Dear Shareholders

Your Directors are pleased to present their Thirtieth Annual Report together with theAudited Financial Statements of your Company for the financial year ended March 31 2019.

FINANCIAL HIGHLIGHTS

(Rs. in Lakhs)

DIVIDEND

After considering the profitability cash flow and overall financial performance of theCompany your Board of Directors of the Company are pleased to recommend a final dividendof Rs.3.50 per equity share (35% on the face value of Rs.10/- each) for the year endedMarch 31 2019 subject to approval of the members at the forthcoming Annual GeneralMeeting. During the previous financial year the Company has paid final dividend ofRs.3.50 per equity share (35% on face value of Rs.10 each) and the total outgo wasRs.287.09 Lakhs towards dividend and Rs.59.01 Lakhs towards dividend distribution tax.

The final dividend if declared as above would involve a total outgo of Rs.287.09 Lakhstowards dividend for the year and Rs.59.01 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.2258.95 Lakhs in the Statement of Profit and Loss.

STATE OF COMPANY'S AFFAIRS

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

General

Financial Year 2019 has ended on a positive note with topline growth of 22% Y-o-Y. Ourgrowth was led by increase in volumes change in product mix and higher realizations.

On volume front we have achieved Y-o-Y growth of 9% with a volume of 9562 metrictonnes. On product mix we have introduced new products H-Acid along with a change inproduct mix of Vinyl Sulphone and green. On realisation front Higher realizations werelargely due to environmental situation in China which we expect to stabilize from its peakin the coming financial year part of which is reflected in our FY2019 realizations.

However our profitability was impacted due to several internal and external reasons.Our gross profit margins were impacted on back of high volatility of crude prices alongwith currency fluctuations which was beyond our control. Also there was disruption insupply of a few of the input raw materials resulting in increased cost of production.

Results of Operations

During the year under review the turnover of the Company has increased fromRs.26471.61 Lakhs to Rs.32288.38 Lakhs. However the Profit after Tax (PAT) hasdecreased from Rs.3056.14 Lakhs to Rs.2258.95 Lakhs.

Exports

The export turnover has increased from Rs.22483.15 Lakhs to Rs.26682.54 Lakhscompared to previous year. Continuous efforts are being taken to increase exports byexploring new markets.

INTELLECTUAL PROPORTY RIGHTS

The Company is having the certificate for registration of trademark from the Registrarof Trade Marks Trade Marks Registry Gujarat for its logo i.e. AksharChem and its productPigment Green 7 i.e. As allow.

CHANGE IN THE NATURE OF BUSINESS IF ANY

There was no change in the nature of business of the Company during the financial yearended March 31 2019.

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.

AUTHORISED SHARE CAPITAL

During the year under review there is no change in the Authorized Share Capital of theCompany.

SHARE CAPITAL

During the year under review the paid up capital of the Company has remained the same.

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

The Company has been financed by State Bank of India.

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 2019.

SUBSIDIARY COMPANIES

During the year under review the Company does not have any subsidiary.

CERTIFICATIONS

During the year under review the Company has upgraded its quality certification withnew standard ISO 14001:2015 certification for environment management system of its plantsof Vinyl Sulphone and CPC Green at Village Indrad and also have ISO 9001:2015certification for quality management system.

EXPORT HOUSE STATUS

The Company has the status of "One Star Export House" by Office of AdditionalDirector General of Foreign Trade Ahmedabad in accordance with provisions of ForeignTrade Policy 2015-2020. This status is valid till December 21 2022.

AWARDS AND RECOGNITION

During the year under review the Company has received the following awards

• Trishul Award for the outstanding export performance in Panel I: Dyes and DyeIntermediates (SSM+ME) for the year 2016-17 from CHEMEXCIL

• Second Award for self manufactured direct export of Dye Intermediates during theyear 2016-17 from GDMA

• Special Trophy for self manufactured direct export of Dyes of Rs.5 Crores andabove during the year 2016-17 from GDMA

• Trophy for self manufactured domestic sale of Dye Intermediates between Rs.5Crores to Rs.15 Crores during the year 2016-17 from GDMA

CREDIT RATING

The CARE Ratings Limited has reviewed the ratings on the bank facilities of the Companyand reafirmed the rating of the Company as "CARE A+" (Single A Plus) assigned tothe long term bank loans/ facilities and "CARE A1+" (A One Plus) assigned to theshort term bank loans/facilities.

