My Dear Shareholders

It is my privilege to present the 55^th Annual Report of your company. Wehave attempted to present the company's information in an all-encompassing format for adeeper and richer understanding of our sustainable journey.

I would now briefly review performance of the Company during the year ended 31^stMarch 2021. F.Y 2020-21 (FY21) was a mixed bag for our company. FY21 begun amid the firstwave and closed in the first quartile of the second wave of the pandemic striking thecountry. Besides the severe health challenges it disrupted our economic momentum andrecovery throughout the year though at a varying extent. We are all living in veryuncertain and unprecedented times. The impact of the pandemic on our operations wassubstantial. We were all under lockdown in the first and last few months of FY21. COVIDimpact on communities around the world has been devastating. Coming to our financials thetotal gross revenue earned by the Company was Rs. 79.24 crores as against total revenue ofRs. 89.61 crores of previous year which is decrease of 12% as compared to last year.Despite COVID-19 pandemic; your Company has done well which is not reflected in figures.Profit after tax for the year was Rs. 2.96 crore compared to profit after tax of Rs. 0.51crores in financial year 2019-20. Ushering in FY21 under the shadow of a completelockdown we ensured adequate protection of all our assets - people goodwillmanufacturing facilities inventory installed equipment base cash - as our firstpriority. By mid May 2020 the lockdown restrictions started to be less stringent andgeared ourselves to cater to the increased business activities. The recovery startedthereafter with sequential increase in demand. In FY21 we worked towards restructuringseveral of the Company's operations to reduce costs streamline operations and matchcapacity with market demand. Responding effectively to the challenges of market cycles hashelped us perform steadily during periods of downturns.

We are living in time where various extraordinary changes are taking place around uswhich is altogether reshaping the way we live and the way we work. Though our inspiringLegendary Founder Shri. Dharamsey Khatau is not in amongst us the values he cherishedand which have in fact equipped our Company to withstand the test of time - IntegrityExcellence Humility Hard work and Larger purpose - continue to guide us as we endeavorstrengthening our people processes and products keeping in focus what our Company is andought to be in the years to come.

The Indian chemicals industry stood at US$ 178 billion in 2019 and is expected to reachUS$ 304 billion by 2025 registering a CAGR of 9.3%. The demand for chemicals is expectedto expand by 9% per annum by 2025. The chemical industry is expected to contribute US$ 300billion to India's GDP by 2025. Most of the products we use in our life are enabled bychemistry. As a diverse entity driven by science and technology our Company is wellpoised to face the future.

Your Company has also invested in new machineries to manufacture new products rangefrom Ambernath Units. IT system and infrastructure is being continuously monitored andenhanced with any required upgrades. Our major products have received GOTS (Global OrganicTextile Standard) certification. Company has invested on automation and attractive PackingMaterial for our products which has shown better results. There is also investment inQuality Control equipment in Laboratory and qualified staff to meet global standards.Company has invested in digitization by purchasing Laptops for the employees working fromhome and ensured that work continued despite overall tough times; Company will continueto invest in digitization and modernization. Company has successfully registered maximumof its products under Zero Discharge of Hazardous Chemicals (ZDHC) certification; and hasbeen assessed and received ISO 45001:2008 certification during the year. You would behappy to note that we have arranged free vaccination drive for our employees and labourersat all offices and plants

The Board of Directors of the Company at its meeting held on 27^th July2021 has considered and approved a Scheme of Amalgamation (the "Scheme")between the Company and Refnol Resins and Chemicals Limited ("RRCL"). Theappointed date for the scheme is 1^st April 2021 or such other date as may befixed or approved by the National Company Law Tribunal ("NCLT") as and whenapplicable.

Looking back at FY21 we saw contraction in the demand conditions in the export marketas compared to the previous year with trade and supply side reeling under impact ofCOVID-19 pandemic. Customer confidence was uncertain and this has reflected in a markedslowdown witnessed in some of the large sectors of the economy. Concerns do exist onaccount of expected third wave of COVID-19 and increasing fuel prices which may push upinflation. Trade protection policies of USA and China fluctuations in foreign exchangerates persistently tight credit conditions accentuated by the challenges in the NBFCsector rising unemployment and low rural and urban income growth were key contributors tothe dampened sentiment which can have an impact on exports and costs of imports. Shutdownof capacities in China due to environmental issues leads to increase in price of inputmaterials which impacts Company's profitability as the same are not absorbed by themarket through price increases and / or could have a negative impact on the demand in themarket. I may say that I am very happy with the performance we have been able to achievenotwithstanding difficult business and pandemic conditions.

We continuously innovated by launching new products thereby moving forward in ourjourney. At the same time we continue to uphold the highest standards of corporategovernance treating them as an ethical requisite rather than a regulatory necessity andcontinue to base all our actions on the principles of fairness trust and transparency.Looking forward the business environment will remain true to its nature - as uncertain andas unpredictable as ever. In such an environment only those organisations that put inefforts to remain relevant to the changing needs and preferences of customers -understanding the consumer requirements and adapting the business model to suitablyaddress these requirements will be able to deliver long-term growth and sustainablereturns to all the stakeholders.

I regret to inform the sudden and sad demise of Mr. Rajagopalan Sesha IndependentDirector on the Board of Indokem Limited on 27^th July 2020 due to cardiacarrest. The Company immensely benefitted by his knowledge and experience during histenure. All the directors and employees of the Company express their deep sympathy sorrowand condolences to his family.

On behalf of the Board I am very happy to announce the appointment of Mr. Rahul Singhjoined our company as the Independent Non-executive Director effective 25^thAugust 2020. Rahul Singh has over 15-year-long career as Company Secretary and ComplianceOfficer with variety of industrial businesses in India including Copper Automobile RealEstate Telecommunications Mobile Manufacturing Steel Aluminium Foil and amplifierSector. Apart from this he has diverse experience in related sectors a deepunderstanding of Corporate Laws Legal Insolvency and Bankruptcy Code 2016 SEBI FEMAand other applicable laws.

Looking ahead into the future we are confident that our expanded installed base newlyadded products new sales approach and market strategy will drive our march forward. Wetake immense pride in our people who have demonstrated extreme agility resilience andcommitment towards serving the customers amid these testing times; and also ensuringsafety and well-being of themselves and their families. On behalf of our Board I thankyou all for your continued trust and support in taking Indokem to greater heights. Pleasejoin me in acknowledging the invaluable role of all our frontline COVID warriors andpraying for a speedy return to normalcy for our 1.35+ billion fellow Indians and everyoneacross the globe!

To conclude we remain encouraged and confident of achieving our long-term objectivesof inclusive sustainable and profitable growth. As we look ahead I feel confident ofstrong growth in the medium to long term. I am confident that our disciplined strategyprudent approach focus on agile execution and our committed team will enable us toimprove performance further and create greater shareholder value.

Even in 2021 after completion of 55 years of our Company we work with the samenewness optimism and purpose. We at Indokem deeply value the involvement criticalanalysis and encouragement shown by Directors and I am privileged to have them on theBoard of our Company. I appreciate the efforts of every member of Indokem Family - we maybe growing in numbers but our Purpose is common and shared. In the travails of the pastand in the new paradigm we are envisaging for the future our constant source of strengthis the indefatigable spirit of our employees and I would like to thank them for theircommitment patience and hard work. I am grateful to our employees customers suppliersbanks and financial institutions for giving us an opportunity to serve and helping usevolve our vision and articulate growth related strategies. The Company has received and Iam sure will continue to receive active cooperation from it's shareholders. I recognisethe positive approach of the communities which surround our production sites in India. Ithank you for your faith; it brings out the best in us.