Director's Report

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Aries Agro LtdIndustry : Fertilizers
BSE Code:532935NSE Symbol:ARIESP/E(TTM):12.99
ISIN Demat:INE298I01015Div & Yield %:0.36EPS(TTM):21.51
Book Value (Rs ):205.5925385Market Cap (Rs Cr.):363.16Face Value(Rs):10

To

The Members,

Aries Agro Limited

Your Directors have pleasure in presenting their 54th Annual Report on the operations of the Company together with the Audited Financial Statements for the Financial Year ended 31st March, 2024.

Financial Performance

(Rupees in Lakhs unless stated otherwise)

Particulars Standalone Consolidated
Year Ended 31st March, 2024 Year Ended 31st March, 2023 Year Ended 31st March, 2024 Year Ended 31st March, 2023
Revenue from Operations 66,403.63 60,996.84 67,285.64 61,233.96
Less :- Discount / Rebates 15,631.82 14,008.63 15,639.88 14,010.37
50,771.82 46,988.20 51,645.75 47,223.59
Other Income 634.36 1,328.19 297.18 883.95
Total Revenue (including Other Income) 51,406.18 48,316.39 51,942.93 48,107.54
Less :- Operating Expenses (excluding Finance Cost & Depreciation) 45,283.51 42,305.05 46,102.82 42,449.10
Profit Before Tax, Interest & Depreciation 6,122.66 6,011.34 5,840.11 5,658.44
Less :- Finance Costs 2,199.25 2,313.71 2,228.17 2,338.01
Depreciation & Amortisation Expense 742.89 762.07 773.64 783.87
2,942.13 3,075.78 3,001.81 3,121.89
Profit Before Tax 3,180.53 2,935.56 2,838.31 2,536.56
Less :- Current Tax 899.00 533.00 903.51 544.34
Mat Credit Entitlement - - (15.30) (0.55)
Tax relating to earlier periods 26.72 51.66 27.36 51.68
Deferred Tax 73.55 327.43 82.79 348.14
999.27 912.08 998.36 943.60
Profit After Tax 2,181.26 2,023.48 1,839.94 1,592.95
Add / (Less) :- Share of Profit / (Loss) of Associates - - - -
Profit for the year 2,181.26 2,023.48 1,839.94 1,592.95
Less :- Non-Controlling Interest - - (48.94) (119.98)
Profit for the year attributable to Owners of the Parent 2,181.26 2,023.48 1,888.89 1,712.93
Balance brought forward 15,768.72 13,849.28 15,558.96 13,948.83
Add / (Less) :- Foreign Currency Translation Reserve - - (62.45) 1.24
Amount available for Appropriation 17,949.98 15,872.76 17,385.40 15,663.00
Less :- Dividend Proposed / Paid 130.18 104.04 130.18 104.04
Tax on Dividend Proposed - - - -
Provision for Doubtful Debts - - - -
130.18 104.04 130.18 104.04
Surplus carried forward to Balance Sheet 17,819.80 15,768.72 17,255.22 15,558.96

 

Particulars

PERCENTAGE (%) TO GROSS SALES

Standalone

Consolidated

Year Ended 31st March, 2024 Year Ended 31st March, 2023 Year Ended 31st March, 2024 Year Ended 31st March, 2023
Revenue from Operations 100.00 100.00 100.00 100.00
Less :- Discount / Rebates 23.54 22.97 23.24 22.88
76.46 77.03 76.76 77.12
Other Income 0.96 2.18 0.44 1.44
Total Revenue (including Other Income) 77.41 79.21 77.20 78.56
Less :- Operating Expenses (excluding Finance Cost & Depreciation) 68.19 69.36 68.52 69.32
Profit Before Tax, Interest & Depreciation 9.22 9.86 8.68 9.24
Less :- Finance Costs 3.31 3.79 3.31 3.82
Depreciation & Amortisation Expense 1.12 1.25 1.15 1.28
4.43 5.04 4.46 5.10
Profit Before Tax 4.79 4.81 4.22 4.14
Less :- Current Tax 1.35 0.87 1.34 0.89
Mat Credit Entitlement - - (0.02) (0.00)
Tax relating to earlier periods 0.04 0.08 0.04 0.08
Deferred Tax 0.11 0.54 0.12 0.57
1.50 1.50 1.48 1.54
Profit After Tax 3.28 3.32 2.73 2.60
Add / (Less) :- Share of Profit / (Loss) of Associates - - - -
Profit for the year 3.28 3.32 2.73 2.60
Less :- Non-Controlling Interest - - (0.07) (0.20)
Profit for the year attributable to Owners of the Parent 3.28 3.32 2.81 2.80
Balance brought forward 23.75 22.70 23.12 22.78
Add / (Less) :- Foreign Currency Translation Reserve - - (0.09) 0.00
Amount available for Appropriation 27.03 26.02 25.84 25.58
Less :- Dividend Paid 0.20 0.17 0.19 0.17
Tax on Dividend Proposed - - - -
Provision for Doubtful Debts - - - -
0.20 0.17 0.19 0.17
Surplus carried forward to Balance Sheet 26.84 25.85 25.64 25.41

OPERATIONS STANDALONE

During the year under review, the Earnings Before Interest, Depreciation and Tax was 12.06 % compared to 12.79% in the previous year. The Total Revenue (excluding Other Income) for the year net of discount / rebates was Rs. 50,771.82 Lakhs as against Rs. 46,988.20 in the previous year. Profit after tax for the year was 4.30 % compared to 4.31% in the previous year.

CONSOLIDATED FINANCIAL STATEMENT

In accordance with the Indian Accounting Standard (Ind-AS) 110 on Consolidated Financial Statements, the Audited Consolidated Financial Statement is provided in the Annual Report.

The Consolidated Profit Before Interest, Depreciation, Exceptional Items and Taxes (EBITDA) of the Group was Rs. 5,840.11 Lakhs in the Financial Year 2023-24 compared to Rs. 5,658.44 Lakhs in the previous year. Consequently, the Consolidated Profit Before Exceptional Items and Taxes (PBT) was Rs. 2,838.31 Lakhs in the Financial Year 2023-24 compared to Rs. 2,536.56 Lakhs in the previous year.

FINANCIAL REVIEW

With the collective support of Staff and Aries Customers the Company was able to improve its revenue from Indian operations by 8.86% from Rs. 609.97 Crores to Rs.664.03 Crores. International sales have showed significant growth from the Aries branch in Fujairah, UAE and from our Associate Company, Amarak Chemcials FZC, UAE.

