To the Members,

Your Board of Directors ("Board") is pleased to present the Sixth Annual Report of Aarti Surfactants Limited ("ASL" or "Company" or "your Company") together with the Audited Financial Statements for the financial year ended March 31, 2024 ("year under review" or "year" or "FY24").

1. FINANCIAL PERFORMANCE AND SUMMARY

( H in Lakhs)

On a consolidated basis, the revenue for FY24 was H 58,999.05 lakhs, over the previous year's revenue of H 60,162.73 lakhs. The profit after tax (PAT) for FY24 and FY23 was H 2,121.33 lakhs and H 1,276.45 lakhs respectively.

2. CONSOLIDATED FINANCIAL STATEMENTS

YourDirectorsarepleasedtoattachtheConsolidated Financial Statements pursuant to Section 129(3) of the Companies Act, 2013 ("Act") and Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations"), prepared in accordance with the provisions of the Act and the Indian Accounting Standards (Ind AS).

3. STATE OF COMPANY'S AFFAIRS

The state of your Company's affairs is given in the Management Discussion and Analysis, which forms part of this Annual Report.

4. RESERVES

The Board of Directors of your Company has decided not to transfer any amount to the Reserves for the year under review.

5. DIVIDEND

In accordance with Regulation 43A of the SEBI Listing Regulations, the Company has adopted the Dividend Distribution Policy, which details various parameters subject to consideration of which the Board may recommend or declare dividend, including working capital and capital expenditure requirements, funds required for acquisitions, reducing debt, contingencies, etc. The Dividend Distribution Policy is available on the Company's website at https:// www.aarti-surfactants.com/policies.htm.

The Board of Directors of your company, after considering holistically the relevant circumstances

6. CAPITAL & FINANCE

Your Company's Equity Share Capital is as follows:

The Company had, issued 8,92,291 equity shares of face value of H 10/- each on right basis (‘Rights Equity Shares'). In accordance with the terms of issue, H 222/- i.e. 40% of the Issue Price per Rights Equity Share, was received from the concerned allottee's on application and shares were allotted. The Right's Issue Committee of the Board of Directors made the ‘First and Final call' of H 333/- per Rights Equity Share in January, 2024. As on March 31, 2024, an aggregate amount of H 60.85 lakhs towards 18,273 partly paid up shares is unpaid. The equity shares so allotted rank pari passu with the existing equity shares of the Company. Except as stated herein, there was no other change in the share capital of the Company.

In terms of Regulation 32 of SEBI Listing Regulations, there was no deviation or variation in utilization of issue proceeds, received in the form of ‘first and final call money' from conversion of 8,74,018 partly paid-up equity shares into fully paid-up equity shares of face value H 10/- each, during the period ended March 31, 2024. The said conversion and utilization of Issue Proceeds was in accordance with the Letter of Offer dated January 18, 2023 pertaining to Company's Rights Issue. The necessary details with respect to the utilization of issue proceeds is available on the Company's website at https://www. aarti-surfactants.com/material-and-recent-news.

Total *long-term borrowings of the Holding Company and its Subsidiary stood at H 4,793.43 as on March 31, 2024 as against H 7,334.31 lakhs as on March 31, 2023. Short term borrowings were H 4,929.12 as on March 31, 2024 as against H 7,578.94 lakhs as on March 31, 2023.

*The long term borrowings includes 0% Non-Convertible Redeemable Preference Shares of face value of H 10/- each.

The Company has not defaulted on payment of any dues to the financial lenders.

The Company's borrowing programmes have received the credit ratings from CARE Ratings Limited, details of which is given in the Corporate Governance Report forming part of this Annual Report and is also available on the website of the Company.

During FY2023-24, the Company's outlay towards capex was H 1609.25 lakhs for the standalone and H 1635.28 lakhs at the consolidated level.

7. DETAILS OF SUBSIDIARY / ASSOCIATE / JOINT VENTURE COMPANIES

As at date of this Report, the Company has 1 wholly owned subsidiary, namely, Aarti HPC Limited.

