Machhar Industries Ltd Management Discussions

The Companys current business activity is conversion of Ammonium Nitrate (AM) from melt form to solid,
Transportation of Ammonium Nitrate (AM) and Manufacturing, Selling and Trading of (Add Blue) products.

Industry Structure and Developments:

Company is mainly providing converted ammonium Nitrate melt form in to solid form, as per the terms and
condition of customers. Transportation of Ammonium Nitrate, Chemical products and the large number of
companies are active in trading of Add Blue ((Diesel Exhaust Fluids) chemicals) products of the company.
About more than fifty traders are regularly selling, trading the companys product.

Opportunities, Threats, Outlook, Risks and Concerns:

The Company is currently engaged in providing Ammonium Nitrate melt form in to solid form, as per the
terms and condition of customers like M/s. Indian Oil corporation, Solar Energy India Limited. Transportation
of Ammonium Nitrate and in trading of Add Blue ((Diesel Exhaust Fluids) chemicals) products of the
company.

The procurement of converted ammonium nitrate by Indian Oil Corporation Limited is done through tendering
process. There is always a possibility that company may not win the order through the tender.

Segment-wise Performance:

The Companys current business activity has three reportable segments, namely Explosives Division,
Transportation Division and Add Blue Division:

Internal Control Systems and their Adequacy:

The Company has adequate internal control procedures commensurate with the size and nature of its
business. The internal control systems provide for policies, guidelines, authorizations and approval
procedures. The Audit Committee of the Board of Directors periodically reviews the internal audit reports,
significant risk area assessment and adequacy of internal controls for ensuring checks and balances. The
Company has appointed Internal Auditors who regularly check the adequacy and effectiveness of all internal
controls and suggest improvements.

Financial Performance:

Financial results and performance for the year are elaborated in the Directors Report.

Human Resources:

Harmonious relations continued to prevail with the employees. The total number of employees as on 31^st
March, 2024 were 25.