The total capacity utilization currently stands at 72.61% of the total installed capacity of 95,400 MT p.a. in India. The manufacturing unit at Fujairah, UaE has produced 6184.90 MT of Sulphur Bentonite and other value added Sulphur products for sale in India and globally

DIVIDEND

After considering earnings, requirement for funds and with the objective of rewarding the Shareholders, the Directors have recommended Final Dividend of 10% being Re. 1/- per Equity Share of Rs. 10/- each which is 5.96 % of Net Profit for the year ended 3151 March, 2024 (previous year 10% being Rs. 1.00 per Equity Share of Rs. 10/- each which is 6.43% of Net Profit) subject to your approval at the ensuing Annual General Meeting. The Dividend, if approved, will result in an outflow of Rs. 130.04 Lakhs.

TRANSFER TO RESERVES

Your Directors do not propose to transfer any amount to the General Reserve out of the current year's Profit and the balance aggregating to Rs. 17,819.80 Lakhs is proposed to be retained in the Profit and Loss Account.

FUTURE PROSPECTS:

The Year 2024-25 is the 55th Emerald Jubilee year of Aries operations. The favourable projection of monsoons due to transition to La-Nina phenomenon indicates positive future trend for the agro industry. After an erratic monsoon year, the Company is geared to address the high demand scenario by adding to automation, warehousing and taking steps for more stringent inventory control. We shall continue promotion of climate proof products and expansion in the range of plant protection products during the year. The Annual booking for 2024-25 was conducted online with participation of 1555 Dealers from 26 States who used the Aries booking app and have placed their bookings for Rs.835.10 crores of products to be lifted during FY 2024-25. This is expected to achieve gross revenue of around Rs.800 crores in FY 2024-25.

CREDIT RATING

The Company's Credit Rating has been revised by CRISIL Ratings on 27th March, 2024 as under:

Facilities

By CRISIL RATINGS

By CRISIL RATINGS (REVISED)

Amount (Rs) Rating Action Amount (Rs) Rating Action Indication/Significance
Long Term Bank Facilities (Fund Based) 150.00 Cr CRISIL BBB+/Stable (Reaffirmed) 150.00 Cr CRISIL BBB+/ Positive (Outlook revised from "Stable"; rating Reaffirmed) Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk
Short Term Bank Facilities(Non Fund Based) CRISIL A2 (Reaffirmed) CRISIL A2 (Reaffirmed) Instruments with this rating are considered to have strong degree of safety regarding timely payment of financial obligation. Such instruments carry low credit risk
Total 150.00 Cr 150.00 Cr

The rating reflect moderate degree of safety regarding timely servicing of financial obligations.

CHANGES IN NATURE OF BUSINESS AND REVISION IN THE BOARD'S REPORT

There is no change in the nature of business of the Company during the year. There is no revision made in the Board's Report and whatever submitted herewith is the final Report.

SAFETY AND HEALTH

The Company prioritizes the health and safety of its employees above all else. Efforts are continuously made to improve safety standards and processes to minimize risks across all operations. There have been no accidents or incidents in any of our factories. We have undertaken the following measures:

• Conducted risk assessments to identify potential hazards within the manufacturing process.

• Implemented regular safety training programs to ensure that employees are well-versed in safety protocols, emergency procedures, and the correct use of personal protective equipment (PPE).

• Provided health check-ups and monitoring to detect and address potential health issues related to the manufacturing process, ensuring early intervention and preventive measures.

PUBLIC DEPOSITS

The Company has not accepted any deposits from the Public within the meaning of Section 73 of the Companies Act, 2013 and Members (other than Directors) during the year under review and as such, no amount on account of Principal or Interest on Deposits from Public and Members (other than Directors) was outstanding as on 31st March, 2024. Accordingly, the question of any Deposits which are not in Compliance with the requirements of Chapter V of the Act, does not arise.

SUBSIDIARIES & ASSOCIATE COMPANIES

Your Company has four Subsidiaries out of which three are NonMaterial Indian Subsidiaries viz Aries Agro Care Private Limited, Aries Agro Equipments Private Limited and Mirabelle Agro Manufacturing Private Limited and one foreign subsidiary namely Golden Harvest Middle East FZC.

The operations of Aries Agro Care Pvt. Ltd. commenced in the Financial Year 2008-09 but discontinued the activity in the financial year 2012-13 due to extremely volatile nature of seeds business and had no business activity in the financial year 2023-2024. The Company incurred expenses to the tune of Rs. 0.37 Lakhs for the Financial Year. Upon filing of the Application in Form STK-2 for Strike Off with MCA, the Wholly Owned Subsidiary M/s Aries Agro Care Private Limited has been Struck Off with effect from 27th July, 2024.

The business operations of Aries Agro Equipments Pvt. Ltd. commenced in the year 2009-10 in agricultural sprayers but discontinued the activity in the financial year 2013-14 due to lack of appropriate distribution network for Farm Equipments. The business activities were re-started in the financial year 2022-2023. the Company achieved turnover of Rs. 27.08 Lakhs compared to Rs. 42.35 Lakhs in the Previous Year. The Company has incurred a Loss of Rs. 10.01 Lakhs compared to Profit of Rs. 3.52 Lakhs in the Previous Year.

Mirabelle Agro Manufacturing Private Limited was incorporated on 26th December, 2019. The Company started its full operations during the Financial Year 2021-22. The Company had a Turnover of Rs. 1,371.96 Lakhs as compared to Rs. 1,618.72 Lakhs in the Previous Year. The Company has earned a Profit of Rs. 28.89 Lakhs during the Financial Year 2023-24 as compared to the Profit of Rs. 80.42 Lakhs in the Previous Year. The Company has constructed its own Manufacturing Facility at the Land it bought last year at Village: Rajpur, Taluka- Kadi, Distt- Mehsana, Gujarat and has started the production activities w.e.f. 28th May, 2024.

The above three Companies are Wholly Owned Subsidiaries of the Company.

As regards the overseas subsidiary M/S. Golden Harvest Middle East FZC a Trading Entity, in their Eighteenth Year of operation, has not generated any sale as that of the previous year and has incurred Loss of AED 18.31 Lakhs Lakhs (INR 415.77 Lakhs) for the year 2023-2024, since trading revenue did not materialize for commercial reasons.

