Crestchem Ltd Management Discussions

ANNEXURE - A

Industry Structure and Development:

Your company is engaged in the field of processing / manufacturing/trading and marketing, of specialty chemical ingredients, the Companies products Caprylic / Capric Triglycerides in oil form and powder form and its down steam products also finds uses in Industrial fields and such other uses.

Disturbances due to International event like Covid-19, Ukraine war etc. are being faced by the company. The prolonged ill effects including disturbances in the supply chain and such other disturbances continued till the date of this report. This is a kind of risk that the company may face even in years to come.

The implication of such continued disturbances is difficult to predict and hence it is difficult to project an outlook. As such it may not be possible at this point of time to provide business outlook for our Company and Industry in general. Opportunities are already there in the field of specialty chemicals, which is a growing field, in which the company operates.

Threats in terms of growing competition remains as usual in every field of business. But we are mitigating the risks by way of superior cost-effective technologies. Concerns due to the ongoing uncertain macro economic situation, remains, but Company, is maintaining keen vigil over the ever-changing situation and quickly adapt remedial actions.

The Operations have now stabilized during the financial year 2022-23 has resulted into improved financial performance and companys products are well accepted in domestic markets.

Your Company has adequate internal controls for its business across departments to ensure efficiency of operations, compliances with internal policies and applicable laws and regulations, protection of resources and assets and accurate reporting of financial transactions.

The internal control system is supplemented by extensive internal checking system, regular reviews by management and standard policies and guidelines to ensure the reliability of financial and all other records.

Your Company strives to maintain a professional work environment and emphasis the qualities of devotion and accuracy in caring out all activities of the Company.

The growth of our Companies business depends upon several factors as discussed above. Management is reasonably optimistic however, it is difficult to predict the market demand and its trend, due to critical economic conditions created by disturbances due to Covid -19, Ukraine war etc.

Certain statements in this report may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local, political or economic developments, technological risks i.e. that of Covid - 19 effect and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements.

The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.