2028.

State of the economy:-

Gross Domestic Product (GDP): Real GDP growth in 2026-27 is projected in the range of 6.8% to 7.2%. In 2025-26, GDP is estimated to grow by 7.4%, higher than 2024-25 (6.5%). Growth in 2025-26 is largely driven by domestic demand. The share of private final consumption expenditure rose to 61.5% in 2025-26, the highest level since 2011-12. Following factors are conducive for domestic economy: (i) healthier balance sheets across households, firms, and banks, (ii) support from public investment, (iii) resilient consumption demand, and (iv) improving private investment intentions. External uncertainties remain, including slower growth in major trading partners, trade disruptions arising from tariffs, and volatility in capital flows, which may affect exports and investor sentiment.

Inflation: Retail inflation declined from 4.6% in 2024-25 to 1.7% in 2025-26 (April-December). This has improved real purchasing power and supported consumption. Decline in inflation was driven by lower prices of food items such as vegetables, pulses, and spices. This was owing to favourable weather conditions and higher production. RBI and IMF project a gradual increase in headline inflation in 2026-27, within the target range of 4% (?2%). The Survey noted that challenges may arise from higher base metal prices due to demand pressures and supply disruptions, rising prices of gold and silver, and imported inflation due to currency depreciation.

GLOBAL CHEMICAL MARKET:

The global chemical industry is expected to experience moderate growth during 2025-2027, although the market remains affected by weak industrial demand, excess production capacity, geopolitical uncertainty, energy costs, and changing trade policies. In 2025, the global chemical industry faced a slower-than-expected recovery. Global chemical production growth was estimated at around 1.9%, compared with earlier expectations of stronger growth. High production capacity, weak demand in some major end-use industries, and geopolitical and trade uncertainties continued to put pressure on chemical manufacturers. For 2026, the outlook remains challenging but shows signs of gradual improvement. BASF estimates global chemical production growth of approximately 2.4%, with emerging markets—particularly China and other Asian economies—providing much of the growth. Demand is expected to improve gradually, while companies are likely to focus on cost efficiency, product innovation, supply-chain resilience, and higher-value specialty chemicals.

By 2027, the chemical market is expected to move toward a more stable and selective growth phase, provided global economic conditions improve. Asia is likely to remain the major growth region, while specialty chemicals, advanced materials, sustainable products, and chemicals supporting electronics and other high-growth industries could offer attractive opportunities. However, global overcapacity and strong competition from Asian producers may continue to put pressure on commodity chemical prices and profit margins.

The 2025-2027 period is likely to be one of gradual recovery rather than rapid expansion. Chemical manufacturers that invest in new products, export markets, operational efficiency, technology, and sustainable production are likely to be better positioned to benefit from future market growth.

INDIAN CHEMICAL INDUSTRY:

In India, the chemical industry remains one of the most influential sectors for manufacturing, contributing about 7% of the GDP while providing vital inputs to the agriculture, pharmaceuticals, textiles, auto, and construction industries. India ranks as the sixth most significant chemical producer in the world and in Asia, the third. It manufactures over 80,000 commercial products in bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers. These numbers are powerful foundation in terms of innovation and expansion since the industry has established a good global standing in dyes, agrochemicals, generics, and vaccines. India is one of the countries that the chemical industry is focusing on for the implementation of digital transformation.

India is adopting green chemistry, circular economy, and digital transformation to minimise the future harmful effects of the chemical industry. These strategies focus on minimising the adverse effects of the environment, and increasing the efficiency of resource use, and shaping a sustainable future. The chemical industry of India has developed strategies that will deal with food security, climate change, and plastic waste in the world. These strategies will indirectly make the country competitive and improve the economy.

Indias chemical industry is expected to remain an important growth sector during 2025-26 and 2027, supported by rising domestic demand, increasing manufacturing activity, export opportunities, and government initiatives to strengthen domestic chemical production.

During FY 2025-26, the Indian chemical industry is expected to see continued growth in production and capacity. Government projections indicate higher production across major chemical segments, including alkali, inorganic and other chemicals. For example, alkali chemical production is projected at about 10.21 million tonnes in FY 2025-26, compared with 9.94 million tonnes in FY 2024-25.

The industry is also expected to benefit from Make in India, import substitution, infrastructure development, and growing demand from pharmaceuticals, agriculture, automotive, construction and consumer industries.

