DIRECTORS' REPORT Dear Shareholders, Your Directors have pleasure in presenting the Forty Fifth Annual Report together with the Audited Financial Statements for the year ended March 31, 2016. PERFORMANCE REVIEW The Financial Year 2015-16 ("FY 2015-16") was an extremely challenging year for the chemical industry. The sharp decline in the prices of global crude oil and related petrochemical intermediates as well as continuous weakness in key emerging markets had an adverse impact on the chemical industry. In this backdrop, your Company delivered a strong performance. It has reported a steady growth in profitability during the year while recording progress on several strategic initiatives, including expansion plans. On a standalone basis, your Company registered a marginal growth of 0.6% in revenues which stood at Rs. 1,335.73 crore in FY 2015-16 compared to Rs. 1,327.16 crore in FY 2014-15. This was driven by healthy volume growth of 9%. Due to the decline in the prices of crude oil and related petrochemical intermediates, there was a commensurate reduction in realisations of some products. As a result, the strong growth in volumes has been offset by lower realisation leading to moderate growth in absolute revenues though operating margins improved. Initiatives taken by your Company to improve operating efficiency, de-bottlenecking of production lines, improvement in working capital and control of operating and finance cost helped to register 35% growth in Profit Before Tax as compared to the previous year. The commendable growth in volumes was backed by healthy trajectory in the Fine & Speciality Chemicals (FSC) segment which includes agrochem intermediates as well as pharma and personal care intermediates. The shift towards higher contribution products in the overall product mix and traction from newly introduced products has been instrumental in the strong performance of this segment. Within the Fluorescent Whitening Agent (FWA) segment, the performance of Optical Brightening Agents (OBA) improved due to volume growth on account of better acceptance of your Company's products, doubling the customer base and expanding the geographies in both domestic and export markets. Your Company is able to acquire orders from large MNC customer in paper and detergent industry. The revenue performance of the Bulk Chemicals & Commodities (BCC) segment reflects the situation of lower crude oil prices during FY 2015-16. The fall in crude oil prices and related petrochemical intermediates had a cascading effect on the top line of this segment. Your Company was, however, able to maintain the spread. Export markets of Europe, USA and China supported the momentum with procurement of high volumes on the back of high visibility. Export markets contributed 40% to your Company's topline, while the contribution from domestic market stood at 60%. Export revenue was marginally higher by 2% to Rs. 525.75 crore. Your Company launched a special grade of Sodium Nitrite for exports market in FY 2015-16 and the response so far has been promising. Profit before Tax for FY 2015-16 came in at Rs. 91.33 crore compared to Rs. 67.74 crore in FY 2014-15. Your Company was able to successfully maintain the spread in most of its products in the face of reduced realisations, especially for the products linked to crude oil and petrochemical intermediates. Profit After Tax for the year was higher by 21.9% to Rs. 65.14 crore compared to Rs. 53.44 crore in FY 2014-15. Earnings Per Share in FY 2015-16 was Rs. 6.07 on enhance capital compared to Rs. 5.11 per Share in FY 2014-15. The outlook remains favourable. Your Company is confident of delivering value-led growth in all the three SBUs of Bulk Chemicals & Commodities, Fine & Speciality Chemicals and Fluorescent Whitening Agents. Significant efforts have been undertaken to customise the product portfolio and drive customer acceptance which are expected to result in higher volumes of OBA products. This will lead to an increase in the utilisation rate at the FWA facility in Dahej. Your Company's established business segments will continue to see enhanced momentum given the relative stability in the global prices of crude oil, improved sentiment in both domestic and international markets, the foray into complementary segments of pharma and personal care intermediates and an improved outlook for agrochem products in light of expectations of a normal monsoon. In addition, further improvements in operational efficiency along with cost reduction initiatives will help improve the overall profitability in the near future. A review of the performance during the year is given under the section Management Discussion and Analysis Report, which forms part of this report. ISSUE OF SHARES During FY 2015-16, your Company, offered Equity Shares to the Qualified Institutional Buyers ("QIBs") on private placement basis through Qualified Institutions Placement ("QIP"), in accordance