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AksharChem (India) Ltd.

BSE: 524598 Sector: Industrials
NSE: AKSHARCHEM ISIN Code: INE542B01011
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OPEN 295.70
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VOLUME 1681
52-Week high 613.50
52-Week low 232.30
P/E 17.65
Mkt Cap.(Rs cr) 221
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 295.70
CLOSE 277.20
VOLUME 1681
52-Week high 613.50
52-Week low 232.30
P/E 17.65
Mkt Cap.(Rs cr) 221
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 Thirty Second Annual Report together withthe Audited Financial Statements of your Company for the financial year ended March 312021.

(H in Lakhs)

Particulars Current Year 2020-21 Previous Year 2019-20
Revenue from operations 24648.29 26014.50
Other Income 112.81 105.24
Total Income 24761.10 26119.74
Profit for the year before Finance Costs Depreciation Exceptional Items and Tax Expenses 2503.57 2694.50
Less: Finance Costs 68.52 110.76
Profit for the year before Depreciation Exceptional Items and Tax Expenses 2435.05 2583.74
Less: Depreciation 704.99 672.78
Profit for the year before Exceptional Items and Tax Expenses 1730.06 1910.96
Add/(Less): Exceptional Items Nil Nil
Profit for the year before Tax Expenses 1730.06 1910.96
Less: Current Tax 333.50 499.73
Less: Deferred Tax 176.63 (168.36)
Less: Adjustment of tax for earlier years (Net) (30.16) 7.32
Net Profit for the year 1250.09 1572.27
Add: Balance brought forward from last year 16187.45 15308.22
Depreciation Adjustment Nil Nil
Deferred tax on Depreciation Adjustment Nil Nil
Surplus available for Appropriation 17437.54 16880.49
Appropriation
Other Comprehensive Income 19.43 (0.84)
Transfer to General Reserve Nil Nil
Interim Dividend of H Nil per Equity Share (P. Y. H 3.50 per Equity Share) Nil 287.09
Final Dividend of H Nil per Equity Share (P. Y. H 3.50 per Equity Share) Nil 287.09
Tax on dividend Nil 118.02
Balance carried over to Balance Sheet 17456.97 16187.45

IMPACT OF THE COVID-19 ON BUSINESS OF THE COMPANY

The year is full of challenges and disruptions caused by COVID affecting productivityand supply. Export business was severely impacted during the year due to lockdown andcertain challenges relating to manufacturing operations logistic and supply of rawmaterial. The pigment though was largely unaffected and the company continues to registerhealthy volume numbers supported by strong capacity utilization.

Further we believe FY 22 will turnout to be a normal year with improvement in revenueand margins compare to FY 21 provided textile demand recovers and become normal. Lotdepends on demand of global textile market since dyes and intermediate business mainlydepends on textile demand. We believe textile demand to improve heavily in next six totwelve months. Pigments will be remain stable to positive.

DIVIDEND

After considering the profitability cash flow and overall financial performance of theCompany Board of Directors of the Company are pleased to recommend a final dividend of H3.50 per equity share (35% on the face value of H 10/- each) for the year ended March 312021 subject to approval of the members at the forthcoming Annual General Meeting.

During the previous financial year the Company has paid interim dividend of H 3.50 perequity share (35% on face value of Rs. 10 each) and the total outgo was H 287.09 Lakhstowards dividend and H 59.01 Lakhs towards dividend distribution tax.

The final dividend if declared as above would involve a total outgo of H 287.09 Lakhstowards dividend for the year.

TRANSFER OF UNCLAIMED SHARES & DIVIDEND AMOUNT TO INVESTOR EDUCATION AND PROTECTIONFUND

Section 124(6) of the Companies Act 2013 requires a Company to transfer in the nameof Investors Education and Protection Fund (IEPF) Authority all shares in respect of whichdividend has not been paid or claimed for 7 (seven) consecutive years or more. Inaccordance with the said provisions read with the Investors Education and Protection FundAuthority (Accounting Audit Transfer and Refund) Rules 2016 as amended the Company isin the process to transfer all shares in respect of which dividends declared for the year2013-2014 has not been paid or claimed by members for 7 (seven) consecutive years or more.

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 H 1250.09 Lakhs in the Statement of Profit and Loss.

STATE OF COMPANY’S AFFAIRS

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

General

During the year under review the Company has reported 5.25% and 20.49% YoY decline inrevenue from operations and profit to H

24648.29 Lakhs and H 1250.09 Lakhs respectively. The financial performance of the year2020-21 in terms of revenues was impacted due to lower realisations which were a resultof Covid -19 Pandemic which led to reduction in demand from end user industries.

