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Company Information

Home » Market » Company Information

Alkyl Amines Chemicals Ltd.

May 18
2981.60 -76.10 ( -2.49 %)
 
VOLUME : 5638
Prev. Close 3057.70
Open Price 3125.00
TODAY'S LOW / HIGH
2924.70
 
 
 
3130.00
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
2760.00
 
 
 
4740.00
May 18
3001.25 -59.45 ( -1.94 %)
 
VOLUME : 51028
Prev. Close 3060.70
Open Price 3083.80
TODAY'S LOW / HIGH
2980.45
 
 
 
3129.05
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
2760.10
 
 
 
4749.00
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Market Cap. ( ₹ ) 15328.12 Cr. P/BV 19.41 Book Value ( ₹ ) 154.61
52 Week High/Low ( ₹ ) 4749/2760 FV/ML 2/1 P/E(X) 51.90
Bookclosure 20/07/2021 TTM EPS ( ₹ ) 53.08 Div Yield (%) 0.33
DIRECTOR'S REPORT
You can view full text of the latest Director's Report for the company.
Year End :2021-03 

Your Directors take pleasure in presenting the 41st Annual Report on the business and operations of your Company together with Audited Financial Statements for the financial year ended March 31, 2021.

1. FINANCIAL RESULTS:

The financial performance of your Company is as summarized below for the year under review:

2020-21 ' In Lakhs

2019-20 ' In Lakhs

Revenue from operations

1,24,244

99,288

Other Income

695

701

Total Income

1,24,939

99,989

Profit before interest, depreciation & taxation

43,608

26,403

Interest & financial expenses

633

1,025

Depreciation

2,906

2,691

Profit before exceptional item

40,069

22,687

Exceptional Items

-

3,284

Profit before tax

40,069

25,971

Provision for tax

10,535

4,443

Net Profit after tax

29,534

21,528

Other Comprehensive Income

(238)

(130)

Total Comprehensive Income

29,296

21,398

Opening balance in retained earnings

47,700

30,728

Profit available for appropriations

76,996

52,126

Other adjustments due to IND AS

Impact of adjustment in derivatives financial instruments

59

-

Interim Dividends paid/Dividends paid

4,081

3,671

Tax on dividends

-

755

Closing balance in retained earnings

72,974

47,700

2. PERFORMANCE HIGHLIGHTS AND STATE OF COMPANY’S AFFAIRS:

During the year under review, total Income increased from ' 99,989 lakhs to '1,24,939 Lakhs, an increase of 25%. Profit before tax for the year was ' 40,069 Lakhs compared to ' 25,971 Lakhs of the previous year (an increase of 54%) and Profit after tax was '29,534 Lakhs as against ' 21,528 lakhs of the previous year (an increase of 37%). Your Directors do not propose to transfer any amount to the Reserves for the year ended March 31, 2021. Further details of operations are given in the Management Discussion and Analysis Report annexed (Annexure 1). There has been no change in the nature of business of the Company.

3. IMPACT OF THE CONTINUING COVID-19 PANDEMIC ON THE OPERATIONS AND BUSINESS:

In view of the restrictions due to second wave of COVID-19 pandemic across the country from mid-March, 2021 and subsequent lockdown in April, 2021, the offices and technical center have been kept closed from March and those employees have been working from home, wherever possible. There was no impact on the business of the Company for the year ended March 31, 2021.

The Company continues to ensure compliance with the directives issued by the Central Government, State Governments and local government from time to time. All the manufacturing facilities are working and kept sanitized so that our employees are safe and secure. All safety protocols are being adhered to very stringently.

Your Company is in a comfortable financial position to meet its commitments and will be able to meet all its debts obligations as they come up. Internal financial reporting and control is adequate and operating effectively. Although there are uncertainties due to the pandemic, the Company expects that the demand for its products from pharmaceuticals sector will continue.

4. DIVIDENDS:

For the financial year 2020-21, the Board had declared an interim dividend of ' 10/- per equity share on the face value of ' 5/-each amounting to ' 2,041 lakhs in February, 2021, subject to deduction of tax as applicable (Previous year: interim dividend of ' 10 each per equity share of ' 5/- each amounting to ' 2,040 Lakhs). The said interim dividend was paid on 1st March, 2021.

