Privi Speciality Chemicals Ltd Directors Report

The Directors present this Thirty Ninth Annual Report of Privi Speciality Chemicals Limited together with the Audited Financial Statements of the Company for the year ended March 31,2024.

The annexed Financial Statements comply in all material aspects with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act), the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time and other relevant provisions of the Act.

FINANCIAL RESULTS

Particulars	Standalone for the year ended on		Consolidated for the year ended on
	March 31, 2024	March 31, 2023	March 31, 2024	March 31, 2023
Total Income	173,367.75	159,943.93	177,853.43	162,924.15
Profit before Exceptional Item Interest & Depreciation & Taxation	34,895.41	20,305.13	35,126.21	20,734.31
Less: Interest	9,502.36	6,662.48	9,793.85	6,781.31
Profit before Exceptional Item, Depreciation and Taxation	25,393.05	13,642.65	25,332.36	13,953.00
Less: Depreciation	12,195.37	10,515.53	12,341.43	10,848.67
Profit before Exceptional Item and Taxation	13,197.68	3,127.12	12,990.93	3,104.33
Add: Exceptional Item	-	-	-	-
Profit before Tax for the year	13,197.68	3,127.12	12,990.93	3,104.33
Less: Provision for Taxation:
a. Current Tax	3,080.18	333.81	3,115.75	334.73
b. Deferred Tax	329.01	545.82	332.22	641.79
c. Tax adjustments for earlier years (Net)	-	-	-	-
Sub-Total	3,409.19	879.63	3,447.97	976.52
Profit after Tax for the year	9,788.49	2,247.49	9,542.96	2,127.81
Add: Other Comprehensive Income	11.73	45.61	41.28	240.55
Total Comprehensive Income for the year	9,800.22	2,293.10	9,584.24	2,368.36
Earnings Per Share (EPS) of 10/- each	25.06	5.75	24.43	5.45

OPERATIONS AND THE STATE OF COMPANYS AFFAIRS (CONSOLIDATED):

During the year under review, the consolidated revenue from operations and other income was 177,853.43 Lakhs (Previous year 162,924.95 Lakhs). The Company achieved consolidated profit before tax of 12,990.93 Lakhs (Previous year 3,104.33 Lakhs) and profit after tax & Other Compressive Income of 9,584.24 Lakhs (Previous year 2,368.36 Lakhs). The EPS on Consolidated financial statements for the year ended March 31,2024, was 24.43 (Previous year 5.45) on a diluted basis.

CAPITAL STRUCTURE:

The paid-up Equity Share Capital as on March 31, 2024, was 39,06,27,060 and Authorised Capital of 550,000,000. During the year, there was no change in the Capital structure

i.e., Authorised, Issued and Paid-up Equity Share Capital of the Company. The Company has only one class of shares.

DIVIDEND:

The Boatd of Directors at its meeting held on May 02, 2024 had recommended a Final Dividend of 2.00/- (i.e.20%) per equity share for the F.Y. 2023-24. A proposal seeking shareholders approval for declaration and payment of the said final dividend for 2023-24 is forming part of the Notice of 39th Annual General Meeting. If approved by the shareholders, the Final Dividend will be paid to those shareholders whose names appear in the Register of Members as on Book Closure Date on and before August 31, 2024.

In view of the changes made under the Income Tax Act, 1961, by the Finance Act, 2020, the dividend paid or distributed by the Company shall be taxable in the hands of shareholders w.e.f. April 01, 2020. The Company shall, accordingly, make the payment of Final Dividend after deduction of tax at source. The dividend payout is in accordance with the Companys Dividend Distribution Policy.

The Dividend Distribution Policy of the Company is available on the website of the Company at https://www.privi.com/ Downloads/Policies-PSCL/PSCL-Dividend-Distribution- Policy.pdf.

