pratiksha chemicals ltd Management discussions

1. OVERALL REVIEW ON INDUSTRY STRUCTURE & DEVELOPMENTS:

The Company represents small, medium, and large color pigments manufacturers throughout India, accounting for the bulk of the production of color pigments in India. The Company supplies superior quality pigment green 7 all over India.

? INFRASTRUCTURE:

Our factory is strategically located in Village Iyava-vasna, Tal: Sanand, Dist. Ahmedabad. Where all the raw materials are easily available.Our pigment testing and R&D laboratories are also located in the factory premises.

? RESEARCH & DEVELOPMENTS:

The manufacturing units has a well-equipped laboratory assisted by a team of chemists and researchers for consistent Research and Development and support the Quality Control System which keeps an eye on the production process to yield the best from these production units. The overall performance during the financial year 2022-23 has been satisfactory.

2. OPPORTUNITY & THREATS:

Color pigments are widely used in product compositions of all kinds, including paints, inks, plastics, glass, synthetic fibers, and ceramics, colored cement products, textiles, cosmetics, and artists colors which is itself strength for the company. Proximity to two of the largest shipping ports in the country and government approved pigment testing laboratories are some of the added advantage Competition in the chemical industry can be treated as a threat to the company. The Company needs to lower the cost of manufacturing to cope up with the increasing competition and to earn optimum profit and growth of the Company. The Company does not foresee any material impact of COVID -19 on liquidity and assumption of going concern. Till the time business operations at customers end get fully functional and supplies chain with vendors totally restored, business operations of the Company will remain at sub-optimal level. COVID -19 Pandemic is also an another threat to entire economy during the current scenario. However, The Company does not foresee any material impact on liquidity and assumption of going concern. Till the time business operations at customers end get fully functional and supplies chain with vendors totally restored, business operations of the Company will remain at sub-optimal level.

3. SEGMENT WISE OR PRODUCT-WISE PERFORMANCE:

On the basis of the principles for determination of segments given in Indian Accounting

Standard 108 "Operating Segments" and in the opinion of management, the Company is primarily engaged in the business of manufacturing of Pigment Green -7. Accordingly segment wise disclosure of performance is not applicable to the Company.

4. BUSINESS OUTLOOK:

Colour Index Name	Pigment Green 7
Colour Index	74260
CAS Number	1328-53-6
Chemical Family	Polychlorinated Phthalocyanine
Synonyms	Phthalocyanine Green,Phtalo Green, Copper Phthalocyanine Green
	C32 H2 N8 Cu CI14
Chemical Formula
	The number of chlorine atoms per molecule may vary from 14 to 16
Molecular Weight	1058 - 1127

The turnover of the company has been decreased as compare to the previous financial year. The constant efforts of the Company and Research and Developments will lead the Company to the higher level.

5. RISK & CONCERN:

The building, plant and machinery, vehicle and stocks of the company are adequately insured.

6. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

Considering the size of the company, your company has adequate system of internal control to provide reasonable assurance that assets are safeguarded and protected from unauthorized use or deposition.

7. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Total turnover for the year ended 31^st March, 2023 was Rs. 973.09 lakhs. Now the Company was mainly focus on performance and improvement in manufacturing techniques and sales promotion drive. Better working capital management was also one of the emphasis on which proper weight age was laid upon.

8. HUMAN RESOURCE DEVELOPMENT:

Your Company treats its "Human Resources" as one of its most significant assets. The Company continues its focus on retention through employee engagement initiatives and provides a holistic environment where employees get opportunities to realize their potential. A number of programs that provide focused people attention are currently underway. Your Company thrust is on the promotion of talent internally through job rotation and job enlargement. The Companys Health and Safety Policy commits to provide a healthy and safe work environment to all employees.

9. 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 THEREFOR, INCLUDING:

Ratio	2022-23	2021-22
Debtors Turnover	5 times	5.32 times
Inventory Turnover	1.81 times	11.57 times
Interest Coverage Ratio	1.89 times	248.72 times
Current Ratio	2.09	1.49
Debt Equity Ratio	0.96	0.20
Operating Profit Margin (%)	0.01%	0.03%
Net Profit Margin (%)	0.01%	0.03%

10.DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

Net worth of the company as on 31.03.2023 was Rs. 357.75 lacs whereas on 31.03.2022 figure was Rs. 348.96 lacs. Increase in net worth is mainly due to profit recorded in profit and loss account.

11.BUSINESS ENVIRONMENT:

We are also fully committed towards care of Environment. We strongly believe in Greener Environment and understand that it is our social responsibility. As a part of our belief we pledge to establish full fledge Effluent Treatment Plant in all units and they operate under stringent Environmental criteria laid down by various Pollution Control Authorities.

12.DISCLOSURE OF ACCOUNTING TREATMENT:

The company has followed accounting treatment as prescribed in Indian Accounting Standard applicable to the company.

13.CAUTIONARY STATEMENT:

Statements in this report on management Discussion and analysis 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. Important factors that could make a different to the Companys operations include global and domestic demand supply conditions, finished goods prices, raw material cost and availability and changes in government regulation and tax structure, economic development within India and the countries with which the company has business contacts and other factors such as litigation and industrial relations.

The Company assumes no responsibilities in respect of forward looking statements which may be amended or modified in future on the basis of subsequent developments, information of event.

PLACE: AHMEDABAD	BY THE ORDER OF THE BOARD OF DIRECTORS
DATE: 12.08.2023	FOR, PRATIKSHA CHEMICALS LIMITED
	sd/-
	MR. JAYESH PATEL
	DIRECTOR & CFO
	(DIN: 00401109)

CEO / CFO CERTIFICATION

To,

The Board of Directors,

PRATIKSHA CHEMICALS LIMITED

I, MR. JAYESH PATEL, Director & CFO of M/S. PRATIKSHA CHEMICALS LIMITED, to the best of my knowledge and belief certify that:

1. I have reviewed the financial statements for the financial year ended on 31^st March, 2023 and that to the best of my knowledge and belief: a. These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading. b. These statements give a true and fair view of the state of affairs of the company and of the results of operations and cash flows. The financial statements have been prepared in conformity, in all material respects, with the existing Accounting Standards, applicable laws and regulations. 2. I further state that to the best of our knowledge and belief, there are no transactions entered into by the company during the year which are fraudulent, illegal or violative of the companys code of conduct.

3.I accept overall responsibility for the companys Internal Control System and financial reporting. This is monitored by the internal audit function, which encompasses the examination and evaluation of the adequacy and effectiveness. Internal audit works with all the levels of management and statutory auditors and reports significant issues to the Audit Committee of the Board. The auditors and audit committee are apprised of any corrective action taken with regard to significant deficiencies and material weakness.

4. I indicate to the auditors and to the audit committee: a. Significant changes, if any, in internal control over financial reporting during the year. b. Significant changes, if any, in accounting policies during the year; c. Instances of significant fraud, if any, of which we have become aware of and which involve management or other employees who have significant role in the companys internal control system over financial reporting. However, during the year there were no such changes or instances.

PLACE: AHMEDABAD	BY THE ORDER OF THE BOARD OF DIRECTORS,
DATE: 12.08.2023	FOR, PRATIKSHA CHEMICALS LIMITED
	sd/-
	MR. JAYESH PATEL
	DIRECTOR & CFO
	(DIN:00401109)