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Shree Rama Multi-Tech Ltd.

BSE: 532310 Sector: Industrials
NSE: SHREERAMA ISIN Code: INE879A01019
BSE 00:00 | 14 May 12.09 -0.40
(-3.20%)
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12.71

HIGH

12.71

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12.00

NSE 00:00 | 14 May 12.10 -0.45
(-3.59%)
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12.75

HIGH

12.90

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OPEN 12.71
PREVIOUS CLOSE 12.49
VOLUME 11305
52-Week high 14.00
52-Week low 3.65
P/E 5.40
Mkt Cap.(Rs cr) 77
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 12.71
CLOSE 12.49
VOLUME 11305
52-Week high 14.00
52-Week low 3.65
P/E 5.40
Mkt Cap.(Rs cr) 77
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shree Rama Multi-Tech Ltd. (SHREERAMA) - Director Report

Company director report

BOARD'S REPORT

Dear Members

Your Directors are pleased to present the 26 th Annual Report on thebusiness and operations of the Company together with Audited Financial Statements for thefinancial year ended on March 31 2020.

FINANCIAL RESULTS

The Company's financial performance for the year ended on March 31 2020 is summarizedbelow:

2019-20 2018-19
(Current Year) (Previous Year)
Revenue from Operations 13083.73 11732.12
Other Income 15.92 33.08
Total Revenue 13099.65 11765.20
Profit Before Exceptional Items Depreciation Interest and Tax 1729.35 841.55
Depreciation and amortization expense 896.08 902.59
Finance Costs 296.12 383.25
Exceptional Items 533.90 0.00
Profit/(loss) before tax (after exceptional items) 1071.05 (444.29)
Deferred Tax Provision/ (Reversal) (1034.51) (239.77)
Short / (Excess) provision of IT of earlier years 0.00 98.09
Net Profit/ (Loss) for the year 2105.96 (302.61)

OPERATIONAL REVIEW

Your Company's total revenue from operations during the year under review was Rs.13083.73 lakhs as compared to Rs. 11732.12 lakhs of previous year which shows an increaseof 11.52% over the previous year gure. The other income was Rs 15.92 lakhs during the yearunder review. The EBIDTA of the Company during the year was Rs. 1729.35 lakhs. The profitfor the Financial Year 2019-20 was Rs. 2105.56 lakhs as against the loss of Rs. 302.61lakhs for the Financial Year 2018-19.

BUSINESS PERFORMANCE

The industry has reported steady growth over past several years and shows highpotential for much expansion. The growth of the Indian packaging industry is heavily inuenced by changing demographics such as growing urbanization and the rising proportion ofmiddle class consumers. Indian packaging industry is also growing rapidly. This growth isprimarily driven by factors like growing pharmaceutical food processing manufacturingindustry FMCG healthcare sector.

Your company has improved performance during the F.Y 2019 -20 there by registering agrowth of 11.52% over the previous year. The high potential segment for your company istube laminate which grew 4% as compared to last year. Your company's major product islaminated tubes which is used for packing products in paste or gel form. The productionof laminated tubes was drastically increased as compared to previous year with tubingcapacity fully utilised throughout the year. In addition to this the overseas marketcontinue to hold substantial potential for your company. The Export sales grew from Rs2322.85 lakhs of the previous financial year 2018-19 to Rs 3176.15 lakhs in the financialyear 2019-20 i.e growth of 37% over the previous year. During the year the recerti cationaudits were carried out by external agencies and accordingly your company has been recertied for ISO-9001-2015. Your Company has closed the year at higher level in Tube sales.

The performance of the company has improved considerable with the optimum utilizationof the available resources and efficient management without incurring any additional coston the company. Your Directors expect better performance of the Company during the currentyear.

IMPACT OF GLOBAL CRISIS: COVID-19

In March 2020 the World Health Organisation (WHO) declared COVID-19 a global pandemic.Consequent to this Government of India declared nation-wide lockdown on March 24 2020which has impacted normal business operations of the Company. The Company has assessed theprobable impact of COVID-19 pandemic. It has considered internal and external informationavailable up to the date of approval of these financial results and has performed analysisbased on current estimates in assessing the recoverability of its assets including tradereceivables inventories other financial and non- financial assets for possible impact onthese financial results.