with Chapter VIII of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. Accordingly, 11,750,000 Equity Shares of Rs. 2/- each were allotted to QIBs on January 6, 2016 at an issue price of Rs. 70.90 per Equity Share (including premium of Rs. 68.90 per Equity Share). The QIP issue proceeds aggregating to Rs. 83.31 crore 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 Liquid Mutual Funds. Post issuance of Equity Shares under QIP, the issued, subscribed and paid-up capital of your Company has increased from Rs. 20.91 crore in FY 2014-15 to Rs. 23.26 crore in FY 2015-16. DIVIDEND Based on your Company's performance, the Board of Directors has recommended payment of dividend of Rs. 1.20 (Rupee One and Paisa Twenty only) per Equity Share for the year ended March 31, 2016 on 11,62,88,190 Equity Shares of Rs. 2/-each, as against Rs. 1/- (Rupee One only) per Equity Share (after adjustment for sub-division and bonus) in the previous year. The total sum of the dividend, if approved, including Corporate Dividend Tax, will be Rs. 16.79 crore (previous year Rs. 12.58 crore). TRANSFER TO RESERVES Your Company proposes to transfer Rs. 5 crore to the General Reserves out of the amount available for appropriation and an amount of Rs. 231.63 crore is proposed to be retained in the Statement of Profit and Loss. UPDATE ON PHENOL AND ACETONE PROJECT Last year your Company announced setting up of a Greenfield project to manufacture Phenol and Acetone at Dahej, in the State of Gujarat, through its wholly owned subsidiary, Deepak Phenolics Limited. Till March 2016, total investment made by your Company in Deepak Phenolics Limited was Rs. 61.84 crore. Kellogg Brown & Root International, Inc. has been selected for technology and engineering services while M/s. ThyssenKrupp Industrial Solutions (India) Pvt. Ltd. has been selected as the Engineering, Procurement, and Construction Management (EPCM) contractor. Basic engineering has been completed and significant progress has been made on detailed engineering. The Project management team is established and the Project is being implemented as per schedule. On Project procurement side, orders for majority of long lead items have been placed or are in the process of negotiation. Deepak Phenolics Limited has started seeding phenol market with an objective to develop relationships with all major clients in India. The demand for phenol continues to be buoyant in India and is expected to increase steadily based on consumption trends of end-user industries. Phenol imports remain strong and the country's current demand will absorb the entire capacity that your Company plans to install thereby substituting imports. Further, the abundant availability of phenol in the local market is expected to spur pent-up demand which is expected to further expand the market. SALE OF LAND AT PUNE In order to monetise the value of your Company's unutilised assets and improve shareholders value by freeing up capital to facilitate growth, your Directors had approved the sale of freehold land and surrender / assignment of leasehold rights in respect of lands situated at Sinhagad Road, Pune, Maharashtra. Your Directors are pleased to inform that during April, 2016, the said transactions were concluded for a total consideration of Rs. 79.26 crore. The profit on sale of land and surrender / assignment of leasehold rights will be recognized in the first quarter of FY 2016-17. FINANCE Your Company adheres to strict guidelines to efficiently manage its working capital level and maintain its debt at a reasonable level. The long term debt of your Company decreased during the year due to repayment of external commercial borrowing and term loan borrowed in earlier years. Interest cost is expected to moderate further as the FWA business gains momentum with increase in volumes. Depreciation increased due to capitalisation of the Hydrogenation facility. Your Company's improved financials have helped improvement in the financial parameters. In addition, there is active management of foreign exchange exposures to minimize risk to your Company arising out of imports and repayment of external commercial borrowings. Your Company has been able to effectively manage its cash flows due to prudent management. There has been a continued focus to reduce the overall interest costs. Healthy cash flow, repayment of term loan and effective management of working capital led to decrease in overall debt level to Rs. 495 crore. The Debt to Equity ratio is now at a better and comfortable level at 1.04 times as on March 31, 2016. ICRA Limited re-affirmed the long-term rating of [ICRA] A+ and Short Term rating of [ICRA] A1+ assigned to the fund based limits and non-fund based limits of your Company. ICRA also re-affirmed the short-term rating of [ICRA] A1+ assigned to the Commercial Paper programme. DIRECTORS The Board of Directors at their meeting held on May 9, 2016, appointed Shri Maulik D. Mehta