BOOK CLOSURE AND RECORD DATE:

The Register of Members and Share Transfer Books of the Company will be closed from Thursday, July 25, 2024, to Thursday, August 01, 2024 (both days inclusive) and the Company has fixed Wednesday, July 24, 2024, as the "Record Date" for the purpose of determining the entitlement of Members to receive final dividend for the financial year ended March 31,2024

SUBSIDIARY COMPANIES:

Your Company has three Subsidiaries out of which two are wholly owned subsidiaries namely Privi Biotechnologies Private Limited and Privi Speciality USA Corporation. Prigiv Specialties Private Limited is a subsidiary wherein your Company controls 51% of total voting power and also controls the composition of Board of Directors.

The Consolidated Financial Statements presented by the Company includes the financial results of its subsidiary companies. Further, as provided in Section 136 of the Act, the Balance Sheet, Statement of Profit and Loss and other documents of the subsidiary companies are not attached to the Financial Statements of the Company. The Company will make available free of cost the Audited Financial Statements of the subsidiary companies and the related detailed information to any member of the Company who may be interested in obtaining the same. The Financial Statements of the Company and as also of the subsidiary company shall be kept open for inspection at the Registered Office of the Company.

As provided in Section 129[3] of the Act and Rules made thereunder a statement containing the salient features of the financial statements of its subsidiaries in the format AOC 1 is attached to the financial statements as Annexure - 1.

TRANSFER TO RESERVES:

The Board of Directors decided to retain the entire Profits post distribution of Dividend for the Financial Year 2023-24 in the Retained Earnings.

MAJOR EVENTS OCCURRED DURING THE YEAR UNDER REVIEW:

a) Investment in Solar Power Project

As approved by the Board an investment in the Solar Power Project, by way of Equity participation to the extent of 26% through a Special Purpose Vehicle (SPV) i.e. Rs, 4,99,50,000 (Rupees Four Crores Ninety-Nine Lakhs Fifty Thousand Only) comprising of 49,95,000 Equity Shares of 10/- each of the Share Capital of the

SPV. The Company has invested the entire amount of 4,99,50,000/- in the SPV i.e Radiance MH Sunrise Ten Private Limited, by way of subscription to equity shares in different tranches, the details of which are shared herein below:

Sr. Date of Share No. allotment	No. of Shares allotted	Face Value per Share	Amount Invested
1 May 02, 2023	100,000	10	1,000,000
2 July 27, 2023	3,646,250	10	36,462,500
3 March 19, 2024	1,248,750	10	12,487,500
Total	4,995,000		49,950,000

The Company has started getting the benefit from the said Solar Power Project with effect from February 01, 2024 and there have been savings to the tune of Rs. 80 Lakhs (Rupees Eighty Lakhs) during the year.

b) Commencement of Commercial Production of two new products Indomarone and Florovane.

In the month of December 2023, your Company commenced the Commercial production of two new products, Indomarone and Floravone at Unit VI, situated at Jhagadia MIDC, Dist. Bharuch, Gujarat. Sales have also started for the said products from January 2024 onwards.

BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

Your Company has a culture and belief of sustainable development encompassing sustainable manufacturing, product safety, economy analysis, sustainability-oriented supply chain management and social and community based sustainable requirement. Pursuant to Regulation 34(2)(f) of Listing Regulations, 2015 and in line with the SEBI Circulars dated May 05, 2021 and May 10, 2021, inter alia, provides that the Annual Report of the Top 1000 listed entities based on Market Capitalisation, should include a Business Responsibility and Sustainability Report ("BRSR").

The BRSR initiatives taken from an Environmental, Social and Governance perspective in the prescribed format is available as a Separate Section of this Report and is also available on the Companys website: www.privi.com.

DEPOSITS FROM PUBLIC:

The Company has not accepted any Deposits from public and as such no amount on account of Principle or interest on deposit from public was outstanding as on the date of the Balance Sheet.

DIVIDEND DISTRIBUTION POLICY

In accordance with Regulation 43A of the SEBI Listing Regulations, the Board of Directors of the Company has adopted a Dividend Distribution Policy (Policy) which

endeavor for fairness, consistency and sustainability while distributing profits to the shareholders. The Policy is available on the Companys website at http://www.pnvi. com/investor-relations/corporate-governance/ company- policies.

