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AksharChem (India) Ltd.

BSE: 524598 Sector: Industrials
NSE: AKSHARCHEM ISIN Code: INE542B01011
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VOLUME 3183
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P/E 13.47
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OPEN 695.90
CLOSE 690.45
VOLUME 3183
52-Week high 941.95
52-Week low 490.00
P/E 13.47
Mkt Cap.(Rs cr) 564
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

AksharChem (India) Ltd. (AKSHARCHEM) - Director Report

Company director report

Dear Shareholders

Your Directors are pleased to present their Twenty Eighth Annual Report together withthe Audited Financial Statements of your Company for the financial year ended March 312017.

FINANCIAL HIGHLIGHTS ( R s. Lakhs)

Particulars Current Year Previous Year
2016-17 2015-16
Revenue from operations 25965.21 18770.61
Other Income 581.02 129.35
Total Income 26546.23 18899.97
Profit for the year before Finance Costs Depreciation Extra 8529.42 3351.73
Ordinary Item/Exceptional Items and Tax Expenses
Less: Finance Costs 302.06 334.63
Profit for the year before Depreciation Extra Ordinary Item/ 8227.36 3017.10
Exceptional Items and Tax Expenses
Less: Depreciation 468.69 424.18
Profit for the year before Extra Ordinary Item/Exceptional Items and Tax Expenses 7758.68 2592.92
Add/(Less): Extra Ordinary Item/ Exceptional Items Nil Nil
Profit for the year before Tax Expenses 7758.68 2592.92
Less: Current Tax 2299.82 768.00
Less: Deferred Tax 266.97 161.13
Net Profit for the year 5191.89 1663.79
Add: Balance brought forward from last year 4785.33 3429.61
Surplus available for Appropriation 9977.22 5093.40
Appropriation
Transfer to General Reserve Nil Nil
Interim Dividend of Rs. 3.50 per Equity Share (P. Y. Rs. 3.50 per 255.95 255.95
Equity Share)
Tax on dividend 52.11 52.11
Balance carried over to Balance Sheet 9669.16 4785.34
Total 9977.25 5093.40

DIVIDEND

After considering the profitability cash flow and overall financial performance of theCompany your Board of Directors of the Company have declared interim dividend of Rs. 3.50per equity share (35% on the face value of Rs. 10/- each) for the year ended March 312017 and the total outgo was Rs. 255.95 Lakhs towards dividend and Rs. 52.11 Lakhs towardsdividend distribution tax.

During the previous financial year the Company has paid Interim dividend of Rs 3.50per equity share (35% on face value of Rs. 10 each) and the total outgo was Rs. 255.95Lakhs towards dividend and Rs. 52.11 Lakhs towards dividend distribution tax.

TRANSFER TO RESERVES

Your Company has not transferred any amount to General Reserve (Also in Previous Yearthe Company has not transferred any amount to General Reserve). Your company has retainedamount of Rs. 9669.16 Lakhs in the Statement of Profit and Loss.

STATE OF COMPANY'S AFFAIRS

The highlights of the Company's performance are as under:

General

This year was an outstanding year for the Indian Chemical industry especially thosecompanies who compete with China. Due to the crack down by the Chinese government on thepollution causing industries there was a short supply in Dye Intermediates market as Chinawas the major supplier. Stricter environmental norms and increased costs havesubstantially eroded the low-cost advantage of Chinese manufacturers. This resulted in ahuge spike in the prices of Dye Intermediates which benefited the Indian exporters and theDye Intermediate manufacturers. Coming to the CPC Green business. This is the businesswhere there is no China factor and as a result the prices and margins generally tend to bestable and it is proven to do so in FY 2017. CPC Green contributed to 32% of our revenuesin FY 2017.

Results of Operations

During the year under review the turnover of the Company was Rs. 25965.21 Lakhs ascompared to Rs. 18770.61 Lakhs of the previous year. The Profit after Tax (PAT) hasincreased from Rs. 1663.79 Lakhs to Rs. 5191.89 Lakhs.

