Innovative Tyres & Tubes Ltd Directors Report.

To,

The Members

Innovative Tyres & Tubes Limited

Your directors have pleasure in presenting their 23rd Annual Report together with the audited financial statements of the company for the financial year ended March 31, 2018.

FINANCIAL RESULTS

The Companys financial performance for the year ended March 31, 2018 is summarized below:

Particulars Year ended 31st March 2018 Year ended 31st March 2017
Revenue from Operations 13,950.35 13,083.69
Other Income 58.79 170.23
Total Revenue 14,009.14 13,253.92
Total expenses 13,385.22 12,635.79
Profit before taxation and extraordinary items 623.92 618.13
Add: Extraordinary items - -
Profit before taxation 623.92 618.13
Less: tax expense (including adjusted deferred tax) 184.08 129.60
Profit after tax 439.84 488.53

STATEMENT OF COMPANIES AFFAIRS

• Total Revenue:

During the year under review, total revenue of the company has increased by 5.70% as compared to previous financial year.

The Company has reported total revenue of Rs. 14,009.14 lakhs for the financial year 2017-18 as compared to Rs. 13,253.92 lakhs for the previous financial year.

• Total expenses

During the year under review, total expenses of the company has increased by 5.93% as compared to previous financial year mainly on account of increase in cost of raw materials, employee benefit expenses and depreciation expense during current financial year.

• Net Profit

During the year under review, Profit before tax has increased from Rs. 618.13 lakhs to Rs. 623.92 Lakhs as compared to previous financial year. However, Net Profit after tax has marginally decreased on account of tax implications during current financial year.

DIVIDEND

Considering the better opportunity in increasing the market shares the Company needs to expand its existing facilities in quantum and in quality and considering strengthening the existing net worth and future wealth of the Company and of its Shareholders, your Directors unanimously decided to plough back the profit of the company as a resources for its activities and expansion thereof, do not propose any dividend for the financial year ended March 31, 2018.

TRANSFER TO RESERVE

During the year under review, the Company has not proposed any amount to be transferred to General Reserve out of the Net Profits of the Company for the financial year ended 31st March, 2018.

SUBSIDIARIES AND CONSOLIDATED FINANCIAL STATEMENTS

The Company do not have any subsidiaries hence there is no need to prepare consolidated financial statement for the financial year 2017-18.

LISTING WITH STOCK EXCHANGE

Your Board is pleased to inform that the Company has successfully completed the Initial Public Offer (IPO) and equity shares of the Company were listed on EMERGE platform of National Stock Exchange of India Limited ("NSE") with effect from 5th October, 2017. The Initial Public Offering (IPO) of Company comprised of a fresh issue of 62,97,000 equity shares at a price of Rs. 45/- per equity share (inclusive of premium of Rs. 35/- per share.)

Consequently Paid up share capital of the Company increased from Rs 11,69,45,610/- to Rs 17,99,15,610/- after making allotment of fresh issue of shares.

Issue Details:

Issue Open: From Sep 22, 2017 - To Sep 26, 2017

Issue Type: Book Built Issue IPO

Issue Size: 62,97,000 Equity Shares aggregating up to Rs 2,833.65 Lakhs

Face Value: Rs 10/- per Equity Share

Premium: Rs 35/- per Equity Share

Price Band: Rs 42/- to Rs. 45/- per Equity Share

Market Lot for application: in multiple of 3000 Equity Shares

Share Issue Expenses

The Company has incurred expenses of Rs 232.08 Lakhs relating to fresh issue of equity shares which has been adjusted to securities premium account in terms of Section 52 of the Companies Act, 2013.

Details of utilization of IPO proceeds

Sr. No. Particulars Amount to be utilized Actual Amount utilized as on 31.03.2018
1. Expansion of existing facility 1,700.00 869.50
2. Long term working capital Requirements 400.00 -
3. General Corporate Purposes 483.65 483.65
4. IPO Expenses# 250.00 232.08
Total 2,833.65 1,585.23

# Amount for IPO expenses pending utilization has been reserved for future use based on requirement.

MATERIAL CHANGES AND COMMITMENT:

There have been no material changes and commitments affecting the financial position of the Company since the close of financial year i.e. since 31st March, 2018. Further, it is hereby confirmed that there has been no change in the nature of business of the Company.

