**Arman Holdings Limited** is an Indian trading enterprise incorporated on **October 25, 1982**. Headquartered in India and listed on the **BSE Limited**, the company operates as a diversified trading house. Historically focused on the procurement and distribution of commodities, the company is currently undergoing a significant strategic pivot to expand its operational mandate into high-growth sectors including technology, media, and advanced financial services. --- ### **Core Business Segments & Revenue Performance** The company’s operations are classified into three reportable segments under **Ind AS 108**. While the **Precious Metal & Stones** segment remains the primary revenue driver, the company maintains the infrastructure to trade across multiple verticals. | Segment | FY 2024-25 Revenue (₹ in Lakhs) | FY 2023-24 Revenue (₹ in Lakhs) | FY 2022-23 Revenue (₹ in Lakhs) | | :--- | :--- | :--- | :--- | | **Precious Metal & Stones** | **366.88** | **384.21** | **414.72** | | **Textile Products** | **0.00** | **53.78** | **0.00** | | **Plastic & Related Products** | **0.00** | **1.34** | **0.98** | | **Total Revenue** | **366.88** | **439.33** | **415.70** | **Financial Performance Summary:** * **Revenue Trend:** Total income saw a **16.4% decrease** year-on-year in FY 2024-25. * **Profitability:** The company transitioned from a **Net Profit of ₹1.81 Lakhs** in FY 2023-24 to a **Net Loss of ₹1.51 Lakhs** in FY 2024-25. * **Recovery Strategy:** Management is actively working to restore profitability through a **new business vertical** and optimized trading in textiles and precious stones. --- ### **Strategic Pivot: Diversification & MOA Expansion** In **February 2026**, the Board initiated a transformative expansion of the company’s **Memorandum of Association (MOA)**. This shift moves Arman Holdings from a traditional trading house toward a diversified conglomerate model. #### **1. Media & Entertainment** * **Content Production:** Production of **TV serials, films, news, and talk shows** for **OTT platforms, satellite TV, web, and print**. * **Event Management:** Branding, fashion shows, exhibitions, and **electronic media designing**. #### **2. IT, AI & Emerging Technologies** * **Software Development:** System analysis, IT recruitment, and **Digital Transformation** consultancy. * **Advanced Tech:** Research and development in **Artificial Intelligence (AI)**, **Machine Learning (ML)**, **Deep Learning**, and **Computer Vision** to commercialize proprietary patents. #### **3. Chemicals, Pharma & Industrial Goods** * **Chemicals:** Manufacturing and trading of **heavy/light chemicals, petrochemicals, resins, and fertilizers**. * **Pharma:** Dealing in **APIs**, medical preparations, and industrial acids like **sulphuric acid and caustic soda**. #### **4. Financial & Commodity Trading** * **Market Operations:** Engagement in **hedging, spot trading, and forward commodity contracts** to manage arbitrage. * **Investment Mandate:** Seeking approval to invest in corporate bodies or grant loans up to **₹100 Crore**, utilizing **Section 186** of the Companies Act to exceed standard inter-corporate limits. --- ### **Sector Outlook: Gems & Jewellery Growth Drivers** Despite diversification, the **Precious Metal & Stones** segment remains the bedrock of current operations. The company is positioned to benefit from several macro-economic tailwinds in the Indian market: * **Market Scale:** India’s gems and jewellery exports reached **US$ 37.95 billion** in 2022-23, with a government target of **US$ 70 billion by 2025**. * **Regulatory Support:** * **100% FDI** permitted under the automatic route. * **Duty Reductions:** Import duty on Gold/Silver reduced from **12.5% to 7.5%**; cut and polished diamonds reduced to **5%**. * **Trade Agreements:** Leveraging the **UAE FTA (CEPA)** to boost export competitiveness. * **Formalization:** Transition of the industry from unorganized to **organized retail**, particularly in **Tier I & II** cities. --- ### **Operational Governance & Internal Controls** * **Leadership:** Operations are led by Managing Director **Mr. Deepak Kumar Babel**, who has been re-appointed for a **5-year term** (through **May 2030**). * **Asset Management:** Fixed assets undergo a **three-year phased physical verification**. Inventory is verified regularly, with discrepancies maintained below **10%**. * **Dematerialization:** **97.56%** of total equity share capital (**50,83,339 shares**) is held in dematerialized form. * **Audit Oversight:** **M/s Binu Singh** (Secretarial) and **M/s. Anurag R Gupta & Associates** (Internal) have been appointed to ensure compliance during the diversification phase. * **Working Capital:** The company operates without sanctioned bank limits exceeding **₹5 Crore**, relying on internal accruals and capital allocation. --- ### **Risk Profile & Mitigation** | Risk Category | Description | Mitigation / Status | | :--- | :--- | :--- | | **Market & Price Risk** | Exposure to **Interest Rate, Currency, and Commodity Price** volatility. | Continuous monitoring of **FVTPL** (Fair Value Through Profit or Loss) instruments. | | **Credit Risk** | Potential default on **Trade Receivables** and outstanding debit balances. | Management maintains **zero ECL (Expected Credit Loss)** allowance based on historical zero-debt trends. | | **Execution Risk** | Challenges in scaling the gold business and new AI/Media verticals. | Phased expansion and appointment of specialized secretarial/internal auditors. | | **Liquidity Risk** | Ability to meet short-term liabilities. | Audit confirms no material uncertainty for liabilities due within **one year** (as of August 2025). | | **Valuation Risk** | Use of **Level 3 Valuation** for unquoted equity shares. | Reliance on management judgment and standardized valuation techniques. | **Note on Reconciliations:** Certain **Debit Balances** remain subject to confirmation. Final adjustments to revenue or asset values will be processed upon the conclusion of these reconciliation cycles.