Further, the Board is pleased to recommend for your approval a final dividend of ' 6/- per equity share on the face value of '2/- each for the year ended March 31, 2021 (Previous Year: Final Dividend of '10/- per equity share of '5/- each). The total final dividend amounts to '3,062 Lakhs (Previous Year '2,040 Lakhs). You are requested to approve the same. With this the total dividend for the financial year 2020-21 would be ' 5,103 lakhs (Previous Year ' 4,040 Lakhs). The final dividend, if declared, shall be payable subject to deduction of tax at source, as applicable.

The dividend has been declared in line with the Dividend Distribution Policy which is framed in terms of the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, (SEBI (LODR) Regulations). The Dividend Distribution Policy is given in Annexure 6 to this Report and it is also available on the Company’s website.

5. SHARE CAPITAL:

During the financial year the Company’s paid up share capital increased from ' 10,19,81,960/- consisting of 2,03,96,392 equity shares of ' 5/- each to ' 10,20,63,555/- consisting of 2,04,12,711 equity shares of ' 5/- each, consequent to the allotment of 16,319 Equity Shares of '5/- each AACL Employees Stock Option Plan, 2018. In April 2021, the Company allotted 3,853 shares under ESOP 2018 Scheme making the paid up capital to ' 10,20,82,820 consisting of 2,04,16,564 Equity shares of Rs 5 each, prior to sub-division of shares.

6. SUB-DIVISION OF FACE VALUE OF EQUITY SHARES:

In order to improve the liquidity of Company’s shares in the market, the Board of Directors at their meeting held on February 2, 2021 approved, subject to approval of members, the sub-division of face value of the equity shares of the Company from the present ' 5/- each paid-up per equity share into equity shares of ' 2/- each paid-up and consequent amendment in Capital Clause in Memorandum of Association of the Company. Subsequently, the Members have approved the sub-division of face value of equity shares from the present ' 5/- each fully paid-up into '2/- each fully paid up through Postal Ballot, on March 17, 2021. The record date for the aforesaid sub-division was May 12, 2021. Accordingly, the face value of equity shares of the Company stands sub-divided from ' 5/- each fully paid up into ' 2/- each fully paid up. The shareholders were issued fresh shares of face value of ' 2/- each. The sub-division resulted in creation of 31,678 fraction shares which were consolidated into 15,839 whole shares and will be sold at the best market price and the proceeds (less expenses) will be distributed amongst concerned fraction shareholders proportionately.

The Paid up Share Capital of the Company as on the date of this Report is 5,10,41,410 Equity Shares of ' 2/- each i.e. ' 10,20,82,820/-

7. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

The Management Discussion and Analysis Report as required under Schedule V of the SEBI (LODR) Regulations, 2015 is included in this Annual Report (Annexure 1).

8. NEW PROJECTS:

During the year 2020-21, we enhanced production capacity of Methylamines at Dahej and capacities of DMAHCL powder plant and Hydrogenation plant at Kurkumbh.

A new Acetonitrile project is under execution at Dahej and we expect to start commercial production in third quarter of 2021-22. Our new Projects for financial year 2021-22 include:

1. Setting up new Amines plant with utilities at Kurkumbh.

2. Setting up of new Solar Plant of 3.0 MW in western parts of Maharashtra.

3. Some capex projects for upgrading the equipment and expansion of capacities, at all productions sites.

9. SUBSIDIARY/ASSOCIATE COMPANIES

The company does not have any subsidiary or associate or joint venture company.

10. RESPONSIBLE CARE®:

Responsible Care is a voluntary initiative of International Council of Chemical Associations, implemented in India by Indian Chemical Council to safely handle the products from inception in the research laboratory, through manufacture and distribution, to ultimate reuse, recycle and disposal, and to involve the public in the decision making processes. We have got our company recertified for Responsible Care®in September, 2020. The recertification is valid till September 2023. Several programs and studies related to safety, environment and health have been taken up and are being implemented.