RISK MANAGEMENT:

A key factor in determining a Companys capacity to create sustainable value is the risks that the Company is willing to take (at strategic and operational levels) and its ability to manage them effectively. Our Company is mainly in manufacturing and supply of tubes and tyres. Many risks exist in a companys operating environment and they emerge on a regular basis. The Companys Risk Management processes focuses on ensuring that these risks are identified on a timely basis and addressed.

The Company has laid down a risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process. A detailed exercise is being carried out to identify, evaluate, manage and monitor and non - business risks. In our company, audit committee has an additional oversight in the area of financial risks and its controls. Other major operational risks are being identified by the management of the Company from time to time. However, constitution of Risk Management Committee is not applicable as it is applicable to top 100 listed companies only.

EXTRACT OF ANNUAL RETURN

The Extract of Annual Return pursuant to the provisions of Section 92 of the Companies Act, 2013 read with Rule 12 of the Companies (Management and administration) Rules, 2014, in Form No. MGT-9, for the financial year ending 31st March, 2018 is attached as Annexure 1.

SECRETARIAL AUDIT REPORT

In compliance of the provisions of section 204 of the Companies Act, 2013, other applicable provisions of the and, the Companies (Appointment and Managerial Personnel) Rules, 2014, the Board of Directors at their meeting held on 25th January, 2018 appointed M/s. Swati Bhatt & Co., Practicing Company Secretary, Vadodara as Secretarial Auditors of the company for the F.Y. 2017-18. The Secretarial Audit Report is attached as Annexure - 2. The Secretarial Audit Report does not contain any qualifications or adverse remarks.

CORPORATE GOVERNANCE

Your company has incorporated the appropriate standards of corporate governance. Pursuant to Regulation 15(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company being SME listed company, is not required to mandatorily comply with the provisions of certain regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Hence, company is not filing Corporate Governance report to stock exchange quarterly. However as per Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, company is giving report on corporate governance in Annual Report of the company. Corporate Governance Report is attached as Annexure - 3. The requisite Certificate issued by M/s. Swati Bhatt & Co., Practicing Company Secretary, Vadodara is attached to Corporate Governance Report.

MANAGEMENT DISCUSSION & ANALYSIS REPORT:

As per Regulation 34 read with Schedule V of SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015 the Discussion and Analysis Report is attached as Management Annexure - 4 to this Annual Report.

DISCLOSURE ON DEPOSITS UNDER CHAPTER V

The Company has neither accepted nor renewed any deposits during the financial year 2017-18 in terms of Chapter V of the Companies Act, 2013. Further, the Company is not having any unpaid or unclaimed deposits at the end of the financial year ending 31st March 2018.

INTERNAL FINANCIAL CONTROL SYSTEM

According to section 134(5)(e) of the Companies Act, 2013, the term Internal Financial Control (IFC) means the policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of fraud and errors, the accuracy and comple teness of the accounting records and the timely preparation of reliable financial information.

Your Company has appointed Chief Financial Officer with effect from 10th February, 2017 to focus on review of business processes and suggest improvements as applicable. Independence of the audit and compliance is ensured by direct reporting to the Audit Committee of the Board by the internal auditor.

DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Board of Directors comprises of following six directors:

Sr. No. Name of Directors/KMP Designation
1. Mr. Mukesh Desai Chairman & Managing Director
2. Mr. Nitin Mankad Whole time Director
3. Mr. Pradeep Kothari Whole time Director
4. Mr. Keyoor Bakshi Independent Director
5. Mr. Kalyanaraman Ganesan Independent Director
6. Dr. Mrs. Kalpana Joshipura Independent Director

During the year under review, Mr. Mukesh Desai was designated as Chairman and Managing Director w.e.f. 1st April, 2017.

