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Sanghi Industries Ltd.

BSE: 526521 Sector: Industrials
BSE 00:00 | 01 Jul 36.50 0.25






NSE 00:00 | 01 Jul 36.55






OPEN 36.30
VOLUME 40035
52-Week high 84.70
52-Week low 32.55
P/E 22.53
Mkt Cap.(Rs cr) 916
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 36.30
CLOSE 36.25
VOLUME 40035
52-Week high 84.70
52-Week low 32.55
P/E 22.53
Mkt Cap.(Rs cr) 916
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sanghi Industries Ltd. (SANGHIIND) - Director Report

Company director report


The Members of

Sanghi Industries Limited

Your Directors take pleasure in presenting the 34th Annual Report togetherwith the audited financial statements for the year ended 31st March 2021.

Financial Performance: (Rs in Crore)

Particulars 2020-2021 2019-2020
Total Income 948.17 900.01
Profit before Interest Depreciation and Taxation 249.45 205.40
Interest 73.18 77.96
Operating Profit 176.27 127.44
Depreciation 63.70 62.08
Profit Before Tax (PBT) 112.57 65.36
Deferred Tax (including Derecognition of earlier years MAT credit) 34.39 -
Profit After Tax (PAT) 78.17 65.36
Other Comprehensive Income
Items that will not be reclassified to profit or loss 0.26 (0.35)
Income tax related to items that will not be reclassified to profit or loss (0.07) -
Total Comprehensive Income 78.37 65.01


In order to conserve the resources your Directors do not recommend any dividend forthe year under review.

Dividend Distribution Policy

Securities and Exchange Board of India (‘SEBI') vide its notification dated 5thMay 2021 amended SEBI (Listing Obligations and Disclosure Requirements) Regulations2015 and notified SEBI (Listing Obligations and Disclosure Requirements) (SecondAmendment) Regulations 2021 making changes in Regulation 43A which requires the top 1000listed companies (based on the market capitalization calculated as on 31stMarch of every year) to formulate a Dividend Distribution Policy and disclose the same ontheir websites and a web-link to be provided in the Annual Reports of the Company.

The Company falls under the list of top 1000 listed companies as per the marketcapitalization as on 31st March 2021 the company has already formulated theDividend Distribution Policy which is in due compliance of the requirements of amendedRegulation 43A and it is uploaded on the Company's website at

Operations and Performance of the Company

During the year ended 31st March 2021 the total revenue was RS 948.17Crores against RS 900.01 Crores in the previous year. The Profit Before Tax for the yearhas been RS 112.57 Crores against RS 65.36 Crores in previous year. The Profit After Taxfor the year has been RS 78.17 Crores against RS 65.36 Crores in previous year. The TotalComprehensive Income for the year is RS 78.37 Crores against RS 65.01 Crores in previousyear. The results are analysed at length in Management Discussion and Analysis report.

Issue of Non-Convertible Debentures (NCDs) on Private Placement Basis and EarlyRedemption of existing NCDs

During the year under review Company has issued 3050 Listed Rated SecuredRedeemable Non-Convertible Debentures ("NCDs") of face value of J1000000/-each aggregating to J3050000000/- (Rupees Three Hundred Five Crores Only) on PrivatePlacement basis listed on ‘Wholesale Debt Market' segment of BSE Limited.

The proceeds of above NCDs have been utilized for early redemption of 2560 SecuredListed Rated Redeemable Non-Convertible Debentures of J1000000/- each aggregating toRS 2560000000 (Rupees Two Hundred Fifty Six Crores Only) which were issued in themonth of March 2018 having ISIN INE999B07028. Consequent to above as on 31.03.2021 theoutstanding Non Convertible Debentures of the Company is RS 305 Crore which were issued on23rd February 2021 having ISIN INE999B07036.

