RESULTS OF OPERATIONS And STATE OF COMPANY'S AFFAIRS

During the financial year 2024-25, the Company has successfully achieved the operational synergy and financial growth despite the industry challenges. The key highlights of the Company's performance during the financial year 2024-25 are as under:

• Revenue from Operations stood at Rs. 62,143.18 Lakh as against Rs. 57,522.82 Lakh in the previous financial year, representing an increase of 8.03% over the corresponding period of last financial year.

• EBIDTA was Rs. 5,620.09 Lakh as against Rs. 2,684.93 Lakh in the previous financial year, representing an increase of 109.31% over the corresponding period of last financial year.

• Profit after Tax was Rs. 3,538.12 Lakh as against Rs. 1,318.99 Lakh in the previous financial year, representing a growth of 168.24% over the corresponding period of last financial year.

Despite a dynamic business environment, the Company remains resilient and future-ready, committed to innovation, sustainability and continuous growth in the years ahead.

During the financial year 2024-25, the Company's exports of Acrylic Fiber were 2,604 MT as compared to last year's exports 3,044 MT. The Company has exported to Dubai, Peru, Thailand, Morrocco, Tunisia, Nepal, Ukraine, Turkey, Algeria, Kenya, Brazil, Poland, Lebanon etc. and is exploring possibilities of increasing exports and it is hopeful to achieve better exports in the coming years. The export of CPP was 1,107 MT as against 177 MT during the previous year.

DIVIDEND

During the year under review the Board of Directors decided not to recommend any dividend for the financial year 2024-25.

DEPOSITS

During the year under review, your Company has neither accepted nor renewed any deposits within the meaning of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014. Further, there are no outstanding and/or overdue deposits as at 31^st March, 2025.

TRANSFER OF RESERVES

The Board of Directors of your company, has decided not to transfer any amount to the General Reserve for the year ended 31^st March, 2025. MANAGEMENT DISCUSSION & ANALYSIS REPORT

Management Discussion and Analysis Report for the year under review as stipulated under Regulation 34(2)(e) read with Schedule V of the SEBI Listing Regulations, is given as under:

a) INDUSTRY STRUCTURE AND DEVELOPMENT Acrylic Fibre

Acrylic Fibre is an integral part of the total textile fibre mix which satisfies clothing and other needs of an increasing population. Acrylic fibres are being extensively used for manufacturing various apparel such as sweaters, sportswear, socks, home furnishing, and industrial cloth due to their lightweight, flexibility and low cost. With the rapid growth of the apparel & textile industry and increasing usage of acrylic fibres for making apparel, the overall acrylic fibre market is projected to rise at 4.2% CAGR till 2035. Factors such as a rapidly growing population, changing lifestyle, increasing disposable income, and flourishing fashion industry are expected to indirectly influence the growth of acrylic fibre during the next ten years. The demand for acrylic fibers is anticipated to rise in the coming years, particularly due to the macroeconomic development of end-use sectors which is supported by regional GDP and population growth.

Packaging industry is an enormous economic generator on a global scale and is one of the largest & highest growth sectors of the Indian economy. Cast Polypropylene or CPP packaging films have several beneficial properties from industrial perspective such as transparency, high impact strength, heat sustainability, dimensional stability, printability and are manufactured using high grade raw materials, and laminating aspects. The global market for CPP packaging films is expected to reach US$ 8,742.2 Mn by 2033, growing at a 4.2% CAGR till 2033. CPP packaging films are readily used to increase the shelf life of the products in the industries such as food, beverages, apparel, cosmetics, and healthcare products. With the rising requirement for packaging across sectors, with traditional businesses preferring to package products, and the retail and e-commerce growing rapidly, the CPP films industry is projected to expand at a robust rate.

Across the globe, Ethanol is gaining strategic importance as a key enabler of the clean energy transition. The global ethanol market is anticipated to register a CAGR of 6.8% from 2023 to 2032. This growth is primarily fuelled by the growing usage of ethanol as a biofuel. The application of ethanol as a biofuel emerges as a key market driver, particularly as the automotive industry grapples with air pollution concerns and to reduce gasoline imports.

