Vinyl Chemicals (I) Ltd Management Discussions

The Company’s current business activity is Trading in Chemicals.

Large number of companies are active in trading of chemicals. About 10-15 importers are regularly importing Vinyl Acetate Monomer (VAM) for trading into India.

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.

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

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.

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

Harmonious relations continued to prevail with the employees. The total number of employees as on 31^st March, 2024 were 12.

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

The Debtors Turnover Ratio for the Current Year is lower due to decrease in sales and increase in debtors. The Return on Net worth for the Current Year is lower due to decrease in profit after tax and marginal rise in average net worth on account of substantial profit of the previous years.