Directors Report of Loyal Equipments Ltd.

Mar 31, 2018

BOARD’S REPORT

To The Shareholders,

The Directors have pleasure in presenting the 11^th (Eleventh) Annual Report together with the Audited Financial Statements of your Company for the financial year ended March 31, 2018.

1. FINANCIAL RESULTS:

The Company’s financial performance for the year ended March 31, 2018 is summarized as below:

(Amount in ‘000)

Particulars	Current Year 2017-18	Previous Year 2016-17
Revenue from operations	213335.11	193041.46
Other income (net)	2091.56	1798.35
Total Income	215426.67	194839.81
Less:
Operating & Administrative expenses	173012.01	149480.66
Profit Before Depreciation Interest & Tax	42414.66	45359.15
Less:
Depreciation and amortization expense	11234.26	9766.26
Finance costs	3441.11	3050.97
Profit before exceptional item and tax	27739.29	32541.92
Exceptional item	-	-
Profit before tax (PBT)	27739.29	32541.92
Tax expense	7830.29	10707.09
Profit after tax for the year (PAT)	19909.01	21834.83
EPS (Rs.)	2.34	3.21

2. OPERATION & REVIEW:

Revenue from the operations of your Company for the year 2017-18 was Rs. 21,33,35,110/-, 10.51% higher than Rs. 19,30,41,463/- in the previous year. Profit before Depreciation Interest & Tax for the current year was Rs. 4,24,14,660/- against Rs. 4,53,59,150/- in the previous year. Profit after Tax for the current year at Rs.

1,99,09,010 was decreased by 8.81% over Rs. 2,18,34,830/- in the previous year. Detailed report on operations of and structure of Business of the Company has been included in Management Discussion and Analysis Report, which forms part of this Annual Report.

3. RISK MANAGEMENT AND INTERNAL CONTROL

Your Company recognizes that risk is an integral part of business and is committed to managing the risks in a proactive and efficient manner. The Company at regular intervals monitors the financial, operational, legal risk to the Company through procedures like audit, inspections etc.

There is no risk, which in the opinion of the Board may threaten the existence of the Company. The internal financial controls are adequate and are monitored at regular intervals.

4. DIVIDEND

The Board thinks that the profits should be retained for the expansion of the Company, which is in pipeline for more growth and value addition to the company and forming a strong business base so that revenue flows from many channels and hence the Directors of your Company do not recommend any dividend for FY 2017-18.

5. SHARE CAPITAL

As on March 31, 2017, The Authorised share capital of the Company was Rs. 800 Lacs consisting of 80 Lacs equity shares of Rs. 10 each and during the financial year 2017-18, the Authorised Capital of the Company was increased from 800 Lacs to 1500 Lacs as approved by the shareholders of the Company in its 10^th Annual General Meeting held on August 29, 2017

During the financial year 2017-18, the shareholders of the company in the 10^th AGM, also approved the proposal for issue of Bonus Shares in the ratio 1:2 (i.e. One new equity share of Rs. 10 each for every Two existing equity share of Rs. 10 each) Subsequently, 34,00,000 bonus shares were issued & allotted on September 29, 2017. Consequent to issue of Bonus shares, the Issued and Paid up Share Capital of the Company was increased from Rs. 680 Lacs consisting of 68,00,000 equity shares of Rs. 10/- each to Rs. 1020.00 Lacs consisting of 1,02,00,000 equity shares of Rs. 10/- each.

6. TRANSFER TO RESERVES

The Company has not transferred any amount to the General Reserve account during the reporting period.

7. TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND

During the period under review, there is no unpaid/unclaimed dividend which is required to transfer in IEPF (Investor Education and Protection Fund) as per the provisions of the Companies Act, 2013.

8. MANAGEMENT AND DISCUSSION ANALYSIS REPORT:

A Separate report on Management Discussion and Analysis Report as required under clause 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been presented in a separate section forming part of this Annual Report.

9. CHANGE IN NATURE OF THE BUSINESS

There was no change in the nature of business of the Company during the year under review.