In compliance with the applicable provisions of the Act read alongside the SEBI Listing Regulations and relevant Indian Accounting Standards ("Ind AS"), the Board of Directors approved the audited standalone financial statements for the financial year ending March 31, 2024, during their meeting on April 22, 2024. Concurrently, the audited consolidated financial statements of the Company and its subsidiary for the fiscal year were also approved. These audited financial statements are included in the Annual Report as mandated by Section 129 of the Act.

The separate statement containing the salient features of the financial statements of the subsidiary of the Company in the prescribed format AOC-1, is annexed as "Annexure A". The statement also provides highlights of the performance and financial position of the subsidiary Company.

Further, in alignment with the stipulations of Section 136 of the Act, the Annual Report, audited financial statements, and other related documents have been made available on the Company's website at https://www.aarti-surfactants.com/ disclosures-under-regulation-46-of-sebi-lodr-regulations-2015. Additionally, these documents are available for inspection both at the Company's registered office and electronically. Members may arrange an inspection by emailing investors@aarti-surfactants.com.

During the year under review, the Company does not have any material subsidiary. In line with the requirements of the Act and SEBI Listing Regulations, the Company's Policy for Determining Material Subsidiary is also accessible on the website at https://www.aarti-surfactants.com/policies.htm.

It is noted that the Company does not have any associate, joint venture or holding company relationships.

8. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

Details of the loans, guarantees and investments, as required under Section 186 of the Act and Schedule V of the SEBI Listing Regulations, are provided as part of the notes to the financial statements of the Company.

9. MANAGEMENT DISCUSSION AND ANALYSIS

A detailed Management Discussion and Analysis forms an integral part of this Report and gives an update, inter alia, on the following matters:

Industry structure and developments

Opportunities and Threats

Segment-wise overview of business performance

Outlook

Risks and concerns

Internal control systems and their adequacy

Financial Overview

Human Resources

Your Company actively seeks to adopt global best practices for an effective functioning of the Board and believes in having a truly diverse Board whose wisdom and strength can be leveraged for creating greater stakeholder value, protection of their interests and better corporate governance. The Company's Board comprises eminent persons with proven competence and integrity, who bring in vast experience and expertise, strategic guidance and leadership qualities.

The Board of Directors ("Board") of the Company is carefully structured to achieve an optimal balance, consisting of executive and non-executive directors, including an Independent Woman Director. This composition adheres strictly to the current provisions of the Companies Act and the SEBI Listing Regulations ensuring compliance with governance standards.

The Board is proactive in providing strategic guidance and fulfills its fiduciary responsibilities with a steadfast commitment to safeguarding the interests of the Company and its stakeholders.

Additionally, all directors of the Company have confirmed that there are no disqualifications against them for appointment as directors, in accordance with Section 164 of the Companies Act, 2013.

The Company has received requisite declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence prescribed under Section 149(6) of the Act read with Rule 5 of the Companies (Appointment and Qualification of Directors) Rules, 2014 and Regulation 16(1)(b) of the SEBI Listing Regulations.

The Independent Directors have also confirmed that they are not aware of any circumstance or situation that exists or may be reasonably anticipated that could impair or impact their ability to discharge their duties with an objective independent judgment and without any external influence. These declarations include confirmations that they are not barred from holding the office of director by any SEBI order or any other authoritative body. In the opinion of the Board, all the Independent Directors satisfy the criteria of independence as defined under the Act, rules framed thereunder and the SEBI Listing Regulations, and that they are independent of the Management of the Company. Furthermore, they have affirmed their adherence to the Code of Conduct outlined in Schedule IV of the Act.

In the opinion of the Board, all Independent Directors (including those appointed during the year) possess requisite qualifications, experience, expertise, proficiency and hold high standards of integrity for the purpose of Rule 8(5)(iiia) of the Companies (Accounts) Rules, 2014. In terms of the requirements under the SEBI Listing Regulations, the Board has identified list of key skills, expertise and core competencies of the Board, including the Independent Directors, details of which are provided as part of the Corporate Governance Report.

As required under Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, all the Independent Directors (including those appointed during the year) have registered themselves with the Independent Directors Databank and also completed the online proficiency test conducted by the Indian Institute of Corporate Affairs, wherever required.

