Dear Shareholders

I hope you and your family are safe. I must begin my note by thanking all ourstakeholders customers business partners and investors for their continued support.

Stepping into 2020 few could have anticipated the profound challenges that the worldwould face in the months to follow with Covid-19 prompting an unprecedented healthcrisis huge economic disruptions and repeated lockdowns around the globe.

Looking back I am proud of the effectiveness with which NOCIL navigated the crisisand I would like to commend the commitment that all my colleagues have shown in supportingour associates throughout this daunting phase.

In the prevailing time our first concern was to ensure the well-being of our people.We instantly adopted a Covid-19-appropriate behaviour at the workplace and around us tocurtail the spread of the virus and accelerate in whatever little way the economicmomentum of the nation.

Driving Momentum through Resilience

The first quarter of 2020-21 was indeed challenging due to the imposition of lockdownsand subsequent curtailment of economic activities. This disrupted the supply chain andimpacted all the industries far and wide. But it was the auto industry which took themajor hit. Since we have the highest revenues coming from the supply of rubber chemicalsto the tyre industry we faced the impact of the auto industry's slowdown. Howeverdespite the adverse environment we remained resilient and kept running the wheels ofmomentum though initially at a slower pace.

With the easing of lockdowns from July 2020 there were some clear signs of revival asthe economy gradually opened up. Subsequently with a steady recovery in demand and thebacklog of the order book getting cleared manufacturing operations too started pickingup. A gradual ramp-up of production was thus witnessed. Our strategy entailed aroundhaving the expansion plans in place to meet anticipated growth in demand while continuingon the expansion journey which we started around two-three years ago. While building ourcapacities further we continued maintaining our market share and exploring additionalmarkets to amplify sales. Our comfortable liquidity position with no long-term debtsenabled us to stay afloat while keeping our costs at bay.

Besides there's an echo for a China-Plus-One strategy wherein international tyremajors are considering de-risking their value chain to reduce over dependence on a singlesource of supply. We already have some reputable international clients and with the globaltyre majors driving their attention to other countries there stands a good chance forIndia to benefit out of it. This will also bode well for players like us and enable us toexpand our geographical frontiers. Moreover the recent import restrictions on variousclasses of tyres in India is also likely to push domestic demand from Indian tyre makers.This again is anticipated to act in our favour.

Performance in 2020-21

Our revenues were impacted in Q1 of 2020-21 owing to the lockdowns. Lower revenuesresulted in lower absorption of fixed costs leading to a subdued EBITDA. Gradually witheasing restrictions our sales and EBITDA margins recovered significantly in the remainingquarters.

Subsequently with the ramping up of our production capacities we were able to caterto the growing demands and fulfil the gradual increase in orders. It is with pride that Imention we were able to achieve the highest ever quarterly revenues with substantialgrowth in Q4 of 2020-21. With our resilience and contingency plans in place we were ableto register 14% growth in volumes and 9% growth in revenue for 2020-21 compared to2019-20.

Driving Capacity Expansion

In 2017-18 we had strategically commenced a Capex plan. It was to be implemented overa three-year period with investments being undertaken in a phased manner to expand theproduction capacities of Navi Mumbai and Dahej facilities. With the immense dedication ofour in-house technological support and team we could complete the implementation 100%.The entire Capex was accrued and utilised by the end of 2020-21 completely funded usingour internal accruals. We are still maintaining a zero-debt status till date.

Driving Growth Sustainably

At NOCIL we take environment stewardship very seriously. We believe being a rubberchemical manufacturer we have a certain degree of responsibility towards the society atlarge. Our dedicated sustainable operations exemplify our stand as a conscientiouscorporation. We strive to meet our customers' requirements by providing them products thatare produced in an eco-friendly manner.

Our focus revolves around continuous improvement of our facilities and productioncapacities while making them greener and environmentally relevant to stay ahead in theindustry on sustainability counts. This is being done through continuous investments toadopt various innovative environmental technologies for long-term sustainability. We alsotake pride in being a Responsible Care-certified Company and were recently certified ISO50001 for energy conservation.

Outlook

Being one of the leading non-Chinese rubber chemical manufacturers in India we areconsidered as a preferred and dependable rubber chemical supplier by global tyre majorsbecause of our niche R&D capabilities and value for money offerings.

As a leading manufacturer in India we are also well-positioned to grow with everydomestic and international opportunities coming our way. Supporting our Government's Makein India initiative we have been the frontrunners in our industry in promoting indigenousproducts and exporting them to the world. Going ahead we will leverage our dominantposition to expand our network and reach. On a concluding