10. HUMAN RESOURCE DEVELOPMENT

The Company sees its employees as critical to the future and believes that every employee needs to possess apart from competence, capacity and capabilities, sustainable values, current and contemporary which would make them useful and relevant and competitive in managing the change constructively for overall growth of the organization. To this end the company’s approach and efforts are directed towards creating a congenial work atmosphere for individual growth, creativity and greater dedicated participation in organizational development. The Company believes that the success of an organization largely depends on the quality of its workforce. Employee relations remained cordial and peaceful throughout the year.

11. QUALITY INITIATIVES:

The Company is committed to the highest level of quality and continuous improvement programme are organized at all the level. The manufacturing operation of the Company is ISO 9001:2008, U-Stamp and U2- Stamp certified by the independent originations.

12. SUBSIDIARY COMPANIES:

The Company does not have any subsidiary companies hence Your Company is not required to present the consolidated financial statement as per the requirement of the provision of Section 136 of the Companies Act, 2013.

13. MATERIAL CHANGES AND COMMITMENTS

There is no material change and commitments affecting the Financial Position of the Company which have occurred between the end of the financial year of the Company to which the financial statements relates and the date of the report.

14. DIRECTORS AND KEY MANAGERIAL PERSONNEL

Mr. Rameshchandra Nathalal Patel, Chairman & Whole Time Director is liable to retire by rotation at the forthcoming Annual General Meeting and, being eligible, offer himself for re- appointment.

A Statement on declaration given by Independent Directors under section 149 sub-section (6) is given by Independent Director of the Company

There was no change in any Key Managerial Personnel of the Company during the year.

15. NUMBER OF MEETINGS OF THE BOARD

Ten (10) meetings of the board were held during the year. For details of the meetings of the board, please refer to the Corporate Governance Report, which forms part of this report.

16. BOARD EVALUATION

The Board evaluated the effectiveness of its functioning and that of the Committees and of individual directors by seeking their inputs on various aspects of Board/Committee Governance. The evaluation covered functioning and composition of the Board and its committees, understanding of the roles and responsibilities, experience, competencies, participation at the Board and Committee meetings, corporate governance practices etc.

Evaluation of the Board and its compositions was carried out through a defined process covering the areas of the Boards functioning viz. composition of the Board and Committees, understanding of roles and responsibilities, experience and competencies, contribution at the meetings etc.

17. POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION AND OTHER DETAILS

Pursuant to the requirement of Section 134(3)(e) and Section 178(3) of the Companies Act, 2013, the Board has, on the recommendation of the Nomination and Remuneration Committee, framed a policy on appointment of Directors including criteria for determining qualifications, positive attributes, independence of a Director and the policy on remuneration of Directors, KMP and other senior management has been disclosed in the corporate governance report, which forms part of this report.

18. AUDIT COMMITTEE

During the year under review, the Company constituted the Audit Committee and the primary objective is to monitor and supervise the financial reporting, to ensure accurate and timely disclosures, transparency, integrity and quality of financial reporting. As of the date of this report, the audit committee is comprised of Mr. Babubhai Patel (Chairman), Mr. Rameshchandra Nathalal Patel (Member) and Mr. Kalpesh Lalitchandra Joshi (Member).

19. STATUTORY AUDITORS

J. M. Patel & Bros., Chartered Accountants, who are the statutory auditors of the Company, hold office until the conclusion of the ensuing AGM and are eligible for re-appointment. Members of the Company at the AGM held on 30^th September, 2014 had approved the appointment of J. M. Patel & Bros. as the Statutory Auditors for a period of five years from the conclusion of the Annual General Meeting held on 30^th September, 2014 till the conclusion of Annual General Meeting of the Company to be held in calendar year 2019. As required by the provisions of the Companies Act, 2013, their appointment should be ratified by members each year at the AGM. Accordingly, requisite resolution forms part of the notice convening the AGM. The auditors’ report does not contain any qualifications, reservations or adverse remarks.

