You are here » Home » Companies » Company Overview » Axita Cotton Ltd

Axita Cotton Ltd.

BSE: 542285 Sector: Industrials
NSE: N.A. ISIN Code: INE02EZ01014
BSE 00:00 | 14 Jun 37.20 -1.30
(-3.38%)
OPEN

37.10

HIGH

37.40

LOW

37.05

NSE 05:30 | 01 Jan Axita Cotton Ltd
OPEN 37.10
PREVIOUS CLOSE 38.50
VOLUME 12000
52-Week high 51.00
52-Week low 25.30
P/E 137.78
Mkt Cap.(Rs cr) 49
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 37.10
CLOSE 38.50
VOLUME 12000
52-Week high 51.00
52-Week low 25.30
P/E 137.78
Mkt Cap.(Rs cr) 49
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Axita Cotton Ltd. (AXITACOTTON) - Director Report

Company director report

Dear Shareholders

The Board of Directors hereby submits the report of the business and operations of yourCompany ("the Company") along with the audited financial statements for thefinancial year ended March 31 2020.

FINANCIAL RESULTS:

The Company's financial performance for the year ended March 31 2020 is summarizedbelow:

(Amount in Rs. Lakhs)

PARTICULARS YEAR ENDED 31.03.2020 YEAR ENDED 31.03.2019
Net Sales/Income from Operations (Net of GST) 48441.38 21179.84
Other Income 13.25 232.53
Total Income from Operations (Net) 48454.63 21412.37
Earnings Before Interest Taxes Depreciation and Amortization Expense 401.93 305.21
Less: Finance Cost 295.29 179.67
Less: Depreciation and Amortization Expense 52.87 56.50
Profit Before Tax 53.77 69.04
Less: Tax Expenses
Current Tax 20.87 25.47
Deferred Tax (2.42) (2.57)
Profit After Taxation 35.32 46.14

COMPANY'S PERFORMANCE:

The total income from operations (net) of the Company for the year under review isRs.48454.63 Lakhs as compared to Rs.21412.37 Lakhs in the previous year the totalincome from operations (net) of the Company has increased by 126.29% as compared toprevious year. Profit after taxation stood at Rs.35.32 Lakhs as compared to Profit aftertaxation of Rs.46.14 Lakhs in the previous year Profit after taxation has decreased by(23.45)% as compared to previous year due to increase in Finance Cost other expenses etc.

IMPACT OF THE COVID-19 ON BUSINESS OF THE COMPANY:

In the last month of FY 2019-20 COVID-19 declared by the World Health Organization aglobal pandemic developed rapidly into a global crisis forcing government to enforcelock-downs of all economic activity. The Ministry of Home affairs vide order No. 40-3/2020-DM-I(A) dated March 24 2020 announced a nation-wide lockdown as a measure tocontain the spread of COVID-19. For the Company the focus immediately shifted to ensuringthe health and well-being of all employees and on minimizing disruption to the operationsof the Company. The Company has adhered to the guidelines as specified by the Governmentof Indian and complying with all safety measures to safeguard its employees from COVID-19disease. The Company immediately adopted a ‘Work from Home' model for all its officebased employees. The operations of the Company were affected due to the lockdown announcedby the Government of India to control the spread of Corona Virus. Owing to the lockdownthe manufacturing operation and supply chain was impacted in the second half of March2020.

DIVIDEND:

With a view to conserve and save the resources for future prospect of the Company yourDirectors regret to declare dividend for the financial year 2019-20.

TRANSFER TO RESERVES:

The Company has transferred of Rs.35.32 Lakhs (Profit for the current year) in Reserveand Surplus.

CHANGE IN NATURE OF BUSINESS:

During the year your Company has not changed its business or object and continues tobe in the same line of business as per main object of the Company.

SHARE CAPITAL:

During the year under review the following changes have taken place in the authorizedand paid-up share capital of the Company:

Authorized Capital:

During the year under review the Authorised Capital of the Company was increased toRs.140000000/- divided into 14000000 Equity Shares of Rs.10/- each vide SpecialResolution passed by the Members in their Extra-ordinary General Meeting No. (EOGM NO.02/2019-20) held on December 13 2019.

Issued Subscribed & Paid-up Capital:

During the year under review Company has allotted 6552000 Bonus Equity Shares videBoard Resolution passed by the Board of Directors in their Board Meeting held on December30 2019 as a result paid up capital of the Company increases to Rs.131040000/- dividedinto 13104000 Equity Shares of Rs.10/- each.

