Arham Technologies Ltd Management Discussions

Industrial Structure and Developments:

Arham Technologies Limited, a company listed on the NSE EMERGE platform (formerly Arham Technologies Private Limited), is engaged in the manufacturing of LED Smart Televisions under our brand ‘STARSHINE, available in multiple screen sizes. In addition, we produce fans, air coolers, and mixer grinders through third-party manufacturers under the same brand.

Our products are distributed through a network of dealers and distributors across Chhattisgarh, Madhya Pradesh, Odisha, Vidarbha, Andhra Pradesh, and parts of Uttar Pradesh.

Strategically located in the Electronic Manufacturing Cluster (EMC) of the Smart City of Raipur, we benefit from excellent connectivity, access to central India markets, and proximity to an inland port, which reduces import-export costs compared to congested ports like Nhava Sheva. The central location provides strong logistical advantages and allows easy access to seven neighboring states: Odisha, Andhra Pradesh, Telangana, Maharashtra, Madhya Pradesh, Uttar Pradesh, and Jharkhand.

For the financial year 2024-25, the Company reported the following financial performance:

Sr. Particulars No	Standalone (INR Lakhs)	Consolidated (INR Lakhs)
1 Gross Revenue	6,515.75	6,989.35
2 Gross Profit (before interest, depreciation, and tax)	1,125.89	1,288.62
3 Net Profit (after tax)	595.42	727.54

Internal Control System and their adequacy:

The Company has a robust internal control framework to safeguard its assets and ensure accurate reporting of financial transactions. Key measures include:

• Regular internal audits by the Internal Auditors.

• Periodical management reviews.

• Ensuring proper authorizations for all transactions.

Controls are periodically reviewed to maintain compliance and operational efficiency.

Opportunities and Threats:

Opportunities:

• Geographical Expansion: Growing demand in new domestic and international markets.

• Technological Advancement: Adoption of emerging technologies and innovative manufacturing processes.

• Promoter Expertise: Extensive industry experience ensures efficient operations.;

• Collaborative Ecosystem: EMC cluster facilitates co-development, partnerships, and innovation.

• Government Support: Incentives, grants, and policy support under schemes like Make in India and Digital India.

• Strategic Location: Reduced transport costs and shorter delivery times to domestic and international markets.

• Skilled Workforce: Access to talent and partnerships with educational institutions enable continuous workforce development.

• Sustainability and Innovation: Smart city infrastructure encourages green practices and advanced technologies (IoT, AI).

Threats:

• Intense Competition: Clustered operations may lead to price wars and resource constraints.

• Dependency on Cluster Infrastructure: Delays in shared services could affect production.

• Regulatory Compliance: Stricter oversight may increase operational costs.

• Supply Chain Risks: Reliance on external suppliers could create vulnerabilities.

• Economic and Political Factors: Changes in trade policies or economic downturns may impact revenue.

• Environmental and Sustainability Pressures: Compliance with stricter environmental regulations may increase costs.

Segment-wise or Product-wise Performance:

The Company operates in a single segment of LED televisions and home appliances under the brand

‘STARSHINE.

	Standalone Statement		Consolidated Statement
Particulars	Year Ended 31.03.2025	Year Ended 31.03.2024	Year Ended 31.03.2025	Year Ended 31.03.2024
Revenue From Operation	6,515.75	5,468.98	6,989.35	5,474.16
Other Income	19.71	53.24	19.71	53.24
Total Income	6,535.46	5,522.22	7,009.06	5,527.40
Profit Before Interest and Depreciation	1,125.89	902.72	1288.62	904.04
Less: - Finance Cost	227.38	158.97	227.38	158.97
Less: - Depreciation	109.29	77.41	110.18	77.42
Profit Before Exceptional Item and Tax	789.22	666.34	951.06	667.65
Exceptional Item	-	-	-	-
Profit Before Tax	789.22	666.34	951.06	667.65
Less: - Provision for Tax
Current Tax	212.59	170.89	242.37	171.05
Current tax expense relating to prior years	-	-	-	-
Deferred Tax Assets/Liability	(18.79)	8.97	(18.85)	9.06
Net Profit After Tax	595.42	486.48	727.54	487.53
Transfer to General Reserve	595.42	486.48	727.54	487.53
Surplus carried to Balance Sheet	595.42	486.48	727.54	487.53
Earnings per equity share:
Basic	3.52	5.75	4.30	5.76
Diluted	3.52	5.75	4.30	5.76
Proposed Dividend on Equity Shares	-	-	-	-
Tax on proposed Dividend	-	-	-	-