20. SECRETARIAL AUDITORS

Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Mr. Vivek Sharma, Proprietor of M/s Sharma Vivek & Associates, Company Secretary in practice to undertake the Secretarial Audit of the Company for the year under review. The Board has duly reviewed the Secretarial Auditor’s Report and the comments, appearing in the report are self-explanatory and do not call for any further explanation by the Board of Directors as provided under section 134 of the Act. The Secretarial Audit Report is annexed herewith as “Annexure-IV”.

21. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

The particulars of loans, guarantees and investments have been disclosed in the financial statements.

22. VIGIL MECHANISM /WHISTLE BLOWER POLICY

As per the provisions of Section 177 (9) & (10) of the Companies Act, 2013 read with Regulation 22 of Securities and Exchange Board Of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Company has a Whistle Blower Policy with a view to provide vigil mechanism to Directors, employees and other stakeholders to disclose instances of wrong doing in the workplace and report instances of unethical behaviour, actual or suspected fraud or violation of the Company’s code of conduct or ethics policy. The Whistle Blower Policy also states that this mechanism should also provide for adequate safeguards against victimization of Director(s)/ Employees who avail of the mechanism and also provide for direct access to the Chairman of the Audit Committee in exceptional cases.

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

The Company has zero tolerance towards sexual harassment at the workplace and 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 thereunder.

During the Financial Year 2017-18, the Company has not received any complaints of sexual harassment.

24. TRANSACTIONS WITH RELATED PARTIES

Pursuant to the provisions of Section 134 (3) read with Section 188 (2) of the Companies Act, 2013, details of transaction for the year under review are given in Form AOC-2 as Annexure-III to this report and in the section on Related Party Transactions in Corporate Governance Report.

25. EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in Form MGT 9 as per provisions of Companies Act, 2013 and rules there to be annexed to this report as “Annexure - II”.

26. PARTICULARS OF EMPLOYEES

The information required pursuant to Section 197 read with Rule 5 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules 2014 in respect of employees of the Company will be provide upon request. In terms of Section 136 of the Act, the reports and accounts are being sent to the members and others entitled thereto excluding the information on employee’s particulars which is available for inspection by members at the registered office of the Company during the business hours on all working days of the Company up to the date of ensuing Annual General Meeting of the Company. If any member is interested in inspection the same, the member may write to the Company Secretary in advance.

27. DEPOSITS FROM PUBLIC

Your Company has not accepted any Fixed Deposits as defined under Section 73 of the Companies Act, 2013 and rules framed thereunder.

28. DIRECTORS’ RESPONSIBILITY STATEMENT

As required by Section 134 (5) of the Companies Act, 2013, the Directors hereby confirm:

(i) in the preparation of the annual financial statements, applicable accounting standards have been followed and there are no material departures from the said standards;

(ii) such accounting policies have been selected and applied consistently and judgments and estimates made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at March 31, 2018 and of the profit of the company for the year ended on that date;

(iii) proper and sufficient care has been taken for maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for prevention and detection of fraud and other irregularities;

(iv) the annual financial statements have been prepared on a going concern basis;

(v) proper internal financial controls are in place and are adequate and are operating effectively; and

(vi) the systems to ensure compliance with the provisions of all applicable laws are in place and are adequate and operating effectively.

29. CORPORATE SOCIAL RESPONSIBILITY

The Company is not falling under the criteria as mentioned in the Section 135 of the Companies Act, 2013 and rules made thereof which specifies the requirement of forming the Corporate Social Responsibility Committee.

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

Details of the energy conservation, technology absorption and foreign exchange earnings and outgo are annexed to this report as “Annexure - I”.

31. ‘THINK GREEN, GO GREEN’ INITIATIVE

The Companies Act, 2013 permits companies to send documents like Notice of Annual General Meeting, Annual Report and other documents through electronic means to its members at their registered email addresses, besides sending the same in physical form.

