20 Microns Ltd Management Discussions.

Analysis of sector-wise performance of the Company for the fiscal year 2019-20 and future outlook are given hereunder. The outlook is based on the assessment of the current business scenario and Government Policies. Any deviation to the developments – future and other – may affect the variances in the outlook.

Industry Progress, Opportunities-Threats & Outlook

The Indian Mining Industry has always been overlooked by the Central Government in the past many years not announcing major reforms or policy changes in this sector to boost the confidence of the mining industry and attract investors to drive the industry and step up into the next level. While India boasts of significant reserves of various minerals in significant belts across the diverse country landscape, the significant depletion of good quality reserves against the rapid production by companies is generating an imbalance in various minerals and creating the vacuum by not incentivising the mining activities in virgin areas and identified belts by the State and Central governments.

A significant driver for change in India is the National Mineral Policy (NMP), a directive released in 2019 that will govern the countrys mining sector, and replaces the 2008 version of the policy that has been in place for the last decade. The NMP grants states some powers with regard to mineral exploration and permitting, but stresses that local governments are encouraged to "endeavour to auction mineral blocks with pre-embedded statutory clearances" in order to avoid delays in the process of mine permitting and construction. The aim of National Mineral Policy 2019 is to have a more effective, meaningful and implementable policy that brings in further transparency, better regulation and enforcement, balanced social and economic growth as well as sustainable mining practices.

As a result, the NMP could be described as company-friendly, with an emphasis on streamlining the permitting and construction processes. The new law also designated mineral-rich areas as "Mining Land," which are to be reserved for mineral development, enabling companies to quickly build mines without obstacles. However, the policy also applies to deposits that have been claimed and on which mining work has not yet begun. The policy places a lot of trust in both private companies and, where applicable, government bodies tasked to develop mining projects, to develop the land responsible and in a timely fashion.

The Indian mining industry is home to various different mineral categories – fuel related minerals; metallic minerals; non-metallic minerals; atomic minerals and minor minerals. The Metals and Mining sector in India is expected to witness a major reform in the next few years, owing to reforms such as Make in India Campaign, Smart Cities, Rural Electrification and a focus on building renewable energy projects under the National Electricity Policy as well as the rise in infrastructure development.

The Industrial Minerals industry in which your company belongs to, hasnt witnessed many dramatic changes or revolutionary regulation overhauls to be excited about. Rajasthan being one of the most dependent states for 20 Microns in terms of procuring resources and being one of the richest sources of industrial minerals in the country, there was no significant increase in the royalty from the state government which helped the industry sustain its costs to an extent, but implemented a small service tax on the royalty amount in the later part of the year which does not affect much of the overall cost.

The government is taking effective steps in monitoring the movement of minerals within the country to restrict illegal mineral transportation. The introduction of the E-Way Bill has been a great tool to monitor the transactions and illegal practices being followed in the industry since many years. In continuity to the last year implementations, mining activities operating without Environmental Clearance Licenses have streamlined to an extent and constant involvement and tracking by government should streamline many processes within the industry benefitting the overall scenario. However, overall the impact has been quite positive to restrict illegal mining by the government and creating a safe and sustainable environment for people working at the mines.

A few minor changes in the mining scenario for leasing and auction of mines have been brought into notice by the Central government. Apart from that, not many significant changes have been noticed or realized in the Industrial Minerals industry that the Company operates in. This industry still predominantly functions in an unorganized way wherein a limited players are trying to get their act through and shift their focus in an organized way segmenting them in the category in which 20 Microns operates since more than few decades. India has always been a self sufficient nation with well endowed natural mineral resources in the league of larger nations of USA, Europe, and China. This industry falling under the larger Minerals & Mining sector is a significant contributor to Indias GDP growth which is currently on the decline. The Industrial Minerals sector provides the basic raw materials to the manufacturing sector and has always been considered as an important segment for the Indian economy. The mining sector has been reeling for few years now, under a lethal mix of high borrowing costs on one hand and environmental and regulatory policy paralysis on the part of the government on the other hand. But with the new government in place, who has had a brief history of bringing reforms in the mining industry, the hope has revived in the industry to bring in some major growth oriented mining and mineral development policy reforms in the next few years which should boost this industry to the next level.

