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AksharChem (India) Ltd. Directors Report
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You can view full text of the latest Director's Report for the company.
Market Cap. (Rs.) 203.48 Cr. P/BV 0.73 Book Value (Rs.) 346.52
52 Week High/Low (Rs.) 366/202 FV/ML 10/1 P/E(X) 0.00
Bookclosure 27/09/2023 EPS (Rs.) 0.00 Div Yield (%) 0.20
Year End :2018-03 

The Directors are pleased to present their Twenty Ninth Annual Report together with the Audited Financial Statements of your Company for the financial year ended March 31, 2018.

FINANCIAL HIGHLIGHTS (Rs. in Lakhs)

Particulars

Current Year

Previous Year

2017-18

2016-17

Revenue from operations

26471.61

25026.25

Other Income

706.41

905.07

Total Income

27178.01

25931.32

Profit for the year before Finance Costs, Depreciation, Exceptional Items and

4873.75

8653.48

Tax Expenses

Less: Finance Costs

148.87

302.06

Profit for the year before Depreciation, Exceptional Items and Tax Expenses

4724.88

8351.42

Less: Depreciation

460.15

468.69

Profit for the year before Exceptional Items and Tax Expenses

4264.73

7882.74

Add/(Less): Exceptional Items

Nil

Nil

Profit for the year before Tax Expenses

4264.73

7882.74

Less: Current Tax

1138.31

2299.82

Less: Deferred Tax

(34.34)

291.19

Less: Adjustment of tax for earlier years (Net)

99.07

Nil

Net Profit for the year

3061.69

5291.73

Add: Balance brought forward from last year

10323.60

5199.40

Depreciation Adjustment

Nil

214.90

Deferred tax on Depreciation Adjustment

Nil

(74.37)

Surplus available for Appropriation

10385.29

10631.66

Appropriation

Transfer to General Reserve

Nil

Nil

Interim Dividend of HNil per Equity Share

(P. Y. H3.50 per Equity Share)

Nil

255.95

Tax on dividend

Nil

52.11

Balance carried over to Balance Sheet

10385.29

10323.60

Total

10385.29

10631.66

INDIAN ACCOUNTING STANDARDS (IND AS)

Your Company had adopted Ind AS with effect from April 1, 2017 pursuant to Ministry of Corporate Affairs notification dated February 16, 2015 notifying the Companies (Indian Accounting Standard) Rules, 2015. Your Company has published Ind AS Financials for the year ended March 31, 2018 along with comparable as on March 31, 2017 and Opening Statement of Assets and Liabilities as on April 1, 2016.

Ind AS has replaced the existing Indian GAAP prescribed under section 133 of the Companies Act, 2013, read with rule 7 of Companies (Accounts) Rules, 2014.

For AksharChem, Ind AS is applicable from April 1, 2017, with a transition date of April 1, 2016 and IGAAP as the previous GAAP.

The reconciliation and description of the effect of the transition from IGAAP to Ind AS have been provided in Note no. 52 of the financial statements for the year ended March 31, 2018.

DIVIDEND

After considering the profitability, cash flow and overall financial performance of the Company, your Board of Directors of the Company are pleased to recommend a final dividend of Rs.3.50 per equity share (35% on the face value of Rs.10/- each) for the year ended March 31, 2018 subject to approval of the members at the forthcoming Annual General Meeting.

During the previous financial year, the Company has paid an interim dividend of Rs.3.50 per equity share (35% on face value of Rs.10 each), and the total outgo was Rs.255.95 Lakhs towards dividend and Rs.52.11 Lakhs towards dividend distribution tax.

The final dividend, if declared as above would involve a total outgo of Rs.287.09 Lakhs towards dividend for the year and Rs.59.01 Lakhs towards dividend distribution tax.

TRANSFER TO RESERVES

Your Company has not transferred any amount to General Reserve (Also in Previous Year the Company has not transferred any amount to General Reserve). Your company has retained amount of Rs.13,385.29 Lakhs in the Statement of Profit and Loss.

STATE OF COMPANY'S AFFAIRS

The highlights of the Company's performance are as under:

General

FY18 was quite challenging year for the Company due to Increase Volatility in Crude Prices, Currency Depreciation and Volatility, Disruptions in the key inputs availability required for our Raw material because of on-going China environmental issues.

