Jayshree Chemicals Ltd Management Discussions

a) INDUSTRY STRUCTURE AND DEVELOPMENTS

The financial year 2023-24 has been eventful, particularly the ongoing Russia-Ukraine conflict which started in Feb 2022 and triggered a global energy and food crisis and a considerable rise in inflation followed by a globally synchronized monetary policy tightening compounding the economic difficulties. Additionally, military conflicts in the Middle East worsened the situation, eliminating any initial signs of stability that were starting to appear in the latter half of the year. The year began with heightened fears of a global recession despite these challenges, however, major economies except for Europe managed to avoid recession and major emerging market economies did not suffer the jolts as was anticipated. In the midst of this environment, the Company, operating in chemical trading and wind power businesses, had a year full of challenges. Nevertheless, it anticipates improving its performance in the ongoing financial year.

b) OPPORTUNITIES AND THREATS

The Company which began its Chemical Trading Business in 2022 has expanded its range of offerings by diversifying into various chemicals.The Company has expanded its trading operations to include Crop Nutrient Chemicals thereby reducing its reliance on Formic Acid which was a major revenue contributor in the previous financial year. The Company holds a positive outlook on its wind power generation business, expecting a boost from the anticipated recovery of pending dues from power discoms.

Flowever, both business verticals of Company are subject to inherent business risks associated with them. The chemical business is susceptible to price and demand fluctuations, international currency fluctuations and cheaper imports from China. The power business may suffer delayed payments from power discoms which could impact the profitability of the Company.

c) PRODUCTWISE PERFORMANCE

In the wind power segment and trading segment the Company has earned a revenue of? 1,281.40 Lakhs.

d) OUTLOOK

The Company is highly focused on increasing and expanding its present line of business by securing new clients and orders to increase its operational efficiency and performance.

e) RISK & CONCERNS

The primary risk for the Company is with the volatile domestic markets, any kind of uncertainty which might prevail in the markets, high competition because of new entrants in the market and cheaper imports, inability to secure new clients or any new implementation of rules or regulations which might affect the functioning of the business in long run. However, the Company is taking all possible measure to cope with all these challenges by continuous efforts at cost optimization, process improvements, diversification of products and improving efficiencies. Further, the company is also monitoring the market trends and adapting to changing conditions as needed

(f) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains a robust system of internal controls to ensure that all transactions are authorized, recorded and reported correctly. Internal audits and checks are carried out regularly by Internal Auditors, an independent firm of Chartered Accounts. An Audit Committee headed by an independent and non- executive Director is in place to review the systems continuously.

(g) FINANCIAL & OPERATING PERFORMANCE

This has already has been discussed in the Directors Report.

(h) HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONTS

The Company maintained a positive and cordial relations with its employees and any issues that arise are solved across the table in a very congenial atmosphere. There were 8 employees as on 31 st March 2024.

(i) DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPAREDTO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS

This has been discussed in the Notes to Financial Statements.