Exports

The export turnover has increased from Rs. 15346.77 Lakhs to Rs. 23259.62 Lakhscompared to previous year.

Capital Expenditure

During the year under review the Company has incurred capital expenditure of Rs.1501.53 Lakhs.

EXPANSION OF CAPACITIES

During the year under review the Company has successfully completed the process ofexpansion of CPC Green Plant with the capacity of 160 MTPM and Copper Sulphate (ByProduct) Plant with the capacity of 25 MTPM.

INTELLECTUAL PROPERTY RIGHTS

During the year under review the Company has filed trademark applications with theRegistrar of Trade Marks Trade Marks Registry Gujarat for its logo i.e. AksharChem andits product Pigment Green 7 i.e. Asaflow. The applications are under process.

CHANGE IN THE NATURE OF BUSINESS IF ANY

There was no change in the nature of business of the Company during the financial yearended 31st March 2017.

MATERIAL CHANGES AND COMMITMENT AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICHHAS OCCURRED BETWEEN THE END OF FINANCIAL YEAR TO WHICH THE FINANCIAL STATEMENTS RELATEAND THE DATE OF THE REPORT

There has been no material changes and commitment affecting the financial position ofthe Company which has occurred between the end of financial year to which the financialstatements relate and the date of the report.

CHANGE IN PROMOTERS HOLDING

During the year under review promoters family trusts Mrugesh Jaykrishna Family Trust-2and Munjal M. Jaykrishna Family Trust were in receipt of the SEBI order both dated March10 2016 bearing reference no. WTM/PS/186/CFD-DCR/MAR/2016 and WTM/PS/185/CFD-DCR/MAR/2016respectively granting an exemption from making an open offer under Regulation 3 of theTakeover Regulations in respect of the acquisition of shares of the Company. Accordinglyduring the year 2543571 (34.78%) equity shares held by Mrs. Paru M. Jaykrishna and621247 shares (8.49%) equity shares held by Mr. Gokul M. Jaykrishna of the Companywere transferred to Mrugesh Jaykrishna Family Trust -2 and 1125804 (15.39%) equityshares held by Mr. Munjal M. Jaykrishna and 504557 (6.90%) equity shares held by Mr.Gokul M. Jaykrishna were transferred to Munjal M. Jaykrishna Family Trust by way of blockdeal in a phased manner at a price prevailing on the stock exchange on the date ofrespective tranche of acquisition pursuant to the direction of aforesaid SEBI order.Further Mrugesh Jaykrishna Family Trust -2 has acquired 24001

(0.33%) Equity Shares of the Company through the stock exchange during the year. Thetotal promoter shareholding of the Company hence stands increased to 70.33% from 70.00%.During the year under review the name/status of the promoter company was changed fromIntercon Finance Private Limited to Chelsea Marketing LLP.

AUTHORISED SHARE CAPITAL

During the year under review the Authorized Share Capital of the Company has increasedfrom Rs. 850.00 Lakhs to Rs. 2000.00 Lakhs by passing of resolution through PostalBallot.

SHARE CAPITAL

Pursuant to the resolution of the Board of Directors of the Company dated November 142016 and July 13 2017 the resolution of the QIP Committee dated July 14 2017 theapproval of the shareholders of the Company by way of a special resolution through apostal ballot the results of which were declared on January 4 2017 your Companyundertook a Qualified Institutions Placement of up to 889690 Equity Shares of Rs. 10each of the Company at an issue price of Rs. 776 per equity share and allotment of thesaid equity shares pursuant to the issue was made on 20th July 2017.

Issue of Shares with differential rights

During the year under review the Company has not issued equity shares withdifferential rights.

Issue of Sweat Equity Shares

During the year under review the Company has not issued Sweat Equity Shares.

Issue of Employee Stock Options

During the year under review the Company has not issued any shares under EmployeeStock Option.