The present paid-up capital of the Company is Rs.131040000/- divided into 13104000Equity Shares of Rs.10/- each.

The Equity Shares of the Company are listed on the BSE Limited in SME Segment. Thescrip code for Equity Share is 542285. The Company confirms that the annual listing feesto the stock exchange for the financial year 2020-21 have been paid.

BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

Constitution of Board:

As on the date of this report the Board comprises following Directors;

No. of Committee1

No. of Shares held as on March 31 2020
Name of Director Category Cum Designation at current Term & designation Total Directorship2 3 in which Director is Members in which Director is Chairman
Mr. Nitinbhai Patel Chairman cum Managing Director October 16 2018 3 - - 3571000 Equity Shares
Mr. Kushal Patel Managing Director October 16 2018 3 - - 3997048 Equity Shares
Mr. Amitkumar Patel Whole-Time Director October 16 2018 2 2 - 1424400 Equity Shares
Mr. Dhruven Patel Independent Director October 18 2018 1 - 2 -
Mr. Rakesh Patel Independent Director October 18 2018 1 2 - -
Mrs. Pinaben Patel4 Additional (Independent) Director June 30 2020 1 - - -

1 Committee includes Audit Committee and Shareholders' Grievances Committeeacross all Public Companies.

2 Excluding LLPs Section 8 Company & struck of Companies.

3 Mrs. Diptiben Patel had resigned from the post of Independent Director w.e.fFebruary 28 2020 in Axita Cotton Limited.

4 Mrs. Pinaben Patel is appointed as an additional diretor w.e.f. June 30 2020.

The composition of Board complies with the requirements of the Companies Act 2013("Act"). Further in pursuance of Regulati on 15(2) of SEBI (Listing Obligationsand Disclosure Requirements) Regulations 2015 ("Listing Regulations") theCompany is exempted from requirement of having composition of Board as per Regulation 17of Listing Regulations.

None of the Directors of Board is a member of more than ten Committees or Chairman ofmore than five committees across all the Public companies in which they are Director. Thenecessary disclosures regarding Committee positions have been made by all the Directors.

None of the Director of the Company is serving as a Whole-Time Director in any ListedCompany and is holding position of Independent Director in more than 3 Listed Company.Neither any of the Director of the Company is holding position as Director in more than 8listed entities nor any of the Director of the Company serve as Independent Director inmore than 7 listed entities.

None of the Directors of the Company is disqualified for being appointed as Director asspecified in Section 164 (2) of the Companies Act 2013.

Board Meeting:

Regular meetings of the Board are held at least once in a quarter. Additional Boardmeetings are convened as and when require to discuss and decide on various businesspolicies strategies and other businesses. The Board meetings are generally held atregistered office of the Company.

During the year under review Board of Directors of the Company met 5 times on May 152019; May 29 2019; August 28 2019; November 14 2019 December 30 2019 and February 202020. The gap between two consecutive meetings was not more than one hundred and twentydays as provided in section 173 of the Act.

The details of attendance of each Director at the Board Meeting and Annual GeneralMeeting are given below;

Name of Director Mr. Nitinbhai Patel Mr. Kushal Patel Mr. Amitkumar Patel Mr. Dhruven Patel Mrs. Diptiben Patel1 Mr. Rakesh Patel Mrs. Pinaben Patel2
Number of Board Meeting held 6 6 6 6 6 6 N.A.
Number of Board Meetings Eligible to attend 6 6 6 6 6 6 N.A.
Number of Board Meeting attended 6 6 6 6 6 6 N.A.
Presence at the previous AGM Yes Yes Yes Yes Yes Yes N.A.

