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Praj Industries Ltd.

BSE: 522205 Sector: Engineering
NSE: PRAJIND ISIN Code: INE074A01025
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OPEN 386.55
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VOLUME 97981
52-Week high 461.50
52-Week low 289.05
P/E 35.85
Mkt Cap.(Rs cr) 7,021
Buy Price 0.00
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Sell Price 0.00
Sell Qty 0.00
OPEN 386.55
CLOSE 386.50
VOLUME 97981
52-Week high 461.50
52-Week low 289.05
P/E 35.85
Mkt Cap.(Rs cr) 7,021
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Praj Industries Ltd. (PRAJIND) - Director Report

Company director report

To

The Members of Praj Industries Limited

Your Directors present their 36th Report together with the AuditedFinancial Statements for the year ended 31st March 2022.

Financial Results (Standalone)

During the year under review your Company has recorded total income ofRs.21157 Mn (previous year Rs. 11117 Mn) registering an increase of 90 % in totalincome. Profit after Tax increased by 131% to Rs.1644 Mn (Previous year Rs. 712 Mn.). Theperformance summary (standalone) is presented herewith:

(Rs. Mn.)

Particulars 2021-22 2020-21
Turnover 20532 10885
Other Income (including exceptational item and foreign exchange gain) 625 232
Total Income 21157 11117
Total Expenses 19018 10150
PBT 2139 967
PAT 1644 712
Other Comprehensive Income (8) 10
Total Comprehensive Income 1636 722
(+) Balance in Profit & Loss account 5045 4414
Profit Available for Appropriations Appropriations 6681 5136
- Dividend 397 -
Transfer to / (from) Special Economic zone Re-investment Reserve (61) 91
Balance in Statement of Profit & Loss 6345 5045

State of Company's Affairs

Please refer Management Discussion & Analysis annexed to thisreport dealing with the state of the Company's affairs at length. (Refer Annexure 1).

Summary of Consolidated Results

During the year the Total Income stood at Rs.23695 Mn which is 78%more than last year (Rs.13304 Mn). Profit after tax was 1502 Mn (previous year's figureRs.811 Mn) registering an increase of 86% over last year. The performance summary ispresented herewith:

(Rs. in Mn)

Particulars 2021-22 2020-21
Turnover 23333 13047
Other income (including foreign exchange gain) 362 257
Total income 23695 13304
Total expenses 21646 12173
PBT 2049 1131
PAT (after Minority Interest) 1502 811
(+) Other Comprehensive Income -22 11
Total Comprehensive Income 1480 822

Dividend

The Board of Directors at its meeting held on 25th May 2022 hasrecommended a Dividend of Rs. 4.20/- per share (210%) of the Face value of Rs.2/- for thefinancial year 2021-22 (comprising of final Dividend @ 135% plus a Special dividend @ 75%on account of Amrit Mahotsav in commemoration of 75 years of independence).

The dividend is payable subject to shareholders' approval at theensuing Annual General Meeting (AGM). The final dividend payout if approved by theshareholders in the ensuing AGM will be around Rs.771 Mn.

The dividend pay-out is in line with the Company's DividendDistribution Policy.

Dividend Distribution Policy

In accordance with Regulation 43A of SEBI (Listing Obligations &Disclosure Requirements) Regulations 2015 the Company has formulated a DividendDistribution Policy and the same is annexed herewith as Annexure 9. The Policy is alsohosted on the website of the Company and can be viewed at www.praj.net

Investor Education and Protection Fund (IEPF)

Pursuant to the Investor Education and Protection Fund (AccountingAudit Transfer and Refund) Rules 2016 the Company has transferred unclaimed/ unpaiddividend of Rs.1322461/- pertaining to the financial year 2013-14 to Investor Educationand Protection Fund on 16th September 2021. Further the Company has also transferredthe corresponding 16147 shares pertaining to the financial year 2013-14 to IEPF on 14thOctober 2021.