As required under Section 129(3) of the Companies Act, 2013, annexed hereto are the Audited Financial Statements for the Year ended 31st March, 2024 of Golden Harvest Middle East FZC., Aries Agro Care Private Limited, Aries Agro Equipments Private Limited and Mirabelle Agro Manufacturing Private Limited.

A Statement in Form AOC-1 of Subsidiary Companies as prescribed under Section 129(3) of The Companies Act, 2013 read with Rule 5 of Companies(Accounts) Rules, 2014, is annexed and is forming part of the Annual Report.

Apart from the above statement a list of Subsidiary & Group Companies is given in Note No. 40 of the Notes to Accounts, and is forming part of the Annual Report.

All the above Indian Subsidiaries and Group Companies are Unlisted and Non-Material Companies as defined under Listing Regulations. M/s. Amarak Chemicals FZC, Fujairah, UAE is an Associate of the Subsidiary M/s. Golden Harvest Middle East FZC.

There are no other Companies which have become or ceased to be a Subsidiary, Joint Venture or Associate Companies during the year. Upon filing of the Application in Form STK-2 for Strike Off with MCA, the Wholly Owned Subsidiary M/s Aries Agro Care Private Limited has been Struck Off with effect from 27th July, 2024.

There is no Holding, Associate or Joint Venture Companies other than as listed above.

INSURANCE

All properties and assets of your Company are adequately insured covering all conceivable risks.

DIRECTORS & KEY MANAGERIAL PERSONNEL DIRECTORS

Mr. R. V. Balasubramaniam Iyer was appointed as a Non Executive and Independent Director with effect from 1st February, 2024 by the Board of Directors at their Meeting held on 10th August, 2023 which was approved by the Members at the 53rd Annual General Meeting of the Company held on 29th September, 2023 by passing a Special Resolution.

In the opinion of the Board Mr. Iyer possess the Integrity, Expertise and Experience (including proficiency) as required from the Independent Director.

Mr. C. B. Chhaya(DIN-00968966) completed his term as an Independent Director on 31st March, 2024 and ceased to be a Director of the Company. The Board of Directors express their deep appreciation and gratitude to Mr. C. B. Chhaya for his contribution during his long tenure of more than 14 Years with the Company.

Apart from the above, there were no changes in the Composition of the Board of Directors during the year under review.

Pursuant to the provisions of Section 152(6) of the Companies Act, 2013, Mrs. Nitya Mirchandani(DIN 06882384) Director retires by rotation and being eligible, offers herself for re-appointment. Accordingly, her re-appointment forms part of the Notice of ensuing Annual General Meeting.

All the Independent Directors have submitted declarations to the effect that each of them meets the criteria of Independence as provided in Section 149(6) of the Companies Act, 2013 and Listing Regulations and there has been no change in the circumstances which may affect their status as an Independent Director during the year.

Section 149(10) of the Act provides that an Independent Director shall hold office for a term of five consecutive years on the Board and shall be eligible for re-appointment on passing a Special Resolution by the Company and disclosure of such appointment shall be made in its Board's Report. Section 149(11) provides that an Independent Director may hold office for up to two consecutive terms.

Accordingly, Prof. R. S. S. Mani(DIN-00527270) who was reappointed as an Independent Director for a second term of 5(Five) Years with effect from 26th September, 2019 at the Fourty Ninth Annual General Meeting held on 30th September, 2019 will be retiring on 25th September, 2024 as his term will expire on 25th September, 2024.

Pursuant to the recommendation of the Nomination and Remuneration Committee, the Board of Directors at their Meeting held on 13th August, 2024, appointed Dr. Shailesh Ramesh Karnik(DIN 06976928), as an Additional (Independent) Director with effect from 14th August, 2024, to hold office till the date of the ensuing Annual General Meeting of the Company. The Company received a notice in writing from a Member under the provisions of Section 160 of the Companies Act, 2013, proposing his candidature for the office of Director.

Pursuant to the recommendation of the Nomination and Remuneration Committee of the Company, Dr. Shailesh Ramesh Karnik(DIN 06976928) was appointed as an Independent Director of the Company, not liable to retire by rotation, by the Board of Directors at their Meeting held on 13th August, 2024 for a term of 5 (five) consecutive years with effect from 14th August, 2024 up to 13th August, 2029, subject to the approval of the Members by way of Special Resolution.

Accordingly, the appointment of Dr. Shailesh Ramesh Karnik as an Independent Director forms part of the Agenda and the proposed Resolution is set out at Item Nos. 4 & 5 of the Notice.

In the opinion of the Board, Mr. Shailesh Ramesh Karnik is a person of integrity, possesses the expertise in various areas. He is professionally qualified Chief Executive Officer, Chief of Staff, Strategist, M&A Specialist and Legal Consultant. He has over 28 years of experience in the field of Business Management and Operations and has been associated with various Prominent Companies and is proficient in his role and fulfils the conditions specified in the Act and the Rules made thereunder read with the provisions of the Listing Regulations, each as amended, and is independent of the Management of the Company.

During the year, the Non-Executive Directors of the Company had no pecuniary relationship or transactions with the Company.

Familiarisation Programme for Independent Directors-Though there is no formal Policy for familiarization but the Company in order to familiarize the Independent Directors with the business of the Company, makes presentation by the Functional Heads covering Operations of the Company at every Quarterly board meeting and nature and scope of business, nature of industry in which Company operates, profitability and future plans. Regularly at meetings updates are given to the Board. House Journal as and when published is also sent to all the Directors and their feedback are considered. Action Taken Report and Legal Updates are also being placed at every meeting of the Board and Audit Committee just to keep the Directors updated with the latest amendments and Action Taken by the Management.

KEY MANAGERIAL PERSONNEL

There were no change in the Key Managerial Personnel during the year under review. All the Key Managerial Personnel have submitted disclosures and declaration required under the Companies Act, 2013 and Listing Regulations.

MEETINGS OF BOARD

Five(5) Meetings of the Board of Directors were held during the year on 23.05.2023, 10.08.2023, 13.09.2023, 08.11.2023, and 14.02.2024. For further details, please refer Report on Corporate Governance of this Annual Report.

AUDIT COMMITTEE

There were no changes in the Audit Committee during the year under review. The Committee comprised of Mr. C. B. Chhaya, Chairman, Prof. R. S. S. Mani, Mrs. Nitya Mirchandani and Mr. Nrupang Bhumitra Dholakia, Members.

