• OPEN AN ACCOUNT
Indian Indices
Nifty
18,487.75 -46.65
(-0.25%)
Sensex
62,428.54 -193.70
( -0.31%)
Bank Nifty
43,790.20 -337.95
( -0.77%)
Nifty IT
29,446.25 126.50
( 0.43%)
Global Indices
Nasdaq
12,935.29 -82.14
(-0.63%)
Dow Jones
32,908.27 -134.51
(-0.41%)
Hang Seng
18,216.91 -17.36
(-0.10%)
Nikkei 225
31,148.01 260.13
(0.84%)
Forex
USD-INR
82.68 0.09
(0.11%)
EUR-INR
88.62 0.09
(0.10%)
GBP-INR
102.43 0.42
(0.41%)
JPY-INR
0.59 0.00
(0.37%)

EQUITY - MARKET SCREENER

Agarwal Industrial Corporation Ltd
Industry :  Petrochemicals
BSE Code
ISIN Demat
Book Value()
531921
INE204E01012
199.0319485
NSE Symbol
P/E(TTM)
Mar.Cap( Cr.)
AGARIND
18.23
899.71
EPS(TTM)
Face Value()
Div & Yield %
32.99
10
0
 

As on: Jun 01, 2023 11:57 PM

TO THE MEMBERS

The Directors have pleasure in presenting the Twenty Eighth Annual Report of the Company together with its Audited Statement of Profit and Loss for the Financial Year ended March 31, 2022 and the Balance Sheet as on that date:

FINANCIAL RESULTS

(Rs in Lakhs)

Particulars Standalone
Financial Year Ended on 2021-22 Audited 2020-21 Audited
Total Revenue 141486.17 83895.26
Profit before Depreciation, Finance Costs and Tax 7717.17 5120.00
Less: Depreciation 1154.04 1179.66
Less: Finance Costs 1350.15 976.47
Profit before Tax 5212.97 2963.87
Less: Provision for Tax
(a) Current Tax 1381.00 811.00
(b) Deferred Tax (Assets)/ Liability -24.11 -49.33
(c) Short Provision for Tax for earlier years - -
Profit after Tax 3856.09 2155.20
Other Comprehensive (Income)/ Loss 1.30 7.55
Total Comprehensive Income For The Year 3857.39 2162.75
Dividend Paid 224.38 153.88
Tax on Dividend Paid - -
Balance carried to Other Equity 22427.45 2008.87

RESULTS OF OPERATIONS (Standalone)

The total Revenue of the Company for the Financial Year ended March 31,2022, is Rs 141486.17 Lakhs as compared previous year?s total Revenue of Rs 83895.26 Lakhs thus indicating an increase of about 69% over the previous year. Further, Profit before Tax and Profit after Tax were Rs 5212.97 Lakhs and Rs 3856.09 Lakhs respectively during the year under review as against Rs 2963.87 Lakhs and Rs 2155.20 Lakhs in the corresponding previous year, reporting an increase of about 76% and 66% over the previous financial year.

STATE OF AFFAIRS & BUSINESS OVERVIEW

The Company is a leading manufacturers and importers of Bitumen & Bituminous products and our plants are located at Belgaum, Hyderabad, Taloja, Baroda and Cochin*.We manufacture and trade quality products like Paving grade Bitumen. Industrial Grade Bitumen, Bitumen Emulsions, Modified Bitumen, Bitumen Coat, Bitumen Paints, Bitumen Insulation material etc. which are known for their quality and standard. Our profound background of being in the logistics business (transportation of Bitumen & LPG) has been a key factor to foray into this segment. Your Company has excellent professional relations with all major road contractors in India due to Company?s ethical, transparent and good governance policies. (* through its wholly owned subsidiary)

Additional Manufacturing and Storage Facilities at Company?s newly acquired Industrial Plot at Taloja, Raigad, Maharashtra

Your Board is pleased to inform that additional manufacturing and storage facilities have been installed at newly acquired Industrial Plot at Taloja, Raigad, Maharashtra , adjacent to the existing Plant which would gradually enhance its top and bottom line in due course. The entire capex was sourced from Company?s internal accruals

Manufacturing Facilities at Guwahati

Your Company?s on going installation of manufacturing and storage facilities of Bitumen and other value added Bituminous products at Guwahati, Assam is in full swing and would soon start full fledged operations to expand and develop Bitumen trade in Eastern states as Bitumen is extensively used in infrastructure projects more specifically in road construction projects initiated by the State Government

BULK BITUMEN STORAGE FACILITIES

Your Company has excellent Bulk Bitumen Storage facilities to effectively handle and market bitumen imports at Karwar, Belgaum, Hyderabad, Haldia, West Bengal Dighi, Maharashtra, Hazira, Gujarat and Mangalore.