By 2027, the Indian chemical industry is expected to achieve further expansion in manufacturing capacity and exports. Government projections show continued increases in production through FY 2027-28. Alkali chemical production, for instance, is projected to reach approximately 10.92 million tonnes by FY 2027-28.

India is also likely to become more competitive in specialty chemicals, agrochemicals, performance chemicals and value- added products. Government support for dedicated chemical parks is another positive factor; in 2026, the Union Cabinet approved the ^3,030 crore Bhavya Rasayan Scheme to establish three chemical parks and strengthen domestic manufacturing.

The Indian chemical industry has a positive medium-term outlook. Growth is likely to be driven by increasing domestic consumption, export potential, new manufacturing investments, and movement toward higher-value specialty chemicals. However, companies will need to manage challenges such as raw-material price volatility, environmental regulations, global competition, energy costs and geopolitical uncertainties.

Decarbonisation and digital transformation

The Indian chemical industry is at a critical sustainability point, with decarbonisation and digitalisation. Energy efficiency and

carbon reduction have become the agenda of the sector. The Department of Chemicals and Petrochemicals estimates that the industry absorbs an estimated 13% of the total industrial energy consumption and approximately 6% of the total greenhouse gas emissions in India. In response to this effect, businesses are using cleaner fuels, electrifying their operations, and using carbon capture technologies. The major chemical belts in Gujarat and Maharashtra are investing heavily in captive renewable generation, and solar and wind infrastructure are supporting the decarbonisation goals. Firms such as Deepak Nitrite and SRF have indicated that they would like to reduce carbon intensity by over 20% in the next five years by 2030. Artificial Intelligence (AI) and Machine Learning (ML) are transforming the Indian chemical industry through digitalisation. Predictive analytics, process optimisation, and real-time monitoring enhance efficiency, safety, and productivity. Some of the successful stories include Reliance Industries Limited, which implemented AI-based predictive maintenance in refineries, and Tata Chemicals, which implemented Internet of Things (IoT) and AI analytics to optimise the real-time processes. The technologies allow reduced downtime, reduced energy, improved product quality, and sustainable practices. As innovations such as autonomous chemical plants and digital twins approach, digitalisation and decarbonisation combined are making the Indian chemical industry an international powerhouse in terms of efficiency, innovation, and sustainable growth.

The road ahead for Indias chemical industry

As a result of green chemistry innovations, bio-based materials, and circular economy practices, the Indian chemical industry is turning into a world leader in sustainable chemicals. The industry is also taking note of effective utilisation of resources, incorporation of renewable energy, and friendly production to the environment. It is seizing the benefits of capital in petrochemicals, specialty chemicals, and agrochemicals in domestic markets. Government support, investment incentives, research hubs, policy reforms, and stimulating academia, industry, and technology providers to work together are all improving local capabilities. Digitalisation and AI are making things more efficient, safer, and innovative, and green finance frameworks encourage environmentally friendly initiatives. India is not just reducing its reliance on imports, but it is also expanding its international footprint, which will close the gap in capabilities, infrastructure, and downstream manufacturing, resulting in a healthier, more sustainable, greener chemical industry in the decades to come.

Markets Size:

Indias chemical industry is currently valued at approximately US$ 260 billion, ranking as the 6th largest globally and 3rd in Asia. Growing at a ~10% CAGR, the sector is projected to reach US$ 300-383 billion by 2030 and potentially US$ 1 trillion by 2040

Growing Demand:

Indias chemical industry outlook for 2026 is highly optimistic, projecting an 8% to 11% surge in production. Driven by the China-plus-one diversification, robust domestic consumption, and government support, the sector is capitalizing on growing demand. It is quickly solidifying its role as a premier global manufacturing hub.

Opportunities:

Indias chemical industry is projected to reach $230-$255 billion by 2030, growing at an 8-9% CAGR. As a global manufacturing hub, the sector is uniquely positioned to capitalize on the China-plus-one supply chain shift. Domestic infrastructure growth, lower operational costs, and rising global reliance on reliable suppliers continue to drive this expansion

Specialty Chemicals: Accounting for over 45% of the global specialty market in the broader Asia-Pacific region, India remains a net exporter of high-value, low-volume chemicals used in agrochemicals, dyes, and coatings.