Your Company had put lot of efforts and continue to focus on delivering performance and the Company had performed well on the Volume front. Our Business continues to grow on Volume basis every quarter making it more sustainable. This gives confidence that the demand for our product is intact and we were able to get the business because of our best quality reliable products and over 2 decades of Relationship with the biggest dye stuff houses in the world.

Revenue of the Company keeps fluctuating due to high volatility in the Realisations, movement in Foreign Currency Rate etc.

Results of Operations

During the year under review, the turnover of the Company has increased from Rs.25026.25 Lakhs to Rs.26471.61 Lakhs. However, the Profit after Tax (PAT) has decreased from Rs.5291.73 Lakhs to Rs.3061.69 Lakhs.

Exports

The export turnover has increased from Rs.22132.39 Lakhs to Rs.22,542.22 Lakhs compared to previous year.

Capital Expenditure

During the year under review the Company has incurred capital expenditure of Rs.4,445.94 Lakhs.

ANNOUNCEMENT OF CAPEX PLAN

During the year under review the Company has announced the Capex plan of Rs.175 Crores is in Specialty Chemicals, Dyes & Intermediates and Organic Pigments.

INTELLECTUAL PROPORTY RIGHTS

During the year under review the Company has received the certificate for registration of trademark from the Registrar of Trade Marks, Trade Marks Registry, Gujarat for its logo i.e. AksharChem and its product Pigment Green 7, i.e. Asaflow.

CHANGE IN THE NATURE OF BUSINESS, IF ANY

There was no change in the nature of business of the Company during the financial year ended March 31, 2018.

MATERIAL CHANGES AND COMMITMENT, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAS OCCURRED BETWEEN THE END OF FINANCIAL YEAR TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT

There has been no material changes and commitment, affecting the financial position of the Company which has occurred between the end of financial year to which the financial statements relate and the date of the report.

CHANGE IN PERCENTAGE OF PROMOTERS HOLDING

During the year under review the share capital of the company has increased pursuant to Qualified Institutions Placement of 8,89,690 Equity Shares of Rs.10 each of the Company to Qualified Institutional Buyers and due to this the percentage of the holding of promoters of the Company has changed and reduced to 62.70% from 70.33%.

AUTHORISED SHARE CAPITAL

During the year under review, there is no change in the Authorized Share Capital of the Company.

SHARE CAPITAL

Pursuant to the resolution of the Board of Directors of the Company dated November 14, 2016 and July 13, 2017, the resolution of the QIP Committee dated July 14, 2017, the approval of the shareholders of the Company by way of a special resolution, through a postal ballot, the results of which were declared on January 4, 2017, your Company undertook a Qualified Institutions Placement of up to 8,89,690 Equity Shares of H10 each of the Company at an issue price of Rs.776 per equity share, and allotment of the said equity shares pursuant to the issue was made on July 20, 2017. Hence Paid up Share Capital of the Company has increased from Rs.731.29 Lakhs to Rs.820.25 Lakhs. The QIP issue proceeds aggregating to Rs.6903.99 lakhs will be utilized in accordance with the objects stated in the offer document. Pending utilization, the unutilised amount of issue proceeds have been invested in Mutual Funds.

Issue of Shares with differential rights

During the year under review, the Company has not issued equity shares with differential rights.

Issue of Sweat Equity Shares

During the year under review, the Company has not issued Sweat Equity Shares.

Issue of Employee Stock Options

During the year under review, the Company has not issued any shares under Employee Stock Option.

FINANCE AND INSURANCE

During the year under review the Company has repaid its outstanding long term secured loan and no outstanding short term working capital loan as on March 31, 2018, therefore as on March 31, 2018 your company is a zero debt company.

All insurable interests of the Company, including plant and machinery, building, stocks, vehicles, stores and spares have been adequately insured against various risks and perils.

PUBLIC DEPOSITS

The Company has not accepted deposit from public during the year and there was no deposit outstanding on March 31, 2018.

SUBSIDIARY COMPANIES

During the year under review the Company does not have any subsidiary.

CERTIFICATIONS

During the year under review the Company has upgraded its quality certification with new standard ISO 14001:2015 certification for environment management system of its plants of Vinyl Sulphone and CPC Green at Village Indrad and also have ISO 9001:2015 certification for quality management system.

