Indian Link Chain Manufacturers Ltd Management Discussions

(As per Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015) a) Overview

The Indian Link Chain Manufacturers Limited is a Listed Company Register on Bombay Stock Excahnge earlier enaged in trading and distribution of steel chains & chemicals etc. Mr Vishal Thakkar is Managing Director. After Covid-19 crises, Performance of Companys increased as compared to previous financial year, the Comany has earned a sum of Rs 8,96,999 (Eight lakh Ninety Six Thousand Nine Hundred and Ninety Nine) Profit. And where as Revenue from opearation earned by the Company is 26,16,463 (Twenty Six Lakh Sixteen Thousand Four Hundred and Sixety Three). The Company has expand and shifted its operations from trading in chains to trading trading to all kinds of Crops, Gains, Pulses, Species, Dry Fruits etc. As on the year end, the Company was still in process to establish its operations.

b)Industry Structure and development:

India is one of the major players in the agriculture sector worldwide and it is the primary source of livelihood for 55% of Indias population. India has the worlds largest cattle herd (buffaloes), the largest area planted for wheat, rice, and cotton, and is the largest producer of milk, pulses, and spices in the world.

Your Company was Previously engaged in the trading and distribution of steel chains & chemicals. While there are handful manufacturers of steels chain and consumption is also limited to limited segments of economy, manufacturing and consumption of chemicals is a very big field. Further Company has changed its object clause which is approved by the member of the Company as on 65^th Annual General Meeting.

The industry for of all kinds of organic food products, fruits, vegetables, dairy, forestry, agricultural, horticulture, tea, coffee, rubber, mineral, cotton, silk, cereals, cotton - silk, vetiveria, wood, lac culture, timber, fuel, floriculture,etc if way more diversified and larger as compared to the previous operations which were restricted to industrial usage.

Opportunities

? Increased investment: Increased investment in agriculture could help address some of the challenges the sector faced and thereby shall ceate a larger scope for enlarged operations.

? Modern farming technology: Introducing modern farming technology could help improve productivity.

? Improved storage facilities: Improved storage facilities could help reduce post-harvest losses.

Threats:

? Climate change: Erratic weather patterns, droughts, and floods can affect crop production and availability, leading to higher prices for consumers.

? Inadequate infrastructure: Poor irrigation facilities, lack of storage and cold chain facilities, and inadequate rural roads can contribute to post-harvest losses and increase production costs.

? Low productivity: Outdated farming techniques, poor use of fertilizers and pesticides, and soil fertility depletion can lead to lower yields and profits.

? Access to markets: Farmers may have a hard time transporting their produce to markets due to lack of roads, vehicles, and money.

d) Outlook:

The economy has been passing through a recessionary phase both in Indian and Internationally. The Government is taking several steps to boost the economy and one has to wait and watch for any significant signs for positive sentiment to emerge. However, considering the nature of business, the demand for the products being traded shall prevail as these would form the basic

e) Risks and concerns:

The broader trends in the economy are expected to have a direct impact on your Companys growth prospects as well. Consequently, market demand and supply chains have been affected, significantly increasing the risk of a global economic recession. The impact of the global health pandemic may be different from that estimated as at the date of approval of the financial statements and the Company will continue to closely monitor any material changes to future economic conditions.

Every business has inherent elements of uncertainties and risks e.g. disruption in supply and consumption pattern as also payment delays and bad debts. The Company has to be very careful in selecting its suppliers and consumers. Rising prices and changing government regulations can also affect Companys performance.

f) Internal control systems and their adequacy:

Your Company has adequate internal Controls commensurate with the size and nature of business. The Audit Committee regularly monitors the business activity and performance.

g) Discussion on financial performance with respect to operational performance:

Your company has proposed to diversify its business line for the purpose of growth hence the financial performance is average in this year.

h) Human Resources and Development:

The Company has Human Relations and Industrial Relations policies in force. These are reviewed and updated regularly in line with the Companys strategic plans. The Human Relations team continually conducts training programs for the development of employees.

The Company aims to develop the potential of every individual associated with the Company as a part of its business goal. Respecting the experienced and mentoring the young talent has been the bedrock for the Companys successful growth. The Companys employees age bracket represents a healthy mix of experienced and willing-to-experience employees.

Human resources are the principal drivers of change. They push the levers that take futuristic businesses to the next level of excellence and achievement. The Company focuses on providing individual development and growth in a work culture that enables cross- pollination of ideas, ensures high performance and remains empowering.

Details relating to top employees shall be placed at the registered office of the Company for inspection by the Members of the Company.

i) Disclosure to the Board:

Senior Management shall make the disclosure to the Board relating to all material financial and commercial transactions, and where they have personal interest, that may have potential conflict with the interest of the Company at large.

Also your Company is paying rent for the premises it is using for the office purpose to another group concern in which Director is interested. The dealings are at arms length and at prevailing market.

j) Details of significant changes in key financial ratios along with detailed explanations therefor

Details of significant changes (25% or more as compared to the immediately previous Financial Year) in key financial ratios in 2023-24

k) Details of changes in return on net worth as compared to the immediately previous financial year along with a detailed explanation thereof

The Return on Net Worth for the year was 2.78 % as compared to -14.57% in the immediate previous financial year.

The Companys operations for the financial year have been impacted by spread of Covid-19. The management of the Company has assessed the impact of the pandemic on its financial results/position such as trade receivables, trade payables and based on its best judgement and reasonable estimate, has concluded that there are no material adjustments required in the Financial Statements. The Company continues to monitor the economic effects of the pandemic while taking steps to improve its execution efficiencies and the financial outcome.

l) Cautionary Statement

Above statements are made looking to business environment and outlook. The actual results may vary depending upon several factors beyond the control of the management.