CREDIT RATING:

The Companys credit rating was reaffirmed during the year under review. CRISIL Ratings Limited vide its letter dated May 21,2024, have reaffirmed the rating as follows:

1. For Long-term Bank facilities: CRISIL A+ / Positive (Revised from Stable, Ratings Reaffirmed)

2. For Short term Bank facilities: CRISIL A1 / (Reaffirmed)

INVESTOR EDUCATION AND PROTECTION FUND (IEPF):

In accordance with the applicable provisions of the Act, read with Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules, 2016 ("IEPF Rules"), all unclaimed dividends are required to be transferred by the Company to the IEPF, after completion of seven (7) years. Further, according to IEPF Rules, the shares on which dividend has not been claimed by the shareholders for seven (7) consecutive years or more shall be transferred to the demat account of the IEPF Authority. The details relating to the amount of dividend transferred to the IEPF and corresponding shares on which dividends were unclaimed for seven (7) consecutive years, are provided in the General Shareholders Information Section of this Annual Report. During the year, an amount of 3,78,090/-, being unclaimed dividend for F.Y. 2015-16 was transferred to IEPF.

DETAILS OF NODAL OFFICER:

According to rule 7(2A), each company shall nominate a Nodal Officer, who shall either be a Director or Chief Financial Officer or Company Secretary of the Company. The Company had appointed Ms. Ashwini Saumil Shah, Company Secretary and Compliance Officer of the Company as a Nodal Officer as per the abovesaid rule.

TECHNICAL ACHIEVEMENT:

The Company keeps on exploring the possibility of technical improvement and process optimisation for better yields / product mix / energy efficiency.

COMPANYS POLICY ON DIRECTORS APPOINTMENT AND REMUNERATION INCLUDING CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES, INDEPENDENCE OF A DIRECTOR ETC.:

Pursuant to the provisions of Section 178 and other applicable provisions, if any, of the Act, read with the Rules made thereunder and Regulation 19 read with Part D of Schedule II of the Listing Regulations the Board of Directors at their Meeting held on November 05, 2020, approved the Nomination and Remuneration Policy as recommended by

the Nomination and Remuneration Committee. The salient features of the said policy covering the policy on appointment and remuneration and other matters have been provided in the Corporate Governance Report.

BOARD EVALUATION:

The Evaluation of Board, its Committees, Individual Directors (Independent and Non-Independent Directors), Executive Director and Chairman & Managing Director was carried out as per the process and criteria laid down by the Board of Directors based on the recommendation of the Nomination and Remuneration Committee. The evaluation report criteria for Independent Directors includes participation and contribution by a director in Board / Committee Meetings, commitment, expertise, integrity, maintenance of confidentiality and independent behavior. The feedback on evaluation of the Board and its Committees was discussed at the meeting of the Independent Directors and coordinated by the Chairperson of the Nomination & Remuneration Committee. The Independent Directors met on March 15, 2024, with respect to the above process.

DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to the requirement of Section 134(3)(c) of the Companies Act, 2013 and to the best of their knowledge and belief, and according to the information and explanations provided to them, your Directors hereby make the following statements:

(i) that in the preparation of the financial statements for the year ended March 31, 2024, the applicable accounting standards read with requirements set out under Schedule III of the Companies Act, 2013 have been followed and there are no material departures from the same;

(ii) that the Directors have 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 viz. March 31, 2024, and of the profit of the Company for that period;

(iii) that the Directors have 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.

(iv) t hat the Directors have prepared the annual accounts on a Going Concern basis.

(v) that the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively and

(vi) that the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

DIRECTORS:

During the year under review, the Board of Directors had appointed Mr. Hemang Manhar Gandhi (DIN: 00008770) as an Additional Director in the capacity of Independent Director w.e.f. November 07, 2023. The appointment of Mr. Gandhi was subject to approval of shareholders which was duly taken through postal ballot on December 22, 2023.

