Roopa Industries Ltd Management Discussions

Annexure - III

Company overview:

Roopa Industries Limited was incorporated in the year 1985 and operates in the segment of manufacturing and marketing of bulk drugs and intermediaries.

Indian Pharma Industry and developments:

Indian Pharmaceutical market has witnessed growth in both acute and chronic dieses segments. The major reason for the growth is increase in the incident of the chronic diseases and its early detection, but still the acute disease segment dominates market share in the Indian pharmaceutical industry. Increasing urbanization, lifestyle changes and stress are responsible for the higher incidents of chronic deceases.

Opportunities and Threats

1. There is growing demand for Triphenyl Phosphine(TPP) in the international as well as in local market.

2. The raw material prices are uncertain in the market. Any steep upward prise rise would affect the profitability of the unit.

3. The import of Triphenyl Phosphineoxide(TPPO)and Triphosgene for the manufacture of Triphenyl Phosphine(TPP)may affect the profitability of the Company due to exchange fluctuations.

Product wise performance

There was increase in performance in case of Triphenyl Phosphine (TPP), Iminodibenzy (IDB), Iminodibenzyl Carbonyl chloride(IDBCC), when compared to the previous years.

Demand outlook:

The key drivers of growth include:

• Rising healthcare awareness leading to an increase in spending on medicines

• Changing life-styles leading to growing incidence of chronic ailments

• Improving health insurance coverage driven by various measures being planned/ implemented by the Indian government to bring 80% of the population under health insurance cover.

• The company is focusing on brand building and customized marketing to suit to different customers and segments especially with its main product as TPP

Risks and concerns:

The key challenges for the Indian pharmaceutical industry include the following:

• Ensuring compliance with global GMP standards; this will involve continuous improvement in the systems and processes as well as training of the workforce.

• Government-mandated price controls on pharmaceutical products

• Increasing competition from new entrants and expanding large/medium industries.

• Credit sales demanding more working finance.

• Maintaining inventories to meet sudden & urgent requirements by buyers, thus flooring available resources.

• Continuous R & D for company effectiveness as the competition is from domestic players as well as global market such as China.

The company manages the risk through careful market research for selection of product and by continuous monitoring. The Company has consistently supported Research & Development (R&D) for sustainable value creation.

Manufacturing Facilities

The Companys key priority is to ensure world-class quality in process and operations in all its manufacturing facilities. The Company has engaged professional and technical persons in the key positions and ensuring quality production and timely delivery of goods.

The Company focussed its core business on TPP and some intermediaries. During the year the Company recorded a sale turnover of Rs.12,068.70 lakhs

Internal Control System and Its Adequacy

The Company has adequate Internal Control Systems and Procedures with regard to purchase of Stores, Raw Materials including Components, Plant and Machinery, equipment, sale of goods and other assets. The company has clearly defined roles and responsibilities for all managerial positions and all operating parameters are monitored and controlled. The Company designs and maintains accounting and internal control systems to provide reasonable assurance at reasonable cost that assets are safeguarded against loss from unauthorized use or disposition, and that the financial records are reliable for preparing financial statements and maintaining accountability for assets. These systems are augmented by written policies, an organizational structure providing division of responsibilities, careful selection and training of qualified personnel, and a program of internal audits. The company has an Internal Audit System commensurate with its size and nature of business. Our Internal Auditors of the Company give periodic reports. Internal Auditors are reviewed in the meeting of the Audit Committee of the Board. Compliance with laws and regulations is also ensured and confirmed by the Internal Auditors of the Company. Standard operating procedures and guidelines are issued from time to time to support best practices for internal control.

Financial Performance & Operational Performance:

A. FINANCIAL HIGHLIGHTS:

Capital Structure:

The Authorised Share Capital of the Company is Rs. 900 lakhs comprising of 90,00,000 Equity Shares of Rs.10/- each.

The Paid up Capital of the Company is Rs. 786.55 lakhs comprising of 78,65,520 Equity Shares of Rs.10/- each.

