MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Directors brsent their report on the specified matters to the extent relevant or within limits that in their opinion are imposed by the company's 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 the 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 exploring and developing alternative 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. Hence, segment-wise break-up is not applicable to operations of the company on standalone basis. The construction project being executed by the subsidiary company. Segment wise information is given in the notes to accounts in Consolidated Financial Statements.

Outlook

The policy of Government of India is encouraging import of finished products at the cost of domestic industries is a real threat, thus the margins may come down resulting in unbrdictable operations. Otherwise, the domestic market is expanding every year and the Company can sell more quantity, as its products are well known for its quality.

During the year Company has approved the plan to increase installed capacity of boron products by 5,600 MT p.a. at Pithampur Plant. With this expansion, the installed capacity will increase by 38.89% from existing 14,400 MT p.a. to 20,000 MT. p.a. The capacity expansion plan is expected to be completed by the end of September, 2015.

Internal control system & their adequacy

The Company has proper and adequate systems of internal controls to provide reasonable assurance that all assets are safeguarded; 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 gross sales in current year stood at Rs. 8,128.75 Lacs compared to Rs. 7,018.14 Lacs in brvious year. Production of boron products increased by 6.93 % as compare to 0.37% decrease in brvious year.

Human Resources Development & Management

There are no reportable material developments in the matter of human resources and industrial relations, which were cordial throughout the year.

Risk Management Policy

IBCL's Risk Management Committee involves in risk identification, assessment and risk mitigation planning for strategic, operational and compliance related risk across the company. 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 material to the customers which will mitigate the quality and competition risk. To mitigate the foreign exchange risk, company always bought material on receipt of documents. If there is import of raw material on credit basis, the same are hedged. The Company assuring to the consumers of the superior quality of products, leading to better realizations, even in the wake of large import threat.