Vikram Aroma Ltd Management Discussions

1. OVERALL REVIEW ON INDUSTRY STRUCTURE & DEVELOPMENTS:

The Company is in Chemical industry. The Company is leading in manufacturing and selling of Diphenyl Oxide. The Company is a dynamic futuristic public limited company involved in manufacturing, marketing and export of chemicals. The Company owns well established brands DPO-Diphenyl oxide. The overall performance during the financial year 2024-25 has been progressive.

• CREDENTIALS:

The Company is having, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 and Halal certificate and Kosher Certificate.

• INFRASTRUCTURE:

Vikram Aroma Limited have dedicated plant at Survey No.: 322, Paiki, At Indrad, Chhatal - Kadi Road, Tal-Kadi, Dist. Mehsana - 382715 India, for manufacturing Aromatic Chemical.

• India has a long tradition of chemical activities which is growing at rapid pace which shall directly help the Companys revenue to grow in foreseeable future.

• India has abundant supply of highly skilled manpower, scientists and technical personnel for which the salaries are considerably lower than the same in developed nations.

• The capital cost for setting up a decent world class facility is fraction of what it would cost in Western Countries. This makes the Indian Companies at the competitive position in the international markets.

• Import of goods from some of the large global sized plants may add to the competition for the Companys Products.

3. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

On the basis of the principles for determination of segments given in Indian Accounting Standard 108 "Operating Segments" and in the opinion of management, the Company is primarily engaged in the business of manufacturing of "Chemicals". All other activities of the Company revolve around the main business and as such there is no separate reportable business segment. However, the company has identified geographical segment as its secondary business segment, the details are as follows:

There is no transaction with single customer which amounts to 10% or more of the Companys revenue.

4. BUSINESS OUTLOOK:

The Company has achieved Chemical - DPO excellence by Discovery, Development, Manufacturing and Marketing of research based products since last three decades. Diphenyl oxide finds application as a perfumery component in detergents, soaps, toiletries and essence stick. Diphenyl oxide (DPO) is also used as a reaction solvent in the manufacture of drugs. DPO finds application in Heat transfer fluid. DPO is used in specialty surfactant which find application in textiles, mining, petroleum, agriculture etc. DPO is used in Fire retardant.

5. RISK AND CONCERN:

The companys raw materials are based on petrochemicals. Major fluctuations in the petroleum products can affect the companys performance.

6. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

Considering the size of the company, your company has adequate system of internal control to provide reasonable assurance that assets are safeguarded and protected from unauthorized use or deposition. The management continuously reviews the internal control systems and procedure for efficient conduct of business. A strong system of internal audit committee of the Board has strengthened the internal control within the organization.

7. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE.

Total turnover for the year ended on 31st March, 2025 was Rs. 2813.58 lacs. It was mainly on account of improvement in manufacturing techniques and sales promotion drive. Better working capital management was also one of the emphasis on which proper weight age was laid upon.

8. HUMAN RESOURCE DEVELOPMENT:

Your Company treats its "Human Resources" as one of its most significant assets. The Company continues its focus on retention through employee engagement initiatives and provides a holistic environment where employees get opportunities to realize their potential. A number of programs that provide focused people attention are currently underway. Your Companys thrust is on the promotion of talent internally through job rotation and job enlargement. The Companys Health and Safety Policy commits to provide a healthy and safe work environment to all employees.

9. 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 THEREFOR, INCLUDING:

Interest Coverage Ratio has improved as the company has narrowed the gap between operating losses & interest obligation.

The increase in short term loan during the year has resulted in an increase in the debt equity ratio.

The combination of lower profitability & increase in short term debt has resulted in a negative Debt Service Coverage Ratio.

The return on equity is declined as loss of the company increased.

The return on capital employed reduced due to net profit of the company has reduced. The operating profit has reduced resulted in reduction of the operating profit margin.

The net profit has reduced so net profit margin has reduced.

The return on net worth during the current financial year was (7.01%) compared to (1.90%) during the previous financial year. As there was increase in Losses during the year ratio has increased.

The Performance of the company for the year under review was satisfactory.

Statements in this report on Management Discussion and analysis may be forward looking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could however, differ materially from those expressed or implied. Important factors that could make a different to the Companys operations include global and domestic demand supply conditions, finished goods prices, raw material cost and availability and changes in government regulation and tax structure, economic development within India and the countries with which the company has business contacts and other factors such as litigation and industrial relations. The Company assumes no responsibilities in respect of forward looking statements which may be amended or modified in future on the basis of subsequent developments, information of event.