Pharmaceutical Intermediates:

Indias Contract Development and Manufacturing Organization (CDMO) space represents a massive revenue opportunity, driven by low-cost production advantages and a focus on domestic API (Active Pharmaceutical Ingredient) manufacturing. Green Chemistry & ESG: Sustainability and eco-friendly practices are major drivers. Investments in renewable energy, circular economy processes, and regulatory compliance open new avenues for companies to attract global supply chain contracts.

Challenges:

• The intricate assets and equipment found in chemical plants pose inherent risks to employee safety, making rigorous compliance and meticulous maintenance essential. Ensuring adherence to stringent regulatory standards and implementing proactive maintenance protocols are crucial to mitigating hazards, preventing accidents, and safeguarding the well-being of personnel. By prioritizing these critical aspects, chemical plants can minimize risks, optimize operational efficiency, and foster a culture of safety and responsibility.

• The chemical industry, while a vital sector, has a significant environmental footprint, generating hazardous substances and waste products that pose substantial risks to ecological balance and human well-being. The release of toxic

chemicals and pollutants can contaminate air, water, and soil, causing irreparable harm to ecosystems and human health. As such, it is imperative for the industry to adopt sustainable practices, invest in eco-friendly technologies, and implement stringent waste management protocols to minimize its environmental impact and ensure a healthier planet for future generations.

• Implementing rigorous quality control procedures is essential to guarantee the safety, efficacy, and excellence of products throughout the entire manufacturing process. These procedures ensure that every stage, from raw material selection to final product testing, meets stringent standards, thereby preventing defects, minimizing risks, and consistently delivering high-quality products that meet customer expectations and regulatory requirements. By integrating quality control measures, manufacturers can maintain the highest levels of product integrity, reliability, and performance.

COMPANY OVERVIEW

Vital Chemtech Limited Our Company was originally incorporated as a private limited company on November 11, 2013, as Rudra Chemtech Private Limited, under the provisions of the Companies Act, 1956. Subsequently, Our Company was converted to Limited Liability Partnership Firm as Rudra Chemtech Limited Liability Partnership having duly passed the necessary resolution in terms of Rule 20(1) of the LLP Rules, 2009 on February 12, 2015, under the LLP Act, 2008. Thereafter, on February 20, 2015, name was changed to Vital Chemtech Limited Liability Partnership pursuant to Rule 20(3) of the LLP Rules, 2009. Later on, our Limited Liability Partnership was converted to Public Limited Company under section 366 Part I chapter XXI of the Companies Act, 2013 as Vital Chemtech Limited and fresh Certificate of Incorporation dated November 25, 2021, was issued by Assistant Registrar of Companies, Ahmedabad. The Corporate Identification Number of our Company is L24299GJ2021PLC127538.

Vital Group, led by Vital Chemtech Limited, operates three manufacturing facilities located within the PCPIR region of the Dahej Industrial Area, a key industrial hub in Gujarat.

All three sites are being operated in different names which are:

A. VITAL CHEMTECH LIMITED

B. VITAL ALKOXIDES PRIVATE LIMITED

C. VITAL SYNTHESIS LIMITED

Our product group are described mainly as below:

• Phosphorus Derivatives

• Alkoxides Derivatives

• Specialty Chemicals & Intermediates

• Contract Manufacturing

A. BUSINESS OUTLOOK OF VITAL CHEMTECH LIMITED (VCTL)

Vital Chemtech Limited is engaged in the business of manufacturing Phosphorus Derivatives Products. We are a manufacturer and supplier of Phosphorus base chemicals with highest quality practice and compliant with Highest Environmental, Health, and Safety (EHS) in the chemical industry. The company has State of the Art Programmable Logic Controller (PLC) and Supervisory Control and Data Acquisition (SCADA) operated in integrated complex in PCPIR region of Dahej, Gujarat, India. Our manufacturing Facility has been certified with ISO 9001:2015, ISO 45001:2018 and ISO 14001:2015 from Bureau Veritas for maintaining highest quality, environmental and safety practices. Our plant is ZLD (Zero

We plan to commence the manufacturing of additional products at this facility in the near future.

These products serve as essential raw materials for a wide range of industries, including life sciences, crop protection, dyes

and pigments, plastic additives, and textile auxiliaries

Our company has demonstrated consistent growth in both revenue and profitability, as reflected in the restated financial statements. With nearly a decade of experience in manufacturing phosphorus-based specialty chemicals, we have maintained a strong track record of operational excellence. Over the past three fiscal years, we have achieved sustained improvements across key financial indicators, including a notable increase in net worth. This progress has been driven by our commitment to organic growth and strategic expansion of operations.

