Amrutanjan Health Care Ltd Directors Report.

Your Directors have pleasure in presenting the Eighty Fourth (84th) Annual Report of the Company along with Audited Financial Statement for the year ended March 31,2021.

1. FINANCIALRESULTS

Your directors are pleased to furnish below the financial results for the year ended 31 st March, 2021.

Particulars

Forthe CurrentYear ended31stMarch,2021

ForthePreviousYear ended31stMarch, 2020

Profit before Interest and Depreciation 8,607.42 3,903.43
Less:
Interest 50.00 22.10
Depreciation &Amortisation 366.97 416.97 435.94 458.04
Profit before tax 8,190.45 3,445.39
Provision for taxation
-Income Tax (1,973.00) (943.00)
- Deferred Tax (98.41) 5.94
Profit fortheyear 6,119.04 2,508.33
Add: Net other comprehensive income not to be reclassified subsequently to profit or loss (net of tax) (2.80) (29.37)
Total compreshensive income forthe year 6,116.24 2,478.96
Surplus from previous year brought forward 10,513.13 9,144.20
Profit forAppropriation 16,629.37 11,623.16
Appropriations:
Final Dividend Paid - 306.92
Taxon Final Dividend - 63.09
Interim Dividend Paid 467.70 613.84
Taxon Interim Dividend - 126.18
Balance ProfitCarried to Balance Sheet 16,161.67 10,513.13
16,629.37 11,623.16

Note : The Sales/revenue wherever referred in Boards Report and MDA denotes Gross Sales (net sales plus taxes and discounts) unless explicitly mentioned as Net Sales.

2. STATEOFAFFAIRS

The year started amidst a strict nationwide lockdown in India with tough restrictions on economic activity and mobility due to COVID-19 pandemic which tested the strength of the very fundamentalsofIndia.

However, your Company has witnessed a 27.29% growth in turnover during the financial year 2020-21 with total Gross Sales of Rs.36,778.15 Lakhs as against Rs.28,892.00 Lakhs during the previousfinancialyear

Business Performance at a Glance -OTC& Beverage

Particulars 2020-21 2019-20 Change%
Production -Tonnes 1,052.40 914.21 15.12
- Kilo Ltrs 2,995.87 4,838.68 (38.08)
Sales Volume -Tonnes 1,028.12 812.97 26.46
- Kilo Ltrs 2,677.99 3,713.95 (27.89)
Met Sales (Rs. in Lakhs) 33,284.40 26,147.67 27.29
Operating EBITDA (Rs. in Lakhs) 8,607.42 3,903.43 120.51
Operating EBITDAMargin(%) 25.86 14.93 73.21

3. DIVIDEND

i. Interim Dividend:

Your directors have declared two interim dividends for an aggregate Rs. 1.60 per equity share of Re. 1/- each for the year 2020-21. Details of the Interim Dividend paid are given below:

S. No. Date of Board Meeting approving the Dividend Rate of Dividend (inRs.) %of Interim Dividend to Face Value Total Amount of Interim Dividend (Rs.inlakhs) Date of Payment
1. Movember 12,2020 0.80 80% 233.85 December 01,2020
2. February 11,2021 0.80 80% 233.85 March 04, 2021
TOTAL 1.60 160% 467.70

ii. Final Dividend:

The Board, in its meeting held on 27th May 2021,has recommended a final dividend of Rs. 2.60/- per equity share of face value of Re. 1/- each for the approval of the shareholders in the upcoming Eighty Fourth (84th ) Annual General Meeting. The dividend pay-out is as per the Dividend Distribution Policy formulated and adopted by the Company pursuant to Regulation 43Aof the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and any amendments thereto. The Dividend Distribution Policy is available on the website of the company which is accessible through the web link

httns /AAAAAA/amrutanjan com/pdf/DIVPOl ICY.IIIM21 pdf

The members who are holding shares as on September 16,2021 in dematerialised mode and the members holding shares as on September 23, 2021 in physical mode will be paid final dividend within 30 days of declaration of the dividend. With respect to the shares held in dematerialised form, it would be paid to the members whose names are furnished by MSDL and CDSL as owners on the record date.

4. RESERVES

During the financial year 2020-21, no amount has been transferred to any reserves.

5. SHARECAPITAL

The paid-up equity share capital as on March 31, 2021 was Rs. 2,92,30,630 (2,92,30,630 shares of Re. 1/- each).

(i) Directors state that no disclosure or reporting is required in respect of issue of equity shares with differential rights as to dividend, voting or otherwise as there were no transactions on these items during the year under review:

(ii) Amrutanjan Health Care Limited Employees Stock Option Scheme 2020 (the "Scheme 2020")

Pursuant to approval given by the shareholders in the AGM held on September 23,2020, the Board has been authorised to introduce, offer, issue and provide Options convertible into equity shares to eligible employees of the Company under the Scheme 2020. In compliance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014, as amended from time to time, your Board had authorized the Nomination and Remuneration Committee (Compensation Committee") to administer and implement the Scheme 2020 including deciding and reviewing the eligibility criteria for grant and issuance of stock options under the Scheme. The maximum number of shares under the Scheme 2020 shall not exceed 2,92,306 equity shares of Re.1/- each being 1.00% of the paid-up equity share capital of the Company. The shares under the Scheme 2020 shall be issued by way of secondary acquisition of shares by Amrutanjan Health Care Limited ESOP Trust. Applicable disclosures relating to Employees Stock Options as at March 31,2021, pursuant to the Companies Act, 2013 read with Companies (Share Capital and Debentures) Rules, 2014 and SEBI (Share Based Employee Benefits) Regulations, 2014 as amended from time to time, are set out in the AnnexureA to this Report and the details are also placed on the website of the Company at www.amrutanjan.com.

Statutory Auditors certificate to the effect that the Scheme of the Company has been implemented in accordance with the SEBI (SBEB) Regulations, 2014 and as per the resolution passed by the members of the Company, as prescribed under Regulation 13 of the SEBI (Share Based Employee Benefits) Regulations, 2014, has been obtained and shall be made available for inspection during the Annual General Meeting of the Company electronically.

6. DEPOSITS

During the year, your Company has not accepted any deposits within the meaning of provisions of Chapter V (Acceptance of Deposits by Companies) of the CompaniesAct, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014 and was not holding any amount under DepositAccount ason March 31,2021.

7. FINANCE

The Profit before tax for FY21 was Rs. 8,190.45 lakhs compared to Rs. 3,445.39 lakhs for FY20. The Investments, Fixed Deposit, Cash and Cash equivalents have grown from Rs. 10,893.91 lakhs (as at 31st March, 2020) to Rs. 19,578.43 lakhs (as at 31st March, 2021).

8. PARTICULARS OF LOANS, GUARANTEES ORINVESTMENTS

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014andas required under Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 [SEBI LODR] are givenbelow:

Particulars Ason31st March, 2021 As on 31st March, 2020
Loans (Secured & Unsecured) - -
Investments (Rs. in lakhs) 1,783.98 1,820.64
Guarantees (Rs. in lakhs) 205.44 213.24

The total amount stated above does not exceed the limit mentioned in Section 186 ofCompaniesAct, 2013.

9. MANAGEMENT DISCUSSIONANDANALYSIS (MDA)

In terms ofregulation 34 read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time, the MDA capturing the financial performance, industry trends and other material changes with respect to your company is presented in "ANNEXURE B" of this Report.

10. CORPORATEGOVERNANACE

Pursuant to regulation 34 read with Schedule V of the SEBI (LODR) Regulations, 2015 (SEBI LODR), the following Reports/ Certificatesformpartofthis report:

a) The Reporton Corporate Governance ("ANNEXURE C")

b) The declaration by the Managing Director & CEO regarding compliance by the Board members and senior management personnel with the CompanysCode ofConduct

c) The PCS Certificate on Corporate Governance

d) The PCS Certificate on Directors eligibility

The Certificate duly signed by the Chairman & Managing Director and the Chief Financial Officer on the Financial Statements of the Company for the year ended March 31,2021 as submitted to the Board of Directors at its meeting held on May 27 2021 pursuant to

Regulation 17(8) of the SEBI LODR is also provided under the Corporate Governance Report.

11. BUSINESS RESPONSIBILITY REPORT (BRR)

As mandated in Regulation 34(2)(f) ofthe SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015, the Business Responsibility Report forms part of the Boards Report as ANNEXURE D. The report on the nine principles of the National Voluntary Guidelines on social, environmental, and economic responsibilities of business as framed by the Ministry of Corporate Affairs is provided inrelevant sections ofthe BRR.

12. DIRECTORS, KEY MANAGERIAL PERSONNEL & COMMITTEES

(a) Non-executiveDirector:

In accordance with the provisions of the CompaniesAct, 2013 and the Articles of Association of the Company, Dr. Pasumarthi S N Murthi (DIN: 00051303), Non- Executive Director, retires by rotation at the upcoming Eighty Fourth (84th) Annual General Meeting and being eligible, offers himselffor reappointment.

Regulation 17(1A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 prescribes that no listed entity shall appointa person orcontinue the directorship of any person as a non-executive director who has attained the age of seventy-five years unless a special resolution is passed to that effect.

In compliance with the above, approval / sanction of the members is being sought at thisAGM to re-appoint Dr. Pasumarthi S N Murthi (DIN 00051303) notwithstanding that he has already attained the ageof75years.

(b) Independent Directors:

Mr. V. Swaminathan, Independent Director of the Company, has resigned from the Board on 12th December 2020 due to personal reasons and Dr. HBN Shetty, Independent Director of the Company, has expired on 28th April 2021. Mr. RajaVenkataraman and Mr. S. Muralidharan have been appointed as Additional Directors by the Board on 27th May 2021 and 29th June 2021 respectively.

The Board at its meeting held on 27th May 2021 appointed Mr. Raja Venkataraman (DIN: 00669376) as an Additional and Nonexecutive Independent Director of the Company, based on recommendation of the Nomination & Remuneration Committee effective from 27th May 2021 and who holds office up-to the conclusion of the forthcoming Annual General Meeting. The Company has received notice from a member under Section 160 of the CompaniesAct, 2013 signifying his intention to propose Mr. Raja Venkataraman as a candidate for the office of Director. The Company is seeking approval of the shareholders for the appointment of Mr. Raja Venkataraman as Non-executive Independent Director up to 26th May 2026 at the forthcoming Annual General Meeting.

The Board at its meeting held on 29th June 2021 appointed Mr. Muralidharan Swayambunathan (DIN: 09198315) asanAdditional

and Non-executive Independent Director of the Company, based on recommendation of the Nomination & Remuneration Committee effective from 29th June, 2021 and who holds office up-to the conclusion of the forthcoming Annual General Meeting. The Company has received notice from a member under Section 160 of the Companies Act, 2013 signifying his intention to propose Mr. Muralidharan Swayambunathan as a candidate for the office of Director. The Company is seeking approval of the shareholders for the appointment of Mr.Muralidharan Swayambunathan as Nonexecutive Independent Director up to 28th June 2026 at the forthcoming Annual General Meeting

The independent directors have affirmed that they satisfy the criteria laid down under section 149(6) of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The terms and conditions of appointment of the Independent Directors are placed on the website of the Company www.amrutanjan.com. The details of familiarization programme conducted to the Independent Directors are available attheweblink https://www.amrutanjan.com/pdf/FR.pdf.

(c) KeyManagerialPersonnel (KMP):

Pursuant to the provisions of Section 2(51) of the Companies Act, 2013, the Key Managerial Personnel of the Company are - Mr. S Sambhu Prasad, Chairman & Managing Director, Mr. N Swaminathan, Chief Financial Officer and Mr. M Srinivasan, Company Secretary. There was no change in the KMPs during the year.

(d) Committees:

As on March 31, 2021, the Board had four committees: the audit committee, the corporate social responsibility committee, the nomination and remuneration committee (compensation committee) and the stakeholders relationship committee. The Board, at its meeting held on June 29, 2021, instituted the Risk Management Committee.

During the year, all recommendations made by the committees were approved by the Board.

13. BOARDMEETINGS

During the year, four (4) meetings of the Board of Directors were held. The complete details of the meetings are furnished in the Corporate Governance Report. The intervening gap between any two Meetings was less than 120 days in compliance with the provisions of Section 173(1) of the Companies Act, 2013 except where extensions were granted by the Regulatory during lockdown.

14. MEETING OF INDEPENDENT DIRECTORS

During the year, one (1) separate meeting of Independent Directors was held. In the said meeting, the independent directors assessed the quality, quantity, and timeliness of flow of information between the management and the Board and have expressed that the current flow of information and contents were adequate for the Board to effectively perform its duties. They also reviewed the performance of the non-independent directors and the board as a

whole and the performance of the Chairperson of the Company considering the views of Executive Director and Non- Executive Directors.

15. BOARDEVALUATION

Pursuant to Section 134 of the Companies Act, 2013 read with Rule 8(4) of the Companies (Accounts) Rules, 2014 and SEBI LODR, the Board of Directors during the year carried outan annual performance evaluation of its own performance, the directors individually (without participation of the relevant director) and the Chairman. The evaluation was carried through a structured methodology approved by the Nomination and Remuneration Committee. The criteria for performance evaluation have been detailed in the Corporate Governance Report. The outcome of the evaluation also forms the basis for the Nomination and Remuneration Committee while considering the re-appointmentof directors.

16. REMUNERATIONPOLICY

The Remuneration policy of the Company deals with the appointment of and remuneration to the Executive & Nonexecutive Directors, Key Managerial Personnel and Senior Executives of the Company including criteria for determining qualifications, positive attributes, independence of a director and other related matters. It aims to attract, recruit and retain exceptional talent and ensures that the remuneration is performance driven. The Policy can be accessed in the website of the Company through the link - https://www.amrutanjan.com/policy.html. The Nomination and Remuneration Committee has also framed a Policy on Board diversity appropriate to the business requirements of the Company, which inter-alia specifies optimum combination of Executive Directors, Non-Executive Directors and Independent Directors. The role of Nomination and Remuneration Committee is to ensure that the Policy on Board diversity is considered while recommending the appointment of new directors on the Board of the company.

The details of remuneration paid / payable to the directors for the financial year 2020-21, are furnished in the Corporate Governance report annexed to this report.

17. WHISTLEBLOWERMECHANISM

Pursuant to Section 177(9) of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014 and Regulation 22 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, the Board of Directors had approved the Policy on Vigil Mechanism/ Whistle Blower and the same was further amended effective from 1 st April, 2019 to comply with the amended SEBI Insider Trading Regulations. The Policy is hosted on the website of the Company https://www.amrutanjan.com/pdf/Whistle%20Blower%20 Policy.pdf. The Policy inter-alia provides direct access to the Chairman of the Audit Committee.

Your Company hereby affirms that no director/ employee has been denied access to the Chairman of the Audit Committee and that no complaints were received during the year.

18. UNCLAIMED SHARES

The details of unclaimed shares held in Unclaimed Shares Suspense Account pursuant to SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 are provided in the Corporate Governance Report.

19. STATUTORYAUDITORS & THEIRREPROT

M/s. B S R & Co. LLP, Chartered Accountants, (ICAI Firm Registration No. 101248W/W-100022), were appointed as Statutory Auditors at the conclusion of Eightieth (80th) AGM held on September 21, 2017, for a period of five (5) years till the conclusion ofthe Eighty Fifth (85th) Annual General Meeting of the Company.

The Statutory Auditors report to the shareholders on the financials for the year ended March 31, 2021, does not contain any qualification, observation, or adverse comment except for remarks in Clause 2(A)(e) of their report. Members may please note that the Company could not obtain annual declarations from Dr. HBN Shetty, Non-executive Independent Director until 28th April2021, including a confirmation that he was not disqualified from continuing as a director, due to his continuous hospitalization during March & April 2021. Dr. HBN Shetty passed away on 28th April 2021.

20. SECRETARIALAUDITOR & THEIRREPORT

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 Company has appointed M/s SPNP & Associates, Practicing Company Secretaries, as its secretarial auditor to undertake the secretarial audit for FY 2020-21.

The secretarial audit report certified by the secretarial auditors, in the specified form MR-3 is annexed herewith and forms part of this report as "ANNEXUREE".

The secretarial audit report does not contain any qualifications, reservations, adverse remarks or disclaimer.

21. COSTAUDITOR

The Company is required to maintain cost records in respect of its OTC products and accordingly such accounts and records are made and maintained. Pursuant to Section 148 ofthe Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014, the Board of Directors at its meeting held on August 14, 2021 has appointed Mr. G. Thangaraj (Registration No. 100464), Cost Accountant, as the Cost Auditor to conduct the cost audit with respect to OTC business of the company for the financial year ending March 31,2022.

22. CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES

The CSR activities carried out by your Company during the financial year 2020-21 were mainly focused on

(a) Animal Welfare

(b) Health and Sanitation

(c) Promoting Education

(d) Assistance in COVID-19 pandemic and

(e) Empowerment of Women. The activities undertaken by the Company are in accordance with Schedule VII ofthe Companies Act, 2013, the CSR Policy ofthe Company and as per recommendations of the CSR Committee.

The CSR Committee met twice (2) during the year to oversee the activities, programs, and execution of initiatives as per the predetermined guidelines of the Board and approve the amount to be spent towards CSR. The Board takes pleasure to inform that the Company has spent more than the mandatory amount to be incurred towards the CSR spend for the year 2020-21.

The main objectives of CSR policy ofthe Company are to help build socio-economic development of the nation through different projects and to ensure environmental sustainability. The Policy has widened scope to undertake all activities permitted under law. The CSR Policy is available on the website of the Company at the web-link https://www.amrutanjan.com/pdf/ahcl-csr-policy.pdf. The detailed report on CSR activities carried out during the financial year is given in "ANNEXURE F.

23. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

Disclosures pertaining to remuneration and other details as required under Section 197(12) ofthe Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in "ANNEXURE G".

24. ANNUAL RETURN

A copy of the Annual Return in the prescribed form referred to in Section 92(3) ofthe Companies Act, 2013 is available in the web- link www.amrutanjan.com/Annualreturn.htm

25. CONSERVATION OF ENERGY/TECHNOLOGY ABSORPTION AND FOREIGN EARNINGS/OUTGO

Information as required under Section 134(3)(m) ofthe Companies Act, 2013 read with Rule 8(3) ofthe Companies (Accounts) Rules, 2014 relating to Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo are furnished in "ANNEXURE H" to this Report.

26. RELATED PARTY TRANSACTIONS

No material significant related party transaction was made by the Company during the year with Promoters, Directors, Key Managerial Personnel, or other designated persons which may have a potential conflict with the interest of the Company at large and accordingly, applicability of Form AOC-2 does not exist. The related party transactions consist of remuneration, commission and sitting fees paid to the Executive and Non-executive Directors which are detailed in the financial statements.

27. DIRECTORSRESPONSIBILITY STATEMENT

To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3)(c) &134(5) ofthe Companies Act, 2013:

I. that in the preparation of the annual financial statements for the year ended March 31, 2021, the applicable accounting standards had been followed along with proper explanation relating to material departures.

II. that the directors had selected such accounting policies and applied them consistently and had made judgement and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs ofthe Company as at March 31,2021 andofthe profit ofthe Company for the year ended on that date;

III. that the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities

IV. that the directors had prepared the annual accounts for the financial for the financial year ended 31st March 2021 on a going concern basis.

V. that the directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.

VI that the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

28. INTERNALCONTROLSYSTEMSANDTHEIRADEQUACY

The Company has a proper and adequate internal control system to ensure that all the assets of the Company are safeguarded and protected against any loss and that all the transactions are properly authorised and recorded. Information provided to management is reliable and timely. Details of the same are provided in the Management Discussion and Analysis Report.

29. RISK MANAGEMENT POLICY

Your Company has a Risk Management Policy adopted by the Board. Periodical in-house risk audits were conducted to detect and mitigate the risks in a timely and effective manner. Management Discussion and Analysis Report contain more details on the risk management practiced by the company. Aseparate Risk Management Committee was constituted on 29.06.2021 consisting of Board and Non-board members.

30. MATERIAL CHANGESAND COMMITMENTSAFFECTING THE FINANCIAL POSITION OF THE COMPANY

There was no change in the nature ofthe business ofthe Company during the year. There were no material changes and commitments affecting the financial position ofthe company between the closure ofthe financial year 2020-21 and the date of this report.

31. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS ORTRIBUNALS

There are no significant and material orders passed by the Regulators or Courts or Tribunals which would impact the going concern status of the Company and Companys operations in future. No application has been made or proceedings pending under Insolvency & Bankruptcy Code, 2016 in respect of the Company.

32. ENHANCINGSHAREHOLDERSVALUE

Your Company believes that its members are among its most important stakeholders. Accordingly, your companys operations are committed to the pursuit of achieving high levels of operating performance and cost competitiveness, consolidating, and building for growth, enhancing the productive asset and resource base and nurturing overall corporate reputation. Your company is also committed to creating value for its other stakeholders by ensuring that its corporate actions positively impact the socio-economic and environmental dimensions and contribute to sustainable growth and development.

33. PREVENTION OF SEXUAL HARASSMENT POLICY

The Company has in place a Prevention of Sexual Harassment policy in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. An Internal Complaints Committee has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy.

During the year 2020-21, no complaints were received by the committee related to sexual harassment.

34. ACKNOWLEDGEMENT

The Directors wish to express their sincere appreciation to all the Government Departments, Bankers, Customers, Distributors, Suppliers and the shareholders for their co-operation and support extended during the year.

The Directors also wish to thank all the employees for their contribution, support, and continued commitment throughout the year.

Management Discussion and Analysis Report

(a) INDUSTRYSTRUCTUREANDDEVELOPMENTS Industry & Company Overview:

The FMCG industry was valued at around Rs.4.2* lakh crores for the year 2020. After registering a de-growth in Q1 20-21 due to onset of pandemic, the industry has revived in the subsequent three quarters. While Indias primary channel "Traditional Trade" has continued its domination after a dip in Q1 20-21, the E-Commerce business has stabilized itself with a healthy double-digit growth after hitting the peak in the first quarter of FY 20-21. Metros showed signs of revival in last quarter whereas the lower pop strata (less than 100K population towns and villages) continued its growth momentum. From the macroeconomic perspective, Index of Industrial Production moved into the positive territory from September 2020 onwards after being in red for 6 months due to the pandemic.(*Source: Nielsen).

The pandemic has driven various lifestyle changes in consumers who have become more health conscious with sustained hygiene habits picked up during COVID. This, duly supported by consumer promotions, led to the increased consumption of large packs in the essential home care and personal care categories (hand wash, hand sanitizer, bodywash etc.,).

Your company witnessed a significant expansion in the overall OTC business with notable contribution from 50ml large packs due to increase in width of distribution. In line with changing market dynamics, your company also strengthened its presence in the E-Commerce and ModernTradechannels.

Pain Management

The OTC business of your company has grown by 30.3% over the previous year and has achieved gross sales of Rs.346.75 crores this year. The General Trade (GT) format continues to be the top contributor at 87% of the overall turnover. With our continued focus on E-Com, the contribution from this channel has increased from0.6%to 1.3%and our efforts to further expand this channel will continue in the coming years aswell.

In domestic sales, the head segment continues to be the top most contributor at 72.9% of the total sales, an increase of 1.5% in contribution over last year. The pandemic has resulted in lifestyle changes including work from home and long working hours. Working population is required to spend extended time in front of the computer without much physical exercise and it has led to an increase in the incidences of headaches, back pain, body pain, etc. Also, more people have started using balms for steam inhalation and there is an increase in the frequency of usage for ailments such as headaches. The above change in consumer habits has contributed to the increase in demand for pain products particularly head range.

New Launch:Amrutanjan Pain Patch

AmrutanjanAdvanced Pain Relief+Patch is Indiasfirst Hydrogelpatch which gives you up to 8 hours of targeted pain relief. With a unique Hot Action Heat Therapy formula and Transdermal technology, its 100% ayurvedic active ingredient penetrates swiftly to reach the affected muscle and relieve the pain.

New Launch: Hand Sanitizer

Considering the rising needs of products in the health and hygiene segment, we have relaunched No Germs Hand Sanitizer during the year which has become an essential part of the household list. Amrutanjans No Germs Hand Sanitizer is highly effective in destroying 99.9% of germs. It keeps your hands clean and provides much needed protection with a pleasant lemon fragrance. It requires no water in usage.

Key Features and Benefits:

• Alcohol based gel which kills 99.9%ofgerms instantly

• Handytouseandeasytocarry

• Glycerine keeps the skin moisturized

MarketingActivities:

To drive the OTC business, several marketing interventions were undertaken during the financial year, which includes:

ImproveTrial Initiatives:

The objective of the programme was to drive awareness and trials. This large scale programme was rolled out across the country for the below products:

• Amrutanjan Pain Balm

• Amrutanjan Faster Relaxation Roll-On (AFRR)

• AmrutanjanAdvanced BackPain Roll-On (ABPRO)

• AmrutanjanAdvanced Joint Muscle Spray (AJMS)

The programme was conducted at strategic touchpoints which witnessed high footfalls of targeted consumers. The strategic touch pointswere 6 pilgrimage locations and 264 premium gated communities across key cities. About 1.1 crores+ people had the opportunity to see our stall thus creating awareness for our brands. Almost 2 lakh+ consumers have experienced our range ofproductsand its benefits.

Pilgrimage Locations:

A total of 6 locations were covered in 70 days during Q42020-21 covering a mass footfall of 1 Crore+ potential consumers. The top 6 crucial pilgrimage spots that were covered were Ganga Sagar Mela, Kumbh Mela Haridwar, Shri Kashi Vishwanath, Ajmer Sharif Urs, Tiruvannamalai, and Murdeshwar.

Gated Communities:

"round 264 piemium gated

communities across 15 majoi

sites oornm covemd as a part of the sampling programme

HcusehClds were engaged in

this interactive pain relief

activity and the. got an

opportunity to epeMence a range of oui pain relief products- Advanced Back

Pain Roll-On, Joint Muscle Spray, Amrutanjan Faster Relaxation Rollon and Balm. This exercise has helped us to enhance the image and popularity of our products apart from gaining on spot sales.

Amrutanjan Official Pain Relief Partner IQ t (Digital) IPL2020 Campaign:

In a first-of-its-kind association, your Cy company announced its association with

Qf Chennai Super Kings (CSK) as the teams Official Pain Relief Partner-Digital for the 13th edition of the IPL Cricket tournament which was held in the UAE from September -

~ November2020.

Through this campaign, we were able to create a high level of visibility for the flagship products namely:

• Amrutanjan Faster Relaxation Roll-On

• AmrutanjanAdvanced BackPain Roll-On

• Amrutanjan Advanced Joint Muscle Spray

We focused on the cricket crazy audiences through high impact display and video inventory on Hotstar, CricBuzzand ESPN.

We also partnered with The Quint to power their podcast with Ayaz Memon, a distinguished cricket journalist through 60 episodes. The traffic out of this campaign was driven to an exclusive shopping page on the Amrutanjan website, which ultimately resulted in the sales of Amrutanjan products across popular E-Commerce portals such as Amazon, Netmeds, PharmEasy, Sasta Sundarand Big Basket.

Key Results ofthe campaign:

• Reached over 4.6 crore potential users. Out of this, 3 crore users were from our top 15 cities

• Got4.6 crore video views which is 2X ofthe plan

• Diverted 2.9 lakh visitors to our shopping page. During the campaign period, we saw a 60% increase in sales from leading E-Commerce platforms.

Retail Visibility Drive:

As the official Pain Relief Partner (Digital) for CSK in the IPL (2020 edition), Amrutanjans branding was carried out with an in-shop poster activity across the 15 major cities including Chennai, Delhi, Mumbai, Pune, Hyderabad, and Bangalore. The coverage of this activity was extended to high weighted retail outlets and pharmacies that sold Amrutanjan products.

The communication message was focused on showcasing the lead CSK cricketers endorsing Amrutanjan Faster Relaxation Roll-On, Back Pain Roll-On and Joint Muscle Spray.

Electro+ ORS Rehydration

Rehydration was one of the key focus categories for your company in FY 20-21. DuetoCOVID, there was an increasing demand for health based and immunity boosting products including beverages. And Electro+ offers both the benefits of taste and health due to the presence of Fruit

Juice (Apple/ Orange), Electrolytes, Glucose and Vitamin C (Each bottle of 200ml Electro+ has a Recommended Daily Allowance of Vitamin C). To address the growing consumer demand for rehydration products, your company undertook various activities to drive consumer awareness, consideration and trials for Electro+.

1. TV Ad: Consumers are slowly becoming aware of the ill effects of

dehydration and the incidences of dehydration beyond illness. Tapping on this insight, the ^ ^

among consumers across

different segments and consumption occasions (working, sportsperson, people suffering from ailments, etc.) with an evocative sign-off line‘Rehydrate, Feel Alive.

2. In-Store Visibility: We brought

which also helped to dispense ul

the product. These bottle holders

enabled the products to be

distinctly visible at the outlets.

3. Digital Media: We further built awareness and consideration through digital media not only on search and social media but also on newage gaming platforms.

The integrated communication programme across TV Media, Digital Media, and In-store visibility yielded excellent results and the Electro+sales grew by 62.2% over the previous financial year. The contribution from Apple and Orange flavours remained almost the same at54%and 46%respectively.

WomensHygiene

In India, majority of women still resort to unhygienic methods of menstrual protection like cloth and ashes as they cant afford expensive sanitary napkins. Studies have shown that out of the 355 million menstruating women in India, about a third use only cloth for their menstrual hygiene management. Only 38%ofmenstruating girls in India spoke to their mothers about menstruation. Nearly 23 million girls drop out of school annually due to a lack of proper menstrual hygiene management facilities. This lack of menstrual hygiene is leading to serious health issues for women in the country. Nearly 60,000 cases of cervical cancer deaths are reported every year from India, two-third of which are due to poor menstrual hygiene. Accessibility and affordability ofhigh-quality products are major barriers to better menstrual health.

Your companys aim is to elevate this issue which is one of the major concerns in the country and provide hygienichigh-quality solutions atan affordable price point. Comfy Snug Fit sanitary napkin brings new hope to the womens hygiene market with its superior technology to provide high quality sanitary napkins atan affordable price starting at Rs. 20 per pack. The brand is striving to provide hygienic menstruation solutions to cloth users and will drive an awareness campaign to educate cloth users about the health and hygiene benefits of choosing sanitary napkinsoveracloth.

During FY 20-21, we deployed various activities to drive awareness and trials. While TV media built saliency, one of the strategic activities for the brand was the on-ground van activation in the states of Tamil Nadu, Andhra Pradesh and Uttar Pradesh. Through this programme, we created awareness and sampled Comfy Snug Fit to consumers residing in towns below 1 lakh population. We sampled 1.18 Lakh consumers across 287 towns in TN, 27,000 consumers across 76 towns in AP and 21,000 consumers across 59 towns in UP. This sampling exercise enabled repeat sales thus activating the retailers and wholesalers of those markets.

ModernTrade

Your company registered a strong growth in the Modern Trade channel despite the channel de-growing pan India due to restrictions during COVID. This year the Modern Trade channel has delivered Rs.31.58 crores with a growth of 26.4%. Over the last 7 years, the Modern Trade

channel has grown and shown encouraging results with a CAGR of 26.5 %. Amrutanjan continues to strengthen its leadership position (No 1 rank) in Modern Trade in the head category with a value market share of43.1 %in FY 20-21.

Distribution

Expanding the distribution reach has always been a key focus area of your company. We have invested in "Project M5K" and the key objective is to have 5000 distributors, super stockists, and sub stockists. Considering the wide range of our product categories encompassing head & body pain management, sanitary napkins and beverages, there is a need to engage with different types of distributors for each category. We appointed distributors with expertise across OTC, Pharma, and FMCG, thus meeting the infrastructure requirements of the respective categories. We will continue our efforts to expand the distribution footprint in the coming year as well.

All our continued investments in expanding the distribution have yielded results in last year. In fact, our distribution has reached 11.5 lac outlets across the country in Q4 FY 20-21 in the Rubefacients category which is highest ever in the history of the company. The Comfy Snug Fit brand also has reached 2.9 lac outlets across India.

Source:IQVIA(Note:Q1 FY20-21 was affectedduetolockdown) Metros Project

Metros have contributed to a significant proportion of our sales with 34%* of our total offtake (in the case of the overall Rubefacients

category, it is 24%*). To further strengthen the presence, your company launched an exclusive project targeting 15 towns including top contributing metros. The projectobjectives being:

a. Increase Per Dealer Offtake (PDO) of high growth SKUs in the existing outlets - Yellow 8ml, White 8ml, and Amrutanjan Faster Relaxation Roll-On

b. I ncrease direct coverage of outlets

c. Recruitnewoutletswhere the above SKUsare not present

To drive these objectives, your company undertook the following initiatives:

a. Allocate additional man-daysto these towns

b. Invest in TV, Print&Radio Media

c. Use Digital media for Amrutanjan Faster Relaxation Roll-On, Amrutanjan Back Pain Roll-On and Amrutanjan Joint Muscle Spray

d. Visibility drive across specific E-Com sites

e. Enhanced visibility atthe store level

f. Recognition of the sales team byway of awards and incentives

All these activities started yielding results and your company will continue to invest in this project in the coming year as well.

‘Source: IQVIA

E-Commerce

Our products are currently available in leading E-Commerce channels viz., Amazon, Flipkart, Sasta Sundar, Big Basket, Netmeds, Pharm Easy, Medlife, Reliance Jio Mart, Medplus, Apollo, D Mart, Walmart, Fresh-To-Home, ShopX.

Our sales from the E-Com channel have almost tripled in 2020-21 registering sales of Rs.4.42 crores. Sales in this channel has grown month-on-month, indicating an encouraging offtake for our products. Its contribution to the overall business has doubled from 0.5% to 1.2% With the growing thrust on E-Commerce, your company is aiming for 2.6% contribution from this channel in the coming year from the existing chains and through expansion across chains.

Exports

Your companys exports sales nearly touched Rs 7.0 crores, which is the highest in the last 8 years despite challenging conditions due to COVID. Africa continues to be our largest contributing region at 77% and it witnessed a growth of 70.9% in FY 20-21 over the previous year. The contribution from the Middle East also increased during FY20-21 to 11% from 8% in the previous year. The Head segment is the largest contributor to the overall export business at 50% followed by body business at 36%.

Supply Chain Management (SCM)

The financial year 2020-21 with scattered COVID 19 lockdowns posed a never-before challenge for the entire supply chain of FMCG industry starting from raw material sourcing to delivery of finished goods at depots.

During the period of lockdown, strategic plans were made and implemented to keep sufficient stock of key raw materials for OTC products wherever available with the suppliers to avoid stock-out situation in the production units. This helps to ensure uninterrupted supply of materials to meet the production needs in the Plants. Also the exhaustive field visits made in the previous years has helped us to identify the real potential manufacturers/suppliers of key materials like Menthol Crystal. The business has reaped full benefit of sourcing the materials from these suppliers during the financial year combined with the advantage of favourable supply demand equation in essential oils.

OTCSegment

FinancialYear 2020-2021 2019-2020
Net Sales 31,426.35 24,077.67
Material Cost 12,959.71 10,531.47
41.24% 43.74%

Considering our long term business relationship, the suppliers of packing materials have also given us priority on their supplies when their operations had commenced immediately after the lock down. We were also able to contain the overall spend on packing materials when compared to previous financial year in spite of increase in the price of packing materials in Q4/20-21. This was due to steep increase in input materials like, plasticresins, poly films, kraftpaper, paper board, etc.

Resin

Price-Rs/Kg

Q4/2020-2021 Q4/2019-2020
PP 106.73 83.23
PE 97.74 75.05

The beverage division has lost the season duetoCOVID19 lock down. Packing Materials prices were increased due to increase in polymer price in Q4/20-21. In addition, the cost of mango pulp covered during season was also higher than the purchase price of the previous year. These have resulted in more spend in RM/PM during the year.

Manufacturing process had to undergo several safety precautions, hygiene practices, social distancing, etc. to prevent virus spread within the Units. The Plant operationswere carried out by strictly following our own COVID protocols. Our Plant has managed to produce and supply the products to meet the ever increasing demands of the market by maintaining close monitoring ofdemand & supply status.

On Logistics front, the available limited transport services were effectively managed to deliver stocks at all depots & beyond from all our manufacturing locations, when movement was totally hampered due to national level lock down followed by state level isolated lock downs. Though logistics spend during lock down was high due to market condition, we have contained the total cost of logistics within the budget during the year. Depot operation was swiftly put back on track at all locations with necessary clearance from competent authorities without compromising personal safetyofouremployeesin depots.

FinancialYear 2020-2021 2019-2020
OTC Segment
Net Sales 31,426.35 24,077.67
Freight and handing charges 739.32 568.68
2.35% 2.36%
F&B Division
Net Sales 1,708.32 1,829.92
Freight and handing charges 221.14 231.12
12.94% 12.63%

Information Technology

Information Technology continues to play a vital role within Amrutanjan focusing business driven objectives for all key functions like Sales, SupplyChainManagementandFinance.

SalesForceAutomation (SFA) Project -enabledourSalesteamtogo paperless in 2021. All 500+ sales personnel, in the general trade channel, booked sales orders online successfully, using the SFAAzure Cloud hosted mobile application. The PAN India launch of the SFA helped us track all outlet level secondary sales and currently provides detail insights to lines sold, salesman attendance & efficiency. Salesman incentives are also calculated based on daily route plans and

travels of sales representatives. We are continuously investing and improving the SFAprogram to drive our business objectives and growth.

Enterprise Resource Planning (RAMCO ERP) Upgrades to enhance some of the functionalities was completed during the year to effectively plan and track production manpower usage. It has helped the SCM team to maximize resource utilizations which has resulted in a lower cost ofoperation in our plants.

SAP Implementation - A deep stick study was completed in 2020 to identify the gaps in the current Ramco ERP system and also find a suitable new ERP system which can help in fulfilling the business goals and meet our growing demands, across all functions. SAP India was invited to conduct a detail assessment and system study of AHCL processes. Based on the detail system study report, Amrutanjan has drawn up the plan to start the implementation of SAP S4 HANA during 2021-22. The project is planned to Go-Live by FY22-23.

The Enterprise Business Intelligence & Analytics (BI) program is aimed to build a digital organization with a Go-Digital vision. We have taken a big leap by setting up the foundation of a data warehouse which is highly connected to allAHCLdata sourcesand can serve as the future one-stop solution for all business IntelligenceandAnalytical needs.

Amrutanjan e-commerce web store is nearing its India launch to step- up our vision of going global. We have invested in developing an exclusive Amrutanjan e-commerce digital platform to directly serve our customers and deliver the freedom to purchase from the comfort of their homes. The newwebstore will refresh our digital presence and build our brand identity.

Comfy Mobile App is a new offering for the Indian Women, also planned for quick launch. The mobile application, will extend our e- commerce platform to enable women using mobiles to protect their privacy by online purchase of Comfy sanitary and other Amrutanjan products. Additionally, the app will help to record and track their menstrual cycles along with their other health conditions like pain h istory, mood swingsetc.

Commencement of the Human Resource Management System (HRMS) project will greatly improve the accuracy and efficiency of our HR functions by using time tested products from Darwinbox & Pay Review. The project is planned to be fully operational by FY22-23. The project is aimed towards employee satisfaction and HR reporting and control. It has, among other things, a user friendly Employee Self Service Portal and a central repository ofall employee data. Modules for recruitments, leave & attendance tracking, payroll, performance management system(PMS) & compensations management are few of the unique features in the Hire to Retire process which will get digitized with theprojectrollout.

The DR/DC & CCTV Implementation Program is one of the key

initiativesundertaken to improve IT infrastructure. Setting up ofour Data Center(DC) and the Disaster Recovery (DR) Center will comprehensively address the future risks of disasters thereby promising uninterrupted business continuity. Setting up the CCTV monitoring and backup infrastructure for surveillance of all Amrutanjan warehouse and factory locations will help us prevent accidents and proactively act on security threats and risks.

Quality and Safety inAmrutanjan

The main contributing factor for the success of brand Amrutanjan over a century is that it delivers quality products which always meet or exceed customers expectations. Quality is not just another process but a culture which is in-built in our all activities and is based on quality managementprinciples.

Our Quality Assurance and Control is fully committed to safeguard the consumers well-being. All operations associated with the manufacture of our products are not only meeting regulatory standards, but also ensures safety and efficacy of the products. The quality inspection excellencies demonstrated at our production units allow only outputs which are of superior quality.

The manufacturing processes are designed to be in line with the Good Manufacturing Practices as per Indian Drugs & Cosmetics Act, Quality Management system (ISO 9001 for OTC division), Food Safety Management Systems (ISO 22000 for F&B division) and six sigma methodology.

We do follow extensive Vendor (External Service Provider) Qualification, audits at suppliers plants and inputs quality monitoring to achieve best quality output thus maintaining customer trust in our products.

The Comfy brand sanitary napkins marketed by us were procured from a state of the art technology plant. While the quality is ensured as per the standards at Plant level, we also do the random check to confirm that the products are meeting high standard of in-house specification.

Our uniqueness is reflected in the design of the containers and packaging materials which are pilfer proof to protect from counterfeit products.

The Plants have taken all preventive measures to facilitate safe and conducive environment for employees who returned to work after the lockdown under COVID-19 circumstances. Even though COVID-19 brought existential challenges, Amrutanjan has remained confident in its commitment to the customers and all stakeholders.

Advanced Pain Management Centre (APMC)

Amrutanjans Advanced Pain Management Centre (APMC) at Chennai has got the NABH Certification (National Accreditation Board for Hospitals & Healthcare providers) under pre Accreditation entry level small healthcare programme for non surgical pain management services.

The hospital strictly adheres to the NABH guidelines to ensure patients safety and process standards in all its functions. The entire procedures and processes followed in APMC is subjected to periodical audit by inhouse Quality Team.

(b) OPPORTUNITIESANDTHREATS:

The pain management segment of the OTC business continues to be a significant contributor. The chart below indicates that head and body categories contribute to a majority of the companys sales (80%) and will continue to be the lead revenue contributor for future growth.

The share of revenues from West and North Zones remains low and will

be given more attention by the business going forward. Towards this,

specific plans have been put in place by category and brands.

The following are the threats that we foresee:

• Low penetration of AHCL products in P3 markets. Strong competition makes it difficult to penetrate

• Frequent changes in regulatory compliances impacting business plans

• Steep increase in packaging material costs which impacts the margins

• Due to pandemic, there is a strain in the entire supply chain in terms ofrawmaterial availability, delivery of goods on time etc.,

The following will be the growth drivers for the company in the coming year:

• Build distinctiveness to the existing brands by addressing consumer needs

• Expansion of pain business in Western and Northern Zones

• Further strengthening the existing markets by introducing new products through‘The Amrutanjan Way

• Continue improving distribution reach by setting a specific milestone for each year. Scale-up distribution with specific targets on the appointment of distributors, super stockists, and substockists

• Emerging D2C channel

• Roll out trial generation programmes across consumer touch points

• Specific growth plans to drive MT and E-Com

• Invest in brand building - Mass media, Digital, Trial generation, and Merchandising

• Invest in Digital strategically for brands like AFRR, BPRO, Pain patch, Electro+, Comfy Ultra

• Scaling up of new categories launched in the past 3-5 years

• Focus on maintaining the Gross margin ~60%

• Build a higher price point portfolio with superior offerings in the Womens hygiene category.

OTC Gross Margin

Key raw material prices including menthol were lower when compared to FY20. Gross Margin has improved when compared to FY20 due to lower raw material prices & better absorption of fixed costs on account volume growth.

(c) SEGMENTWISEPERFORMANCE

2020-2021 2019-2020
OTC:
Net Sales 31,426.35 24,077.67
SegmentResults 7,868.78 3,177.02
Beverages:
Net Sales 1,708.32 1,829.92
SegmentResults (350.16) (156.22)
Total Capital Employed 21,556.47 15,942.56

(d) OUTLOOK

The FMCG industry is expected to witness a flat growth this year also due to COVID Wave 2 and the possible Wave 3. The pandemic has impacted the supply chain dynamics and the stocking pattern by the retailers, which is likely to stay for rest of the year. Rural market is expected to continue the growth momentum. On top of it, this year is expected to have a good monsoon and likely to have positive effect on earnings ofagrarian households and keep the rural sentiments upbeat. E-Commerce has now settled into a growth trajectory and it is likely to continue for the rest of the year. The possible wave 3 and lockdowns (if any), will test the agility of this channel. Ensuring availability and last mile delivery willbe the key to maintain high growth inthis channel. Amrutanjans product portfolio, with "pure, health and essence" in its quality and utility, has responded positively to the recent wave as well and hasshown little impactto the newnormal.

(e) RISKANDCONCERN

The areas of concern in short term could be the impact of the situation arising out of the current pandemic and the resultant lockdown that is

announced from time to time as a control measure. Any further spreading of the disease and its economic fallout could influence some ofourproductsrange.

The unpredictable fluctuation in key raw material prices, risk of new product launch not panning out, supply chain disruptions, major changes in governmentpolicies & regulations are some of the long-term risks associated with our business.

(f) INTERNALCONTROLSYSTEMSANDTHEIRADEQUACY

The adequacy of internal control systems and the processes are being audited every quarter in select areas by a qualified external auditors and reported to Audit Committee and the Board. The follow up action on the observations have been reported back with a timeline and status. Statutory compliances are monitored through a fully automated inhouse alert system and adherence is certified by the Heads of Departments every quarter.

The Company has also established an In- house Internal Audit Wing reporting to the Chairman & Managing Director which conducts audit on internal checks and processes and provides suggestions for further improvement in each area audited. The in-house team coordinates with the Internal Auditors to ensure successful closure of their audit observations. The internal auditors have a free right to access to all requiredinformation.

(g) DISCUSSUION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Companys financial performance with respect to operational performance can be enumerated as below:

2020-2021 2019-2020
Net Revenue from Operations 33,284.40 26,147.67
Other Income 1,132.01 832.13
Total Income 34,416.41 26,979.80
Total Expenditure 25,808.99 23,076.37
PBIDT 8,607.42 3,903.43
Depreciation 366.97 435.94
PBIT 8,240.45 3,467.49
Interest 50.00 22.10
Profit before tax 8,190.45 3,445.39
Current/EarlieryearIncomeTax 1,973.00 943.00
DeferredTax 98.41 (5.94)
Profit fortheperiod 6,119.04 2,508.33
Othercomprehensive Income (netoftax) (2.80) (29.37)
Total compreshensive income for the period 6,116.24 2,478.96
Key Financial Ratios (expresses as %)
PBIDT/NetRevenuefrom Operations 25.86% 14.93%
PBIT/ Net Revenue from Operations 24.76% 13.26%
PBT/Total Income 23.80% 12.77%
PAT/Total Income 17.78% 9.30%

(h) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLEEMPLOYED

Our HR team plays a vital supporting role in making sure that Amrutanjan realises its business objectives. We aim to bring high level of enthusiasm, energy and motivation among the employees which are essential to achieve greater productivity, creativity and innovation.

Learning and Development:

Your company has adjusted its approach to meet the Learning and Development needs of our employees by imparting training through ELearning Platform as physical class rooms training may not be an option for some time now due to frequent lockdowns and COVID 19 restrictions.

Your company has designed and executed customised learning programs for our sales team across India by engaging external experts to enhance employee capabilities and skills. The training was imparted at three levels, viz. Frontline, Managers and Sales Leaders. The objectives of these programs have been designed in such a way to improve selling skills of Frontlines, to enhance the managerial skills like man management and distributor managementfor Sales Managersand to improve the strategical decision making skills for Sales Leadership Team.

Occupational Health and safety:

All our manufacturing plants have followed a high level safety measures within the facilities and reported zero incidents during the year. Your company gives greater importance to generate awareness among employees on safety protocols to be followed in the Plants and conducted a fewtrainings also to ensure the same.

Combating Covid:

The management and employees have come together as a unified family and supported each other to ensure business continuity in the new normal. The employees were allowed to have the comfort of working from home during lockdowns and were provided with the required facilities and systems to discharge their duties.

The Company has rolled out a Standard Operating Procedure (SOP) in line with the Covid guidelines issued by the Central and State Governments strictly enforcing the preventive measures to avoid spreading ofviruswithin the premises. It includes

1. Temperature Checks at entry and exit points

2. Wearingmasks

3. Social Distancing

4. Frequenthandwash

The implementation and adherence of SOP has been keenly monitored bythe leadership team and followed up through regular interactions and instructionstotheworkers&employees.

A COVID 19 specific Employee -

Welfare Policy was announced to —

provide various relief and welfare J

benefits to lower level employees.

The Policy enables granting of "

interest free advances to ,,

employees to meet his/her &

familys covid hospitalisation

expenses, reimbursement of

hospitalisation expenses over and Hit flf

above the eligibility, etc. There was

no downsizing of employee strength during the year other than the voluntaryresignations.

Vaccination ofall employeeswithin the campus has been facilitated and most of the employees have taken their firstjab.

CovidAudit:

A third party audit was also conducted at our plant to assess the preparedness of safety protocols before reopening our facilities after the lockdown. Theauditfindingsare given below:

Assessment Dimensions Applicable Check Points Highest score Score Possible % Achieved
1. Management Approach 24 96 79 82
2. Personal Hygiene 20 80 62 78
3. Social Hygiene 18 72 58 81
4. History 13 52 35 67
5. Preventive Measures 47 188 152 81
6. Awareness Campaigns & Communication 19 76 64 84
7. Performance Metrics 24 96 73 76
8. Misc 7 28 24 86
AVERAGESCORE 80

WomenWorkforce

The company is eager to increase the size of women population in its employment to provide opportunities for women to show case their talentand participate in corporategrowth. Currently, we have a strength of 13.56% women employees across functions excluding field force.

Employee Stock Option Plan (ESOP):

Your company has introduced Employee Stock Option Plan (ESOP) to select employees for the first time during the year. The main objective of ESOP is to create a sense of ownership and participation amongst the employees to get their share of the value they create for the company as a long term orientation. Options were granted to select employees as per the ESOP Scheme and according to the resolution passed by the shareholders.

HRAutomation:

As part of the various initiatives taken by the Company to go paperless office, your company has initiated HRAutomation to digitise various HR processes within the organisation. This automation will reduce the manual errors and also will improve the efficiency and transparency of the system.

Sourcing:

The recruitment division had to encounter a challenging situation for hiring the people in the midst of covid virus spread and resultant lockdowns. However, the recruitment process was made possible through virtual platforms and selection of new employees at all levels was completed virtually. As lack of availability of right talent for the given profile is likely to result in revenue loss to the Company, Amrutanjan has been able to assess the requirements in advance on the principle "Right people at the right place at the right time" in order to bridge the gap in talent sourcing to the maximum extent possible.

Leadership:

In order to strengthen our leadership team, we have hired Senior Level positions during the year. The management is determined to build a future-fit talent group to take it to the next level of growth while ensuring Person-Organisation fit. Various leadership programs are either conducted in-house or participated outside to enhance the quality of leadership within the company. Development of leadership skills has been done through various leadership interventions.

Rewards and Recognition

The company constantly creates new Incentive programs to motivate the sales force towards achieving their goals and rewarding them for the same. Your company has a vibrant variable pay policy which takes into account the companys performance, the individuals performance and the departments performance for working out the variable pay. The company values the employees serving for a longer tenure and reward them suitably. This will motivate other employees to stay and build a longer career within the company.

Sexual Harassment Policy

As per the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 (SHWW Act), your company has a robust mechanism in place to address the complaints reported under it. Your company has constituted a Committee composed of internal and external members who have extensive experience in handling such complaints. In 2020-21, your company has no case of sexual harassment reported to the Committee. During the course of the year, several initiatives were taken to demonstrate the Companys Zero tolerance philosophy towards gender discrimination and sexual harassment.

Relationshipwith Union

Amrutanjan has maintained excellent relationship with its affiliated Union, Amrutanjan Health Care Limited Employees Union. It enjoys cordial relationship with the Union and the Union representatives were taken into confidence on all IR issues so that no conflict arises between the union and the management.

The company is poised for growth in the coming years and the Human Resources practiced at Amrutanjan is fully in tune with the business requirements of the organization.

Despite challenges faced during the lockdowns, the company has ensured to fulfil its commitments towards employees and paid the salaries in full and in time so that they can carry on their personal obligationswithouthassle.

As on March 31,2021, your Company had a strength of667 employees.

(i) DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS & RETURN ON NET WORTH:

In compliance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, the Company is required to provide details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector-specific financial ratios.

Given below are the key financial ratios identified by the Company including return on networth:

Particulars 2020-21 2019-20
Debtors T urnover Ratio (i) 15.09 8.80
Inventory Turnover Ratio 16.17 13.66
InterestCoverage Ratio 164.81 156.90
Current Ratio (ii) 4.28 3.22
Debt Equity Ratio 0.26 0.24
Operating Profit Margin (%) (iii) 24.76% 13.26%
Net Profit Margin (%) (iv) 18.38% 9.59%
Return on NetWorth (v) 28.39% 15.73%

(i) Debtors turnover improved due to lower receivables (Rs.1,766.29 lakhs in CY vs Rs.2,646.36 lakhs in LY) and higher sales (Rs. 33,284.40 lakhs in CYvs Rs.26,147.67 lakhs in LY)

(ii) Current ratio has increased due to increase in cash and cash equivalents in the currentyear.

(iii) Operating profit margin has improved due to increase in net revenue in the currentyear.

(iv) Net profit margin has improved due to increase in net revenue in the currentyear.

(v) Return on net worth has increased due to accumulation of profits in the currentyear.

Formulae used forcalculation ofthe ratios

Debtors Turnover Ratio Revenue from Operations/Average of opening and closing trade receivables
Inventory Turnover Ratio Revenue from Operations/Average of opening and closing Inventories
InterestCoverage Ratio Profit before interest, taxes/Finance costs
CurrentRatio Current assets/Current liabilities
Debt Equity Ratio Total Liabilities - Equity (net of cash) / Equity
Operating profitmargin (%) Profit before interest, taxes / Revenue from Operations
Netprofitmargin(%) Profit after tax/Revenue from Operations
Return on networth (%) Profit after tax/Equity

(j) CORPORATESOCIALRESPONSIBILITY

As we continue our success journey in business to bring maximum returns to our stakeholders, we at Amrutanjan are also conscious of our responsibility towards the society at large. Our CSR programs are being carried out with same vigour and responsibility to keep pace with thechanging needsofhumanity. Theyear2020-21 was unprecedented with the negative impact created by COVID 19 and consequent lockdowns affecting the basic wants of a common man. Being a company caring for health of its customers, considerable portion of Amrutanjans total CSR allocations for the year has been devoted to COVID relief and preventive measures.

Education, Health & Animal Welfare remain focus areas of our annual CSR plan. Out of the total amount of Rs. 68.24 lakhs incurred on CSR activities, an amount of Rs. 43.41 lakhs was routed through the prominent Non-Governmental Organisations who have the similar objectives, focus, experience and commitment to fulfil our CSR obligations. The balance amount of Rs. 24.83 lakhs was utilised for direct implementation of other CSR projects. The sector wise break up of total CSR spent during the year 2020-21 is given below:

AnimalWelfare:

- "People for Animals" (PFA) is Indias largest animal welfare network who works to rescue and rehabilitate sick and needy animals. It organises shelters, ambulance services, sterilization programs, treatment camps and disaster rescue missions for animals. They also conduct education programs in schools to create awareness of animal welfare and protection, fight cases in court and lobby on animal issues in parliament. The Chennai Unit of PFA has been receiving regular donation from Amrutanjan to meet theirmaintenance&operationcost.

Women Empowerment:

- IIMPACT, established in 2003 by Alumni of IIM, Ahmedabad, is a registered NGO with a vision to create a positive impact on the education of girl children from socially and economically disadvantaged sections of society. It encourages and enables girl children to become an independent thinker and learner. Over 60,000 girls are currently enrolled in IIMPACTs girl child education programme. Amrutanjan has been supporting this NGO to run five learning centres at Kanpur District in Uttar Pradesh under their signature program, "Girl Child Education Program".

Environment:

- Sevalaya, a charitable organisation established in 1988, is running free schools, hospitals, medical centres, old age homes, etc., at various places in Tamil Nadu. The Vision of Sevalaya is to serve the rural poor and transform them for an equitable, happy and fulfilled Society with an improved quality of life. Amrutanjan has sponsored the construction of a roof top solar plant in one of their old age homes as an environment friendly project.

Health&Hygiene:

- Amrutanjans contribution towards COVID 19 Relief and Preventive measures was the major spend under Health Sector that was implemented by way of donations to Red Cross Society and by way of direct relief through supply of immunity packs and reliefmaterials.

Education:

- Renovation of a century old school building for Chennai High School locatedinthe heartofChennaiwasfundedbyAmrutanjan;

- On request by the Panchayat Union Primary School,Arkampet, Thiruvallur District, Tamil Nadu, the expenses for laying of floor tiles in class roomswere borne byAmrutanjan.

Detailed report on CSR activities in the prescribed format is attached separately with the Boards Report.

Cautionary Statement

Statements in this Management Discussion andAnalysis describing the Companys objectives, projections, estimates and expectations may be ‘forward looking within the ambit of applicable laws and regulations. Actual results, performance and achievements might differ substantially or materially from those expressed or implied. The Companys performance could also be affected due to the failure of monsoon which in turn may increase the input costs, major political and economic changes in India and changes in tax laws.

For and on behalf of the Board
Place: Chennai S Sambhu Prasad
Date : 14.08.2021 Chairman and Managing Director