Oricon Enterprises Ltd Management Discussions

The Management of Oricon Enterprises Limited ("the Company"), presents the analysis of Company for the year ended on March 31, 2026 and its outlook for the future. This outlook is based on assessment of current business environment. It may vary due to future economic and other developments both in India and Abroad.

This Management Discussion and Analysis (MD&A) of Oricon Enterprises Limited for the year ended on March 31, 2026 contains financial highlights but does not contain the complete financial statements of the Company. It should be read in conjunction with the Companys Audited Financial Statements for the year ended on March 31, 2026.

ECONOMICS SCENARIO

Indias economic outlook remains resilient and growth-driven as of mid-August 2025. Recorded GDP growth of 6.5 % in FY 2024-25 (with 7.4 % in Q4) outpaced earlier expectations. Forecasts for FY 2025-26 anticipate growth between 6.3 % and 6.8 %. Fiscal consolidation remains a priority S&P upgraded Indias sovereign rating, and the government is on track to meet a fiscal deficit target of 4.4 % of GDP, alongside tax reliefs for households. While U.S. tariffs of up to 50 % pose a downside risk potentially cutting GDP by up to 0.6 % domestic demand continues to show strength, supported by infrastructure investment and consumption-led recovery. Structural reforms, The push for manufacturing, and large-scale infrastructure projects bode well for long-term growth. The company remains vigilant to geopolitical trade challenges while confident in the supportive economic backdrop.

COMPANY OVERVIEW

During the year(s), the Company divested its operating undertakings pursuant to sale of its businesses. Pending the identification of new growth opportunities, surplus funds arising from such divestments have been deployed in treasury and other investment avenues in accordance with the applicable provisions of the Companies Act 2013 and other regulatory requirements. The Company continues its trading activities

OPPORTUNITIES

The Company enters the next phase of its journey with a debt-light balance sheet, substantial liquidity and the flexibility to pursue new growth and attractive opportunities. The strong financial position provides the Company with the ability to evaluate opportunities without immediate capital constraints and to respond swiftly to favourable market conditions.

Risks and Challenges

The Board recognises that identifying and executing suitable investment opportunities requires careful evaluation and disciplined capital allocation. The key challenges include valuation risks, regulatory developments, macroeconomic uncertainties, market volatility and the ability to identify the opportunities that align with the Companys strategic objectives. The Company has a Risk Management Policy, which provides overall framework of Risk Management in the Company. The Board of Directors is responsible for the assessment, formulation and implementation of guidelines, managing key risks, risk minimization procedures and periodicals review.

SEGMENT WISE PERFORMANCE:

Your Company has identified segments reporting in terms of IND - AS 108 issued by Institute of Chartered Accountants of India (ICAI). The following are the abridged results of the segments:

Standalone Results:

Segment(s)	Segment Revenue (Rupees in Lakhs)	Segment Results Profit / (Loss) from each segment before interest and tax (Rupees In Lakhs)
Continuing Operations:
Trading	1620.22	4.59
Discontinued Operations
Packaging	8261.50	462.23
Profit after tax from slump sale of discontinued operations	-	(199.85)
Petrochemical	2748.09	7.65

Consolidated Results:

Segment(s)	Segment Revenue (Rupees in Lakhs)	Segment Results Profit / (Loss) from each segment before interest and tax (Rupees In Lakhs)
Continuing Operations:
Trading	4214.73	41.21
Packaging	-	(166.31)
Discontinued Operations
Packaging	8261.50	1065.49
Petrochemical	2748.09	7.65
Profit after tax from slump sale of discontinued operations	-	(199.85)

Key Financial Ratios:

Details of key financial ratios with significant changes (25% or more as compared to previous financial year) are as under:

Key Ratio	2025-26	2024-25	Variance	Reason
Current Ratio	5.98	4.65	28.44	Due to decrease in liability
Debt -Equity Ratio	0.00	0.01	-66.13	Due to Decrease in Debt
Debt Service Coverage Ratio	3.03	0.14	2055.59	Due to repayment of debts
Return on Equity Ratio	0.01	0.13	-93.18	Due to decrease in profit
Inventory Turnover Ratio	6.50	4.79	35.62	Due to sale of undertaking during the year
Trade Receivable Turnover Ratio	3.64	3.74	-2.79	Not applicable
Trade payable Turnover Ratio	4.08	5.56	-26.60	Due sale of undertaking during the year
Net capital Turnover Ratio	0.67	2.18	-69.26	Due to decrease in revenue
Net Profit Ratio	7.0%	36.8%	-81.00	Due to decrease in Profits
Return on Capital Employed	1.4%	13.9%	-89.76	Due to decrease in Profits
Return on Investment	5.0%	5-6%	NA	-

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

Your Company has a system of internal controls to safeguard the Companys assets against loss from unauthorized use and ensure proper authorization of financial transactions. The Company also has budgetary control system to monitor all expenditures against approved budgets on an ongoing basis. The Company maintains a system of internal controls designed to provide assurance regarding the effectiveness and efficiency of operations, the reliability of financial controls and compliance with applicable laws and regulations as applicable in the various jurisdictions in which the Company operates. The Company has in place adequate internal control systems and procedures covering all the operational, financial, legal, and compliance functions. The structured internal audit process charged with the task of ensuring reliability and accuracy of the accounting and of the other operational data.

The Company has a system of monthly review of businesses as a key operational control wherein the performance of units is reviewed against budgets and corrective actions are taken.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

This has been dealt in Directors Report.

HUMAN RESOURCES / INDUSTRIAL RELATIONS:

The Company has been very proactive to support its entire work force at all the levels in best possible manner. Human resource is considered as key to the future growth strategy of the Company and looks upon to focus its efforts to further align human resource policies, processes and initiatives to meet its business needs.

Industrial relations at all the units and locations are harmonious during the year under review.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities, laws and regulations. Important factors that would influence the Companys operations include cost of raw materials, tax laws, interest and power cost, economic developments and such other factors within the country and the international economic and financial developments.