Risk and Concerns

The Company adopts a proactive and comprehensive approach to risk management, identifying, assessing, and mitigating potential risks through the implementation of tailored measures. To ensure the effectiveness of its risk management framework, the Company continuously develops and refines its Risk Management Policy, which is regularly presented to the Board for approval. The Risk Management Committee plays a crucial role in:

- Ensuring the establishment and maintenance of robust methodologies, processes, and systems to monitor and evaluate business-related risks.

- Overseeing the implementation of the risk management policy, including assessing the adequacy of risk management systems.

- Periodically reviewing and updating the risk management policy to address emerging risks and trends.

- Keeping the Board of Directors informed about the Committees discussions, recommendations, and actions taken to address identified risks.

Through this structured approach, the Company demonstrates its commitment to effective risk management, ensuring the protection of its assets, reputation, and long-term sustainability.

OUR MAJOR PRODUCT PORTFOLIO AT VITAL CHEMTECH LIMITED

Our company is engaged in manufacturing of Phosphorus based products. We manufacture the products for our customers on purchase order basis.

Following are the products:

1. Phosphorus Trichloride (Pcl3)

Phosphorus Trichloride is colorless or slightly yellow fuming liquid with a pungent and irritating odor resembling that of hydrochloric acid.

Key Uses:

• Agrochemicals: A major precursor for insecticides (e.g., diazinon), herbicides, and fungicides.

• Plastics & Polymers: Used to make phosphite antioxidants, stabilizers, and plasticizers (e.g., triphenyl/tricresyl phosphate) for PVC.

• Organic Synthesis: Replaces hydroxyl (-OH) groups with chlorine, converts carboxylic acids to acyl chlorides, and forms phosphine ligands for catalysis (Wiffig reaction).

• Chemical Intermediates: Produces phosphorus oxychloride (POCl₃), phosphorus pentachloride (PCl₅), and thiophosphoryl chloride (PSCU).

• Pharmaceuticals: Used in synthesizing antimalarials, antibiotics, and anti-inflammatory drugs.

• Other Industries: Makes surfactants, textile finishing agents, gasoline additives, and is used in electroplating.

2. Phosphorus Oxychloride (POCI3)

Phosphorus Oxychloride is a colorless fuming liquid with a pungent odor. It is toxic by inhalation and corrosive to metals and tissue.

Key Uses:

• Flame Retardants & Plasticizers: A crucial building block for manufacturing fire-resistant materials and flexible plastics.

• Semiconductors: Used as a safe, liquid source of phosphorus in diffusion processes.

•; Organic Synthesis: Replaces hydroxyl (-OH) groups with chlorine, converts carboxylic acids to acyl chlorides, and forms phosphine ligands for catalysis (Wiffig reaction).

• Dehydrating Agent: Converts amides to nitriles andfacilitatesthe Bischler-Napieralski cyclization.

• Chlorinating Agent: Converts carboxylic acids to acid chlorides and pyridones/pyrimidones to their chloro-derivatives.

• Vilsmeier-Haack Reactions: Prepares Vilsmeiers reagent for formylation.

• Pharmaceuticals: An intermediate for creating pharmaceutical ingredients and important heterocyclic compounds.

• Specialty Chemicals: Used in making high purity phosphoric acid, as a catalyst, and for doping optical fibers.

3. Phosphorus Pentachloride (Pcl5)

Phosphorus Pentachloride is a greenish-yellow crystalline solid with an irritating odor. It is decomposed by water to form hydrochloric and phosphoric acid and heat. This heat may be sufficient to ignite surrounding combustible material. It is

corrosive to metals and tissue.

Key Uses:

• Chlorination: Converts hydroxyl (-OH) and carboxyl (-COOH) groups into chloro (-Cl) groups, making alkyl chlorides and acid chlorides.

• Pharmaceuticals: Essential in synthesizing antibiotics (penicillin, cephalosporin) and anti-inflammatory drugs.

• Polymers & Plastics: Catalyzes production of acetyl cellulose, used for plastic films (like old movie reels) and high- performance resins.

• Agrochemicals: Used in making pesticides and herbicides.

• Dyes & Intermediates: Key in producing various organic intermediates, dyes, and fine chemicals.

4. Phosphorus Pentoxide (P2O5)

Phosphoric anhydride appears as a white amorphous powder. Corrosive to metals and tissue and moderately toxic. The usage of phosphorus pentoxide varies significantly in the chemical industry due to its applications as laboratory reagent, starting or reagent material in synthesis processes, and in heat-insulating glass production.