FINANCE AND INSURANCE

During the year under review the Company has availed Rs. 2.77 Crores Corporate loanfrom the Corporate Loan of Rs. 9.50 Crores sanctioned by State Bank of India hence theCompany has been financed by State Bank of I ndia for Working capital Term Loan andCorporate Loan.

All insurable interests of the Company including plant and machinery buildingstocks vehicles stores and spares have been adequately insured against various risks andperils.

PUBLIC DEPOSITS

The Company has not accepted deposit from public during the year and there was nodeposit outstanding on March 31 2017.

SUBSIDIARY COMPANIES

During the year under review the Company has sold the entire stake of M/s. AksharPigments Private Limited. Hence at the end of the financial year the Company does nothave any subsidiary company.

CERTIFICATIONS

During the year under review the Company has upgraded its quality certification withnew standard ISO 9001:2015 certification for quality management system and renewed ISO14001:2004 certification for environment management system of its plants of Vinyl Sulphoneand CPC Green at Village Indrad.

AWARDS AND RECOGNITION

During the year under review Mrs. Paru M. Jaykrishna Chairperson and ManagingDirector of the Company was adjudged:

• Top Performer Women Entrepreneur-NON MSME by Federation of Indian ExportOrganisations (FIEO) During the year under review the Company has received the followingawards Award of Excellency 2015-16 Dyes & Dye Intermediates Panel Small Scale Sectorfrom CHEMEXCIL

Second Award for self-manufactured direct export of Dye Intermediates in 2014-15 fromThe Gujarat Dyestuffs Manufacturers Association (GDMA) Special Trophy forself-manufactured direct export of Dyes of Rs. 14 Crores and above in 2014-15 from TheGujarat Dyestuffs Manufacturers Association (GDMA) Trophy for self-manufactured domesticsale of Dye Intermediates between Rs. 5 Crores to Rs. 15 Crores in 2014-15 from TheGujarat Dyestuffs Manufacturers Association (GDMA)

CREDIT RATING

The CARE has upgraded rating of the Company from "CARE A" (Single A) to"CARE A+" (Single A Plus) assigned to the long term bank loans/facilities. TheCARE has also upgraded rating assigned to the short term bank loans/facilities from"CARE A1" (A One) to "CARE A1+" (A One Plus).

LISTING

The Equity Shares of the Company continue to be listed on BSE Limited and AhmedabadStock Exchange Limited and required Listing Fees for the year 2017-18 has been paid.

7312900 Equity Shares of Rs. 10 each got listed on National Stock Exchange of IndiaLimited (NSE) and the trading commenced w.e.f. March 28 2017. The required fees for theyear 2016-17 and 2017-18 have been paid.

PARTICULARS OF CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGEEARNINGS AND OUTGO

The particulars as prescribed under Sub-section (3)(m) of Section 134 of the CompaniesAct 2013 read with the Companies (Accounts) Rules 2014 are enclosed as "AnnexureA" to the Board's report.

RISK MANAGEMENT

We believe that risk management is an integral part of our operations. It is essentialto identify and manage risks in order to reduce uncertainties and ensure continuity ofbusiness. We have a risk management framework and team that implements the processesspecified in the framework. Further details are set out in the Management Discussion andAnalysis Report forming part of the Directors' Report.

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

In accordance with the provisions of Section 135 of the Companies Act 2013 and therules framed there under the Company has a Corporate Social Responsibility Committee ofDirectors comprising Mrs. Paru M. Jaykrishna - Chairperson Mr. Gautam Jain and Mr.Kirankumar J. Mehta has inter alia also formulated a CSR Policy.

The role of the CSR Committee is to review the CSR policy indicate activities to beundertaken by the Company towards CSR activities and formulate a transparent monitoringmechanism to ensure implementation of projects and activities undertaken by the Companytowards CSR initiatives.

The Report on CSR Activities which forms part of the Directors' Report is annexed as"Annexure B" to this report.