Much greater emphasis is required on development of mineral deposits by way of prospecting and zero-waste mining. The Indian government does not formally define mining as a core industrial activity. Rather it is viewed as more often as an ancillary raw material industry. The mining legislation always gave accent to regulation which emphasized management of the mines rather than on exploration and development. The future should therefore usher in an era of mineral development with socio-economic development as the focus. A significant amount of mineral potential still lying untapped could contribute enormously to the countrys GDP if the challenges are overshadowed by a high flow of FDI in this sector.

The mining industry in India has however started to shape the future direction of this engagement towards an inclusive agenda for improving livelihoods of the local populace, bringing in much needed investment, job, wealth creation and government revenues.

The future therefore now lies on deployment of latest technologies as well as interpretation of geological data to its best advantage for opening up of new mines. As mineral exploration is a key to attracting investment in the mining sector, separate legislation and procedure for grant of prospecting/exploration licenses are required.

Product/Division wise performance -

CNC – Coating & Construction Division (Paints, Paper, Ink & Allied Applications)

The segment, covers many industries with the majority share lying with the Paint Industry, inclusive of Architectural, Powder Coatings, Industrial and Special purpose coating and focused share with developing applications of allied base industries like Agrochemicals, Adhesives & Sealants, Construction, Hydrocarbon, Foundry, Ceramics, Detergent, Textile and other established industries i.e. Paper and Ink etc.

Our sales growth is dependent upon the growth of overall market Consumption of Paint, Print Media, Ceramics Products, Construction Chemicals, Automobile etc. The financial year 2019-20 was quite challenging in itself due to the conservative spending approach in the market especially the real-estate segment.

Household beautification and Automobile segment where our overall client base have a majority sales. These segments have had a major impact on our overall market growth. Despite of that, CNC division was able to manage growth @ 15% over the previous financial year and our growth has been maintained from last few years by introducing various new and Innovative products to match the industry needs. We have always been a step ahead by introducing conceptual products early on, in the market and our product development and marketing strategies are aligned in such a way so as to maintain and increase the growth of the applications, whether it is for a specialty product range or commodity sales segment.

The paint and other related industries would have easily grown by more than 10%, going by estimates made in the past few years. However, considering current scenario of a complete global lockdown due to the COVID-19 outbreak, it has become much more difficult to predict what the near future holds for the economy and for our segment, especially the market segment of tier 2 and tier 3 cities, where Decorative Paints including exterior wall paints, interior wall paints, and ancillary products such as primers, putties, etc., which may experience a major sales contraction compared to our earlier estimate. On the other side, sales growth of our product in Industrial paint segment is also difficult to predict now. However, being a premium mineral producer and having close associations with the market leaders of the segment, we can expect to get the sales volume back as expected in future when the market conditions returns to normal. Also, in the recent past, we have introduced many high end specialty mineral products and performance additives like Opacifiers, Matting Agents and range of Wax and Wax emulsion, which can give an advantage to us over the imported products to economize the overall formulation cost during this tough time ahead.

With respect to the Allied based industries which includes Agrochemicals, Ceramics, Hydrocarbon, Construction and Adhesive, etc., we have achieved about 40% growth in the year 2019-20 over the sales of previous financial year. The growth of Agro Chemicals is expected to be positive in the coming years since the government is taking lots of initiatives to aid the farmers to grow by way of providing many incentives. Hence, our Agriculture segment is looking forward for moderate sales growth despite of Covid-19 outbreak. The energy segment also seems to be difficult to grow this year or even maintain its pace, due to the global oil price situation which will have a major impact on our sales in this segment in the future. We are working upon the newer and innovative product mix for Ceramics, Detergent and Foundry industries, which are gaining confidence amongst our customers and can support to bridge the gap of sales reduction due the unpredicted time ahead.