Key Uses:

• Dehydration & Drying: Removes water from gases, liquids, and organic compounds (e.g., converting amides to nitriles).

• Acid Production: Starting material for high-purity phosphoric acid and super/polyphosphoric acids.

• Glass Manufacturing: Used in making optical and heat-insulating glass.

• Chemical Synthesis: Acts as a catalyst or reagent in creating specialty phosphates, esters, surfactants, and complex organic molecules (e.g., cyclic ethers).

• Pharmaceuticals & Agrochemicals: Key ingredient in producing pesticides and certain drugs (like steroid phosphates)

5. Poly Phosphoric Acid (PPA)

Polyphosphoric acid is a hygroscopic, clear and viscous liquid. It has been synthesized by reacting phosphoric acid with phosphorus (V) oxide. It is a moderately strong mineral acid with a wide range of applications.

Key Uses:

• Catalyst: PPA is a strong acid catalyst used in many organic reactions, such as acylation, alkylation, and cyclization. It is used in the production of pharmaceuticals, polymers, dyes, and pesticides.

• Dehydrating agent: It is a powerful drying agent used to remove water from gas streams and other compounds.

• Organic synthesis: PPA is a reagent for synthesizing various compounds, including phosphate esters, cyclic compounds, and aromatic compounds like substituted indoles.

• Asphalt additive: PPA is used to modify asphalt binders to improve their performance, including resistance to ruffing, stripping, and cracking.

• Metal surface treatment: It is used for descaling, brightening, and as a corrosion inhibitor in metalworking fluids and coatings.

6. Phosphorus Pentasulfide (P2S5)

Phosphorus pentasulfide is the inorganic compound with the formula P2S5. It is generally yellow solid in nature.

Key Uses:

• Lubricant additives: It is mainly converted into derivatives like zinc dithiophosphates for use as additives in lubricating oils.

• Pesticides: It is an intermediate in the production of certain insecticides and pesticides, such as malathion and parathion.

• Flotation agents Sodium dithiophosphate derived from P4S10 is used in the mineral processing industry.

• Organic synthesis: It serves as a thionation reagent (introducing sulfur atoms into organic compounds) in organic chemistry and can be used to prepare Lawessons reagent.

• Other products are also used in the manufacture of safety matches and ignition compounds, as a component in some experimental solid electrolytes for lithium batteries.

OUR COMPETITIVE STRENGTH

1. Experienced Promoters and Strong Management Team:

Our company is guided by an experienced and visionary leadership team that has played a pivotal role in driving our operational and financial growth. The business is promoted by Mr. Vipul J. Bhatt and Mr. Jay Vipul Bhatt, whose strategic direction forms the foundation of our long-term success.

Mr. Vipul Bhatt, with over three decades of experience in the chemical industry, leads the organizations business strategy and oversees day-to-day operations. His deep industry knowledge and leadership have been instrumental in shaping our

strategic roadmap.

Our promoters are supported by a highly skilled senior management team with expertise across Technical, Strategy, and Operations domains. Their collective experience, entrepreneurial approach, and commitment to excellence help us execute our growth strategies effectively.

We firmly believe that a motivated and experienced workforce is essential for sustaining a competitive advantage. Our well- coordinated team of management and key personnel work seamlessly to deliver superior performance and consistently high levels of customer satisfaction.

2. Prime Location of our Manufacturing Facility:

Our manufacturing facilities are strategically situated in the Dahej Industrial Estate within the PCPIR region of Gujarat, one of Indias most prominent chemical industry hubs. The estate benefits from comprehensive infrastructure including reliable power supply, well developed road networks, and ample water availability developed and maintained by the State Government.

The prime location ensures excellent connectivity through national highways and railway networks, facilitating efficient movement of raw materials to our plants and timely distribution of finished products to customers. This logistical advantage enables smooth procurement, reduces transit time, and enhances delivery reliability.

Being positioned within this industrial cluster also provides significant cost efficiencies and operational convenience for both our suppliers and customers. The proximity to key industrial partners enhances supply chain stability, making our operations more competitive and dependable.