Details of Nodal Officer

Mr. Dattatraya Nimbolkar Chief Internal Auditor and Company Secretaryhas been appointed as Nodal Officer of the Company. Details in this regard are availableon the website of the Company at www.praj.net

Reserves

The Company is not proposing any transfer to the General Reserve forthe financial year 2021-22.

Credit Rating

a) CRISIL has re-affirmed "A1+" rating to the Company'sshort-term banking facilities which signify that the degree of safety regarding timelypayment of instruments is very strong.

b) CRISIL has also re-affirmed its rating of the Company's long-termbank facilities to "AA/stable'.

The "AA/Stable" rating signifies high safety with regard tothe timely payment of long-term financial obligations.

Subsidiaries

Praj Engineering & Infra Ltd. India Praj HiPurity Systems Ltd. India Praj Americas Inc. U.S.A. Praj Far East Co. Ltd. Thailand Praj Far EastPhilippines Ltd. Inc. The Philippines continue to be subsidiaries of your Company.

During the year Company closed Praj Industries (Africa) (Pty.) LtdSubsidiary Company on 19th January 2022.

Consolidated Financial Statements of the Company which include theresults of the said Subsidiary Companies are included in this Annual Report. Further astatement containing the particulars for each of the Company's subsidiaries is alsoenclosed (Please refer Annexure 6). Copies of Annual Accounts and related detailedinformation of all the subsidiaries can also be sought by any member of the Company or itsSubsidiaries by making a written request to the Company Secretary at the Registered Officeof the Company in this regard. The Annual Accounts of the Subsidiary Companies are alsoavailable for inspection at the Company's and/or the concerned Subsidiary's RegisteredOffice.

The Company has formulated a policy for determining 'material'subsidiaries and such policy is hosted on the Company's website i.e. www.praj.net

Further a statement containing salient features of the financialstatements of subsidiaries in the prescribed format AOC-1 is appended as Annexure 6 tothis Report. The statement also provides the details of the performance financialposition of each of the subsidiaries.

Corporate Governance

Pursuant to the provisions of Regulation 34 (2) & (3) and 53(f)read with Schedule V to SEBI (Listing Obligations & Disclosure Requirements)Regulations 2015 Management Discussion and Analysis Report (Annexure 1) Report onCorporate Governance and Compliance Certificate on Corporate Governance (Annexure 3)Business Responsibility Report (Annexure 8) Dividend Distribution Policy (Annexure 9) areannexed to this report.

Directors

Ms. Parimal Chaudhari (DIN 00724911) will retire at 36th Annual GeneralMeeting and being eligible has offered herself for reappointment as Director of theCompany.

The existing Agreement entered into with Dr Pramod Chaudhari ExecutiveChairman ends on 31st July 2022. Based on the recommendation of the Nomination andRemuneration Committee your Directors have approved the extension of the tenure of DrPramod Chaudhari for further period of twenty nine (29) months with effect from 1stAugust 2022 till 31st December 2024 subject to the approval of shareholders by way ofSpecial Resolution at the ensuing Annual General Meeting of the Company.

Item No. 5 of Notice of 36th Annual General Meeting contains necessarydetails of Special Resolution in this regard.

The existing Agreement entered into with Mr. Sachin Raole CFO andDirector-Resources ends on 31st July 2022. Based on the recommendation of the Nominationand Remuneration Committee your Directors have approved the extension of the tenure ofMr. Sachin Raole for further period of five (5) years with effect from 1st August 2022till 31st July 2027 subject to the approval of shareholders at the ensuing AnnualGeneral Meeting of the Company.

Item No. 6 of Notice of 36th Annual General Meeting contains necessarydetails of Ordinary Resolution in this regard.

Composition of Key Managerial Personnel (KMP)

The Company has the following KMPs as on 31st March 2022;

Name of the KMP Designation Date of Appointment Date of Resignation
Dr Pramod Chaudhari Executive Chairman 08.11.1985 N.A.
Mr. Shishir Joshipura Chief Executive Officer and Managing Director 02.04.2018 N.A.
Mr. Sachin Raole CFO and Director- Resources 13.07.2016 N.A.
Mr. Dattatraya Nimbolkar Chief Internal Auditor & Company Secretary 22.07.2011 N.A.

