Indo Borax & Chemicals Ltd Management Discussions

The Directors present their report on the specified matters to the extent relevant or with in limits that in their opinion arc imposed by the companys own competitive position, as under: -

1 n d us try stru rtu re a n d dc veto p ment

No rcliabfc and published data is available specifically on boron product industry As boron ores are not found in India, thus the basic inputs must be essentially imported.

0 p p or 111 n i ty, th rea ts, ri s ks a nd conec rns

As, the basic input of boron ores are imported, thus timely availability ofbasie inputs at competitive prices in desired quality, composition and quantities has been, continues to be and expected to remain a matter of concern, risk and threat. The company is continuously engaged In exploring and developing alternative sources for imported raw material to minimize the risk,

Segmcn t wise or p noduct-wise p erforma ncc

The company is operating in a single reportable segment lx, manufacturing and selling of Chemicals. The disclosures requirement of the Indian Accounting Standard (ASJ 108 "operating Segment notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014 arc not applicable.

Outlook

The domestic market for chemical products manufactured by the company is expanding every year and the Company can sell more quantity, as its products arc well known forthelr quality.

The company remains a market leader by far for Boric Acid in fndia. It was the first manufacturer to receive certification From Bureau of Indian Standard (BIS) and is manufacturing boric acid according to the relevant BIS standard. In addition, the company remains the sole manufacturer of Boric Acid Pha rm accuti cal grad e(l.R) in India and holds license from FDA. All the grades of Boric Acid manufactured by the company command a premium as compared to the competitors products.

Di-Sodium Octaboratc Tetrahydratc (DOT), an important value-added Boron micro nutrient fertilizer listed in the schedule to the Fertilizer Control Order (FCO), manufactured by the company using in- house developed technology, has been well accepted in the market, commanding a premium. The product has been found to be much superior to imported products in the comparative studies undertaken by The Indian Institute of Tcchnology(IIT) and the Council ofScicntific& Industrial Research (CSIR). The company has also been granted the necessary licenses for manufacturing this product. Since the Indian soil in largely deficient in Boron, the Indian Government is actively encou raging use of Boron in Agriculture for enhancing yield and quality of crops. The market Is growing, and the company expects increasing volumes in future.

The company has also commenced initial dispatches of another higher value-added product i.c. Boron Oxide. Thepmduct has been well accepted by the user industry. Since the market for this product is growing rapidly, the company is very bullish on t his product.

Internal control system and their adequacy

The Company has proper and adequate systems of internal controls to provide reasonable assurance that all assets are safeguarded; prevention and detection of fraud and errors, the accuracy and completeness of the

accounting record, timely preparation of reliable financial disclosures, transactions are authorized and recorded correctly to ensure compliance with policies and statutes.

Based on the Framework of internal Financial controls and compliance system established and maintained hy the Company, the work perFormed by the internal, statutory and secretarial auditors, including the audit of internal Financial controls over financial reporting by the statutory auditors and the reviews performed by management and the relevant board committees, including the audit committee, the board is of the opinion tha t th e Com p anys i nterna I fi n a ncial co n trol we re ad eq u ate a nd e fie ctivc du r i ng th e fi n a nei al year 2025.

Internal control systems have been found to be adequate and commensurate with the size and nature of the bus i n ess of t h e compa ny and a re revi ewed from ti m c to ti me fo r Fu rthcr i mprovc m ent.

Discussion on financial performance with respect to operational performance

The net sales in current year stood at Rs, 17,526.11 Lakhs as compared to Rs. 19,130.30 Lakhs in previous year, which is lower by 0.39% due to reduction in sales quantity.

Financial Performance with respect to operational performance:

Human Resources Dcvelo pm cut & M a n ago m c nt

The Company emphasizes to build a culture that provides well being of the employees and encourages them to attend and participate in various development programmes/training which will enable them to learn and develop, being crucial to Its long term success.

The Company Ls continuously working to create an environment of empowerment through well-defined policies that reflect empathy, celebrate meritocracy, and provide ample professional and personal deveiopmcntoppoitunitics.

The total number of permanent employees of the company is 106. There arc no other reportable material developments in the matter of human resources and industrial relations, which were cordial throughout the year.

Risk and Concerns

The risks faced by the company arc raw material risk, quality risk, competition risk, foreign exchange risk, realization risk, cost risk.

The Iisk management committee has mitigation plan against above risk. Company is continuously engaged in exploring and developing alternative sources of imported raw material to mitigate the risk of raw material. Highest quality parameters are set to produce the chemical products; also ensure that there should be continuous supply of material to the customers which will mitigate the quality and competition risk. To mitigate the Foreign exchange risk, company prefers to buy material on receipt of documents. If there is import of raw material on credit basis, the same is hedged.