Impact of COVID-19

The World Health Organization (WHO) has declared the COVID-19 outbreak as pandemic ason 11th March 2020. The company has immediately given utmost priority to ensurethe health and wellbeing of all employees. The Company has created awareness amongst theemployees for thermal scanning sanitization hygiene wearing marks and observing socialdistancing norms and immediately started following it rigorously. In March -2020 COVID-19pandemic developed rapidly into a global crisis forcing governments to enforce lock downof all economic activity. All the operations were disrupted since last week of March 2020and the company could partially resume the manufacturing operations at plant atSanghipuram Kutch from Mid April 2020 after obtaining the necessary approval fromGovernment .

The activity remained subdued till September 2020 and thereafter company witnessed agrowth in demand and production. The company also undertook proactive measures to face thesecond wave of Covid 19 from March 2021 onwards. The company has encouraged its employeesto take vaccination as per the eligibility criteria stipulated by State Governments.

The Company has complied with all guidelines and advisories issued by Govt. of Gujaratas well as Ministry of Health Affairs Govt. of India. The Company has been taking seriesof measures in view of the COVID-19 pandemic to ensure safety and health of all ouremployees and to ensure compliance with various directives being issued byCentral/State/local authorities.

Management believes that impact is likely to be short term in nature. The managementdoes not see any medium to long term risks in the company's ability to meet the itsliabilities as and when fall due.

The first quarter of the financial year had witnessed a temporary economic slowdown onaccount of lockdown enforced to fight against COVID-19 pandemic. However the government'smega push on affordable housing and infrastructure has widened the opportunity horizon forreal estate industry. The spread of the virus and lockdown only reinforced our convictionthat for businesses to sustain through such uncertain condition a strategic clarity isprimary. We have adapted ourselves in a manner that we would resist a sharp downside inrevenues profits and margins during this downtrend but recover faster when conditionsrevive.

With the continuous support of employees and stakeholders your Company was able tostand strong in this unprecedented times. In fact company's turnover has increased inevery quarter after completion of lockdown. This has rejuvenated the faith and confidenceof management to operate more effectively.

Covid Isolation Center

Recently as to offer support for patients suffering in Second Wave of Covid-19pandemic in the month of May-2021 the Company has set up a 100 bed "Covid IsolationCentre" including 30 Oxygen Beds in Nalia Tal. Abdasa Kutch Gujarat in associationwith Shree Merchants Association Nalia to help the people suffering from Covid-19 fromneighboring areas Kutch Gujarat. Now the citizens from rural areas are able to avail ofthe quarantine facility along with immediate treatment and nutrition support in Nalia andneed not to rush to Bhuj City.

Status of Expansion

The company's expansion project at Sanghi Puram Kutch consisting of 3.3 MTPA ClinkerUnit 68 MW Thermal Power Plant and 2 MTPA cement Grinding Capacity is completed andproduction is gradually ramping up. The demand and performance outlook for cement industryis very positive and your company will be able to participate in this growing demand withadditional production from new capacity.

Change in Nature of Business

There are no material changes in the nature of business during the year under review.

Material changes and commitments affecting the financial position of the Company

There have been no material changes and commitments affecting the financial position ofthe Company which have occurred between the end of the financial year of the Company andthe date of this report.

Significant and material orders passed by the regulators or Courts Or Tribunals

During the year under review there were no significant or material order passed by anyregulatory authority court or tribunal which shall affect the going concern status of theCompany's operations in future.

Management Discussion and Analysis

A report on Management Discussion and Analysis (MDA) which is included in theCorporate Governance Report and forms part of this Report inter-alia deals adequatelywith the operations and also current and future outlook of the Company during the yearunder review.


The Company has not accepted or renewed any deposits from public falling within thepurview of Section 73 of Companies Act 2013 and the Companies (Acceptance of Deposits)Rules 2014.

Particulars of loans guarantees or investments under Section 186 of the Companies Act2013

The Company has not made any Loans or provided any guarantee or made any investmentsfalling under purview of Section 186 of the Companies Act 2013 during the financial year2020-21.

Subsidiary Company

As at 31st March 2021 the Company does not have any Subsidiary Company.

Corporate Governance Report

In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 aReport on Corporate Governance is attached as Annexure – I forming part ofthis report along with the certificate from auditors confirming the compliance.