The future of Paper Industry is going to change dramatically, mainly due to shift from paper or print media to online / e-media, in view of this, consumption of paper products is expected to go down in the coming few years. However the COVID-19 outbreak has preponed the trend. It is going to be a challenging time for the paper industry and limited growth is expected, except for some high-end products for specialty papers.

With respect to overall growth aspects we also cannot oversee the challenges that exist as hurdle towards the growth in segments we deal, for which respective precautionary measures have to be considered.

For instance, the Paints industry is highly raw material-intensive and any fluctuation in the availability of raw material leads to substantial price fluctuation in paint production costs. The Pressure is on the Raw material suppliers who are undergoing tremendous pressure to maintain the cost coupled with new entrants in the market, which has resulted in the erosion of Bottom line and the challenge is going to be similar in the coming financial year.

The road forward looks difficult to predict for the near future, considering the failing status of the economy since last few quarters and also the current economic shutdown due to the COVID-19 outbreak.

Though we have a vast and varied segment covered in the CNC Division, the sales of our customers base are distributed into 2 segments i.e. the ‘project and industrial sales (B2B), and the ‘retail and luxury sales (B2C). We are predicting little bit of a contraction in the ‘retail and luxury segment, compared to the ‘project and industrial sales, which is likely to affect our product sales pattern. We foresee a negative growth in coming year. COVID-19 has impacted SMEs financial conditions badly, so it is a challenging time to maintain our current client base and the pricing structures etc.

We may have to re-work and re-set our sales policies, which would affect our efforts to maintain the sales in the coming year.

Hence, we are predicting a U-shaped growth in the sales of our segment rather than predicting much optimistic or pessimistic growth. Even during the lockdown situation, we are always trying to explore the potentiality of our client requirement by concentrating more towards the newer applications with the best possibilities of a great mix of commodity and specialty products.

C&P - Consumer & Polymers


Polymer Application

The year 2019 – 20 has seen a tectonic shift in the polymer industry as lot of conventional products are getting replaced by biodegradable plastics taking into account the environmental safety norms as per the latest guidelines issued by the Government. This along with the volatile market scenario of oil and petroleum globally, Indian plastic industry has passed through a roller coaster ride all throughout the fiscal year. Also the last phase of the year has observed a disturbance followed by a nationwide lockdown due to

COVID-19 spread globally. In spite of such an inconsistent market scenario achieving overall 9 % volume growth compared to last year is a laudable performance.

Visionary Management diversification policy apart from as a minerals fillers core company, giving special emphasis on installing new plant and aggressively providing the Import substitute of Micronized Wax series and Oleo chemicals based polymer processing aid cum new generation polymer processing lubricants along with cost optimization and import substitute specialty products basket and flushing world best quality calcium carbonate in Indian polymer market from our Vietnam and Malaysia unit is paying dividends at this challenging moment. Products like Wax & Processing replacement,


Additive, desiccants, Opacifiers for partial TiO2

processing additives and anti-blocking agents are slowly spreading its wings in the polymer industry. More and more opportunities are emerging in aerospace, automotive, packaging, medical, and many other industries. Our technocrats Teams driven mindset with robust development and newly set-up application based research center has helped us in developing 10 new specialty additives for plastics application in the year 2019 -20. Our techno-commercial team is relentlessly working to introduce these products in the plastics industry in coming year.


Rubber Application

The year 2019-20 continued to experience challenging business conditions with the slowing down of GDP growth in India. In line with the depressed automobile sector demand, majority of our customers undertook production cuts at periodical intervals to align their production with demand. As a result there was negligible growth in demand for Rubber Chemicals in the country. On the backdrop of these challenges, our company has achieved a commendable growth of 6.5% in its sales volumes as compared to the previous year.