Your Company continues to participate in developing Product Safety and Stewardship and Product Distribution Code as a part of initiative taken by Indian Chemical Council (ICC) along with other chemical companies. The objective was to update codes after rigorous implementation of Responsible Care program and findings of audits.

11. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

The information on conservation of energy, technology absorption and other details stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014, is annexed herewith in ‘Annexure 2”.

12. SAFETY, HEALTH AND ENVIRONMENT:A) SAFETY:

We encourage a high level of awareness of safety issues among our employees and strive for continuous improvement. Employees are trained in safe practices to be followed at the workplace. Compliance of safety training has improved over the years and there is active participation from employees. We take active part in Mutual Aid scheme in the respective industrial areas. We are one of the leading members of Local and District Crisis Group and have earned reputation amongst society around and statutory authorities for prompt support during Disaster Management events.

The company conducts scheduled mock drills for emergency scenarios with the active involvement of its staff and occasionally in the presence of external stakeholders. The gaps, if any, are immediately addressed for closure. To strengthen the Emergency Response, the company conducts truncated drills and table top exercises to assess the performance of emergency responders. Daily tool box talks and safety talks to officers and contractors are done by the company staff.

During FY 20-21, the most vulnerable area of concern was the operations of our facility during the pandemic situation. We have developed policy to mitigate the risk and we have succeded in running our facilities with minimal impact and supported our esteem customers. To minimise fire risk at all locations, we have implemented a Policy on storage of Raw Material/Finished Goods/Work in Progress/HW storage policy to minimise the fire risk across the sites. We have built additional space in existing warehouses to store materials in scientific ways. We have strengthened previously implemented Work Permit System, Management of Change and Safety Violation Policies. The company is strengthening hydrant and sprinkler network at Kurkumbh in this financial year.

All the incidents/near miss are investigated thoroughly by a selected cross functional team and correction/corrective actions are implemented across the locations. Walkthrough rounds by senior managers are conducted every month and each area of the factory is visited regularly. Observations are recorded and closed immediately. With a view to improve the safety culture measurable KPI’s, Leading Indicators and Lagging Indicators are reviewed in monthly EHS Review Meeting which is chaired by Executive Director of the company. We have encouraged employees to report one near-miss per employee per month to improve our safety performance.

B) HEALTH & HYGIENE:

Health of employees is of utmost importance to us. Periodic medical check-up of employees is done to monitor their health. Regular work area monitoring to check concentration of chemicals, noise level, and quality of ambient air is carried out based on National Ambient Air Quality Standard. We also have well equipped Occupation Health Centre with a Doctor, appropriate staff and our own ambulance vehicle at all our manufacturing sites. We have a team of employees trained as FIRST AIDERS who use their acquired skills while on duty or off duty to serve the society. Addressing Occupational Health and Safety issues to meet expectations continue to be a focal point for your company.

New employees undergo pre-employment medical check-up before appointment. Training programs are arranged on lifestyle diseases by eminent doctors. Health camps are arranged. Drivers are provided training on understanding the hazards of transported chemicals and their impacts on health. Occupational health centres have been upgraded and modern equipment are provided. This year we have taken objective to reduce Body Mass Index of the higher range (above 27) and achieved 76 % of the target. We are going to continue to reduce obesity of the employees.

Your company has also engaged a professional consulting doctor to upgrade our existing Occupational Health and Hygiene system. With his professional advice, guidance and actionable solutions we have upgraded our standard to the next level in the occupational health and safety.

All COVID-19 related precautions and safety protocols of temperature sensing, wearing of safety gears like masks, goggles, face shields, social distancing, sanitizing and washing hands are being adhered to very stringently. The offices and manufacturing facilities are regularly sanitized so that our employees are safe and secure.

