Dear Shareholders,
It gives me immense pleasure to present the 19th Annual Report of Krishana Phoschem
Limited for the year 2022-23. It is an honor and satisfaction for me to address you and to
share the performance highlights and achievements of your Company during the financial
year 2022-23 and its future outlook.
Indian Agriculture Scenario
The agriculture sector has experienced significant growth in the past two years. This
became possible due to good monsoon and various government measures. The production and
consumption of fertilizers in India is showing an increasing trend. The Government of
India has brought various reforms and ensured that fertilizers are available at affordable
prices to the farmers to increase agriculture productivity despite steep rise in input
costs primarily raw material cost.
In such times of challenge with Government support with timely increase in subsidy,
self-belief and resilience success. Your company ensured timely supply of fertilizers to
farmers during 202223.
The Board and management team believe strongly that we are on the right strategic path
to fulfilling our duties because the economic growth and prosperity depend on sustainable
food production started from the manufacturing of the best fertilizers.
Corporate Overview of the Company
During the year, your Company achieved Revenue from Operations of Rs. 32281.76 Lakhs as
against Rs.31936.42 Lakhs in previous year (PY). Profit Before Tax (PBT) during the year,
stood at Rs. 3893.86 Lakhs. Initially we expected our new DAP/NPK complex fertilizer plant
to start commercial production from October 2022 but due to variety of reasons, we could
start the same in February 2023 as such the benefit of this plant could not be captured
during the year. The plant has almost stabilized and we are confident this will add to our
top line as well as bottom line considerably during the years ahead.
Dear shareholders, over the years, we have been expanding our capacities and adding new
product lines for overall increase in the value of the company and using major part of the
accruals for the expansion, still to maintain consistency in our pay out and as a token of
gratitude for your support this year too, a 5% dividend has been proposed.
We are consistent and firm on the basic principles and strategies for conducting our
business responsibly, to ensure better Governance practices with sustainability and core
values as our foundation. We shall continue to grow our business and contribute to India's
growth story. We are happy to serve our customers, develop our partners and work for
upliftment of communities in the vicinity of our areas of business.
Your company has always laid special emphasis on energy efficiency, concern for
environment, safety, continual development of human resources and welfare of employees.
The philosophy of your Company on Corporate Governance is to ensure transparency,
disclosures and reporting that conforms with the laws and regulations of the country in
order to promote ethical conduct & practices. Your Company is committed to comply with
the provisions of SEBI (Listing Obligations & Disclosures Requirements) Regulations,
2015 relating to Corporate Governance.
Achievements/Future Outlook:
Company's new DAP/NPK plant has since become operational which will change shape of the
company as DAP/NPK is high value import substitute fertilizer in good demand in the
country. Another mile stone is increase in capacity utilization of BRP plant which has
been facing acute shortage of low-grade rock phosphate till 2021 is now operation at
satisfactory level.
Before I conclude, I would like to place on record my appreciation to all my colleagues
on the Board, past and present, for their valuable contribution in the growth of the
Company. Finally, on behalf of the Board, I would like to thank you, our valued
shareholders, bankers, suppliers, vendors for unwavering support in our journey to deliver
value to all our stakeholders.
Thanking you,
With Warm Regards
Sd/-
(Mahendra Kumar Ostwal)
Chairman.