It would be worthwhile mentioning that your company has successfully developed and marketed specialty products, specifically tailor made for corporate customers, as a result it enjoys a niche position in the segment. Synthetic Magnesium

Oxide, Micronized Wax, Precipitated Silica are some of the specialty products which gathered momentum in the Rubber industry.


Cosmetics Application

Cosmetics industry in India is mainly dominated by multinational and corporate companies. In the year 2019-20 we have got a major breakthrough in one of the major corporate company in home care segment by promoting our super specialty fumed silica and as a result of that we have achieved a growth in sales value by 33 %. Also we are on the verge of achieving landmark breakthrough in some multinational oral care company. This was chiefly due to the fact that we have concentrated on the super specialty products and also observing all of the regulatory compliances required to adhere the need of these multinational customers. With such unilateral focus we hope to achieve monumental growth in the coming years in this segment.

Finally your companys strategy of increasing dealer network to cater small and medium scale market, we are expecting a positive response in Plastic, Rubber and Cosmetics application.

Construction & Chemicals Division "Redefining the Waterproofing Solutions"

20 Microns Construction Chemicals or 20MCC is the largest producer of white minerals in India simplifying waterproofing and offering efficient and world-class leak-proof solutions. We manufacture products which is a two-in-one solution that ensures high level of protection and waterproofing for industrial, commercial and residential buildings. We work with the moto to empower our customers with efficiently customized products based on their unique and tailored requirements.

During the year 2019-20 your Company introduced new products viz. Tigersil, Koolsil, Gypsum, Color Floor Silica, which are gradually picking up the targeted markets. By following B2C model with adoption of the progressive strategies, growing year-by-year on track, we have been able to successfully mark our presence to the potential regions in the States of not only in Gujarat but also in Maharashtra; Rajasthan and Madhya Pradesh and the process is perpetual to reach every nooks and corners of the country slowly but strongly.

Having started with its commercial sales in the year 2016-17, the company has impressively achieved significant goals and created a huge network of dealers throughout the potential regions. It follows the B2C model and implements progressive strategies to achieve business targets. Having expanded our dealers network aggressively in Gujarat at Ahmadabad, Nadiad, Baroda, Bharuch, Surat, Bilimora, Bardoli, Valsad, Vapi, and Daman, 20MCC is now a brand of every contractor, constructor and architects in the state of Gujarat demands for. In Madhya Pradesh, we have our stronghold in Indore, Pritampur, Bhopal and nearby districts. With our network in the state of Rajasthan at Alwar, Tapukheda, and Bhiwadi. In Maharastra state we have big presence in Mumbai. We are now steadily growing our roots throughout India.

With splendid products like Micronsil 30C, Micronsil 30C+, Nanosil, Metakrete, and Cracksil, your company has now introduced new products like Tigersil, Koolsil, Gypsum, Color Floor Silica for which team is getting wonderful response. Adding to the present product basket, your company is planning to introduce few more innovative and cost effective products in the market. Your company also conducted several seminars and workshops throughout the year specially designed for Masonry to increase the awareness of the products, about the correct and efficient way of work, and that how efficiently they can grow well in their respective work and generate a handsome income. Currently, such seminars and roadshows are being carried out in cities like Vadodara, Surat, Vapi, Indore, Bhopal, Mumbai, etc. In the coming year, your company is all set to conduct such workshops in other cities of India as well. The main aim of the company is to provide maximum benefits to the end-users of these products. The products are all manufactured from the highest quality Environment Friendly raw materials that are available to us globally. Not only do we incorporate Environment friendly and Eco-Friendly raw materials into our products, but our Manufacturing processes are also based on minimizing the use of our natural resources.

Fertilizer Division:

Opportunities Ahead for Agriculture based products.