The second consecutive term of appointment of Mr. P R Barpande and Mr. Rajesh Budhrani, Independent Directors of the Company came to an end w.e.f. closing hours of March

31.2024, accordingly Mr. Barpande and Mr. Budhrani ceased to be an Independent Director w.e.f. opening hours of April

01.2024.

As on date of this report there are a total of 6 (Six) Directors on the Board out of which 2 (Two) are executive directors and 4 (Four) are Non-Executive Independent Directors.

Re-appointment:

In Accordance with the provisions of Section 152 of the Act and Articles of Association of the Company, Mr. Mahesh P Babani (DIN 00051162), Chairman and Managing Director of the Company, retires by rotation at the ensuing Annual General Meeting and being eligible for re-appointment.

Mr. Mahesh P Babani, Chairman & Managing Director of the Company was appointed as Chairman & Managing Director at 36th AGM for the period of three years starting from April 01, 2022, to March 31, 2025. Nomination & Remuneration Committee and Board of Directors at their meeting held on May 02, 2024, have recommended re-appointment of Mr. Mahesh P Babani as a Chairman & Managing Director of the Company for the period of Five years i.e. from April 01,2025, to March 31,2030.

KEY MANAGEMENT PERSONNEL (KMP):

In terms of Provisions of Section 251 and Section 203 of the Act, the followings are the KMPs of the Company as on March 31,2024:

1. Mr. Narayan S. Iyer - Chief Financial Officer

2. Ms. Ashwini Saumil Shah - Company Secretary & Compliance Officer

STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS:

The Company has received declarations from all the Independent Directors of the Company, inter alia, confirming that they meet the criteria of Independence as prescribed under Section 149 of the Act and Regulation 16(1 )(b) of

Listing Regulations, as amended from Independent Directors confirming that they are not disqualified for continuing as an Independent Director.

PARTICULARS OF EMPLOYEES:

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are annexed to this report.

The Statement containing particulars of employees as required under Section 197 (12) of the Act read with Rule 5(20) and 5(3) of the Rules forms part of this Report. Further, the Report and the Accounts are being sent to the Members excluding the aforesaid Statement. The said statement is open for inspection upon request by the Members. Any Member interested in obtaining such particulars may write to the Company Secretary at investors@privi.co.in.

LISTING:

The Companys securities are listed with BSE Limited and National Stock Exchange of India Limited. The Company has paid the listing fees for F.Y. 2024-25 on the Paid-up equity share capital.

RELATED PARTY TRANSACTIONS:

The Company has formulated a Policy on Related Party Transactions, in line with the requirements of the Act, and Listing Regulations, as amended from time to time. The policy on Related Party Transactions as approved by the Board is uploaded on the Companys website at https:// www.privi.com/Downloads/Policies-PSCL/PSCL-Policy-on- Related-Party-Transactions-V-1-1.pdf

All related party transactions entered during 2023-24 were on arms length basis, in the ordinary course of business and were in compliance with the applicable provisions of the Act and the Listing Regulations. An omnibus approval is obtained for related party transactions which are of repetitive nature and entered in the ordinary course of business and on arms length basis. A statement giving details of all related party transactions entered pursuant to omnibus approval so granted is placed before the Audit Committee on a quarterly basis for its review.

The Company has not entered into contracts or arrangements with related parties in terms of Section 188(1) of the Act and there were no material significant related party transactions entered into by the Company with Promoters, Directors, KMPs or other designated persons which may have a potential conflict with the interest of the Company at large. Accordingly, the disclosure of related party transactions as required under Section 134(3)(h) of the Act in Form No. AOC- 2 is not applicable to the Company for 2023-24 and hence does not form part of this Report.

Pursuant to Regulation 23 of the Listing Regulations, the Company submits details of related party transactions on a consolidated basis to the stock exchanges as per the specified format on a half-yearly basis.