BULK LPG TRANSPOTATION

We are amongst the leading transporters of LPG in India, which is the most widely used fuel for domestic as well as industrial purposes. While we already own a large fleet of tankers, we also hire tankers on long term contracts to cater to the demand from customers LPG is mainly sourced from domestic refineries and via bulk imports. Bulk LPG is mainly transported from the source to the industrial user or to their bottling plants through specially designed tankers LPG, being highly inflammable, require tankers that take care of all safety aspects while loading, transporting and unloading. Most of the LPG tankers are under contract with major oil companies like HPCL, BPCL and IOCL.

POWER GENERATION THROUGH WIND MILLS Wind Mills

The Company has diversified into Non-Conventional energy generation by installing wind mills at Rajasthan and Maharashtra, keeping in view of the likely shortage of energy resources in future. Your Company has one Windmill at Dhulia, Maharashtra and one in Jaisalmer, Rajasthan.

AUTHORIZED SERVICE CENTRE OF ASHOK LEYLAND

We own a large fleet of tankers which necessarily calls for regular periodic checks and maintenance. As also, our entire fleet of tankers comes from the Ashok Leyland stable. Both these factors influenced our decision to set up an authorized service center, for Ashok Leyland vehicles, within the company. Not only does this ensure a timely turnaround of the fleet serviced but is an economically beneficial proposition for the company. We have our own workshop and maintenance facilities at strategic locations like Mumbai, Baroda and Jodhpur.

SHARE CAPITAL

During the year under review, M/s Agarwal Translink Private Limited, a group company, became Wholly Owned Subsidiary of the Company as the Company acquired entire equity holding of the said group Company and in lieu of that, allotted 11,88,042 Equity Shares to the erstwhile shareholders of M/s Agarwal Translink Private Limited in accordance with Chapter V of the SEBI ( ICDR) Regulations , 2009 as amended and the allotted shares are listed.

Further, as reported in the previous Annual Report, during the year under review, the Company had allotted 35,11,000 fully convertible Warrants to Promoters? Group and also to the Public at an Issue Price of Rs 105.20 per Warrant in accordance with Chapter V of the SEBI( ICDR) Regulations , 2009 as amended, out of which 30,11,000 Warrants have already been converted into equal number of Equity Shares of the Company. All the allotted Equity Shares are listed on BSE & NSE.

For Issued and Paid up Share Capital, post financial year ended March 31,2022, please refer to "SHARE CAPITAL" under Management Discussion and Analysis - Annexure -V forming part of this report.

DIVIDEND

Your Directors have recommended a dividend of Rs 2.00 per equity share of the face value of Rs 10/- each fully paid up for the financial year ended March 31,2022. The dividend distribution is subject to approval of the members of the Company at the ensuing Annual General Meeting.

Pursuant to the amendments introduced by the Finance Act, 2020 the Company will be required to withhold taxes at the prescribed rates on the dividend paid to its shareholders w.e.f. 1st April 2020. No tax will be deducted on payment of dividend to the resident individual shareholders if the total dividend paid does not exceed Rs 5,000/-. The withholding tax rate would vary depending on the residential status of the shareholder and documents registered with the Company.

AMOUNT TO BE CARRIED TO OTHER EQUITY

The Company has transferred Rs 22427.44 Lakhs to the Other Equity for the F.Y. March 31,2022 after appropriating Rs 224.38 Lakhs towards dividend paid for the F.Y. ended March 31,2021.

CAPITAL EXPENDITURE

As at March 31,2022, the Capital Expenditure during the year under review amounted to Rs 836.59 Lakhs including Work in Progress (WIP) amounted to Rs 210.61 Lakhs.

CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Financial Results for the F.Y. ended on March 31,2022 have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) (Amendments) Rules, 2016.

FOR DETAILS PLEASE REFER TO "CONSOLIDATED FINANCIAL STATEMENTS" UNDER DISCUSSION & ANALYSIS - ANNEXURE -V FORMING PART OF THIS REPORT.

SUBSIDIARIES, JOINTVENTURES AND ASSOCIATE COMPANIES

Bituminex Cochin Pvt Ltd (BCPL) , Agarwal Translink Private Limted and AICL OVERSEAS FZ-LLC in UAE are all Wholly Owned Subsidiary (W.O.S) Companies of the Company and are doing their respective business steadily.

Bituminex Cochin Pvt Ltd (BCPL), Kochi is in the similar business of manufacturing and trading of bitumen and bituminous products as the parent company whereas Agarwal Translink Private Limited is in Logistics business of Specialized Bitumen and LPG Tankers.

The Company?s Wholly Owned Subsidiary (W.O.S) in UAE under the name "AICL OVERSEAS" in Ras AI Khaimah Economic Zone (RAKEZ) in United Arab Emirates (UAE) for undertaking various ship/vessel /ocean related activities has been reporting good financial performance since its inception and continuous to grow and develop strategically. Our above overseas WOS owns fleet of 6 ( Six) large Vessels having total capacity of 38,500 MT which are used in importing raw bitumen from oil producing countries. The economies we achieve with our own fleet of marine vessels and road transport vehicles enable your Company to outbid competitors, secure tenders and ensure high standards of supply and services to its valued customers.

Pursuant to the provisions of Section 129(3) of the Act, a statement containing salient features of the financial Statements of the Company?s Subsidiaries in Form AOC-1 is attached to the financial statements of the Company. Pursuant to the provisions of Section 136 of the Act, the financial statements of the Company, consolidated financial statements along with relevant documents and separate audited accounts in respect of subsidiary are available on the website of the Company: www.aicltd.in. There are no joint ventures or associate companies as defined under the Companies Act, 2013 and Rules made thereunder, as amended.

ISSUANCE AND ALLOTMENT OF WARRANTS

During the financial year ended on March 31, 2022, the Company has issued and allotted 35,11,000 convertible warrants, each carrying a right to subscribe to one Equity Share per Warrant, at a price of Rs 105.20 per Warrant aggregating to 36,93,57,200 (Rupees Thirty Six Crore Ninety Three Lakhs Fifty Seven Thousand and Two Hundred Only), in accordance with the Board Resolution dated April 09, 2021 passed by the Board of Directors of the Company and with the Shareholders? approval vide Special Resolution dated February 10, 2021 and in accordance with all related SEBI regulations / provisions of the Companies Act, 2013 and Rules made thereunder, as amended / all other regulatory compliances as applicable in this regard.

Further, the Company has, converted above Warrants as follows:

(a) 4,00,000 Warrants into 4,00,000 Equity Shares of the Face Value of Rs 10/- each at a premium of Rs 95.20/- per share , out of total 18,00,000 Warrants allotted under the Public Category in the Meeting of Board of Directors held on June 15, 2021.These allotted Equity Shares have been listed on BSE and NSE.

(b) 2,19,000 Warrants into 2,19,000 Equity Shares of the Face Value of Rs 10/- each at a premium of Rs 95.20/- per share , out of total 17,11,000 Warrants allotted to Promoters / Promoters Group in the Meeting of Board of Directors held on August 13, 2021. These allotted Equity Shares have been listed on BSE and NSE.

(c) 4,00,000 Warrants into 4,00,000 Equity Shares of the Face Value of Rs 10/- each at a premium of Rs 95.20/- per share, out of total 18,00,000 Warrants allotted under the Public Category in the Meeting of Board of Directors held on August 13, 2021. These allotted Equity Shares have been listed on BSE and NSE.

(d) 2,43,000 Warrants into 2,43,000 Equity Shares of the Face Value of Rs 10/- each at a premium of Rs 95.20/- per share , out of total 17,11,000 Warrants allotted to Promoters / Promoters Group in the Meeting of Board of Directors held on October 20, 2021. These allotted Equity Shares have been listed on BSE and NSE.