Composition of Audit Nomination & Remuneration Committee

For details kindly refer to the Corporate Governance Report annexed tothis Report (Annexure 3).

Declaration from Independent Directors

The Independent Directors have submitted their annual declaration tothe Board confirming that they fulfill all the requirements as stipulated in Section149(6) of the Companies Act 2013 read with rules framed there under.

Auditors

a) Statutory Auditors

The current tenure of P G Bhagwat LLP Chartered Accountants Pune(Firm Regn. No. 101118W/W100682) Statutory Auditors of the Company will expire on thedate of the 39th Annual General Meeting to be held in the calendar year 2025.

b) Internal Auditors

The Internal Auditors Khare Deshmukh & Co. Chartered AccountantsPune have conducted internal audits periodically during Financial Year 2021/22 andsubmitted their reports to the Audit Committee.

Their reports have been reviewed by the Statutory Auditors and theAudit Committee.

The Board has appointed Khare Deshmukh & Co. Chartered AccountantsPune as Internal Auditors of the Company for the year 2022-23.

c) Cost Auditors

Your Company has appointed Dhananjay V. Joshi & Associates CostAccountants as Cost Auditors of the Company for the financial year 2022-23 at theremuneration as set out in item No.4 of the explanatory statement which is subject to theratification of members in the ensuing Annual General Meeting.

d) Secretarial Auditors

KANJ & Co. LLP Pune were appointed to conduct the SecretarialAudit of the Company for the financial year 2021-22 as required under Section 204 of theCompanies Act 2013 read with rules framed thereunder. The Secretarial Audit Report (MR-3)for FY. 2021-22 forms part of the Annual Report as Annexure 5.

The Board has appointed KANJ & Co. LLP Pune as SecretarialAuditors of the Company for the financial year 2022-23.

Material changes and commitments if any affecting the financialposition of the Company occurred between the end of the financial year to which thesefinancial statements relate and the date of the report:

There were no material changes and commitments affecting the financialposition of the Company that occurred between the end of the financial year to which thesefinancial statements relate and the date of the report.

Statement concerning development and implementation of Risk ManagementPolicy of the Company:

In accordance with the provisions of SEBI (Listing Obligations &Disclosure Requirements) Regulations 2015 (LODR) the Board has amended the RiskManagement Policy and initiated necessary steps for framing implementing and monitoringthe risk management plan for the Company.

Based on market capitalization rank as on 31st March 2022 provisionsof Regulation 21 of SEBI (LODR) Regulations 2015 as amended from time to time areapplicable to the Company for the financial year 2022/23. As per amended Regulation 21 ofSEBI LODR Regulations it is mandatory for the Company to constitute Risk ManagementCommittee. The Company had already constituted the Risk Management Committee at its BoardMeeting held on 16th May 2019.

The main objective of the Risk Management Policy is to ensuresustainable business growth and to promote a proactive approach in identifying reportingevaluating and mitigating risks associated with the business of the Company.

The policy establishes a structured and disciplined approach to RiskManagement in order to guide decisions on risk related issues.

In today's challenging and competitive environment strategies formitigating inherent risks associated with business and for accomplishing the growth plansof the Company are imperative. The common risks inter alia are risks emanating from;Regulations Cyber Risks Competition Business Technology obsolescence InvestmentsRetention of talent Finance Politics and Fidelity etc. In today's complex businessenvironment Cyber risks have considerably increased. During the year we continued ourefforts to keep ourselves up to date with cyber security events globally to achieve highercompliance and its continued sustenance.

As a matter of Risk Management Policy these risks are assessed andsteps as appropriate are taken to mitigate the same.

The amended Risk Management Policy is hosted on the Company's websitei.e.www.praj.net

The Company has instituted adequate Internal Controls and processes tohave a cohesive view of risks optimal risk mitigation responses and efficient managementof internal control and assurance activities.

