Indo Borax & Chemicals Ltd Management Discussions

The Directors present their report on the specified matters to the extent relevant or within limits that in their opinion are imposed by the companys own competitive position, as under: -

Industry structure and development

No reliable and published data is available specifically on boron products industry. As boron minerals are not found in India, thus the basic inputs have to be essentially imported.

Opportunity, threats, risks and concerns

As. the basic input of boron minerals are imported, thus timely availability of basic inputs at competitive prices in desired quality, composition and quantities has been, continues to be and expected to remain a matter of concern, risk and threat. The company is continuously engaged in exploringand developingaltcrnativc sources for imported raw material to minimize the risk.

Segment wise or product-wise performance

The company is operating in a single reportable segment i.e. manufacturing and selling of Chemicals. The disclosures requirement of the Indian Accounting Standard (AS) 108 "operating Segment" notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014 are not applicable.

Outlook

The domestic market for Boron products is expanding every year and the Company can sell more quantity, as its products are well known for its quality.

Company had received certification with Bureau of Indian Standard and Is manufacturing boric acid according to the relevant BIS standard.

Internal control system and theiradequacy

The Company has proper and adequate systems of internal controls to provide reasonable assurance that all assets are safeguarded; prevention and detection of frauds and errors, the accuracy and completeness of the accounting record, timely preparation of reliable financial disclosures, transactions are authorized and recorded correctly to ensure compliance with policies and statutes.

Internal control systems have been found to be adequate and commensurate with the size and nature of the business of the company and are reviewed from time to time for further improvement.

Discussion on financial performance with respect to operational performance

The net sales in current year stood at Rs. 14,415.32 Lakhs as compared to Rs. 11,525.48 Lakhs in previous year, which is higher by 25.07% due to better realization.

Human Resources Development & Management

The total permanent employees of the company are 102. There are no other reportable material developments in the matter of human resources and industrial relations, which were cordial throughout the year.

Risk and Concerns

The risk faced by the company are raw material risk, quality risk, competition risk, foreign exchange risk, realization risk, cost risk.

The risk management committee has mitigation plan against above risk. Company is continuously engaged in exploring and developing alternative sources of imported raw material to mitigate the raw material risk. Highest quality parameters are set for the production of the boron products, also ensure that there should be continuous supply of material to the customers which will mitigate the quality and competition risk. To mitigate the foreign exchange risk, company prefers to buy material on receipt of documents. If there is import of raw mater i al on credit basis, the sa me a re hedged.