Other Equity:

The Other Equity of the Company as on 31.03.2025 stand at Rs. 962.89 lakhs as compared to Rs. 760.79 lakhs in the previous year.

Property, Plant & Equipment:

Property, Plant & Equipment as on 31.03.2025 is Rs 881.08 lakhs as compared to Rs. 961.83 lakhs in the previous year.

Inventories:

Inventories, as on 31st March, 2025, is Rs.3614.72 lakhs as against Rs. 2516.23 lakhs in the previous year.

Trade Receivables:

Trade Receivables increased to Rs. 1,299.56 lakhs as on 31st March, 2025 as against Rs. 834.76 lakhs in the previous year. These receivables are considered good and realizable.

Cash and Cash Equivalents:

Cash and Cash Equivalents stood to Rs.338.20 lakhs as against Rs.297.76 lakhs in the previous year and the balances deposited with banks as Security stood at Rs.123.99 lakhs as on 31st March, 2025 and Rs. 116.88 lakhs in the previous year.

Loans:

Non-current Loans as on 31st March, 2025 is Rs.35.00 lakhs as against Rs. 32.26 lakhs in the previous year.

Current Liabilities:

Current liabilities for the F.Y 2024-25 is Rs. 5075.12 lakhs as against Rs. 4256.01 lakhs in the previous year.

B. OPERATIONAL RESULTS:

Turnover:

During the year 2024-25, the turnover of the Company is Rs. 12,068.70 Lakhs as compared to Rs. 7,042.62 Lakhs in the previous year.

The Income from other sources as on 31 st March, 2025 is Rs.229.66 Lakhs as compared to Rs. 112.75 Lakhs in the previous year.

Depreciation:

The Company has provided a sum of Rs.85.45 lakhs towards depreciation for the year as against Rs. 87.18 lakhs in the previous year.

Provision for Tax:

The Company has provided a sum of Rs. 76.52 Lakhs towards Income Tax provision for the current year.

Profit after Tax:

The Profit of the Company after tax is Rs. 203.49 lakhs as against Rs. 151.91 lakhs in the previous year.

The total comprehensive income for the year stood at Rs. 202.10 lakhs as compared to Rs. 153.03 lakhs in the previous year.

Human Resource Development and Industrial Relations:

The Company has a team of able and experienced staff and executives and the relation with the employees remained cordial throughout the year. Its management training schemes strive to develop business managers of tomorrow. In house training is given to the employees to induce contribution for enhanced productivity and development programmes for all levels of employees are being given as the company considers human resources are invaluable asset. As on 31st March 2025 the company has a total strength of 51 employees.

Significant Changes in key financial ratios

S. No.	Ratios	31 March, 2025	31 March, 2024
i	Debtors Turnover	11.52	6.29
ii	Inventory Turnover	4.01	4.24
iii	Interest Coverage ratio	2.15	2.03
iv	Current ratio	1.33	1.14
v	Debt Equity Ratio	1.90	1.66
vi	Operating Profit margin	0.04	0.07
vii	Net profit margin	0.02	0.02
viii	Return on net worth	0.12	0.10

DISCLOSURE OF ACCOUNTING TREATMENT:

During the year under review, in the preparation of financial statements, there was no treatment different from that prescribed in an Accounting Standard. The accounting standards has been followed.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the Companys objective, projections, estimates, expectations may be “forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand / supply and price conditions in the domestic and overseas markets in which the Company operates changes in the Government regulations, tax laws and other statutes and incidental factors.

	By order of The Board of Directors
	Sd/- T.G. RAGHAVENDRA
	Chairman and Managing Director
Date : 03.09.2025	(DIN : 00186546)
Place : Hyderabad
Registered Office:
17/745,Alur Road, Adoni-518301,
Kurnool Dist., Andhra Pradesh.
Corporate Office:
3rd Floor, TGV Mansion, Above ICICI Bank,
6-2-1012, Khairatabad, Hyderabad-500004, Telangana.
Tel No.: +91 9154151038
Email: info@roopaindustries.com,
https://www.investorsatril.com