Incorporated in 1996, Bohra Industries Limited is a publicly listed company and an ISO
9001: 2008, ISO 14001: 2004 and OHSAS 18001: 2007 certified Company engaged in manufacture
of Phosphate fertilizers such as Single Super Phosphate (SSP) & Granulated Single
Super Phosphate (GSSP). Company also undertakes trading of Single Super Phosphate (SSP),
Granulated Single Super Phosphate (GSSP), Rock Phosphate and other fertilizers depending
upon the demand of the customer.
Till August, 2019 Manufacturing facilities were fully automated and PLC controlled. The
Company was well equipped with in-house testing laboratory to test from raw material to
finished products as per quality standards and relevant chemical composition as per the
required norms specified in Fertilizer
Control Order (FCO). Companys in-house testing laboratory regulates and monitors the
quality of fertilizers mixtures, packing, marking on the fertilizers bags. RA, as and when
assume control of Company shall run the Company.
INDIAN ECONOMY OVERVIEW:
Agriculture, in India, is the largest sector of economic activity. It provides food,
raw materials and above all, the employment to a very large proportion of population. The
national output depends on the output in agriculture, as it is one of the most dominating
sectors in India. For the same reason, it has to provide the capital required for its own
development and make available surplus for national economic development. At the same
time, the exports of primary produce earn valuable foreign exchange which can be used to
import capital goods for the development of industry and infrastructure. Because of all
these reasons, an improved and efficient agriculture is a necessity in our economy. The
vital role of agriculture arises out of the position the agrarian sector occupies in the
overall economy of the country. 80 percent per cent of the population resides in the rural
areas and 72 per cent of the work force depends on agriculture for their livelihood.
Agriculture is the back-bone of the Indian economy, and hence, the very existence of
economic activities of entire population in the country is dependent on the state and
health of its agriculture sector. Since last 40 years, the fertilizer industry in India
has grown tremendously. The Government is keen to see that fertilizer reaches the farmers
in the distant and hilly areas. This is the reason why it has been decided to decontrol
the prices, distribution and movement of phosphate and other fertilizers. Some steps are
implemented to assure an increase in the supply of chemical fertilizers at reasonable
prices. In India, Fertilizer Industry is accelerating fertilizer consumption by fixing, on
the one hand, low and similar price for identical nutrient in fertilizers, and on the
other hand providing the manufacturers ample compensation through the retention price and
subsidy scheme through NBS. Due to such corrective steps, the fertilizer nutrient demand
has gone up. Govt. has initiated DBT for farmers which would further push the consumption
in long run and ease up blocked funds of manufacturers with government and improve working
of the fertilizer sector.
OUTLOOK AND PROSPECTS:
Fertilizer is the most crucial substance to soil to improve plants growth and yield.
First used by ancient farmers and since then fertilizer technology has evolved
significantly in last few years as the chemical needs of growing plants were discovered.
Modern synthetic fertilizers are composed mainly of nitrogen, phosphorous and potassium
compounds and the secondary nutrients are added. Company has recently forayed into premium
Zincated SSP. The use of synthetic fertilizers has significantly improved the quality and
quantity of the food available today and additionally the governments ambitious target of
doubling the farmer income by 2022 will further boost the consumption of fertilizers.
(1) Industry structure and developments:
The fertilizer industry in India consists of three major players; The Government owned
Public Sector undertakings, Cooperative Societies like KRIBHCO, IFFCO and units from
Private sector. There are about 33 major producers producing N, NP and NPK fertilizers in
the country at present. There are about 106 SSP fertilizer manufacturers producing almost
3600K MT. The fertilizer industry of India had made constructive use of the fertilizer
subsidy provided by the Government of India to ensure that the country achieved reasonable
self-sufficiency in food grain production. The fertilizer industry has organized itself
through Fertilizer Association of India to coordinate with the Government of India to
achieve the macro-economic objectives related to agricultural sector and to provide other
services. Indian fertilizer industry has succeeded in meeting almost fully the demand of
all chemical fertilizers.
CONCERNS:
Our Company‘s future costs and revenues will be determined by demand/supply
situation, government, policies, subsidies available and prices of raw material.
Risk and Government policy risk, competition risk: In the fertilizer industry and
pretty much any other commodity. Companies revenue depends on fertilizer prices and the
quantity of fertilizer companies sell.
