The Phosphate Company Ltd Management Discussions

Cautionary Statement

Some of the statements in the report may be forward looking and are stated as required by applicable laws & regulations. Many factors may affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook. The Companys Performance is dependent on several external factors such as performance of monsoon, government policy, fluctuation of prices of raw material and finished products and also their availability and not to say the least, the pandemic situation in the country, which could adversely affect the operations of the Company.

India - Fertiliser- Production & Consumption trends - in lakh tons

Industry review :

India is among Top-Two consumer of Chemical Fertiliser in World. Fertiliser Industry through its wholesalers & retailers are well distributed across length and breadth of Country servicing to remotest village as well as farmers.

Government Policy

Government is giving Subsidy on Single Super Phosphate (SSP) fertiliser to the tune of Rs.6874 PMT on sale of Fertiliser to farmers recorded through Point of Sale (POS) machine capturing buyers details on real-time basis.

Review of the Company

LAKSHMI Brand is the choicest fertiliser of the farmers. Despite pandemic challenges, the Company could achieve an all-time high Turnover of Rs.160 crores during the year.

Opportunities & Risks Opportunities

Single Super Phosphate (SSP) fertiliser manufactured by your Company is most affordable nutrient rich fertiliser having Phosphorous, Sulphur, Calcium besides many minor nutrients. Government has renewed its focus making SSP more popular amongst farmers.

Risk

Since most of the raw-material for manufacture of SSP is imported from Middle-east Countries, Geo-Political Risks of these Counties weighs heavy on this sector.

Internal Control Systems and their adequacy :

The Company has proper and adequate system of internal controls commensurate with its size and scale of operation to protect all its assets against loss from unauthorized use or disposition and all transactions are authorized, recorded and reported in conformity with generally accepted accounting principles. Internal Controls are also reviewed by the Internal Auditor.

Disclosure of Accounting Treatment :

The Financial Statements have been prepared as per IND-AS in conformity with the applicable accounting standards with proper explanations justifying the cause of any deviation wherever occurred. The notes to the financial statements read with the auditors reports both stand-alone and consolidated give the necessary disclosure of all the relevant accounting treatments in the financial statements appended with the Directors Report.