POLICY ON APPOINTMENT AND REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Board has on the recommendation of the Nomination and Remuneration Committee frameda policy on selection and appointment of Directors Senior Management and theirremuneration. The Nomination and Remuneration Policy is put up on the website of theCompany at : www.aksharchemindia. com The details of programmes for familiarisation ofIndependent Directors with the Company their roles rights responsibilities in theCompany nature of the industry in which the Company operates business model of theCompany and related matters are put up on the website of the Company at :www.aksharchemindia.com

DISCLOSURES ON MANAGERIAL REMUNERATION

Details of Managerial Remuneration as required under Section 197 (12) of the CompaniesAct 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 is given as per "Annexure C" to this report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Resignation of Director

Mr. Jayprakash M. Patel (holding DIN: 00256790) has resigned as an IndependentDirector of the Company w.e.f. March 7 2017. The Board places on record its sense ofappreciation for the assistance and guidance provided by Mr. Jayprakash M. Patel duringhis tenure as an Independent Director of the Company.

Retirement by Rotation

In accordance with the provisions of the Companies Act 2013 and the Articles ofAssociation of the Company Mrs. Paru M. Jaykrishna (holding DIN: 00671721) Chairpersonand Managing

Director of the Company retire by rotation at the ensuing Annual General Meeting andbeing eligible have offered herself for reappointment. The Board recommends herreappointment.

Key Managerial Personnel

The following persons are the Key Managerial Personnel: Mrs. Paru M. JaykrishnaChairperson & Managing Director Mr. Munjal M. Jaykrishna Joint Managing Director& CFO Mr. Meet J. Joshi Company Secretary

Women Director

The Board of Directors of the Company includes a woman director viz. Mrs. Paru M.Jaykrishna. Accordingly the Company is in compliance with the requirement of section149(1) of the Companies Act 2013 read with Rule 3 of the Companies (Appointment andQualification of Directors) Rules 2014.

Independent Directors

All the Independent directors have been appointed for the term of five consecutiveyears from the date of Annual General Meeting of the Company held on 25th September 2014till the date of 30th Annual General Meeting in the year 2019 hence no IndependentDirector of the Company are liable to retire during the year under review.

Declaration by Independent Directors

The Company has received necessary declaration from each independent director underSection 149(7) of the Companies Act 2013 that he/she meets the criteria of independencelaid down in Section 149(6) of the Companies Act 2013 and Regulation 16 of SEBI (ListingObligations and Disclosure Requirements) Regulations 2015.

BOARD EVALUATION

Pursuant to the provisions of the Companies Act 2013 read with the Rules issuedthereunder and the SEBI (Listing Obligations and Disclosure Requirements) Regulations2015 (including any statutory modification(s) or re-enactment(s) for the time being inforce) the process for evaluation of the annual performance of the Directors/ Board/Committees was carried out.

PARTICULARS OF EMPLOYEES

The statement containing particulars of employees as required under Section 197(12) ofthe Act read with Rule 5(2) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 is provided as "Annexure D" to this report.

NUMBER OF MEETINGS OF THE BOARD

During the financial year 2016-2017 the Board of Directors of the Company met 8(Eight) times on May 24 2016 July 22 2016 August 14 2016 August 22 2016 November7 2016 November 14 2016 January 23 2017 and March 16 2017.

During the year under review one resolution for taking note of resignation of Mr.Jayprakash M. Patel (DIN: 00256790) as Independent Director of the Company was passed bycirculation on March 08 2017 and the same has been approved in subsequent meeting held onMarch 16 2017.

INDEPENDENT DIRECTORS' MEETING

A separate Meeting of the Independent Directors of the Company was also held on March16 2017 whereat the prescribed items enumerated under Schedule VI to the Companies Act2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015were discussed.

AUDIT COMMITTEE

The composition of the Audit committee as per the applicable provisions of the Act andRules are as follows: Mr. Kirankumar J. Mehta - Chairman Dr. Pradeep Jha - Member Mr.Param J. Shah - Member A detailed note on the Board and its committees is provided underthe Corporate Governance Report section in this Annual Report.