As a responsible Corporate Citizen, the Company has actively supported the implementation of ‘Green Initiative’ of Ministry of Corporate Affairs (MCA) and effected electronic delivery of Notices and Annual Reports to those shareholders whose email ids were already registered with the respective Depository Participants (DPs) and who have not opted for receiving such documents in physical form. The intimation of dividends (interim/final) is also being sent electronically to those shareholders whose email ids are registered.

Members, who have not registered their e-mail addresses so far, are requested to register their e-mail address with the Registrar and Share Transfer agent (R&TA) of the Company/Depository participant (DP) of respective member and take part in the Green Initiative of the Company, for receiving electronic communications and support the “THINK GREEN, GO GREEN” initiative.

Further, pursuant to Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management and Administration) Rules, 2014, the Company is providing e-voting facility to all members to enable them to cast their votes electronically in respect of resolutions set forth in the Notice of Annual General Meeting (AGM). The detailed instructions for e-voting are provided in the Notice of AGM.

32. ACKNOWLEDGEMENT

We thank our customers, vendors, dealers, investors, business associates and bankers for their continued support during the year. We place on record our appreciation of the contribution made by employees at all levels.

For and on behalf of the Board

Loyal Equipments Limited

Date: June 27, 2018

Place: Dahegam, Gandhinagar.

Sd/-

Alkesh Rameshchandra Patel

Managing Director

DIN - 02672297

---

Mar 31, 2016

To The Members,

The directors submit Ninth annual report of Loyal Equipments Limited (the “Company” or “Loyal”) along with the audited financial statements for the financial year (FY) ended March 31, 2016.

1. FINANCIAL RESULTS:

The Company’s financial performance for the year ended March 31, 2016is summarized as below:

_Amount in Rs.

Particulars	Current Year 2015-16	Previous Year 2014-15
Revenue from operations	111,308,750/-	148,568,490/-
Other income (net)	1,215,510/-	152,710/-
Total Income	112,524,260/-	148,721,200/-
Less:
Operating & Administrative expenses	90,702,250/-	109,896,600/-
Profit Before Depreciation Interest & Tax	21,822,010/-	38,824,600/-
Less:
Depreciation and amortization expense	10,105,230/-	10,294,840/-
Finance costs	3,269,330/-	3,419,360/-
Profit before exceptional item and tax	8,447,450/-	25,110,400/-
Exceptional item	-	-
Profit before tax (PBT)	8,447,450/-	25,110,400/-
Tax expense	3,193,370/-	8,746,320/-
Profit after tax for the year (PAT)	5,254,080/-	16,364,080/-
Balance brought forward from previous year	33,630,250/-
Amount available for appropriation	38,884,330/-	19,860,570/-
Appropriations
Proposed dividend on equity shares (excluding tax)	3,400,000/-	3,000,000/-
Tax on dividends	692,160/-	509,850/-
General reserve	14,048,990/-	3,614,810/-
Statutory reserve	-	-
Balance carried to balance sheet	27,314,770/-	33,630,250/-

2. OPERATION & REVIEW:

Revenue from the operations of your Company for the year was Rs. 111,308,750/-, 25.08% lower than Rs. 148,568,490/- in the previous year. Profit before Depreciation Interest & Tax was Rs. 21,822,010/- against Rs. 38,824,600/- in the previous year. Profit after Tax for the year at Rs. 5,254,080/- was lower by 67.89% over Rs. 16,364,080/- in the previous year. Detailed report on operations of and structure of Business of the Company has been included in Management Discussion and Analysis Report, which forms part of this Annual Report.

3. RISK MANAGEMENT AND INTERNAL CONTROL

Your Company recognizes that risk is an integral part of business and is committed to managing the risks in a proactive and efficient manner. The Company at regular intervals monitors the financial, operational, legal risk to the Company through procedures like audit, inspections etc. There is no risk, which in the opinion of the Board may threaten the existence of the Company. The internal financial controls are adequate and are monitored at regular intervals.

