Roni Households Ltd Management Discussions

The discussion hereunder covers Companys performance and its business outlook for the future. This outlook is based on assessment of the current business environment and Government policies. The change in future economic and other developments are likely to cause variation in this outlook.

The Managements views on the Companys Performance and outlook are discussed below:

ECONOMIC REVIEW:

Global Economy:

Global growth is slowing due to a substantial rise in trade barriers and the pervasive effects of an uncertain global policy environment. Growth is expected to weaken to 2.3 percent in 2025, with deceleration in most economies relative to last year. This would mark the slowest rate of global growth since 2008, aside from outright global recessions. In 2026-27, a tepid recovery is expected, leaving global output materially below January projections. Progress by emerging market and developing economies (EMDEs) in closing per capita income gaps with advanced economies and reducing extreme poverty is anticipated to remain insufficient.

The outlook largely hinges on the evolution of trade policy globally. Growth could turn out to be lower if trade restrictions escalate or if policy uncertainty persists, which could also result in a build-up of financial stress. Other downside risks include weaker- than-expected growth in major economies with adverse global spillovers, worsening conflicts, and extreme weather events. On the upside, uncertainty and trade barriers could diminish if major economies reach lasting agreements that address trade tensions. The ongoing global headwinds underscore the need for determined multilateral policy efforts to foster a more predictable and transparent environment for resolving trade tensions, some of which stem from macroeconomic imbalances.

Global policy efforts are also needed to confront the deteriorating circumstances of vulnerable EMDEs amid prevalent conflict and debt distress, while addressing longstanding challenges, including the effects of climate change. National policy makers need to contain risks related to inflation as well as strengthen their fiscal positions by raising additional domestic revenues and re-prioritizing spending. To facilitate job creation and boost long-term growth prospects in EMDEs, reforms are essential to enhance institutional quality, stimulate private investment growth, develop human capital, and improve labor market functioning. (source: https://openknowledge.worldbank.org/server/api/core/bitstreams/ae99c04a-95cd- 4847-bbdd-824975f21c02/content)

Indian Economy Outlook:

India projected to maintain fastest growth rate: World Bank holds FY26 growth at 6.3%; global growth rate forecast cut to 2.3%. India will remain the fastest-growing major economy in 2025-26 with a projected GDP expansion of 6.3%, the World Bank said in its latest Global Economic Prospects report, while warning that rising global trade barriers and weaker demand from key export partners are likely to dampen external sector momentum. The projection for India remains unchanged from the World Banks April estimate but marks a downward revision from the earlier January forecast of 6.7%. The multilateral lender cited subdued industrial growth and soft export demand as key reasons for the downgrade, though construction, services and rural consumption were seen holding steady, PTI reported.

"India is projected to maintain the fastest growth rate among the worlds largest economies," the World Bank stated, noting that even with the pressures on trade, the Indian economys fundamentals remain relatively strong. The global outlook, however, was more pessimistic.

For India, the World Bank expects GDP growth to accelerate slightly to an average of 6.6% over FY27-28, aided by a rebound in exports, especially in services, and continued momentum in construction and consumption. (Source:https://timesofindia.indiatimes.com/business/india-business/india-proiected-to-maintain-fastest- growth-rate-world-bank-holds-fy26-growth-at-6-3-global-growth-rate-forecast-cut-to-2 3/articleshow/121757019.cms )

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Household Product Market size was valued at USD 330.79 Billion in 2024 and the total Household Product revenue is expected to grow at a CAGR of 3.6% from 2025 to 2032, reaching nearly USD 438.96 Billion.

Household market report projects that the home and household sector will reach ~US$237 billion by 2030 at a CAGR of over 10 percent. The growth is fuelled by increasing disposable incomes, shifting consumer preferences and a growing focus on comfort and convenience across product categories.

The home and household market is witnessing strong demand, particularly in tier 2 and tier 3 cities that are emerging as growth hubs. High disposable incomes, the rise of digital platforms, easy access to credit, and young consumers seeking modern designs, home renovations and personalisation, which provide tailored offerings to consumers, lead this demand.