as an Additional Director and subject to the approval of shareholders, also approved the appointment of Shri Maulik D. Mehta as a Whole-Time Director of your Company w.e.f. May 9, 2016. As per provisions of Companies Act, 2013, Shri Maulik D. Mehta holds office as an Additional Director upto the ensuing Annual General Meeting. Your Company has received a notice from a Member proposing the candidature of Shri Maulik D. Mehta for appointment as a Director along with requisite fees. The respective resolutions for the appointment of Shri Maulik D. Mehta as a Director and Whole-Time Director for approval by the Members are given in the Notice for the Annual General Meeting. As required under the provisions of Section 152 of the Companies Act, 2013, Shri C. K. Mehta, a Director liable to retire by rotation, will be retiring at the ensuing Annual General Meeting. Although he is eligible for re-appointment at the ensuing Annual General Meeting, he has not offered himself for the re-appointment due to his advancing age. The Board of Directors while extending their gratitude for the valuable contribution of Shri C. K. Mehta as the Chairman of your Company, have decided not to fill the vacancy that will be caused by the retirement of Shri C. K. Mehta not offering himself for re-appointment. However, in order to continue to have the guidance and benefit from the wealth of experience of Shri C. K. Mehta, the Board of Directors has requested Shri C. K Mehta to continue as the Chairman - Emeritus and Shri C. K. Mehta has assented to the request. Shri C. K. Mehta is the founder of your Company and has been the Chairman since October, 1998. He is an eminent personality with proven business acumen of successfully building formidable corporate conglomerates in his illustrious career spanning over six decades. The able leadership of Shri C. K. Mehta, his futuristic vision, dedication and commitment for the service of the society, has taken your Company to such greater heights and earned its name not only at the national level but has achieved international acclaim too. Shri C. K. Mehta has also been at the forefront for promoting several philanthropic activities, especially for education and health care. The Board of Directors of your Company places on record their sincere appreciation for the relentless guidance and support of Shri C. K. Mehta and his contribution towards growth of your Company. KEY MANAGERIAL PERSONNEL Shri Umesh Asaikar, Executive Director, Shri Sanjay Upadhyay, Chief Financial Officer and Shri Arvind Bajpai, Company Secretary are the Key Managerial Personnel of your Company. There has been no change in Key Managerial Personnel of your Company during the FY 2015-16. MEETINGS OF THE BOARD During FY 2015-16, five (5) Board Meetings were held. The details of the Board Meetings with regard to their dates and attendance of each of the Directors thereat have been set out in the Report on Corporate Governance, which forms part of this Report. INDEPENDENT DIRECTORS The Independent Directors of your Company have furnished the declaration that they meet the criteria of independence as provided in Section 149 (6) of the Companies Act, 2013. PERFORMANCE EVALUATION Pursuant to the provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing Regulations'), the Board of Directors have carried out annual evaluation of its own performance, Board Committees and individual Directors. The performance of the Board / Committee was evaluated after seeking inputs from all the Directors / Committee members on the basis of the defined criteria including composition and structure, effectiveness of meetings, information and functioning. Performance evaluation of Independent Directors was done by the entire board, excluding the Independent Director being evaluated, on the basis of following evaluation criteria: • Relevant Knowledge, Expertise and Experience. • Devotion of time and attention to the Company's long term strategic issues. • Addressing the most relevant issues for the Company. • Discussing and endorsing the Company's strategy. • Professional Conduct, Ethics and Integrity. • Understanding of Duties, Roles and Function as Independent Director. Your Directors have expressed their satisfaction for the evaluation process. AUDIT COMMITTEE The Audit Committee consists of all Independent Directors with Shri Sudhin Choksey as the Chairman of the Committee. The other members of the Audit Committee are Shri Sudhir Mankad and Shri S. K. Anand. The terms of reference of the Audit Committee, details of meetings held during the year and attendance of members are set out in the Report on Corporate Governance, which forms part of this Report. STATUTORY AUDITOR'S REPORT The observations made in the Auditor's Report of M/s. B. K. Khare & Co., Chartered Accountants, read together with relevant notes thereon, are self-explanatory and hence do not call for any comments. There is no