Mr. Pradeep Kothari and Mr. Nitin Mankad were designated as Whole time Director w.e.f. 1st April, 2017.

Dr. Mrs. Kalpana Joshipura was appointed as additional director w.e.f. 15th June, 2017 up to the conclusion of ensuing Annual General Meeting. Subsequently, she was appointed as Independent Director for the term of three consecutive years by the members of the company at their Annual General Meeting held on 10th July, 2017.

Mr. Keyoor Bakshi and Mr. Kalyanaraman Ganesan were re-appointed as Independent Director for second term of five consecutive years by Board at their meeting held on 5th May, 2018 subject to approval of members at their ensuing Annual General Meeting.

Pursuant to sections 149, 152 and other applicable provisions of the Companies Act, 2013, one-third of the executive directors are liable to retire by rotation, and if eligible offer themselves for re-appointment. In this Annual General Meeting, Mr. Nitin Mankad, whole time Director of the Company is liable to retire by rotation and being eligible offers himself for re-appointment. Details of Mr. Nitin Mankad as required under Secretarial Standards on General Meeting and Regulation 36(3) of SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015 is annexed to the notice of AGM of the company.

The Key Managerial Personnel (KMP) in the Company as per section 2(51) read with Section 203 of the Companies Act, 2013 are as follows:

Sr. No. Name of Directors/KMP Designation
1. Mr. Mukesh Desai Chairman & Managing Director
2. Mr. Nitin Mankad Whole time Director
3. Mr. Pradeep Kothari Whole time Director
4. Mr. Arvind Tambi Chief Financial Officer
5. Ms. Sejal Desai Company Secretary & Compliance Officer (upto 4th Aug., 2018)

Mr. Mukesh Desai was appointed as Managing Director of your Company w.e.f. 21st November, 2016. He was further designated as Chairman and Managing Director w.e.f. 1st April, 2017.

During the year under review, Mr. Pradeep Kothari and Mr. Nitin Mankad were appointed as Whole time Director w.e.f. 1st April, 2017.

Mr. Arvind Tambi was appointed as Chief Financial Officer of our Company w.e.f. 10th February, 2017. He has been re-designated as Chief Financial Officer and Company Secretary w.e.f 5th Aug 2018.

Ms. Sejal Desai was appointed as Company Secretary of our Company w.e.f. 1st July, 2016 further designated as Compliance Officer w.e.f. 1st April, 2017 has worked till 4th Aug., 2018.

MEETINGS OF BOARD OF DIRECTORS

During the year, the Board met 11 (Eleven) times i.e. on April 01, 2017, May 25, 2017, June 15, 2017, July 10, 2017, August 7, 2017, August 31, 2017, September 7, 2017, September 14, 2017, September 27, 2017 October 03, 2017, and January 25, 2018. The intervening gap between any two meetings was within the period prescribed by the Companies Act, 2013.

Details of Directors presence in each board meeting is mentioned below:

Name of Directors Number of Meetings attended / Total Meetings held during the F.Y.2017-2018.
Mr. Mukesh Desai 11/11
Mr. Nitin Mankad 11/11
Mr. Pradeep Kothari 11/11
Mr. Keyoor Bakshi 11/11
Mr. Kalyanaraman Ganesan 11/11
Dr. Mrs. Kalpana Joshipura 09/09*

*Dr. Mrs. Kalpana Joshipura was appointed as additional director w.e.f. 15th June, 2017.

Pursuant to the requirement of Schedule IV to the Companies Act, 2013 and the SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015, a separate meeting of Independent Directors of the company was held on 25th January, 2018.

DECLARATION BY INDEPENDENT DIRECTORS AND RE-APPOINTMENT, IF ANY

During the year under review, all the Independent Directors have given their declarations stating that they meet the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015. In the opinion of Board, they fulfill the requirement of independence as specified in the Companies Act, 2013 and rules made thereunder. All the independent Directors have given their statement of independence as on beginning of every financial year.