The Company has also assessed the impact of this whole situation on its capital andfinancial resources pro tability liquidity position etc. On the basis of its presentassessment and current indicators of future economic conditions the Company expects torecover the carrying amounts of these assets and does not anticipate any material impacton these financial results However the assessment of impact of COVID-19 is a continuingprocess given the uncertainties associated with its nature and duration. The Company willcontinue to monitor any material changes to future economic condition.

DIVIDEND

Your Company has earned a profit of Rs. 2105.56 lakhs for the Financial Year 2019-20.However with the objective of conserving the resources for the future growth of thecompany and to improve the financial strength and also considering the accumulated lossincurred in the earlier years Board of Directors consider it prudent not to recommend anydividend for the Financial Year 2019-20 and no amount has been transferred to the reservesfor the year under review.

SHARE CAPITAL

The Paid-up Equity Share Capital of the Company as at March 31 2020 was Rs. 3176.03lakhs. During the year under review the Company has not issued any shares withdifferential voting rights as to dividend voting or otherwise nor has granted any stockoptions or sweat equity. As on March 31 2020 none of the Directors of the Company holdany instruments convertible into Equity shares of the Company.

SUBSIDIARY COMPANIES

Shree Rama (Mauritius) Limited was incorporated as wholly owned subsidiary inMauritius. The current status of the Company is "Defunct".

DEPOSITS

The Company does not have "Deposits" as contemplated under Chapter V of theCompanies Act 2013. Further the Company has not invited or accepted any such depositsduring the year ended on March 31 2020.

CREDIT RATING

During the year F.Y 2019-20 the credit facilities of the company has been rated by theCRISIL Limited for the bank loan facilities for Rs. 80 Cr. as 1) Long-Term Rating - CRISILAA (CE) (Assigned; Placed on ‘Rating Watch with Developing Implications') and 2).Long-Term Rating- CRISIL BBB-/Stable (Assigned).

EXTRACT OF ANNUAL RETURN

The extract of Annual Return in Form MGT-9 for the year ended on March 31 2020pursuant to Section 92(3) of the Companies Act 2013 and Rule 12(1) of the Companies(Management and Administration) Rules 2014 is annexed herewith as ‘Annexure A'as a part to this Report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

In accordance with the provisions of Section 152 of the Companies Act 2013 and theCompany's Articles of Association Shri Mittal K. Patel Director (DIN: 03619139) retiresby rotation at the forthcoming Annual General Meeting and being eligible offers himselffor re-appointment. The Board recommends his re-appointment for the consideration of themembers of the Company at the ensuing Annual General Meeting.

During the year under review the first term of appointment of Smt. Vandana C. Patel(DIN: 07010646) as an Independent Director expires on September 25 2020. The Board ofDirectors has on recommendation of Nomination and Remuneration Committee and consideringher expertise knowledge in the eld of finance accounts costing and significantcontribution bringing independent judgement in the decisions of Board of Directorsre-appointed her as an Independent Director of the Company with effect from September 262020 for the second term of ve consecutive years pursuant to Section 149 152 Schedule IVand other applicable provisions of the Companies Act 2013 subject to approval ofshareholders by way of special resolution at the forthcoming General Meeting of theCompany. The Board is of the opinion that Smt. Vandana C. Patel possesses the requisitequali cation experience expertise and holds high standards of integrity.

As required under Regulation 36(3) of the Listing Regulations particulars of Directorsseeking appointment / re-appointment at the ensuing Annual General Meeting are annexed tothe notice convening Twenty-sixth Annual General Meeting.

Your Company has received declarations from all the Independent Directors confirmingthat they meet with the criteria of Independence as prescribed under sub-section (6) ofSection 149 of the Companies Act 2013 & Companies (Appointment and Qualification ofDirectors) Rules 2014 and under Regulation 25(8) of SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 and there has been no change in thecircumstances which may affect their status as an Independent Director during the year.

In terms of the recently introduced regulatory requirements name of every IndependentDirector should be added in the online database of Independent Directors by IndianInstitute of Corporate Affairs Manesar ("IICA"). Accordingly the IndependentDirectors of the Company have registered themselves with the IICA.

None of the Non-Executive Directors of the Company had pecuniary relationship ortransactions with the Company (except sitting fees for attending Board Meetings) duringthe year under review.