(e) 5,00,000 Warrants into 5,00,000 Equity Shares of the Face Value of Rs 10/- each at a premium of Rs 95.20/- per share, out of total 18,00,000 Warrants allotted under the Public Category in the Meeting of Board of Directors held on October 20, 2021. These allotted Equity Shares have been listed on BSE and NSE.

(f) 12,49,000 Warrants into 12,49,000 Equity Shares of the Face Value of Rs 10/- each at a premium of Rs 95.20/- per share , out of total 17,11,000 Warrants allotted to Promoters / Promoters Group in the Meeting of Board of Directors held on June 09, 2022. These allotted Equity Shares have been listed on BSE and NSE.

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY, BETWEEN THE END OF THE FINANCIAL YEAR AND THE DATE OF THE REPORT

1. COVID-19 Pandemic

There is no material adverse impact of COVID - 19 pandemic on the Company and its operations / profitability during the Financial Year ended March 31,2022 and post financial year period till the date of this Annual Report.

2. During the period under review, the Company received two Property Tax related Bills from Panvel Municipal Corporation with regard to its two Industrial Plots No.36 & 37 situated at MIDC Industrial Estate, at Taloja, Dist. Raigad, amounting to Rs 2,39,225/- & Rs 12,31,501/- respectively, calculated from retrospective years without giving adequate information and details. The similar Bills were issued to other units also. Accordingly, in this regard, a Civil Writ Petition has been filed by Taloja Manufacturers? Association (TMA) and its Members (our Company being a Member of TMA) jointly in the H?ble High Court of Judicature at Bombay against the State of Maharashtra & Others on 16/04/2022, which is pending for disposal

3. Previous Matters:

Since the previous Directors? Report, there has been no material changes and commitments affecting the financial position of the Company between the end of the financial year and the date of this Report except as stated hereinafter.

(i) It may be recalled that in the previous Report, we had mentioned that Panvel Municipal Corporation (PMC) had raised LBT demand on erstwhile merged Company, Agarwal Petrochem Private Limited for the period Jan-Jun 2017, which in line with others Petitioners, had filed a Writ Petition in the Hon?ble Bombay High Court, which as an interim relief has directed the PMC not to initiate any coercive action against the petitioners till the further orders. Accordingly, the actual financial impact of such demand are not known due to pending assessments and the status of the case remains the same. Till date, the matter is still pending for adjudication in the said H?ble Bombay High Court .

(ii) The Asst. Commissioner of Customs, Kakinada had filed three Appeals with The Commissioner (Appeals), Customs, Central Excise and Service Tax, Guntur, after the Review Orders were passed by the Commissioner of Customs (Preventive), to set aside three Orders-in-Original, two dated 08.11.2017 and one dated 30.11.2017 respectively, passed by the Asst. Commissioner of Customs, Kakinada sanctioning thereby Special Additional Duty refunds aggregating to Rs 86.55 Lakhs to the Company. The Commissioner (Appeals), Customs, Central Excise and Service Tax, Guntur vide its three Orders dated 29.06.2018, set aside all three Orders-in-Original passed by the Asst. Commissioner of Customs, Kakinada as stated herein above and allowed all three Applications filed by the Asst. Commissioner of Customs, Kakinada. In this regard, against the aforesaid three Orders passed by the Commissioner (Appeals), Customs, Central Excise and Service Tax, Guntur, your Company has already filed respective Appeals with the Customs, Excise & Service Tax Appellate Tribunal at Hyderabad and the matter is still pending.

INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY

The Company has in place adequate internal financial controls commensurate with the size, scale and nature of its operations. The Internal Auditor monitors and evaluates the efficacy and adequacy of internal control systems in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company.

VIGIL MECHANISM / WHISTLE BLOWER POLICY

The Company has adopted a Whistle Blower Policy to provide a mechanism for the Directors and employees to report genuine concerns about any unethical behavior, actual or suspected fraud or violation of the Company?s Code of Conduct. The provisions of this policy are in line with the provisions of Section 177 (9) of the Act and as per Regulation 22(1) of the SEBI (Listing Obligation and Disclosure Requirements), Regulations 2015. The Whistle Blower Policy can be accessed on the Company?s website - www.aicltd.in.