STATUTORY AUDITORS

The members of the company, at their Annual General Meeting held on 10th July, 2017, have appointed M/s. Maloo Bhatt & Co., Chartered Accountants, Vadodara having Firm Registration Number - 129572W as Statutory Auditors of the Company to conduct the audit for 5 (five) financial years subject to ratification at every Annual General Meeting at such remuneration as may be decided by the Audit Committee and Statutory Auditors mutually.

COST AUDITORS

The Audit Committee of the Company at its meeting held on 5th May, 2018 has recommended to the Board of Directors for appointment and fixing of remuneration of M/s. V. P. & Associates, Cost Accountants, Vadodara for audit of cost records of the Company for the financial year 2018-19. The Board of Directors of the company at their meeting held on 5th May, 2018 appointed M/s. V. P. & Associates, Cost Accountants, Vadodara as cost auditors subject to ratification of the remuneration by the members of the Company at the ensuing Annual General Meeting.

The Cost Audit Report for the financial year 2016-17, issued by M/s. V. P. & Associates, Cost Accountants, Vadodara as prescribed under Cost Audit Rules was filed with the Ministry of Corporate Affairs within due date. The Co st Auditors Report for the financial year 2016-17 did not contain any qualification, reservation or adverse remark.

SECRETARIAL AUDITORS

Board of Directors at their meeting held on 5th May, 2018 re-appointed M/s. Swati Bhatt & Co., Practicing Company Secretary, Vadodara as Secretarial Auditor to conduct the secretarial audit for the financial year 2018-19.

BOARDS COMMENT ON THE AUDITORS REPORT

The notes referred to in the Auditors Report are self-explanatory and they do not call for any further explanation as required under section 134 of the Companies Act, 2013.

CHANGES IN SHARE CAPITAL

During the year under review, following changes took place in the share capital of the Company:

Conversion of Preference shares into equity shares of the Company

The members of the company at their extraordinary general meeting held on 25th May, 2017 approved conversion of 73,55,000 preference shares into 21,01,424 equity shares at a price of Rs. 35/- per equity share.

Allotment of equity shares:

The Company has allotted 62, 97,000 equity shares by way of Initial Public Offer (IPO).

Consequently, as on 31st March, 2018, the authorized share capital of the company is Rs 19,00,00,000/- divided into 1,90,00,000 equity shares of Rs 10/- each and paid up share capital is Rs 17, 99, 15,610/- divided into 1,79,91,561 equity shares of Rs10/- each.

During the year under review, company has not issued any shares with different rights, sweat equity shares or employee stock options.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013

With reference to Section 134(3)(g) of the Companies Act, 2013, no loans, guarantees and investments other than trade investments have been made under section 186 of the Companies Act, 2013 in the earlier years as well as during the year under review.

RELATED PARTY TRANSACTIONS

With reference to section 134(2)(h) of the Companies Act, 2013, all related party transactions that were entered into during the financial year ended 31st March, 2018 were on an arms length basis and in the ordinary course of business, hence disclosure under Form AOC-2 is not required. Details of related party transactions made during the year are attached to the notes to the balance sheet. The Board has approved a policy for related party transactions which is available on the Companys website. The web-link as required under SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 is http://www.innovativetyres.com/investor_relations/policies_programme

DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS CORPORATE SOCIAL RESPONSIBILITY INITIATIVES (CSR)

As per provisions of Section 135 of the Companies Act, 2013, provisions for CSR is applicable to every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year.

Your Company has earned Net profit before tax exceeding Rs 5 crores during the previous financial year, therefore CSR provisions are applicable to your Company for the financial year 2017-18 and accordingly Board of Directors have constituted CSR Committee at their meeting held on 3rd October, 2017 comprising of following members:

Name of Member Category
Dr. Mrs. Kalpana Joshipura Chairperson to the Committee
Mr. Mukesh Desai Member to the Committee
Mr. Pradeep Kothari Member to the Committee

On recommendation of Corporate Social Responsibility Committee, the Board has formulated Corporate Social Responsibility Policy and adopted the same. The detailed CSR policy of the Company is available on the website of the Company www.innovativetyres.com. During the year under review, CSR Committee met on 25thJanuary, 2018. Details of CSR activities undertaken during the current financial year are detailed in Annexure - 5 to this report.