The global economy mainly depends upon the agriculture, as basic needs of food and food related products which are coming from this sector. Day-by-day Agricultural lands are being occupied for urbanization which affects availability of farming lands for this sector for building constructions and for creation of infrastructures. Due to which available land for agriculture has reduced. This has led to the challenges to increase productivity within the limited available sources. Under such circumstances there are lots of challenges to increase agricultural productivity with limited resources. 20 Microns Limited has come out with innovative solutions for farmers to increase the productivity by 14 to 18% with the modern option to reduce the synthetic fertilizers, which always leads to curtail the fertility of the very land as also works against the nature. By using 20 Microns Limited products Farmers can increase their productivity and they have option to reduce synthetic Fertilizers which they have been using since many years. However these synthetic fertilizers reduce fertility of soil and work against nature.

Organic plant growth promoters better Soil fertility and for High-Yield Farming.

Over all in this segment now most of farmers are educated and they have started making their mind to use natural plant growth promoters instead of synthetic fertilizers. Trend is now towards organic farming and even urban society has also started paying little higher price to use organic product for their day to day consumption. Our Product is designed in Pallet form which dilute and disperse slowly over the period and feed nutrient gradually which makes crop healthy.

The trend is now setting up to educate the farmers and cultivators to switch over to the Organic farming instead of synthetic ones in the interests of all.

Your Company has come out with couple of products for different agricultural segment which are completely natural and produced from mineral bland which helps to improve soil fertility and crops to get required nutrients to withstand against decease. This also help farmers to reduces usage of pesticides. Since soil become fertile with 20 Microns product and crop remains decease free which helps to increase productivity.

Herbal Division:

Herbal Supplements & Ayurvedic Developing Immunity in Humans.

20 Microns Limited is successfully involved in the healthcare sector with its well-known brands in 20 Microns Herbals, known to offer the best quality Ayurvedic medicines in India that provides innumerable benefits and cures the day-today routine health-related problems we come across. In the present scenario, increasing immunity of the human beings is the need of hour in the society at large, Your Companys products line is the best suited as such for all age groups.

Natural & Scientifically Nurtured, Bringing all the Goodness of Nature.

Formed with an idea to revive age-old traditions of India to support various health problems among the people, 20 Microns Herbal is a venture by 20 Microns solely dedicated to the well-being and health of the people and the society. We have created research-based, health solutions founded on authentic Ayurvedic principles, which has a proven track record to help and benefit in many problems that we are facing during our life.

The Company is focused on producing and marketing the high-quality healthcare supplements that can be used by everyone irrespective of their age and background, making it easier to deal with their diseases, malfunctions and overcoming them with ease.

Right now, 20 Microns Herbal produces remarkable supplements Karela Extract, Garlic Extract, Ashwagandha Extract, Shilajit Extract, Curcumin Extract, Pomegranate Peel Extract, Ginger Extract and many more.

After Therapeutics like Pain Kranti, Koff Kranti, Cough Syrup, Micronflax natural omega fatty acid supplement, Dia-B-Micron Forte for Diabetes Cure, and Arthritol for Arthritis Cure during past year, this year we have introduced a dedicated Essential series for Female Healthcare like Menstrostab Syrup, Herbcos tablets, an authentic effective formula for liver care & weight management LIV n LIV syrup, Klean Kranti sanitizer to keep all sanitized round the clock.

In near future, we are planning to launch Immune boosting supplements to be healthy and supportive during time of any viral infection. Also we plan to introduce herbs and mineral based herbal cosmetic products like cream and Hair care products. Our R&D Team is actively working towards better and more efficient under the active guidance of the Companys CEO & Managing Director for healthcare solutions so as to make a better and healthier India.

Embracing the Power of the Internet, Becoming Local, Globally.

