Amal Ltd 2020-21

Amal Ltd | Annual Report 2020-21 Letter to the shareholders Fellow Shareholders, The start of a new decade typically brings hope, but confronted by compounding crises caused by the COVID-19 pandemic, we instead saw the world came to a near standstill. 2020-21 and even 2021-22 so far have been reminders of the exceptional times India is in; amid this, it is easy to fall prey to pessimism, but team Amal has moved forward with hope and hard work , remaining true to our Company purpose. In 2020-21 , our Company delivered, in spite of closure and disruption of operations during the first quarter, revenue of ` 31.66 cr ( ` 34.34 cr), EBIDTA of 41% (48%), profit before tax of ` 10.86 cr ( ` 12.69 cr) and RoCE of 37% (49%). During the last quarter of 2020-21, it almost wiped out the remaining carried forward loss (which at peak was ` 56 cr). This loss is expected to be wiped out in 2021-22. During 2020-21, our Company took up two expansion projects (one of debottlenecking existing capacity and the other of setting up a new plant in Amal Speciality Chemicals Ltd, a 100% newly formed subsidiary) with an investment of ` 81 cr; once completed, at 90% capacity and prevailing prices, consolidated sales are expected to reach about ` 117 cr with better overall performance. Atul Foundation, to which our Company contributed ` 26.65 lakhs towards fulfilling its obligation to the society, undertook projects of national importance. You may like to go through the link (at the end of this letter) of the video clip of Ankur project, one of the initiatives of Atul Foundation and also its website. Growing is considered incomplete without caring and sharing, and our Company is reinforcing this concept of inclusiveness as it moves in to the future. TeamAmal has five everlasting mandates . One, boost people productivity and remain lean in fixed costs; two, drive efficiency in manufacturing and other processes; three, pervade ‘R&D’ in every function; four, become financially resilient and five , work with customers on ideas with high potential. In essence, team Amal is working to bring multifarious improvements and thus create value for all its stakeholders. We are thankful to our customers for giving us the opportunity to serve and grow our Company – their expectations help us achieve higher standards. We recognise and appreciate the perseverance of every member of team Amal even in times like these. We are indebted to the Non-executive Directors for their involvement, analysis and direction. And finally, we value your trust as a shareholder – it is a source of continuous motivation. Even amid disruption caused by the COVID-19 pandemic, what remains so clear is that the basics of long-term success , namely, integrity, perseverance (not to give up), teamwork (learn from failures) and larger purpose, remain just the same, and we will stay true to them. Once the investments underway deliver value, we will like to see more bold moves ahead of us than behind us – For this, we are optimistic. Sincerely, (Rajeev Kumar) (Sunil Lalbhai) Managing Director Chairman https://youtu.be/WDhe202OKyU