DISCLOSURE OF COMPOSITION OF AUDIT COMMITTEE

Pursuant to Section 177(1) of the Companies Act, 2013 read with Rule 6 and 7 of the Companies (Meetings of the Board and its Powers) Rules, 2013, the company has formulated Audit Committee. Composition of Audit Committee is as follows.

Name of Member Category
Mr. Keyoor Bakshi Chairman to the Committee
Mr. Kalyanaraman Ganesan Member to the Committee
Mr. Mukesh Desai Member to the Committee

During the year under review, members of the audit committee met on 25th May, 2017 and 25th January, 2018. Chairman of Audit Committee was present in the Annual General Meeting held during current financial year on 10th July, 2017.

VIGIL MECHANISM

In compliance with the requirement of Section 177(9) & (10) of the Companies Act, 2013 and SEBI (Listing Obligations & Disclosure Requirement) Regulations, 2015, a Vigil Mechanism or Whistle Blower Policy for Directors, employees and other stakeholders to report genuine concerns has been established. This is available on the website of the Company i.e. www.innovativetyres.com

COMPANYS POLICY RELATING TO DIRECTORS APPOINTMENT, PAYMENT OF REMUNERATION AND DISCHARGE OF THEIR DUTIES

As per the provisions of Section 178 of the Companies Act, 2013, the Company has re-constituted its Nomination & Remuneration Committee with following members w.e.f. 15th June, 2017.

Name of Member Category
Dr. Mrs. Kalpana Joshipura Chairperson
Mr. Keyoor Bakshi Member
Mr. Kalyanaraman Ganesan Member

The brief contents of Nomination & Remuneration Policy of the Company prepared in accordance with Section 178 of the Companies Act, 2013 and Regulation 19 of SEBI (Listing Obligations & Disclosure Requirement) Regulations, 2015 are provided in Corporate Governance Report.

Nomination & Remuneration Committee met on 5th May, 2018 to evaluate performance of individual directors for the FY 2017-18 and to evaluate the performance of Mr. Keyoor Bakshi and Mr. Kalyanaraman Ganesan for their continuation of term as independent director.

STAKEHOLDERS GRIEVANCES COMMITTEE

To resolve the investors grievances, company has formulated Stakeholders/Investor Grievance Committee w.e.f. 1 5th June, 2017. Composition of the Committee is as follows:

Name of Member Category
Dr. Mrs. Kalpana Joshipura Chairperson
Mr. Mukesh Desai Member
Mr. Pradeep Kothari Member

The Chairperson of this Committee is non-executive director pursuant to the provisions of Regulation 20 of SEBI (LODR) Regulations, 2015.

DISCLOSURES PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION 197(12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5 (1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) AMENDMENT RULES, 2016:

The Disclosure pertaining to remuneration as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016 is attached as Annexure - 6.

DIRECTORS RESPONSIBILITY STATEMENT

In accordance with the provisions of Section 134(3) (C) of the Companies Act, 2013 the Board hereby submit its responsibility Statement:—

a) In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b) the directors had selected such 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 and of the profit and loss of the company for that period;

c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

d) the directors had prepared the annual accounts on a going concern basis;

e) 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;

f) The directors have laid down internal financial controls to be followed by the company and such internal financial controls are adequate and operating efficiently.

BOARD EVALUATION

The Board of Directors has carried out an annual evaluation of its own performance, board committees and individual directors pursuant to the provisions of the Act and the corporate governance requirements as prescribed by Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations"). The performance of the board was evaluated by the board after seeking inputs from all the directors on the basis of the criteria such as the board composition and structure, effectiveness of board processes, information, functioning etc. The performance of the Committees were evaluated by the board after seeking inputs from the committee members on the basis of criteria such as the composition of committee, effectiveness of committee meetings etc.