Pursuant to Section 203 of the Companies Act 2013 the whole-time Key ManagerialPersonnel of the Company as on March 31 2020 are as under:

1. Shri Shailesh K. Desai : Managing Director
2. Shri Hemal R. Shah : Whole-Time Director
3. Shri Krunal G. Shah : Chief Financial Of cer
4. Mr. Purvang Trivedi : Company Secretary

NUMBER OF MEETINGS OF THE BOARD

During the Financial Year ended on March 31 2020 the Board met four times thedetails of which are given in the Corporate Governance Report that forms part of thisAnnual Report. The intervening gap between any two consecutive meetings of Board was notmore than one hundred and twenty days.

COMMITTEES OF BOARD

The Company has following Committees of the Board as on March 31 2020 pursuant toapplicable provisions of the Companies Act 2013 and rules made there under as well as incompliance with SEBI (LODR) Regulations 2015:

(i) Audit Committee

(ii) Nomination and Remuneration Committee

(iii) Stakeholders Relationship Committee

The details of composition meetings and attendance of members of committees heldduring the year are given in the Corporate Governance Report that forms part of thisAnnual Report. The Committee of Directors was discontinued by the Board of Directors witheffect from November 12 2019.

BOARD EVALUATION

Pursuant to the provisions of the Companies Act 2013 and as per the corporategovernance requirements as prescribed under SEBI (LODR) Regulations 2015 the Board ofDirectors had carried out the performance evaluation of working of the Board Committees aswell as evaluation of Independent Directors including the performance of IndependentDirectors and assessment of their independence criteria and their independence from themanagement. The Board of Directors also reviewed the criteria for the purpose ofevaluation of performance of Independent Directors of the Company as well as Board ofDirectors of the Company.

The separate meeting of Independent Directors was not held in FY 2019-20 due to theoutbreak of CoVID-19 pandemic. However the Independent Directors have exchanged theirviews among themselves through telephone pursuant to MCA Circular dated 24thMarch 2020 providing for special measures in view of CoVID-19 outbreak.

The Nomination and Remuneration Committee of the Company had also carried outperformance evaluation of every Director's performance. A structured questionnaire wasprepared after taking into consideration the various aspects of evaluation. The Board ofDirectors expressed its satisfaction with the evaluation process.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(3)(c) of the Companies Act 2013 your Directors to the best oftheir knowledge and belief and according to the information and explanations obtained bythem state that:

a) in the preparation of the annual accounts for the year ended on March 31 2020 theapplicable accounting standards have been followed along with proper explanation relatingto material departures; b) the Directors had 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 for the year ended onMarch 31 2020 and of the profit of the Company for that period.

c) the Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;

d) the Directors had prepared the annual accounts on a going concern basis; and

e) the Directors had laid down internal financial controls to be followed by theCompany and that such internal financial controls are adequate and were operatingeffectively; and

f) the Directors had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.

RELATED PARTY TRANSANCTIONS

All transactions entered with related parties for the year under review were on arm'slength basis and in the ordinary course of business of the Company and there were nomaterial contracts or arrangement or transactions entered into in terms of Section 188 ofthe Companies Act 2013 and accordingly the disclosure of related party transactions asper Section 134(3)(h) of the Companies Act 2013 in Form AOC-2 is not provided. Furtherthe disclosures in compliance with Para A of Schedule V of Regulation 34(3) of SEBI (LODR)Regulations 2015 is provided in the notes to the accounts. The related party transactionsas required to be disclosed under Indian Accounting Standards (Ind-AS 24) are set out inthe notes to the financial statements.

The Audit Committee had given prior/omnibus approval for the related party transactionswhich were of repetitive nature and/or entered in the ordinary course of business and onarm's length basis and a statement giving details of all related party transactions wereplaced before the Audit Committee and the Board for review and noting on a quarterlybasis.

The policy on Related Party Transactions as approved by the Board of Directors has beenuploaded on the website of the Company viz. www.srmtl.com. None of the Directors has anypecuniary relationship or transactions vis-a-vis the Company.

PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS BY THE COMPANY

During the year 2019-20 the Company has not given any loans or provided guarantee orsecurity in connection with a loan to other body corporate or person or made investmentsas contemplated under the provisions of Section 186 of the Companies Act 2013 hence thedetails are not provided.

INTERNAL FINANCIAL CONTROL SYSTEM

The Company's internal control system is commensurate with its size scale andcomplexities of its operations. Your Company has an effective internal control andrisk-mitigation system which are constantly reviewed assessed and strengthened with new/revised standard operating procedures considering the existing system and future planningas envisaged. The internal audit is entrusted to M/s Ramesh C. Sharma & Co. CharteredAccountants and the scope of the internal audit are reviewed and revised as required toassess the risks and business processes besides benchmarking controls with best practicesin the industry.