1 Mrs. Diptiben Patel had resigned from the post of Independent Director w.e.fFebruary 28 2020.

2 Mrs. Pinaben Patel is appointed as an additional w.e.f. June 30 2020.

General Meetings:

During the year under review 3 Shareholder meeting held details of which are asfollows:

Sr. No. Type of Meeting Date of Meeting
EOGM-1/2019-20 Extra-Ordinary General Meeting April 12 2019
EOGM-2/2019-20 Extra-Ordinary General Meeting December 13 2019
AGM/2019-20 Annual General Meeting September 27 2019

Independent Directors:

As per Schedule IV of the Companies Act 2013 a separate meeting of IndependentDirectors without the attendance of NonIndependent Directors was held on February 20 2020to discuss the agenda items as required under the Companies Act 2013 and SEBI (ListingObligations and Disclosure Requirements) Regulations 2015. The Independent Directorsreviewed the performance of non-independent directors and the Board as whole reviewed theperformance of the Chairperson of the Company taking into account the views of executiveand non-executive directors and assessed the quality quantity and timeliness of flow ofinformation between the Company Management and the Board that is necessary for the Boardto effectively and reasonably perform their duties. The Independent Directors expressedtheir satisfaction with overall functioning and implementations of their suggestions.

The Company has received necessary declaration from each independent director underSection 149 (7) of the act that they meet the criteria of independence laid down inSection 149 (6) of the act.

Information on Directorate and Key Managerial Personnel (KMP):

In accordance with the provisions of Section 152 and other applicable provisions if anyof the Companies Act 2013 read with the Companies (Appointment and Qualification ofDirectors) Rules 2014 (including and statutory modification(s) or re-enactment(s) thereoffor the time being in force) Mr. Nitinbhai Govindbhai Patel (Chairman cum ManagingDirector) is liable to retire by rotation at the ensuing Annual General Meeting (AGM) andbeing eligible have offered himself for re-appointment.

During the year Mrs. Riya Shah had resigned from the post of Chief Financial Officerof the Company w.e.f. December 30 2019. Further during the year Mrs. DiptibenHemantkumar Patel had resigned from post of Independent Director of the Company w.e.f.February 28 2020.

Thenafter The Board of Directors of the Company at their Board Meeting held on June30 2020 based on the recommendations of the Nomination and Remuneration Committee of theBoard of Directors of the Company approved the appointment of Mrs. Pinaben BharatkumarPatel as an Additional Director in the category of Non-Executive and Independent Directorof the Company who holds office upto the date of the ensuing Annual General Meeting or thelast date on which the Annual General Meeting should have been held whichever is earlier.

Further Mr. Jayesabhai Chandubhai Thakor was appointed as Chief Financial Officer ofthe Company w.e.f. June 30 2020.

Details of Key Managerial Personnel:

Mr. Nitinbhai Govindbhai Patel Chairman cum Managing Director Mr. Kushal NitinbhaiPatel Managing Director Mr. Amitkumar Govindbhai Patel Whole Time Director Mr.Deepakkumar Kushalchandra Chaubisa Company Secretary and Compliance Officer and Mr.Jayesabhai Chandubhai Thakor Chief Financial Officer are the Key Managerial Personnel ofyour Company in accordance with the provisions of Section 2(51) and 203 of the CompaniesAct 2013 read with Companies (Appointment and Remuneration of Managerial Personnel)Rules 2014.

Performance Evaluation:

The Board of Directors has carried out an annual evaluation of its own performanceboard committees and individual directors pursuant to the provisions of the Act.

The performance of the board was evaluated by the board after seeking inputs from allthe directors on the basis of the criteria such as the board composition and structureeffectiveness of board processes information and functioning etc.

The performance of the committees was evaluated by the board after seeking inputs fromthe committee members on the basis of the criteria such as the composition of committeeseffectiveness of committee meetings etc.

The board and the nomination and remuneration committee reviewed the performance of theindividual directors on the basis of the criteria such as the contribution of theindividual director to the board and committee meetings like preparedness on the issues tobe discussed meaningful and constructive contribution and inputs in meetings etc. Inaddition the chairman was also evaluated on the key aspects of his role.

Directors' Responsibility Statement:

Pursuant to section 134(5) of the Companies Act 2013 the board of directors to thebest of their knowledge and ability confirm that:

a) In preparation of annual accounts for the year ended March 31 2020 the applicableaccounting standards have been followed and that no material departures have been madefrom the same;

b) The Directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year and ofthe profit or loss of the Company for that year;

c) The Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;

d) The Directors had prepared the annual accounts for the year ended March 31 2020 ongoing concern basis.

e) The Directors had laid down the internal financial controls to be followed by theCompany and that such Internal Financial Controls are adequate and were operatingeffectively; and

f) The Directors had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.

COMMITTEES OF BOARD:

The Board of Directors in line with the requirement of the act has formed variouscommittees details of which are given hereunder.