Ethanol has now become a crucial component of the India's fuel demand. Ethanol blending has emerged as a key strategy to reduce India's dependence on imported crude oil while advancing its clean energy agenda. India has successfully achieved its 20% ethanol blending target (E20), well ahead of schedule·a major milestone in the country's energy transition journey. With this goal now met, the focus is shifting toward higher blending levels and broader applications of ethanol across sectors.

The Indian ethanol industry demonstrated remarkable resilience and growth during FY 2024-25, supported by progressive government policies, a focus on energy diversification, and the strong momentum of the Ethanol Blended Petrol (EBP) program. With the national target of achieving 20% ethanol blending by 2025, the sector witnessed accelerated investments in capacity expansion and technological innovation.

b) OPPORTUNITIES AND THREAT

The resilient economic outlook, driven by robust consumption demand, presents a mix of opportunities for the company. The usage of acrylic fibers in blends with other materials like wool, cotton, polyester, etc. is growing in popularity as a result of their favorable physical, chemical, and thermo biological properties. This will provide a strong thrust to the growth of the acrylic fiber market. The rapid growth of end-use sectors including apparel, home furnishing, and industrial will therefore continue to propel the sales of acrylic fibres in the upcoming years.

Global Acrylic Fibre consumption is impacted due to volatility in prices of raw material, energy, coal and other key inputs. The raw material to produce the Company's products is crude derived. The fluctuation in crude affects the raw material prices to some extent and during the year under the review, the crude prices remained volatile due to conflict in Israel-Hamas War & Russia-Ukraine War. Additionally, since the Company is dependent upon imports, the fluctuation in foreign exchange i.e. USD vs. INR has also a bearing on the margin of the Company.

The market for CPP Films is primarily driven by the rapidly expanding demand from the food and beverage sector and the rising use of bags and pouches in end-use industries. The market for CPP Films is expected to increase in the near future due to the rise in the consumption of convenience foods and the high need for packaging solutions. The development of consumer goods packaging has shown to be a major possibility for CPP film growth.

However, the market for CPP Film Market is moderately competitive owing to the presence of multiple vendors in the market. On the other hand, stringent regulations concerning packaging, changing consumer preferences and environmental pressures may restrain the growth to some extent.

Governments are increasingly adopting ethanol blending mandates to curb emissions, reduce reliance on imported fuels, and boost rural economies through agricultural value addition. While the ethanol policy has been marked by abrupt recalibrations, the long-term structural story remains intact driven by India's decarbonization targets and the government's ethanol blending roadmap. The ethanol market has potential to grow beyond transportation, presenting new opportunities in aviation biofuels, bio-based chemicals, power generation and industrial applications for producers. One of the most pressing challenges that remain is climatic vagaries in this industry, and at times changes in government policies. Additionally, the continued absence of non-increase in Minimum Selling Price adjustments pose direct threats to forward planning, capacity utilisation, and return on invested capital

c) SEGMENT-WISE / PRODUCT-WISE PERFORMANCE Acrylic Fibre

The Company's Acrylic Fibre plant was set up in technical collaboration with SNIA BPD Italy, part of the famed FIAT group - a proven world leader in the manufacture of acrylic fiber. Advanced technology, automation, computerized process control systems and captive power, make the operations of your Company extremely efficient and reliable. The production capacity to produce Acrylic products of the Company is 42,000 MT PA. Your company is covering both domestic and export markets and the Company's products are well accepted.

During the year under review, the Company has recorded production of 35,198 MT and Sale of 33,850 MT, as against production of 31,534 MT and Sale of 31,685 MT respectively during the previous year. During the FY 2024-25, there is an increase of 11.61% and 6.83% in production and sales respectively over the previous year.

Revenue of Acrylic Fibre during the year under review was Rs. 53,810.27 Lakh as against revenue of Rs. 49,743.47 Lakh in the previous year. Profit before tax, exceptional items and interest was Rs. 5,047.77 Lakh as compared to Rs. 2,510.22 Lakh in the previous year.

The Company installed European machinery which ensures quality product giving edge over other producers. The Company's production capacity to produce CPP film is 10000 MT PA.

