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, 2025 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, 2025 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, 2025.

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, the Company completed the sale of its business undertaking(s). The transaction was executed in line with the strategic decision of the Board to unlock value for stakeholders. Pursuant to the sale, the Company has received the agreed consideration and is currently in the process of consolidation and optimal deployment of funds received.

The Board is actively evaluating various opportunities for efficient utilization of the consolidated resources, keeping in view the long-term interest of shareholders and compliance with applicable legal and regulatory requirements. Until such deployment, the funds are being securely maintained by investment(s).

OPPORTUNITIES AND THREATS

Opportunities

1. Capital Strength The sale of undertaking(s) has resulted in significant liquidity, providing the Company with the financial strength to explore new avenues.

2. Regulatory & Policy Push Supportive government policies open new avenues for investment.

Threats

1. Market Volatility Uncertainty in equity, debt, and real estate markets may affect returns on deployment of funds.

2. Inflation & Interest Rate Risks Rising inflation or fluctuating interest rates may erode value of idle funds.

3. Regulatory Risks Changing laws relating to investments, taxation, or foreign exchange may impact strategy.

4. Opportunity Cost Delay in redeployment of funds may result in loss of potential returns.

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 these segments:

Segment(s)	Segment Revenue (Rupees in Lakhs)	Segment Results Profit / (Loss) from each segment before interest and tax (Rupees In Lakhs)
Packaging Continuing Operations	12,591.31	453.51
Others	1230.95	(17.03)
Discontinuing Operations
Packaging	15,451.25	14215.11
Profit after tax from slump sale of discontinued operations	-	12314.24
Petrochemical	6552.27	186.71

Consolidated Results:

Segment(s)	Segment Revenue (Rupees in Lakhs)	Segment Results Profit / (Loss) from each segment before interest and tax (Rupees In Lakhs)
Packaging Continuing Operations	12591.31	378.76
Others	4668.52	(639.30)
Discontinuing Operations
Packaging	15451.25	3756.07
Petrochemical	6552.27	191.46
Profit after tax from slump sale of discontinued operations	-	12314.24

Analytical Ratio

For Analytical Ratio please refer note no. 67 of the notes to standalone financial statements.

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

Key Ratio	2024-25	2023-24	Variance	Reason
Current Ratio	4.65	1.82	155.12	Due to decrease in liability
Debt -Equity Ratio	0.01	0.20	(95.81)	Due to Decrease in Debt
Debt Service Coverage Ratio	0.14	2.57	(94.53)	Due to repayment of debts
Return on Equity Ratio	0.13	1.23%	926.18	Due to increase in profit
Net Capital turnover Ratio	2.18	3.30	(33.99)	Due to decrease in revenue
Net Profit Ratio	36.8%	2.4%	1425.62	Due to increase in profit
Return on capital Employed	13.9%	2.1%	557.60	Due to increase in profit

RISKS AND CONCERNS:

To sustain and grow in global market brings in uncertainties. Greater the uncertainties, higher the risk.

The Company has a risk identification and management frame work appropriate to it and to the business environment under which it operates. Risks are being identified at regular intervals by the Board.

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.

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.