Dhoot Industrial Finance Ltd Management Discussions

1. Industry Structure and developments:

The Company has focused basically on trading of chemicals, electronics, paper, commodity, shares and on power generation during the fiscal and loans, Inter – Corporate Deposits, dividend from investments have contributed to the other income.

2. Opportunities and Threats: Opportunities:

The Company is eyeing new products for increasing its trading portfolio. Threats: The Company will face general market competition.

3. Segment wise Performance:

The company usually operates in Trading. The segment wise information is provided at Note No. 17 in Notes to Financial Statements.

4. Outlook:

Due to increased focus on the trading activities, the company is confident that as the market conditions are improving, the company will gain in the domestic economy.

5. Risk & Concerns:

The company will face market competition.

6. Internal Control Systems and their adequacy:

The Company has an adequate system of internal controls that ensures that all the assets are protected against loss from unauthorized use or disposition and all transactions are recorded and reported in conformity with generally accepted accounting principles.

7. Financial Performance and Operational Performance:

The company has achieved a total income and turnover of INR 5892.52 Lakhs and net Profit is at INR 1888.34 Lakhs during the year ended 31^st March, 2025 as compared to INR 21,884.93 Lakhs and net Profit is at INR 14,806.17 Lakhs respectively for the last financial year.

8. Human Resources / Industrial Relations: (including number of people employed)

Your Company considers its intellectual capital as its most asset. Personnel policies of the Company are designated to ensure fairness to and growth of all individuals in the organization and aim to provide a challenging work environment. The Industrial Relations remained cordial during the year under review.

9. There have been significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios.

The Key Financial Ratios for the year under review have undergone changes as compared to previous FY 2023-24. All Profitability Ratios like Net Profit Margin (decreased to 167.68% from 454.48 %) due to decrease in net profit, Interest coverage ratio (decreased to 4.91% from 29.37%) due to decrease in profit during the year & Return on Net worth (decreased to 4.13% from 35.92%) due to decrease in net profit. The reduction in credit sales during the year has led to a corresponding decrease in the Debtors Turnover Ratio (decreased to 2.63% from 7.81%), Inventory Turnover (0) & Current Ratio (increased to 2.37 % from 1.97 %) due to increase in Trade receivables and Current Investments. The Debt Equity Ratio (decreased to 0.13% from 0.15%) due to increase in Profit during the year.

10. Return on Net worth was 35.92% in the previous year while return on net worth in current year is 4.13% The difference is due to decrease in net profit for the financial year 2024-25.