A. Audit Committee:-

Audit Committee meeting is generally held for the purpose of recommending the halfyearly and yearly financial result. Additional meeting is held for the purpose ofreviewing the specific item included in terms of reference of the Committee.

During the year under review the Audit Committee met 4 (Four) times during thefinancial year 2019-20 May 29 2019 August 28 2019 November 14 2019 and February 122020.

The composition of the Committee and the details of meetings attended by its membersare given below:

Name of the

Number of meetings during the financial year 2019-20

Directors Held Eligible to attend Attended
Mr. Dhruven Patel Independent Director Chairperson 4 4 4
Mrs. Diptiben Patel Independent Director Member 4 4 4
Mr. Amitkumar Patel Whole Time Director Member 4 4 4

Mrs. Diptiben Patel resigned from the post of Independent Director of the Companyw.e.f. February 28 2020 consequently the Audit Committee was reconstituted in the BoardMeeting held on June 30 2020 with the following members:

Name of the Directors Category Designation
Mr. Dhruven Patel Independent Director Chairperson
Mr. Amitkumar Patel Whole Time Director Member
Mr. Rakesh Patel Independent Director Member

Chief Financial Officer of the Company is a regular invitee at the Meeting. Furtherthe Company Secretary of the Company is acting as Secretary to the Audit Committee.

Recommendations of Audit Committee wherever/whenever given have been accepted by theBoard.

Vigil Mechanism:

The Company has established a vigil mechanism and accordingly framed a Whistle BlowerPolicy. The policy enables the employees to report to the management instances ofunethical behavior actual or suspected fraud or violation of Company's Code of Condu ct.Further the mechanism adopted by the Company encourages the Whistle Blower to reportgenuine concerns or grievances and provide for adequate safe guards against victimizationof the Whistle Blower who avails of such mechanism and also provides for

direct access to the Chairman of the Audit Committee in exceptional cases. Thefunctioning of vigil mechanism is reviewed by the Audit Committee from time to time. Noneof the Whistle blowers has been denied access to the Audit Committee of the Board. TheWhistle Blower Policy of the Company is available on the website of the Company atwww.axitacotton.com.

B. Stakeholder's Grievance & Relationship Committee:

The Board of Directors has formed Stakeholder's Grievance & Relationship Committeemainly to focus on the redressal of Shareholders' / Investors' Grievances if any likeTransfer / Transmission / Demat of Shares; Loss of Share Certificates; Non-receipt ofAnnual Report; Dividend Warrants; etc. The Stakeholders Relationship Committee shallreport to the Board on a quarterly basis regarding the status of redressal of complaintsreceived from the shareholders of the Company.

During the year under review Stakeholder's Grievance & Relationship Committee met 4(Four) time viz on May 29 2019 August 28 2019 November 14 2019 February 12 2020.The composition of the Committee and the details of meetings attended by its members aregiven below:

Name of the Directors

Number of meetings during the financial year 2019-20

Held Eligible to attend Attended
Mr. Dhruven Patel Independent Director Chairperson 4 4 4
Mr. Rakesh Patel Independent Director Member 4 4 4
Mr. Amitkumar Patel Whole Time Director Member 4 4 4

During the year the Company had not received any complaints from the Shareholders.There was no complaint pending as on March 31 2020.

C. Nomination and Remuneration Committee:

The Board of Directors has formed Nomination and Remuneration committee in line withthe provisions of Section 178 of the Companies Act 2013. Nomination and RemunerationCommittee meetings are generally held for identifying the persons who are qualified tobecome Directors and may be appointed in senior management and recommending theirappointments and removal. Further the committee shall also meet as and when the needarises for review of Managerial Remuneration.

During the year under review Nomination and Remuneration Committee met 1 (One) time vizon August 28 2019. The composition of the Committee and the details of meetings attendedby its members are given below:

Name of the Directors Category Designation

Number of meetings during the financial year 2019-20

Held Eligible to attend Attended
Mr. Dhruven Patel Independent Director Chairperson 1 1 1
Mr. Rakesh Patel Independent Director Member 1 1 1
Mrs. Diptiben Patel Independent Director Member 1 1 1

Mrs. Diptiben Patel resigned from the post of Independent Director of the Company w.e.ffrom February 28 2020 consequently the Nomination and Remuneration Committee wasreconstituted in the Board Meeting held on June 30 2020 with the following members

Name of the Directors Category Designation
Mr. Dhruven Patel Independent Director Chairperson
Mr. Rakesh Patel Independent Director Member
Mrs. Pinaben Patel Additional (Independent) Director Member

Nomination and Remuneration Policy:

Nomination and Remuneration Policy in the Company is designed to create a highperformance culture. It enables the Company to attract motivated and retained manpower incompetitive market and to harmonize the aspirations of human resources consistent withthe goals of the Company. The Company pays remuneration by way of salary benefitsperquisites and allowances to its Executive Directors and Key Managerial Personnel. Annualincrements are decided by the Nomination and Remuneration Committee within the salaryscale approved by the members and are effective from April 1 of each year.

