Link Pharma Chem Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

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 in 2024-2025 decreased to Rs. 2543.34 Lacs from Rs. 2989.77 Lacs in 2023-2024 in view of stiff market competition. Sluggish demand scenario and raw material price volatility for few molecules has affected the performance of the Company.

Your company has been striving hard to develop new products which are in good demand in the market. It has also plan to focus more on specialty Chemicals which are having better margin profile. Company also emphasis on recycling and resource recovery which opens new avenues for company to develop closed-loop systems and reduce waste.

Though administrative and manufacturing costs have increased, your Company has been trying to adhere to the strict norms of compliance as stipulated by Gujarat Pollution Control Board (GPCB).

Due to process of manufacturing causing corrosion in plant which has been taken place due to nature of its manufactured products, the Company is required to spend certain amount to replace old machinery and equipment.

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 highlights of financial performance of the Company for the year under review are as under:

The Company has earned revenue from operations of Rs. 2543.34 Lacs as compared to net revenue of Rs. 2989.77 Lacs in the previous year and Company has incurred the gross loss of Rs. 140.25 Lacs as compared to loss of Rs. 191.57 Lacs in the previous year and net loss of Rs. 102.73 Lacs as compared to net profit of Rs. 136.29 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 repayment of loans (b) Due to increase in losses

(c) Due to reduction in sales and increase in debtors (d) Due to timely payment of trade payables (e) Due to reduction in turnover (f) Due to reduction in Market value of Investments held

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.