3. Long-standing relationships with a diversified customer base

We have built enduring customer relationships through decades of consistent engagement, collaboration, and value driven service. A key strength of our business model is that our customers primarily comprise direct end use manufacturers, enabling us to work closely with them on product development, quality enhancement, and long-term supply planning. Because specialty chemicals involve complex chemistries, customer approvals typically require extensive evaluation cycles, including rigorous quality, performance, and facility audits. Our longstanding presence and proven track record have enabled our products to secure these approvals, creating a significant competitive barrier for new entrants who must invest substantial time and resources to qualify their products.

A diversified customer base further strengthens our position, offering resilience during periods of lower market demand by reducing dependency on any single customer or sector.

Additionally, many of our existing customers for Vital Chemtechs products are also prospective customers for our new facilities, VAPL and VSL. This alignment positions us to accelerate market penetration and ramp up operations more efficiently.

4. Focus on Quality, Environment, Health and Safety

We place the highest emphasis on Quality, Environment, Health, and Safety (QEHS), treating these principles as the cornerstone of our operations. Our commitment to sustainability is deeply embedded in our processes, ensuring that every aspect of our manufacturing adheres to globally recognized standards of excellence.

Our management consistently upholds stringent quality benchmarks, which are essential for our operational efficiency and long-term growth. Our manufacturing facilities are equipped with advanced instrumentation and PLC/SCADA based production systems that ensure consistent product quality, enhanced process efficiency, and robust safety controls.

We are certified by Bureau Veritas for the following international standards:

• ISO 9001:2015 - Quality Management Systems

• ISO 14001:2015 - Environmental Management Systems

• ISO 45001:2018 - Occupational Health and Safety Management Systems

In addition to these certifications, many of our key customers have conducted rigorous audits of our plants and operations over the past fiscal years, further validating our adherence to global quality and safety norms.

As part of our sustainable and responsible manufacturing practices, our plant operates on a Zero Liquid Discharge (ZLD) methodology, ensuring minimal environmental impact through the elimination of liquid waste discharge.

We have deployed a dedicated team of safety professionals who oversee our EHS systems and ensure compliance with statutory guidelines. Our infrastructure includes:

• Adequate firewater storage tanks

• Electrical and diesel fire pumps

• A comprehensive fire hydrant network

• Strategically placed fire extinguishers

• Self-contained breathing apparatus

• Chlorine leakage emergency kits

• Multistage PLC/SCADA operated scrubber systems

• A specialized SKID system for handling large volumes of chlorine

These robust systems and preventive controls reinforce our culture of safety and reliability across all operations.

5. Wide Application of Products

Our products serve a broad spectrum of industries, including Life Sciences, Crop Care, Specialty Chemicals, Textile Auxiliaries, Dyestuffs, Pigments, and Plastic Additives. This diverse range of applications significantly reduces our dependence on any single sector and enhances the stability of our business operations. Such diversification supports sustainable growth and contributes to improved financial performance by balancing demand across multiple end-user industries.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Internal Control system and adequacy Internal Control measures and systems are established to ensure the correctness of the transactions and safe guarding of the assets. Thus, internal control is an integral component of risk management. The Internal control checks and internal audit programmers adopted by our Company plays an important role in the risk management feedback loop, in which the information generated in the internal control process is reported back to the Board and Management. The internal control systems are modified continuously to meet the dynamic change. Further the Audit Committee of the Board of Directors reviews the internal audit reports and the adequacy and effectiveness of internal controls.

SWOT ANALYSIS

Strengths

• Established Market: The company has an established presence in the market, providing a stable customer base and business foundation.

• Location Advantage: A strategically located manufacturing facility can provide better access to customers, suppliers, transportation, and raw materials.

• Large Customer Base: A broad customer base helps reduce dependence on individual customers and supports stable sales.

Weaknesses

• Environmental, Health and Safety Hazards: Chemical manufacturing involves risks related to hazardous materials, workplace safety, and environmental compliance.

• Single Manufacturing Facility: Dependence on one manufacturing facility increases operational risk in case of breakdowns, maintenance issues, or unforeseen disruptions.

Opportunities

• Expanded Customer Base: The company can increase sales by entering new markets and attracting new customers.

• New Product Portfolio: Developing new and value-added chemical products can create additional revenue streams and strengthen market position.

• Export Potential: Expanding into international markets can increase sales and diversify the companys market presence.

Threats

• High Capital-Intensive Industry: Chemical manufacturing requires significant investment in plants, equipment,

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The Company operates in a Single Segment of Chemical Manufacturing; brief of the financial performance is here-in-below.