Results of Operations

During the year under review the revenue from operations of the Company has decreasedfrom H 26014.50 Lakhs to H 24648.29 Lakhs and the Profit after Tax (PAT) has decreasedfrom H 1572.27 Lakhs to H 1250.09 Lakhs. We witnessed Covid 19 Pandemic which wasunexpected and effect of the same remained during FY 21. Top line and bottom-line remainedunder pressure during full FY 21. The Profitability of the Company was affected mainly dueto that factor.

Exports

The export turnover has decreased from H 20645.70 Lakhs to H 19494.79 Lakhs comparedto previous year. Export business severely impacted during the year due to lockdown andcertain challenges relating to manufacturing operations logistic and supply of rawmaterial.

INTELLECTUAL PROPERTY 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. Asaflow. During the year under review the Company has also filedapplication for trademark of brand names for its product namely precipitated silica whichis under progress.

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 2021.

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 2021.

SUBSIDIARY COMPANIES

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

CERTIFICATIONS

During the year under review the Company have its quality certifications with newstandard ISO 14001:2015 certification for environment management system of its plants ofVinyl Sulphone and CPC Green at Village Indrad and also have ISO 9001:2015 certificationfor 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.

CREDIT RATING

The CARE Ratings Limited has reviewed the ratings on the bank facilities of the Companyand reaffirmed the rating of the Company as "CARE A+" (Single A Plus) assignedto the long term/short term bank facilities for fund based limit and "CARE A1+"(A One Plus) assigned to the short term bank facilities for non fund based limit.

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 2021-22 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.

The composition of the CSR committee as per the applicable provisions of the Act andRules is as follows:

Mrs. Paru M. Jaykrishna- Chairperson Mr. Gautam Jain- 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.

Mrs. Paru M. Jaykrishna - Chairperson Mr. Gautam Jain and Ms.

Maitri K. Mehta has inter alia also formulated a CSR Policy.

In terms of Amendment to Companies (Corporate Social Responsibility Policy) AmendmentRules 2021 (the CSR Rules 2021") effective from 22nd January 2021 theCompany’s CSR Committee at its meeting held on 12th February 2021 had revised policyof the Company. The Company is not required to deposit any amount in a separate Bankaccount opened with a Scheduled Bank in Compliance with CSR Rules 2021 for the CSRidentified projects.

In line with Company’s objective under its CSR policy to support the society at alarge the Company has distributed food grains in nearby villages to the people affectedby lockdown due to COVID-19.

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 of Independent Directors with theCompany their roles rights responsibilities in the Company nature of the industry inwhich the Company operates business model of the Company and related matters are put upon the website of the Company at: www.aksharchemindia.com

DIVERSITY OF THE BOARD

The Company recognises and embraces the benefit of having a diverse Board of Directorsand views increasing diversity at the Board level as an essential element in maintainingcompetitive advantage in the Business in which it operates. This Policy is put up on thewebsite 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

As recommended by the Nomination and Remuneration Committee the Board of Directors ofthe Company has approved the re-appointment of Mrs. Paru M. Jaykrishna as Chairperson& Managing Director of the Company for a term of five years w.e.f. 1st April 2021subject to approval of members of the Company.

Appropriate resolutions seeking your approval to the above is appearing in the Noticeconvening the 32nd AGM of your Company.

Retirement by Rotation

In accordance with the provisions of the Companies Act 2013 and the Articles ofAssociation of the Company Mr. Gokul M. Jaykrishna (DIN: 00671652) Director of theCompany retire by rotation at the ensuing Annual General Meeting and being eligible haveoffered himself for re-appointment. The Nomination and Remuneration Committee and Boardrecommends his reappointment.

Brief profile of the Director being re-appointed as required under Regulations 36(3) ofListing Regulations 2015 and Secretarial Standard on General Meetings is provided in theNotice of the forthcoming AGM of the Company.

Key Managerial Personnel

The following persons are the Key Managerial Personnel:

Mrs. Paru M. Jaykrishna Chairperson & Managing Director Mr. Munjal M. JaykrishnaJoint Managing Director & CEO Mr. Amit D. Soni Chief Financial Officer (CFO) Mr. MeetJ. Joshi Company Secretary (CS)

Women Director

The Board of Directors of the Company includes women 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 reappointed forthe period of five years w.e.f. August 12 2019 Mr. Jigar M. Patel was appointed as anindependent director of the Company for the period of five years w.e.f. December 11 2017and Ms. Maitri K Mehta was appointed as an independent director of the Company for theperiod of five years w.e.f. March 28

2019. No Independent Directors of the Company are liable to retire during the yearunder 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 assess its own performance as aBoard 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 Board hascarried out an annual evaluation of its own performance performance of its Committees aswell 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 2020-2021 the Board of Directors of the Company met 4(Four) times on June 30 2020 August 14 2020 November 11 2020 and February 12 2021.

