laffans petrochemicals ltd Management discussions

ANNEXURE B

OVERVIEW

Company is operating in the business of trading in specialty chemicals on whole sale basis through various distributors of the Company. During the year under review, the Company has put a focus on trading in various chemicals product and is striving to gain the market share ion very competitive market.

FINANCIAL PERFORMANCE OF THE COMPANY:

• Share Capital: The issued and paid-up share capital of the Company is Rs. 8,00,00,000/- (Rupees Eighty Lakhs only) consisting of 80,00,000 (Eighty Lakhs only) Equity shares of Rs.10/- each as on March 31, 2023.

• As on March 31, 2023 the reserves and surplus are Rs. 51,01,52,697 Secured loans

During the year under review Company had not borrowed any secured loan.

Result from operation

Total income of company during the F.Y 2022-23 was Rs. 16,65,92,481 despite Global Slowdown. Furthermore, the profit for the year was Rs 79,49,451 as against the loss of Rs. 1,75,07,136 for previous year.

Industry structure and development

Specialty chemicals

Internal control system

Company has adequate internal control procedures commensurate with the size of the company and of its business for the purchase of raw materials and fixed assets and for the sale of goods.

Human Resources

Company has good relations with its employees Insurance

Laffans Petrochemicals Limited has insured its assets and operations against all insurable risks including fire, earthquake, flood, and etc. as part of its overall risk management strategies. Safety, Health and Environment

At Laffans, safety is considered a high priority and all efforts are made to ensure safe working environment for employees. All probable incidents are analyzed and corrective actions are taken. Employees are trained in safe practices to be followed at work places at all the times.

Environmental Preservation

Quality of human life is the most important factor to sustain life and this could be achieved through preservation of natural environment. The Companys R & D Department continues to develop new shades in an environmentally sustainable manner. The Company always consumes eco-friendly Raw-materials, chemicals. The Company has also installed an Effluent Treatment plant for proper treatment of waste water. Your companys strength lies in consistent quality consciousness and eco-friendly awareness.

Material developments in Human Resources / Industrial Relations

The company has always considered human resources as the driving force for progress and success and they are the main assets of the company. Management is of the firm belief that the growth of the company is due to the continuous contribution from its manpower. The company has the required number of skilled and semi-skilled persons and it constantly tries to improve their quality and productivity and provides a congenial working environ-ment for them. The company is committed for continual improvement in all aspects of social standard, business and employees welfare to grow as an ethical business. We believe that harmony amongst employees, employer and business leads to socio economic improvement. The industrial relations continued to be extremely cordial during the year.

Risk Factor

The company is mainly dependent on imports from Gulf countries as the transit times often goes beyond 30 days the market price may fluctuate by the time the goods arrive for sale. The last year has seen many such fluctuations resulting in the company doing limited imports of chemical. The company therefore restrains from long term contacts.

Opportunity

The company is not dependent on any one product type and is constantly seeking never products based on local demand. The company as identified several Chinese firm to represent them in India through exclusive agency. The Indian chemical market continues to grow and cheaper import allows opportunities in this area.

Further increasing demand of specially chemicals, favorable government policy, GST regime would be beneficial for the business of the company in the upcoming years, future prospects/outlook

Your company is continuously working on strengthening the business. Your company has been successfully execut-ing major orders from prestigious customers and it has been enjoying the confidence of all products by reducing the various costs. The results of these initiatives are expected to improve overall profitability of the company further during the current year.