jayshree chemicals ltd Management discussions

a) INDUSTRY STRUCTURE AND DEVELOPMENTS

In the aftermath of the pandemic, many companies engaged in trading have been affected by the increasing conservatism and indigenization. The ongoing Russia-Ukraine war since February, 2022 has further dented global trade sentiments, resulting in an inflation spiral. Despite these challenges the domestic business sentiment has remained buoyant and showed signs of stability amidst global slowdown. The Company which operates in chemical trading and wind power businesses has witnessed challenging year in the bygone year but expects to benefit from upbeat domestic economic indicators.

b) OPPORTUNITIES AND THREATS

The Company which started chemical trading activity since last financial year is optimistic about ever growing chemical business opportunities in India. A lot of chemical manufacturing have outlined their huge capex plans which are expected to boost chemical trading activities. The Company has positive outlook on its wind power generation business in view of Union Ministry of Power direction to Power Discoms to clear pending dues to power generators. However, both business verticals of Company are subject to inherent business risks associated with them. The chemical business is susceptible to price and demand fluctuations, while delayed payments from Power Discoms impacts the profitability of the Company.

c) PRODUCTWISE PERFORMANCE

In the wind power segment and Trading Segment, the Company has earned a revenue of Rs 894.94 Lakhs.

d) OUTLOOK

The Company is highly focused on increasing and expanding its present line of business by securing new clients and orders to increase its operational efficiency and performance.

e) RISK & CONCERNS

The primary risk for the Company is with the volatile domestic markets, any kind of uncertainty which might prevail in the markets, high competition because of new entrants in the market, inability to secure new clients or any new implementation of rules or regulations which might affect the functioning of the business in long run. However, the Company is taking all possible measure to cope with all these challenges by continuous efforts at cost optimization, process improvements, diversification of products and improving efficiencies. Further, the company is also monitoring the market trends and adapting to changing conditions as needed

(f) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains a robust system of internal controls to ensure that all transactions are authorized, recorded and reported correctly. Internal audits and checks are carried out regularly by Internal Auditors, an independent firm of Chartered Accounts. An Audit Committee headed by an independent and non- executive Director is in place to review the systems continuously.

(g) FINANCIAL & OPERATING PERFORMANCE

This has already has been discussed in the Directors Report.

(h) HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONTS

The Company maintained a positive and cordial relations with its employees and any issues that arise are solved across the table in a very congenial atmosphere. There were 8 employees as on 31st March 2023.

	On behalf of the Board
	Krishna Kumar Kothari	Rajesh Kumar Singhi
Place: Kolkata	(Director)	Director (Commercial) & CFO
Date: 15th May, 2023	(DIN- 00233174)	(DIN-01210804)