The Audit Committee of the Board of Directors actively reviews the adequacy andeffectiveness of the internal control systems and suggests improvements to strengthen thesame. The Company has a robust Management Information System which is an integral part ofthe control mechanism.

The Audit Committee Statutory Auditors and the business heads are quarterly apprisedof the internal audit findings and the corrective actions taken. Audit plays a key role inproviding assurance to the Board of Directors. The significant audit observations andcorrective actions taken by the management are presented to the Audit Committee of theBoard. To maintain its objectivity and independence the Internal Auditor reports to theChairman of the Audit Committee.

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNINGS AND OUTGO

The statement showing particulars with respect to the conservation of energytechnology absorption and foreign exchange earnings and outgo stipulated under Section134(3)(m) of the Companies Act 2013 read with Rule 8 of the Companies (Accounts) Rules2014 is annexed herewith as "Annexure B" as a part to this Report.

PARTICULARS OF EMPLOYEES

The Company has continued to maintain harmonious and cordial relations with its ofcers supervisors and workers enabling the Company to maintain the pace of growth.Training is imparted to employees at all levels and covers both technical and behavioralaspects.

The details of Managerial Remuneration as required under Section 197(12) of theCompanies Act 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 is annexed herewith as "Annexure C" asa part to this Report. There was no employee drawing an annual salary of Rs. 102 lakhs ormore where employed for full year or monthly salary of Rs. 8.50 Lakhs or more whereemployed for part of the year and therefore no information pursuant to the provisions ofRule 5(2) & 5(3) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 is required to be given.

NOMINATION AND REMUNERATION POLICY

The Board of Directors has on recommendation of the Nomination and RemunerationCommittee framed a Nomination and Remuneration Policy pursuant to the provisions ofSection 178 of the Companies Act 2013 read with the Rules made thereunder as well as SEBI(LODR) Regulations 2015. The policy has been placed on the website of the Company viz.www.srmtl.com. The salient features of the said policy are stated in the CorporateGovernance Report that forms part of this report.

AUDITORS & AUDITORS' REPORT

Pursuant to the provisions of Section 139 of the Companies Act 2013 and the rulesframed thereunder M/s Chandulal M. Shah & Co. (FRN: 101698W) Chartered AccountantsAhmedabad were appointed as Statutory Auditors of the Company for the period of ve yearsfrom the conclusion of the Twenty-third AGM of the Company till the conclusion of theTwenty-eighth AGM. The Company has received a letter from M/s Chandulal M. Shah & Co.Chartered Accountants to the effect that their appointment is within the prescribedlimits under Section 141 of the Companies Act 2013 read with rules made thereunder andthat they are not disqualified for such appointment.

During the year under review there are no instances of frauds as reported by theauditors under Section 143(12) the Companies Act 2013 and its rules made thereunder.

The Statutory Auditors of the Company has made certain observations in the audit reportand qualified the report during the year under review. In this regard the Board clari esthe same as under:

Boards' Comments on Auditors Emphasis:

1. Regarding the non-provision of interest on borrowings in form of Loans anddebentures:

The management has already initiated settlement with the lenders of the loan anddebentures as per the Scheme of Arrangement and Compromise. The lenders specified in thescheme have given their consent for settlement as per the terms of the scheme and in theopinion of the management the amount of dues payable to lenders have been specified underthe de nition of "Settled Debt" under clause (n) of Part 1 of the schemetherefore no further liability on account of interest will arise. The Hon'ble High Courtof Gujarat has passed an order on 20th February 2020 whereby the O.J Appeal has beendismissed. The Company is under the process of ling the review petition. In case thescheme is not approved or approved with different terms the company will give necessaryaccounting effect on nal ascertainment of the same.

2. Regarding Non consolidation of accounts of Shree Rama Mauritius Limited (WOS):

In respect of the investment made in Shree Rama (Mauritius) Limited its Wholly-OwnedSubsidiary (WOS) the resident directors & key managerial personnel of the said WOShad resigned in the year 2005-06 and audited accounts for the year ended 30th September2003 and onwards could not be prepared and provided. Its present status is shown as‘defunct' under respective laws. The Company has accordingly provided for diminutionin the value of investments in the earlier years.