A separate meeting of the Independent Directors was convened to assess the performance of Non-Independent Directors and the effectiveness of the Board and its committees collectively. During this session, a comprehensive questionnaire designed to probe various aspects of Board operations was distributed among the Directors. The evaluation criteriaforIndependentDirectorsencompassedtheir level of engagement in meetings, interpersonal skills, understanding of the business and its subsidiaries, capacity for independent judgment, expertise, and adherence to the compliance framework.

In terms of the Company's Policy on Nomination and Remuneration Committee ("NRC Policy"), the Board at its meeting held on July 24, 2023, based on the recommendation of NRC and evaluation of the balance of skills, knowledge, experience and expertise on the Board and that of the respective Director, approved and recommended to the members the following matter relating to re-appointment of Independent Director, who is not liable to retire by rotation:

1) Re-appointment of Mr. Mulesh M. Savla (DIN: 07474847) as an Independent Director for a second term of five years with effect from June 13, 2024 upto June 12, 2029, based on the positive outcome of his performance evaluation and contributions during his first term as Independent Director.

Subsequently, the Members approved the aforesaidre-appointmentvidespecialresolution on the 5^th Annual General Meeting (AGM) of the Company held on September 12, 2023.

The Board at its meeting held on April 22, 2024, based on the recommendation of NRC, approved the below matter subject to approval of Members at the 6^th Annual General Meeting:

1) Re-appointment of Mrs. Misha B. Gala (DIN: 08523865) as an Independent Director for a second term of five years with effect from August 20, 2024 upto August 19, 2029.

In line with Section 152 of the Act, the Companies (Management & Administration) Rules, 2014, and the Articles of Association of the Company, Mr. Chandrakant V. Gogri (DIN: 00005048), a Non- Executive Director, is due to retire by rotation at the upcoming Annual General Meeting. Mr. Gogri, being eligible, has offered himself for re-appointment. The Board of Directors recommends his re-appointment, acknowledging his invaluable contributions to the board and the Company at large.

It may be noted that Members of the Company approved continuation of Mr. Chandrakant V. Gogri as Non – Executive Director of the Company after attaining the age of 75 years in their meeting dated August 10, 2021 pursuant to Regulation 17 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), 2015 and other applicable provisions.

Pursuant to Regulation 36 of the SEBI Listing Regulations read with Secretarial Standard-2 on General Meetings, a brief profile of the Directors proposed to be re-appointed is made available, as a part of the Notice convening 6^th AGM.

As of the date of this report, the Key Managerial Personnel of the Company, in accordance with the provisions of Section 2(51) and Section 203 of the Companies Act 2013, include Mr. Nikhil P. Desai, serving as Chief Executive Officer & Managing Director, Mr. Nitesh H. Medh as Chief Financial Officer and Mrs. Priyanka A. Chaurasia as Company Secretary & Compliance Officer.

The Members of the Board of the Company are afforded many opportunities to familiarise themselves with the Company, its Management and its operations. The Directors are provided with all the documents to enable them to have a better understanding of the Company, its various operations and the industry in which it operates.

All the Independent Directors of the Company are made aware of their roles and responsibilities at the time of their appointment through a formal letter of appointment, which also stipulates various terms and conditions of their engagement.

Executive Directors and Senior Management provide an overview of the operations and familiarize the new Non-Executive Directors on matters related to the Company's values and commitments. They are also introduced to the organization structure, constitution of various committees, board procedures, risk management strategies, etc.

Strategic Presentations are made to the Board where Directors get an opportunity to interact with Senior Management. Directors are also informed of the various developments in the Company through Press Releases, emails, etc.

Pursuant to Regulation 25(7) of the SEBI Listing Regulations, the Company imparted various familiarisation programmes for its Directors including periodic review of Investments of the Company at Finance Investment Committee Meetings, Regulatory updates, Industry Outlook, Business Strategy at the Board Meetings and changes with respect to the Companies Act, Taxation and other matters, SEBI Listing Regulations, Framework for Related Party Transactions, etc. at the Audit Committee Meetings, Economic Environment & Global Scenario, Frontier Risks, Business Entity Risks, etc. at the Risk Management Committee Meetings, Products Launch and their Showcase etc. The details as required under Regulations 46 of the SEBI Listing Regulations are available on the website of your Company at https://www.aarti-surfactants. com/independent-directors.htm.