EXPORT HOUSE STATUS

The Company has been awarded status of "One Star Export House" by Office of Additional Director General of Foreign Trade,

Ahmedabad, in accordance with provisions of Foreign Trade Policy 2015-2020. This status is valid till December 21, 2022.

AWARDS AND RECOGNITION

During the year under review the Company has received the following awards

- Best Manufacturer Exporter (Medium) from ECGC - Indian Exporters' Excellence Awards 2017

- SME Business Excellence Awards - Best Global Business (2017) from Dun & Bradstreet (RBL Bank)

- SME Business Excellence Awards - Chemicals & Pharmaceuticals (2017) from Dun & Bradstreet (RBL Bank)

- Trishul Award for the outstanding export performance in Panel I: Dyes and Dye Intermediates (SSM ME) for the year 2016-17 by CHEMEXCIL

- Third Award for self manufactured direct export of Dye Intermediates during the year 2015-16 from The Gujarat Dyestuffs Manufacturers Association (GDMA)

- Third Award for self manufactured direct export of Dyes during the year 2015-16 from The Gujarat Dyestuffs Manufacturers Association (GDMA)

- Trophy for self manufactured domestic sale of Dye Intermediates of more than Rs.5 Crores but less than Rs.25 Crores during the year 2015-16 from The Gujarat Dyestuffs Manufacturers Association (GDMA)

- Trophy for self manufactured domestic sale of Dyes between Rs.5 Crores to Rs.15 Crores during the year 2015-16 from The Gujarat Dyestuffs Manufacturers Association (GDMA)

CREDIT RATING

The CARE has reviewed the ratings on the bank facilities of the Company and reaffirmed the rating of the Company as "CARE A " (Single A Plus) assigned to the long term bank loans/facilities and "CARE A1 " (A One Plus) assigned to the short term bank loans/ facilities.

LISTING

The Equity Shares of the Company continue to be listed on BSE Limited (BSE), National Stock Exchange of India Limited (NSE) and Ahmedabad Stock Exchange Limited (ASE) and required Listing Fees for the year 2018-19 has been paid.

8,89,690 Equity Shares of Rs.10 each allotted to Qualified Institutional Buyers pursuant to Qualified Institutions Placement got listed on BSE Limited (BSE), National Stock Exchange of India Limited (NSE) and Ahmedabad Stock Exchange Limited (ASE) and the trading has commenced w.e.f. July 24, 2017 on BSE and NSE.

PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The particulars as prescribed under Sub-section (3)(m) of Section 134 of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, are enclosed as "Annexure A" to the Board's report.

RISK MANAGEMENT

We believe that risk management is an integral part of our operations. It is essential to identify and manage risks in order to reduce uncertainties and ensure continuity of business. We have a risk management framework and team that implements the processes specified in the framework. Further details are set out in the Management Discussion and Analysis Report forming part of the Directors' Report.

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

In accordance with the provisions of Section 135 of the Companies Act, 2013 and the rules framed there under, the Company has a Corporate Social Responsibility Committee of Directors comprising Mrs. Paru M. Jaykrishna - Chairperson, Mr. Gautam Jain and Mr. Kirankumar J. Mehta has inter alia also formulated a CSR Policy.

The role of the CSR Committee is to review the CSR policy, indicate activities to be undertaken by the Company towards CSR activities and formulate a transparent monitoring mechanism to ensure implementation of projects and activities undertaken by the Company towards CSR initiatives.

The Report on CSR Activities, which forms part of the Directors' Report, is annexed as "Annexure B" to this report.

POLICY ON APPOINTMENT AND REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONEL

The Board has on the recommendation of the Nomination and Remuneration Committee framed a policy on selection and appointment of Directors, Senior Management and their remuneration. The Nomination and Remuneration Policy is put up on the website of the Company at: www.aksharchemindia.com

The details of programmes for familiarisation of Independent Directors with the Company, their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company and related matters are put up on the website of the Company at : www.aksharchemindia.com

DISCLOSURES ON MANAGERIAL REMUNERATION

Details of Managerial Remuneration as required under Section 197 (12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given as per "Annexure C" to this report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Appointment of Director

Upon the recommendation of the Nomination and Remuneration Committee, Mr. Jigar M. Patel was appointed as an Additional Director (Non-Executive, Independent) w.e.f. December 11, 2017 and holds office upto the forthcoming AGM of the Company. Necessary Resolution for appointment of Mr. Jigar M. Patel as an Independent Director has been included in the Notice convening the AGM.