In the opinion of the Board there are no risks which may threaten theexistence of the Company.

Internal Financial Controls

The Company has in place adequate internal financial controls withreference to financial statements. During the year such controls were tested and noreportable material weaknesses in the design or operation were observed.

Remuneration Policy for Directors and KMP

The Company's remuneration policy for Directors/ KMPs is directedtowards rewarding performance based on periodical review of achievements. The remunerationpolicy is in consonance with the existing industry practice.

The said policy is available on Company's website i.e. www.praj.net andis also attached as Annexure 7 to this report.

ESOP

During the year your Company allotted 444184 shares on the exerciseof options under the Employee Stock Option Plan 2011. Consequent to the above the IssuedSubscribed and Paid-up Share Capital of your Company increased from 183228904 (number ofshares) (Value Rs. 366.458 Mn.) as on 31st March 2021 to 183673088 (number of shares)(Value Rs.367.346 Mn.) as of 31st March 2022.

Please refer Annexure 4 to this report for the particulars required tobe disclosed pursuant to Rule 12 (2) of the Companies (Share Capital and Debentures)Rules 2014 and Clause 14 of SEBI (Share Based Employee Benefits) Regulations 2014.

Board at its meeting held on 17th June 2021 has granted 140000options to eligible employees at Rs. 90/- per option under ESOP 2011 - Grant XI.

Vigil Mechanism / Whistle Blower Policy

To ensure that the activities of the Company and its employees areconducted in a fair and transparent manner by adopting the highest standards ofprofessionalism honesty integrity and ethical behaviour the Company has adopted a VigilMechanism/ Whistle Blower Policy. This policy is explained in the Corporate GovernanceReport and is also hosted on the website of Company at www.praj.net.

Details of policy developed and implemented by the Company on itsCorporate Social Responsibility initiatives Kindly refer Annexure 2 to this Report.

Particulars of loans guarantees or investments made under section 186of the Companies Act 2013

Loans Guarantees and Investments covered under Section 186 of theCompanies Act 2013 form part of the notes to the financial statements provided in thisAnnual Report. (Please refer Note No. 5 & 26 to the Standalone Financial Statements).

Contracts and arrangements with Related Parties

All contracts / arrangements / transactions entered by the Companyduring the financial year 2021/22 with related parties were in the ordinary course ofbusiness and on an arm's length basis. Such transactions form part of the notes to thefinancial statements provided in this Annual Report. (Please refer Note No. 29 to theStandalone Financial Statements).

During the year the Company had not entered into any contract /arrangement / transaction with related parties which could be considered material inaccordance with the policy of the Company on the materiality of related party transactionswhich is available on the Company's website at www.praj.net

The information in respect of Related Party transactions is givenbelow;

FORM AOC-2

(Pursuant to clause (h) of sub-section (3) of section 134 of the Actand Rule 8(2) of the Companies (Accounts) Rules 2014)

Form for disclosure of particulars of contracts/arrangements enteredinto by the Company with related parties referred to in sub-section (1) of section 188 ofthe Companies Act 2013 including certain arm's length transactions under third provisothereto

1. Details of contracts or arrangements or transactions not at arm'slength basis ;

N.A. as there were no transactions during the year which were not atarm's length.

2. Details of material contracts or arrangements or transactions atarm's length basis;

During the financial year 2021/22 all the transactions entered intowith related parties were at arm's length. Also these transactions were not material.

Performance Evaluation

Regulation 4 (2) (f) (ii) (9) of the SEBI (Listing Obligations &Disclosure Requirements) Regulations 2015 mandates that the Board shall monitor andreview the Board evaluation framework annually. Also the Companies Act 2013 states thata formal annual evaluation needs to be made by the Board of its performance and that ofits Committees and individual Directors. In addition Schedule IV to the Companies Act2013 states that the performance evaluation of Independent Directors shall be done by theentire Board of Directors excluding the Director being evaluated. The Board works withthe Nomination & Remuneration Committee to lay down the evaluation criteria for theperformance of Executive / Non-Executive / Independent Directors.

