Gujarat Raffia Industries Ltd Directors Report.

Dear Shareholders,

Your Directors present the 34th Annual Report together with the Audited Statement of Accounts for the year ended on 31st March, 2020.

1. FINANCIAL RESULTS :

The summary of Financial Results of the Company for the year under review along with the figures for previous year is as follows:

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Particulars

Standalone

2019-20 2018-19
Total Revenue 3426.81 4798.72
Less : Operating and other Admi. Exps. 3220.27 4505.12
Profit Before Depreciation, Interest and Tax 206.54 293.60
Less : Depreciation 120.88 106.51
Less : Finance Costs 30.34 71.52
Profit Before Tax and Exceptional Items 55.32 115.57
Exceptional Items - -
Profit Before Tax 55.32 115.57
Less : Current Tax 22.50 23.11
Less : Earlier Year Tax - 0.31
Less : Deferred Tax - -
(Excess) / Shortfall in provision for current tax for earlier years - -
Less : Minority Interest - -
Profit After Tax & Minority Interest 32.82 92.15
Earnings Per Equity Share
Basic 0.61 1.71
Diluted 0.61 1.71

2. DIVIDEND :

With a view to conserve the resources for expansion of the business activities and working capital requirements of the Company, the board of directors of the company have not recommended any dividend for the year under review.

3. REVIEW OF OPERATIONS, SALES AND WORKING RESULTS :

Your director report that during the year under review, in spite of economic slowdown the Company has recorded total sales of Rs. 3426.81Lakhs as compared to Rs. 4798.73 Lakhs for the financial year ended on 31st March, 2019. The Profit before tax for the period under review is Rs. 55.32 Lakhs as compared to Rs. 115.57 Lakhs in the previous year 2018- 19. The Profit after tax during the year under review is Rs. 32.82 Lakhs as against Rs. 92.15 Lakhs in the previous year 2018- 19.

4. MATERIAL CHANGES, TRANSACTION AND COMMITMENT/CHANGE IN THE NATURE OF BUSINESS, IF ANY :

There is no change in the nature of the business of the Company for the year under review. there were no significant or material order was passed by the Regulators or Courts or Tribunals which impact the going concern status and Companys operations in future.

5. MANAGEMENT DISCUSSION AND ANALYSIS (MDA) :

MDA, for the year under review, is presented in a separate section, which forms part of the Annual Report.

6. SHARE CAPITAL :

During the year under review, the Company has not increased its paid up capital. The paid up equity share capital of the Company as on 31st March, 2020 is Rs. 5,40,45,000/-.

During the year under review, the company ha neither issued share with differential voting rights nor granted stock options or sweat equity.

7. TRANSFER TO RESERVES :

The Company has not transferred any amount to the General Reserves for the current reporting period. An amount of 32.82 Lakhs is proposed to be retained in the Statement of Profit and Loss of the Company.

8. EXTRACT OF THE ANNUAL RETURN :

The extract of the Annual Return in form MGT-9 is annexed herewith as Annexure - A.

9. BOARD MEETINGS HELD DURING THE YEAR :

The Board consists of Executive and Non-executive Directors including Independent Directors who have wide and varied experience in different disciplines of corporate functioning.

During the year, Five Board meetings were held, with gap between Meetings not exceeding the period prescribed under the Companies Act, 2013.

Board meeting dates are finalized in consultation with all directors and agenda papers backed up by comprehensive notes and detailed background information are circulated in advance before the date of the meeting thereby enabling the Board to take informed decisions.

Sr. No. Date on which board Meetings were held Total Strength of the Board No of Directors Present
1. 29/05/2019 5 5
2. 13/07/2019 5 5
3. 14/08/2019 5 5
4. 11/11/2019 5 5
5. 11/02/2020 5 5

ATTENDANCE OF DIRECTORS AT BOARD MEETINGS :

Sr. Name of Directors No. of No. of
No. Meeting Held Meeting Attended
1. Mr. Pradeep Bhutoria 5 5
2. Mrs. Sushma Bhutoria 5 5
3. Mr. Dipen M Shah 5 5
4. Mr. Abhishek P Bhutoria 5 5
5. Mr. Karan Singh Chandalia 5 5

10. SUBSIDIARY COMPANIES :

The Company does not have subsidiary company, joint venture or associate companies during the year. There is no company which has ceased to be Companys subsidiary, joint venture or associate company during the year.

