Amol Minechem Limited Shares

Annual Report Summary

Annual Report 2021-2022

Amol Minechem Limited, formerly known as Amol Dicalite Limited, presents its annual report for the financial year ended March 31, 2022. The Directors of the company are Mr. Shreyas C. Sheth (Chairman & Managing Director), Mrs. Priti S. Sheth (Director), and Mr. Naishadh I. Parikh (Independent Director). The company’s registered office is located at 401, “Akshay”, 53, Shrimali Society, Navrangpura, Ahmedabad – 380009.

Notice is given for the 43rd Annual General Meeting (AGM) to be held on Thursday, October 20, 2022, at 11:00 a.m. at the registered office address, to transact business such as adopting the financial statements, declaring a dividend, and re-appointing a director. Due to the COVID-19 pandemic, the meeting will be held through video conferencing (VC) or other audio-visual means (OAVM), and physical attendance of members will be dispensed with. The facility for appointment of proxies by members will not be available for this AGM.

Financial Performance: The company's sales and operating income increased to INR 4,533.83 Lakhs compared to the previous year's INR 3,890.60 Lakhs. Earnings before Interest, Depreciation and Tax Adjustment (EBIDTA) stood at INR 610.16 Lakhs, against INR 673.25 Lakhs the previous year. The net profit for the year was INR 260.82 Lakhs, compared to INR 337.47 Lakhs the previous year after providing tax liability. The thermal insulation market saw increased demand compared to the previous year; however, increased finance and raw material costs decreased profit margins.

Key Highlights & Disclosures:

• The directors recommend a dividend of INR 2.50 per share (25%) for the financial year ended March 31, 2022.
• The company has adopted a Risk Management Policy.
• Talent acquisition, retention, and development are integral to HR initiatives. There were cordial relations with employees and no strikes/lockouts.
• The company proposes to retain INR 1,816.09 Lakhs as surplus in the profit and loss account.
• Two foreign subsidiaries, Amol Cryogenic Insulation (USA) Inc. and Amol Cryogenic Insulation Ltd. UAE, continue to be subsidiaries. Financial details are provided in the annexure.
• National Company Law Tribunal (NCLT), Ahmedabad, approved the Scheme of Amalgamation of Perlcon Premix Private Limited with Amol Minechem Limited on January 3, 2022.
• The company has zero tolerance for sexual harassment at the workplace and has formed an Internal Complaint Committee. No complaints were received.
• Steps were taken to conserve energy, including utilizing solar power and replacing conventional equipment with high-efficiency alternatives.
• The company plans to utilize waste heat to reduce natural gas consumption, reducing energy consumption and cost.

Financial Statement Details (Standalone):

Equity:

*   Equity Share Capital: 67.77 Lakhs
*   Other Equity: 4,357.30 Lakhs

Non-Current Liabilities:

*   Borrowings: 627.34 Lakhs

Current Liabilities:

*   Borrowings: 495.76 Lakhs
*   Trade Payables: 597.50 Lakhs

Total Revenue from Operations: 4,122.75 Lakhs

Profit for the year: 271.33 Lakhs

Auditor's Report:

• Auditors B.R. Shah & Associates issued an unmodified opinion on the standalone and consolidated financial statements.
• The report emphasizes a matter regarding investment in and loans given to subsidiary Amol Cryogenic Insulations (USA) Inc. that has incurred significant losses. Management believes ACI will recover, but diminution in value had been previously provided.
• The auditors report that the company has adequate internal controls over financial reporting and that they were operating effectively.
• The auditors also confirm that the company has complied with provisions of section 185 and 186 of the companies Act, 2013 in respect of loans, investments, guarantees and security.

Corporate Social Responsibility (CSR):

• The CSR Committee includes Naisadh I. Parikh (Chairman), Shreyas Sheth (Member), and Priti Sheth (Member).
• The company has a CSR policy available on its website.
• INR 13.50 Lakhs was spent on CSR activities related to the promotion of Education & Healthcare and other activities which falls under Schedule VII of the act to “Chinubhai Manibhai Charitable Trust”.

Subsidiary Performance: The financial performance of subsidiaries Amol Cryogenic Insulation (USA) Inc. and Amol Cryogenic Insulation Ltd. (UAE) is detailed in the report.

Share Capital Structure: Authorized share capital: 30,00,000 Equity Shares of ₹10/- each and 10,00,000 4% Redeemable Non – Cumulative Preference Shares of ₹100/- each. Issued, Subscribed & Paid-up Capital 6,77,652 Equity Shares of ₹10/- each.

Other Key Points:

• Mr. Shreyas C. Sheth retires by rotation and offers himself for re-appointment. The board recommends his re-appointment.
• Declaration of Independence: Mr. Naishadh I. Parikh meets the criteria of independence as laid down under Section 149 (6) of the Act and is considered independent by the Board.
• Directors' Responsibility Statement confirms compliance with accounting standards, proper care for safeguarding assets, and preparation of accounts on a going concern basis.
• The company has a policy against sexual harassment at the workplace.
• Shareholders are entitled to electronic voting for the AGM.
• Annexures to the report include details about Subsidiaries/Associate Companies, CSR activities, details of contracts with related parties, and other pertinent information.