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Chemcrux Enterprises Ltd.

BSE: 540395 Sector: Industrials
NSE: N.A. ISIN Code: INE298W01016
BSE 00:00 | 14 May 273.70 6.35
(2.38%)
OPEN

265.00

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275.70

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265.00

NSE 05:30 | 01 Jan Chemcrux Enterprises Ltd
OPEN 265.00
PREVIOUS CLOSE 267.35
VOLUME 13500
52-Week high 278.90
52-Week low 70.20
P/E 13.08
Mkt Cap.(Rs cr) 135
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 265.00
CLOSE 267.35
VOLUME 13500
52-Week high 278.90
52-Week low 70.20
P/E 13.08
Mkt Cap.(Rs cr) 135
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Chemcrux Enterprises Ltd. (CHEMCRUXENTERP) - Director Report

Company director report

Your Directors have pleasure in presenting the 24th Board Report on thebusiness and operations of the Company and the Audited Accounts for the Financial Yearended 31st March 2020.

1. FINANCIALS :

[Rupees in Lacs]

PARTICULARS 2019-20 2018-19
Revenue from Operations 5744.96 5527.31
Other Income 86.54 49.47
Total Revenue 5831.50 5576.78
Less: Expenses before Interest and Depreciation 4271.09 4185.74
Less: (a) Interest 32.17 28.04
(b) Depreciation 117.61 125.59
Profit before Tax & Extra Ordinary Items 1410.63 1237.41
Less : Prior period expenses 0.13 -
Less: Prior year's Income Tax Adjustment (7.60) 2.65
Profit Before Tax 1418.10 1234.76
Less: Tax Expenses
Current Tax 363.00 385.00
Deferred Tax (9.16) (81.79)
Profit after Tax 1064.26 931.55
Earnings per Share 21.56 18.87

2. KEY FINANCIAL RATIOS :

Sr. No. Particulars FY 19-20 FY 18-19 % Change
1 Debtors Turnover Ratio 5.68 6.42 (11.53)
2 Inventory Turnover Ratio 12.62 13.45 (6.17)
3 Interest Coverage Ratio 44.84 45.13 (0.64)
4 Current Ratio 2.75 2.22 23.87
5 Debt Equity Ratio 0.03 0.09 (66.67)
6 Operating Profit Margin (%) 26.60 24.66 7.87
7 Net Profit Margin (%) 18.53 16.85 9.97
8 Return on Networth % 38.05 39.24 (3.03)

Board noted that Company has improved key financial ratios due to better salesrealization inventory management & stock turnover. The decline in Debt Equity Ratiodemonstrates that your Company is less leveraged and operating with minimum borrowed fund.

3. DIVIDEND:

Dividend is recommended by your Board taking into consideration the factors likeoverall profitability cash flow capital requirements and other business needs of yourcompany. During the financial year Board approved Interim Dividend of Rs. 3 per equityshares (30%) on 27th February 2020 and was paid to shareholders on 13thMarch 2020 . Your Board of Directors is further pleased to recommend a final dividend ofRs. 1.00/- per equity share (10%) on 4936280 equity shares of Rs.10/- each of yourcompany. This would result in a total outflow of Rs. 4936280. According to Finance Act2020 with effect from April 1 2020 dividend declared and paid by the Company is taxablein the hands of shareholders and the Company is required to deduct tax at source (TDS)from dividend paid to the shareholders at the applicable rates.

4. OPERATIONAL HIGHLIGHTS:

Your Company's financial highlights during preceding three years period can hesummarized as follows :

Rs. In Lacs

FY 17-18 FY 18-19 FY 19-20 % increase (1 year) % increase (3 years) CAGR% (3 years )
Revenue 3175.99 5576.79 5831.50 4.57 83.61 22.45
EBDITA 502.44 1391.04 1560.41 12.18 210.57 45.90
Profit before Tax 404.33 1234.76 1418.10 14.85 250.73 51.93
Net Profit 236.32 931.55 1064.26 14.25 350.35 65.14
Networth 1442.39 2373.94 2796.98 17.82 93.91 24.70
EPS 4.79 18.87 21.56 14.26 350.10 65.11

5. SHARE CAPITAL:

At present the Company has only one class of share - Equity shares of face value ofRs. 10 each. The authorized share capital of the company is Rs. 60000000/- divided into6000000 equity shares of Rs. 10 each. The paid up share capital of the company is Rs.49362800/- divided into 4936280 equity shares of Rs. 10 each. The Company had raisedfund through Public Issue of shares in F/Y 2016-17 and the Equity shares of the Companyare now listed on SME platform of BSE Limited.