In view of the above it was not possible to prepare consolidated financial statementsas required by Ind AS 110 issued by ICAI and other provisions of the Companies Act 2013.

SECRETARIAL AUDIT

Pursuant to provisions of Section 204 of the Companies Act 2013 read with theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 the Boardhad appointed M/s Chirag Shah & Associates Practicing Company Secretaries toundertake the Secretarial Audit of the Company for the Financial Year 2019-20. TheSecretarial Audit Report is annexed herewith as "Annexure D" as a part tothis Report.

There are some observations made by the Secretarial Auditor in their report for whichthe Board of Directors hereby give its comments/ explanation as under:

(i) Regarding Non-consolidation of accounts of Shree Rama (Mauritius) Limited (WOS):

In respect of the investment made in Shree Rama (Mauritius) Limited its Wholly-OwnedSubsidiary (WOS) the resident directors & key managerial personnel of the said WOShad resigned in the year 2005-06 and audited accounts for the year ended 30th September2003 and onwards could not be prepared and provided. Its present status is shown as‘defunct' under respective laws. The Company has accordingly provided for diminutionin the value of investments in the earlier years.

In view of the above it was not possible to prepare consolidated financial statementsas required by Ind AS 110 issued by ICAI and other provisions of the Companies Act 2013.

(ii) Regarding pending redemption of 666666 15% Cumulative Preference Shares

The Composite Scheme of Compromise and Arrangement with its lenders and Shareholdersu/s 391 of the Companies Act 1956 led with Hon'ble High Court of Gujarat was pendingbefore division bench has been dismissed by Hon'ble High court vide its order dated 20thFebruary 2020. However the Company is under the process of ling the review petitionbefore Hon'ble High

Court of Gujarat and matter of redemption of preference shares along with dividend etc.is also covered in the scheme. The Board is of the view that the said matter will besorted out on nal outcome of the scheme.

(iii) Regarding non reversal of provision of dividend and non-transfer of the saidamount to IEPF

In the Scheme of Compromise and Arrangement the issue of waiver of unpaid dividend onpreference shares is also covered. During the year Hon'ble High court vide its orderdated 20th February 2020 has dismissed the appeal however the Company is under theprocess of ling the review petition before Hon'ble High Court of Gujarat. The Board is ofthe view that the said matter will be sorted out on nal outcome of the scheme.

M/s Chirag Shah & Associates Practicing Company Secretaries has undertaken theAnnual Secretarial Compliance Audit for the Financial Year 2019-20 pursuant to Regulation24A of SEBI (LODR) Reg. 2015.

COST AUDITOR

As per the requirements of the Section 148 of the Act read with the Companies (CostRecords and Audit) Rules 2014 as amended from time to time your Company is required tomaintain cost records and accordingly such accounts are made and records have beenmaintained relating to the product group ‘Plastics and Polymers' during the yearunder review. The Board of Directors on the recommendation of Audit Committee hasre-appointed M/s Maulin Shah & Associates Cost Accountants (Firm Registration Number101527) as Cost Auditor to audit the cost records of the Company for the Financial Year2020-21. As required under the Act a resolution seeking member's approval for theremuneration payable to the Cost Auditor forms part of the Notice convening the AnnualGeneral Meeting for their rati cation.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

During the year the Company does not fall under the criteria prescribed under Section135(1) of Companies Act 2013 read with rules made thereunder hence the Board has notconstituted Corporate Social Responsibility Committee and therefore the Company is notrequired to comply with the provisions of the Corporate Social Responsibility prescribedunder the Companies Act 2013. Accordingly the details in the Annual Report on the CSRactivities is not provided as an annexure to this Report.

MANAGEMENT DISCUSSION AND ANALYSIS

The Management Discussion and Analysis Report on operations of the Company as requiredunder Regulation 34(3) read with Para B of Schedule V of SEBI (LODR) Regulations 2015 isprovided in a separate section and forms an integral part of this Annual Report.

CORPORATE GOVERNANCE

The Report on Corporate Governance as stipulated under Regulation 34(3) read with ParaB of Schedule V of SEBI (LODR) Regulations 2015 forms an integral part of this Report.The requisite certificate from the Practicing Company Secretary of the Company confirmingcompliance with the conditions of corporate governance is attached to this report onCorporate Governance.

INSURANCE

The assets of the Company are adequately insured to take care of any unforeseencircumstances.