Fertilizer prices are driven by industry capacity, rivalry (competition among firms),
and marginal producers cost, proximity to customers, inventory, and demand. Demand, in
turn, is driven by fertilizer prices, crop economics, currencies, cycles, economic
activity, and macro factors like subsidy programmes of government. Crop economics consist
of factors like crop inventory, crop demand and supply, and crop prices, which depend on
economic activity, food consumption, diet patterns, crop yields, nutrient application,
weather, plantation, and energy consumption.
OUTLOOK:
Its universally accepted that the use of chemical fertilizer is an integral part for
raising the agricultural production to a higher level. Studies conducted by the Food and
Agricultural Organization of the United Nations (FAO) have established beyond doubt that
there is a close relationship between the crop yields and fertilizer consumption. More
over the nutritional requirement of different crops could not be fully met with the use of
organic manures like FYM and other bulky organic manures like neem cake, castor cake,
groundnut cake etc. for want of their availability in adequate quantities. And increasing
agriculture production by increasing cultivation area is no longer possible as cultivable
and left over is only marginal and decreasing. Further a considerable cultivable land is
being diverted year after year for housing and industrial etc. Hence self-sufficiency in
food lies in increasing the yield per hectare through adoption of modern agricultural
technology. Fertilizers have the advantages of fast movement in bulk and need based.
SEGMENT WISE PERFORMANCE
During the period under review, the company was not under operation and hence the total
revenue earned is NIL. There Profit/(Loss) after Tax (PAT) for the financial year 2022-23
is Rs. (293.89 Lakhs) as compared to the previous financial year Profit/(Loss) after Tax
Rs. (262.06 Lakhs).
OPPORTUNITIES
There is a compelling need for alternate fertilizers which will have lesser wastage and
reduced fertilizer usage while keeping the same or more yield. This opens up for new
investment with better return while ensuring food security. Business diversification like
Trading of fertilizer products will improve the bottom line of the company.
THREATS
High volatility in the prices of raw material resulting in an adverse impact on
production and marketing plans which eventually affects the bottom line of the company.
RISK AND CONCERNS
Global commodity prices, including prices for raw materials to manufacture fertilizers,
were at all-time High in FY2023 and this upward trend is expected in FY2024 as well.
The fertilizer sector still depends on subsidies from the government. Notwithstanding a
timely pay-out of Outstanding amount to all fertilizer manufacturers by the government in
the wake of a global commodity Price-hike, any delay in subsidy disbursement in future may
affect fertilizer manufactures.
INTERNAL CONTROL SYSTEMS
The Company has built adequate systems on Internal Financial Controls towards achieving
efficiency and effectiveness in operations, optimum utilization of resources, and
effective monitoring thereof as well as compliance with all applicable laws The internal
control mechanism comprises a well-defined organisation structure, documented policy
guidelines, predetermined authority levels and processes commensurate with the level of
responsibility and that same are adequate and operating effectively. The Audit Committee
reviews the reports of the Internal Auditors and monitors the effectiveness and
operational efficiency of these internal control systems. The Audit Committee gives
valuable suggestions from time to time for improvement of the Companys business
processes, systems and internal controls
FINANCIAL PERFORMANCE
The annexed Balance Sheet has given the members, the Companys performance in the year
under report.
HUMAN RESOURCES MANAGEMENT
The Companys belief in trust, transparency and teamwork improved employee efficiency
at all levels.
The Companys commitment to harmonious industrial relations resulted in enhancing
effectiveness of operations and enabled the achievement of international benchmarks in
tourism business The companys ongoing objective is to create an inspirational work
climate where talented employees engaged in creating sustained value for the stakeholders.
Training and orientation programs are being arranged periodically, to update the employees
in the work techniques. The overall human resources are positive and we would be able to
effectively achieve the desired objectives. The Company has developed an environment of
harmonious and cordial relations with its employees. As on March 31st, 2023,
the Company has a total of 5 full time employees across all its business segments.
Cautionary Statement:
Statements in the Management Discussion and Analysis Report describing the Companys
objectives, projections, estimates, expectations may be forward looking statements within
the meaning of applicable securities laws and regulations. Actual results could differ
materially from those expressed or implied. Important factors that could make a difference
to the Companys operations include, among other things, economic conditions affecting
demand/supply and price conditions in the domestic and overseas markets in which the
Company operates, changes in Government regulations, tax laws and other statutes and
incidental factors.
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