Particulars	Standalone-Year Ended		Consolidated-Year Ended
	31/03/2026	31/03/2025	31/03/2026	31/03/2025
Revenue From Operations	10525.59	12022.87	12644.16	13,390.37
Other Income	78.76	198.86	86.41	207.58
Net Gain on reclassification of financial assets	777.36	280.87	30.16	43.37
Total Income	11381.71	12502.60	12760.73	13641.32
Less: Total Expenses before Depreciation, Finance Cost and Tax	9955.26	11321.62	11640.54	12327.39
Operating Profit /(Loss) before Depreciation, Finance Cost and Tax	1426.45	1180.98	1120.19	1313.93
Less: Depreciation	229.09	208.49	599.42	497.48
Less: Finance Cost	151.53	82.05	312.07	217.40
Profit /(Loss) Before Tax	1045.83	890.44	208.70	599.05
Less: Current Tax	87.06	180.22	87.06	180.22
Less: MAT Credit	0	0	0	0
Less: Deferred tax Liability (Asset)	64.23	18.48	18.95	21.93
Net Profit /(Loss)	894.54	691.74	102.69	396.90
Earnings per Equity Share	3.73	2.89	0.44	1.67

*Previous year figures have been regrouped / re-arranged wherever necessary.

HUMAN RESOURCES & MATERIAL DEVELOPMENTS:

Human Resources play a critical role in driving the Companys strategies and growth. The Company endeavours to become the best place to work for its employees and to provide them with a nurturing environment that is essential for their growth. The Company has implemented comprehensive and well-structured HR Policies to ensure employee growth both at personal and professional levels. The Companys talent pool comprises a diverse set of experienced and skilled people who play key roles in enhancing business efficiency, devising strategies, seffing up systems and evolving business as per industry requirements. The Company provides a safe, conducive and productive work environment to its people. Overall, the Company provides a nurturing work environment to a diverse set of workforce.

We continue to invest in developing a pipeline of future talent and nurture them. As part of this process, we provide development and training opportunities to our workforce, which motivates and encourages them to grow in their work.

As on March 31, 2026, the Company had 59 permanent employees. The Company has been maintaining cordial and healthy Industrial Relations, which has helped to a great extent in achieving the upper growth.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR:

SR. Ratios NO.	2025-26	2024-25	Change in ratio as compared to preceding year (%)	Reason for change in ratio by more than 25% as compared to preceding year
Current ratio 1 (In times)	1.26	1.77	-28.64	Due to decrease in the current liabilities during the year
Debt Equity Ratio (In times)	0.10	0.04	138.54	Due to decrease in borrowing and increase in other equity due to profit during the year
Debt service 3. coverage ratio	5.50	2.95	86.33	Due to increase in profit and finance cost, vis-a-vis increase in repayment of borrowing during the year.
Return on equity 4 ratio (in %)	8.27	6.88	20.20	Reason for Movements is not Required since Movement is not more than 25%.
Inventory Turnover Ratio	5.09	8.86	-42.58	Due to Increase in Revenue from operation and increase in inventory
Trade receivable 6. turnover ratio (in times)	2.60	2.79	-6.88	Reason for Movements is not Required since Movement is not more than 25%.
Trade payable 7. turnover ratio (in times)	3.00	4.07	-26.21	Due to increase in cost of sales and other expenses
Net Capital 8. Turnover Ratio	0.90	1.10	-17.85	Reason for Movements is not Required since Movement is not more than 25%.
Net Profit ratio . (in %)	8.50	5.75	47.71	Due to increase in profit during the year
Return on capital 10. employed (in %)	10.26	8.88	15.54	Reason for Movements is not Required since Movement is not more than 25%.
Return on 11. investment (in %)	7.67	6.32	21.35	Reason for Movements is not Required since Movement is not more than 25%.
Operating Profit 12. Margin (in %)	11.38	8.09	40.64	Due to an increase in Earnings Before Interest and Taxes (EBIT) at a higher rate compared to the increase in Revenue from Operations during the year
Interest Coverage Ratio (in Times)	7.90	11.85	-33.33	Due to increase in Interest Expense
Return on Net 14 Worth (In %)	8.27	6.88	20.20	Reason for Movements is not Required since Movement is not more than 25%.

CAUTIONARY NOTE:

Statements in this Report, describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. These statements are subject to certain risks and uncertainties. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results may be different from those expressed or implied since the Companys operations are affected by many external and internal factors, which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.