Details of Board of Directors and Key Managerial Personnel Board of Directors

In accordance with the provisions of Section 152 of the Companies Act 2013 and theRules framed thereunder Shri Nirubha B. Gohil (holding DIN: 05149953) whole time Directorof the Company retires by rotation at the forthcoming Annual General Meeting and he beingeligible offers himself for re-appointment.

Your Directors recommend his reappointment.

During the year under review Shri Radha Krishna Pandey (DIN: 00190017) aged about 80years has resigned as an Independent Director of the Company due to personal reason witheffect from 3rd July 2020. The Board places appreciation for the servicesrendered by him during his tenure as an Independent Director of the Company.

Due to sad demise of Shri Mahendra Kumar Doogar (DIN: 00319034) he ceased to be anIndependent Director with effect from 4th May 2021. The Board conveyed deepsorrow and condolences to his family. The Board places appreciation for the servicesrendered by him during his tenure as an Independent Director of the Company.

Key Managerial Personnel

The Key Managerial Personnel (KMP) in the Company as per Section 2(51) and 203 of theCompanies Act 2013 are as follows:

1. Shri Ravi Sanghi Chairman and Managing Director

2. Smt. Bina Engineer Chief Financial Officer and Whole Time Director

3. Shri Anil Agrawal Company Secretary

There were no changes in Key Managerial Personnel during the year.

Declaration by Independent Directors

Pursuant to the provisions of Section 134 of the Companies Act 2013 with respect tothe declaration given by the Independent Directors of the Company under Section 149 (6) ofthe Companies Act 2013 the Board hereby confirms that all the Independent Directors havegiven declarations and further confirms that they meet the criteria of Independence as perthe provisions of Section 149 (6) and Regulation 16 of SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 as amended from time to time and there has beenno change in the circumstances affecting their status as an Independent Directors duringthe year under review.

Policy on Directors' appointment and remuneration

Pursuant to the requirements of Section 134 and 178 of the Companies Act 2013 thepolicy on appointment of Board Members and policy on remuneration of the Directors KMPsand Senior Management is attached as Annexure – II to this report.

Performance evaluation of the Board Committees and Independent Directors

Pursuant to the provisions of the Companies Act 2013 and Rules made thereunder readwith the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 asamended from time to time the Board has carried the evaluation of its own performanceindividual Directors its Committees including the Chairman of the Board on the basis ofattendance contribution and various criteria as recommended by the Nomination andRemuneration Committee of the Company. The evaluation of the working of the Board itscommittees experience and expertise performance of specific duties and obligations etc.were carried out. The Directors expressed their satisfaction with the evaluation processand outcome.

The performance of each of the non-independent directors (including the Chairman) wasalso evaluated by the Independent Directors at the separate meeting held of IndependentDirectors of the Company.

Directors' Responsibility Statement

To the best of knowledge and belief and according to the information and explanationsobtained and pursuant to the provisions of Section 134(5) of the Companies Act 2013 withrespect to the Directors' Responsibility Statement your Directors confirm that: a ) inthe preparation of the annual financial statement the applicable accounting standards hadbeen followed and that no material departures have been made for the same; b ) they hadselected such appropriate accounting policies and applied them consistently and madejudgments and estimates that were reasonable and prudent so as to give a true and fairview of the state of affairs of the Company at the end of the financial year on 31stMarch 2021 and of the profit of the Company for the year under review; c ) they had takenproper and sufficient care for the maintenance of adequate accounting records inaccordance with the provisions of the Companies Act 2013 for safeguarding the assets ofthe Company and for preventing and detecting fraud and other irregularities; d ) they hadprepared the accounts for the period ended 31st March 2021 on a ‘goingconcern' basis. e) they had laid down internal financial controls to be followed by theCompany and that such internal financial controls are adequate and operating effectively;and f) they had devised proper systems to ensure compliance with the provisions of allapplicable laws and that such systems were adequate and operating effectively.