The details of the Board of Directors and Committees along with their composition, number of meetings held and attendance at the meetings during the FY2023-24 are provided in the Corporate Governance Report which forms part of this Annual Report. The intervening gap between the Board/ Committee's Meetings was within the period prescribed under the Companies Act, 2013 and the SEBI Listing Regulations.

Pursuant to Section 134(3)(c) of the Act, the Directors of your Company, to the best of their knowledge and based on the information and explanations received from the Company, confirm that:

a) in the preparation of the annual accounts for the financial year ended March 31, 2024, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

b) 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 your Company as at March 31, 2024 and of the profit of your Company for that period;

c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities;

d) the annual accounts have been prepared on a ‘going concern' basis;

e) internal financial controls to be followed by the Company were laid down and such internal financial controls are adequate and were operating effectively and

f) proper systems to ensure compliance with the provisions of all applicable laws were devised and that such systems were adequate and operating effectively.

Pursuant to the provisions of the Companies Act, 2013 and the SEBI Listing Regulations, the Board has carried out an annual evaluation of its own performance and that of its Committees as well as performance of all the Directors individually including Independent Directors, Chairman of the Board, CEO & Managing Director, Executive Director and Non-Executive Director. Feedback was sought by way of a structured questionnaire covering various aspects of the Board's functioning such as adequacy of the composition of the Board and its Committees, Board Culture, Execution and Performance of Specific Duties, Obligations and Governance and the evaluation was carried out based on responses received from the Directors.

Committees were evaluated based on structure, member participation, regulatory compliance, meeting effectiveness, agenda and minutes quality, and recommendation impact.

Individual Directors were evaluated by the Nomination and Remuneration Committee, and the Board's overall performance was assessed by Independent Directors. Evaluation criteria included meeting attendance, skills, constructive engagement, business knowledge, and industry understanding.

Results were shared with respective Committees and Board of Directors, affirming commitment to high governance standards.

The Directors expressed their satisfaction with the Evaluation process. During the year under review, NRC ascertained and reconfirmed that the deployment of "questionnaire" as a methodology, is effective for evaluation of performance of Board and Committees and Individual Directors.

ThedetailsofthecompositionoftheAuditCommittee, terms of reference, meetings held, etc. are provided in the Corporate Governance Report, which forms part of this Report. During the year under review, the Board has accepted the recommendations of the Audit Committee on various matters. There have been no instances where such recommendations have not been accepted.

Pursuant to the provisions of Section 139 of the Act, the Members had at the 1^st AGM held on October 21, 2019 appointed Gokhale & Sathe, Chartered Accountants (Firm Registration. No. 103264W) as the Statutory Auditors of the Company for a period of 5 (five) years. Accordingly, the first term of Statutory Auditors expires on the conclusion of 6^th AGM.

The Board at its meeting held on April 22, 2024 based on the recommendation of the Audit Committee, approved the proposal for re-appointment of Gokhale & Sathe, Chartered Accountants (Firm Registration. No. 103264W) as the Statutory Auditors of the Company for a period of 5 (five) years, commencing from the conclusion of the 6^th AGM upto the conclusion of 11^th AGM to be held in the year 2029, subject to approval of the Members at the ensuing AGM.

Gokhale & Sathe have consented to act as Statutory Auditors and confirmed their eligibility to be re-appointed in terms of Section 141 and other applicable provisions of the Act.

The aforesaid re-appointment was recommended by the Audit Committee/Board to the members based on the positive outcome of review of performance of Gokhale & Sathe during their first term as auditors and considering various factors such as their independence, industry experience, skills and expertise and quality of audit. The Audit Committee periodically reviews the independence of Auditors through quarterly affirmations, review of non-audit services, internal checks and balances to mitigate conflict of interest, etc.

The Auditor's Report on the financial statements of the Company for the financial year ended March 31, 2024 forms part of the Annual Report. The said report was issued by the Statutory Auditors with an unmodified opinion and does not contain any qualifications, reservations or adverse remarks. During the year under review, the Auditors have not reported any fraud under Section 143(12) of the Act and therefore disclosure of details under Section 134(3)(ca) of the Act is not applicable.