During the year under review, the production and sale of CPP film was 6,343 MT and 6,409 MT respectively as against production of 6,463 MT and sale of 6,476 MT respectively during the previous year.

Revenue of CPP Films during the year under review was Rs. 8,066.67 Lakh as against revenue of Rs. 7,779.35 Lakh in the previous year. Loss before tax, exceptional items and interest was Rs. 30.62 Lakh as compared to loss of Rs. 412.28 Lakh in the previous year, reflecting an improvement of 92.57%. During the year under review, loss of CPP has been declined due to better realization and reduction in overheads.

During the year, the performance was marginally improved due to better sentiments in the market and it is expected to improve in the coming years.

The Company has successfully commissioned its 150 KL per day grain-based Ethanol Plant and commenced commercial production in March, 2025. The total project cost was assessed Rs. 167 Crore (excluding working capital margin) but the project was overrun due to Civil work. Company has spent around Rs. 188 Crore so far which includes Rs. 104 Crore of Term Loan and Balance amount out of internal accruals.

During the year under review, the production and sale of Ethanol was 790 KL and 440 KL respectively. Revenue from Ethanol Segment was Rs. 266.24 Lakh and Profit before tax, exceptional items and interest was Rs. 4.34 Lakh. The purity of Ethanol produced by the company is 99.83% which is acceptable as very good.

d) OUTLOOK

India's economic activity and GDP growth are expected to remain resilient despite ongoing geopolitical uncertainties. As a result, India is poised to become one of the major economies in the world with a promising growth outlook. Your Company anticipates sustained demand growth across segments.

According to Future Market Insights (FMI), India is expected to account for a substantial share of the global acrylic fibre market, owing to the rapid expansion of the textiles industry and the rise in the export of yarns and fibres. The rise in the number of textile industries in India is favoring the growth of the acrylic fibre market and the trend is likely to continue in the upcoming years. India is probably going to be the new development engine of the region's acrylic fibre market, propelled by a rising population, increasing disposable income, and changing lifestyle.

Demand for packaged foods is at an all-time high due to growing world population. Additionally, due to concerns about sanitation and health, consumers themselves prefer packaged meals. CPP films are also widely used in the pharmaceutical industry for packing pharmaceuticals to control the damage and contamination during transport. The global CPP Film Market is anticipated to rise at a considerable rate during the forecast period, between 2022 and 2027.

The Ethanol sector remains a cornerstone in India's broader renewable energy and sustainability agenda. As per report of Expert Committee of Nity Aayog on Roadmap for Ethanol Blending, the demand for ethanol is expected to be 1016 Crore litres. The present ethanol production capacity in India is 426 Crore litres only. Considering the above gap, the ethanol market is anticipated to grow in the future. Improvements in logistics infrastructure, streamlined pricing mechanisms, and sustained policy support have collectively strengthened India's position as one of the fastest growing ethanol markets globally.

The Company fully dedicates itself to quality and implements robust quality processes and systems at its manufacturing unit to ensure the safety and quality of its product. The Company consistently invests in equipment, processes, and systems to ensure full compliance with manufacturing and audit norms.

e) RISK AND CONCERN

At the start of Fiscal year 2025, global economy was facing challenges in the form of unresolved and on-going geopolitical tensions between Russia and Ukraine and the second one between Israel and Iran. Other geo-political tensions including supply chain disruption, subdued global economic conditions, changes in government policies and trade sanctions and restrictions, intense competition from local and global players, regulatory changes and cyber security threats are key risks which expose the Company to potential challenges and uncertainties. Furthermore, persistent volatility in input costs and foreign exchange risks remains on the radar. These factors can pose risks to the company's plans, operations, supply chains, cash flows and market access potentially dampening its export business.

Further, since the Company is dependent upon imported raw materials, movement in USD and increase in crude oil prices due to ongoing Israel-Hamas war and Russia-Ukraine war may affect the margin. The Company is giving thrust on increasing the exports so that effect can be mitigated. Global economy is likely to be hit by inflation, continuing high energy cost, logistics issues and costs in international trade. Tightening of monetary policies by Central banks to curb inflation may have necessary impact which will impact consumption in general including Acrylic Fiber & CPP Films Industry.

