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 2018-19 has been satisfactory.

2. OPPORTUNITY & THREATS:

Color pigments are widely used in product compositions of all kinds, including paints, inks, plastics, glass, synthetic fibers, ceramics, colored cement products, textiles, cosmetics, and artists colors which is itself a 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.

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 form 14 to 16
Molecular Weight 1058 - 1127

The Company has achieved higher turnover as compare to the previous financial year and it further expects growth of the company in future. 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 31st March, 2019 was Rs. 1158.59 lakhs. This performance of the Company was mainly on account of improvement in manufacturing techniques and sales promotion drive. Better working capital management was also one of the emphasis on which proper weightage 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 2018-19 2017-18
Debtors Turnover 5.28 times 5.36 times
Inventory Turnover 2.76 times 3.11 times
Interest Coverage Ratio 3.28 times 4.16 times
Current Ratio 1.77 1.84
Debt Equity Ratio 0.71 0.64
Operating Profit Margin (%) 2.34% 2.46%
Net Profit Margin (%) 0.06% 0.26%

The key financial ratios as above are in line with the those of past year except Net profit margin which has changed significantly i.e. by -76.70% exhibiting effect of economic tax reform in the form of GST, increase in cost of Raw material consumed, increase in Finance costs and increase in employee expenses.

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

The return on net worth for the FY 2018-19 was at 0.24% as compared to 0.98% of FY 2017-18. The major reason for the same relates to the industry getting accustomed to the introduction of Goods and Services Tax apart from increase in overall expenses of employees and finance cost.

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.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: 13/08/2019 FOR, PRATIKSHA CHEMICALS LIMITED
sd/-
MR. JAYESH PATEL
DIRECTOR
(DIN: 00401109)