In terms of Section 148 of the Act read with the Companies (Cost Records and Audit) Rules, 2014, the Company is required to maintain cost accounting records and have them audited every year. Accordingly, the Board at its meeting held on April 22, 2024, based on the recommendation of the Audit Committee, appointed PHS & Associates, Cost Accountant (firm registration no.: 101038), as the Cost Auditor of the Company to conduct audit of the cost records for the financial year ending March 31, 2025. A remuneration of H 1,00,000/- (Rupees One Lakh only) plus applicable taxes and out of pocket expenses, has been fixed for the Cost Auditor, subject to the ratification of such fees by the Members at the 6^th AGM. Accordingly, the matter relating to ratification of the remuneration payable to the Cost Auditor for the financial year ending March 31, 2025 forms part of the Notice of the 6^th AGM. The Company has received requisite consent and certificate of eligibility from PHS & Associates.

During the year under review, the Cost Auditor has not reported any fraud under Section 143(12) of the Act and therefore disclosure of details under Section 134(3)(ca) of the Act is not applicable.

The Company has maintained cost records as specified under section 148(1) of the Act.

Pursuant to Section 204 of the Act read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board had appointed CS Sunil M. Dedhia (COP No. 2031), Proprietor of Sunil M. Dedhia & Co, Company Secretary in Practice as the Secretarial Auditor of the Company to conduct audit of the secretarial records.

The Secretarial Audit Report in form MR-3 for FY2023-24 is enclosed as "Annexure B" to this report. The Secretarial Audit Report does not contain any qualifications, reservations or adverse remarks. During the year under review, the Secretarial Auditor has not reported any fraud under Section 143(12) of the Act and therefore disclosure of details under Section 134(3)(ca) of the Act is not applicable.

At our company, Risk Management stands as a cornerstone of Corporate Governance. We firmly believe that a robust Risk Management Framework ensures effective controls and monitoring mechanisms, essential for the smooth and efficient operation of our business. By fostering a culture of risk awareness, we enhance our ability to maximize members value.

We continually strive to integrate cutting-edge technology into our business processes and organizational interfaces. This ongoing effort involves reviewing business processes, leveraging available applications, and digitizing operations with stringent controls. This approach enables seamless integration with our consumers, customers, and stakeholders, thereby enhancing agility and responsiveness across our operations.

Cybersecurity remains paramount in safeguarding our digital assets against cyber threats, data breaches, and other security risks. Our company has implemented comprehensive measures aligned with the principles of Identify, Protect, Detect, Respond, and Recover to bolster our cybersecurity framework.

To oversee these initiatives, we have established a dedicated Risk Management Committee (RMC). This committee plays a crucial role in assisting the Board by monitoring the implementation of our risk management policy. It evaluates the adequacy of our risk management systems and fulfills other responsibilities mandated under SEBI Listing Regulations. Detailed composition, terms of reference, and meeting attendance of the RMC are outlined in our Corporate Governance Report.

By prioritizing risk management and embracing technological advancements, we aim to sustain operational excellence and fortify stakeholder confidence in our organization.

In terms of the applicable provisions of the SEBI Listing Regulations, your Board has adopted a Risk Management Policy, which is available on the Company's website at https://www.aarti-surfactants.com/policies.htm.

Internal Financial Controls are an integral part of the risk management process which in turn is a part of Corporate Governance addressing financial and financial reporting risks. The Internal Financial Controls have been documented and embedded in the business processes. Your Company's approach on Corporate Governance has been detailed in the Corporate Governance Report. Your Company has deployed the principles enunciated therein to ensure adequacy of Internal Financial Controls with reference to:

Effectiveness and efficiency of operations

Reliability of financial reporting

Compliance with applicable laws and regulations

Prevention and detection of frauds

Safeguarding of assets

Your Company has defined policies and standard operating procedures for all key business processes to guide business operations in an ethical and compliant manner. Compliance to these policies is ensured through periodic self-assessment as well as internal and statutory audits. The Company has robust ERP and other supplementary IT systems which are an integral part of internal control framework. The Company continues to constantly leverage technology in enhancing the internal controls.