Your company has started utilizing the power of the Internet and the charismatic world of E-commerce for most of its products and services. From waterproofing solutions by 20MCC to Ayurvedic supplements by 20 Microns Herbal and organic fertilizers, everything is now available online through their dedicated official websites and even some of the renowned e-commerce websites like amazon.com, etc. making it very easy and convenient for end users to order and get their favorite products right to their doorstep. In the real sense, we are gaining the trust of our users by providing them the products they want anywhere, anytime.

Your company is also effectively utilizing Social Media platforms for spreading awareness of its products used by B2B and B2C segments.


Growth Opportunities for Export:

Indias Overall Export grew @10%. The current pandemic situation across Globe has put a brake on prospects of growth this year. But even under tough situation we were able to introduce some high value products in Exports (viz. Zinkomer) and we expect to add further new products. The challenges for exports will be meeting compliances for the new speciality products which 20 Microns is gearing up.

Automation and advancement in Technology has given a great acceleration to Indian resources to compete with global Giants. Year On Year, it has been observed that export opening has also increased due to US dollar appreciation against Indian Rupee which becomes incitement to exporter. Environment restrictions in Europe and USA for discouraging mining has played an active role to search resources from India. Indian minerals market will have better opening since China has also put limitations on export quota for natural resources, specially on Talc. We are also targeting Bulk Business and look forward for contribution in future as we have formed a separate team and already seen positive results.

We continue to design products keeping in mind our international clientele and our R&D is constantly working on developing such products which are unique to the international consumers. Our focus will be to promote more such products which are cost effective to the end users.


Our Company has been a pioneer in White Industrial Minerals and possesses our mining leases having sizable mineral reserves of 73.145 Lacs MT and 96.492 Lacs MT and the life of the mine is more than 25 years at current capacity. The reserves shown in the table below are located in the potential mineral block.


Status as on 31.03.2020

Details of Mines Approx. Reserves Approx. Value of the Reserves
(Rs. in Lacs Tons) (Rs. in Lacs)
1 China Clay – Mines, Bhuj, Dist. Kutchh, Gujarat. Area – 11.89 Hector 17.673 2562.63
2 Dolomite Mine, Taluka – Chhota Udepur, Dist. Vadodara, Gujarat, Area – 6.25 Hector. 13.89 4860.75
3 Calcite Mine, Dist. Sirohi, Rajasthan, Area – 49.25 Hector. 8.34 5002.52
4 Limestone Mines, Dist. Tirunelveli, TamilNadu, Area – 4.43 Hector. 10.3 4635.00
5 Dolomite Mine, Anantapur, Andhra Pradesh, Ares – 4.767 Hector 22.942 4591.47
TOTAL 73.145 21652.37


Status as on 31.03.2020

Details of Mines Approx. Reserves Approx. Value of the Reserves
(in Lacs Tons) (Rs. In Lacs)
1. China Clay – Mamuara Village, Bhuj, Dist. Kutchh, Gujarat. Area – 25.1455 Hector 64.122 9297.69
2. Bentonite Mines, Bhuj, Gujarat, Area 6.5 Hector 32.370 5664.20
TOTAL 96.492 14961.89

Research & Development


In a world where change occurs at a frenetic pace and the needs of society become increasingly sophisticated each day, 20 Microns future depends greatly on the success of its R&D efforts. Your company has therefore structured its R&D organization to function as efficiently as possible. Strategically distributed groups focus on particular technical fields and functions, but all work in concert to cultivate ideas and to develop and rapidly commercialize products in ultrafine Industrial Minerals, as identified by 20 Microns for high growth potential.

Our progress, over the years, is largely driven by our ability to develop a portfolio of high end products. Our philosophy has been to enter a market with a basket of products that provides us a larger market value and significantly minimizes our risks and reduces our dependence on a single product.

The diversified products portfolio was developed by the efforts of our R&D team under the able leadership of our Chairman.

The Companys Research & Development (R&D) activities focuses on providing cost-effective and sustainable solutions to support consistent growth of business. During the year under review, the Company carried out research & development activities in the field of cost effective Hydrous as well as Calcined Kaolin. Below are the mentioned grades.