In view of the retirement of Mr. C. B. Chhaya on 31st March, 2024, the Audit Committee has been reconstituted with effect from 1st April, 2024. The Committee comprises of Mr. Nrupang Bhumitra Dholakia, Chairman, Prof. R. S. S. Mani, Mrs. Nitya Mirchandani and Mr. R. V. Balasubramaniam Iyer, Members.

For further details, please refer Report on Corporate Governance of this Annual Report.

All the recommendations made by the Audit Committee were accepted by the Board during the year under review.

NOMINATION AND REMUNERATION COMMITTEE

There were no changes in the Nomination and Remuneration Committee during the year under review. The Committee comprised of Prof. R. S. S. Mani, Chairman, Mr. C. B. Chhaya, and Mr. Nrupang Bhumitra Dholakia, Members.

In view of the retirement of Mr. C. B. Chhaya on 31st March, 2024, the Nomination and Remuneration Committee has been reconstituted with effect from 1st April, 2024. The Committee comprises of Prof. R. S. S. Mani, Chairman, Mr. Nrupang Bhumitra Dholakia and Mr. R. V. Balasubramaniam Iy, Members.

For further details, please refer Report on Corporate Governance of this Annual Report.

STAKE HOLDERS RELATIONSHIP COMMITTEE

There was no change in the Stake Holders Relationship Committee during the year under review. The Committee comprised of Mr. C. B. Chhaya(Chairman), Dr. Rahul Mirchandani and Mrs. Nitya Mirchandani.

In view of the retirement of Mr. C. B. Chhaya on 31st March, 2024, the Stake Holders Relationship Committee has been reconstituted with effect from 1 st April, 2024. The Committee comprises of Mr. Nrupang Bhumitra Dholakia (Chairman), Dr. Rahul Mirchandani and Mrs. Nitya Mirchandani. Members.

For further details, please refer Report on Corporate Governance of this Annual Report.

CSR COMMITTEE

There was no change in the Corporate Social Responsibility(CSR) Committee during the year under review. The Committee comprises of Dr. Rahul Mirchandani(Chairman), Mrs. Nitya Mirchandani and Mr. Nrupang Bhumitra Dholakia, Members. For further details, please refer Report on Corporate Governance of this Annual Report.

BOARD EVALUATION

The Board of Directors have carried out an Annual Evaluation of its own performance and individual Directors themselves pursuant to the provisions of the Act and --Corporate Governance requirements as prescribed by Regulation 17(10) of the SEBI(LODR) Regulations, 2015.

The performance of the Board was evaluated by the Board after seeking inputs from all the Directors on the basis of criteria such as the Board Composition and Structure, Effectiveness of Board Process, Information and Functioning etc.

In a separate Meeting of the Independent Directors, performance of Non-Independent Directors, Performance of the Board as a whole and performance of the Chairman was evaluated, taking into account the views of Executive Directors and Non-Executive Directors.

POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION AND OTHER DETAILS

The Policy on Directors Appointment and Remuneration including criteria for determining qualifications, positive attributes, independence of Director and also Remuneration for Key Managerial Personnel and other Employees are contained in the Nomination and Remuneration Policy which is hosted at the web site of the Company www.ariesagro.com and the same is re-produced in the Report on Corporate Governance.

DIRECTORS' RESPONSIBILITY STATEMENTS

Pursuant to the requirements of Section 134(5) of the Companies Act, 2013 the Board of Directors, to the best of their knowledge and ability, confirm that:

1. in preparation of the Annual Accounts, applicable Accounting Standards have been followed and that there are no material departures;

2. they have selected such Accounting Policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the State of the Affairs of the Company at the end of the financial year and of the Profit of the Company for that year;

3. they have taken proper and sufficient care 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;

4. they have prepared the Annual Accounts on a ‘going concern' basis;

5. they have laid down Internal Financial Controls to be followed by the Company and such Internal Financial Controls are adequate and operating effectively;

6. they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

PARTICULARS OF EMPLOYEES & RELATED DISCLOSURES

The information required under Section 197 of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are as under:

1. The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year;

Non-Executive Directors Ratio to median Remunerations Directors Remuneration / Sitting Fees Rs. Lakhs
Dr. Jimmy Mirchandani 0.28 0.80
Mrs . Nitya Mirchandani 1.04 3.00
Prof R. S. S. Mani 1.18 3.40
Mr. Chakradhar Bharat Chhaya 1.25 3.60
Mr. Nrupang Bhumitra Dholakia 1.32 3.80
Mr. R. V. Balasubramaniam Iyer 0.21 0.60
Executive Directors
Dr. Rahul Mirchandani 85.85 246.65

2. The percentage increase in remuneration of each Director, Chief Financial Officer, Company Secretary or Manager, if any, in the financial year;

Directors, Chief Financial Officer, Company Secretary % Increase in Remuneration in the Financial Year
Dr. Rahul Mirchandani, CMD --
Mr. Qaiser P. Ansari, Company Secretary & Chief Legal Officer 12.85
Mrs. Chhaya A. Warrier, Senior V.P. Finance(CFO) (4.18)

3. The percentage increase in the median remuneration of employees in the financial year; (3.79) %

4. The number of permanent employees on the rolls of Company; 1,123

5. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration;

The average annual increase was around 12.30% after accounting for promotions and other event based compensation revision.

6. Affirmation that the remuneration is as per the Remuneration Policy of the Company.

The Company affirms that the remuneration is as per the Remuneration Policy of the Company.

The Statement containing Particular of Employees as required under Section 197(12) of the Companies Act, 2013 read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, drawing remuneration in excess of the limits set out in the said Rules are provided in the Annual Report.