C) ENVIRONMENT:

Environment protection and adherence to pollution control norms is of high concern for our company.

i) Air Emissions - We monitor regularly emissions from various sources and are very particular about compliance with statutory requirement. Projects are undertaken for reduction of emissions. During FY 20 -21, we have provided scrubbers to the process plants and boiler to reduce the emissions.

ii) Liquid Waste Treatment - We have an integrated Effluent Treatment Plant and we maintain outlet standards within the prescribed limits. We have installed online effluent real time monitoring system across the locations to track real time monitoring data. We recycle 50% of our effluent at Kurkumbh by installing Reverse Osmosis (RO)/Multi Effect Evaporator (MEE). We are in process of installing RO/MEE at Dahej & Patalganga. Use of water from the Sewage Treatment Plant for gardening, and number of GO GREEN activities were undertaken at the plant and staff colony.

iii) Solid Waste Management - Solid wastes are disposed of at secured landfill or sent for incineration at the Authorized Hazardous waste disposal facility. We have a program in place for waste management using reduction/ recycle/ reuse/ recovery techniques. These programs are continuously reviewed by monitoring their progress and effectiveness.

iv) Green belt - Tree plantation inside and outside the factory premises is given utmost importance and is done on a regular basis. At Kurkumbh the unit has developed 94,731 m2 green belt and planted approx. 14000 various species of plants. At Dahej, the unit has developed 22000 m2 area for green belt inside the plot and taken an adjacent land on lease from GIDC for development of greenbelt having 35,622 m2 area. This outside plot is contiguous to the existing plot. Around 5000 various species are planted at both the areas & remaining will be planted in this FY.

D) SAFETY, HEALTH AND ENVIRONMENT (SHE) EVENTS:

During FY20-21, there were no any SHE reportable events across the locations.

13. CORPORATE SOCIAL RESPONSIBILITY:

Your Company works with a deep sense of social commitment and contributes towards the welfare of the society that it is part of. The Company has formulated a Corporate Social Responsibility (CSR) Policy indicating the activities to be undertaken by the Company, which has been approved by the CSR Committee and the Board. Your Company’s concerns are focused on Environment Sustainability & Rural Development, Health/Women Empowerment, Education/Sports and others. In order to support the measures taken by Central Government and State Governments to prevent and contain the spread of Corona Virus (COVID 19), the Company had undertaken various relief projects to help those affected by COVID-19 and lockdown.

The Annual Report on CSR activities is annexed herewith as ‘Annexure 3”. The CSR Policy can be viewed on the website of the Company.

14. DIRECTORS AND KEY MANAGERIAL PERSONNEL:

Mr. Suneet Kothari, Executive Director, retires by rotation at the ensuing Annual General Meeting and, being eligible, has offered himself for re-appointment.

The Shareholders, at the 40th Annual General Meeting held on August 14, 2020, have approved the re-appointment of Mr. Kirat Patel and Mr. Suneet Kothari, as Executive Directors for a period of five years from 1st January, 2020 to 31st December, 2024 and Mr. Yogesh M. Kothari as Chairman & Managing Director for a period of five years from 1st April, 2020 to 31st March, 2025.

The Independent Directors of your Company have certified their independence to the Board, stating that they meet the criteria for independence as mentioned under Section 149 (6) of the Act.

In terms of provisions of Section 150 of the Companies Act, 2013 read with Rule 6(4) of the Companies (Appointment & Qualification of Directors) Amendment Rules, 2019 the Independent Directors of the Company have registered themselves with the Indian Institute of Corporate Affairs, Manesar (‘IICA’).

Mr. Rahul Mehta resigned as Chief Financial Officer of the Company w.e.f. September 21, 2020. The Board of Directors at their meeting held on February 2, 2021 has appointed Mr. Kirat Patel, Executive Director as Chief Financial Officer of the Company w.e.f. February 2, 2021. Mr. Kirat Patel, B. Tech., Mechanical Engineering from Indian Institute of Technology, Bombay and MMS (Finance) from Jamnalal Bajaj Institute of Management, Mumbai, has vast, varied and unique experience of more than 40 years in the areas of Operations, Commercial as well as Finance and Accounts.