AUDIT COMMITTEE

The Company has in place an Audit Committee in terms of the requirements of the Companies Act, 2013 read with the rules made thereunder and Regulation 18 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 as amended. The details relating to the same are given in Report on Corporate Governance forming part of this Board Report.

Constitution of the Audit Committee

Mr. Alok Bharara - Independent Director - Chairman

Mr. Rajkumar Mehta - Independent Director

Mr. Mahendra Agarwal - Non Independent - Non Executive Director.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013, ("THE ACT")

Particulars of loans given, investments made and securities provided are mentioned in the financial statement under Notes 45 respectively of the said statement. Your Company has not provided any guarantee or given security in connection with loan to any other body corporate or person.

RISK MANAGEMENT

The Company has constituted a Risk Management Committee, details of which are set out in the Corporate Governance Report. The Company has adopted a Risk Management Policy, pursuant to the provisions of Section 134 of the Act, which has a Risk Management framework to identify and evaluate business risks and opportunities. This framework seeks to create transparency, minimize adverse impact on business objective and enhance the Company?s competitive advantage. The risk framework defines the risk management approach across the enterprise at various levels including documentation and reporting.

DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)

In terms of Section 149 of the Act and pursuant to the Regulation 17 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, as amended, the Board of the Company has optimum combination of Executive, Non-Executive and Independent Directors. The Board also comprises of an Independent Woman Director. For details, please refer to Corporate Governance Report attached hereinafter.

Re-appointments of Mr. Jaiprakash Agarwal, Mr. Lalit Agarwal and Mr. Ramchandra Agarwal:

Mr. Jaiprakash Agarwal, Mr. Lalit Agarwal and Mr. Ramchandra Agarwal, Promoter Directors and were re-appointed as the Managing Director and Whole Time Directors of the Company for a period of 3 years with effect from April 01, 2022 to March 31,2025 by the members of the Company in the Annual General Meeting of the Company held on September 30, 2021.

Independent Directors:

Mr. Rajkumar Mehta, Mr. Alok Bharara, Mr. Harikrishna Patni & Mrs. Priti Lodha were appointed as Independent Directors by the Members of the Company for the second term of 5 years w.e.f. September 30, 2019.

Ms. Dipali Pitale is appointed as Company Secretary and Compliance Officer of the Company w.e.f March 10, 2021.

In terms of Section 203 of the Act the following were designated as KMP of your Company by the Board:

Mr. Jaiprakash Agarwal - Managing Director Mr. Lalit Agarwal - Whole Time Director Mr. Ramchandra Agarwal - Whole Time Director Mr. Vipin Agarwal - Chief Financial Officer Ms. Dipali Pitale - Company Secretary

DECLARATION OF INDEPENDENCE BY INDEPENDENT DIRECTORS

The Company has received declarations from all the Independent Directors confirming that they meet the criteria of independence as stipulated under Section 149(7) of the Companies Act, 2013 and as per Regulation 17 SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

BOARD MEETINGS

During the year under review, 8 (Eight) Board Meetings (including Exclusive Meeting of Independent Directors) were held and the intervening gap between the meetings did not exceed the period prescribed under the Act, the details of which are given in the Corporate Governance Report.

BOARD EFFECTIVENESS

The Company once again emphasize that it has adopted the Governance guidelines which, inter alia, cover aspects related to composition and role of the Board, Directors, Board diversity, definition of independence and mandates of Board Committees. It also covers aspects relating to nomination, appointment, induction and development of Directors, Directors remuneration, Code of Conduct and Board Effectiveness Review.

A. Board Evaluation

During the year under review, the Board of Directors has carried out an annual evaluation of its own performance, Board Committees and individual Directors pursuant to the provisions of the Act and the corporate governance requirement as prescribed by Securities Exchange Board of India (SEBI) under Regulation 17(10) of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

The performance of the Board was evaluated by the Board after seeking inputs from the Directors on the basis of the criteria such as the Board Composition and structures, effectiveness of board processes, information and functioning, etc. The Board evaluates performance of the committees after seeking inputs from the committee members on the basis of the criteria such as the composition of committees, effectiveness of committee meetings, etc. The Board and the Nomination and Remuneration Committee (NRC) reviewed the performance of the individual Directors on the basis of the criteria such as the contribution of the individual Director to the Board and Committee Meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc.