MATERIAL CHANGES AND COMMITMENT AFFECTING THE FINANCIAL POSITION OF THE COMPANY

There are no material changes and commitments affecting the financial position of theCompany occurred between the end of the financial year of the Company to which thefinancial statements relate and the date of the report.

RISK MANAGEMENT

The risk is the part and partial of every business and the risk management is embeddedin your Company's operating framework. Even though it is not possible to completelyeliminate various risks associated with the business of the Company the efforts are madeto minimize the impact of such risks on the operations of the Company. The Company hasestablished a well-de ned process of risk management which includes identi cationanalysis and assessment of various risks measurement of probable impact of such risksformulation of the risk mitigation strategies and implementation of the same so as tominimize the impact of such risks on the operations of the Company. The Company has put inplace various internal controls for different activities so as to minimize the impact ofvarious risks. The Company's approach to addressing the business risk is comprehensive andincludes periodic review of such risks and a framework for mitigating controls andreporting mechanism of such risks. The risk management framework is reviewed periodicallyby the Board of Directors for its effectiveness and compliances.

The discussion on risks and concerns are covered in the Management Discussion andAnalysis Report which forms part of this Report.

VIGIL MECHANISM

Your Company has framed a Vigil Mechanism to report genuine concerns or grievances ofall directors and employees. It provides for adequate safeguards against victimization ofpersons who use such mechanism. The Vigil Mechanism Policy has been hosted on the websiteof the Company i.e. www.srmtl.com.

CODE OF CONDUCT

The Board of Directors has adopted the Code of Conduct for the Directors and SeniorManagement and the same has been placed on the Company's website. All the Board membersand the senior management have af rmed compliance with the Code of conduct for the yearunder review.

COMPLIANCE WITH SECRETARIAL STANDARDS

The Institute of Company Secretaries of India a Statutory Body has issued SecretarialStandards on various aspects of corporate law and practices. The Company has complied witheach of the standards which are mandatory.

OTHER DISCLOSURES

1) No significant or material orders were passed by the Regulators or Courts orTribunals which impact the going concern status and Company's operations in future.

2) Composite Scheme of Compromise and Arrangement:

The Company had led the Scheme of Arrangement and Compromise with the FinancialInstitutions/ Banks and Shareholders and it was approved by majority of Shareholders andlenders. The said scheme was dismissed by the single bench of Hon'ble High Court ofGujarat vide its order dated July 15 2015. The Company had led an O.J appeal with thedivision bench of Hon'ble High Court of Gujarat which has been dismissed vide its orderdated February 20

2020. Further on an examination of the said order the Company has been legallyadvised that there are fair chances of the acceptance of the Company's stand and theCompany should file a review petition against the order of the division bench before theHon'ble High Court of Gujarat. Considering the present situation of the CoVID-19 pandemicand the lockdowns announced earlier the Company is under the process of filing the reviewpetition.

3) Sale of Assets:

During the year under review your Company had disposed of the whole and substantiallywhole of the undertaking in the form of assets located at Ambaliyara Plant situated atVillage Ambaliyara Dist. Mehsana Gujarat as the Ambaliyara unit was no longer viablehaving idle assets after approval of members. Further the Company had also sold theoffice premises of the Company situated at 603 "Shikhar" NavrangpuraAhmedabad to infuse the funds in the business activities for better performance of theCompany and be utilized for modernization of plant & machineries and/ or repaying theexisting loans to reduce interest cost of the Company.

4) As per the requirement under the Sexual Harassment of Women at Workplace(Prevention Prohibition & Redressal) Act 2013 Internal Complaints Committees havealso been set up to redress any complaints received related to sexual harassment of womenat the workplace. During the year under review no complaint was reported under the policyframed under this Act.

APPRECIATION

Your Directors place on record their sincere appreciation for the continuedco-operation and support extended to the Company by various Banks. Your Directors alsothank the Consumers for their patronage to the Company's products. Your Directors alsoplace on record sincere appreciation of the continued hard work put in by the employees atall levels. The Directors also thank the Company's vendors investors businessassociates Stock Exchanges Government of India State Government and various departmentsand agencies for their support and co-operation.

For Shree Rama Multi-Tech Limited

Place: Moti-Bhoyan Shailesh K. Desai Hemal R. Shah
Date: July 21 2020 Managing Director Whole-Time Director
(DIN: 01783891) (DIN: 07338419)

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