The details of Related Party Transactions are provided in the accompanying Financial Statements.

INTERNAL CONTROL AND ITS ADEQUACY:

Adequate internal control systems commensurate with the nature of the Companys business, size and complexity of its operations are in place and have been operating effectively. The Directors have laid down policies and procedures which are adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to Company s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

Apart from this your Company has also engaged a full- fledged professional Internal Audit firm to test and check the Internal Controls of all systems and suggest corrective and remedial measures.

The Audit Committee deliberated with the members of the Management, considered the systems as laid down and met the internal audit team and statutory auditors to ascertain their views on the internal financial control systems. The Audit Committee satisfied itself as to the adequacy and effectiveness of the internal financial control systems as laid down and kept the Board of Directors informed. However, the Company recognises that no matter how the internal control framework is, it has inherent limitations and accordingly, periodic audits and reviews ensure that such systems are updated on regular intervals. The Statutory Auditors have also issued a report on review of Internal Financial Controls (ICFR) and have expressed that the Internal Controls over Financial Reporting are adequate and operating effectively.

GOVERNANCE AND COMPLIANCE:

The Secretarial and Legal functions of the Company ensure maintenance of good governance at all levels. They assist the Company by being compliant in all areas including legislative expertise, corporate structuring, regulatory changes and governance. Compliances across various locations are monitored through a Legal Risk Management System.

RISK MANAGEMENT POLICY:

The Company has put in place a Risk Management Plan as detailed in the Risk Management Policy which is approved by the Board of Directors and adopted by the Company. The Risk Management Policy is uploaded on the Companys website at https://www.privi.com/Downloads/Policies- PSCL/PSCL-Risk-Management-Policv--V-1-1.pdf

The Policy provides a framework for identification, evaluation, management, continuous monitoring of risks and implementation of mitigation strategies. The risk management strategy is integrated with the overall business strategies of the organisation and its mission statement to ensure that its risk management capabilities aid in establishing competitive advantage and allow management to develop reasonable assurance regarding the achievement of the Companys objectives.

The Risk Management Committee (RMC) oversees the risk management process in the Company. The RMC is chaired by an Independent Director who is also a member of the Audit Committee.

A sub-committee consisting of the Head of the Department / Senior Leadership Team of the Company has been formed which meets on monthly basis. A systematic review of risks identified is subject to a series of focused meetings of the empowered Sub-Committee. Each sub-committee member ensures the effectiveness of the risk monitoring process across his work area and the sub-committee makes assessment of long term, strategic, macro risks and implementation of mitigation strategies across business units.

REPORTING OF FRAUD:

During the year, the Statutory Auditors, Cost Auditors and Secretarial Auditors have not reported any instances of frauds committed in the Company by its officers and employees under Section 143(12) of the Act details of which needs to be mentioned in this Report.

CORPORATE SOCIAL RESPONSIBILITY:

The Corporate Social Responsibility Committee has formulated and recommended to the Board a Corporate Social Responsibility Policy which has been approved by the Board. The details of the CSR activities as required under Section 135 of the Act are given in the CSR Report as Annexure to this Report.

VIGIL MECHANISM AND WHISTLE BLOWER POLICY:

As required under the Act and Listing Regulations, the Company has devised an effective Whistle blower mechanism enabling stakeholders, including individual employees and their representative bodies to communicate their concerns about illegal or unethical practices freely. The Company has adopted a Vigil Mechanism and Whistle blower Policy (the Policy) for stakeholders to report concerns about any unethical behavior, actual or suspected fraud or violation of the Companys Code of Conduct. Protected disclosures can be made by a whistle blower through several channels. The Policy provides for adequate safeguards against victimisation of employees. No personnel of the Company have been denied access to the Chairperson of the Audit Committee. The Policy

also facilitates all employees of the Company to report any instance of leakage of unpublished price sensitive information.