qualification, reservation, adverse remark or disclaimer by the Statutory Auditors in their Report. SECRETARIAL AUDITOR'S REPORT The Secretarial Audit Report of M/s. KANJ & Associates, Company Secretaries, for the year ended March 31, 2016 do not contain any qualification, reservation, adverse remark or disclaimer by the Secretarial Auditors. The Secretarial Audit Report is annexed as Annexure - A, which forms part of this Report. AUDITORS (A) Statutory Auditors: In compliance with the Companies (Audit and Auditors) Rules, 2014, the Members, at the 43rd Annual General Meeting of the Company held on August 8, 2014, appointed M/s. B. K. Khare & Co., Chartered Accountants, Mumbai, as Statutory Auditors of the Company to hold the office until the conclusion of 46th Annual General Meeting of the Company. As required under the provisions of Section 139 of the Companies Act, 2013, their appointment as Statutory Auditors is subject to ratification by the Members at every Annual General Meeting. Accordingly, Members are requested to ratify their said appointment at the ensuing Annual General Meeting of the Company. (B) Secretarial Auditors: Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Secretarial Audit for the year ended March 31, 2016 was carried out by the Secretarial Auditor, M/s. KANJ & Associates, Company Secretaries, Pune. The Board of Directors of your Company has appointed M/s. KANJ & Associates, Company Secretaries, Pune to carry out Secretarial Audit of the Company for FY 2016-17. (C) Cost Auditors: The Board of Directors of your Company has appointed M/s. B. M. Sharma & Company, Cost Accountants, to conduct audit of your Company's cost records for FY 2016-17 at a remuneration of Rs. 6,50,000/- (Rupees Six Lacs Fifty Thousands only) plus out of pocket expenses. As required under the provisions of Companies Act, 2013, the remuneration of Cost Auditors as approved by the Board of Directors is subject to ratification by the shareholders at the ensuing Annual General Meeting. The Cost Audit Report will be filed within the prescribed period of 180 days from the close of the Financial Year. (D) Internal Auditors: The Board of Directors has appointed M/s. Deloitte Haskins & Sells as Internal Auditors of your Company to conduct the Internal Audit for FY 2016-17. CHANGE IN REGISTRAR & SHARE TRANSFER AGENT The Company has changed its Registrar & Share Transfer Agent from M/s. Sharepro Services (I) Pvt. Ltd. to M/s. Link Intime India Pvt. Ltd. FIXED DEPOSITS During FY 2015-16, your Company has not accepted or renewed any Fixed Deposits. As on March 31, 2016, 44 warrants aggregating to Rs. 9,23,437 issued by your Company to the respective deposit holders towards compulsory repayment of deposits and interest thereon in accordance with the provisions of Section 74 of the Companies Act, 2013, remained uncleared. There has been no default in repayment of deposits or interest thereon during the year and there are no deposits outstanding as on March 31, 2016. VIGIL MECHANISM In accordance with the provisions of Section 177 of the Companies Act, 2013 and requirements of Listing Regulations, your Company has a vigil mechanism which has been incorporated in the Whistle Blower Policy for Directors and employees to report genuine concerns. The Whistle Blower Policy also provides for adequate safeguards against victimization of persons who use vigil mechanism and for direct access to the Chairman of the Audit Committee in appropriate or exceptional cases. The Whistle Blower Policy is uploaded on the website of your Company. RELATED PARTY TRANSACTIONS All related party transactions that were entered into during the year ended March 31, 2016 were at arm's length basis and in the ordinary course of business. There were no materially significant related party transactions entered into by your Company during the year and hence no information is required to be provided as prescribed under Section 134(3)(h) of the Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rules, 2014. SUBSIDIARIES AND ASSOCIATES As required under Rule 8(1) of the Companies (Accounts) Rules, 2014, the Board's Report has been prepared on a Standalone basis. Your Company has following subsidiaries and associate: (a) Deepak Phenolics Limited Your Company's Phenol and Acetone Project is being undertaken through Deepak Phenolics Limited, a wholly owned subsidiary of your Company. (b) Deepak Nitrite Corporation Inc. (USA) A wholly owned subsidiary company is formed in the United States of America to cater to the marketing requirements of your Company in the North and South American region. (c) Deepak Gulf LLC Deepak Gulf LLC is an associate company where your Company has 49% shareholding. Pursuant to the provisions of Section 129(3) of the Companies Act, 2013 read with Rule 8(1) of the Companies (Accounts) Rules, 2014, a statement containing salient features of the financial statements of your Company's subsidiaries in Form AOC-1 is attached to the Financial Statements. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013 The particulars of Loans granted and Investments made by your Company have been disclosed in the Financial Statements. MATERIAL CHANGES There have been no material changes and commitments affecting the financial position of your Company since the close of Financial Year i.e. since March 31, 2016 except as disclosed in this Report. Further, it is hereby confirmed that there has been no change in the nature of business of your Company. DIRECTORS' RESPONSIBILITY STATEMENT Pursuant to the requirement of Section 134(5) of the Companies Act, 2013 ("the Act"), the Board of Directors of your Company, to the best of their knowledge and ability, confirm that: (a) in the preparation of the Annual Accounts, the applicable accounting standards have been followed and there are no material departures; (b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year and of the profit of the Company for that period; (c) they 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) they have prepared the Annual Accounts on a going concern basis; (e) they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; (f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively. CORPORATE GOVERNANCE As required under Listing Regulations, a Report on Corporate Governance with a Certificate from the Statutory Auditors of your Company confirming compliance of the conditions of Corporate Governance and a Management Discussion and Analysis are attached, which form part of this Report. CORPORATE SOCIAL RESPONSIBILITY The Corporate Social Responsibility (CSR) activities are being undertaken by your Company through Deepak Foundation, a charitable trust of the group as implementing agency for CSR activities of your Company. Through Deepak Foundation, your Company supports in development of underprivileged communities through various social interventions. The CSR activities during FY 2015-16 were focused on women empowerment through skills building in health and livelihood promotion, primary healthcare services, early childhood care and development and education. The interventions were spread around the plants of your Company, located at Dahej & Nandesari in Gujarat, Roha & Taloja in Maharashtra and Hyderabad in Telangana. During FY 2015-16, your Company has spent Rs. 157.60 Lacs (including the unspent amount of Rs. 15.72 Lacs in the previous year) on CSR activities, against the requirement of Rs. 122 Lacs, being 2% of average of the net profits for the preceding three years. The major CSR activities carried during FY 2015-16 were: Comprehensive Emergency Obstetric and Newborn Care (CEmONC) It was constructed by Deepak Foundation within the premise of the government's Community Health Centre (CHC), Jabugam, Pavi Jetpur of Chhota Udepur district in February 2006 under the large scale intervention project of Safe Motherhood and Child Survival (SMCS). This is the only First Referral Unit (FRU) at the CHC in the area serving a tribal population of 9,00,000 round the clock with availability of skilled manpower. CEmONC operates under the specific objectives of strengthening the health delivery system for maternal and child care; providing immediate care to the emergency obstetric cases referred from grassroots level and public health facilities; providing timely referral of complicated cases to tertiary level hospitals Mobile Health Unit (MHU) MHU was initiated as a means to ensure delivery of general health care services to the poorest and vulnerable segments of population in rural and tribal areas. The MHU operate with the overall goal of providing access to primary healthcare with the objectives for deploying primary healthcare and speciality services at the doorstep; facilitate basis diagnostic care services; community health education for poor and vulnerable segments of population. Integrated Child Development Services (ICDS) Your Company, through Deepak Foundation has been supporting and supervising activities of Anganwadi Centers under ICDS scheme of the Department of Women and Child Development, Government of Gujarat. This scheme offers a package of services comprising of supplementary nutrition, immunisation, health checkups, referral services, non-formal preschool education, and nutrition and health education. Deepak Foundation has entered into partnership with Department of Women and Child Development, Government of Gujarat to manage and monitor 65 Anganwadi centres in Nandesari of Vadodara district, Gujarat. The Foundation undertakes various value addition programs with the support of your Company such as tracking and facilitation of severely undernourished children, promoting adolescent health, maintaining hygiene and sanitation, improving health and nutrition awareness. It also provides free treatment to children identified with severe malnutrition as well as chronic disorders. Deepak Occupational Health Centre (DOHC) DOHC was initiated to provide comprehensive occupational health services to industries. The centre is equipped with trained medical and paramedical staff along with well-equipped laboratory and pharmacy facilities. DOHC renders services that include outpatient and inpatient care for industrial workers and their families; injury care; general OPDs and specialized OPDs for ophthalmic, dental and skin diseases; diagnosis and treatment of occupational health problems; periodic and annual medical check-ups; industrial training on first aid, Personal Protective Equipment (PPE), Health and Safety, Chemical Hazards; promotion of occupational health programs; health counselling. The brief outline of the CSR policy of your Company, composition of the Committee and report on initiatives undertaken by your Company on CSR activities during the year are set out in Annexure-B of this Report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. REMUNERATION POLICY In compliance with the provisions of Section 178 of the Companies Act, 2013 and the Listing Regulations, the Remuneration Policy of your Company is set out as Annexure-C. EXTRACTS OF ANNUAL RETURN The extract of Annual Return as required under Section 134(3)(a) of the Companies Act, 2013 read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014, is annexed as Annexure-D. PARTICULARS OF EMPLOYEES The information required under Section 197 of the Companies Act, 2013 read with Rule 5(1) and 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is annexed as Annexure-E. CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO Pursuant to the requirement of Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014, the relevant data pertaining to the conservation of energy, technology absorption and foreign exchange earnings and outgo are provided in Annexure-F of this report. STATE OF COMPANY'S AFFAIRS The state of Company's affairs is given under the heading 'Performance Review' and various other headings in this Report and in the Management Discussion and Analysis, which forms part of this Report. INTERNAL CONTROL SYSTEMS Your Company has a proper and adequate internal control system, which includes internal financial controls, to ensure compliance with various policies, practices and statutes, and that all assets are safeguarded and protected against loss from unauthorised use or disposition and that those transactions are authorised, recorded and reported correctly. The internal control is exercised through documented policies, guidelines and procedures. The Internal Auditor's team carries out extensive audits throughout the year across all locations and across all functional areas. The audit observations and corrective action taken thereon are periodically reviewed by the Audit Committee to ensure effectiveness of the internal control system. The internal control is designed to ensure that the financial and other records are reliable for preparing financial statements and other data, and for maintaining accountability of persons. RISK MANAGEMENT Risk Management is a very important part of business in today's economic environment. The main aim of risk management is to identify, monitor and take precautionary measures in respect of the events that may pose risks for the business. Your Company has in place a Risk Management Framework adopted by the Board of Directors of your Company. The Framework provides an integrated approach to identify, assess, monitor and mitigate risks in various aspects of your Company's business. Risks identified by the functions are systematically addressed through mitigating actions on a continuing basis. Your Company has a duly constituted Risk Management Committee which oversees the risk assessment and mitigation process regularly. The composition of Risk Management Committee is disclosed in the Report on Corporate Governance, which forms part of this Report. RESEARCH & DEVELOPMENT Your Company has a Research and Development facility at Nandesari, Gujarat with pilot plants at Roha, Maharashtra and Nandesari, Gujarat. This facility has been recognised by the Department of Science and Technology. Your Company has spruced up its Research & Development facility for innovation and to collaborate with its customers to understand consumer preference and develop new product applications to cater to the needs of its customers. Your Company focuses its Research and Development efforts to develop cost effective cleaner technologies to improve profitability. Through its Research and Development capabilities, your Company has been successful in developing and enhancing its portfolio of customised products. Your Company believes that its ability to develop new product applications and ability to customise products to suit customer needs have helped in expanding its customer base, thereby enabling it to establish leadership position. SAFETY, HEALTH & ENVIRONMENT Employee's Health, Safety and Environmental protection are core business values within your Company. It is your Company's objective to protect its employees, property and environment in which it operates. It strives towards excellence and align its growth path to make tomorrow safer, cleaner, greener and more sustainable. Your Company is committed to maintain its operations and workplace free from incidents and significant risk to the health and safety of its stake holders through improved engineering practices, strong channels of communication, safety awareness, robust checking systems and sound training practices. Your Company regularly monitors the occupational health of employees working in designated hazardous areas with respect to exposure to hazardous chemicals and processes. Your Company has well-equipped Occupational Health Centers at all its manufacturing locations to monitor health of employees on regular basis. It also monitors employees for any indications of lifestyle or work-style related diseases and provides counselling. All the manufacturing locations of your Company have a well defined Environment Management System. It follows well-mapped procedure in order to select projects, assess impacts on society and environment and mitigate any adverse impacts. It has instituted a compliance management system which mandates undertaking an adverse impact analysis and risk analysis study and implementation of actions based on such analysis. Environmental performance indicators of your Company are defined and monitored by the top management regularly. Special emphasis is given on resource conservation and process innovations to convert waste streams into saleable products and minimise use of water in processing. Your Company proactively fulfils the environmental requirements of customers by delivering products that match international standards. Your Company continues to focus on proper treatment of effluents and reduction of pollution as a part of its Green and ecofriendly initiatives. This has made your Company a safe and healthy place to work. Your Company is signatory to the 'Responsible Care' initiatives and Responsible care logo holding organisation. Quality, Environment & Occupational Health & Safety Management System at all manufacturing plants and corporate office have been assessed, registered and certified as per ISO 9001, ISO 14001 & OHSAS 18001. All raw materials and products within supply chain framework of your Company are transported in a secure manner, for the safety of its customers, carriers, suppliers, distributors and contractors. Your Company takes utmost care during transportation and ensures that it complies with all the checks and measures for a safe and secure delivery. AWARDS & ACCOLADES Your Company was conferred with supplier excellence award in the "Outstanding Performance" category for the year 2015 from a leading global agrochemical major Bayer CropScience. This award recognises the quality and excellence of your Company's products in the Fine & Speciality Chemicals offering. HUMAN RESOURCES Your Company's HR philosophy is to establish and build a high performing organisation, where each individual is motivated to perform to the fullest capacity; to contribute to developing and achieving individual excellence and departmental objectives and continuously improve performance to realize the full potential of its personnel. During the year under review, your Company's industrial relations at all manufacturing and other locations have remained amicable. All these efforts are concentrated on attracting and retaining the best talent in the industry as people are at the center of your Company's growth. INSURANCE All the insurable interests of your Company including inventories, buildings, plant and machinery are adequately insured against risk of fire and other risks. DISCLOSURE AS REQUIRED UNDER SECTION 22 OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 Your Company has in place a Anti-Discrimination and Harassment policy in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Internal Complaint Committee has been set up to redress complaints received regarding sexual harassment at workplace. All employees (permanent, contractual, temporary, trainees) are covered under the policy. There were no complaint received from any employee during FY 2015-16 and hence no complaint is outstanding as on March 31, 2016 for redressal. ACKNOWLEDGEMENT Your Directors take this opportunity to express their gratitude to all investors, clients, vendors, bankers, regulatory and government authorities, stock exchanges and business associates for their co-operation, encouragement and continued support extended to your Company. Your Directors also wish to place on record their appreciation for the hard work and efforts put in by all the employees and their contribution towards growth of your Company. For and on behalf of the Board C.K. MEHTA Chairman Place: Mumbai Date: May 9, 2016 |