4. ISSUE OF EQUITY SHARES

The Company allotted 18,00,000 Equity shares of Rs. 10/- each at a premium of Rs. 8/- per share through Initial Public Offer (IPO) on SME Platform of BSE Limited on 14^th July, 2015. The Company got listed on BSE SME Platform with effective from July 16, 2016.

5. USE OF PROCEEDS

The proceeds from the Issue of the Company vide prospectus dated 28th June, 2016 have been utilized / are in process of utilization for the purpose for which they were raised and there is no deviation in the utilization of proceeds.

6. DIVIDEND

Based on the Company’s performance, the directors are pleased to recommend for approval of the members a final dividend of Rs. 0.50 per equity share (5% on the Equity Shares of Rs. 10/- each) on 6,800,000 Equity Shares of Rs 10/- each for the year ended2015-16. The final dividend on equity shares, if approved by the members would involve a cash outflow of Rs4,092,160/-including dividend tax.

7. TRANSFER TO RESERVES

The Company has transferred Rs. 14,048,990/- to the Capital Reserve during the year and transferred Rs. 1,877,400/- for the Gratuity provision during the year.

8. MANAGEMENT AND DISCUSSION ANALYSIS REPORT:

A Separate report on Management Discussion and Analysis Report as required under clause 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been presented in a separate section forming part of this Annual Report.

9. HUMAN RESOURCE DEVELOPMENT

During the year under review various employee centric policies were implemented by the Company for improving employee skills and enhancing employee productivity. The relations with the employees were cordially during the year under review.

10. QUALITY INITIATIVES:

The Company is committed to the highest level of quality and continuous improvement programme are organized at all the level. The manufacturing operation of the Company is ISO 9001:2008, U-Stamp and U2- Stamp certified by the independent originations.

11. SUBSIDIARY COMPANIES:

The Company does not have any subsidiary companies hence Your Company is not required to present the consolidated financial statement as per the requirement of the provision of Section 136 of the Companies Act, 2013.

12. DIRECTORS’ RESPONSIBILITY STATEMENT

As required by Section 134 (5) of the Companies Act, 2013, the Directors hereby confirm:

(i) in the preparation of the annual financial statements, applicable accounting standards have been followed and there are no material departures from the said standards;

(ii) such accounting policies have been selected and applied consistently and judgments and estimates made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at March 31, 2016 and of the profit of the company for the year ended on that date;

(iii) proper and sufficient care has been taken for maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for prevention and detection of fraud and other irregularities;

(iv) the annual financial statements have been prepared on a going concern basis;

(v) proper internal financial controls are in place and are adequate and are operating effectively; and

(vi) the systems to ensure compliance with the provisions of all applicable laws are in place and are adequate and operating effectively.

13. DIRECTORS AND KEY MANAGERIAL PERSONNEL

Pursuant to the provisions of section 149 of the Companies Act, 2013, Mr. Babubhai Patel and Mr. Girish Desai were appointed as independent directors at the annual general meeting of the Company held on 11^th June, 2015. Mr. kalpesh Joshi was appointment as an independent director of the Company at the Extra Ordinary General Meeting held on 13^th June, 2015. They have submitted a declaration that each of them meets the criteria of independence as provided in section 149(6) of the Act and there has been no change in the circumstances which may affect their status as independent director during the year.

Mr. RameshchandraNathalalPatel retires by rotation and being eligible has offered himself for reappointment.

Pursuant to the provisions of section 203 of the Act, during the year under review the Company has appointed Mr. AlkeshRameshchandra Patel as Managing Director, Mr. Amit Patel as Chief Financial Officer and Ms. KomalMotiani as Company Secretary as the key managerial personnel of the Company. There has been no change in the key managerial personnel since their appointment.

14. NUMBER OF MEETINGS OF THE BOARD

Seventeen meetings of the board were held during the year. For details of the meetings of the board, please refer to the corporate governance report, which forms part of this report.

15. BOARD EVALUATION

The Board evaluated the effectiveness of its functioning and that of the Committees and of individual directors by seeking their inputs on various aspects of Board/Committee Governance. The evaluation covered functioning and composition of the Board and its committees, understanding of the roles and responsibilities, experience, competencies, participation at the Board and Committee meetings, corporate governance practices etc.

