Vinyl Chemicals (I) Ltd Management Discussions

The Companys current business activity is Trading in Chemicals.

Industry Structure and Developments:

Large number of companies are active in trading of chemicals. About 15 importers are regularly importing Vinyl Acetate Monomer (VAM) for trading into India.

Opportunities, Threats, Outlook, Risks and Concerns:

The Company is currently engaged in trading of chemicals, mainly VAM.

The price and demand of various chemicals undergo fluctuations. Similarly, there are fluctuations in the foreign currency rates. Hence, there is an inherent risk in trading activities.

Segment-wise Performance:

The Companys current business activity has only one primary reportable segment, namely trading in chemicals.

Internal Control Systems and their Adequacy:

The Company has adequate internal control procedures commensurate with the size and nature of its business. The internal control systems provide for policies, guidelines, authorisations and approval procedures.

The Audit Committee of the Board of Directors periodically reviews the internal auditreports,significantrisk area assessment and adequacy of internal controls for ensuring checks and balances. The Company has appointed Internal Auditors who regularly check the adequacy and effectiveness of all internal controls and suggest improvements.

Financial Performance:

The financial results and performance for the year are elaborated in the Directors Report.

Human Resources:

Harmonious relations continued to prevail with the employees. The total number of employees as on 31^st March, 2025 were 13.

Changes in Key Financial Ratios:

The details of changes in Key Financial Ratios are as under:

The Debtors Turnover Ratio for the Current Year is lower due to increase in average debtors.