Krishana Phoschem Ltd Management Discussions.

ANNEXURE X

INDUSTRY SCENARIO AND DEVELOPMENTS

The Company is engaged in the manufacturing of Single Super Phosphate (SSP), Beneficiated Rock Phosphate (BRP) and Dyes intermediates & other allied products. Beneficiated Rock Phosphate and Sulphuric Acid is basic raw material for SSP. SSP is used in for replenishing "P"

(Phosphorus) in the soil which gets depleted steadily with each crop. Due to variety of reasons, SSP industry has not been doing well in the past two years and frequent change in Govt policies particularly change in mode of subsidy has brought additional pressure on the industry. Chemical industry is doing well, and we have been able reap benefit from the same.

OPPORTUNITIES

KPL is constantly looking to expand in the various expansion and development of new products which have ready marketdue to availability of ample land and skill manpower and there exits good scope for addition of new products in chemical division as sulphuric acid is mother chemical and vastly applicable in manufacturing of various chemicals. Following positives for KPL areas under: Government Initiatives for fertilizer Industrymaking fertilizer production a lucrative line of business. Strong Marketing network in India with Shree Ram Fertilizer Substantial infrastructure Facilities Scope for expansion as mentioned above High Growth Potential

THREATS

Competition from other Fertilizer manufacturing companies. Inconsistent Government policies for fertilizer industry Government Intervention.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

Detail of Unit wise or Product wise performance is furnished separately in the Annual Report.

FUTURE OUTLOOK- PROJECT

As explained in foregoing paragraphs, there exists ample scope for expansion in chemical division and the company has applied for environment clearance for many products. As and when the same is obtained, we shall go ahead with new additions.

RISK & CONCERN

Our business is mostly dependent upon the growth of agriculture and Agri-products which are subject to substantial risks faced by the weather condition in India. Weather condition such as delayed monsoon or less rainfall may affect our business, the dependence on Government policies which ultimately impact the overall performance of the industry. These are all factors which are beyond the control of the private enterprise and would continue to be a challenge.

INTERNAL CONTROL SYSTEM

The company has in place adequate internal control system, commensurate with the size, scale and complexity of the company. The internal auditors independently evaluate the adequacy of internal controls and concurrently audit the majority of the transactions in value terms. Independence of the audit compliance is ensured by the direct reporting of Internal Audit Division and Internal Auditors to the Audit Committee of the Board. During the period under review the Internal Financial Control were tested and no reportable material weakness in the design or operation were observed.

OPERATIONAL PERFORMANCE

During the year under review, your Company brought a new project of Sulphuric Acid, oleum & Other products. Your company has achieved the turnover of Rs.9575.68 Lakh and the net profit after tax for the current year stands at Rs. 354.15 Lakh as against Rs. 330.16 lakh in previous year.

HUMAN RESOURCE DEVELOPMENT

As a part of ongoing exercise of the restructuring and re-organization of the Companys business, the Company undertakes periodic comprehensive reviews of its HR policies and amends the same suitably from time to time, to meet the emerging business requirements. We have had cordial relations with the staff throughout the year.

CAUTIONARY STATEMENT

There are certain statements in this report which the Company believes are forward looking. The forward looking statements stated in this report could significantly differ from the actual results due to certain risks and uncertainties, including but not limited to economic developments, Government actions, etc.

For and on Behalf of the Board of Directors
Sd/- Sd/-
(Praveen Ostwal) (Sunil Kothari)
Place Bhilwara (Raj) Managing Director Whole Time Director & Chief Financial Officer
Date 29.05.2018 DIN 00412207 DIN 02056569