Since raw material is crude derived as such movement either side shall affect the raw material price. To mitigate the effect, the Company has entered into long term contracts with suppliers in films division.

The prices of ethanol products are determined by Oil Marketing Companies (“OMC”) and the Company has no control on the prices. Further, ethanol produced is primarily sold to OMCs for blending with petrol.

f) INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

The Company maintains an adequate and effective Internal Control System commensurate with its size and complexity. It believes that these systems provide, among other things, a reasonable assurance that transactions are executed with management authorization. It also ensures that they are recorded in all material respects to permit preparation of financial statements in conformity with established accounting principles, along with the assets of the Company being adequately safeguarded against significant misuse or loss. An independent Internal Audit function is an important element of the Company's Internal Control System. The internal control is supplemented by an extensive programe of internal, external audits and periodic review by the Management. This system is designed to adequately ensure that financial and other records are reliable for preparing financial information and other data and for maintaining accountability of assets.

g) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Your company delivered a good performance despite global headwinds that exerted some pressure. Various cost optimisation driven by way of alternate sourcing, standardization, process improvements and operational efficiency improvements has led significant savings.

During the year under review, the Company registered Revenue from Operations of Rs. 62,143.18 Lakh as compared to Rs. 57,522.82 Lakh for previous year with a growth in revenue of 8.03 %. The Company reported Profit before Tax of Rs. 4,771.87 Lakh in the financial year, reflecting an increase of 159.31% over the previous year's profit before tax of Rs. 1,840.21 Lakh. Net Profit in financial year 2024-25 increased to Rs. 3,538.12 Lakh from Rs. 1,318.99 Lakh, registering a growth of 168.24% over the previous financial year.

h) MATERIAL DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company believes that their workforce is an invaluable asset for the Company and Company endeavors to ensure the well-being of all its employees. The safety, health and work life balance of employees are extremely important. Company made all the required efforts to ensure safety of all workforce and employees.

Development and Training of team has always been a focus area of management. The Human Resource Development continues to be focused on improving employee productivity, reducing employee cost and building necessary skillsets whilst building employee motivation through varied employee engagement initiatives. To augment technical strength in existing business areas, various technical trainings covering existing business are being conducted on a regular interval. Regular safety training is imparted to all personnel at factory and regular review of safety incidents is done by top management.

The Company employed on an average 514 persons during the year.

i) 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 THEREFOR

In accordance with the SEBI Listing Regulations, the Company is required to give details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios including the following ratios:

BOARD EVALUATION

The Company has devised a formal process for annual evaluation of performance of the Board, its Committees and Individual Directors (“Performance Evaluation”) which include criteria for performance evaluation of non-executive directors and executive directors as laid down by the Nomination and Remuneration Committee and the Board of Directors of the Company. It covers the areas relevant to the functioning as Independent Directors or other directors, member of the Board or Committee of the Board.

In terms of the applicable provisions of the Companies Act, 2013 and SEBI Listing Regulations, the Nomination & Remuneration Committee has carried out an annual performance evaluation of Board of Directors, of Board's committees and of each Board Member individually.

The performance of the committees was evaluated by the Nomination & Remuneration Committee after seeking inputs from the committee members on the basis of criteria such as the composition of committees, effectiveness, structure & independence of committees, contribution to decisions of the Board etc.

The performance of the Board was evaluated on the basis of various criteria such as the board composition and structure, effectiveness of board processes, information and functioning, role & responsibilities and strategy & performance, Governance & compliance etc.

The Board and the Nomination and Remuneration Committee reviewed the performance of the individual directors on the basis of laid down criteria.

Independent Directors of the Company had, in their separate meeting held on 6^th November, 2024, reviewed the performance of nonindependent directors, the Board as a whole and Managing Director of the Company, taking into account the views of Executive and NonExecutive Directors.