During the year, Mr. Munjal M. Jaykrishna has resigned as CFO of the Company and also his designation was changed from Joint Managing Director to Joint Managing Director & CEO with effect from February 14, 2018.

During the year, Mr. Sunil V. Rane was appointed as Chief Financial Officer of the Company with effect from February 14, 2018.

Resignation of Director

Mr. Param J. Shah (DIN: 03273769), has resigned as an Independent Director of the Company w.e.f. December 11, 2017. The Board places on record its sense of appreciation for the assistance and guidance provided by Mr. Param J. Shah during his tenure as an Independent Director of the Company.

Retirement by Rotation

In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr. Gokul M. Jaykrishna (DIN: 00671652) Director of the Company, retire by rotation at the ensuing Annual General Meeting and being eligible have offered himself for re-appointment. The Board recommends his reappointment.

Key Managerial Personnel

The following persons are the Key Managerial Personnel:

Mrs. Paru M. Jaykrishna, Chairperson & Managing Director

Mr. Munjal M. Jaykrishna, Joint Managing Director & CEO

Mr. Meet J. Joshi, Company Secretary

Mr. Sunil V. Rane, General Manager (Accounts) & CFO

Women Director

The Board of Directors of the Company includes a woman director viz. Mrs. Paru M. Jaykrishna. Accordingly, the Company is in compliance with the requirement of section 149(1) of the Companies Act, 2013 read with Rule 3 of the Companies (Appointment and Qualification of Directors) Rules, 2014.

Independent Directors

Mr. Gautam M. Jain, Dr. Pradeep Jha and Mr. Kirankumar J. Mehta Independent directors have been appointed for the term of five consecutive years from the date of Annual General Meeting of the Company held on September 25, 2014 till the date of 30th Annual General Meeting in the year 2019, and Mr. Jigar M. Patel was appointed as independent director of the Company for the period of five years w.e.f. December 11, 2017. Hence no Independent Directors of the Company are liable to retire during the year under review.

Declaration by Independent Directors

The Company has received necessary declaration from each independent director under Section 149(7) of the Companies Act, 2013 that he/she meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 and Regulation 16 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

BOARD EVALUATION

The Board of Directors of the Company is committed to assessing its own performance as a Board in order to identify its strengths and areas in which it may improve its functioning. To that end, the Nomination and Remuneration Committee has established processes for performance evaluation of Independent Directors, the Board and Committees of the Board.

Pursuant to the provisions of the Act and the Listing Regulations, the Board has carried out an annual evaluation of its own performance, performance of its Committees as well as the Directors individually. Details of the evaluation mechanism are provided in the Corporate Governance Report.

PARTICULARS OF EMPLOYEES

The statement containing particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided as "Annexure D" to this report.

NUMBER OF MEETINGS OF THE BOARD

During the financial year 2017-2018, the Board of Directors of the Company, met 9 (Nine) times on May 27, 2017, July 5, 2017, July 13, 2017, July 27, 2017, September 14, 2017, November 13, 2017, December 11, 2017, February 14, 2018, and March 20, 2018.

INDEPENDENT DIRECTORS' MEETING

A separate Meeting of the Independent Directors of the Company was also held on March 20, 2018, whereat the prescribed items enumerated under Schedule IV to the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, were discussed.

AUDIT COMMITTEE

The composition of the Audit committee, as per the applicable provisions of the Act and Rules, are as follows:

Mr. Kirankumar J. Mehta - Chairman

Dr. Pradeep Jha - Member

Mr. Jigar M. Patel - Member

A detailed note on the Board and its committees is provided under the Corporate Governance Report section in this Annual Report.

VIGIL MECHANISM/ WHISTLE BLOWER POLICY

Your Company is committed to highest standards of ethical, moral and legal business conduct. Accordingly, the Board of Directors have adopted the vigil mechanism/whistle blower policy which is in compliance with the provisions of Section 177(10) of the Companies Act, 2013 and Regulation 22 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Employees can raise concerns regarding any discrimination, harassment, victimization, any other unfair practice being adopted against them or any instances of fraud by or against your Company. The Audit Committee oversees the vigil mechanism.

INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY

The Board has adopted policies and procedures to ensure the orderly and efficient conduct of its business, including but not limited to the prevention and detection of frauds and errors, the safeguarding of its assets, the accuracy and completeness of the accounting records, adherence to the company's policies, periodical review of financial performance of Company and review of the accounts every quarter by Statutory Auditors.

STATUTORY AUDITORS

The Statutory Auditors M/s. Mahendra N. Shah & Co., Chartered Accountants (Firm Registration No. 105775W), Ahmedabad were appointed as the Statutory Auditors of the Company for a term of five years up to the conclusion of the 33rd Annual General Meeting of the Company, if so required under the Law.

The Ministry of Corporate Affairs have, vide its Commencement Notification dated May 7, 2018, inter alia, notified the commencement of section 40 of the Companies (Amendment) Act, 2017, which omitted the proviso to sub-section (1) of section 139 of the Companies Act, 2013, mandating the requirement of annual ratification for Auditors appointment by the Members at every Annual General Meeting. Accordingly, the Board has decided, to discontinue the practice of obtaining annual ratification of the shareholders for appointment of Statutory Auditors, in view of the exemption provision in the resolution passed by the members in the 28th Annual General Meeting and the removal of the provision of the law which mandated the requirement.

M/s. Mahendra N. Shah & Co., Chartered Accountants has expressed their willingness to be appointed as Statutory Auditors of the Company. They further confirmed that it said appointment, if made, would be within prescribed limits under Section 141 of the Companies Act, 2013 and that they are not disqualified for appointment.

Pursuant to Section 139 and 141 of the Companies Act, 2013 and relevant Rules prescribed there under, the Company has received certificate dated May 10, 2018 from the Auditors to the effect, inter-alia, that their appointment would be within the limits laid down by the Act, shall be as per the term provided under the Act, that they are not disqualified for such appointment under the provisions of applicable laws and also that there are no pending proceedings against them or any of their partners with respect to professional matters of conduct.

The Auditors have also confirmed that they have subjected themselves to the peer review process of Institute of Chartered Accountants of India (ICAI) and hold a valid certificate issued by the Peer Review Board of the ICAI.

M/s. Mahendra N. Shah & Co., Chartered Accountants, have submitted their Report on the Financial Statements of the Company for the Financial Year 2017-18, which forms part of the Annual Report 2017-18. There are no observations (including any qualification, reservation, adverse remark or disclaimer) of the Auditors in their Audit Reports that may call for any explanation from the Directors.

SECRETARIAL AUDITORS

Mr. Bipin L. Makawana, Practicing Company Secretary (Membership No. A15650), was appointed to conduct the secretarial audit of the Company for the financial year 2017-18, as required under Section 204 of the Companies Act, 2013 and Rules there under. Secretarial Audit Report for F.Y. 2017-18 forms part of the Annual Report as "Annexure E" to the Board's report.

The Secretarial Auditor has not made any adverse comments or given any qualification, reservation or adverse remarks or disclaimer in their Audit Report.

cost auditor

During the year under review, the provision regarding Cost Audit is not applicable to the Company.

CASH FLOW STATEMENT

As required under Regulation 34(2) (c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, a Cash Flow Statement prepared in accordance with the Indian Accounting Standard 7 (IND AS-7) is attached to the Financial Statement.

EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in Form MGT-9 is appended as "Annexure F" to this report.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE

Particulars of loans, guarantees or investments covered under Section 186 of the Companies Act, 2013 forms part of the notes to the financial statements provided in this Annual Report.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS ENTERED INTO WITH RELATED PARTIES

All Related Party transactions that were entered into during the year under review were in ordinary course of business and were on arm's length basis. There are no materially significant related party transactions made by the Company which may have potential conflict of interest.

Further, there were no material related party transactions which are not in ordinary course of business and are not on arm's length basis and hence there are no information required to be provided under Section 134(3)(h) of the Companies Act, 2013 read with rule 8(2) of the Companies (Accounts) Rules, 2014 in form AOC-2 and under Section 188(2) of the Companies Act, 2013.

SIGNIFICANT OR MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY AND / OR THE COMPANY'S OPERATIONS IN FUTURE.

There were no significant or material orders passed by the regulators or Courts or Tribunals impacting the going concern status of the Company and / or the Company's operations in future.

MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT

In terms of Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Management Discussion and Analysis Report is appended as "Annexure G" to this Report.