LISTING

The Equity Shares of the Company continue to be listed on BSE Limited (BSE) NationalStock Exchange of India Limited (NSE) and Ahmedabad Stock Exchange Limited (ASE) andrequired Listing Fees for the year 2019-20 has 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 which was reconstituted during the year under review. The composition of the CSRcommittee as per the applicable provisions of the Act and Rules are as follows: Mrs.Paru M. Jaykrishna - Chairperson Mr. Gautam Jain - Member Ms. Maitri K. Mehta - Member Adetailed note on the Board and its committees is provided under the Corporate GovernanceReport section in this Annual Report. Mrs. Paru M. Jaykrishna - Chairperson Mr. GautamJain and Ms. Maitri K. 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 PERSONEL

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.

Appointment of Director

Upon the recommendation of the Nomination and Remuneration Committee Ms. Maitri K.Mehta was appointed as an Additional Director (Non-Executive Independent) and Mr. AshokD. Barot was appointed as an Additional Director (Executive) w.e.f. March 28 2019 andthey hold office upto the forthcoming AGM of the Company. Necessary Resolution forappointment of Ms. Maitri K. Mehta as an Independent Director and Mr. Ashok D. Barot asExecutive Director has been included in the Notice convening the AGM.

The Board of Directors at its meeting held on March 28 2019 has reappointed Mr. MunjalM. Jaykrishna as Joint Managing Director & CEO of the Company for a further period of5 years subject to approval of shareholders at the ensuing Annual General Meeting.

Mr. Gautam Jain will complete his present term as an Independent Director in ensuingAnnual General Meeting. The board at the meeting held on August 12 2019 on therecommendation of the Committee recommended for the approval of the Members thereappointment of Mr. Gautam Jain as an Independent Director of the Company for a period offive years with effect from August 12 2019.

Dr. Pradeep Jha will complete his present term as an Independent Director on ensuingAnnual General Meeting. The board at the meeting held on August 18 2019 on therecommendation of the Committee recommended for the approval of the Members thereappointment of Mr. Gautam Jain as an Independent Director of the Company for a period offive years with effect from August 12 2019.

Appropriate resolutions seeking your approval to the above are appearing in the Noticeconvening the 30th AGM of your Company.

Cessation of Director due to death

Mr. Kirankumar J. Mehta Non-Executive Independent Director of the Company ceased to beDirector w.e.f. February 16 2019 due to his death. The Directors place on record theirdeep appreciation for his valuable guidance and assistance received during the tenure as aDirector and Member / Chairman of various committees of the Directors of the Company.

Retirement by Rotation

In accordance with the provisions of the Companies Act 2013 and the Articles ofAssociation of the Company Mr. Munjal M. Jaykrishna (DIN: 00671693) Director of theCompany retire by rotation at the ensuing Annual General Meeting and being eligible haveoffered himself for re-appointment. The Board recommends his reappointment.

Key Managerial Personnel

The following persons are the Key Managerial Personnel:

Mrs. Paru M. Jaykrishna Chairperson & Managing Director

Mr. Munjal M. Jaykrishna Joint Managing Director & CEO

Mr. Meet J. Joshi Company Secretary

Mr. Sunil V. Rane General Manager (Accounts) & CFO

Women Director

The Board of Directors of the Company includes a woman director viz. Mrs. Paru M.Jaykrishna and Ms. Maitri K. Mehta. Accordingly the Company is in compliance with therequirement of section 149(1) of the Companies Act 2013 read with Rule 3 of the Companies(Appointment and Qualification of Directors) Rules 2014.

Independent Directors

Mr. Gautam M. Jain and Dr. Pradeep Jha Independent directors have been appointed forthe term of five consecutive years from the date of Annual General Meeting of the Companyheld on September 25 2014 till the date of 30th Annual General Meeting in the year 2019Mr. Jigar M. Patel was appointed as independent director of the Company for the period offive years w.e.f. December 11 2017 and Ms. Maitri K. Mehta was appointed as independentdirector of the Company for the period of five years w.e.f. March 28 2019. No IndependentDirectors of the Company except Mr. Gautam M. Jain and Dr. Pradeep Jha are liable toretire 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

The Board of Directors of the Company is committed to assessing its own performance asa Board in order to identify its strengths and areas in which it may improve itsfunctioning. To that end the Nomination and Remuneration Committee has establishedprocesses for performance evaluation of Independent Directors the Board and Committees ofthe Board. Pursuant to the provisions of the Act and the Listing Regulations the Boardhas carried out an annual evaluation of its own performance performance of its Committeesas well as the Directors individually. Details of the evaluation mechanism are provided inthe Corporate Governance Report.

