Rishiroop Ltd Management Discussions

INDUSTRY STRUCTURE

The rubber industry continues to be a vital component of the Indian economy, supporting a wide range of manufacturing and industrial activities. India ranks among the leading global players in the rubber sector, being one of the largest producers and consumers of natural rubber and a major consumer of synthetic rubber. The domestic rubber market was valued at approximately USD 3.3 4.2 billion in recent years and is expected to grow at a CAGR of around 5 7% over the medium term, driven by increasing demand from automotive, infrastructure, and industrial sectors.

Indias rubber ecosystem is supported by a large base of micro, small, and medium enterprises

(MSMEs), particularly in the non-tyre segment, which accounts for a significant share of rubber goods manufacturing. Your Company operates in the polymer blends segment, catering primarily to this segment, which contributes over 50% of non-tyre rubber product output.

Polymer blends manufactured by the Company are used in a wide range of applications, including petrol hoses, LPG tubing, O-rings, seals and gaskets, printing and textile rollers, cable sheathing, and automotive components. Polymer compounding is a specialized and value-added process involving the formulation of rubber mixtures with appropriate raw materials to achieve desired processing characteristics and performance in end-use applications. It serves as a critical intermediate input for

MSMEs engaged in manufacturing diverse rubber products.

In addition to polymer blends, the Company also supplies complementary raw materials to its customers in international markets, thereby strengthening its product portfolio and enhancing its global footprint. The rubber industry continues to operate in a highly competitive and price-sensitive environment, largely due to the fragmented structure of both the user base and supply chain. Pricing pressures are further influenced by volatility in global crude-linked inputs and natural rubber prices.

ECONOMY AND MARKETS

The Indian economy remains one of the fastest-growing major economies globally and is estimated to grow at approximately 6.5% in FY 2025 26, supported by strong domestic demand, government capital expenditure, and resilience in industrial activity.

During the year under review, demand for the Companys products remained healthy, particularly from domestic industrial segments such as automotive components, infrastructure-linked products, and general engineering applications, which continue to drive rubber consumption.

However, the year also witnessed volatility in raw material prices, including softening trends in certain petrochemical-linked inputs. While this supported demand, it exerted pressure on realizations and margins across the value chain, including polymer compounding businesses.

FINANCE AND ACCOUNTS

The following financial review is intended to convey the managements perspective on the financial performance of the company at the end of the financial year 2025-26.

The financial statements have been prepared in compliance with the requirements of the Companies

Act, 2013 and generally accepted Accounting Principles in India.

FINANCIAL PERFORMANCE

Profit/(Loss) before taxation (PBT) for the current financial year 2025-26 is 863.35 lacs as compared to 1440.68 lacs for the previous year. During the year, other income in the year under review was 430.67 lacs as compared to 971.80 lacs in previous year, primarily due to sharp fall in value of the investment portfolio owing to global uncertainties impacting stock prices. Company Fixed Assets viz. Property, Plant and Equipment were valued at 131.56 lacs at the end of the financial year. Total inventories was 1950.12 lacs as compared to 1407.80 lacs in previous year.

OPPORTUNITIES AND THREATS

The Company continues to customize and promote its new grades of polymer blends to meet the requirements of domestic and international markets.

Due to stability in supply, there was fall in prices which has put the margins under pressure.

OUTLOOK

Going forward the situation is expected to remain stable and the Company is optimistic of growing the domestic business in the coming year.

RISKS AND CONCERNS

Weakening global economic conditions and persistent inflation remain a potential area of concern.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has an adequate system of internal control commensurate with the size and the nature of its business, which ensures that transactions are recorded, authorized and reported correctly apart from safeguarding its assets against loss from wastage, unauthorized use, and removal.

The internal control system is supplemented by documented policies, guidelines, and procedures.

The Companys internal auditors continuously monitors the effectiveness of the internal controls with a view to provide to the Audit Committee and the Board of Directors an independent, objective and reasonable assurance of the adequacy of the organizations internal controls and risk management procedures. The Internal Auditor submits detailed reports on quarterly basis to the Audit Committee and management. The Audit Committee reviews these reports with the executive management with a view to provide oversight of the internal control system.

The Company reviews its policies, guidelines, and procedures of internal control on an ongoing basis in view of the ever changing business environment.

SEGMENT

The primary segment that your Company operates in is Polymers and Polymer Compounds, and their related products.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES AND INDUSTRIAL RELATION FRONT

The Company is maintaining good relations with its employees and currently employs about 35 employees in all categories. The Company values and understands the need for continuous growth and development of its people in order to have greater productivity and provide job satisfaction and also equip them to meet growing organizational challenges. Your Company has genuine concern and top priority for safety and welfare of its employees.

INFORMATION TECHNOLOGY

Information Technology has become inevitable and integral to strategic planning and efficient management of operations. Your Company continues to strategically invest in Information Technology looking at it as vital to business growth.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Sr. No.	Key Financial Ratios	2025- 26	2024- 25	Variance	Variance %	Detailed Comments
i	Debtors Turnover	6.28	6.77	(0.49)	(7.27)	-
ii	Inventory Turnover	5.46	6.52	(1.05)	(16.17)	-
iii	Interest Coverage Ratio	-	-	-	-	-
iv	Current Ratio	2.59	3.08	(0.48)	(15.67)	-
v	Debt Equity Ratio	-	-	-	-	-
vi	Operating Profit Margin (%)	6.81	6.31	0.50	7.94	-
vii	Net Profit Margin (%)	7.91	6.54	1.37	21.01	The increase in ratio is due to higher realised gains & interest income on investments and im- proved operational margins in current year vis-?-vis previous year.
viii	Return on Networth (%)	4.81	7.91	(3.09)	(39.12)	The reduction in the ratio is due to the fact that the fair valua- tion of quoted investments held by the company has decreased on a comparative basis due to the overall subdued perfor- mance of the financial markets vis-?-vis previous year.

CORPORATE GOVERNANCE

Your Company is in compliance with the governance requirements provided under the Companies Act, 2013, the aforesaid Companies (Amendment) Act, SEBI (Listing Agreement and Disclosure Requirement)

Regulation, 2015, the applicable Secretarial Standards issued by the Institute of Company Secretaries of India and approved by the Central Government.

The Company has in place all the statutory committees as required by the law. Details of Committees are given in the Corporate Governance Report.

The policies framed and adopted by the Company in compliance with statutory requirements are available on the website of the Company http://www.rishiroop.in/investors/corporate-governance/ policies/

The SEBI (Listing Agreement and Disclosure Requirement) Regulations, 2015 also provided for formulating the Code of Conduct for members of the Board and Senior Management, Codes of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information and Code of Conduct to regulate, monitor and report trading by its employees and other connected persons. Your Company has formulated the above codes and abided with the regulations.

STATUTORY COMPLIANCE

A declaration is made at the Board Meetings regarding Compliance with provisions of various statutes after obtaining confirmation from all the units of the Company. The Company Secretary ensures compliance with the SEBI regulations and provisions of the Listing Agreement.

	For and on behalf of the Board of Directors
Place: Mumbai	Arvind Mahendra Kapoor
Date: 16.05.2026	Chairman
	DIN: 00002704
Registered Office:
W-75(A) & W-76(A)
MIDC Industrial Area
Satpur, Nasik – 422007
CIN - L25200MH1984PLC034093