In a separate meeting of Independent Directors, performance of Non-Independent Directors, performance of the board as a whole was evaluated, taking into account the views of the Executive Directors and Non-Executive Directors. The same was discussed in the Board meeting that followed the meeting of the Independent Directors, at which the performance of the Board, its committees and individual Directors was also discussed.

B. Appointment of Directors and Criteria for determining qualifications, positive attributes, independence of a Director

As per Company?s Policy, the NRC is responsible for developing competency requirements for the Board based on the industry and strategy of the Company. The NRC reviews and meets potential candidates, prior to recommending their nomination to the Board. At the time of appointment, specific requirements for the position, including expert knowledge expected, is communicated to the appointee.

The NRC has formulated the criteria for determining qualifications, positive attributes and independence of Directors in terms of provisions of Section 178 (3) of the Act and Regulation 19 of SEBI (Listing Obligation and Disclosure Requirements), Regulations 2015. Independence: A Director will be considered as an ‘Independent Director? if he/ she meets with the criteria for ‘Independence? as laid down in the Act and Regulation 16(1)(b) SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

Competency: A transparent Board nomination process is in place that encourages diversity of thought, experience, knowledge, perspective, age and gender. It is ensured that the Board has a mix of members with different educational qualifications, knowledge and with adequate experience in banking and finance, accounting and taxation, economics, legal and regulatory matters.

Additional Positive Attributes:

• The Directors should not have any other pecuniary relationship with the Company, its subsidiaries, associates or joint ventures and the Company?s promoters, except as provided under law.

• The Directors should maintain an arm?s length relationship between themselves and the employees of the Company, as also with the Directors and employees of its subsidiaries, associates, joint ventures, promoters and stakeholders for whom the relationship with these entities is material.

• The Directors should not be the subject of proved allegations of illegal or unethical behavior, in their Private or professional lives.

• The Directors should have the ability to devote sufficient time to the affairs of the Company.

C. Remuneration Policy

The Company had adopted a Remuneration Policy, subject to review from time to time for the Directors, KMP and other employees, pursuant to the provisions of the Companies Act 2013 and Regulation 19(4) read with Part B of Schedule II of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015. The key principles governing the Company?s Remuneration Policy are as follows:

Remuneration for Independent Directors and Non-Independent Non-Executive Directors

• Independent Directors (ID) and Non-Independent Non-Executive Directors (NINED) may be paid sitting fees for attending the meetings of the Board and of Committees of which they may be members.

(Presently, all Independent Directors and one Non-Independent Non-Executive Director have voluntarily foregone sitting fee for attending Board and Committee Meetings.)

• Overall remuneration should be reasonable and sufficient to attract, retain and motivate Directors aligned to the requirements of the Company, taking into consideration the challenges faced by the Company and its future growth imperatives.

• Remuneration paid should be reflective of the size of the Company, complexity of the sector/ industry/ Company?s operations and the Company?s capacity to pay the remuneration and be consistent with recognized best practices.

• The remuneration payable to Directors shall be inclusive of any remuneration payable for services rendered in any other capacity, unless the services rendered are of a professional nature and the NRC is of the opinion that the Director possesses requisite qualification for the practice of the profession. It may be noted that the Independent Directors of the Company have voluntarily foregone remuneration of any type and kind including sitting fee and accordingly no payment is made to them in this regard. Remuneration for Managing Director (MD)/ Executive Directors (ED)/ Key Managerial Personnel (KMP)/ rest of the Employees is paid.

• The extent of overall remuneration should be sufficient to attract and retain talented and qualified individuals suitable for every role. Hence remuneration should be market competitive, driven by the role played by the individual, reflective of the size of the Company, complexity of the sector/ industry/ Company?s operations and the Company?s capacity to pay, consistent with recognized best practices and aligned to any regulatory requirements.

• Basic/ fixed salary is provided to all employees to ensure that there is a steady income in line with their skills and experience. It is affirmed that the remuneration paid to Managing Director, Whole Time Directors and KMP is as per the Remuneration Policy of the Company. Presently no remuneration or sitting fee, of whatsoever kind and nature, is paid to any Independent Director.

