Dear Shareholders

It is my privilege to share the 15th Annual Report of your Company. I hope this letterfinds you and your family safe and in good spirits.

The FY 2019-20 has been a volatile & changing global scenario for the both theIndustry and the Company.

The onset of the COVID-19 pandemic in the final quarter of the year which ushered in anew reality for industries across the world. Last few months has been tough not only toyour company it has been a huge challenge to the whole humanity. Weathering this crisishas been a challenge and we are proud to inform you all that we have been able to rideover this crisis successfully without any major financial impact. Performance on aStandalone basis:

Our company had recorded total revenue for FY 2019 - 20 of Rs 7821.18 Mns as against Rs7815.56 Mns of last FY 2018 - 90 EBITDA for the FY 2019 - 20 recorded Rs. 1046.99 Mns asagainst Rs 1340.60 Mns for the FY 2018 -19 which de-grew by 21.91%. PAT for the FY2019 -20 recorded Rs. 440.27 Mns as against Rs 697.71 Mns which de-grew by 36.9%. EPS for the FY2019 - 20 recorded at Rs. 17.14 as against Rs. 27.25 for the previous year.

Performance on a consolidated basis:

Our company had recorded total revenue for FY 2019 - 20 of Rs 8326.73 Mns as againstRs. 8298.16 Mns of lastFY2018-19. EBITDA for the FY 2019 - 20 recorded Rs. 1068.55 Mns asagainst Rs. 1372.77 Mnsforthe FY 2018 - 19 which de-grew by 22.16%. PAT for the FY 2019 -20 recorded Rs. 469.19 Mns as against Rs. 733.71 Mns which de-grew by 36.05%. EPS for theFY 2019 - 20 recorded at Rs. 18.26 as againstRs^^^^^ for the previous year.

Forward Outlook Strategy

A robust comprehensive business continuity plan as a response to disruptions due toCovid-19 with focus on customer engagement continuous cost reduction calibratedexpansion plan business strategy realignment employee productivity and efficientutilization of IT-enabled systems^^^^^ Focus on liquidity management capital preservationand operating leverage.

• Focus on calibrated growth and operating m leverage.

• Maintain adequate capital and liquidity.

• Continued reduction in operating expenses.

• Improve margin profile by change in product mix improving productionefficiency reduction in overheads and efficient raw material consumption.

• Efficient use to technology and IT-enabled systems to increase the productivityand efficiency.

As we look ahead it is important to gauge COVID-19's unprecedented impact on the globaleconomy it i: expected that global growth will contract by over 3% in 2020 the worstcontraction since the 1930s. Foir the first time since the Great Depression both advancedand developing economies are in recessior together.

We are confident in our ability to navigate this period through strong financialdiscipline a reduction in capital expenditure and cash flow management.

The health and safety of its workforce has always been paramount importance to S.P.Apparels Limited We have been at the forefront of developing industry-specific protocolsthat can be a model-fron testing parameters to contact tracing monitoring socialdistancing norms classifying employee risk level: and providing appropriate healthcareresponses.

Within our communities we have played a key role in COVID-19 relieve We have providedsupport to nearly 2000 migrant workers and are continuing to provide support whereverpossible.

Acknowledgement

On behalf of the Board of Directors I wish to thank all the members of the seniormanagement team along with the each and every employee for their contribution to thesuccess of the organisation and helping in building a sustainable future together.

Sincerely

Mr. P. Sundararajan Chairman and Managing Director