Unitec Fibres Ltd Directors Report

REPORT OF THE DIRECTORS TO THE MEMBERS OF UNITEC FIBRES PRIVATE LIMITED

Your Directors have pleasure in presenting their Annual Report on the business and operations of the Company and the accounts for the Financial Period ended 31st March 2023.

Financial Results

The financial results are as below:

	Current Year	Previous Year
	Rs. IN LAKHS	Rs. IN LAKHS
Revenue	20,715.47	18791.48
Other Income	186.83	9.63
Expenses	20,468.35	18382.55
Profit/ (Loss) Before taxation	433.95	418.56
Less : Current Tax	116.00	133.63
Less /Add : Deferred Tax	(14.94)	2.78
Income tax paid for earlier year	0.01	-0.20
Profit (Loss ) after tax	332.89	282.35

Dividend

The Directors do not recommend payment of any dividend for the period ended 31st March

2023.

Reserves

Net profit of current year amounting to Rs. 332.89 Lakhs transferred to the reserve account.

Operations

The revenue earned during the year was Rs.20,715.47 Lakhs and the Profit after tax stood at Rs. 332.89 Lakhs.

There has been no change in nature of business of the Company.

Material Changes and Commitments

There have been no Material changes and commitments, affecting the financial position of the Company which have occurred between the end of the financial year of the Company and the date of the report.

Significant and Material Orders impacting Going Concern Status and Operations

There have been no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Companys operations in future.

Subsidiary/Joint Venturcs/Associate Companies

The Company has no subsidiaries, no joint ventures or associate companies related to the Company.

Deposits

The Company has not taken any deposit covered under Chapter V of the Companies Act. 2013. Auditors

The Statutory Auditors, PARLKH SHAH AND LODHA Chartered Accountants (Firm Registration No. 107487W Membership No. 048350), hold office upto the conclusion of ensuing Annual General Meeting (AGM) and being eligible offer their services for a further period of 5 financial years 2023-28 commencing from 1 SI April 2023 till the conclusion of Annual General Meeting to be held in 2028. The Board recommend their appointment.

Auditors Report

There is no qualification, reservation or adverse remark or disclaimer made by the auditor in the Auditors Report.

Share Capital

Paid-up Equity Capital of the Company is 1,05,01.778 Equity shares of Rs. 10/- each.

The Company has not issued any equity shares with differential rights during the year. Also there is no issue of sweat equity shares or employee stock options during the year. The Company has not provided any money to employees/ trustees for purchase of shares for benefit of employees.

Extract of the annual return

The extract of the annual return in Form No. MGT - 9 is enclosed with the report.

Conservation of energy, technology absorption and Research and Development

Unitec Fibers Private Limited has grown into well managed organization and having latest technology to manufacture various types of staple fibers from waste pet. The polyester liber manufactured by the company has superior bulkiness and soft touch. T his staple fiber is used in manufacturing of non-woven fabrics, geo textiles, furniture stuffing, mattresses, pillows and many other industrial areas. The company exports to middle east. China, Europe, Japan and many other countries.

fhe factory building is having RCC structure comprising of ground plus first floors and has AC sheet roof. The factory is presently having SSI registration. Being located in MI DC all other infrastructure in terms of water connection etc. are available, fhe existing unit has power connection of 800 HP and the same is sufficient for existing scale of manufacturing. The company currently operates on 100 % of its installed capacity. Due to good demand for the product in the domestic as well as international market proposes to increase the capacity in coming financial years. Organization is carrying out R&D activities to improve the quality of various grades of staple fibers.

Organization compliance of all Environmental and safety laws, fhe organization has installed a technologically well advanced system of water and air pollution management. Organization is conscious about the resource and continually establishes and monitors its specific consumption so as to control optimal resources and also prevent avoidable wastages.

Foreign Exchange Earnings and Outgoing

During the year the Company had

Earnings in foreign Currency RS. 1725.97 Lakhs

Incurred expenditure in foreign currency- RS. 749.05 Lakhs

Corporate Social Responsibility

fhe provisions relating to Corporate Social Responsibility are not applicable to the Company.

Directors
Name of Director	Date of Appointment
l.VIRANDER BEHL	11/02/2005
2.DEVINA BEIIL	11/02/2005
3.VIJAY BEHL	20/03/2016

Provisions relating to declaration by an Independent Director and Formal Annual Evaluation of the Board are not applicable to the Company.

Board Meetings

The Company held Board meetings on the following dates during the period l sl April 2022 to 31 sl March 2023:

28 th April 2022, 2 nd June 2022, 5 th September 2022. I s October 2022. 19 December 2022, and 20 th January 2023.

4

Audit Committee, Vigil Mechanism and Nomination and Remuneration Committee

The provisions relating to Audit Committee, establishment of vigil mechanism and Nomination and Remuneration Committee are not applicable to the Company.

Loans, Guarantees and Investments

The Company has loans, guarantees or investments envisaged by section 186 of the Companies Act 2013.

Materially significant related party transactions

There are no contracts or arrangements referred to in sub section (1) of section 188 of the Companies Act. 2013 hence the provisions of said section are not applicable.

Managerial Remuneration

The provisions of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are not applicable to the Company.

Secretarial Audit Report and Corporate Governance Certificate

The provisions of Secretarial Audit Report or Corporate Governance Certificate are not applicable to the Company,

Risk Management

During the Financial Year 2022-23, the Board of Directors have approved the Risk Management Policy. Your Company periodically assesses risk in the internal and external environment. There are no risks which in the opinion of Board threaten the existence of your Company.

Obligation of Company under the Sexual Harasment of Women at Workplaee (Prevention, Prohibition and Redressal Aet 2013)

In order to prevent sexual harassment at work place a new act The Sexual Harassment of Women at Work Place (prevention, Prohibition and Redressal) Act 1930 has been notified on 9 lh December 2013. Under the said Act every Company is required to set up an Internal Complaints Committee to look into complaints relating to sexual harassment at work place of any women employee.

Company has adopted a policy for prevention of Sexual Harassment of Women at workplace and has set up Committee for implementation of said policy. During tl c year the Company has not received any complaint of harassment.

Responsibility Statement

In terms of provisions of Section 134 (5) of the Companies Act. 2013, your Directors confirm as under:

a) that in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made from the same;

b) that they have selected such accounting policies and applied them consistently and made judgements 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 or loss of the company for the financial year ended on 31st March 2023.

c) that they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities

d) that they have prepared the Annual Accounts on a going concern basis.

e) that they have devised proper systems to ensure compliance with the provision of all applicable laws and such systems were adequate and operating effectively.

Date:- 31 st August 2023