Independent Directors have three key roles -Governance Control andGuidance. Some of the performance indicators based on which the Independent Directors areevaluated include:

a) Ability to contribute to and monitor the Company's corporategovernance practices.

b) Ability to contribute by introducing international best practices toaddress top-management issues.

c) Active participation in medium to long-term strategic planning.

d) Commitment to the fulfillment of Directors' obligations andfiduciary responsibilities; which include participation in the Board and the CommitteeMeetings.

In pursuance of the above the Company has devised a policy forperformance evaluation of Independent Directors Board Committees and other individualDirectors.

The evaluation of all the Directors Committees and the Board as awhole was conducted based on the criteria and framework adopted by the Board. The Boardapproved the evaluation results as collated by the Nomination & RemunerationCommittee.

In accordance with the above the Board at its meeting held on 8thFebruary 2022 has carried out performance evaluation of all Directors.

Explanation or comments on qualifications reservations or adverseremarks or disclaimers made by the Statutory Auditors and the Secretarial Auditors intheir reports

There were no qualifications reservations or adverse remarks ordisclaimers made by the Statutory Auditors and Secretarial Auditors in their report.

Extract of Annual Return

As per the Companies (Amendment) Act 2017 effective from 28th August2020 Company is not required to disclose Extract of Annual Return (MGT-9) in theDirectors' Report. Further Company is required to place a copy of the Annual Return onits website and the web-link of the Annual Return is required to be given in theDirectors' Report. Accordingly the Annual Return (Form MGT- 7) for the financial year2021/22 is available on the website of the Company at www.praj.net.

Number of Board Meetings conducted during the year under review

The Board met five times during the financial year (four times throughvideo conferencing and once through physical mode) the details of which are given in theCorporate Governance Report that forms part of this Annual Report. The intervening gapbetween any two meetings was within the period prescribed by the Companies Act 2013 andthe SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015 as amendedfrom time to time.

Directors' Responsibility Statement

In accordance with the provisions of Section 134(5) of the CompaniesAct 2013 the Board hereby submits its responsibility Statement: -

(a) in the preparation of the annual accounts the applicableaccounting standards have been followed along with proper explanation relating to materialdepartures.

(b) the Directors have selected such accounting policies and appliedthem consistently and made judgments and estimates that are reasonable and prudent so asto give a true and fair view of the state of affairs of the Company at the end of thefinancial year and of the profit of the Company for that period:

(c) the Directors have taken proper and sufficient care for themaintenance of adequate accounting records in accordance with the provisions of this Actfor safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities.

(d) the Directors have prepared the annual accounts on a going concernbasis:

(e) the Directors have laid down internal financial controls to befollowed by the Company and that such internal financial controls are adequate and wereoperating effectively; and

(f) the Directors have devised proper systems to ensure compliance withthe provisions of all applicable laws and that such systems were adequate and operatingeffectively.

Details in respect of frauds reported by auditors under sub-section(12) of Section 143 of the Companies Act 2013 other than those which are reportable tothe Central Government.

During the year there was no such incidence of fraud reported byStatutory Auditors to the Management.

Deposits

The Company has neither accepted nor renewed any deposits during theyear under review and also did not have any outstanding deposits at the end of the year.

Remuneration ratio of the Directors / Key Managerial Personnel (KMP) /Employees

The information required pursuant to Section 197 read with Rule 5 ofThe Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 inrespect of employees of the Company and Directors is furnished hereunder:

Sr. No. Name Designation Remuneration paid during FY 2021-22 Rs. Mn. % increase/ (Decrease) in remuneration over FY 2020-21 Ratio of the remuneration of each Director to median remuneration of employees.
1 Dr Pramod Chaudhari Executive Chairman 76.857 28% *62.3
2 Mr. Shishir Joshipura CEO & MD 57.252 15% *37.1
3 Mr. Sachin Raole CFO and Director- Resources 45.419 28% *16.7
4 Mr. Dattatraya Nimbolkar Chief Internal Auditor & Company Secretary 9.290 6% *7.9
5 Mr. Berjis Desai Non- Executive Independent Director 2.500 11% 2.1
6 Ms. Parimal Chaudhari Non- Executive Director 2.000 14% 1.7
7 Mr. Sivaramakrishnan Iyer Non- Executive Independent Director 2.250 13% 1.9
8 Ms. Mrunalini Joshi Non- Executive Independent Director 0.650 8% 0.6
9 Dr Shridhar Shukla Non- Executive Independent Director 0.800 7% 0.7
10 Mr. Suhas Baxi Non- Executive Independent Director 0.800 7% 0.7

* Normalised

The median remuneration of employees of the Company during thefinancial year was Rs. 1.181 Million. In the financial year 2021/22 there was an increaseof around 10% in the median remuneration of employees.

There were 1132 permanent employees on the rolls of Company as on 31stMarch 2022.

The average percentage increase made in the salaries of employees otherthan the managerial personnel in the last financial year i.e. 2021-22 was around 11%whereas the managerial remuneration for the same financial year increased by around 23% .

The key parameters for the variable component of remuneration paid tothe Directors are considered by the Board of Directors based on the recommendations of theNomination and Remuneration Committee as per the Remuneration Policy for Directors KeyManagerial Personnel and other Employees.

It is hereby affirmed that the remuneration paid is as per theRemuneration Policy for Directors Key Managerial Personnel and other Employees.

Particulars of employees

The information required pursuant to Section 197 of the Companies Act2013 read with Rule 5 of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 duly amended in respect of employees of the Company will beprovided upon request. In terms of Section 136 of the Act the Annual Report excludingthe aforesaid information is being sent to all the members and others entitled to receiveit. Any shareholder interested in obtaining such particulars may write to the CompanySecretary.

Details of significant and material orders passed by the Regulators orCourts or Tribunals impacting the going concern status and Company's operations in future.

There were no such events that occurred during the financial year2021-22.

Prevention of Sexual Harassment Policy

The Company has in place Prevention of Sexual Harassment Policy in linewith the requirements of The Sexual Harassment of Women at the Workplace (PreventionProhibition & Redressal) Act 2013. All employees (permanent contractual temporarytrainees) are covered under this policy.

The Company has constituted Internal Complaint Committee as per theaforesaid Act.

The following is a summary of Sexual Harassment Complaints received anddisposed during Financial Year 2021/22 under the aforesaid Act:

No. of Complaints received : Nil.

No. of Complaints disposed of : Not applicable.

No. of Complaints pending : Nil

Energy Conservation Technology Absorption Adaptation Innovation:

Sustainability is the need of the hour in bio-fuels and bio-materialsproducing industry. To be able to sell these products in international markets ourcustomers need to have their operations assessed and certified by an organization such asRSB [Roundtable on Sustainable Bio-materials].

Five out of the ten principles used for such assessment fall perfectlywithin our sphere of influence. These are given below:

• Continuous effect for improvement of GHG emission savings forproduction of renewable products (Fuels chemicals etc)

• Flex plants: Use of multiple raw materials (Molasses C B-heavySyrup Corn Rice) with effective utilization of assets for the production of multipleproducts (Bioethanol Pharma grade ethanol perfumery alcohol Potable alcohol) based onmarket requirement and dynamics.

• Use of technologies that minimize overall water and energyconsumption.

• Value maximization by exploring technology for the creation ofvalue added coproducts (High Protein DDGS Human protein Bio-Bitumen)

• Compliance with all applicable safety health and environmentalregulations.

Praj Technology and Engineering Group have their focus on the designingand engineering of plants and machinery and processes that minimize the consumption ofenergy and water. Also this group has focused on the reduction of various process relatedgaseous emissions. The plants are designed to meet regulatory norms of environment healthand safety and thereby reduce customers' compliance risks.

Our Business Sustainability Systems monitor the critical normsdemonstrating that every new generation plant beats the previous benchmarks of yieldconsumption of water energy and effluents.