The Nomination and Remuneration Policy as adopted by the Board of Directors is placedon the website of the Company at www.axitacotton.com and is annexed to this Report as Annexure-A.

Remuneration of Directors:

The details of remuneration paid during the financial year 2019-20 to Directors of theCompany is provided in Form MGT-9 which is the part of this report as Annexure B.

PUBLIC DEPOSIT:

The company has not accepted any deposits from the public. Hence the directives issuedby the Reserve Bank of India & the Provision of Section 73 to 76 of the Company Act2013 or any other relevant provisions of the Act and the Rules there under are notapplicable.

PARTICULARS OF LOANS GUARANTEES INVESTMENTS & SECURITY:

Details of Loans Guarantees Investments and Security covered under the provisions ofSection 186 of the Companies Act 2013 are given in the notes to the Financial Statement.

EXTRACT OF ANNUAL RETURN:

The details forming part of the extract of the Annual Return in Form MGT-9 is annexedto this Report as Annexure - B.

CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:

Particulars of contracts or arrangements with related parties referred to in Section188(1) of the Companies Act 2013 in the prescribed Form AOC-2 is annexed to this Report asAnnexure - C.

SECRETARIAL STANDARDS OF ICSI:

The Company is in compliance with the Secretarial Standard on Meetings of the Board ofDirectors (SS-1) and General Meeting (SS-2) issued by the Institute of Company Secretariesof India and approved by the Central Government.

PARTICULAR OF EMPLOYEES:

The ratio of the remuneration of each whole-time director to the median of employees'remuneration as per Section 197(12) of the Companies Act 2013 read with Rule 5(1) of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 is annexed tothis Report as Annexure - D.

The particulars of employees as required under Section 197(12) of the Act read withRule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel)Rules 2014 is provided in a separate annexure forming part of this report. Further thereport and the accounts are being sent to the Members excluding the aforesaid annexure. Interms of Section 136 of the Act the said annexure is open for inspection at theRegistered Office of the Company. Any Member interested in obtaining a copy of the samemay write to the Company Secretary.

MATERIAL CHANGES AND COMMITMENT:

There are no material changes and commitments affecting the financial position of theCompany have occurred between the end of financial year of the Company i.e. March 31 2020to the date of this Report.

SEXUAL HARASSMENT OF WOMEN AT WORKPLACE:

To foster a positive workplace environment free from harassment of any nature we haveinstitutionalized the Anti-Sexual Harassment Initiative (ASHI) framework through which weaddress complaints of sexual harassment at the all workplaces of the Company. Our policyassures discretion and guarantees non-retaliation to complainants. We follow agender-neutral approach in handling complaints of sexual harassment and we are compliantwith the law of the land where we operate.

During the year under review there were no incidences of sexual harassment reported.

ENERGY CONSERVATION TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

The information on conservation of energy technology absorption and foreign exchangeearnings and outgo stipulated under Section 134(3)(m) of the Act read with rule 8 of TheCompanies (Accounts) Rules 2014 as amended from time to time is annexed to this Report as Annexure- E.

RISK MANAGEMENT:

A well-defined risk management mechanism covering the risk mapping and trend analysisrisk exposure potential impact and risk mitigation process is in place. The objective ofthe mechanism is to minimize the impact of risks identified and taking advance actions tomitigate it. The mechanism works on the principles of probability of occurrence and impactif triggered. A detailed exercise is being carried out to identify evaluate monitor andmanage both business and non-business risks.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company has an effective internal control system which ensures that all the assetsof the Company are safeguarded and protected against any loss from unauthorized use ordisposition.

The Internal Auditors of the Company carry out review of the internal control systemsand procedures. The internal audit reports are reviewed by Audit Committee.