11. DIRECTORS AND KEY MANAGERIAL PERSONNEL :

The Board consists of Executive and Non-executive Directors including Independent Directors who have wide and varied experience in different disciplines of corporate functioning.

During the year under review Mr Alpesh Tripathi, Independent Director of the company have tendered his resignation w.e.f. 13/04/2019.

Mrs. Pradeep Bhutoria, Director, retires by rotation at the forthcoming Annual General Meeting, and being eligible offers himself for re-appointment.

Apart from this, there were no changes in the Directors or Key Managerial Personnel during the year under review. The Company has received necessary declaration from each independent director under Section 149(7) of the

Companies Act, 2013, that he/she meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

All the directors of the Company have confirmed that they are not disqualified from being appointed as directors in terms of Section 164 of the Companies Act, 2013.

12. INDEPENDENT DIRECTORS FAMILIARIZATION PROGRAMME :

Independent Directors at the time of their appointment are given the formal appointment letter mentioning various terms and conditions of their engagement. Independent Directors of the company are made aware of their role, duties, rights and responsibilities at the time of their appointment.

Independent Directors have visited the plants of the company for understanding of manufacturing operations and different processes of their plants.

The Board of Directors has complete access to the information within the company and to interact with senior management personnel. Independent Directors have freedom to interact with the management of the company.

The Familiarization programme has been conducted during the year under review and different aspects such as legal compliance management, corporate governance and role of independent directors have been covered in the same.

13. EVALUATION OF BOARD, COMMITTEES AND DIRECTORS :

Pursuant to the provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a structured questionnaire was prepared after taking into consideration the various aspects of the Boards functioning, composition of the Board and its Committees, culture, execution and performance of specific duties, obligations and governance.

The performance evaluation of the Independent Directors was completed. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by separate meeting held by the Independent Directors. The Board of Directors expressed their satisfaction with the evaluation process.

14. POLICY ON APPOINTMENT AND REMUNERATION OF DIRECTORS :

The Board, on the recommendation of the Nomination & Remuneration Committee, formulated criteria for determining Qualifications, Positive Attributes and Independence of a Director as also a Policy for remuneration of Directors, Key managerial Personnel and senior management.

15. SEPARATE MEETING OF THE INDEPENDENT DIRECTORS :

The Independent Directors of your Company, in a separate meeting held on 29th March, 2020 to carry out the evaluation for the financial year 2019-20 and inter alia, discussed the following:

* Reviewed the performance of Non-Independent Directors of the Company and the Board as a whole.

* Reviewed the performance of the Chairman of the Company taking into account the views of Executive Directors and Non-executive Directors.

* Assessed the quality, quantity and timelines of flow of information between the Company management and the Board that is necessary for the Board to effectively and reasonable perform their duties.

All Independent Directors of the Company were present at the Meeting.

16. AUDITORS :

a) STATUTORY AUDITORS :

M/s. Chandabhoy& Jasoobhoy, Chartered Accountants (Firm Registration Number: 101648W) were appointed as Statutory Auditors of the Company for a period of 5 (Five) years from FY 2018 - 19 to 2022 - 23 at the 33rdAnnual General Meeting held on September 30, 2019. In view of the amendment to Section 139 of the Companies Act, 2013, the Company is not required to ratify the appointment of the Statutory Auditor at every Annual General Meeting. Hence, the item of ratification of appointment of Statutory Auditor is not considered in this Annual General Meeting. In view of the same M/s. Chandabhoy& Jasoobhoy, Chartered Accountants will continue to act as Statutory Auditors of your Company for Financial Year 2020-21.

b) SECRETARIAL AUDITORS :

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company had appointed Mr. Premjeet Singh, Practicing Company Secretaries, a firm of Company Secretaries in Practice to conduct the Secretarial Audit of the Company as per the provisions of the Companies Act, 2013 for the financial year 2019- 20. During

the year Mr. Premjeet Singh, Tender his resignation from the practicing company secretary of the company.

The Board has appointed in the board meeting held on July 25, 2020CS Himanshu Maheshwari, Practicing Company Secretaries, as Secretarial Auditors of the Company for financial year 2019-20.

The secretarial audit report for FY 2019-20 forms part of the Annual Report as Annexure B to the Boards report.