Vigil Mechanism and Whistle Blower Policy is available on the Companys Website at https://www.privi.com/Downloads/ Policies-PSCL/PSCL-Viail-Mechanism-Policy-V-1-1.pdf

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

The Company has adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder. The Company has also constituted Internal Complaints Committee (ICC) for its workplaces to address complaints pertaining to sexual harassment in accordance with the POSH Act.

No complaints were pending at the beginning of the financial year. No complaint was pending as at the end of the financial year.

To build awareness in this area, the Company has been conducting awareness sessions during induction of new employees and periodically for permanent employees, third- party employees and contract workmen through online modules and webinars.

MEETINGS OF THE BOARD:

During the Financial Year 2023-24, 6 (Six) meetings of the Board of Directors took place. The time gap between two meetings was less than 120 days. For further details, please refer to the Corporate Governance Report annexed hereto.

PARTICULARS OF LOANS GUARANTEES AND INVESTMENTS:

Particulars of loans, guarantees and investments made by the Company as required under Section 186 (4) of the Act are contained in Note No.5 and 30(d) to the Standalone Financial Statements.

CORPORATE GOVERNANCE REPORT:

A Report on the Corporate Governance along with a certificate from a Practicing Company Secretary regarding the compliance of conditions of Corporate Governance as stipulated in Regulation 34 of Listing Regulations, 2015 as also the Management Discussion and Analysis Report are annexed to this Report.

AUDITORS

I. STATUTORY AUDITORS AND THEIR REPORT:

The auditors M/s. BSR & Co. LLP Chartered Accountants were appointed as Statutory Auditors at the 35th Annual

General Meeting (AGM) held on November 02, 2020, for a term of five years, from the conclusion of 35th AGM till the conclusion of 40th AGM to be held for the year 2024-25. They have furnished a declaration confirming their independence as well as their arms length relationship with the Company and that they have not taken up any prohibited non-audit assignments for the Company. The Board has duly reviewed the Statutory Auditors Report for the Financial Year ended on March 31, 2024, and the observations and comments, appearing in the report are self-explanatory and do not call for any further explanation / clarification by the Board in their Report as provided under Section 134 of the Act.

II. SECRETARIAL AUDITORS AND SECRETARIAL AUDIT REPORT:

As required by Section 204 of the Act, read with The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board has appointed M/s. Rathi & Associates, Company Secretaries, a firm of Company Secretaries in Practice to conduct Secretarial Audit for the Financial Year 2023-24. The Report of the Secretarial Audit for the financial year ended on March 31, 2024, is annexed to this Report.

The Board has reviewed the Secretarial Auditors Report and is of the opinion that the observations and comments, appearing in the report are self-explanatory and do not call for any further explanation / clarification by the Board in its Report as provided under Section 134 of the Act.

III. COST AUDITORS:

As per Section 148 of the Act read with the Companies (Cost Records and Audit) Rules, 2014, the Company is required to prepare, maintain as well as have the audit of its cost records conducted by a Cost Accountant and accordingly, it has made and maintained such cost accounts and records.

The Board of Directors has on the recommendation of the Audit Committee appointed M/s Kishore Bhatia & Associates, Cost Accountants as the Cost Auditors of the Company for the financial year 2024-25. Pursuant to the provisions of Section 148 of the Act read with The Companies (Audit and Auditors) Rules 2014, Members are requested to consider the ratification of the remuneration payable to M/s. Kishore Bhatia & Associates.

The remuneration payable to the Cost Auditors is required to be placed before the Members in a General Meeting for their ratification. Accordingly, a resolution seeking Members ratification for the remuneration

payable to M/s. Kishore Bhatia & Associates, Cost Accountant forms part of the Notice of the 39th AGM.

CONFIRMATION OF COMPLIANCE OF SECRETARIAL STANDARDS:

During the year under review, the Company has complied with the applicable Secretarial Standards i.e. SS-1 and SS-2, relating to "Meetings of the Board of Directors" and "General Meetings", respectively, issued by The Institute of Company Secretaries of India (ICSI).