6. TRANSFER TO RESERVE:

The Company proposes to transfer Rs. 855.96690 to its General Reserve.

7. CREDIT FACILITIES:

The Company has been optimally utilizing its fund based and non fund based workingcapital requirements as tied up with Kotak Mahindra Bank Limited. The Company wascomfortable in meeting its financial requirements from Kotak Mahindra Bank Limited.Effective financial measures have been continued to reduce cost of interest and bankcharges.

8. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCTION AND PROTECTION FUND:

There was no amount outstanding to be transferred as unclaimed dividend to investoreducation and protection fund during the FY 2019-20.

9. MATERIAL EVENTS OCCURING AFTER BALANCE SHEET DATE :

No material changes and commitments affecting the financial position of the Companyhave occurred between the end of the financial year of the Company to which the financialstatement relates and the date of the Board Report other than the effects of globalpandemic on business. As you are aware due to the nation wide lockdown owing to CoVID 19global pandemic businesses have been impacted adversely during the lockdown period. YourCompany not being an exception to the distress situation caused by global pandemic isalso affected adversely to some extent. However the impact is not substantial or materialin nature.

COVID 19: A GLOBAL PANDEMIC :

The World Health Organization (WHO) on March 11 2020 declared the outbreak ofCoronavirus (COVID- 19) as a global "pandemic". The declaration from WHO came ata time when COVID-19 cases rapidly increased across the world. The spread of virus hastriggered panic across the world and financial markets. Like some of the other countriesin the World the virus' impact led the Hon'ble Prime Minister of India to announce alockdown across the country from March 25 2020 to restrict it from spreading further. Asa result the Country's economic activities came to a standstill. Likewise due to Shutdownof the factory of the Company located at Ankleshwar owing to Government / State Directivesfrom 24th March 2020 till 14th April 2020 and thereafter partialresumption of operations till May 2020 there has been corresponding impact on theoperations of the Company. Your Company had been operating at low capacity during thelockdown period hence there had been corresponding loss in production and business duringthe period. However operational activities have improved and presently the plant isoperational as usual form June 2020.

The following measures were taken by the Company to mitigate the risk of COVID-19 toits business operations:

1. The Company invoked its Risk Management Policy Framework quite early to minimize theimpact on its employees and ensured that the Company remains operational and that recoverytime objectives are met.

2. The Company proactively framed and implemented 'work from home policy' to ensurethat employees stay safe and business remains operational.

3. The Company ensured that its offices and factory premises are properly sanitized andcleaned frequently.

4. Company has put in place adequate measures and monitoring process for CoVID 19 interalia thermal screening of all employees and visitors sanitization of premises on regularbasis maintaining of social distancing at all work places enforcing wearing of masks andregular health updates of employees.

5. All the guidelines issued by the Central and State Government authorities from timeto time have been and are being strictly adhered to.

10. ORDER OF AUTHORITIES :

Other than the order of District Authorities dated 24th March 2020 forshutdown of operations of our Factory located at Ankleshwar in view of CoVID pandemic noorder of any government state local or statutory authorities were received during the FY2019-20 which could have affected the workings of the company.

11. CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNINGS AND OUTGO:

The information pertaining to conservation of energy technology absorption Foreignexchange Earnings and outgo as required under Section 134(3) of the Companies Act 2013read with Rule 8(3) of the Companies (Accounts) Rules 2014 is furnished as under:

(A) Conservation of energy:

Steps taken / impact on conservation of energy with special reference to thefollowing:

Steps taken by the company for utilizing alternate sources of energy including wastegenerated :

Your Company has been successfully certified with ISO 50001: 2018 Certification fromBSI (British Standards Institution) and ANAB (American National Standards InstitutionAccreditation Board). Your Company is now compliant with the Energy Management Systems andaims to improve energy efficiency and consumption thereby resulting in costs reduction andincrease in productivity. During the FY 2019-20 Energy consumption was 2567760 units(equivalent to 2.57mwh) and cost incurred was Rs. 17.6 million.