Sustainability is becoming a central concern for Indian consumers, with rising demand for energy-efficient appliances and eco-friendly kitchenware. Manufacturers are increasingly investing in water-saving bathroom fittings, sustainable kitchen solutions and energy-efficient technologies to cater to eco-conscious consumers. This trend, coupled with government policies such as the Production Linked Incentive (PLI) scheme, Pradhan Mantri Awas Yojana (PMAY), SMC, UJALA and PM Mitra, is driving demand and attracting investments in the home and household sector.

(Source : https://www.deloitte.com/in/en/about/press-room/urbanisation-omnichannel-retail-drive-indias-household-market.html)

Source: https://www.thebusinessresearchcompany.com/report/plastic-products-global-market-report

OUR BUSINESS:

Our business was originally being run as a proprietorship named Roni Enterprises. Further, our company is incorporated on 9th October 2017, as a private limited company under the name Roni Household Private Limited under the provisions of the Companies Act, 2013 with the Registrar of Companies, Mumbai with a vision to corporatize our business. On March 01, 2018, our Company was converted into public limited company and the name of our company changed to Roni Household Limited. A Business Takeover Agreement dated April 5, 2018 has been entered into to give effect to the takeover of the business of Roni Enterprise (Proprietor Harish Sirwani).

Our Company currently trades in plastic granules and plastic household products which includes tub, buckets, ghamela etc. and manufacturing plastic products for household use. We have taken a land on lease in MIDC, Jalgaon, for setting up the manufacturing unit. Our core philosophy is rooted in quality, sustainability, and innovation. We are committed to building a vertically integrated business that bridges trading expertise with inhouse production capabilities. Our future growth strategy includes expanding our product line, enhancing production efficiency, and exploring new markets both domestically and internationally. The Company is also investing in robust operational systems and quality controls to ensure that we meet the evolving demands of consumers while maintaining compliance with regulatory standards. Looking ahead, Roni Household Limited aims to emerge as a leading name in the Indian plastic household segment, known for its product durability, affordability, and customer-centric approach. Through a blend of traditional values and modern enterprise, we strive to deliver value to our stakeholders and contribute meaningfully to the Indian manufacturing ecosystem.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

key factors driving growth:

Indias home and household sector is expected to witness robust growth, driven by the following factors.

• Premiumisation is on the rise. Growing demand for luxury homes and innovative branded products is pushing companies to enhance consumer engagement and brand strength.

• The value segment remains crucial as the middle-class market drives volumes, offering significant potential for brands to expand their presence.

• The shift towards omnichannel and quick commerce is transforming how consumers shop, making it essential for businesses to deliver seamless, connected experiences across digital and physical platforms.

• Technology is becoming a key differentiator, with brands using VR, AI and personalised experiences to elevate consumer satisfaction and brand advocacy.

• Rising disposable income: Indias per capita disposable income reached US$2,500 in FY23, marking a 13 percent growth over the last year, driving the demand for premium products.

• Growth in real estate: The real estate sector is expected to post a 25 percent CAGR, reaching ~US$1 trillion by FY29, spurred by the demand for second homes and large properties and boosting household product sales

• Increased private consumption: With private consumption accounting for 63 percent of the GDP in 2023, India is set to become the third-largest consumer market globally by 2030.

• Shifting consumer preferences: Easier credit access enables young buyers to invest in premium and niche home products, emphasizing quality and customisation.

• Role of influencers: Interior designers and social media influencers shape consumer choices by sharing design trends and innovative materials, elevating potential buyers aspirations.

• Favourable government policies: Government initiatives, such as the PLI scheme, PMAY, SMC, UJALA and PM Mitra, have significantly enhanced capacity, stimulated demand and attracted investments in the home and household sector.

• Shifting consumer preferences: Easier credit access enables young buyers to invest in premium and niche home products, emphasizing quality and customisation.

(Source: https://www.deloitte.com/in/en/about/press-room/urbanisation-omnichannel-retail-drive-indias-

household-market.html )

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has adequate internal control procedures commensurate with its size and nature of business in India. The Company has clearly laid down policies, guidelines and procedures that form a part of the internal control systems. The adequacy of Internal Control Systems, which encompasses the Companys business processes and financial reporting systems, is examined by the management at regular intervals.

The Company has maintained internal control system in order to identify weaknesses and suggest improvements for better functioning. The observations derived are regularly noted by the management and relevant steps are taken to mitigate the same in order to ensure effective functioning within the Company.