The following are the Key Managerial Personnel of the Company in terms of the provisions of the Act read with The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:

• Mr. Yogesh M Kothari, Chairman & Managing Director

• Mr. Kirat Patel, Executive Director and Chief Financial Officer

• Mr. Suneet Y Kothari, Executive Director

• Mr. Chintamani Thatte, General Manager (Legal) & Company Secretary (and as Compliance Officer)

There was no change in the composition of the Board of Directors and Key Managerial Personnel during the year under review, except as stated above.

14.1 Board Evaluation

Pursuant to the provisions of Companies Act, 2013 and SEBI (LODR) Regulations, 2015, the annual evaluation has been carried out by the Board of its own performance and that of its Committees and individual Directors by way of individual and collective feedback from Directors. The Directors expressed their satisfaction with the evaluation process.

14.2 Remuneration Policy

The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration. The Remuneration Policy can be viewed on the company’s website.

14.3 Meetings

During the year four Board Meetings and five Audit Committee Meetings were convened and held, the details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013 and circulars and regulations issued under SEBI (LODR) Regulations, 2015 as amended from time to time.

14.4. DIRECTORS’ RESPONSIBILITY STATEMENT

To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3)(c) of the Companies Act, 2013:

a. that in the preparation of the annual financial statements for the year ended March 31, 2021, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

b. that such accounting policies as mentioned in Note 1 of the Notes to the Financial Statements have been selected and applied consistently and judgement and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2021 and of the profit of the Company for the year ended on that date;

c. that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. that the annual financial statements have been prepared on a going concern basis;

e. that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively.

f. that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.

No material changes or commitments have occurred between the end of the financial year and the date of this Report which affect the financial statements of the Company in respect of the reporting year.

15. RISK MANAGEMENT

The Company has an elaborate Risk Management reporting system, which is designed to enable risks to be identified, assessed and mitigated appropriately. The Board has constituted Risk Management Committee to identify elements of risk in different areas of operations and has formulated a Risk Management Policy for actions associated to mitigate the risks. There is a well-structured Business Continuity Plan with Risk Management process for identifying the risks which has helped in development of detailed risk mitigation plan. The Board oversees the Risk Management Report detailing all the risks that the Company faces such as Marketing, Supply Chain, Commercial, Operations and Safety, Human Resource, Compliance and Financial and there is an adequate risk management infrastructure in place, capable of addressing those risks.

16. INTERNAL FINANCIAL CONTROLS

Internal Financial Controls are an integrated part of the risk management reporting system, addressing financial and financial reporting risks. Assurance on the effectiveness of internal financial controls is obtained through management reviews and continuous monitoring by functional experts. We believe that these checks provide reasonable assurance that our internal financial controls are designed effectively, are adequate and are operating as intended.

17. VIGIL MECHANISM/WHISTLE BLOWER POLICY

The Company has established a Vigils Mechanism/Whistle Blower Policy for Directors and Employees to report their genuine concerns. The Mechanism provides for adequate safeguards against victimization of director(s)/ employee(s) who can avail of the mechanism and also provides for direct access to the Chairman of the Audit Committee in exceptional cases.

18. RELATED PARTY TRANSACTIONS

All related party transactions that were entered into during the financial year were at an arm’s length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.

All Related Party Transactions are placed before the Audit Committee as also the Board for approval. Prior omnibus approval, wherever necessary, of the Audit Committee is obtained on a quarterly basis for the transactions which are of a foreseen and repetitive nature. The transactions entered into pursuant to the omnibus approval so granted are audited and a statement giving details of all related party transactions is placed before the Audit Committee and the Board of Directors for their approval on a quarterly basis. The policy on Related Party Transactions as approved by the Board is uploaded on the Company’s website.

Since all related party transactions entered into by the Company were in the ordinary course of business and were on an arm’s length basis, form AOC-2 is not applicable to the Company for FY 2020-21.

19. CODE OF CONDUCT:

The Board of Directors has laid down a Code of Conduct applicable to the Board of Directors and Senior Management, which is available on the company’s website. All Board Members and Senior Management personnel have affirmed compliance with the code of conduct.