Information in accordance with the provisions of Section 197(12) of the Companies Act, 2013 ("Act") read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are as under:

TOP 10 EMPLOYEES IN TERMS OF REMUNERATION DRAWN DURING THE YEAR 2023-24

Sr. No. NAME DESGINATION REMUNERATION RECEIVED NATURE OF EMPLOYMENT OTHER TERMS & CONDITIONS NATURE OF DUTY QUALIFICATION & EXPERIENCE DATE OF COMMENCEMENT AGE Last Employment held % of Equity Shares held as on 31.03. 2022 Whether relative of any Director or Manager and the name of such Director or Manager
1 DR.RAHUL MIRCHANDANI CHAIRMAN & MANAGING DIRECTOR 24,664,800 CONTRACTUAL N.A. MANAGING THE AFFAIRS OF THE COMPANY B. Com; CFA; MBA; Ph.D 02.02.1994 48 N.A. 26.59 Brother of Dr. Jimmy Mirchandani & Husband of Mrs. Nitya Mirchandani
2 MR. JAYAPRADEEP SUBRAMANIAN SENIOR CHIEF MARKETING CONTROLLER (SOUTHERN REGION) 11,221,889 FULL TIME EMPLOYEE N.A. MARKETING & EXTENSION ACTIVITIES FOR SOUTHERN REGION M.Sc. MBA 15.11.2013 42 M/s Tata Consultancy Services, Desgn - IT Analyst 0.05 N.A.
3 MR. ARUN K. TIWARI SENIOR CHIEF MARKETING CONTROLLER (NORTH & WEST INDIA) 7,280,450 FULL TIME EMPLOYEE N.A. MANAGING THE MARKETING ACTIVITIES OF NORTHERN REGION B. Sc 01.12.1992 56 N.A. 0.00 N.A.
4 MR. SANTOSH KUMAR PANDEY VICE PRESIDENT (MARKETING) 5,274,629 FULL TIME EMPLOYEE N.A. MANAGING THE MARKETING ACTIVITIES OF MAHARASHTRA, NIPANI DIVISION M. Sc (Ag) 26.05.2004 50 N.A. 0.00 N.A.
5 MR. QAISER PARVEZ ANSARI COMPANY SECRETARY & CHIEF LEGAL OFFICER 4,520,981 FULL TIME EMPLOYEE N.A. COMPANY SECRETARY B. Com. LLB ACS 02.06.2008 61 M/s Sabero Organics Gujarat Ltd., Desgn - CS & Dy.Gen. Manager (Legal & Taxation) 0.00 N.A.
6 MR. BIPLOB CHATTERJEE CHIEF OPERATIONS OFFICER 4,110,980 FULL TIME EMPLOYEE N.A. OVER ALL PRODUCTION B.Sc. 08.12.2009 55 M/s Jaysynth Dye Chem, Desgn - Production Officer 0.00 N.A.
7 MR. RAJESH GUPTA JOINT VICE PRESIDENTMARKETING 4,067,010 FULL TIME EMPLOYEE N.A. MANAGING THE MARKETING ACTIVITIES OF WESTERN REGION B.A. 06.07.2001 45 N.A. 0.00 N.A.
8 MR. PREMRAJ CHAUHAN MARKETING CONTROLLER 3,996,196 FULL TIME EMPLOYEE N.A. MANAGING THE MARKETING ACTIVITIES B.Sc. 10.08.1997 50 N.A. 0.00 N.A.
9 MR. BHAGWADAS GANGWAR DEPUTY MARKETING CONTROLLER 3,773,278 FULL TIME EMPLOYEE N.A. MANAGING THE MARKETING ACTIVITIES B. A. 01.04.2003 48 J. D. Biotech 0.00 N.A.
10 MR. DEVENDRA TIWARI VICE PRESIDENT (OPERATIONS) 3,575,773 FULL TIME EMPLOYEE N.A. MANAGING THE MARKETING ACTIVITIES OF THE CENTRAL REGION M.Sc 02.01.2002 48 M/s Valace Agrochemical Ltd 0.00 N.A.
11 MRS. CHHAYA ASHOK WARRIER SR. VICE PRESIDENT- FINANCE 3,120,826 FULL TIME EMPLOYEE N.A. OVER ALL FINANCE / ACCOUNTS B. Com. 15.01.2004 51 L & T Ltd 0.00 N.A.

PARTICULARS OF EMPLOYEES IN TERMS OF SECTION 197(12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5(2) AND 5(3) OF THE COMPANIES(APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014 DRAWING REMUNERATION NOT LESS THAN Rs. 1.02 Crores p.a./Rs. Eight Lakhs Fifty Thousand p.m. DURING THE YEAR 2023-24

SR. No. NAME DESGINATION REMUNERATION RECEIVED NATURE OF EMPLOYMENT OTHER TERMS & CONDITIONS NATURE OF DUTY QUALIFICATION & EXPERIENCE DATE OF COMMENCEMENT AGE Last Employment held % of Equity Shares held as on 31.03.2022 Whether relative of any Director or Manager and the name of such Director or Manager
1 DR.RAHUL MIRCHANDANI CHAIRMAN & MANAGING DIRECTOR 24,664,800 CONTRACTUAL N.A. MANAGING THE AFFAIRS OF THE COMPANY B. Com; CFA; MBA; Ph.D 02.02.1994 48 N.A. 26.59 Brother of Dr. Jimmy Mirchandani & Husband of Mrs. Nitya Mirchandani
2 MR. JAYAPRADEEP SUBRAMANIAN SENIOR CHIEF MARKETING CONTROLLER (SOUTHERN REGION) 11,221,889 FULL TIME EMPLOYEE N.A. MARKETING & EXTENSION ACTIVITIES FOR SOUTHERN REGION M.Sc. MBA 15.11.2013 42 M/s Tata Consultancy Services, Desgn - IT Analyst 0.05 N.A.

ESOPS

The Company has not offered any ESOPS scheme to its Employees or Directors.

LIST OF SENIOR MANAGEMENT

Pursuant to the Regulation 30 of LODR the List of Senior Management is given in the Report on Corporate Governance which forms part of this Report.

RISK MANAGEMENT AND INTERNAL FINANCIAL CONTROLS

Your Company has elaborate Risk Management Procedure which is based on three Pillars. Business Risk Assessment, Operational Controls Assessment and Policy Compliance processes. Major Risks identified by the Business and Functions are systematically addressed through mitigating actions on continuing basis. The Key risks are also discussed at the Audit Committee.

The Company's Internal Financial Control System is commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested and certified by the Statutory as well as Internal Auditors covering all Offices, Factories and Key Business areas. Significant Audit Observations and Follow Up Actions thereon are reported to Audit Committee. The Audit Committee reviews adequacy and effectiveness of the Company's Internal Control environment and monitors the implementation of the audit recommendations. AIMS & Tally ERP are the backbone for Reporting and Financial Controls.

Based on the framework of Internal Financial Controls and Compliance System established and maintained by the Company, work performed by the Internal, Statutory and Secretarial Auditors and review performed by the Management and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that the Company's Internal Financial Controls were adequate and effective during the Financial Year 2023-24.