INDEPENDENT DIRECTORS’ MEETING

A separate Meeting of the Independent Directors of the Company was also held onFebruary 12 2021 whereat the prescribed items enumerated under Schedule IV to theCompanies Act 2013 and the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 were discussed.

AUDIT COMMITTEE

The composition of the Audit committee as per the applicable provisions of the Act andRules is 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 offinancial performance of Company and review of the accounts every quarter by StatutoryAuditors. The Company has appointed Independent Internal Auditors who periodically auditthe adequacy and effectiveness of the internal controls and suggest improvements.

Internal Control Systems are reviewed by Audit Committee headed by a Non- ExecutiveIndependent Director on a regular basis for its effectiveness and the necessary changessuggested are interpreted into the system. Every quarter the Audit Committee reviews theadequacy and effectiveness of internal control systems and monitors the implementation ofimprovement actions.

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 the 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 2020-21 which forms partof the Annual Report 2020-21. There are no observations (including any qualificationreservation adverse remark or disclaimer) of the Auditors in their Audit Reports that maycall for any explanation from the Directors.

SECRETARIAL AUDITORS

Mr. Bipin L. Makwana Practicing Company Secretary (Membership No. A15650) wasappointed to conduct the secretarial audit of the Company for the financial year 2020-21as required under Section 204 of the Companies Act 2013 and Rules there under.Secretarial Audit Report for F.Y. 2020-21 forms part of the Annual Report as"Annexure E" to the Board's report.

The Secretarial Auditor has not made any 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.

ANNUAL RETURN

Pursuant to Section 92(3) read with section 134(3)(a) of the Companies Act 2013 copyof the Annual Return of the Company prepared in accordance with Section 92(1) of the Actread with Rule 11 of the Companies (Management and Administration) Rules 2014 may beaccessed on the Company’s website at: https://www.aksharchemindia.com/uploads/report/901162997216 4MGT-7.pdf

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. The same has been utlised by recipient for business purpose.

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 were nomaterially significant related party transactions made by the Company which may havepotential conflict of interest.

Further there were no material related party transactions which were not in ordinarycourse of business and were not on arm’s length basis and hence there was noinformation required to be provided under Section 134(3)(h) of the Companies Act 2013read with rule 8(2) of the Companies (Accounts) Rules 2014 in form AOC-2 and underSection 188(2) of the Companies 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 OPERATIONSIN FUTURE

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 F" 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 G" 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 2021 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 2021 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

Your Company has zero tolerance for sexual harassment at workplace. The Company hasadopted a Policy on Prevention Prohibition and Redressal of Sexual Harassment atworkplace in line with the provisions of the Sexual Harassment of Women at Workplace(Prevention Prohibition and Redressal) Act 2013 (POSH Act) and the rules framedthereunder. It is the continuous endeavor of the Management of the Company to create andprovide an environment to all its employees that is free from discrimination andharassment including sexual harassment. During the year under review the Committee hadnot received any complaint.

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.

GREEN INITIATIVE

The Ministry of Corporate Affairs had taken the Green Initiative in Report on CorporateGovernance by allowing paperless compliances by Companies through electronic mode. YourCompany supports the Green Initiative and has accordingly decided to send necessarycommunications to its Shareholders to their respective registered E-mail addresses.

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 effluent is shiftedto 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 14001:2015 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 theirunflinching 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 appearto be forward-looking within the meaning of applicable securities laws and regulationswhile actual outcomes may differ materially from what is expressed herein. The Company isnot obliged to update any such forward-looking statement. Some important factors thatcould influence the Company’s operations comprise of economic developments pricingand demand and supply conditions in global and domestic markets changes in governmentregulations tax laws litigation and industrial relations.

For and on behalf of Board of Directors
Place: Indrad Mehsana PARU M. JAYKRISHNA
Date: August 11 2021 Chairperson & Mg. Director
DIN: 00671721

Registered Office:

"Akshar House"

Chhatral Kadi Road

Indrad – 382 715

Mehsana Gujarat (India)

CIN : L24110GJ1989PLC012441

Phone: +91 2764 233007

Fax: +91 2764 233550

Website: www.aksharchemindia.com

Email id: cs@aksharchemindia.com

.