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, AND FOREIGN EXCHANGE EARNINGS AND OUT GO:

A. CONSERVATION OF ENERGY

I. IMPACT ON ENERGY CONSERVATION IN THE FINANCIAL YEAR 2023-24:

• Total installed captive power plant is 1425 MW (500 MW & 925 MW). We generated 6338 MWH power from steam Turbine in 2023-24.

• VFDs are provided on the vacuum Pumps, Cooling Tower Pumps, Fans and Reactor agitators for optimising the power consumption. We have installed VFDs for CT fans in the first stage in F.Y. 2023-24. The total cost saving due to energy conservation is 36.74 Lakhs.

• Replaced the regular and CFL lighting with energy efficient LED lighting across all plants. We have replaced 40 Nos in F.Y. 2023-24. The cost saving due to replacement of CFL bulbs with LED bulbs 0.89 Lakhs in F.Y. 2023-24.

• By recycling Treated effluent water (ZLD ~ 350-400 KLD), specific consumption of water has been brought down significantly to almost NIL in some of the plants.

• Rainwater harvesting is done and the same is used for process applications and gardening (3357 KL recycled).

• Solar Power (400 KWH) installed & total power generated by Roof top solar plant is 464.42 MW during F.Y.2023-24.

• Prionyl process improved, this increases yield from 0.55 to 0.70, hence there is reduction in raw material consumption, utility consumption, water consumption, effluent (41%) & number of batches of reaction and distillation reduced.

• The Amber fleur process improved, this increases yield from 1.199 to 1.216, hence there is reduction in raw material consumption, utility consumption, water consumption, effluent & number of batches of reaction and distillation reduced.

• Dihydromyrcenol process improved, this increases yield from 0.714 to 0.719, hence there is reduction in raw material consumption, utility consumption, water consumption, effluent & number of batches of reaction and distillation reduced.

• Ambery woody Xxtreme & Xtreme product introduced @ unit-II

II. ENERGY CONSERVATION PLANNING FOR F.Y. 2022-23/ CAPITAL INVESTMENT:

• Plan to install Solar power capacity of 3.3 MW at Unit-I & III and 1.4 MW at Unit-7.

• Planning to reduce RO reject to 40% by installing ultra high-pressure RO. This will help to reduce the Energy like steam & electricity consumption.

• Planning to install Mechanical vapor Recompression evaporation (MVRE) system, this will reduce the consumption of steam.

• To increase recycle of treated effluent water and to reduce in overall water consumption.

• Value added products derivation from the side stream of various production processes with purification.

• Green Technology development at pilot scale from intermediates of Products.

III. NEW PROCESS DEVELOPMENTS:

• Batch Process to Continuous process in DHMOL.

• Batch Process to Continuous process in PCM.

• MPO by Resin process Green Technology development at pilot scale.

• Process improvement of Delta Damascone process.

• To introduce Safranal, Aphermate, Menthofuran, L-Camphor Sulphonic acid, Habanolide, Exaltolide, Mayol, Amber Core as a new product.

B: TECHNOLOGY ABSORPTION

The expenditure on Research and Development: Yes

Sr. Particulars No.	Amount Invested
A Capital	67.31
B Revenue	202.52
Total (a+b)	269.83
Total Research & Development Expenses as % of Turnover	0.16%

C: FOREIGN EXCHANGE EARNINGS AND OUTGO

Particulars	Amount
Foreign Exchange Earnings	104,762.34
Foreign Exchange Outgo	65,868.04

ANNUAL RETURN:

Pursuant to Section 92(3) of the Act read with Section 134(3)(a) of the Companies Act and the applicable Rules, the Annual Return in Form MGT-7 shall be available on Companys Website at https://www.privi.com/investor- relations/reports/annual-return.

ACKNOWLEDGEMENTS:

Your Directors value the consistent support and encouragement given by Customers, Suppliers, Bankers, Business Associates and Government Agencies to the Company. The Directors appreciate the employees at all levels, including workmen at the manufacturing plants for their dedication, hard work & commitment at all the times.