(B) Technology absorption:

1. Efforts in brief made towards technology absorption. Benefits derived as a resultof the above efforts e.g. product improvement cost reduction product developmentimport substitution etc.

The Company has not entered into any technology based ventures during the year underreview.

In case of imported technology (imported during the last 3 years reckoned from thebeginning of the financial year) following information may be furnished:

The Company has not imported any technology and hence not applicable.

2. Expenditure incurred on Research and Development :

The Company is coming up with a R&D facility located at GIDC Ankleshwar Gujarat.

(C) Foreign exchange earnings and Outgo:

PARTICULARS Amt (In Lacs)
Foreign Exchange earned in terms of actual inflows during the year 685.19
Foreign Exchange outgo during the year in terms of actual outflows 472.56

(D) Environment :

During the year your Company has complied with local and regulatory environment lawsand regulations. We strive actively to reduce the overall impact on the environment bytargeting annual reductions in our carbon intensity and the management of waste watervehicle emissions and energy consumption. The Board of Directors has adopted theEnvironment Policy at the meeting held on 27th February 2020 outlining ourcommitment to conduct operations in environment friendly and responsible way. The policycan be accessed at the website www.chemcrux.com

12. RISK MANAGEMENT:

The Company has framed a sound Risk Management Policy to identify and evaluate businessrisks and opportunities and the same has become integral part of Company's day to dayoperations. The key business risks identified by the Company are as follows viz. IndustryRisk Management and Operations Risk Market Risk Government Policy risk Liquidity riskand Systems risk. The Company has in place adequate mitigation plans for the aforesaidrisks. During the CoVID global pandemic Company quickly recognized and invoked its RiskManagement Policy to minimize the impact on its operations customers suppliers andemployees. Your Company encouraged work from home policy and ensured that timely salariesare given to the employees during the lockdown period. After the partial resumption ofoperations the management and employees strived well to seamlessly start the operationswith no bottlenecks in procurement of raw materials timely deliveries of finished goodsand hassle free imports and exports.

13. CORPORATE SOCIAL RESPONSIBILITY INITIATIVES:

The provisions of Section 135 of the Companies Act 2013 read with Rule 9 of theCompanies (Accounts) Rules 2013 has been applicable to the company from the financialyear 2019-20. In line with same a Corporate Social Responsibility Committee hasbeen constituted by the Board of Directors at their meeting held on August 17 2019. TheCommittee consists of directors Mr. Sanjay Marathe(Chairman) Mrs. Sidhdhi G. Shah andMr. Shailesh Patel (Independent Director). The CSR Committee has formulated andrecommended to the Board the Corporate Social Responsibility Policy which indicates theactivities to be undertaken by the Company in areas or subjects specified in schedule VIIof the Companies Act 2013. Accordingly during the FY 2019-20 as approved by the CSRCommittee the amount for CSR expenditure amounting to Rs. 1296000/- was spent in areasspecified under schedule VII of the Companies Act 2013 . Please refer Annexure IV forfurther details and click on the link www.chemcrux.com/investor-info.php under investorsinfo/Corporate Policy link to access the CSR Policy of Company.

14. PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THECOMPANIES ACT 2013:

There were no loans or guarantees given by the Company under Section 186 of theCompanies Act 2013 during the year under review. Investments in short term UTI MutualFund schemes were made during the year which was within the limits approved by Board ofDirectors and the limits prescribed under section 186 of the Companies Act 2013.

15. RELATED PARTY TRANSACTIONS:

Related party transactions that were entered during the financial year were on an arm'slength basis and were in the ordinary course of business. There were no materiallysignificant related party transactions with the Company's Promoters Directors Managementor their relatives which could have had a potential conflict with the interests of theCompany. Transactions with related parties entered by the Company in the normal course ofbusiness are periodically placed before the Board Meeting as per the omnibus approval ofAudit Committee and the particulars of contracts entered during the year as per Form AOC-2is enclosed as Annexure III.