GREEN INITIATIVES

Pursuant to Sections 101 and 136 of the Companies Act, 2013 the Company will be sending Annual Report through electronic mode(email) to all the shareholders who have registered their email addresses with the Company or with the Depository to receive the Annual Report through electronic mode and initiated steps to reduce consumption of paper.

HUMAN RESOURCES

Humans are considered as one of the most critical resources in the business which can be continuously smoothened to maximize the effectiveness of the Organization. Human resources build the Enterprise and the sense of belonging would inculcate the spirit of dedication and loyalty amongst them towards strengthening the Company's Polices and Systems. All personnel continue to have healthy, cordial and harmonious approach thereby enhancing the contributory value of the Company.

LISTING

The Equity Shares of the Company are listed at BSE Limited (BSE) and National Stock Exchange of India Limited(NSE).

The Company has made all the compliances of Listing Regulations including payment of Annual Listing Fees upto 31st March, 2025 to both the Stock Exchanges.

CORPORATE GOVERNANCE

The Company has complied with the various requirements under the Corporate Governance reporting system. A detailed Compliance Report on Corporate Governance is annexed to this Report as required by the Listing Regulations. The Auditors' Certificate on Compliance with the conditions of Corporate Governance is also annexed to this report.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Management's Discussion and Analysis Report for the year under review, as stipulated under Listing Regulations with the Stock Exchanges, is also annexed to this report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING & OUTGO

Particulars in respect of Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo, as required to be disclosed by the Companies (Accounts) Rules, 2014 and forming a part of the Directors Report are as under: -

I. CONSERVATION OF ENERGY

The Company accords great importance to conservation of energy. The main focus of the Company during the year was:

a. Step taken by the Company for utilizing alternate sources of Energy:-

i. We have installed 160 kw solar panel facility to fully power our Mumbai Factory and Head Office with clean energy. This initiative will prevent 150 tons of carbon emissions, equivalent to planting 450 trees, thus contributing to our commitment to sustainable practices. Aries continues power generation through its Solar Power Generation System at its manufacturing unit at Pashamylaram, Dist. Medak, Telangana

ii. Creating awareness among Workmen to conserve energy

iii. Conversion of boilers in Hyderabad Unit from diesel to solid briquette based fuel.

iv. Close monitoring of consumption of electricity, LPG, Diesel and water.

v. Optimum use of Energy by Switching off Machines, Lights, Fans, Air Conditioners and Exhaust Systems whenever not required.

vi. Exclusive use of CNG for manufacturing at Chhatral Unit

b. Capital Investment on Energy Conservation Equipments:-

Sr. No. Description For the Year ended 31" March 2024 (Amt. in Lakhs) For the Year ended 31" March 2023 (Amt. in Lakhs) Cumulative upto 31.03.2024
1. Solar Power Generation System at its Manufacturing Unit at Pashamylaram, Distt: Medak 0.00 0.00 83.44
2. Solar Power Generation System at Mumbai Unit. 65.00 0.00 65.00
3. *Solar Power Generation System at Chhatral Manufacturing Unit 94.00 0.00 94.00

*The Solar Power Generation System at Chhatral Manufacturing Unit is yet to be commissioned.

Impact of measures taken for reduction of energy consumption and consequent impact on the cost of production of goods

c. Total energy consumption and energy consumption per unit of production

Form -A

Form for disclosure of Particulars with respect to Conservation of Energy.

Sr. No. Particulars Current Year Previous Year Previous Year
2023-2024 2022-2023 2022-2023
(a) Purchased:-
I. Electricity
(i) Unit (KWH) 1,492,745 1,496,485 1,496,485
(ii) Total Amount (Rs) 15,162,421 14,307,840 14,307,840
(iii) Rate/Unit (Rs.) 10.16 9.56 9.56
II Piped Gas
(i) Unit(M3) 3,727 4,592 175,163
(ii) Total Amount (Rs) 8,042,324 10,249,209 10,249,209
(iii) Rate/Unit (Rs.) 2,157.71 2,231.80 58.51
(b) Own Generation
(i) Coal Not Applicable Not Applicable Not Applicable
(ii) Furnace Oil - KI - - -
(iii) Internal Generation Units(Generator) 873 125 125
(iv) Solar System Units 64,441.60 44,392 44,392

Note: Financial Year 2022-23 the piped gas consumption was quantified in SCM which has now been changed to MMBTU effective from FY 23-24

II. Form for disclosure of particulars with respect to Technology Absorption, Research and Development

(A) RESEARCH AND DEVELOPMENT:

1. Specific Areas in which Research and Development was carried out by the Company.

• The Company has received in house R & D recognition from DSIR and is continuously striving to launch / introduce innovative products / technologies in the field.

• The Company's Quality Management System at Mumbai is ISO 9001:2015 certified and works on new product development and continuous quality checks.

• All our manufacturing units viz. at Mumbai, Hyderabad, Chhatral, Vijayawada, Lucknow and Raipur has been equipped with a state of art laboratory to keep pace with the Company's expansion in that region.

• In the last few years, the Company has been focusing on Crop specific formulations, hydroponic nutrient formulations and specific formulations for international markets and new technologies in agriculture like drones, apps and digitization.

• Baseline R&D work has been initiated on new agri-input products like nano fertilizers, organic fertilizers, different form of fertilizer formulations, farm machineries and environment friendly product packaging options.

• Emphasis is also given on standardizing the QC procedures for the new products launched.

• Factory procedures are being modified to increase the shelf life and quality of various products. Self-manufacturing of some raw materials is also being done.

• New High Density formulations have been developed to achieve reduction in dosage.

• The Company has started using Drones to spray High Density (HD) formulations, bio-stimulants and other water solubles as per crop based requirements.

• The Company has introduced AI/ML (Artificial Intelligence/ Machine Learning) based soil testing devices in collaboration with research institutions.

• AIMS (Aries Information Management System) has been developed in line with the digitization policy of the company for efficient process management.

• Our team of extension officers conduct continuous field demonstrations and field trials alongwith large scale soil testing, dealer / farmer meetings, field days, etc. which provides constant updates on market demand and technical requirements across all states in India in the agri sector

• To supplement the extension activities a dedicated in house research farm has been set up at Raipur, is used to carry out research for the new products being developed.

• There is a continuous focus on co development projects with Educational and Research Institutions in relevant areas, which continues across India alongwith publications in various reputed agri journals.