Evaluation of the Board and its compositions was carried out through a defined process covering the areas of the Boards functioning viz. composition of the Board and Committees, understanding of roles and responsibilities, experience and competencies, contribution at the meetings etc.

16. POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION AND OTHER DETAILS

Pursuant to the requirement of Section 134(3)(e) and Section 178(3) of the Companies Act, 2013, the Board has, on the recommendation of the Nomination and Remuneration Committee, framed a policy on appointment of Directors including criteria for determining qualifications, positive attributes, independence of a Director and the policy on remuneration of Directors, KMP and other senior management has been disclosed in the corporate governance report, which forms part of this report.

17. AUDIT COMMITTEE

During the year under review, the Company constituted the Audit Committee and the primary objective is to monitor and supervise the financial reporting, to ensure accurate and timely disclosures, transparency, integrity and quality of financial reporting. As of the date of this report, the audit committee is comprised of Mr.Babubhai Patel (Chairman),Mr.RameshchandraNathalal Patel (Member) and Mr.Kalpesh Joshi (Member).

18. AUDITORS

J. M. Patel & Bros., Chartered Accountants, who are the statutory auditors of the Company, hold office until the conclusion of the ensuing GM and are eligible for re-appointment. Members of the Company at the AGM held on 30^th September, 2014 had approved the appointment of J. M. Patel & Bros. as the Statutory Auditors for period of five years from the conclusion of the Annual General Meeting held on 30^th September, 2014 till the conclusion of Annual General Meeting of the Company to be held in calendar year 2018.As required by the provisions of the Companies Act, 2013,their appointment should be ratified by members each year at the AGM. Accordingly, requisite resolution forms part of the notice convening the AGM. The auditors’ report does not contain any qualifications, reservations or adverse remarks.

Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Amit K. Patel, Company Secretary in practice to undertake the Secretarial Audit of the Company for the year under review. The Board has duly reviewed the Secretarial Auditor’s Report and the comments, appearing in the report are self-explanatory and do not call for any further explanation by the Board of Directors as provided under section 134 of the Act. The Secretarial Audit Report is annexed herewith as “Annexure-IV”.

19. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

The particulars of loans, guarantees and investments have been disclosed in the financial statements.

20. TRANSACTIONS WITH RELATED PARTIES

Pursuant to the provisions of Section 134 (3) read with Section 188 (2) of the Companies Act, 2013, details of transaction for the year under review are given in Form AOC-2 as Annexure-III to this report and in the section on Related Party Transactions in Corporate Governance Report.

21. EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in Form MGT 9 as per provisions of Companies Act, 2013 and rules thereto is annexed to this report as “Annexure - II”.

22. PARTICULARS OF EMPLOYEES

The information required pursuant to Section 197 read with Rule 5 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules 2014 in respect of employees of the Company will be provide upon request. In terms of Section 136 of the Act, the reports and accounts are being sent to the members and others entitled thereto excluding the information on employees particulars which is available for inspection by members at the registered office of the Company during the business hours on all working days of the Company up to the date of ensuing Annual General Meeting of the Company. If any member is interested in inspection the same, the member may write to the Company Secretary in advance.

23. DEPOSITS FROM PUBLIC

Your Company has not accepted any Fixed Deposits as defined under Section 73 of the Companies Act, 2013 and rules framed there under.

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

Details of the energy conservation, technology absorption and foreign exchange earnings and outgo are annexed to this report as “Annexure - I”.

25. ACKNOWLEDGEMENT

We thank our customers, vendors, dealers, investors, business associates and bankers for their continued support during the year. We place on record our appreciation of the contribution made by employees at all levels.

On behalf of the board of directors

Date:2^nd August, 2016

Place: Dahegam, Gandhinagar,

AlkeshRameshchandra Patel RameshchandraNathalal Patel

Managing Director Chairman& Whole-time

Director