The Board of Directors of the Company has on the recommendation of the AuditCommittee adopted a policy to regulate transactions between the Company and its relatedparties in compliance with the applicable provisions of the Companies Act 2013 the Rulesthereunder and the Listing Regulations. This policy has been uploaded on the website ofthe Company at www.chemcrux.com/investor-info.php under investors info/Corporate Policylink.

16. DIRECTORS / KEY MANAGERIAL PERSONNEL:

During the year no directors were appointed or have resigned. The Chief FinancialOfficer of the Company Mr. P.V. Tiwari resigned from his office w.e.f October 12 2019 andMr. Sushilkumar Tripathi was appointed in his place to take over the charge as the ChiefFinancial Officer of the Company w.e.f October 12 2019.

In accordance with the provisions of the Companies Act 2013 and in terms of theMemorandum and Articles of Association of the Company Mr. Girishkumar Shah Whole TimeDirector shall retire by rotation in the ensuing Annual General Meeting and being eligiblefor re-appointment has offered his candidature for directorship. None of the non-executivedirectors has had any pecuniary relationship or transactions with the company other thanthe receipt of sitting fee for the meetings of the Board and Committees thereof attendedby them.

• BOARD EVALUATION:

Pursuant to the provisions of the Companies Act 2013 and Regulation 17(10) of SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 the Board has carriedan annual performance evaluation of its own performance and the directors individually.

• REMUNERATION POLICY:

The Board has on the recommendation of the Nomination & Remuneration Committeeformulated criteria for determining qualifications positive attributes and independenceof a Director and also a policy for remuneration of directors key managerial personneland senior management. The policy is available at the website of company atwww.chemcrux.com/investor-info.php.

• MEETINGS:

During the year six Board Meetings and five Audit Committee Meetings were convened andheld. The intervening gap between the Meetings was within the period prescribedunder the Companies Act 2013.

• DECLARATION OF INDEPENDENT DIRECTORS:

The Independent Directors have submitted their disclosures to the Board that theyfulfill all the requirements as stipulated in Section 149(6) of the Companies Act 2013 soas to qualify themselves to be appointed as Independent Directors under the provisions ofthe Companies Act 2013 and the relevant rules.

17. AUDIT COMMITTEE AND VIGIL MECHANISM:

The Audit Committee comprises of Mr. Shailesh Patel- Independent Director Mr.Bhanubhai Patel- Independent Director and Mrs. Neela Marathe - Non Executive Director.During the year five Audit Committee Meetings were held. In pursuance of the provisions ofsection 177(9) & (10) of the Companies Act 2013 a Vigil Mechanism for directors andemployees to report genuine concerns has been established. The Vigil Mechanism Policy hasbeen uploaded on the website of the Company at http://www.chemcrux.com/investor-info.php.

18. DIRECTORS RESPONSIBILITY STATEMENT:

In accordance with the provisions of Section 134(5) of the Companies Act 2013 theBoard hereby submits its responsibility statement:—

(a) in the preparation of the annual accounts the applicable accounting standards havebeen followed along with proper explanation relating to material departures;

(b) the directors have 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 and loss of the company for that period;

(c) the directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this 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; and

(e) the directors have laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively.

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

19. ANNUAL RETURN:

Extract of Annual Return of Company pursuant to the provisions of Section 92 read withRule 12 of the Companies (Management and administration) Rules 2014 has been placed atwebsite of the Company. Weblink of the same is ashttp://www.chemcrux.com/investor-info.php

20. SUBSIDIARIES JOINT VENTURES AND ASSOCIATE COMPANIES:

The Company does not have any Subsidiary Joint venture or Associate Company.

21. DEPOSITS:

The Company has neither accepted nor renewed any deposits during the year under review.

22. AUDITORS:

• STATUTORY AUDITORS

The Company's Auditors M/s. R.J. Shah & Associates has been appointed as theStatutory Auditor of the Company at the 22nd Annual General Meeting untilconclusion of 27th Annual General Meeting of the Company for a term of fiveyears. The report of the Statutory Auditors of the Company is annexed herewith as "Annexure V"

• SECRETARIAL AUDIT:

Pursuant to the provisions of Section 204 of the Companies Act 2013 and The Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 the Company hasappointed M/S. Kashyap Shah & Co. a Practicing Company Secretaries to undertake theSecretarial Audit of the Company. The Report of the Secretarial Audit Report isannexed herewith as "Annexure II".