Number of Board Meetings

During the year under review the Board of Directors duly met Four (4) times. Thedetails of the Board Meetings are provided in the Corporate Governance Report which isannexed to the Report. The intervening gap between the two meetings was within the limitprescribed under the Companies Act 2013 and Listing Regulations.

Disclosure on the compliance of Secretarial Standards

The Directors confirm to the best of their knowledge and belief that the Company hascomplied with provisions of all the applicable Secretarial Standards issued by theInstitute of Company Secretaries of India.

Risk Management Policy

Your company has developed and implemented a Risk Management Policy pursuant to Section134(3)(n) of the Companies Act 2013 read with Companies (Accounts) Rules 2014 whichincludes identification of elements of risk if any which in the opinion of the Boardmay threaten the existence of the Company. The risk management process is designed tosafeguard the organization from various risks through adequate and timely action. It isdesigned to anticipate evaluate and mitigate risks in order to minimize its impact on thebusiness. The risk management framework of the Company is appropriate compared to the sizeof the Company and the environment under which the Company operates. The Audit Committeeoversees the risk management system and its adequacy.

At present in the opinion of the Board there is no identification of Risk element thatmay threaten the existence of the Company.

Vigil Mechanism

In accordance with the provisions of Section 177(9) of the Companies Act 2013 and therules made thereunder read with the Regulation 22 of SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 your company has established a vigil mechanismtermed as Whistle Blower Policy for Directors and employees to report the unethicalbehavior malpractices wrongful conduct frauds violations of the Company's code ofConduct which also provides for adequate safeguards against victimization of director(s)/ employees who avail of the mechanism and also provide for direct access to the Whistleofficer / Chairman of the Audit Committee.

The Whistle Blower Policy is made available on the website of the Company policies During the year under review the Company has notreceived any complaint under vigil mechanism established.

Policy on prevention prohibition and redressal of sexual harassment at workplace

Company has framed a policy on Sexual Harassment at workplace which aims to provideprotection to women employees at workplace and prevent and redress complaints of sexualharassment and for matters connected therewith or incidental thereto with the objectiveof providing a safe working environment where employees feel secure.

The Company has not received any complaint under the Sexual Harassment of women atWorkplace during the financial year under review.


The properties and assets of the Company are adequately insured.


Statutory Auditors

Pursuant to the provisions of Section 139 of the Companies Act 2013 and the rulesframed thereunder M/ s. Chaturvedi & Shah LLP Chartered Accountants (FirmRegistration Number: 101720W/W100355) Mumbai and M/s. S. K. Mehta & Co. CharteredAccountants (Firm Registration Number: 000478N) Delhi were appointed as Joint StatutoryAuditors of the Company for the consecutive term of 5 years to hold office till theconclusion of 35th Annual General Meeting of the Company subject toratification of appointment at every Annual General Meeting at such remuneration as shallbe fixed by Shri Ravi Sanghi Chairman and Managing Director of the Company inconsultation with the Joint Statutory Auditors.

The Companies (Amendment) Act 2017 has amended the provisions of section 139 of theCompanies Act 2013 by omitting the requirement of ratification of appointment ofstatutory auditors at every Annual General Meeting. In view of the same the members ofthe Company are not being approached for ratification of appointment of StatutoryAuditors.

The Auditors' Report to the members for the year under review does not contain anyqualifications or reservations or adverse remarks.

Secretarial Auditors

M/s. Parikh Dave & Associates Practicing Company Secretaries were appointed asSecretarial Auditors of the Company for the financial year 2020-21 pursuant to theprovisions of Section 204 of the Companies Act 2013. The Secretarial Audit Reportsubmitted by them in prescribed form MR-3 is attached as Annexure – III tothis report.

Cost Auditors

Your company is maintaining the cost records as prescribed by Central Government underSection 148(1) of the Companies Act 2013.

The Company has appointed M/s. N D Birla & Co. Cost Accountants Ahmedabad ascost auditor of the Company for conducting audit of cost accounting records for the year2021-22. Necessary resolution will be placed at ensuing Annual General Meeting for gettingapproval of the members for ratification of payment of remuneration to Cost Auditors forFinancial Year 2021-22. The Audit report of the cost accounts of the Company for the yearended 31st March 2021 will be submitted to the Central Government in duecourse.