Alsil Matt,

Alco 60,

Alsil GF 80,


Alsil Fine


Our commitment to quality - "Quality is not an act. It is a habit" At 20 Microns quality control laboratories, latest technological devices are used by our experienced team, every step of production process is being kept under continuous control with analysis and measurement procedures. We harness new technologies that can help us to keep the same quality in our products at all the time. Our laboratories are well equipped for various aspects of product characterization. Over the last year, our exceptional excellence in product quality and most advanced control instruments with ISO 9001:2015 and ISO 14001:2015 standards which are responsible for defining standards and harmonized measuring methods, together with their adherence around the world have placed us in the forefront in both the domestic as well as global market.

20 Microns relentless focus is to set a higher benchmark for quality to yield greater customer confidence and satisfaction while deepening our understanding of market-specific requirements.

Human Resources

Building tomorrow together- Great vision without great people is irrelevant.

HR emphasizes primarily on its strategic contributions and its closer alignment to business goal. HR works to ensure that a companys most important asset - that is human capital - is being nurtured and supported through the creation and management of programs, policies and procedures and by fostering a positive work environment through effective employee-employer relations. HR makes every effort to understand what candidates and employees do best and put them into roles where they can play to their strengths as much as possible.

Companys constant endeavor has been to invest in people and processes to improve human capital for the organization and service delivery to its customers. Attracting, developing and retaining the right talent will continue to be a key strategic initiative and the organization continues to be focused on building up the capabilities of its people. HR strives to provide a healthy, conducive and competitive work environment to enable the employees excel and create new benchmarks of productivity, efficiency and customer delight.

20 Microns is not just a company, but it is one big family and every member of this family is dedicated to its growth and success. With a well-nourished feeling of belongingness, the employees are not only satisfied but also encouraged enough to give their best at all the time. They are always inspired to hold a greater vision for a better tomorrow and are helped to improve their skills and invest in themselves. We, at 20 Microns, help each and every employee to know and understand their worth by adding values to whatever they do.

Working Together for Better Tomorrow

Employees at 20 Microns are motivated not only by monetary benefits and perks but also by providing a balanced work-life environment, regular appraisals, healthcare support, etc. With our transparent and well-organized HR policies, we thrive to create a direct correlation between the performance and reward. Achievements are being aligned with the organizations objectives so as to build a successful and sustainable organization.HR persistently works on upgrading skills of employees by providing them to participate in Training, Seminars, and Workshops utilizing External and Internal sources.

HR Department works hard to promote greater values of working together in a team and cultivates a feeling of respect for each other and individual ideas. Everyone is equally important and special, this is what we feel and believe. The HR team maintains a healthy connection with the employees and asks them for their suggestions, ideas and valuable inputs regularly. Every employee of the company bears a clear vision to achieve common goals together for the company, therefore, increasing the importance of teamwork. Employees are an important part of the company and are treated as active partners in the success stories of the company. Both their physical as well as mental health is equally important for the company. Keeping a happy and joyous environment in the company helps employees to stay mentally light, healthy and ambitious. Also, the company provides a well-equipped Fitness Center for all employees along with its Trained Staff to assist each one, Cardio and Strength training equipment, Fitness assessments, etc. Moreover, Regular Health check-ups along with nutrition guidance can help to keep employees in good health, which in turn has a positive effect on the entire workforce, thus increasing productivity.


Celebration of the World Environment Day : 5th June, 2019 :-

"We cant stop breathing – but we can do something about the quality of Air that we breathe "

"Beat Air Pollution"

Each World Environment Day is organized around a theme that focuses attention on a particular pressing environmental concern. The theme for 2019, "Beat Air Pollution", is a call to action call, to combat this global crisis.