VIGIL MECHANISM/ WHISTLE BLOWER POLICY

Your Company is committed to highest standards of ethical moral and legal businessconduct. Accordingly the Board of Directors have adopted the vigil mechanism/whistleblower policy which is in compliance with the provisions of Section 177(10) of theCompanies Act 2013 and Regulation 22 of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015. Employees can raise concerns regarding anydiscrimination harassment victimization any other unfair practice being adopted againstthem or any instances of fraud by or against your Company. The Audit Committee overseesthe vigil mechanism.

INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY

The Board has adopted policies and procedures to ensure the orderly and efficientconduct of its business including but not limited to the prevention and detection offrauds and errors the safeguarding of its assets the accuracy and completeness of theaccounting records adherence to the company's policies periodical review of financialperformance of Company and review of the accounts every quarter by Statutory Auditors.

STATUTORY AUDITORS

M/s. Trushit Chokshi & Associates Chartered Accountants (Firm Registration No.111072W) Ahmedabad have been appointed as the statutory auditors of the Company in thecapacity of Partnership Firm in the Annual General Meeting held in the year 2016 for theFY 2016-17 and have completed a term. Their term as statutory auditors is up to theconclusion of the forthcoming AGM. In accordance with the provisions of Section 139 of theAct M/s. Mahendra N. Shah & Co. Chartered Accountants (Firm Registration No.105775W) Ahmedabad are proposed to be appointed as statutory auditors for a period of 5years commencing from the conclusion of ensuing AGM till the conclusion of the 33rd AGM ofthe Company to be held in 2022 subject to ratification of their appointment at every AGMif so required under the Act.

M/s. Mahendra N. Shah & Co. have consented to their appointment as StatutoryAuditors and have confirmed that their appointment if made will be in accordance withSection 139 read with Section 141 of the Act. Members are requested to approve theappointment of M/s. Mahendra N. Shah & Co. and authorize the Board of Directors to fixtheir remuneration. Your Board of Directors recommends their appointment as statutoryauditors.

On the recommendation of the Audit Committee it is proposed to appoint M/s. MahendraN. Shah & Co. as statutory auditors of the Company from the conclusion of the ensuingAnnual General Meeting of the Company until the conclusion of the 33rd Annual GeneralMeeting of the Company to be held in 2022.

The Company has received a letter to the effect that their appointment if made wouldbe within the prescribed limit under Section 139 (1) of the Companies Act 2013 and thatthey are not disqualified for appointment within the meaning of Section 141 of the saidAct and rules framed thereunder.

As required under SEBI (Listing Obligations and Disclosure Requirements) Regulations2015 the statutory auditors have also confirmed that they hold a valid certificate issuedby the Peer Review Board of the Institute of Chartered Accountants of India.

AUDITORS' REPORT

The Audit for the year 2016-17 have been carried out by M/s. Trushit Chokshi &Associates Chartered Accountants (Firm Registration No. 111072W) Ahmedabad and the noteson financial statement referred to in the Auditor's Report are self-explanatory and do notcall for any further comments. The Statutory Auditors have not reported any incident offraud to the Audit Committee of the Company in the year under review. The Auditors' Reportdoes not contain any qualification reservation or adverse remark on the financialstatements for the year ended March 31 2017.

SECRETARIAL AUDITORS

Mr. Bipin L. Makawana Practicing Company Secretary ( M embership No. A15650) wasappointed to conduct the secretarial audit of the Company for the financial year 2016-17as required under Section 204 of the Companies Act 2013 and Rules there under.Secretarial Audit Report for F.Y. 2016-17 forms part of the Annual Report as"Annexure E" to the Board's report. The Secretarial Auditor has not made anyadverse comments or given any qualification reservation or adverse remarks or disclaimerin their Audit Report.

COST AUDITOR

During the year under review the provision regarding Cost Audit is not applicable tothe Company.

EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in Form MGT-9 is appendedas "Annexure F" to this report.

PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS MADE

Particulars of loans guarantees or investments covered under Section 186 of theCompanies Act 2013 forms part of the notes to the financial statements provided in thisAnnual Report.

PARTICULARSOFCONTRACTSORARRANGEMENTS ENTERED INTO WITH RELATED PARTIES

All Related Party transactions that were entered into during the year under review werein ordinary course of business and were on arm's length basis. There are no materiallysignificant related party transactions made by the Company which may have potentialconflict of interest.

Further there were no material related party transactions which are not in ordinarycourse of business and are not on arm's length basis and hence there are no informationrequired to be provided under Section 134(3)(h) of the Companies Act 2013 read with rule8(2) of the Companies (Accounts) Rules 2014 in form AOC-2 and under Section 188(2) of theCompanies Act 2013.

SIGNIFICANT OR MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALSIMPACTING THE GOING CONCERN STATUS OF THE COMPANY AND / OR THE COMPANY'S OPERATIONS INFUTURE.

There were no significant or material orders passed by the regulators or Courts orTribunals impacting the going concern status of the Company and / or the Company'soperations in future.

MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT

In terms of Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 a Management Discussion and Analysis Report is appended as"Annexure G" to this Report.

CORPORATE GOVERNANCE

Your Company is committed to maintain the highest standards of Corporate Governance. Aseparate Corporate Governance Report as stipulated under Chapter IV read with Schedule Vof SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 is furnishedas "Annexure H" to this Report together with certificate from M/s. TrushitChokshi & Associates Chartered Accountants Ahmedabad confirming compliance with theconditions of Corporate Governance.

DIRECTORS' RESPONSIBILITY STATEMENT

In accordance with the provisions of Section 134(3)(c) of the Companies Act 2013 andbased on the information provided by the management your directors state that:

(a) in the preparation of the annual accounts for the year ended March 31 2017 theapplicable accounting standards read with requirements set out under Schedule III to theAct have been followed and there are no material departures from the same;

(b) the Directors have selected such accounting policies and applied them consistentlyand made judgements and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company as at March 31 2017 and of the profit ofthe Company for the year ended on that date;

(c) the Directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;

(d) the Directors have prepared the annual accounts on a ‘going concern' basis;

(e) the Directors have laid down internal financial controls to be followed by theCompany and that such internal financial controls are adequate and are operatingeffectively; and

(f) the Directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems are adequate and operating effectively.

DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SUB_SECTION _12_ OF SECTION 143OTHER THAN THOSE WHICH ARE REPORTABLE TO THE CENTRAL GOVERNMENT

During the year under review there were no frauds reported by Auditors under section143 (12).

DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE _PREVENTION PROHIBITION ANDREDRESSAL_ ACT 2013

In line with the Sexual Harassment of Women at workplace (Prevention Prohibition andRedressal) Act 2013 and Rules made there under the Company has adopted a policy for thesame. During the year under review no case was reported to the Committee.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Our human capital contributes significantly to our business operations and we believethat employees are our valuable asset and core strength. To further support that strengthwe have identified skill set building as one of key business drivers and have focused ouremployee initiatives in that direction. We periodically organize various trainings for ouremployees to enhance their knowledge and skills. Our learning and development trainingprograms are governed by quality business management principles adopted by us whichinclude a principle of in-depth identification of development needs and comprehensivestructure of learning and development.

We believe that our human resources initiatives led to positive trends in theproduction quality cost delivery safety and morale parameters in manufacturing ahigher level of engagement in workers better working relationships between sales managersand reportees. We also engage contract labour depending on our requirements from time totime particularly at our manufacturing facilities. The attrition rate of the Company isvery low as compare to other companies in the concerned sector. Industrial relationsremained harmonious with a focus on productivity quality and safety throughout the year.Your directors wish to place on record their sincere appreciation for the devoted servicesof all the employees and workers of the Company.