PROTECTION OF WOMEN AT WORKPLACE

The Company has formulated a policy on ‘Protection of Women?s Rights at Workplace? as per the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013. This has been widely disseminated. There were no cases of sexual harassment received by the Company during the F.Y. 2021-22 & between the end of the financial year and the date of this Report.

Mrs. Harshada Patil is the External Member of Internal Complaints Committee.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS

During the year under review, no significant material orders were passed by the regulators or courts or tribunals impacting the going concern status and the Company?s operations.

CHANGE IN THE NATURE OF BUSINESS, IF ANY

There was no change in the nature of business of the Company during the year under review.

COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD AND ANNUAL GENERAL MEETINGS

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

STATUTORY AUDITORS

At the ensuing Twenty Eighth Annual General Meeting of the Company, the Members will be requested to ratify the appointment of M/s. Ladha Singhal & Associates, Chartered Accountants, Mumbai as the Auditors of the Company to hold office from the conclusion of this Annual General Meeting till the conclusion of the next Annual General Meeting at such remuneration as may be mutually agreed upon between the Board of Directors of the Company and the Auditors. They have confirmed their eligibility to the effect would be within the prescribed limits under the Act and they are not disqualified for re-appointment.

The notes on financial statements referred to in the Auditors? Report are self-explanatory and do not call for any further comments.

The Auditors? Report does not contain any qualification, reservation or adverse remark.

EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in Form MGT-9 is annexed herewith as ANNEXURE - I. SECRETARIAL AUDIT

The Board of Directors of your Company had appointed Mr. P M. Vala, Practicing Company Secretary (Membership No. FCS - 5193, CP No. - 4237) to undertake the Secretarial Audit of the Company for the financial year 2021-22. The Secretarial Audit Report in Form No. MR-3 for the financial year ended March 31,2022 is annexed herewith as ANNEXURE - II.

Secretarial Auditors? observations: The report does not contain any qualifications, reservation or adverse remarks.

COST AUDITOR

Pursuant to the provisions of Section 148 and other applicable provisions, if any, of the Companies Act, 2013 and the Companies (Cost Records and Audit) Rules, 2014 (including any statutory modification(s) or re-enactments thereof, for the time being in force), the Board of Directors of the Company have appointed Mr. Vinayak Kulkarni, Cost Accountant (Membership No. - 28559) as the Cost Auditors to conduct the Cost Audit of the Company for relevant segments for the financial year ending March 31,2023.

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

As required under Section 134(3)(m) of the Act, read with Rule 8 of the Companies (Accounts) Rules, 2014, the information relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo, during the financial year ended March 31,2022 is given as below :

(A) Conservation of Energy:

As stated in the Director?s Report, conservation of energy is an ongoing process and, in this regard, your Company ensures optimal use of energy, avoid wastages and attempts to conserve energy as best as possible. However, no significant investments were made in this regard during the year under review.

(B) Technology Absorption:

Your Company continues to adopt technology absorption techniques which are effective and have been successfully carried out for many years now. In its endeavor to improve constantly, your Company ensures regular monitoring and reviewing of the existing technology and always attempts if the same can be modified, upgraded or improved upon for increased and better operations. However, no specific research and development activities were carried out during the year under review.

(C) Foreign Exchange Earnings and Outgo:

Particulars F.Y. 2021-22 (Audited)
Earnings 604.57
Outgo 111152.07

DISCLOSURE PURSUANT TO SECTION 197(12) OF THE COMPANIES ACT, 2013 READ WITH COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) AMENDMENT RULES, 2016

Disclosure pursuant to the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016 is attached herewith as per ANNEXURE- III.

However, since there were no employees drawing remuneration in excess of the limit set out in the aforesaid amended rules, the particulars of employees required to be furnished pursuant to Section 197 (12) read with Rule 5 (2) and Rule 5 (3) of the Companies (Appointment and Remuneration of Managerial Personal) Amendment Rules, 2016 does not form part of this annual report.

FIXED DEPOSITS

The Company did not accept any Fixed Deposits from the public during the year and no fixed deposits were outstanding or unclaimed as on March 31,2022.