Further, the Independent Directors hold unanimous opinion that the Non-Independent Directors/Managing Director bring to the Board, abundant knowledge in their respective field and are experts in their areas. Besides, they are insightful, convincing, astute, with a keen sense of observation and have a deep knowledge of industry. They have been performing reasonably well, under the prevailing circumstances.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirement under section 134(3) (c) and 134(5) of the Companies Act, 2013, your Directors to the best of their knowledge and belief and according to the information and explanations obtained by them, hereby confirm:

a. That in the preparation of the annual accounts for the financial year ended 31^st March, 2025; the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. That the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year ended 31^st March, 2025 and of the profit of the company for the year ended on that date;

c. That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

d. That the directors had prepared the annual accounts on a going concern basis;

e. That the directors, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively;

f. That the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

CORPORATE GOVERNANCE

The company has complied with the Corporate Governance code as stipulated under SEBI Listing Regulations. A separate report on Corporate Governance, forming part of the Annual Report of the Company is annexed hereto.

SECRETARIAL STANDARDS

The Company complies with all applicable mandatory secretarial standards issued by the Institute of Company Secretaries of India.

PROCEEDINGS PENDING UNDER THE INSOLVENCY & BANKRUPTCY CODE, 2016

During the year under review, the Company has neither made any application nor any proceeding is pending under the Insolvency and Bankruptcy Code, 2016.

DETAILS OF DIFFERENCE BETWEEN AMOUNT OF THE VALUATION DONE AT THE TIME OF ONE TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS OR FINANCIAL INSTITUTIONS ALONG WITH THE REASONS THEREOF

There was no instance of one-time settlement with any Bank or Financial Institution, during the year under review.

CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES

In compliance with the provisions of the Companies Act, 2013 and SEBI Listing Regulations, all related party transactions are placed before the Audit Committee for prior approval and also before the Board wherever necessary. Prior omnibus approval from Audit Committee is obtained for the related party transactions which are repetitive in nature. The details of all transactions executed with related parties are placed before the Audit Committee on a quarterly basis for its review.

During the year under review, all contracts/arrangements/transactions entered into by the Company with related parties were in the ordinary course of business and were on an arm's length basis and in accordance with the provisions of the Companies Act, 2013 and the rules made thereunder, the SEBI Listing Regulations and Company's Policy on Related Party Transactions. None of the transactions with any of the related parties were in conflict with your company's interest.

Cyber Security

In view of the increased cyberattack scenarios, the cyber security maturity is reviewed periodically and the processes, technology controls are being enhanced in-line with the threat scenarios.

Particulars of Loans , Investments, Guarantees.

During the year under review, the Company has not given any loan or provided any security or guarantee in terms of Section 186 of the Companies Act, 2013. The Company has complied with the provisions of Section 186 of the Companies Act, 2013. Particulars of Loans given/ Investments made/Guarantees given/Securities provided as per Section 186 of the Companies Act, 2013, is disclosed in financial statements.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO.

The information as required to be disclosed under Section 134(3)(m) of the Companies Act, 2013 read with Rule, 8 of The Companies (Accounts) Rules, 2014 is set out in the Annexure - IV to this Report.

Annual Return

Particulars of Employees

The statement containing particulars of employees as required under section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended, is attached as Annexure - V.

ISO CERTIFICATION

Your Company is an ISO 9001:2015, accredited by Bureau of Indian Standard, Rooid Voor Accreditatie, and Netherland and OKEO TEX STANDARD 100 Class 1 Appendix 6. Furthermore, the Company's CPP Product meets the requirements set out in the BRC Global Standard for Packaging & Packaging Material and is categorized as HIGH HYGINE Grade A by the BRCGS. These certifications/recognitions are indicative of your company's commitments in meeting global quality standards and thrust excellence for achieving customer satisfaction:

ACKNOWLEDGEMENT

Your Directors wish to place on record their deep appreciation of the continued support and co-operation received from Financial Institutions, Banks and Shareholders, the State and Central Government.

Your Directors also wish to place on record their appreciation of the devoted services of the Company's employees, who have diligently contributed to the Company's progress.

Form No. AOC-2

(Pursuant to clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of Section 188 of the Companies Act, 2013 including certain arm's length transactions under third proviso thereto.

1. Details of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 which are not at arm's length basis. - NIL

2. Contracts/arrangements/transactions entered into by the company with related parties referred to in sub- section (1) of section 188 of the Companies Act, 2013 which are at arm's length basis: