Indofil Industries Limited Unlisted Shares

Annual Report Summary

The 29th Annual Report of Indofil Industries Limited for 2021-22 highlights the company's resilience and agility in navigating a dynamic environment. The company focuses on producing sustainable and innovative agrochemical and specialty chemical solutions, prioritizing customer demands, and minimizing environmental impacts.

Corporate Overview (Pages 4-37):

• Indofil at a Glance: Indofil focuses on sustainable, innovative solutions to meet customer demands while minimizing environmental impact, with a strong domestic and international presence and a portfolio of patented and co-branded products. Indofil aims to be a global leader with customer success. They are constantly evolving processes and procedures and leveraging research and development to create long-term value for stakeholders. They aim to be a preferred partner, helping stakeholders achieve their goals.
• Our Presence: The company has manufacturing units in Dahej, SEZ, Gujarat, and a synthesis plant in Dahej, SEZ, Gujarat. There is an innovative solutions plant in Dahej, Gujarat and a EBDC Plant in Dahej, GIDC, Gujarat. Revenue mix by geography is broken down in percentage for FY2020-21 and FY2021-22, revealing India to be the largest revenue generator.
• Product Portfolio: Indofil offers a diverse product portfolio of agrochemicals (fungicides, insecticides, herbicides, surfactants, plant growth regulators, acaricides, and plant nutrition/bio-stimulants) and specialty chemicals for leather, textile, paints, plastics, and construction. Brand names for each are given, as are key crops targeted by Indofil's products.
• Chairperson's Message: Dr. Bina Modi emphasizes the company's focus on improving crop and soil health, assisting farmers in enhancing crop production, upgrading the product portfolio, and implementing digital transformations. She notes the benefits to domestic manufacturers from the "Aatmanirbhar Bharat" initiative. She expresses gratitude to stakeholders and looks forward to continued growth and transformation.
• COO's Message: Narendra Rane highlights the need for agility and digitalization. He emphasizes serving key agricultural markets and ramping up R&D investments. He notes the payment of long-term debt and increased top-line. Expansion of manufacturing capacity and inorganic growth are also discussed.
• Financial Highlights: Consolidated total income grew by 18% year-over-year, and consolidated PAT grew by 227% year-over-year. Consolidated EBITDA margin decreased by 8% year-over-year. Other financial metrics like cash flow from operations and EPS are included.
• Business Model: The company leverages financial, manufactured, intellectual, human, natural, and social/relationship capital to achieve end-to-end process competence from manufacturing/formulation to research/development and customer engagement.
• Value Provided: Indofil provides value through 18% YoY growth in consolidated income and 227% YoY growth in PAT. Capacity figures are given for the manufacturing units in tonnes. They offer a number of brands and have launched new products and have a number of registrations and countries that they are available in.

People First (Pages 20-23):

• Motivated Workforce: The company pivoted on an empowering workforce and initiated a change from hierarichal to a democratic model, encouraging diversity, and open communication while giving out awards and also focusing on a diverse work force and talent pipeline.

Strengthening Offerings (Pages 24-25):

• Market Differentiation: At Indofil, the company is committed at creating a differentiated portfolio of high quality and affordable products and solutions. 8 new products are introduced in India.

Increasing Market Penetration (Pages 26-27):

• Reinforcing Presence: Indofil is focused on research and development. and had renewal of recognition from DSIR and recertified for GLP. The company also worked on co-ordination with the manufacturing team and improved processes.

Manufacturing Excellence (Pages 28-29):

• Global Demand: Indofil has enhanced capacity and state-of-the-art facilities to ensure optimal capacity utilisation, and increased production capacity. The also are backward integrated and pursue a six sigma approach and continue a reliance on sustainable technology. They have plant certifications and IMS certifications.

Maintaining a Robust Supply Chain (Pages 30-31):

• Efficient Processes: The company is developing efficient and smarter processes while maintaining a robust supply chain to enhance efficiency and by adopting digital technologies.

Environment, Social and Governance (ESG) (Pages 32-34):

• Sustainable Value Creation: Indofil is determined to safeguard the interests of people, communities, and the environment with effective environment management system, zero EHS non-compliance, and integration of ISO. The company has introduced EHS concerns and has virtual audits along with virtual defensive driving training, weekly tool-box talk, and daily GPS tracking.
• Employee Health and Safety: Indofil prioritizes safety at the workplace through collaborative leadership and by recognising exceptional employees with zero incident reported.

Governance (Pages 34-37):

• Commitment: The company is committed to good governance as the cornerstone of a successful organisation through transparent and accountable operations. They encourage diversity and value the whistleblower policy while maintaining a code of business conduct and ethics.
• Awards: The company has received multiple awards.

Statutory Reports (Pages 38-112):

• The notice for the annual general meeting is given. M/s S.N. Addagatla & Co. have been reappointed as cost auditors.
• Directors' Report: The directors outline the company's performance and initiatives in the areas of operations, international business, innovation, manufacturing excellence, supply chain management, and enabling dynamic change.
• Management Discussion and Analysis: The document provides an overview of the global and Indian economy, the agrochemical and speciality chemical industries, and the company's performance, outlook, risks, and opportunities. Details for the same are provided.

Financial Statements (Pages 113-223):

• Detailed standalone and consolidated financial statements, auditor's reports, and related notes are presented, covering balance sheets, statements of profit and loss, statements of changes in equity, and statements of cash flow. The specific figures and ratios within these statements are presented.