Dividend and Reserves:

• Proposed Dividend: NIL

• Transfer to General Reserve: Standalone INR 595.42 Lakhs

• Surplus carried to Balance Sheet: Standalone INR 595.42 Lakhs

Earnings per Equity Share:

• Standalone: 3.52

• Consolidated: 4.30

Financial Performance Analysis:

The Company has shown healthy growth in revenue and profitability for FY 2024-25:

• Standalone Revenue Growth: 19.2% increase from FY 2023-24 (INR 5,468.94 Lakhs ^ INR 6,515.75 Lakhs).

• Standalone Net Profit Growth: 22.3% increase (INR 486.48 Lakhs ^ INR 595.42 Lakhs).

• Consolidated Revenue: INR 6,989.35 Lakhs

• Consolidated Net Profit: INR 727.54 Lakhs

The Management remains confident about achieving higher growth in the coming years.

Material Developments in Human Resources and Industrial Relations:

Employees are considered the Companys most valuable asset. Key initiatives include:

• Team-building and employee welfare programs.

• Skill development and professional training.

• Maintaining harmonious industrial relations, focusing on improving productivity and quality.

Key Financial Ratios and Variance Analysis:

Ratio	Formula	FY 2024-25	FY 2023-24	Variance (%)	Reason for Variance
1 Current Ratio	Current Assets / Current Liabilities	1.68	1.86	(9.68)	Slight reduction in current assets relative to liabilities.
2 Debt-Equity Ratio	Total Debt / Shareholders Equity	1.62	2.33	(30.47)	Repayment of borrowings and higher equity retention.
3 Debt Service Coverage Ratio	Earnings for Debt Service / Debt Service	5.08	6.31	(19.49)	Higher finance cost despite growth in operating profit.
4 Return on Equity	PAT / Average Shareholders Funds	0.47	0.58	(18.97)	Net profit growth proportionately lower than equity growth.
5 Inventory Turnover Ratio	COGS / Average Inventory	1.92	2.98	(35.57)	Higher inventory maintained to meet expected demand.
6 Trade Receivables Turnover Ratio	Net Credit Sales / Average Receivables	6.20	5.78	7.26	Improved collection efficiency.
7 Trade Payables Turnover Ratio	Net Purchases / Average Payables	17.31	33.69	(48.61)	Longer payment cycles to optimize working capital.
8 Net Capital Turnover Ratio	Net Sales / Working Capital	5.75	6.25	(8.00)	Increase in working capital for business expansion.
9 Net Profit Ratio	PAT / Net Sales	0.09	0.09	0	Stable profitability margins.
10 Return on Capital Employed	(PAT + Finance Cost) / Capital Employed	0.18	0.18	0	No significant change.

Conclusion:

The Companys operations, financial performance, and internal controls remain robust. Opportunities in emerging markets, technology, and government initiatives, coupled with strategic location and skilled workforce, position the Company for sustainable growth. Continuous risk management, regulatory compliance, and operational improvements will remain key focus areas to maintain competitive advantage.

	For and on behalf of the Board of Directors
	SD/-	SD/-
	Managing Director	Director
Date: 26.08.2025	DIN 06381291	DIN 06381280
Place: Raipur	NAME Roshan Jain	NAME Ankit Jain