17. INTERNAL CONTROL SYSTEM AND COMPLIANCE FRAMEWORK :

The Company has an Internal Control System, commensurate with size, scale and complexity of its operations. The internal financial controls are adequate and are operating effectively so as to ensure orderly and efficient conduct of business operations.

The Company has appointed Mr. Parin Hareshbhai Patwari, as Internal Auditors of the Company. The Audit Committee in consultation with the internal auditors formulates the scope, functioning, periodicity and methodology for conducting the internal audit. The internal auditors carry out audit, covering inter alia, monitoring and evaluating the efficacy and adequacy of internal control systems in the Company, its compliance with operating systems, accounting procedures and policies at all locations and submit their periodical internal audit reports to the Audit Committee. Based on the internal audit report and review by the Audit committee, process owners undertake necessary actions in their respective areas. The internal auditors have expressed that the internal control system in the Company is robust and effective.

The Board has also put in place requisite legal compliance framework to ensure compliance of all the applicable laws and that such system is adequate and operating effectively.

18. AUDIT COMMITTEE :

The details pertaining to composition of audit committee are included in the Corporate Governance Report, which forms part of this report.

19. THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013. :

There has been no complaint related to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, during the year.

20. RISK MANAGEMENT AND POLICY ON RISK MANAGEMENT :

At present the company has not identified any element of risk which may threaten the existence of the company.

The Board has formulated Policy on Risk Management and the same is uploaded on the Companys website at www.griltarp.com.

21. VIGIL MECHANISM :

The Company has set up vigil mechanism viz. Whistle Blower Policy to enable the employees and Directors to report genuine concerns and irregularities, if any in the Company, noticed by them. The same is reviewed by the Audit Committee from time to time.

22. RELATED PARTY TRANSACTIONS AND POLICY ON RELATED PARTY TRANSACTIONS:

All related party transactions that were entered into during the financial year were at arms length basis and were in the ordinary course of business. Details on Related Party Transactions in Form AOC - 2 have been enclosed as Annexure - C.

The Board has formulated Policy on Related Party Transactions and the same is uploaded on the Companys website at www.griltarp.com.

23. MANAGERIAL REMUNERATION AND PARTICULARS OF EMPLOYEES :

The information required under Section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms part of this Report and statement of particulars of employees is annexed as Annexure - D & E.

24. LOANS, GUARANTEES OR INVESTMENTS :

Details of Loans, Guarantees and Investments, if any covered under the provisions of Section 186 of the Act are given in the notes to the Financial Statements.

25. DEPOSITS :

Your Company has not accepted any deposits from the public falling within the purview of Section 73 of the Act,

read with the Companies (Acceptance of Deposits) Rules, 2014.

26. DIRECTORS RESPONSIBILITY STATEMENT:

To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors confirm:

a. that in the preparation of the annual accounts for the year ended 31st March, 2020, the applicable Accounting Standards had been followed along with proper explanation relating to material departures, if any;

b. that the directors had selected accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year ended 31st March 2020 and of the profit of the Company for that period;

c. that proper and sufficient care has been taken 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;

d. that the annual accounts/financial statements have been prepared on a going concern basis;

e. that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively;

f. 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.

27. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:

A statement containing the necessary information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed to this report as Annexure - F.

28. CORPORATE GOVERNANCE:

As per regulation 34(3) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, report on "Corporate Governance" is attached and forms a part of Directors Report. A Certificate from the Chartered Accountant regarding compliance of the conditions of Corporate Governance as stipulated under the Listing Regulation is annexed to this Report.

29. DISCLOSURES UNDER SECTION 134(3)(L) OF THE COMPANIES ACT, 2013:

Except as disclosed elsewhere in this report, there have been no material changes and commitments which can affect the financial position of the Company occurred between the end of the financial year of the Company and date of this report.

30. LISTING OF SHARES OF THE COMPANY

The equity shares of the Company are actively traded on both BSE Ltd. and National Stock Exchange of India Ltd.

31. ACKNOWLEDGEMENT:

Your Directors express their sincere gratitude for the assistance and cooperation extended by Financial Institutions, Banks, Government Authority, Shareholders, Suppliers, Customers and Stakeholders.

Your Directors also wish to place on record their appreciation of the contribution made by the employees at their level towards achievements of the Companies goals.

By order of the Board of Directors
For Gujarat Raffia Industries Limited
Date : 12th August, 2020 Pradeep Bhutoria
Place : Santej Chairman & Managing Director
DIN:-00284808