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 2018-2019 the Board of Directors of the Company met 5(Five) times on May 30 2018 August 08 2018 October 30 2018 February 05 2019 andMarch 28 2019.

INDEPENDENT DIRECTORS' MEETING

A separate Meeting of the Independent Directors of the Company was also held on March28 2019 whereat the prescribed items enumerated under Schedule IV to the Companies Act2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015were discussed.

AUDIT COMMITTEE

The Company has reconstituted the Audit Committee of Directors of the Company duringthe year under review. The composition of the Audit committee as per the applicableprovisions of the Act and Rules are as follows:

Dr. Pradeep Jha - Chairman

Mr. Jigar M. Patel - Member

Ms. Maitri K. Mehta - Member

A detailed note on the Board and its committees is provided under the CorporateGovernance 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

The Statutory Auditors M/s. Mahendra N. Shah & Co. Chartered Accountants (FirmRegistration No. 105775W) Ahmedabad were appointed as the Statutory Auditors of theCompany for a term of five years up to the conclusion of the 33rd Annual General Meetingof the Company if so required under the Law.

M/s. Mahendra N. Shah & Co. Chartered Accountants has expressed their willingnessto be appointed as Statutory Auditors of the Company. They further confirmed that it saidappointment if made would be within prescribed limits under Section 141 of the CompaniesAct 2013 and that they are not disqualified for appointment.

Pursuant to Section 139 and 141 of the Companies Act 2013 and relevant Rulesprescribed there under the Company has received certificate from the Auditors to theeffect inter-alia that their appointment would be within the limits laid down by theAct shall be as per the term provided under the Act that they are not disqualified forsuch appointment under the provisions of applicable laws and also that there are nopending proceedings against them or any of their partners with respect to professionalmatters of conduct.

The Auditors have also confirmed that they have subjected themselves to the peer reviewprocess of Institute of Chartered Accountants of India (ICAI) and hold a valid certificateissued by the Peer Review Board of the ICAI.

M/s. Mahendra N. Shah & Co. Chartered Accountants have submitted their Report onthe Financial Statements of the Company for the Financial Year 2018-19 which forms partof the Annual Report 2018-19. There are no observations (including any qualificationreservation adverse remark or disclaimer) of the Auditors in their Audit Reportsthat may call for any explanation from the Directors.

SECRETARIAL AUDITORS

Mr. Bipin L. Makawana Practicing Company Secretary (Membership No. A15650) wasappointed to conduct the secretarial audit of the Company for the financial year 2018-19as required under Section 204 of the Companies Act 2013 and Rules there under.Secretarial Audit Report for F.Y. 2018-19 forms part of the Annual Report as"Annexure E" to the Board's report.

The Secretarial Auditor has not made any adverse comments or given any qualificationreservation or adverse remarks or disclaimer in their Audit Report.

COST AUDITOR

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

CASH FLOW STATEMENT

As required under Regulation 34(2) (c) of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 a Cash Flow Statement prepared in accordance with theIndian Accounting Standard 7 (IND AS-7) is attached to the Financial Statement.

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.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS 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 Mr. Bipin L.Makawana Practicing Company Secretary (Membership No. A15650) confirming compliance withthe conditions 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 2019 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 2019 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

The Company is committed to provide a safe and conducive work environment to itsemployees. During the year under review there were no cases filed pursuant to the SexualHarassment of Women at Workplace (Prevention Prohibition and Redressal) Act 2013.

COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD AND GENERAL MEETINGS

The Company has complied with Secretarial Standards issued by the Institute of CompanySecretaries of India on Meetings of the Board of Directors and General Meetings.

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 liquid effuent is shifted toa 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 effuent 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 14001:2015 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 the shareholders for reposing trust in the Company and theirun_inching enthusiasm and patronage.

CAUTIONARY STATEMENT

The Board's Report and Management Discussion & Analysis may contain certainstatements describing the Company's objectives expectations or forecasts that appear tobe forward-looking within the meaning of applicable securities laws and regulations whileactual outcomes may differ materially from what is expressed herein. The Company is notobliged to update any such forward-looking statement. Some important factors that couldinfluence the Company's operations comprise of economic developments pricing and demandand supply conditions in global and domestic markets changes in government regulationstax laws litigation and industrial relations.