OUTLOOK:

Roni Households Limited operates in the trading sector, specializing in plastic granules and various household plastic products like tubs, buckets, and ghamelas. Our product portfolio includes polyethylene terephthalate (PET), a popular plastic variant used extensively in rigid packaging applications. Our vision is to leverage Indias competitive advantage in the plastic sector to boost exports. Our mission is to focus on sustainable practices, innovation, aligning with the governments initiatives to promote a circular economy. We are committed to developing eco-friendly products and improving waste management infrastructure. By adopting sustainable practices and innovative technologies, we aim to achieve responsible growth and global competitiveness.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The key strategy will be focused around:

1. Financial strength & liquidity

2. Professional Management

3. Timely completion of Orders

4. Customer care

5. Brand Equity

Financial Performance and Review of Operations:

(Rs. In Lakhs.)

Particular	Standalone- Year Ended 31/03/2025	Consolidated- Year Ended 31/03/2025	Standalone- Year Ended 31/03/2024	Consolidated- Year Ended 31/03/2024
Revenue From Operations	778.12	1715.38	768.28	1685.81
Other Income	7.16	7.16	87.25	87.25
Total Income	785.28	1722.54	855.54	1773.05
Less: Total Expenses before Depreciation, Finance Cost and Tax	638.25	1574.47	697.82	1614.09
Profit before Depreciation, Finance Cost and Tax	147.04	148.07	157.72	158.96
Less: Depreciation	46.82	46.82	51.95	51.95
Less: Finance Cost	19.78	19.80	18.85	19.01
Profit Before Tax	80.44	81.45	86.92	88.00
Less: Current Tax	21.52	21.78	10.21	10.49
Less: Deferred tax Liability (Asset)	(9.72)	(5.08)	18.50	8.91
Profit after Tax	68.65	64.75	58.21	68.60

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE:

Ratio	Figures as at 31.03.2025	Figures as at 31.03.2024	% Change	Reason
Current Ratio	7.99	5.47	46.21%	Due to Increase in Borrowings
Debt-Equity Ratio	0.29	0.27	8.19%	NA
Debt Service Coverage Ratio	(0.97)	8.37	-111.60%	Due to increase in borrowing during the year.
Return on Equity Ratio	0.08	0.17	50.32%	Due to Company has raised equity through bonus share during the year.
Inventory turnover ratio	0.82	3.29	-75.04%	Due to Increase in average inventory.
Trade Receivables turnover ratio	1.11	1.72	-35.20%	As there is increase in Average Trade Receivables
Trade payables turnover ratio	5.76	134.39	-95.72%	As there is Lower Average Trade Payables and increase average inventory.
Net capital turnover ratio	0.55	0.54	1.51%	NA
Net profit ratio	0.09	0.08	-16.44%	NA
Return on Capital employed	0.06	0.07	9.23%	NA
Return on Net Worth	0.04	0.04	-12.96%	NA
Net Profit Margin	0.09	0.07	-28.48%	Higher Profit Compare to Last year
Operating Profit Margin Ratio	0.19	0.18	-1.57%	NA

DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements of the Company have been prepared in accordance with Accounting Standard ("AS") notified under the Companies (Accounting Standards) Rules, 2021 read with section 133 of the Companies Act, 2013.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS:

The Companys relations with the employees continued to be cordial and harmonious with its employees. It considers manpower as its assets and that people had been driving force for growth and expansion of the Company. The Company acknowledge that its principal assets is it employees. The Company has continued its efforts in building a diverse and inclusive workforce.

The Company employees including factory workmen are employed daily wages basis. Hence, as on March 31, 2025 there was no employees on roll in the Company. The Company will continue to create opportunity and ensure recruitment of diverse candidates without compromising on meritocracy.

CAUTIONARY NOTE:

Statements in this Report, describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. These statements are subject to certain risks and uncertainties. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results may be different from those expressed or implied since the Companys operations are affected by many external and internal factors, which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.

Registered office:	For and on behalf of Board of Directors
Plot No. F - 55, Addl. MIDC Area,	Roni Households Limited
Ajanta Road, Jalgaon - 425003, Maharashtra.	CIN: L82990MH2017PLC300575
	Sd/-	Sd/-
Place: Jalgaon	Nidhi Harish Sirwani	Harish Manohar Sirwani
Date: August 04, 2025	Non-Executive Director	Chairman and Managing Director
	DIN:07941219	DIN: 07844075