• INTERNAL AUDITORS:

The Company has appointed Naresh & Co. as the Internal Auditors.

23. OBSERVATION OF AUDITORS:

There are no qualifications reservations or adverse remarks made by the StatutoryAuditors Internal Auditors and Secretarial Auditors. The auditors have not reported anyfrauds under sub section 12 of section 143 other than those which are reportable to theCentral Government.

24. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has adequate system of internal control to safeguard and protect from lossunauthorized use or disposition of its assets. All the transactions are properlyauthorised recorded and reported to the Management. The Company is following all theapplicable Accounting Standards for properly maintaining the books of accounts andreporting financial statements. The internal auditor of the company checks and verifiesthe internal control and monitors them in accordance with policy adopted by the company.The Company continues to ensure proper and adequate systems and procedures commensuratewith its size and nature of its business.

25. SHARES:

a. BUY BACK OF SECURITIES: The Company has not bought back any of its securities duringthe year under review.

b. SWEAT EQUITY: The Company has not issued any Sweat Equity Shares during the yearunder review.

c. BONUS SHARES: The Company has not issued any bonus share during the year underreview.

d. EMPLOYEES STOCK OPTION PLAN:The Company has not provided any Stock Option Scheme tothe employees.

e. FRESH ISSUE OF SHARES: The Company has not issued any shares during the year underreview.

26. CORPORATE GOVERNANCE:

Provisions relating to Corporate Governance Report under Schedule V of SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 are not applicable to SMElisted Company hence the same has not been annexed to the Board's Report.

27. AWARDS AND RECOGNITIONS :

The year gone by has been a remarkable year for your company. During the start of year2019 your company was conferred with the prestigious SKOCH Order of Merit Award for beingamong top 200 MSMEs of India.

• Your Company is certified with the ISO 50001:2018 Energy Managementcertification from BSI (British Standards Institution) and ANAB (American NationalStandards Institution Accreditation Board )

• Your Company is honoured with the prestigious 4th IPF IndustrialExcellence Awards as the fastest growing SME under Fertilizers & Chemicals category.The award ceremony was hosted at NSE Mumbai on 16th January 2020.

• Your Company is ranked at 258th position in the Financial Timesranking of 500 high growth companies from the Asia Pacific (APAC) region.

• Your Company stands tall as the INDIA'S GROWTH CHAMPION an ambitious initiativethat highlighted the true accelerators of the Indian economy Your Company ranked 53rdin the list of Top 150 Companies across all sectors and industries in India conducted bythe Economic Times and Statista.

28. MANAGEMENT DISCUSSION AND ANALYSIS:

The Management Discussion and Analysis Report is appended as Annexure I to this Report.

29. PARTICULARS OF EMPLOYEES: -

Disclosure under the provisions of Section 197 of the Companies Act 2013 read withRule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014

a) The ratio of the remuneration of each director to the median remuneration of theemployees of the Company for the financial year.

Ratio of remuneration of MD and Whole Time Director - 23.72 : 1 (Rs. 8400000 :354101)

Other Directors - Not Applicable

b) The percentage increase in the remuneration of each director Chief ExecutiveOfficer Chief Financial Officer and Company Secretary if any in the financial year -During the FY 2019-20 there was 100 % increase in remuneration of WTD and MD. There was 15% increase in the remuneration of CFO & CS.

c) The percentage increase in the median remuneration of employees in the financialyear - Median Remuneration is Rs. 339123 and average increase is 15% for the F.Y.2019-20.

d) The number of permanent employees on the rolls of the Company as on 31.03.2020 - 76

e) Average percentile increase already made in the salaries of employees other than themanagerial personnel in the last financial year and its comparison with the percentileincrease in the managerial remuneration and justification thereof and point out if thereare any exceptional circumstances for increase in the managerial remuneration - Average15% increase in salaries of Employees and 100 % increase in Managerial Remuneration duringF.Y. 2019-20. The increase in remuneration of managerial person is commensurate with theefforts put in by them in leading the Company to greater heights and as per the prescribedlimits of Schedule V of the Companies Act 2013.

f) Affirmation that the remuneration is as per the remuneration policy of the company.

