Resgen Ltd Management Discussions

The purpose of this discussion is to provide an understanding of business of the Company, Financial statements and a composite summary of performance of our business. Management Discussion and Analysis Report (MDAR) is structured as follows:

Our Business:

ResGen Limited was established in 2018, and is headquartered in Mumbai. ResGen was envisioned to make environment saving projects commercially viable and highly scalable. Humanity has a massive problem, the usage of plastic, and the unavailability of a robust disposal and recycling ecosystem. The amount of plastics we use cause various environmental hazards. Plastic reduction efforts cannot surpass the growing demand. Building sustainable steps towards a healthier environment needs our immediate attention. ResGen was founded on the idea of using plastic waste and converting it into a substitute for fuel. We have come up with an ingenious, eco-friendly solution, which uses each by-product to increase efficiency. We have taken a huge step towards seeing a pollution free India, and we hope we can leave a better pollution free future for our future generations.

Our company is engaged in the process of manufacturing Pyrolysis Oil (a substitute for furnace oil) from all kinds of waste plastics. We call this: PlasEco. During the manufacturing of PlasEco, were able to repurpose the by-products generated, such as Carbon, which substitutes for coal; and Gas, which substitutes for LPG. The company has set up a Chemical Recycling Plant in Vikramgad (Palghar), Maharashtra, considering its proximity to the Municipal Corporations of Mumbai, Thane, Kalyan & Dombivli. We at ResGen, have come up with an ingenious method, which is not only ecofriendly but also gives by-products which are very essential to one and all. The major by-product being combustible liquid and gaseous fuel, it can replace the diesel or furnace oils, which will directly reduce the need and impact of our combustible fuel resources. We use a patented catalytic process to improve the efficiency, safety and scalability of the pyrolysis process.

Our Mission:

ResGen exists to make plastic more sustainable for all stakeholders through technology, innovation and determination. We will play a significant role in helping the United Nations Environment Assembly (UNEA) and big conglomerates solve global plastic problems, and drive a sustainable future

Our Vision:

ResGen is set to become one of the world leaders in chemical recycling, with more precise custom pyrolysis solutions already in development. Were working towards the circular plastic economy through plastic 2 plastic initiatives, diverting waste from landfills and oceans, and boosting local economies through job creation.

Our Product:

1. Pyrolysis Oil:

Our Core Business activity is to manufacture Pyrolysis Oil form plastic waste and plastic scrap. a. Major Uses:

- Direct Combustion in Boilers and Furnaces to produce heat;

- Refined Into Diesel Oil can be used as Feedstock for refined diesel,

- Feedback stock for producing virgin polymers;

During the manufacturing of pyrolysis Oil, two byproducts are produced: Carbon and Gas. Both of the BYPRODUCTS are used by the company to add value to its business.

- Carbon is combustible and has commercial value. It is used as a fuel primarily for combustion in burners in industries like cement and paper. This coal being in pure form of carbon produces flue gases on combustion within permissible limits prescribed by the pollution control board. Were able to sell this above 4.00 Rs per kg.

- The non-condensable output post Pyrolysis is Gas, which has similar properties to LPG and burns very cleanly. This gas can be used to run Gas generators to produce electricity. In our process this gas is also used as a fuel for burners. Like LPG, flue gas has no pollutants. All gas produced is consumed in the plant itself, making the plant self sufficient. We use our own power to run the factory but also have generators and electricity from local municipal corporations to support the manufacturing process.

A. Industry Structure and Developments: Service Industry in general:

The oil and gas sector is among the eight core industries in India and plays a major role in influencing the decision-making for all the other important sections of the economy. Indias economic growth is closely related to its energy demand, therefore, the need for oil and gas is projected to increase, thereby making the sector quite conducive for investment Hence considering above positive outlook the management of the Company is optimistic and equally geared to capitalize on the coming opportunities.

Indias energy demand is expected to increase more than that of any other country in the coming decades due to its sheer size and enormous potential for growth and development. Therefore, it is imperative that most of this new energy demand is met by low-carbon, renewable sources. Indias announcement India that it intends to achieve net zero carbon emissions by 2070 and to meet 50% of its electricity needs from renewable sources by 2030 marks a historic point in the global effort to combat climate change. The Indian renewable energy sector is the fourth most attractive renewable energy market in the world.

Recent Developments and Road Ahead:

Indias ambitious renewables energy goals are transforming its power sector. Rising population and widespread electrification in rural homes is fuelling the demand for energy to power homes, businesses and communities. Clean energy will reduce pollution levels as villages become self-sustainable with their use of clean energy. In 2022, Indias renewable energy sector is expected to boom with a likely investment of US$ 15 billion this year, as the government focuses on electric vehicles, green hydrogen, and manufacturing of solar equipment.