Infusing Sustainability principles into the design and engineering ofplants and machinery and providing sustainability solutions to the customers is of primesignificance. Number of technologies developed and commercialized successfully;

• Bio-syrup technology giving the customer increase in ethanolyield as well as flexibility to store sugar rich stream to extended number of days ofoperation.

• EcoSmart Plus: Efficient removal of impurities for production ofpharma grade ethanol.

• ZLD System: Advanced Bio-methanated Spent wash Treatment forimproving reliability and reduction in cleaning frequency of Evaporators leading toreduction in water and chemicals.

• Co-product maximization: Exploring production of human gradeprotein as valuable coproduct from grain based distillery.

• EcoCET: 24 x 7 operation of evaporation plant without use of CIPchemical.

• IPA (Isopropyl alcohol) Dehydration: Dehydration of IPA foreffective removal of moisture and used as solvent for pharmaceutical industry.

• RenGas Technology: Advanced and efficient bioprocess forproduction of bio-methane from agri-reside and other solid waste.

• enfinity Technology: Lignocellulose Ethanol technology developedin house is now under execution and optimization of steam water chemical and enzymeconsumption with improved GHG savings.

• CelluNiti Technology: Praj and Sekab E-technology AB is a uniquepartnership with proren capabilities to develop intigrate a scale-up advanced bio-fueltechnology - CelluNiti™. CelluNiti™ makes it possible to refine almost any formof bio-mass into environment friendly high quality a commercially viable chemicalproducts a raw material such as cellulosic sugars ethanol bio-gass and lignin.

• EcoCool : Optimized design of Air Colled Heat Exchange (ACHE)being offered for water stressed projects.

• Sustainable aviation fuel (SAF): For de-carbonization ofaviation industry From sugary feedstock SAF will be produced via isobutanol route.

As a part of Bio-Prism™ platform Praj Matrix is focusing onBioplastics. Bioplastics is an apt sustainable solution to replace single use plastics andreduce menace caused by plastic pollution. Praj is developing technologies for Polylacticacid (PLA) and Polyhydroxyalkanoates (PHA). Currently PLA technology is ready to be scaledup to pilot scale whereas

PHA is under development along with our partners. Matrix is alsodeveloping technologies for Bio-Bitumen and Rice protein which are the co-products ofethanol refineries. Bio-Bitumen product has been validated by our partners for roadconstruction and the technology is ready for scale up to pilot scale. Matrix's Rice BranWax having applications in cosmetics and food sectors is ready for commercialisationpost successful 1.5 Ton product delivery to potential Europeancustomer.

Praj's commitment to decarbonization & sustainable development arethe major drivers for Praj Matrix. Matrix's Mantra for technology development is'Technologies with Lowest in Carbon intencity and Cost and Best in Class' and is committedto contribute significantly to Praj's growth story in the coming years.

Key Highlights for Financial Year 2021-22:

1. During the financial year 2021-22 the Company has successfullydemonstrated Bio syrup EcoSmart plus technology for production of Pharma-grade EthanolAdvanced Bio-methanated spent wash treatment technology Eco-Cool Technology and IPAdehydration technology.

2. Praj developed Bio-Bitumen technology from the lignin generated fromthe 2G enfinity plant. This can be bolted on the 2G plant to improve overall viability of2G ethanol plants.

3. In the year gone by the company was granted 4 Indian and 8international patents bringing the total to 28 granted Indian patents and 68 grantedinternational patents and over 300 patents applications till date.

Foreign Exchange Earnings & Outgo

(Rs. Mn.)

Particulars 31/3/2022 31/3/2021
Earnings 3395 3127
Outgo 1711 954
Net Foreign Exchange Earnings 1684 2173

Your Company has retained its status as a net forex earnerconsecutively for past 24 years.

Acknowledgements

Your Directors wish to place on record their appreciation towards allassociates including Customers Collaborators Government Agencies Bankers SuppliersShareholders Auditors Employees and others who have reposed their confidence in theCompany.

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