2. Objectives

• Innovate and develop products/ technologies ideally suited for sustainable and precision agriculture

• Design and Develop new manufacturing processes to improve the cost effectiveness of the products as well as their agronomical efficiency.

• Develop production processes that utilize renewable energy and are pollution free.

• Ensure continuous updation of in house knowledge required to develop products and services for the company.

• Source worldwide information related to product development and agriculture best practices

• Develop new age environmental friendly crop management techniques

3. Benefits derived as a result of the above efforts.

• Improvement in productivity/quality and reduction in cost of production of Company's Plants and at Customer's end.

• Cost reduction, import substitution, safer environment and strategic resource management.

• Meeting the statutory requirements.

• Demonstration of a Sustainable urban farm set up to address the issue of residue free healthy food.

• Market Expansion

• Increase in number of products

4. Future Plan of Action :

• Development and manufacturing of country specific customized micronutrient fertilizers for exports

• Develop new urban markets for hobby growers.

• Development of suspension liquids and controlled release fertilizers.

• Modification of manufacturing process to make it pollution free.

• To develop new markets in the Protected Cultivation and Precision Agriculture sector.

• Conducting scientific research and studies, pilot scale development, trial and testing for development of new products, new process development, improvement in the existing production process, etc

5. Expenditure on R & D

Sr. No. Description For the Year ended 31st March 2024 (Amt. in Lakhs) For the Year ended 31st March 2023 (Amt. in Lakhs)
I) Capital(Laboratory Equipments) 9.69 16.07
II) Recurring 236.74 316.12
Total 246.33 332.18
Total R&D expenditure as a % of
a) Gross Turnover 0.37 0.64
b) Net Turnover 0.49 0.71

B1. Technology Absorption, Adaptation and Innovation

The Management has focused on productivity and Total Quality Management [TQM] in order to optimize manufacturing costs. The Company continues to be ISO 9001:2015 certified.

B2. Benefits

This has helped in achieving optimum manufacturing costs, improved quality of products and consequently, enhanced customer satisfaction. The Company uses indigenous technology.

B3. The Company has not imported any technology during the year under review.

C. Foreign Exchange Earnings and Outgo

Initiatives were taken to increase exports and development of new overseas markets. International clients are located in Australia, Brazil, New Zealand, Netherlands, Nepal, Taiwan, Turkey, UAE, etc. International sales have showed significant growth which includes sales from Aries Fujairah, UAE and from our Associate Company, Amarak Chemcials FZC, UAE.

1. Total Foreign Exchange used and earned:

Used : Rs. 55,68,72,844/- Earned: Rs. 58,91,322/- SPECIAL BUSINESS

As regard to the items of the Notice of the AGM relating to Special Business, the resolutions incorporated in the Notice and the Explanatory Statement relating thereto, fully indicate the reasons for seeking the approvals of Members to those proposals. Your attention is drawn to these items and Explanatory Statement annexed to the Notice.

VIGIL MECHANISM

The Vigil Mechanism of the Company, which also incorporates a Whistle Blower Policy in terms of the Listing Regulations is in place. Protected disclosures can be made by a Whistle Blower in writing or through an e-mail, to the Chairman/Member of the Audit Committee.

The Policy on Vigil Mechanism and Whistle Blower Policy may be accessed on the Company's website www.ariesagro.com.

PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE, GUARANTEES GIVEN & SECURITIES PROVIDED

Particulars of Loans given, Investments made, Guarantees given and Securities provided along with the purpose for which the Loan or Guarantee or Security is proposed to be utilized by the recipient are provided in the Standalone Financial Statements.

CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES

None of the transactions with Related Parties falls under the scope of Section 188(1) of the Companies Act, 2013. Information on transactions with Related parties pursuant to Section 134(3)(h) of the Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rule, 2014 are given in Annexure-I in Form AOC-2 and the same forms part of this Report.

CORPORATE SOCIAL RESPONSIBILITY

The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company and the initiatives undertaken by the Company on CSR activities during the year are set out in Annexure-II of this Report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. The Policy is available on the Web-Site of the Company at www.ariesagro.com.

Your Company continues to demonstrate a strong commitment towards providing products which do not hamper the soil and crop eco systems.

ANNUAL RETURN

Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return as on March 31,2024 is available on the Company's website on www.ariesagro.com.

COST RECORDS

The Company is required to maintain Cost Records as specified by the Central Government under sub-section(1) of Section 148 of the Companies Act, 2013 and the Company has made such accounts and maintained such records.

AUDITORS & AUDITORS REPORTS

Statutory Auditors

M/s Kirti D. Shah & Associates, Chartered Accountants, Mumbai(Firm Registration No. 115133W, Membership No. 32371), and having Peer Review Certificate issued by the Institute of Chartered Accountants of India), were appointed as the Statutory Auditors of the Company for a period of 5(five) years at the Fifty Second Annual General Meeting of the Company held on 29th September, 2022 and being eligible continue to be the Statutory Auditors.

The Statutory Auditors' Report both with respect to the Standalone and Consolidated Financial Statements do not contain any qualification, reservation or adverse remark. Further that there was no fraud reported by Auditors under sub-section (12) of Section 143 of the Companies Act, 2013.

Cost Auditors

The Company has appointed M/s. R. Nanabhoy & Co., Cost Accountants, to conduct the Audit of Cost Accounting Records of its products for the financial year 2022-2023.

The due date for filing the Cost Audit Reports in XBRL mode for the financial year ended March 31, 2023 was 12th October, 2023. The Cost Audit Reports were filed by the Cost Auditor on 5th October, 2023 within the due date.

Further M/s. R. Nanabhoy & Co., Cost Auditors were re-appointed as the Cost Auditor of the Company for the year ending 31st March, 2024 by the Board of Directors on 10th August, 2023 after ensuring their eligibility and obtaining the letter of eligibility from them.

The Company's Cost Audit for the Financial Year 2023-2024 is under process and the Company will have the Audit completed within 180 days of the end of the Financial Year-2023-2024 i.e. on or before 27th September, 2024 and file the Report within stipulated time.

Secretarial Auditors

The Board appointed Mr. A. Sekar, Practising Company Secretary, to conduct Secretarial Audit for the financial year 2023-2024. The Secretarial Audit Report for the financial year ended March 31,2024 is annexed herewith and marked as Annexure-III to this Report.

The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.

