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 Company’s Performance is dependent on several external factors such as performance of monsoon. government policy and fluctuation of prices of raw material and finished products and also their availability. which could adversely affect the operations of the Company.

Fertiliser Production & Consumption

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

Note:-Consumption includes Import of Fertiliser

Industry Review

India is the world’s second-largest consumer of fertilisers and, despite being heavily import-dependent for raw materials, has emerged as the third-largest producer globally. The consumption of Complex fertilisers continues to increase, largely at the expense of straight fertilisers, primarily due to labour shortages.

During FY 2024-25. Single Super Phosphate (SSP) accounted for 16.2% of total P- O- production. According to 2022 data, India ranks second in global SSP consumption, following Brazil.

Government Policy

The Government of India has introduced PM-PRANAM. an integrated nutrient management scheme to encourage balanced fertiliser use. Further, for Kharif 2025, the Government has announced a subsidy of 7,263 per MTon the sale ofSSP fertilisers to farmers through the Point-of-Sale (PoS) system.

Review of the Company

The LAKSHMl brand continues to be a trusted choice among farmers. In addition, the Company has expanded its product portfolio by launching Specialty Nutrient & Crop Protection Chemicals (SNPC) under the SAMADHAN brand. which is being well received in the market.

Opportunities and Risks Opportunities

With its strong brand equity and established distribution network, the Company is well positioned to capture market share in new product categories. The recently launched SAMADHAN range is expected to gain positive traction among fanners.

Risks

The global fertilizer raw material supply chain remains under stress due to ongoing geopolitical conflicts, including the Russia-Ukraine war and tensions in the Middle East (lsrael-Palestine). This could disrupt availability and impact costs.

Internal Control Systems and Adequacy

The Company maintains a robust internal control system, commensurate with the size and complexity of its operations. These controls ensure safeguarding of assets against unauthorized use or loss, and that all transactions are properly authorized, re-corded, and reported in accordance with generally accepted accounting principles. The Internal Auditor periodically re-views these systems to ensure continued adequacy and effectiveness.

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 Director’s Re-port.