STATUS OF UNCLAIMED/ UNPAID DIVIDEND AMOUNTS

The status of unclaimed/ unpaid Dividend amounts as on March 31,2022: Rs 8.91 Lakhs

BORROWINGS AND DEBT SERVICING

During the year under review, your Company has met all its obligations towards repayment of principal and interest on loans availed.

LISTING OF SHARES

The equity shares of your Company have been listed on the BSE Limited and the National Stock Exchange of India Limited. The listing fees for the year 2022-23 have been duly paid.

DIRECTORS? RESPONSIBILITY STATEMENT

Your Directors state and confirm that:

(i) in the preparation of the annual accounts for the financial year ended March 31,2022, the applicable accounting standards read with requirements set out under Schedule III to the Act, have been followed and that there are no material departures from the same;

(ii) the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31,2022 and of the profits of the Company for the year ended on that date;

(iii) 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;

(iv) the Directors have prepared the accounts for the financial year ended March 31, 2022 on a ‘going concern? basis;

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

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

CORPORATE GOVERNANCE

Your Company ensures maintaining highest standards of corporate governance as per corporate governance requirements formulated by SEBI. The report on Corporate Governance as per SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 forms an integral part of the Annual Report. (ANNEXURE - IV). The requisite certificate from the Auditors of the Company confirming compliance with the conditions of Corporate Governance is attached to report on Corporate Governance.

MANAGEMENT?S DISCUSSION AND ANALYSIS REPORT

Management?s Discussion and Analysis Report for the year under review, as stipulated under Regulation 34(2) of SEBI (LODR) Regulations, 2015. (ANNEXURE - V).

RELATED PARTY TRANSACTIONS

All related party transactions to be entered into during the F. Y 2021-22 on omnibus basis were approved by the Board of Directors and the Audit Committee and were also consented by the members in the Annual General Meeting of the Company held on September 30, 2021 in accordance with Section 188 of the Companies Act, 2013 and Rules made thereunder (as amended) and as per earlier Listing Agreements and subsequently on the basis of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of related party transactions entered during the F. Y 2021-22 are placed under ANNEXURE -VI as per Form AOC-2 attached with this Directors? Report. The Policy on materiality of related party transactions may be accessed on the Company?s website- www.aicltd.in.

CORPORATE SOCIAL RESPONSIBILITY

The Corporate Social Responsibility Committee comprises of Mr. Jaiprakash Agarwal, Managing Director, Mr. Lalit Agarwal, Whole Time Director and Mr. Alok Bharara, an Independent Director. Mr. Jaiprakash Agarwal, Managing Director, is the Chairman of the Committee.

The details of the various projects and programs which can be undertaken by the Company as a part of its CSR Policy framework is available on its website www.aicltd.in.

The disclosures required to be given under Section 135 of the Companies Act, 2013 read with Rule 8(1) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 are given in ANNEXURE- VII forming part of this Board Report.

BUSINESS RESPONCIBILITY AND SUSTAINABILITY REPORT (BRSR)

According to Top Companies? list of Stock Exchanges dated 31st March 2022, our Company falls under top 1000 Companies and therefore as per the SEBI?s relevant circulars indicating the applicability of BRSR Reporting, our Company shall provide the BRSR Report for Financial Year 2022-23 in the next Annual Report for the F.Y. 2022-2023 in accordance with Regulation 34 of LODR, 2015 as amended.

APPLICATIONS MADE OR ANY PROCEEDING PENDING UNDER THE IBC CODE, 2016

No application made or any proceeding is pending under the IBC Code, 2016 during the year under review and thereafter till the date of this report.

ACKNOWLEDGEMENT

Your Directors place on record their deep sense of appreciation for the contribution made by employees towards the success and growth of your Company. Your Directors also thank all the shareholders, investors, customers, vendors, bankers, business partners, government and regulatory authorities for their continued co-operation and support.

Date: August 30, 2022 On behalf of the Board of Directors
Place: Mumbai Agarwal Industrial Corporation Limited
Registered Office: Lalit Agarwal Jaiprakash Agarwal
Eastern Court, Unit No. 201-202, (DIN:01335107) (DIN:01379868)
Plot No. 12, V. N. Purav Marg, Whole Time Director Managing Director
S. T. Road, Chembur, Mumbai - 400071