For healthy living, environment plays an important role. It provides us air, water, food, etc. It is correctly said that ‘the difference between animals and humans is that animals change themselves for the environment, but humans change the environment for themselves. Environment is just like our neighborhood; its surrounding conditions influence us and modify growth and development.

We are committed to make our manufacturing units cleaner and greener place. On the celebration of world environment day more than one thousand tree plant have been planted at all the locations of your Company.

Your Company has been fulfilling the global environment standard.

Celebration of the 49th National Safety Day/Week 4th March to 10th March 2020 :-

The National safety day is observed every year on 4th March and this year i.e. in 2020, we celebrated the same day as 49th National Safety day organized by 20 Microns groups of company. The National safety day/week is celebrated throughout the country to reiterate the importance of safety and create awareness throughout all the locations of the Company. The theme of National Safety day 2020 was "Enhance Health & Safety Performance by Use of Advanced Technology".

To promote use of participative approach by employers by involving their employees in H S E activities as a part of which we have conducted emergency fire mock drills, safety rally for awareness of all employees with our interested party and also demonstrating various safety techniques by way of Posters and painting competitions for our employees, were also organized to mark the day.

Your Company conducted basic awareness program on COVID-19 The disease causes respiratory illness (like the flu) with symptoms such as a fever, cough and in more severe cases, difficulty in breathing. The protective measures were explained thoroughly to combat the pandemic. You can protect yourself by washing your hands frequently, avoiding touching your face, and avoiding close contact (2 meter or 6 feet) with people who are unwell.

Surveillance is a core activity in the practice of occupational health and your Company has been constantly endeavoring to comply and complete in so far as its office and plants people are concerned. Your company arranges to conduct physiological assessment of individual workers, or the public health review of the health status of groups of workers. Steps in setting up a specific occupational health surveillance program. Last year your company included 450 employees and workers for medical examination.

Health surveillance can either take the form of periodic clinical and/or physiological assessment of individual workers or the public health review of the health status of groups of workers. For the individual, the rationale is to detect adverse health effects resulting from occupational exposures at as early a stage as possible, so that appropriate preventive measures can be instituted promptly. This is a form of secondary prevention. The findings from health surveillance can be used to indicate the absence of a significant hazard, the adequacy of control measures, individuals at increased risk, baseline medical data, benchmarks for preventive action, and opportunities to provide health education. Another function is to quantify the incidence and prevalence of occupational and work related disease.

Risk and Concern

A detailed note on Risk Management implementation is given in Boards Report which forms part of this annual report.

Internal Control Systems and their adequacy

A detailed note on Internal Control Systems and their adequacy is given in Boards Report which forms part of this annual report.

Financial Performance and Key Financial Ratios Financial Performance (Standalone)

The standalone financial highlights for FY 2019-20 are as follows:

Financial Performance

(Rs. in Lakhs)

2020 2019 Variance
Revenue from operations 49005.19 43,566.78 5438.41
Profit before exceptional items and taxes 3514.22 3,393.94 120.28
Profit before tax 3514.22 3,393.94 120.28
Profit after tax 2496.65 2,171.28 325.37

Key Financial Ratios:

Ratios 2020 2019 Change %
Debtors Turnover Ratio 60.80 56.57 7
Inventory Turnover Ratio 6.53 6.18 6
Interest Coverage Ratio 2.75 2.63 5
Current Ratio 1.14 1.11 3
Debt Equity Ratio 0.65 0.77 -16
Operating Profit Margin [%] 9.72 11.97 -19
Net Profit Margin [%] 5.02 4.98 1
Return on Net Worth [%] 13.77 14.3 -4

Disclosure of Accounting Treatment

The Company has followed all relevant Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 while preparing Financial Statements.

Cautionary Authority Statement

Statements in this Management Discussions and Analysis Report describing the Companys objectives, estimates and expectations may be "forward looking statements" within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.

Compliance of the Corporate Governance Code is given below which forms part of the Boards Report for the year 2019-20: