Aries Agro Ltd Management Discussions.

FORWARD LOOKING STATEMENTS

This report contains forward looking statements, which may be identified by their use of words like ‘plans, ‘expects, ‘will, ‘anticipates, ‘believes, ‘intends, ‘projects, ‘estimates, or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the Companys strategy for growth, product development, market position, expenditures and financial results, are forward looking statements. These forward looking statements, which may include statements relating to future results of operations, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the Directors and Management of the Company, about the business, industry and markets in which the Company operates. These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, many of which are beyond Companys control and difficult to predict, that could alter actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not, and should not be construed, as a representation as to future performance or achievements of the Company. In particular, such statements should not be regarded as a projection of future performance of the Company. It should be noted that the actual performance or achievements of the Company may vary significantly from such statements.

OVERVIEW

OVERVIEW OF INDUSTRY:

The Company is part of the growing specialty plant nutrition industry, which is a niche sector within the crop nutrition segment of agricultural inputs. During the year under review the monsoon was at 109% of the LPA (Long Period Average). 3 out of the 4 Kharif season months received above normal rainfall viz June (107%), August (127%) and September (105%) while July recorded deficient rainfall. Even Rabi season had favourable water and weather conditions and the Company was able to perform well even in this season.

The entire Financial Year was however marked with disruptions due to lockdown conditions in different times in different states and this persisted throughout the year. However, being classified under essential services, our business was minimally affected and teams across the country went beyond the call of duty to ensure seamless flow of work.

On a standalone basis, the Companys gross revenue increased by 27.72% from Rs. 371.50 Crores to Rs. 474.50 Crores.

MANUFACTURING BASE

The total capacity utilization currently stands at 67.33% of the total installed capacity of 95,400 MT p.a. in India. The manufacturing unit at Fujairah, UAE began the process of installing the power connection for the machinery to manufacture our products. However, due to lockdown conditions, the commencement of production will be delayed by few months. However, it is expected to commence operations in H2 of Financial Year 2021-22. In the meanwhile, fixed costs have been reduced to bare minimum in UAE. Increased focus on the strengthening of the Indian manufacturing base has been extremely beneficial to improve the profitability of the Company.

Continuity in Operations in Lockdown Phase

With constantly changing classification of Red and Green Zones and sudden shutdowns due to sanitizing protocols, movement restrictions, unavailability of drivers for trucks, health checks, quarantine requirements, it was never certain when any location, where an Aries manufacturing Unit was located would be forced to halt work. It was too risky to centralise manufacturing. With rural areas largely in the Green zones and a good monsoon, demand remained very buoyant. The supply side needed decentralisation of all semi-skilled and routine tasks. A timely decision was made to outsource packing operations and repacking of the rebranded products to almost 11 locations nation-wide. This ensured that our factories, running with limited workers due to distancing norms, would use our skilled workers only for core manufacturing and outsource packing (a time consuming but routine operation) to other locations. Suggestions were received from factory incharges regarding delegation of this function and their forward thinking helped rapid supply of material to meet the growing demand.

HIGHLIGHTS & KEY DEVELOPMENTS HIGHLIGHTS

Financial Year 2020-21 was characterized by a very stable and robust demand scenario and the quarterly share of revenue was as under:

Particulars Percentage Share in Annual Revenue 2020-21
Q 1 23.48
Q 2 30.11
H 1 53.59
Q 3 27.78
Q 4 18.63
H 2 46.41
Annual 100%

Waging a War on Cost:

With every passing week, it became evident that the lifting of lockdown would happen very gradually and would take months longer than originally envisaged. Costs remained under pressure with fuel and consequent logistics rates on the rise, increase cost of imports due to increase in USD rates, shortages of Chinese raw material and supply constraints on packing material. A war on cost was declared at all levels within the organisation.Travel costs in the first quarter was significantly reduced, reimbursements for fuel and hotel were eliminated and was phased back gradually during the unlock period

Stringent cost control measures strengthened with a continued focus on domestic manufacturing showed increase in profitability (PAT) by 45.02%.

Orders received during the annual booking bazaars have assisted in better working capital management. Aries flash sales were conducted for the fourth year in April and May 2020.

On a consolidated basis, consolidated PAT showed an improvement in line with domestic business.

Booking Bazaar:

Annual Bookings for the year 2020-21 were conducted entirely online and the flash sales during April 2020 led to the total booking of Rs. 636 Crores from 1306 distributors and dealers. This has enabled well-planned manufacturing and distribution throughout the year.

New Product Ideation:

The Research and Development process is continuous and the lockdown months were used for product ideation, identification of new suppliers and trials on new product lines. Top 75 customers and team leads from all states were engaged in a confidential half day dialogue on new products under consideration and online polls and detailed discussions helped refine the product ideas further. During FY 2020-21 period, 07 new / upgraded products were introduced for test marketing and trials and a further dozen product concepts are in various stages of R&D and feasibility studies. This was the best time for the R&D teams to get mindshare of customers and to think about these new products and solutions

The following seven products were introduced in FY 2020-21

• Arisoft (Di-sodium EDTA)

• Aripotash (Liquid Potash)

• Fertimax HD - 13:00:45 (High Density NPK Grade)

• Fertimax HD - 00:52:34 (High Density NPK Grade)

• Paraakram (CPPU)

• Zinc HD Tablets (High Density Water Soluble Zinc)

• Aries Garden Care kits

KEY MEASURES TO ENSURE CONTINUED WORK DURING COVID-19

Occupational Health and Safety:

Securing a go ahead to restart meant putting in place immediate and comprehensive measures for ensuring safety of the Aries workforce. Visitors entry was banned, only rostered staff were allowed on the premises and masks, face shields and spot temperature checks became a norm at all factories. A phased reopening of manufacturing facilities began - with Lucknow, Ahmedabad, Hyderabad and Mumbai restarting on 7, 8, 10 and 12 April 2020 respectively. 100 percent COVID rapid antibody testing was also carried out every month. Workers were provided accommodation and food on site and were permitted to return home only once every 10 days, to minimize off-site contact. We also engaged private bus service to facilitate travel to and from the factories. Anyone entering and exiting the premises had to pass through a full body sanitization tunnel with safe disinfectants and also have a UV stick frisk-down before being seated on their desks. Regular sanitization of the premises was carried out professionally and staff were instructed to sanitize their own desks every few hours and use touch free sanitizers placed all over the office and factory premises.

Occupational health and safety protocols were detailed and enforced very strictly to ensure a safe and secure work environment. Offices discontinued work from home arrangements in phases once permissions were obtained in all 26 locations. In the interim, staff without laptops or personal home computers was allowed to take office computers home to ensure no disruptions.

Aries Applications, Online Attendance & Health Report

The Aries sales force application was upgraded to include administrative staff. With biometric attendance suspended, the app tracked attendance, record temperature at the time of leaving home, record temperature and daily oximeter reading at the time of entering the premises, latitude-longitude of the exact location and time where these readings were taken and a weekly self declaration of every staffs health parameters. All privilege, casual and sick leave was combined and those asked to quarantine were permitted to avail paid leave without any hindrance

Rapid Digitization:

For almost three years, many initiatives were taken to enable digitization at various levels in the organization. Orders, annual bookings, payments were almost entirely done digitally for 2 years before the lockdown. In those years, the insistence to go digital was seen as an unnecessary change, especially when paper trails were familiar and also seen as effective by the teams in getting the job done. However, in April 2020 the entire financial years order book could only be created remotely. Apart from the sales booking application, several other processes moved entirely online. Human resource monitoring, expense claims, training and developments, farmers meetings (now branded as Aries Fasal Sabha) and the Khazaana Loyalty Programme migrated to apps and used virtual tools. The time during the first two phases of lockdown was used to develop and on-board concerned teams to learn and use these processes effectively.

AIMS (Aries Integrated Management System) - that was custom made to aggregate all process including production, planning, procurement, pending orders, dispatch scheduling, inventory control, etc. was now fully implemented. Covid fast tracked the implementation of a digital system architecture at Aries by almost half a decade.

Digitial payments through G-Pay and Paytm was also introduced

KEY EVENTS:

Golden Jubilee & All India Virtual Dealers Conference :

We had scheduled the finale of the Aries 2020 Campaign as a grand convention in a sprawling 10,000 Sq Ft. setting with all stakeholders from every state in India in attendance. The lockdown truncated this massive plan to showcase the ‘Future of Specialty Agriculture. But Aries unstoppable spirit decided to convene it virtually - on the same day as scheduled. The behavioral inertia was completely broken and on 19 April 2020 the Companys Golden Jubilee Celebration and Annual Dealers Convention, the largest online agribusiness customer convention in India was conducted virtually. We connected 850 dealers across 22 States on to a digital platform. This was a record-breaking first of its kind digital customer convention, followed by a 100% digital booking bazaar and flash sale.

Aries Lockdown Exemplars

In the several weeks that followed until the unlock phase began in August 2020, we kept our spirits, drive and enthusiasm up. However, it was not always a smooth journey. Several sacrifices were made by team members - at times taking responsibility above and beyond the regular call of duty. Over the months, despite all precautions, a few staff and workers were affected with the virus. One senior worker at Mumbai did not survive COVID-19. He went home after staying inside the Mumbai factory for 46 continuous days and was unfortunately infected a few days later, perhaps back at home or elsewhere. The rest who fought the Virus returned to work to tell their teams their own stories of courage and persistence to mentally and physically win over the deadly virus. To ensure those who went beyond their domains are recognized, Aries reached to all the staff and workers and asked them nominate their own Covid Warriors and state the reasons why they believed the effort was exemplary. The response to this to recognize colleagues was unprecedented - 100 members of the Aries Family were shortlisted and named as the ‘Aries Lockdown Exemplars, as a gesture of gratitude to continue to courageously and selflessly serve the farmers of India throughout the Pandemic Social Media Presence With the lack of face to face contact with external stakeholders, the Aries social media channels sprung to life. Agromax - our You Tube Channel, Twitter, Instagram and Facebook feeds were continuously updated with stories of ‘real people within the Aries Network who had created excellence. All the farmers meetings were moved online during the lock down period with small group of farmers being trained by the Aries team for a series of online trainings, branded Aries Fasal Sabha. Farmers provided testimonials, Aries Fasal Sabhas built a weekly knowledge sharing dialogue on select crops. Whatsapp groups with staff, farmers and distributors were active with updates on everything relevant to Aries Business. Technical aspects of the Companys products were communicated digitally through a series of 12 Fasal Sabha sessions on various crops. An Average reach of 20,000 audience per session was recorded on Facebook application.

Social Media Campaigns

From Farms to Handlooms: - Aries conducted a nationwide social media campaign in July 2020 "From Farms to Handlooms" to showcase the outstanding end products woven together using the amazing non-food crops grown by our farmers across India Handmade in India: We also conducted a nationwide social media campaign in July 2020 to encourage and solicit farmers who worked round the clock to ensure that non-food crops receive the right nutrition to produce high quality fabrics or raw materials Virtual International Buyers Convention: We set up a main stage event in Sept 2020 with several country-specific and product specific virtual tables for existing and potential customers from several countries exploring global business opportunities with Aries.

Virtual 50th Annual General Meeting: We convened for the first time a virtual AGM on 24-Sept-2020 connecting all shareholders from their comfortable zones

Inauguration - Chhatral 3rd Phase: We successfully completed the Third Phase of our Chhatral Manufacturing Unit inspite of lockdown condition and inaugurated it on 5 Nov 2020 in the presence of our core department heads and virtual presence of all other personnel across all branches and depots.

Aries Shubham 2020 - 51st Foundation Day:

To mark the momentous completion of our 50th year, Aries Shubham, a mammoth national campaign was planned and executed within a weeks time. This included CSR activity of Annadanam which helped feed 10,988 people at 108 different locations in India and an innovative m-coupon scheme based flash sale that incentivized farmers and dealers across the nation who patronized the Aries range of products on this special occasion. A record breaking 326 farmer meetings were conducted in 20 states on a single day having an attendance of 11730 farmers. The most important element of doubling farm income through Integrated Nutrition Management using Aries products were discussed. A new record of Rs.13.07 Crores Sales and 13.59 Crores collection was also achieved as a perfect culmination to our Jubilee year.

51st Foundation Day - 27-Nov-2020 Highlights
Annadanam across India Farmers meetings across India New Single Day Record
No. of Locations 108 No. of Meetings 326 Sales Rs. 13.07 Cr
Persons Served 10,988 No. of farmers attended 11,730 Collections Rs. 13.59 Cr

Release of Aries Chronicle: We ended the most extraordinary Year 2020 with the release of our Chronicle "The Aries Jubilee - A test to our Unstoppable Spirit" a special publication by Aries Team that truly exemplifies the journey of Aries Family through the most difficult times and the spirit to co-create one of the best years in our Corporate History.

Planning Meetings:

Planning Meeting for 2021-22 was conducted at Bhopal in February 2021 followed by regional planning meetings in March 2021 Excellence Mission:

Aries Knowledge Centre and Yi Mumbai Chapter conducted a 2 weeks excellence mission for students from Kashmir - creating impact by grooming them for significant future leadership roles with Industrial Visits, Masterclasses and Cultural Exchange Program. The completion ceremony was held at the historical Asiatic - Majestic Town Hall which had stellar lineup of speakers who attended physically and virtually.

OUTCOMES & RECOGNITION:

The Year 2020-21 has been monumentally special. It was a very different celebration of our Jubilee. What we demonstrated as a collective was not the exuberance of festivities but the exceptional excellence created by hard work and the unstoppable Aries spirit. The first half of the financial year 2020-21, punctuated by the Pandemic lockdowns and uncertainties, saw Aries revenues grow by 27.72%, with increase in profitability by 45.02%, working capital cycle reduced by 35 days, debt reduced by Rs. 15.71 crores.

Our Jubilee moments also included being recognized as one of Indias most innovative business models emerging during COVID-19 the category of ‘Innovation in Customer Interface by the Confederation of Indian Industrys Food and Agriculture center of excellence (CII-FACE), NABARD & the Ministry of Fertilizers, Government. of India. The Aries Marketing team was also declared the Asian ‘Marketing Team of the Year by the ACEF Leaders Forum, Agriculture Company of the Year 2019 by Zee Business, Enterprise Worlds ‘10 Transformational Business Leaders to Look Out for in 2020 and Fortune India featured Aries as ‘A Brand trusted by millions of farmers. These accolades served as a capstone to this extraordinary year of work.

With a forced reboot of plans in the final home run, it was agility, creativity and resilience that reigned supreme in the Aries psyche. With a series of tough and timely choices, Aries evolved - stronger, versatile, spirited and vibrant. Blessed with a team unlike any other, we are indeed ‘Aries Unstoppable.

For Sixteen consecutive years Aries Quality Management System was audited and certified as ISO 9001:2015 with zero noncompliance report showing complete adherence to international quality standards

GLOBAL SOURCING

Aries has sourced 25% of its total raw materials from overseas suppliers from China, USA, Turkey Germany, Taiwan, South Korea, UAE and Malaysia. Most of the purchases are based on contractual buying.

MAN POWER

The total Man Power of the Company increased from 922 to 958 during the year under review.

Ensuring Job Security:

While most organizations were laying off hundreds and thousands of staff in the first half of the FY 2020-21 due to the lockdown, Aries ensured that since our business continuity was ensured by all teams, it was essential to support every member of the Aries family with job security and stability. Salaries and wages were released earlier than usual, not a single person was laid off due to the pandemic, incentives for sales and cost control were paid well before time, annual increments and promotions post appraisals were announced as scheduled and provision was also made to adjust any available paid leave (no matter under what category) against quarantine and sick days.

In the Financial Year 2020-21, infact 165 new employees joined Aries. The pressure on cash flows to ensure this team stability led to a widespread feeling of gratitude for the privilege of being part of Aries - a company that amply demonstrated its care and concern for every member of the Aries family across India. This was only possible because of the untiring work by the manufacturing, marketing and support teams to ensure business continuity at all times. Had this been hampered, the situation would have been very difficult. We owe each other an immense debt since everyones job security was ensured by the collective team work, even at great personal peril from health risks.

Particulars Apr 20 to Mar 21
New joiners from April 2020 to March 2021 165
% of staff receiving increment from April 2020 to March 2021 78%
% of staff receiving promotion from April 2020 to March 2021 37%
No. of employees on roll as on March 2021 958

Workers Safety:

Contract tracing was initially based on the roaster of workers on site. However, as the permissions during lockdown increased from 30% to 50% and thereafter 100%, we piloted an automated contact tracing app, that used a Bluetooth beacon to identify people in close proximity for over permitted number of minutes. The chip (initially on the safety vest and thereafter on the identity card) stored information for 30 days and in the event of a COVID-positive team member being reported, all those recorded in close proximity were immediately isolated and tested. The Ideas Hub at the Aries Mumbai HQ and some OYO-rooms were hired and converted into temporary quarantine facilities and a doctor-on-call remotely monitored those in isolation and medication was provided

Scaling up Training and Upskilling

The first phase of the most stringent lockdown saw Aries team convening in groups of 100 every single day for at least 2 hours of training, followed by quizzes and leaderboards. Competing to learn was evident when zoom rooms filled up fast and active participation from all attendees led to the time being will spent in upskilling themselves. A minimum of 100 training hours are a mandatory part of appraisal at all levels in the Company and the lockdown period saw cross functional and department specific training programmes conducted by expert internal trainers. Some even took up external language skill and online computer and data analytics courses

GLOBAL DISTRIBUTION:

Activities relating to exports, initiatives taken to increase exports, development of new export markets for products and services and export plans: International clients are located in Kenya, Nigeria, Nepal and Taiwan. Sales were booked for Kenya, Nepal and Taiwan. Registration process started in Nigeria and Bangladesh. Distributors in Nepal have put up their own manufacturing unit to support and increase sales and distribution network throughout Nepal. The total exports and global sales constituted 0.06% of our group revenue during the Financial Year 2020-21. (This adds upto 0.36% including Nepal & Kenya Exports in INR).

OUTLOOK:

The year 2021-22 is our 52nd year of operations and the Company continued to have robust plans for growth and expansion. This second year of Covid lockdowns has severely affected rural areas and the virus has spread far and wide into the remotest parts of the country. This, unlike last year, is affecting the movement of people to meet with customers and farmers. However, the flow of material continued uninterrupted under essential services. The Company is looking ahead to face these challenges using digital means of communication, better supply, inventory control and continuous attractive time bound trade schemes. The 2021-22 Annual Booking was once again conducted online with 1426 dealers in 22 states booking using our Booking App. The total booking of Rs. 574 - Crores has been recorded. This is expected to achieve Gross revenue of Rs.525/- Crores in FY 2021-22. In the current year we are also introducing the following products:

Pesticide Range Organic Bio Range Crop Specific Nutrition Products Fisheries Micronutrient Complexes
Nirbhay Caps (Lambda- Cyhalothrin 4.9% Capsule Suspension) Rajat HD (Organic Bactericide) Humiblack (Bio Stimulant) Aries Majorsol- Maize Aquamix (Multi Micronutrient for fishes) Aribor (Boron Ethanolamine)
Paramvir (Profenofos -40 +Cypermethrin 4) Nemocheck (Organic Nematode control) Terrazinc (Zinc Solubilizing Bacteria) Aries Majorsol- Cotton Supermax
Dhanush (Carbendazim 12% +Mancozeb 63% WP) Orga Prom (Organic Fertilizer) Ariphos (Phosphate Solubilizing Bacteria) Aries Majorsol- Groundnut Zinconite-S
Jahaan (Hexaconozale 5 % EC) Orga Potash (Organic Fertilizer) Nitrofix (Nitrogen Fixing Bacteria) Boronite-S
Haasil (Imidacloprid 17.8 SL)
Trishool (Neem Oil -Azadirachtin 1%)

In addition 18 Aries products have been certified organic by UK Cert and the process of taking additional Indian organic Certification is also under way. The manufacturing operations at Amarak Chemcials FZC, Fujairah, UAE is expected to restart operations in H2 to manufacture Aries Super Max which will add to our flagship micronutrients range. A small range of pesticides will also be introduced in FY 2021-22 in addition to Aries Plantomycin.

Aries is also the first Indian Company to receive DGCA License for agriculture drone operations. A 100 day Campaign will be launched between August and October 2021 to exhibit the accurate use of Drones for crop nutrition sprays.

The Phase III of the Hyderabad Unit for packing operations will be functional in Q2 of FY 2021-22 and Phase I of the Raipur packing and warehousing Unit will be operational in H2 of FY 2021-22.

The Company has already incorporated a wholly owned subsidiary, M/s. Mirabelle Agro Manufacturing Pvt. Ltd. whose manufacturing unit will be operational in Q2 of FY 2021-22 and the Company will commence bulk B2B business in India and overseas during the year.

SEGMENTWISE / PRODUCTWISE PERFORMANCE

As the Companys business activity falls within a single primary business segment, the disclosure requirements of Accounting Standard (Ind AS-108) "Operating Segments", are not applicable.

RISK MANAGEMENT & INTERNAL CONTROLS

RISK MANAGEMENT

The Company has a Risk Management Policy.

The Company manages, monitors and reports on the principal risks and uncertainties that can impact its ability to achieve its strategic objectives. The Companys management systems, organizational structures, processes, standards, code of conduct and behaviour together form the Aries Risk Management Systems (ARMS) that governs how the Company conducts its business and manages associated risks.

The Company has in place adequate Internal Financial Controls with reference to Financial Statements. During the year, such controls were tested and no reportable material weakness were observed.

INTERNAL CONTROL SYSTEM

The Company has an extensive system of internal controls to ensure optimal utilization of resources and accurate reporting of financial transactions and strict compliance with applicable laws and regulations. The Company has put in place sufficient systems to ensure that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are authorized, recorded and reported correctly.

THREATS AND OPPORTUNITIES

The external factors which could serve as possible threat to the business would include erratic spread of the rainfall and water availability in the reservoirs, fluctuations in oil and gas prices, foreign exchange rate fluctuations, shortages of key raw materials, pricing pressure, indirect and direct substitutes, etc.

The extended lockdown, which has covered almost the entire summer and monsoon has created risks of high logistic costs, unavailability of factory labour and volatile USD and fuel rates. Therefore, cost management is a top priority and every step will need to be taken to control costs and to maintain profitability despite rising cost conditions.

Opportunities would include meeting the high demand in the rural areas, which was highly unaffected by the pandemic. Agri business and farming are perhaps the only areas where lockdown was exempted. The labour, which has moved to the villages from the cities, are also creating additional labour force in the villages, leading to more land area under cultivation. The acceptance of digital methods of information delivery by farmers is creating new opportunities for promoting Aries products with limited visits by sales staff in lockdown conditions. Intensive training and development using virtual means of communication has also been carried out during the lockdown months and this knowledge increase is another emerging opportunity.

Opportunities would also include growth in product range as well as expansion into unserved markets in India and abroad. Increasing awareness levels amongst existing customers on balanced nutrition will increase number of products the farmers purchase from the Aries range.

COST MANAGEMENT

As trade schemes as a percentage of sales decreased by (0.68)% overall PAT increased by 45.02% compared to the previous Financial Year. Gross Operating margins (EBIDTA) marginally reduced from 18.23% in FY 2019-20 to 16.36% in FY 2020-21, largely due to increase in cost of raw materials.

FINANCIAL PERFORMANCE:

The Companys Sales Turnover for the financial year ended March 31, 2021 increased to Rs. 47,449.83 Lakhs from Rs. 37,150.08 Lakhs in the previous year, reflecting an increase of 27.72%.

Total expenses for the year was Rs.35,660.49 Lakhs as against Rs. 28,522.03 Lakhs in the previous year.

Profit Before Tax increased to Rs.3,008.19 Lakhs during the year as against Rs. 2,308.80 Lakhs in the previous year.

Tax provision for the year was Rs. 744.27 Lakhs as against Rs. 747.73 Lakhs in the previous year which translates 1.95% on FY 20-21 Net Sales.

Profit After Tax for the year was Rs. 2,263.91 Lakhs as against Rs. 1,561.06 Lakhs in the previous year which is 5.93% of FY 20-21 Net Sales.

Debtors Turnover (on Net Sales) for the year was 104 days as against 125 days in the previous year.

Inventory Turnover (on Net Sales) for the year was 135 days as against 171 days in the previous year.

Operating Profit Margin (on Net Sales) for the year was 16.36% as against 18.23 % in the previous year.

Net Profit Margin (on Net Sales) for the year was 5.93% as against 5.27 % in the previous year.

RESOURCES & LIQUIDITY (STANDALONE)

As on March 31, 2021, the Net Worth of the Company stood at Rs. 19,052.57 Lakhs as against Rs. 16,817.20 Lakhs.

As on March 31, 2021, the Company had a Debt / Equity ratio of 0.71. The Company has not raised any Deposits from the public.

As on March 31,2021, Interest Coverage Ratio was 2.41 as against 2.11 in the previous year.

As on March 31, 2021, Current Ratio was 1.49 as against 1.44 in the previous year.

DISCLOSURE OF ACCOUNTING TREATMENT

The Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of the Companies Act, 2013 ("the Act") and other relevant provisions of the Act.

HUMAN RESOURCES:

As at the end of the financial year there were 958 employees under the permanent rolls and 252 under contract. We have an ongoing arrangement with few labour supplier organizations for our various locations.

We have 123 workers in our permanent employment and sizeable numbers on contract, working in our factories. The detailed breakup of the same is as under:

Particular. Employees 2020-21
1. Skilled 19
2. Semi-Skilled 10
3. Unskilled 94
Sub- Total 123
4. Contract Labour 252
TOTAL 375

The Department wise breakup of our manpower is as under:

Name of the Department No. of Staff 2020-21
1. Directors 01
2. Accounts, Personnel & Administration, Legal & Secretarial 167
3. Production(Staff and Workers), R&D and Spray Dryer Operators 173
4. Sales 617
TOTAL 958

HEALTH/ SAFETY/ENVIRONMENT SENSITIVITY

HEALTH THROUGH NUTRITION:

• The Company promotes "Balanced Nutrition as a National Imperative", building resistance of crops to pests and diseases and hence lowering the usage of harmful and expensive pesticides

ENVIRONMENT SENSITIVITY:

• The Solar Power Generation System at its manufacturing unit in Hyderabad has generated 75,852.30 units of power during the Financial Year 2020-21, of which 65,305 units were consumed by the facility and the balance10,547 units were sold to the grid.

• All Aries products are based on the philosophy of "Use less chemicals and use safe chemicals" - low doses of chemically inert and cost effective nutrient complexes

• The entire range of Aries Chelates are environmentally safe

• All our packaging for powders and liquids have been converted into 100% recyclable forms.

• Eighteen number of Aries products are organic certified by UK Cert.

NON POLLUTING:

• All Aries factories have zero effluents and produce no harmful emissions