CORPORATE GOVERNANCE

Your Company is committed to maintain the highest standards of Corporate Governance. A separate Corporate Governance Report as stipulated under Chapter IV read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is furnished as "Annexure H" to this Report together with certificate from Mr. Bipin L. Makawana, Practicing Company Secretary (Membership No. A15650), confirming compliance with the conditions of Corporate Governance.

DIRECTORS' RESPONSIBILITY STATEMENT

In accordance with the provisions of Section 134(3)(c) of the Companies Act, 2013 and based on the information provided by the management, your directors state that:

(a) in the preparation of the annual accounts for the year ended March 31, 2018, the applicable accounting standards read with requirements set out under Schedule III to the Act, have been followed and there are no material departures from the same;

(b) the Directors 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 affairs of the Company as at March 31, 2018 and of the profit of the Company for the year ended on that date;

(c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(d) the Directors have prepared the annual accounts on a 'going concern' basis;

(e) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and

(f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SUB-SECTION (12) OF SECTION 143 OTHER THAN THOSE WHICH ARE REPORTABLE TO THE CENTRAL GOVERNMENT

During the year under review there were no frauds reported by Auditors under section 143 (12).

DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Company is committed to provide a safe and conducive work environment to its employees. During the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD AND GENERAL MEETINGS

The Company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India on Meetings of the Board of Directors and General Meetings.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Our human capital contributes significantly to our business operations and we believe that employees are our valuable asset and core strength. To further support that strength, we have identified skill set building as one of key business drivers, and have focused our employee initiatives in that direction. We periodically organize various trainings for our employees to enhance their knowledge and skills. Our learning and development training programs are governed by quality business management principles adopted by us, which include a principle of in-depth identification of development needs and comprehensive structure of learning and development.

We believe that our human resources initiatives led to positive trends in the production, quality, cost, delivery, safety and morale parameters in manufacturing, a higher level of engagement in workers, better working relationships between sales managers and reportees. We also engage contract labour depending on our requirements from time to time, particularly at our manufacturing facilities. The attrition rate of the Company is very low as compare to other companies in the concerned sector. Industrial relations remained harmonious with a focus on productivity, quality and safety throughout the year. Your directors wish to place on record their sincere appreciation for the devoted services of all the employees and workers of the Company.

ENVIRONMENT SAFETY AND HEALTH

Your Company continues to exercise persistent and meticulous efforts towards greener earth and environment conservation. The Company preserves in its efforts to teach safe and environmentally accountable behavior in every employee, as well as its vendors. The Company is committed towards safety, not only of its own men and plant, but also of the society at large.

Solid waste generated at the Works, after treatment of its liquid effluent is shifted to a Gujarat Pollution Control Board (GPCB) approved site.

The Company continues to demonstrate its commitment to a clean and safe environment. The State of the art effluent treatment plant continues to run satisfactorily, so that the treated waste water discharged is well within the stipulated norms set by GPCB.

Your Company has ISO 14001:2015 and ISO 9001:2015 certification for its unit.

APPRECIATION AND ACKNOWLEDGEMENTS

Your Directors are grateful and pleased to place on record their thanks to Government of India, Government of Gujarat, Electricity supply companies, and Bankers for their excellent support, guidance and continued cooperation.

The Company is thankful to the shareholders for reposing trust in the Company and their unflinching enthusiasm and patronage.

CAUTIONARY STATEMENT

The Board's Report and Management Discussion & Analysis may contain certain statements describing the Company's objectives, expectations or forecasts that appear to be forward-looking within the meaning of applicable securities laws and regulations while actual outcomes may differ materially from what is expressed herein. The Company is not obliged to update any such forward-looking statement. Some important factors that could influence the Company's operations comprise of economic developments, pricing, and demand and supply conditions in global and domestic markets, changes in government regulations, tax laws, litigation and industrial relations.

For and on behalf of Board of Directors

Place : Indrad, Mehsana Paru M. Jaykrishna

Date : August 08, 2018 Chairperson & Mg. Director

Registered Office: DIN: 00671721

166-169, Village Indrad,

Kadi - Kalol Road, Dist : Mehsana

Gujarat - 382 715 (India)

CIN: L24110GJ1989PLC012441

Phone : 91 2764 233007

Fax: 91 79 2764 233550

Website : www.aksharchemindia.com

Email id : cs@aksharchemindia.com


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