Link Pharma Chem Ltd Management Discussions

The Company is engaged in the manufacturing and selling of drugs intermediates for Pharma, Agriculture, Cosmetics, and Veterinary Industries.

Chemical production is heavily reliant on petroleum and natural gas price fluctuations which directly affect profitability. Although we see a good demand for intermediates across different regions, in the chemical sector but fluctuations in crude oil and natural gas prices, key feedstocks for many chemicals, impact resulted in increase in cost of products of the Company and sluggish demand in the market has adversely affected volume of turnover and profit of the Company.

The Companys current business activity has one primary reportable segment, namely Chemicals. The Companys sales for the year 2025-2026 were increased from Rs. 2543.34 Lacs to Rs. 2743.15 Lacs of 2024-2025. The Company has earned a net profit of Rs. 7.69 Lacs in the year 2025-2026 against net loss of Rs. 102.73 Lacs for the year 2024-2025.

Your Company has been making consistent efforts to develop new products having good potential demand in the domestic and international market.

The volatile gulf middle east situation has adversely impacted the performance of the Company in view of increase in raw material price. In addition, the Company has been adhering to the strict compliances of Gujarat Pollution Control Board (GPCB) norms for effective implementation of pollution control measures.

The Company has in place, commensurate with the size and complexity of Companys business operation, effective internal control systems and policies for compliance of laws and to safeguard the interest of the Company. The internal audit is done by an independent firm of Chartered Accountants. Internal audits are regularly carried out to review the internal control systems. The internal audit reports along with recommendations contained therein are reviewed by the Audit Committee of the Board.

The financial statements of the Company are prepared in accordance with the Indian Accounting Standards (referred to as ‘Ind AS) prescribed under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time. Significant accounting policies used in the preparation of the financial statements are disclosed in the notes to the consolidated financial statements.

The Company has earned revenue from operations of Rs. 2743.15 Lacs as compared to net revenue of Rs. 2543.34 Lacs in the previous year and Company has incurred the gross profit of Rs. 13.51 Lacs as compared to gross loss of Rs. 140.25 Lacs in the previous year and net profit of Rs. 7.69 Lacs as compared to net loss of Rs. 102.73 Lacs in the previous year.

The Company continues its focus on development of human resources. The Company is a firm believer that its employees are its strength and the Company therefore respects individual rights and dignity of all its employees. The relations of the management with employees during the year continued to be cordial. Learning and development have been strengthened to bring value addition in the employee and to enhance team building leading towards success. The Company focuses on providing the employees, employee - friendly environment and culture and career growth opportunities.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof:

(a) Due to increase of Borrowing

(b) Due to positive Earning

(c) Due to increase of Revenue

(d) Due to positive Earning

(e) No gain on sale of investment during current FY

(f) Due to positive Earning

(g) Due to positive Earning

Statements in this report on describing the Companys objectives, expectations or predictions may be forward looking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could, however, differ materially from those expressed or implied. The Company assumes no responsibility in respect of forward-looking statements herein which may undergo changes in future on the basis of subsequent developments, information or events.