ENVIRONMENT SAFETY AND HEALTH

Your Company continues to exercise persistent and meticulous efforts towards greenerearth and environment conservation. The Company preserves in its efforts to teach safe andenvironmentally accountable behavior in every employee as well as its vendors. TheCompany is committed towards safety not only of its own men and plant but also of thesociety at large. Solid waste generated at the Works after treatment of its liquideffluent is shifted to a Gujarat Pollution Control Board (GPCB) approved site.

The Company continues to demonstrate its commitment to a clean and safe environment.The State of the art effluent treatment plant continues to run satisfactorily so that thetreated waste water discharged is well within the stipulated norms set by GPCB.

Your Company has ISO 14001:2004 and ISO 9001:2015 certification for its unit.

APPRECIATION AND ACKNOWLEDGEMENTS

Your Directors are grateful and pleased to place on record their thanks to Governmentof India Government of Gujarat Electricity supply companies and Bankers for theirexcellent support guidance and continued cooperation. The Company is thankful to theshareholders for reposing trust in the Company and their unflinching enthusiasm andpatronage.

Place : Indrad Mehsana For and on behalf of Board of Directors
Date : 27.07.2017
Regd. Office: Paru M. Jaykrishna
166-169 Village Indrad Chairperson & Mg. Director
Kadi – Kalol Road Dist : Mehsana DIN: 00671721
Gujarat – 382 715 (India)
CIN: L24110GJ1989PLC012441

Particulars of Energy Conservation Technology Absorption and Foreign Exchange Earningsand Outgo required under the Companies (Accounts) Rules 2014.

A. CONSERVATIONOF ENERGY

(i) the steps taken or impact on conservation of energy

The Company mainly focuses on the conservation of the energy and its utilization. Mainefforts taken by the Company for the same is upgradation and maintenance of machineries ofthe plant at necessary intervals and replacement of pumps with appropriate and efficientpumps and the company has put variable frequency drive for major operational equipmentsfor reduction of power consumption.

(ii) Steps taken by the Company for utilising alternate sources of energy -

The Company has not used any alternate source of energy except of the natural gasduring the year under review.

(iii) The capital investment on energy conservation equipments

During the year under review there was no capital investment on energy conservationequipments.

B. TECHNOLOGY ABSORPTION

(i) The efforts made towards technology absorption

For technology absorption company is providing the training to operators of the plantfor smooth running and cost effective maintenance of the plants and machineries.

(ii) The benefits derived like product improvement cost reduction product developmentor import substitution

Company has upgraded the packing system of CPC Green for quality improvements andmodernization.

(iii) Information regarding imported technology (Imported during last three years)

a. Technology imported :N il
b. Year of Import :Not Applicable
c. Has technology been fully absorbed? :N il
d. If not fully absorbed areas where absorption has not taken place and the reasons thereof :Not Applicable

(iv) Expenditure incurred on Research and Development

( R s. Lakhs)

Sr. No. Particulars 2016-17 2015-16
1 Capital Nil Nil
2 Revenue 10.04 11.05
Total 10.04 11.05
Total Expenditure as a % of Turnover 0.04% 0.06%

C. FOREIGNEXCHANGE EARNINGSAND OUTGO_

(i) Activities relating to export initiatives to increase exports Developments of Newexport markets for Products and Services and Export Plan.

The Company exports its product to Europe Far East South East Asia China USA andother countries. The Company has continued to maintain focus and availed exportopportunities based on economic situation. During the year under review the Companyexported Vinyl Sulphone and CPC Green valuing to Rs. 23212.39 Lakhs (Previous Year Rs.15283.50 Lakhs) to various countries around the World. Continuous efforts are being takento increase exports by exploring new markets.

(ii) Total Foreign exchange Earned and Used

( R s. Lakhs)

Particulars 2016-17 2015-16
Foreign Exchange earned in terms of Actual Inflows 23212.39 15283.50
Foreign Exchange outgo in terms of Actual Outflows 297.06 226.69