The Company's remuneration policy is driven by the success and performance of theindividual employees and the Company. Through the compensation package the companyendeavors to attract retain develop and motivate high performance staff. The Companyfollows a compensation mix of fixed pay benefits and performance based variable pay. TheCompany affirms that the remuneration is as per remuneration policy of the Company.

g) Details pertaining to remuneration as required under Section 197 (12) of theCompanies Act 2013 read with Rule 5 of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 with reference to remuneration of employees in excess ofthe limits prescribed - None of the employees were in receipt of remuneration above 8 lakh50 thousand per month or Rs. One crore Two lakhs per annum and above.

30. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION OFPROHIBITION AND REDRESSAL) ACT 2013:

The Company has in place a Sexual Harassment Policy in line with the requirements ofthe Sexual Harassment of Women at the Workplace (Prevention Prohibition and Redressal)Act 2013. All women employees (permanent contractual temporary trainees) are coveredunder this policy. An Internal complaint committee is formed to look after any complaintsof women employees. During the year four meetings of internal committee for preventionprohibition and redressal of sexual harassment of women at workplace were held. Nocomplaints for sexual harassment were received during the year.

31. COST AUDIT:

Pursuant to Section 148 of the Companies Act 2013 read with the Companies (CostRecords and Audit) Amendment Rules 2014 dated 31/12/2014 cost audit was not applicableto the Company for the Financial Year 2019-20. However the maintenance of costrecords as specified by the Central Government under sub-section (1) of section 148 of theCompanies Act 2013 is applicable to the Company from the FY 2019-20 and accordingly suchrecords are being maintained

32. COPORATE GOVERNANCE AND FAIR BUSINESS PRACTICES :

The extant provisions of corporate governance prescribed under SEBI Regulations is notapplicable to the Company being an SME listed Company. However as good Corporate Citizenthe Company strives to comply with the provisions of corporate governance on voluntarybasis. Company's approach to business is based upon core set of values and ethics. Themanagement of Company is dedicated to ethical fair and just business practices. In linewith this vision the Board of Directors of the Company has during the year adopted theBusiness Ethics Policy which is available at the website of company www.chemcrux.com .

33. COMPLIANCE OF APPLICABLE SECRETARIAL STANDARDS :

The Company has complied with the provisions of Secretarial Standards (I & II)issued by the Institute of Company Secretaries of India and approved by the CentralGovernment under section 118(10) of the Companies Act 2013.

34. HUMAN RESOURCES:

During the period under review the personal and industrial relations with theemployees remained cordial in all respects. The management has always carried outsystematic appraisal of performance and imparted training at periodic intervals. TheCompany recognizes talent and has judiciously followed the principle of rewardingperformance. During the year Company has adopted Human Rights Policy Statement to expressCompany's commitment to do business with ethical values and embrace practices thatsupports human rights and labour laws on a continuous basis. The policy is available onthe website of Company www.chemcrux.com . During the Lockdown period caused by the globalpandemic Company promptly responded and adopted the Work From Home Policy and ensuredtimely payment of monthly remuneration to its employees. After the initiation ofoperations proper care is taken to provide safe and healthy work environment to employeesby providing regular health checkups thermal screening and regular sanitization of workplace.

35. CAUTIONARY STATEMENT :

Statements in these reports describing company's projection statements expectationsand hopes are forward looking statements. Though these are based on reasonableassumption the actual results may differ.

36. ACKNOWLEDGEMENTS :

Your Directors place on record their sincere thanks to bankers business associatesconsultants and various Government Authorities for their continued support extended toyour Companies activities during the year under review. Your Directors also acknowledgesgratefully the shareholders for their relentless support and confidence reposed on theCompany.

For and on behalf of the Board of Directors
CHEMCRUX ENTERPRISES LIMITED
Sd/-
Place: Vadodara GIRISHKUMAR SHAH
Date: July 10 2020 CHAIRMAN

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