SECRETARIAL STANDARDS

The Company has in place proper systems to ensure compliance with the provisions of the applicable Secretarial Standards issued by The Institute of Company Secretaries of India and such systems are adequate and operating effectively.

ANNUAL SECRETARIAL COMPLIANCE REPORT

Pursuant to Regulation 24A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), the Company obtained the Annual Secretarial Compliance Report for the Financial Year 2023-2024 from Mr. A. Sekar, Practising Company Secretary, the Secretarial Auditor of the Company and the same has been filed with the BSE Limited and the National Stock Exchange of India Limited on 29th May, 2024 well within the time. The Secretarial Auditor has not reported any non-compliance.

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

The Company has zero tolerance towards sexual harassment at the workplace. The Company has adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at Workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules thereunder.

The Company has complied with the provisions relating to the constitution of the Internal Complaints Committee as per the Sexual Harassment of Women at Workplace Prevention, Prohibition and Redressal) Act, 2013.

There was no complaint received during the year under review.

MATERIAL CHANGES AND COMMITMENTS, IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE FINANCIAL YEAR END OF THE COMPANY TO WHICH FINANCIAL RESULTS RELATE

Except as disclosed elsewhere in this report, no material changes and commitments which could affect the Company's financial position have occurred between the end of the financial year of the Company and date of this report.

SIGNIFICANT AND MATERIAL ORDERS PASSED

No Significant and Material Orders have been passed by any Authority in respect of any matters with regard to the business of the Company during the Financial Year.

Referring to the Previous Year's Board's Report, classification of Micronutrients relating to the Sanand Unit in the state of Gujarat is pending before Customs, Excise and Service Tax Appellate Tribunal(CESTAT) at Ahmedabad and the matter is yet to be heard.

The Commissioner of Central GST & Central Excise had passed an order against the Company for Mumbai facilities. However, the Company successfully defended these Orders before CESTAT, Mumbai and the Apex Court dismissed the Appeal filed by the Department against the Order passed by CESTAT, Mumbai. Since the matters before CESTAT Ahmedabad are identical i.e. Classification, the Company is confident of obtaining favourable Orders in these matters too and does not foresee any material impact. The matter is yet to be heard.

As per the recent amendment in the Listing Regulations, the Company is required to disclose to the Exchanges the List of pending Material Litigations and keep on updating with the progress.

The List of Material Litigations with their Current Status is as under:

Nature of Dues Period to which payment relates Forum where the dispute is pending Particulars of Dispute Tax Outstanding Rs. Current Status
Income Tax 2011-12 High Court of Bombay (1) Transfer Pricing adjustment (2) Disallowance u/s 2(24)(x) r.w.s. 36(1) (va) 2,12,74,249 Appeal admitted and pending hearing
Income Tax 2017-18 Commissioner of Income Tax (Appeal)- Mumbai Addition u/s 68 r.w.s 115BBE 5,05,07,376 Appeal admitted and pending hearing
Income Tax 2021-22 Commissioner of Income Tax (Appeal)- Mumbai Adhoc (30%) disallowance of Some Expenses 9,74,72,850 Appeal admitted and pending hearing
Goods & Service Tax 2018-19 Commissioner of Goods & Service Tax (Appeal)- Mumbai Input Tax Credit claimed and availed from Suppliers whose Registration Certificates were cancelled by the Department. 1,67,27,886 + 2,12,44,416 (Interest) + 16,72,788 (Penalty) Appeal admitted and pending hearing
Central Excise & Customs March 2011 to October 2012 Central Excise & Service Tax Appellate Tribunal (CESTAT)- Ahmedabad Classification of Goods Manufactured 3,81,04,558 + 3,81,04,558(Penalty) Appeal admitted and hearing postponed from time to time. Next date of hearing is 18th September, 2024
Central Excise & Customs June 2005 to Jun 2017 Central Excise & Service Tax Appellate Tribunal (CESTAT)- Mumbai Classification of Goods Manufactured 4,79,90,362 Appeal admitted and pending hearing
Central Excise & Customs October 2012 to Jun 2017 Central Excise & Service Tax Appellate Tribunal (CESTAT)- Ahmedabad Classification of Goods Manufactured 13.84.20.563 + 13.84.20.563 (Penalty) Appeal admitted and hearing postponed from time to time. Next date of hearing is 18th September, 2024
Central Excise & Customs Feb 2012 to Dec 2012 Central Excise & Service Tax Appellate Tribunal (CESTAT)- Mumbai Classification of Imported Goods 81,84,792 Appeal admitted and pending hearing

DISCLOSURE REGARDING ANY APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016.

The Company, during the Financial Year, has neither made any application nor any proceeding are pending against the Company under the Insolvency and Bankruptcy Code, 2016.

DISCLOSURE REGARDING ANY DIFFERENCE IN VALUATION

The Company during the Financial Year, did not do any one time settlement and hence, did not carry out any Valuation for one time settlement.

GENERAL DISCLOSURES

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

1. Details relating to deposits covered under Chapter V of the Act.

2. Issue of Equity Shares with differential rights as to dividend, voting or otherwise.

3. Issue of Shares (including Sweat Equity Shares) to employees of the Company under any scheme.

4. Buy Back of shares of the Company during the year under review.

5. The Managing Director of the Company does not receive any remuneration or commission from any of its Subsidiaries.

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

7. The Company is not required to submit Business Responsibility and Sustainability Report in pursuance of Regulation 34(2)(f) SEBI(LODR) Regulations, 2015.

STATUTORY DISCLOSURES

None of the Directors of your Company is disqualified as per provisions of Section 164(2) of the Companies Act, 2013. Your Directors have made necessary Disclosures, as required under various provisions of the Companies Act, 2013 and the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015.

ACKNOWLEDGEMENT

We would like to acknowledge with gratitude, the support and cooperation extended by Shareholders, Vendors, Media, Registrar and Share Transfer Agent, and Banks and look forward to their continued support. We appreciate continued co-operation received from various regulatory authorities including Department of Agriculture,

Department of Corporate Affairs, Registrar of Companies, Reserve Bank of India, Securities and Exchange Board of India, Stock Exchanges , Depositories, Central Government and respective State Governments. We also recognize and appreciate the sincere hard work, loyalty and efforts of the employees and look forward to their continued support.

For and on behalf of the Board,
Dr. Rahul Mirchandani
Place: Mumbai Chairman & Managing Director
Date: 13th August, 2024 DIN-00239057