20. INSIDER TRADING POLICY:

As required under the Insider Trading Policy Regulations of SEBI, your Directors have framed and approved Insider Trading Policy for the Company i.e. ‘Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information’ and ‘Code of Conduct for Regulating Monitoring and Reporting of Trading by Designated Persons/Insiders’. The Policy is available on the company’s website.

21. FIXED DEPOSITS:

The Company has not accepted any fixed deposits from the public within the meaning of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.

22. INSURANCE:

The Properties and Assets of the Company are adequately insured.

23. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS:

There are no significant material orders passed by the Regulators / Courts / Tribunals which would impact the going concern status of the Company and its future operations.

24. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS BY THE COMPANY:

Details of loans, guarantees and investments covered under the provisions of Section 186 of the Companies Act, 2013, wherever applicable, are given in the notes to financial statements.

25. AUDITORS:25.1 Statutory Auditors

M/s. N.M. Raiji & Co., Chartered Accountants, Mumbai (Firm Registration Number 108296W) were appointed as Statutory Auditors of the Company at the 39th Annual General Meeting held on August 6, 2019 to hold office from the conclusion of the said meeting till the conclusion of the 42nd Annual General Meeting. The Companies (Amendment) Act, 2017 has waived the requirement for ratification of the appointment by the members at every Annual General Meeting. Hence, the approval of the members is not being sought for the re-appointment of the Statutory Auditors and in line with resolution of their appointment passed at the Annual General Meeting held on August 6, 2019. The Auditor’s Report for financial year 2020-21 does not contain any qualification, reservation, disclaimer or adverse remark. There was no instance of fraud during the year under review, which required the Statutory Auditors to report to the Audit Committee and / or Board under Section 143(12) of Act and Rules framed thereunder. The Auditor’s Report is enclosed with the financial statements in this Annual Report.

25.2 Cost Auditors

In terms of the Section 148 of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, it is stated that the cost accounts and records are made and maintained by the Company as specified by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013.

The Board of Directors has, on the recommendation of Audit Committee, appointed Messrs. Manish Shukla & Associates, as Cost Auditors for the year 2021-22 in place of Messrs Hemant Shah & Associates, Cost Auditors, under Section 148 of the Act read with The Companies (Cost Records and Audit) Amendment Rules 2014.

The remuneration payable to the Cost Auditors is required to be placed before the Members in a general meeting for their ratification. Accordingly, Resolution seeking Members’ ratification for the remuneration payable to Messrs. Manish Shukla & Associates as Cost Auditors for the year 2021-22 is included under Item No. 4 of the Notice convening the Annual General Meeting.

25.3 Secretarial Audit

Pursuant to the provisions of Section 204 of the Companies Act, 2013, The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and SEBI (LODR) Regulations, as amended, the Board of Directors has, on the recommendation of Audit Committee, re-appointed Mr. Prashant Mehta, Practising Company Secretary, to undertake the Secretarial Audit of the Company for the financial year ending 31st March, 2022.

The Auditor’s Report for financial year 2020-21 does not contain any qualification, reservation, disclaimer or adverse remark. The Report of the Secretarial Auditor for the financial year ending 31st March, 2021 is annexed herewith as ‘Annexure 4 ”.

26. CORPORATE GOVERNANCE

As per SEBI (LODR) Regulations, a separate section (Annexure 5) on corporate governance practices followed by the Company, together with a certificates from the Company’s Secretarial Auditors confirming compliance forms an integral part of this Report.

27. BUSINESS RESPONSIBILITY REPORT

A separate section on Business Responsibility Reporting forms part of this Annual Report as required under Regulation 34(2) (f) of the Listing Regulations.

28. AWARDS AND RECOGNITION

Your Company was recognized at important industry forums with prestigious and diverse external accolades in 2020-21 which include:

1. Business Standards awards for corporate excellence for 2020 declared your Company as winner of the Star SME Award

2. The Indian Chemical Council awarded our Chairman and Managing Director Mr. Yogesh M. Kothari, with the Lifetime Achievement Award for his major contribution with respect to manufacturing of chemicals.

