Vasundhara Rasayans Ltd Management Discussions

Vasundhara Rasayans Limited was incorporated in the year 1987. During the year 1990, the Company entered into the business of Antacid API facility offering product in paste, powder and micronised grade of powder. The shares of the Company were listed on Stock Exchanges w.e.f 2011. The Company has steadily grown over the years with a continued focus on customer satisfaction, evolving itself into countrys one of the most promising mid cap Companies.

The Company is the leading manufacturer and exporter of Antacids therapeutic category of Active Pharm Ingredients with annual capacity of about 1500 MT of powder or its equivalent products.

A) INDUSTRIAL STRUCTURE AND DEVELOPMENTS :

Antacid API being used mostly in combination, we offer wide range consistent high quality products under one roof with strong technical and logistic customer support. Some of the competitors have improved their plant standards hence the gap in quality between their product and our products has been reduced which has impacted the sales and we have tried to make this up by find new markets. Also the norms of environment as well as the standard of pharma industries are becoming stringent which also impacting business.

B) OPPORTUNITIES AND THREATS:

We are continuing our progress in business with Russia due to santions from European union and hopefully having established there presume that even when the war get over we would hopefully retain this market. However we have now competitors who are getting into our non-pharma business as well due to which there is price pressure which might impact profitability.

C) SEGMENT-WISE OR PRODUCT WISE PERFORMANCE :

During the year under review, the Company has recorded revenue of Rs. 3399.01 Lakhs and made a net profit of Rs. 424.62 Lakhs against revenue of Rs. 3701.84 Lakhs and net profit of Rs. 585.93 Lakhs in the previous financial year 2023-24.

The following segment wise turnover in percentage wise during the financial year 31.03.2025:

Sale of product: 3399.01 Lakhs

D) BUSINESS OUTLOOK:

WHO GMP has become major requirement of most of the overseas customer and the current plant requires a major revamp which would need not only large investment but also closure of the plant for several weeks. We are in discussion with the Lessor to workout arrangement of investment as well as long term leasing of the site for either them to take up the required improvement or we do this with our investment based on a long term leasing. In case this does not workout then we might have to find an alternate site or a contract manufacturing facility meeting the norms which also have to be cost effective. Not to waste time we have already started short listing of possible contract manufactures.

E) RISKS AND CONCERNS:

As the FDA have already had observations on the plant which requires major revamp without which it would be difficult to continue the Pharma business at this site. Also the Lessor also seems to expanding their activity and which might need space and we are already suffering due to shortage of storage space of raw material and intermediate products. Though we have 3 months notice period time clause from lessors and if the lessor decides on this this might impact the overall operations as even if we make fast arrangement with another plant not all the customers would be able to change or accept the change the site that fast. We are looking out for a new site where we can put up a new plant or go to a contract manufacturer with modern plant with possibly better location in terms of environmental compliances and minimum operating cost.

F) INTERNAL CONTROL SYSTEMS AND THEIR 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.

The Company has an Internal Audit System commensurate with its size and nature of business. M/s.S.B.Kabra & Co., a firm of Chartered Accountants, are acting as Internal Auditors of the Company. Planned periodic reviews are carried out by Internal Audit. The findings of Internal Audit are reviewed by the top management and by the Audit Committee of the Board of Directors. 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.

G) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE :

i) FINANCIAL PERFORMANCE:

Capital Structure:

The Equity Share Capital of the Company as on 31 st March 2025 is Rs. 3,17,82,000 comprising of 31,78,200 Equity Shares of Rs. 10 each fully paid

Other Equity:

The Other Equity of the Company for the 31.03.2025 year is Rs. 3238.02 lakhs as compared to Rs. 2876.01 lakhs in the previous year.

Property, Plant and Equipment:

During the year, the Company has added Fixed Assets amounting to Rs.6.19 lakhs making the gross fixed assets as on 31.03.2025 to Rs. 248.74 lakhs.

Inventories:

Inventories amounted to Rs. 187.77 lakhs as on 31 st March, 2025 and in the previous year was Rs. 173.42 lakhs.

Trade Receivables:

Trade receivables amounted to Rs. 415.38 lakhs as on 31 st March, 2025 as against Rs. 622.41 lakhs in the previous year.

Cash and Bank Balances:

Cash and Bank balances with Scheduled Banks amounted to Rs. 554.14 lakhs as on 31 st March, 2025 as against Rs 956.18 lakhs in the previous year.

Financial Assets – Loans (Non-Current):

Loans amounted to Rs 2445.99 lakhs as on 31 st March, 2025 as against Rs. 1531.92 in the previous year.

Financial Assets – Loans (Current):

The amount of Loans amounted as on 31 st March, 2025 is Rs. 00 lakhs as against Nil in the previous year.

Other Current Assets:

Other Current Assets amounted to Rs. 147.87 lakhs as on 31 st March, 2025 as against Rs. 82.62 lakhs in the previous year.

Current Liabilities:

Current Liabilities amounted to Rs. 694.66 lakhs as on 31 st March, 2025 as against Rs. 449.47 lakhs in the previous year.

ii) OPERATIONAL PERFORMANCE:

Turnover:

During the year 2024-25 the turnover of the Company (Net of GST) is Rs. 3399.01 lakhs and Rs. 3701.84 lakhs in the previous year.

Other Income is Rs. 235.07 lakhs as on 31 st March, 2025 and Rs. 194.12 lakhs in the previous year.

Depreciation:

The Company has provided a sum of Rs. 124.49 lakhs towards depreciation and amortisation for the year and Rs 88.785 lakhs in the previous year.

Net Profit:

The Net Profit of the Company after tax is Rs. 424.62 lakhs and the profit for the previous year is Rs. 585.93 lakhs.

Earnings per Share:

Basic Earnings per Share for the year ended 31 st March, 2025 is Rs 13.36 per share for Face Value of Rs.10 and Rs 18.44 per share for the previous year.

H) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Company believes that the quality of its employees is the key to its success in the long run and is committed to provide necessary human resource development and training opportunities to equip them with skills, which would enable them to adapt to contemporary technological advancements. Industrial Relations during the year continues to be cordial and the Company is committed to maintain good industrial relations through negotiations, meetings etc.

I) DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS: (Request the management to fill this)

Ratios	2025	2024	Change (%)
Debtors Turnover (no. of days)	8.8	5.19
Inventory Turnover (no. of days)	11.88	12.91
Current Ratio	5.82	7.75
Operating Profit Margin	34.84%	38.38%
Net Profit Marging	12.49%	15.83%
Return on Net Worth	11.94%	18.35%

J) CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the Companys Objectives and 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 economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, technological obsolescence, changes in the Government Regulations and Policies, Tax Laws and other Statutes and other incidental factors.

For and on behalf of the Board of Directors
	VASUNDARA RASAYANS LIMITED
Place: Secunderabad	SUNIL KUMAR JAIN	RAJESH POKERNA
Date: 04.09.2025	WHOLE-TIME DIRECTOR	MANAGING DIRECTOR
	DIN: 00117331	DIN: 00117365