Your Company has also put in place adequate internal financial controls with referenceto the financial statements commensurate with the size and nature of operations of theCompany.

During the year such controls were tested and no material discrepancy or weakness inthe Company's internal controls over financial reporting was observed.

CORPORATE GOVERNANCE:

Your Company strives to incorporate the appropriate standards for corporate governance.However pursuant to Regulation 15(2) of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 the Company is not required to mandatorily comply with theprovisions of certain regulations of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 and therefore the Company has not provided a separatereport on Corporate Governance although few of the information are provided in thisreport under relevant heading.

However Company is complying with few of the exempted regulations voluntarily anddetails of same are provided in this report under the respective heading.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

In terms of Regulation 34 and Schedule V of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 a review of the performance of the Company for the yearunder review Management Discussion and Analysis Report is presented in a separate sectionforming part of this Annual Report as Annexure-G.

STATUTORY AUDITOR AND THEIR REPORT:

M/s. Mistry & Shah Chartered Accountants Ahmedabad (Firm registration number:122702W) were appointed as Statutory Auditor of your Company at the 6th (Sixth)Annual General Meeting held on September 27 2019 to hold office as such from theconclusion of the 6th (Sixth) Annual General Meeting till the conclusion of 11th(Eleventh) Annual General Meeting of the Company.

The Notes to the financial statements referred in the Auditors Report areself-explanatory and therefore do not call for any comments under Section 134 of theCompanies Act 2013.

The Report given by the Auditors on the financial statement of the Company is part ofthis Report. The Auditors' Report does not contain any qualification reservation oradverse remark. The Auditors' Report is enclosed with the financial statements in thisAnnual Report.

REPORTING OF FRAUD:

During the year under review the Auditors of the Company have not reported any fraudas specified under Section 143(12) of the Companies Act 2013.

SECRETARIAL AUDITOR AND THIEIR REPORT:

The Company has appointed Mr. Anand Lavingia Practicing Company Secretaries toconduct the secretarial audit of the Company for the financial year 2019-20 as requiredunder Section 204 of the Companies Act 2013 and Rules thereunder. The Secretarial AuditReport for the financial year 2019-20 is annexed to this report as an Annexure - F.

INSURANCE:

All assets of the Company including Building Plant & Machinery Stocks etc. wherevernecessary and to the extent required have been adequately insured.

WEBSITE:

As per Regulation 46 of SEBI (Listing Obligation and Disclosure Requirements)Regulations 2015 the Company has maintained a functional website namely"www.axitacotton.com" containing basic information about the Company. Thewebsite of the Company is containing information like Policies Shareholding PatternFinancial and information of the designated officials of the Company who are responsiblefor assisting and handling investor grievances for the benefit of all stakeholders of theCompany etc.

GENERAL DISCLOSURE:

Your Directors state that the Company has made disclosures in this report for the itemsprescribed in section 134 (3) of the Act and Rule 8 of The Companies (Accounts) Rules 2014and other applicable provisions of the act and listing regulations to the extent thetransactions took place on those items during the year. Your Directors further state thatno disclosure or reporting is required in respect of the following items as there were notransactions on these items during the year under review:

(i) Details relating to deposits covered under Chapter V of the Act;

(ii) Issue of Equity Shares with differential rights as to dividend voting orotherwise;

(iii) Issue of shares (including sweat equity shares) to employees of the Company underany scheme save and ESOS;

(iv) Annual Report and other compliances on Corporate Social Responsibility;

(v) There is no revision in the Board Report or Financial Statement;

(vi) No significant or material orders were passed by the Regulators or Courts orTribunals which impact the going concern status and Company's operations in future;

(vii) Information on subsidiary associate and joint venture companies.

ACKNOWLEDGEMENT:

Your Directors acknowledge the dedicated service of the employees of the Company duringthe year. They would also like to place on record their appreciation for the continuedco-operation and support received by the Company during the year from banker's financialinstitutions business partners and other stakeholders.

Registered office:

For and on behalf of Board of Directors

Servey No. 324 357 358

Axita Cotton Limited

Kadi Thol Road Borisana Kadi

CIN: L17200GJ2013PLC076059

Mahesana - 382715 Gujarat
Kushal Nitinbhai Patel Amitkumar Govindbhai Patel
Date: August 27 2020 Managing Director Whole-Time Director
Place: Kadi Mahesana DIN 06626639 DIN 06626585

.