29. CONSOLIDATED FINANCIAL STATEMENTS

Since the Company does not have any subsidiary or associate company there is no requirement of preparing the Consolidated Financial Statements during the financial year 2020-21 in accordance with relevant IND AS 110 issued by the Institute of Chartered Accountants of India.

30. ANNUAL RETURN

The Annual Return as required under Section 92(3) of the Companies Act, 2013 and Rule 12 of the Companies (Management and Administration) Rules, 2014 is available on the website of the Company and can be accessed at www.alkylamines.com.

31. EMPLOYEESa) EMPLOYEE STOCK OPTION PLAN 2018 (ESOP 2018)

The ESOP Scheme, AACL Employees Stock Option Plan 2018’ (AACL ESOP, 2018) approved by the shareholders in 2018, is in compliance with SEBI (Share Based Employee Benefits) Regulations, 2014 (SBEB Regulations). There were no changes in the Scheme during the year. The Nomination and Remuneration Committee of the Board of Directors of the Company, inter alia, administers and monitors the Scheme. Out of 54,621 stock options granted under the Scheme in March, 2019, 16,319 stock options were vested in March, 2020. During the year under review, 16,319 equity shares were allotted to the eligible employees pursuant to exercise of stock options by them. In April 2021, 20,702 stock options were vested under the Scheme and of that 3,853 equity shares were allotted to the eligible employees pursuant exercise of stock options by them. The Nomination and Remuneration Committee of the Board at its meetings held on 14th August, 2020 along with subsequent circular resolution passed on 20th August, 2020 and on 25th March, 2021 has further granted second tranche of 14,710 stock options and third tranche of 5,640 stock options respectively, to the eligible employees of the company under the AACL ESOP, 2018. The disclosures regarding stock options required to be made under the provisions of the SEBI Regulations are available on the website of the Company at http://alkylamines.com/investors/ ESOP%20Disclosure.pdf

A certificate from the Auditors of the Company that the Scheme has been implemented in accordance with SEBI Regulations and the resolution passed by the members, shall be placed in the ensuing Annual General Meeting for inspection of the members. A copy of the same will also be available for inspection at the Company’s Registered Office.

b) DISCLOSURES UNDER SECTION 197 OF THE COMPANIES ACT, 2013

Disclosures pertaining to the remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 thereunder forms part of the Board’s Report. The said disclosures, information and details in respect of employees of the Company required pursuant to said Section and the Rule will be provided upon request. Further a statement showing the names and particulars

of employees drawing remuneration in excess of limits as set out under Rule 5(2) of the said Rules also forms part of this Report. However, in terms of Section 136 of the Companies Act 2013, the Report and Accounts are being sent to the Members and others entitled thereto, excluding the statement of particulars of employees and is available for inspection by the Members at the Registered Office of the Company during business hours on working days of the Company up to the date of the ensuing Annual General Meeting. If any Member is interested in obtaining a copy thereof, such Member may write to the Company Secretary in this regard.

32. DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Company has formulated a comprehensive policy on prevention, prohibition and redressal against sexual harassment of women at workplace, which is in accordance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (‘POSH’). The said policy has been made available on the website of the Company.

In line with the requirements of POSH, the Company has set up Complaints Committees at its workplaces to look into complaints of sexual harassment received from any women employee. No complaints have been received during the year 2020-21.

33. CAUTIONARY STATEMENT

Statements in the Board’s Report and the Management Discussion & Analysis describing the Company’s objectives, expectations or forecasts may be forward-looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Company’s operations include global and domestic demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.

34. ACKNOWLEDGEMENTS

The Directors would like to take this opportunity to show their appreciation to all employees for their hard work, dedication and support which has helped us face all challenges and enable business continuity in these turbulent times of global coronavirus pandemic and lockdown. The Directors wish to place on record their appreciation of the continuous support received by the Company from the investors, participating Banks, Central/State Government Departments, its Customers and Suppliers.

For and on behalf of the Board

Place: Mumbai YOGESH M. KOTHARI

Date: May 27, 2021 Chairman & Managing Director

(DIN : 00010015)