The Board and the Nomination & Remuneration Committee reviewed the performance of the individual directors on the basis of criteria such as the contribution of individual director to the board and committee meetings, representation of shareholders interest and enhancing shareholders value etc. In addition, Chairman was also evaluated on the key aspects of his role. Performance evaluation of independent directors was done by the entire board, excluding the independent director being evaluated.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

A. CONSERVATION OF ENERGY

The particulars as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 pertaining to conservation of energy, technology absorption, foreign exchange earnings and outgo have been furnished below:

1. Following jobs were carried out during the year for conservation of energy :

• In house training and awareness programmes.

• Installation of Energy meters at the TBM m/cs.

• Recovery of process discharged water which was otherwise being disposed off to surface drain.

• Recovery of Hot Water Return directly to the Hot Water Generator resulting to reduction of running time of the Hot Water Generator Make-up Pump.

• Installation of Pressure Regulating Control Valve at E-line HP steam header.

• Correction of the APH of 10 TPH boiler to prevent mixing of combustion air and flue gas resulting to stoppage of the 2nd FD Fan at 10 TPH boiler.

• Rationalisation and modification of steam distribution system resulting to reduction of 01 set of steam header including related pipe fittings and valves.

• Use of LED flood lights at RMS Store.

• Upgradation of 10 TPH boiler operations resulting to reduction in running time of the 05 TPH boiler.

2. The steps taken by the Company for utilizing alternate sources of energy :

• Use of day lights by providing transparent roof sheets.

• Use of Solar Power - 1st Phase of 240 KW is installed and commissioned.

• Use of Bio-mass fuel in the coal fired process boiler.

3. Capital investment on energy conservation equipments : NIL

B. EFFORTS MADE TOWARDS TECHNOLOGY ABSORPTION

a. Efforts made towards technology absorption:

The Company is exploring technology options for better manufacturing process. Development of R & D Centre is mainly focused for exploring better technologies available in the existing product and new models.

b. Benefits derived like product improvement, cost reduction, product development or import substitution

The company is able to cater its customers through innovation in technology and through product mix

c. Information regarding technology imported, during the last 3 years:

The Company has not imported technology. However, it has made indigenized technological development by in-house developing and installing carbon bulk handling system, Chemical ingredient weighing Machine, Four Roll Calendar Equipment, OTR band building machine, band Inserter introduced on Truck Tyre Building Machine and Hot water curing Machine installed for better performance of product.

d. Expenditure incurred on Research and Development - Rs. 37.05 lakhs

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

Particulars 2017-18 2016-17
Total foreign exchange outgo 1330.65 2984.26
Total foreign exchange inflow 6,062.40 3,951.98

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS, COURTS AND TRIBUNALS

No significant and material order has been passed by regulators, courts, tribunals impacting the going concern status and Companys operations in future.

UPGRADATION IN CREDIT RATING:

Your directors are pleased to inform you that during the year under review, the credit Rating Agency, M/s India Rating & Research has improved the credit rating from "B-" to "BB+" with "Stable" outlook.

DISCLOSURE OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE UNDER WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Company is committed to provide a safe and conducive work environment to its women employees, during the year under review.

ACKNOWLEDGEMENTS

The Board acknowledges with gratitude the co-operation and assistance provided to your company by its bankers, Financial Institutions, and government as well as Non-government agencies. The Board wishes to place on record its appreciation to the contribution made by employees of the company during the year under review. Your Directors thanks the customers, clients, vendors, other business associates, Auditors, RTA and members for their continued support in the Companys growth.

FOR THE BOARD OF DIRECTORS
INNOVATIVE TYRES & TUBES LIMITED
Mukesh Desai
Date : 4th August 2018 Chairman & Managing Director
Place : Halol (DIN: 00089598)