Audit Committee

The Audit Committee of the Company as on 31st March 2021 consists offollowing Directors as its members:

1. Shri Sadashiv Sawrikar - Chairman
2. Shri D K Kambale - Member
3. Shri D B N Rao - Member

Internal Financial Control and their adequacy

The Company has adopted internal control system considering the nature of its businessand the size and complexity of operations. The Board has adopted the policies andprocedures for ensuring the orderly and efficient conduct of its business includingadherence to the Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial disclosures etc. Systems and proceduresare periodically reviewed to keep pace with the growing size and complexity of yourcompany's operations.

Contracts and Arrangements with Related Parties

All related party transactions that were entered into during the financial year 2020-21were on arm's length basis. The Company has not entered into transactions with relatedparties falling under section 188 of the Companies Act 2013 hence reporting in Form AOC-2as required under provisions of Section 134 read with Section 188 of the Companies Act2013 and Rule 8 (2) of the Companies (Accounts) Rules 2014 is not applicable to theCompany.

Necessary related party disclosures are provided in Note 34 which is forming the partof the notes to financial statements.

The policy on Related Party Transactions has been uploaded on the website i.e.

Particulars of Employees

The information required under Section 197 of the Companies Act 2013 read with Rule5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014is attached as Annexure – IV to this report.

The statement containing particulars of employees as required under section 197 of theCompanies Act 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 will be provided upon request. In terms of Section 136of the Companies Act 2013 the Report and accounts are being sent to the members andothers entitled thereto excluding the information on employees particulars which isavailable for inspection by members at the Registered office of the Company duringbusiness hours on working days of the Company. If any member is interested in obtaining acopy thereof such member may write to the Company Secretary in this regard.

Corporate Social Responsibility

At Sanghi Industries Limited (SIL) the Corporate Social Responsibility (CSR) has beenan integral part of our business since inception. Right from the beginning SIL hasfocused on developing the social infrastructure in the surrounding area where mostvillages suffered from chronic ills like limited livelihood options acute scarcity ofwater poor or no healthcare facilities barren land and no set up for education.

SIL has always believed in transformation of socio-economic conditions of the region itoperates in. The company is conscious about the responsibility towards society and hasproved itself as a responsible Corporate Citizen. SIL enjoys the distinction of being oneof the first cement companies in India to be awarded SA:8000:2008 i.e. SocialAccountability Certificate for its plant for the last seven years (earlier SA:8000:2001).Social Accounting is a process of ongoing monitoring evaluation and accountability whichhelps an organization to measure its performance against social environmental andeconomic objectives and ensures that its working is in accordance with its values.

This certification is a result of the sincere and untiring efforts put in by themanagement for fulfilling its Corporate Social Responsibility in to over the last decadefor

• Creating green revolution in the desert Kutch region by cultivating land forgrowing trees fruits vegetables and flowers.

• Providing educational facilities through a CBSE affiliated School.

• Providing hospitals and first aid facilities within few hundred kilometers.

• Conducting social awareness programmes on various issues.

• Contribution in disaster relief fund.

The company has constituted the Corporate Social Responsibility Committee in compliancewith the provisions of section 135 of the Companies Act 2013 read with the Companies(Corporate Social Responsibility Policy) Rules 2014. The Corporate Social Responsibilitypolicy enumerating the CSR Activities to be undertaken by the Company in accordance withthe Schedule VII of the Companies Act 2013 approved and adopted by the Board of Directorsis also placed on the website of the Company policies Therequisite details on CSR Activities pursuant to Section 135 of the Companies Act 2013 andrules framed thereunder are annexed as Annexure – V to this report.

The details relating to the composition of committee and meetings convened of theCommittee etc. are furnished in the Corporate Governance Report which is forming the partof this report.

