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Machhar Industries Ltd Management Discussions

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Nov 13, 2026|04:00:00 PM

Machhar Industries Ltd Share Price Management Discussions

Industry Structure and Developments:

The Company is having two division namely Chemical division and Automobiles division. In chemical division the company is engaged in the conversion of Ammonium Nitrate (AN) from melt form to solid form in accordance with the specifications and requirements of its customers. In automobile division the company is engaged in manufacturing and marketing of Adblue also known as Diesel Exhaust Fluid (DEF).

The Company has established a network of traders and distributors for marketing its AdBlue product under the brand name YUNIBLUE. At present, more than fifty traders are associated with the Company for the sale and distribution of YUNIBLUE. The automobile industry continues to offer growth opportunities driven by increasing industrial demand, infrastructure development and expanding environmental compliance requirements.

Opportunities, Threats, Outlook, Risks and Concerns:

The Company continues to carry out conversion of Ammonium Nitrate from melt form to solid form based on the requirements of its customers, including Indian Oil Corporation Limited and other explosives manufactures. The Company is also engaged in transportation activities for transporting ammonium Nitrate.

The Company perceives opportunities for expanding its presence in the Adblue segment and increasing its customer base. However, fluctuations in raw material (Technical Grade Urea) prices, changing demand patterns, regulatory requirements and foreign exchange movements may have an impact on trading margins and profitability. Accordingly, the Company adopts a prudent approach while evaluating new business opportunities and diversification initiatives.

The management continuously monitors market developments and remains committed to exploring sustainable growth opportunities while maintaining appropriate risk management measures.

Segment-wise Performance:

Segment Revenues & Other Income from Operations

Rs. In Lakhs

Explosive Division

387.72

Transportation Division

689.62

Adblue Division

478.63

Total Segment Revenue

1,555.97

Segment results (Profit /(Loss)) before interest, exceptional items and tax

74.92

Segment results (Profit /(Loss)) before tax

84.00

Internal Control Systems and their Adequacy:

The Company has in place adequate internal control systems commensurate with the size, scale and nature of its business operations. These systems are designed to provide reasonable assurance with regard to the safeguarding of assets, maintenance of proper accounting records, reliability of financial reporting and compliance with applicable laws, regulations, policies and procedures.

The internal control framework comprises well-defined policies and procedures, appropriate delegation of authority, standardized operating processes and effective monitoring mechanisms. The Audit Committee of the Board periodically reviews the adequacy and effectiveness of the internal control systems, significant audit observations, risk assessment reports and the corrective actions taken thereon.

The Company has appointed Internal Auditors who conduct periodic audits of various business functions and submit their reports to the Audit Committee. The management continuously reviews and strengthens the internal control framework to ensure efficient conduct of business operations and compliance with statutory requirements.

Financial Performance:

The financial performance of the Company during the financial year under review has been discussed in detail in the Directors Report forming part of the Annual Report.

Human Resources:

Human resources continue to be a key strength of the Company. The Company maintains cordial industrial relations and provides a conducive work environment for its employees. During the year under review, relations between the management and employees remained harmonious and cordial.

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