It is expected that by 2040, around 49% of the total electricity will be generated by renewable energy as more efficient batteries will be used to store electricity, which will further cut the solar energy cost by 66% as compared to the current cost. Use of renewables in place of coal will save India Rs. 54,000 crore (US$ 8.43 billion) annually. Around 15,000 MW of wind-solar hybrid capacity is expected to be added between 2020-25.

B. Opportunities and Threats, SWOT Analysis:

Your Company has been continuously striving to optimize its costs to offer a value for money proposition to its clients. Our focus is on quality of service delivered, long-term relationships, stable and sustainable operations, best practices for suppliers and customer centricity.

The growth of the Company is subject to opportunities and threats as are applicable to the industry from time to time.

Companys Competitive Edge is:

- Unique Nature of its product;

- Recycling of end life of Plastic Waste;

- Commercially viable and proven technology;

- The product is environment friendly and can act as substitute for many heat generating fuels;

- Prevents Environmental and/or Health Hazards caused by plastic waste;

- Leads to Cleaner Surroundings, a meaningful contribution to Swacch Bharat Abhiyan

- Successfully decoded the formula for Pyrolysis;

- Strategic Location of Manufacturing Unit easy connectivity from Mumbai and Thane;

- Quality Assurance;

Companys Business Strategy:

The Companys Business Strategy is simple and proven, which comprises of:

- Focus on increasing the Volume of Sales;

- Continue to Strive for Cost Efficiency;

- Focus on consistently meeting quality standards;

- Increase Brand Awareness;

- Strategic Acquisitions and Alliance Opportunities;

Your Companys SWOT Analysis is:

Strengths:	- Unique Nature of the product;
	- Successful decoded formula for Pyrolysis Oil;
	- One of few players in the Industry;
	- Emerging Industry Renewable and Non Conventional Resources;
	- Supported by environmental benefits and ability to replace hazardous products to large extent;
Weakness	- Recently commenced the business activities, yet to have competitive edge over the existing players
	- As it is emerging industry, the awareness needs to be created about these products;
Opportunities	- Government Initiatives;
	- Emerging Industry Renewable and Non Conventional Resources;
	Competitors can drop prices and try to take our business
Threats	Competitors can poach our good employees
	Bandhs, riots, COVID-19, Pandemics like situations can lead to impact on normal functioning

C. Segment Wise or Product wise performance:

Your Company is into single segment i.e. the business of manufacturing of Pyrolysis Oil and hence there is no requirement of providing details of Segment wise or Product wise performance:

D. Outlook:

The pyrolysis process is complex and requires high operational and investment costs. After a 3 years of Research development and various tests our company has successfully decoded the method to convert the plastic waste and plastic scarp in Pyrolysis Oil. We have also been granted the patent for process of manufacturing. We believe that our ability to manage to various resources, use of Technology, collaboration with potential partners and industry experts and most importantly our research-based approach to providing solution to customers problem area puts us ahead of competition and achieve the highest customer satisfaction.

E. Risks and Concerns:

Risk is an inherent part of any business. There are various types of risks, which threat the existence of a

Company like Credit Risk, Market Risk, Operational Risk, Liquidity Risk, Interest Rate Risk, Strategic Risk,

Regulation Risk etc. Your Company aims at enhancing and maximizing shareholders value by achieving appropriate trade-off. There is also a proactive risk management system to identify and mitigate potential risks while capitalising on opportunities for growth.

F. Internal Control System and their adequacy:

Internal Control Systems has been designed to provide reasonable assurance that assets are safeguarded, transactions are executed in accordances with managements authorization and properly recorded and accounting records are adequate for preparation of Financial statements and other Financial information. Internal check is conducted on a periodical basis to ascertain the adequacy and effectiveness of internal control systems.

G. Discussion on Financial Performance with respect to operational performance:

The Company has recorded a total turnover of Rs.23,58,83,102.43/- as compared to Rs.4,80,81,271.97/- in the previous year. The Company was also able to record a net profit of Rs.4,16,91,015.16/- for the financial year closed.

H. Material developments in Human Resource/ Industrial Relations front, including number of people employed:

The Company continues to lay emphasis on developing and facilitating optimum human performance. Performance management was the key word for the Company this year. The Company has always strived to be Progressive Employer by continuously focusing on creating an engaging atmosphere for our Employees to learn, contribute and grow. There is an active FUN team that creates opportunities for enjoyment even while working. We believe in timely compliance of all statutory payments especially related to employees. Our POSH Committee ensures a safe environment, dignity and respect for all our employees irrespective of gender, religion, caste etc.

I. Disclosure of Accounting Treatment:

The Company has not adopted any treatment different from that prescribed in an Accounting Standards.

J. Disclosures:

During the year the Company has not entered into any transaction of material nature with its promoters, the Directors or the management, their subsidiaries or relatives etc. that may have potential conflict with the interest of the Company at large.