paushak Management discussions

The Companys management provides its own perspective on the operating and financial performance of the Company during financial year 2022-23 and an outlook of the business performance in the coming years as follows:

(A) Industry Structure and Development & Business, Opportunities, Threats & Risks:

Impact of Covid in 2021 resulted in higher demand in subsequent periods across the industries as speciality chemicals are used for a wide array of applications. This situation immensely benefitted Paushak as we have aggressively captured markets, got into early contract with customers while selling more volumes coming out from our new Phosgene derivatives/ multi-purpose plant which started contributing in sales from Q4 FY 2022. We have become a large scale commercial supplier of such products in India while fulfilling major domestic demand and reducing imports significantly and saving foreign exchange. We are pleased to share that we have achieved rated capacities of the new plants while demonstrating our technical expertise in developing indigenous technology platforms, launching new products and building state of the art plants. These new automated plants have also been visited/audited by Global Customers/ Innovators from our targeted segments resulting in more confidence and interest in our technical expertise and is expected to result in future growth opportunities while establishing Paushak as serious global supplier for Phosgene derivatives.

Revenues from operations had a strong year-on-year growth of 41.5% due to aforesaid reasons. However, the Pharmaceuticals market has been experiencing slowdown in FY 2023 along with slowdown in Agrochemicals demand towards the end of the year onwards, with opening of China and higher energy cost especially in Europe. This has resulted in pressure on the pricing due to excess supplies, lowering demand and intensified competition. Although this adverse impact has been mitigated by our operating efficiency and softening of raw material prices in second half of FY 2023. We continued to be "partner of choice" for our customers while fulfilling their expectations and maintained our domestic market leadership in majority of our product portfolio.

(B) Outlook:

Our major market like Pharmaceuticals and Agrochemicals are experiencing slow down along with price erosion and intensified competition. This is expected to result in margin pressure in near future. However, the new plants have catalysed our growth while demonstrating our technical capabilities, commitment and our vision to become a global technology leader in Phosgene and its derivatives while creating niche for us. We are working on new technology platforms while launching new products in near future while investing more to create downstream capacities. We remain committed to be "Partner of Choice" for our customers while expanding R&D capabilities to support such launches with addition of more technical resources.

(C) Financial Performance:

The gross total income of the Company is 22,139.67 Lacs for the year under review as compared to 15,523.88 Lacs for the previous year. The Company registered a net profit of 5,400.55 Lacs for the year under review as compared to net profit of 3,761.19 Lacs for the previous year.

(D) Key Financial Ratios:

Kindly refer to the ratios disclosed under note no. 32(W) to the financial statements.

(E) Internal Control Systems and Adequacy:

The Company believes that Internal Control is a necessary concomitant of the principle of Governance. It remains committed to ensure an effective Internal Control environment that provides assurance to the Board of Directors, Audit Committee and the management while ensuring reliability of financial and operational reporting and legal and regulatory compliance.

Interrelated control systems, covering all financial and operating functions, assure fulfilment of these objectives. The Company uses Enterprise Resource Planning (ERP) supported by in-built controls that ensures reliable and timely financial reporting.

(F) Human Resource - Developing Human Capital:

Paushak has hired best talents from the industry to further accelerate the growth. With automation, we have significantly reduced overall manpower requirement and this will continue with addition of new plants in days to come. Higher expense in employee cost is an investment for future and Paushak remains committed for the same.

On behalf of the Board of Directors,

	Sd/-
	Chirayu Amin
Date: 19th June, 2023	Chairman
Place: London	DIN: 00242549