Business Responsibility Statement

As per Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 and any amendment thereof for the time-to-time top 1000 listedcompanies are required to submit as part of Annual Report Business ResponsibilityReport describing the initiatives taken by them from the environmental social andgovernance perspective in the format prescribed by SEBI. As the company falls under thelist of top 1000 companies as per the market capitalization as on 31st March2021 it is applicable to your company. The Business Responsibility Report of the Companyfor the year ended 31st March 2021 is annexed to this report as Annexure– VI.

Extract of the Annual Return

In terms of Section 92 (3) of the Companies Act 2013 and the Companies (Management andAdministration) Rules 2014 the Annual return of the Company in form MGT 9 is annexed tothis report as Annexure – VII and also available on the website of the Companyat

Familiarization Programme for Independent Directors

In compliance with the requirements of SEBI regulations the Company has put in place afamiliarization programme for independent directors to familiarize them with their rolerights and responsibilities as directors the working of the Company nature of industryin which company operates business model etc. The details of familiarization programmeare explained in the Corporate Governance Report. The details of the familiarizationprogramme of Independent Directors of the Company is available on the website of theCompany at the following link:


The Company's equity shares are listed with the Stock Exchanges namely National StockExchange of India Limited (NSE) and BSE Limited (BSE). The Non-Convertible Debentures(NCDs) of the Company issued on private placement basis are listed on ‘Wholesale DebtMarket' segment of BSE Limited. The Company has paid the listing fees for the year 2021-22to both the Stock Exchanges.

Environment And Pollution Control

The Company has established centralized Environmental Management Cell (EMC) forenvironment management and vigorously pursued its goal of sustainable development throughexacting standard in environmental conservation emission control promotion ofalternative fuel & raw materials and waste management. The company has certified withISO:14001 standard since 2004.

The company has installed state of the art air pollution control systems like ESP Baghouse with membrane technology Fugitive emission control systems like Dust extraction& dust suppression system in all required locations. The company has also exploredpossibility to upgrade existing pollution control equipment's on the ground of presenttechnology advancement and implement accordingly. The company has concreting of internalroads truck parking area and plant floors and carried out massive plantation in theentire complex. The company has provided Clinker storage and state of the art loadingsystem. The mining activities are being carried out by eco-friendly surface miner. Thecompany is committed for emissions abatement CO2 and implemented series ofproject for the same.

The company has implemented series of measures for environment and pollution control.Some of the measures implemented during the year are:

• Enhancement in alternative fuel & raw material in manufacturing process

• Up-gradation of air pollution control systems like bag house and ESPs

• Real time monitoring of emission data through online continuous emissionmonitoring system

• Maintain 100% recycling of KPD in the process

• Enhancement of composite cement mix to enhance ash and slag utilization

• Regular carbon footprint analysis for greenhouse gas emission reduction

• Massive plantation in the entire complex

• Water audit has been carried out for optimization of water consumption in allthe units

Conservation of Energy Technology Absorption

(a) Conservation of energy
(i) the steps taken or impact on conservation of energy; • Installation of turbo blowers for SLC firing
• Process optimization in Clinker and Cement plant
• Optimization of compressors by arresting air leakages
• Optimization of fuel fineness excess air & false air ingress and flow in Clinker plant
• Installation of LED lights in place of conventional lights
• Replacement of scatter ring in the raw mill to increase the mill output
• Utilization of liquid and solid alternative fuel in the Klin
• Reduction in electrical energy consumption in grinding process
(ii) the steps taken by the company for utilizing alternate sources of energy; • Provided advance feeding system for liquid & solid alternative fuel & raw material (AFR) system
• Obtained regular permission for co processing of different types of hazardous & non-hazardous waste in twenty categories under Hazardous & Other Waste (Management & Trans-boundary Movement) Rules.
• Achieved 7% Thermal Substitution Rate (TSR) during the year.
• Replacement of traditional fuel i.e. coal with liquid & solid waste material generated from the chemical industries
(iii) the capital investment on energy conservation equipments • Utilization of Industrial waste such as Pond ash Iron Sludge & Iron oxide as raw material in clinker manufacturing Rs 134 Lakhs
(b) Technology absorption
(i) the efforts made towards technology absorption; • The MIS Cell & Energy Steering Committee is working on energy accounting and conservation program by handling issues associated with it.
• The Company strives to implement latest technologies for energy efficiency alternative resources & minimize adverse impact on environment.
• The regular energy audit is carried out by the third party to identify the area for improvement.
(ii) the benefits derived like product improvement cost reduction product development or import substitution. • Participation in National / International seminar Product improvement cost reduction product development & import substitution
(iii) in case of imported technology (imported during the last three years reckoned from the beginning of the financial year:- State of the art technology
a ) the details of technology imported; NA
b ) the year of import; NA
c ) whether the technology been fully absorbed; NA
d ) if not fully absorbed areas where absorption has not taken place and the reasons thereof; NA
(c) Research and Development
(i) Specific areas in which R&D carried out by the Company • Improvement in existing production process(s)
• Energy conservation.
• Pollution Control
• Alternative Fuel and Raw Material
• Water conservation
(ii) Benefits derived as result of the above R&D • Clinker quality improvement by raw mix optimization.
• Enhancement in TSR (Thermal Substitution Rate) by utilizing of liquid & solid alternate fuel.
• Enhance fly ash addition in PPC
• Improvement in refractory lining practices by deploying two brick lining machine and achieved kiln lining work 18 mtr/day.
• Reduction in specific clay consumption.
• Improvement in clinker factor by adding high ash coal.
• Mineral Gypsum replaced by Chemical Gypsum after successful trails.
• Reduction in specific water consumption.
• Development of rain water harvesting reservoir.
(iii) Future Plan of Action • Increase addition of fly ash in PPC production
• Replacement of Pond Ash by using waste material of Iron
Industries i.e. iron sludge & iron oxide in Raw Mix
• Reduction in clinker factor in PPC by 1%
• Up-gradation of clinker feeding circuit
• Installation of blasters at gypsum hoppers
• Implementation of heating pads at HRP bag filter hoppers
• Load cell for Pozolana Slag Cement (PSC)
• Replacement of DC motor to AC motor at raw mill hopper
• Reduction in transmission line losses by replacement of old phase conductor
• Up-gradation of pre-lignite ESP
• Renovation of alkali ESP
• Efficiency improvement in WHRS by modification of Alkali bypass Boiler circuit
(iv) Expenditure on R&D During the year under review the Company has incurred Rs 123 Lakhs towards R & D Expenditure charged to revenue.

Foreign Exchange Earnings and Outgo

During the year under review Foreign Exchange earnings was RS 455.90 Lacs and outgowas RS 1955.64 lacs including RS 31.02 lacs towards Capital Expenditure.

International Accreditations

Your company is amongst the very few corporates in India and certainly one of the firstcement plants in India to receive the following 5 International accreditation.

• ISO 9001:2015 (Quality Management System Standard)

• ISO 14001:2015 (Environmental Management System Standard)

• OHSAS 18001:2007 (Occupational Health & Safety Management System Standard)

• SA 8000:2014 (Social Accountability Management System Standard)

• ISO/ IEC 17025:2005 (NABL accreditation for Chemical and Mechanical Testing)

Recognitions for Best Practices

Due to COVID-19 Pandemic Safety Week and Environment Week function of mines were notorganized during FY 2020-21.

Industrial Relations

The Company's Industrial relations with its employees continued to be cordialthroughout the year under review. Your Directors wish to place on record theirappreciation for the excellent team work with which the workers and officers of theCompany at all levels have contributed individually and collectively to the performance ofthe Company.

Appreciation / Acknowledgement

Your Directors wish to place on record their sincere appreciation for the excellentassistance and cooperation received from the Governmental authorities the consortium ofbanks and financial institutions customers vendors and investors for their continuedsupport during the year.

Your Directors regret the loss of life due to COVID-19 pandemic and are deeply gratefuland have immense respect for every person who risked their life and safety to fight thispandemic.

For and on behalf of the Board
Place : Ahmedabad Ravi Sanghi
Date : 10th June 2021 Chairman & Managing Director
(DIN: 00033594)