Indo Euro Indchem Ltd Management Discussions.

(1) OPERATING AND FINANCIAL PERFORMANCE:-

Operating & Financial performance has been given in details in Directors Reports.

(2) Industry Structure and Development:-

Indo Euro Indchem Limited (Previously known as RinkuPolychem Limited) is operating in Pigment and Organic Chemical. The company continues to build strong relationships with key customers. The Company with the objective to grow started venturing into new business and also started trading of laminates, Base Paper etc. Company Changed the Name to Indo Euro Indchem Ltd in order to grow its new business of importing Base paper, Press Plate, And Tissue paper, laminates etc. The companys major imports are from Europe, Japan and China.

(3) Opportunities and Threats :-

The fundamental growth drivers of the countrys economy as well as chemical industry continue to remain strong despite the pressures of slowdown and inflationary conditions prevalent till recently in the nation and also globally. The Chemical Industry in the country is continuously attracting investments from domestic and foreign investors.

The threats to the segments in which the company operates are volatility in Exchange rate, pricing pressure arising due to competition from low cost suppliers, technology up gradation, severe competition among competitor and newly emerging competitive nations and stricter environment laws. Further, the Indian economy is now integrated with the world economy to a very large extent and therefore vulnerable to the direct impact of such a slowdown; such an impact could adversely affect the Companys performance as well. Therefore, the company has decided to close down the manufacturing activity, concentrate on the trading, and look for other opportunities in the Export market.

(4) Segment-wise or product-wise performance :-

The Company is manufacturing, trading in specialty Chemicals, poultry feed, BasePaper, Tissuepaper & Press Plate.

(5) Business Outlook :-

General outlook of the company for the year 2018-19 is not encouraging. The turnover of the company has decreased from Rs. 7,65,24,313/-to Rs. 81,07,939/-.The Company has incurred loss of Rs.17,70,539/- as compared to previous year profit of Rs.6,04,445/-.

(6) Risks and Concerns :-

Your company is working essentially in global market place. Currently the MIDC is not able to provide the common Effluent Treatment plant which is necessary for the Manufacturing of the pigments and also necessary from the environment point of view, also the infrastructure provided at the MIDC like Water is not available and hence it causes a huge increase in manufacturing cost because of which we cannot be competitive in the market. However the capability of providing quality services, timely completing of projects and the excellent performance will provide the competitive edge to the Companys business in this sector.

(7) Internal Control System and their adequacy :-

The management feels that the present internal controls in place are sufficient considering the complexity, size and nature of operations of the company.

Besides above, Audit Committee which has already been formed by your company under the Companies Act 2013 and The Company had laid down guidelines, policies, procedures and structure to enable implementation of appropriate internal financial controls across the company.

(8) Financial Performance with respect to Operation Performance :-

The Company will see envisage its growth in future because of continuous hard core efforts put by your Companys management to achieve the pace of development, towards which your company marches. However much requires doing than what has been done due to huge brought forward losses.

(9) Material Developments in Human Resources / Industrial Relations front including number of people employed :-

There are no material developments in Human Resources under review. The overall industrial relations during the year under review were peaceful. The Company values and appreciates the dedication and drive with which its employees have contributed towards improved performance during the year under review. The industrial relations with workers at plant and officers are cordial during the year under review. All issues pertaining to staff matters are resolved in harmonious and cordial manner.

(10) Cautionary Statements:-

Estimate and expectation made in the report may differ from actual performance due to various economic condition, government policies and other related factors.

By Order of the Board of Directors
For Indo Euro Indchem Limited
Sd/- Sd/-
Place: Osmanabad Date: 13.08.2019 Akshit B Lakhani Vardhman C. Shah
Director Managing Director
DIN: 00334241 DIN: 00334194