The Audit Committee of the Board reviews the internal processes, systems and the internal financial controls and accordingly, the Directors' Responsibility Statement contains a confirmation as regards adequacy of the internal financial controls. Assurances on the effectiveness of Internal Financial Controls is obtained through management reviews, self-assessment, continuous monitoring by functional heads as well as testing of the internal financial control systems by the internal auditors during the course of their audits. We believe that these systems provide reasonable assurance that our internal financial controls are designed effectively and are operating as intended.

The Statutory Auditor's Reports on Internal Financial Controls as required under Clause (i) of sub-section 3 of Section 143 of the Act is annexed with the Independent Auditors' Report.

In line with the requirements of the Act, read with the amended SEBI Listing Regulations, the Company's Policy on Related Party Transactions is available on the website at https://www.aarti-surfactants.com/ policies.htm. The Policy captures framework for Related Party Transactions and intends to ensure that proper reporting, approval and disclosure processes are in place for all transactions with related parties.

All transactions with related parties and subsequent modifications are placed before the Audit Committee for its review and approval. An omnibus approval from the Audit Committee is obtained for the related party transactions which are repetitive in nature, based on the criteria approved by the Audit Committee. The Audit Committee reviews all transactions entered into pursuant to the omnibus approvals so granted (including long-term or recurring RPTs), on a quarterly basis.

All transactions with related parties entered into during FY2023-24 were at arm's length basis and in the ordinary course of business and in accordance with the provisions of the Act and rules made thereunder, the SEBI Listing Regulations and the Company's Policy on Related Party Transactions.

During the year under review, there were no transactions for which consent of the Board was required to be taken in terms of Section 188(1) of the Act and accordingly, no disclosure is required in respect of the related party transactions in Form AOC-2 under Section 134(3)(h) of the Act and rules framed thereunder. Further, there were no material related party transactions in terms of the SEBI Listing Regulations requiring approval of the Members during the year under review. The details of related party transactions are provided in the accompanying financial statements.

Pursuant to Regulation 23(9) of the SEBI Listing Regulations, your Company has filed the reports on related party transactions with the Stock Exchanges within statutory timelines.

Your Company has in place Nomination and Remuneration Committee (NRC) of the Board, which performs the functions as mandated under the Act, the SEBI Listing Regulations and such other functions as prescribed by the Board from time to time. The composition of NRC, attendance at its meetings and other details have been provided as part of the Corporate Governance Report.

In accordance with the applicable provisions of the Act, the SEBI Listing Regulations, and the related rules, your Company has established a Nomination and Remuneration Policy. This policy outlines the framework for the appointment and remuneration of Directors, Key Managerial Personnel's and Senior Management Personnel's of the Company.

It also sets criteria for determining qualifications, positive attributes, succession planning, and the evaluation of Directors. The policy is available on the Company's website at https://www.aarti-surfactants.com/policies.htm.

The NRC has also formulated a separate policy on Board Diversity, which is available on the Company's website at https://www.aarti-surfactants. com/policies.htm.

The ratio of remuneration of each Director to the median employees' remuneration as per Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, is disclosed in "Annexure C" to this report.

The statement containing particulars of remuneration of employees as required under Section 197(12) of the Act read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 will be made available during 21 days before the Annual General Meeting in electronic mode to any member upon request. In terms of Section 136(1) of the Act, the Annual Report is being sent to the Members, excluding the aforesaid information. Any Member desirous of obtaining a copy of the said information may write to the Company Secretary at investors@aarti-surfactants.com.

At ASL, we regard our employees as our most valuableassetandtheprimarydriversofoursuccess.

Our company philosophy is built on fostering a supportive and empowering work environment where every individual can thrive and contribute to their fullest potential. We are committed to creating a culture of continuous learning, innovation, and collaboration, ensuring that our team members feel valued, motivated, and engaged.

To support our employees in their professional and personal growth, we have implemented a range of initiatives designed to enhance their skills, well-being, and overall job satisfaction. Our key initiatives include:

a) Our Company invest in comprehensive training and development programs that cover leadership development, technical skills training, and soft skills workshops. These programs ensure our team is equipped with the knowledge and capabilities needed to excel in their roles and drive the company's success.

b) Our organizational environment is built on the principles of diversity, inclusion, and mutual respect. We actively promote a workplace where diverse perspectives are encouraged, and every voice is heard. Our diversity and inclusion programs include regular training sessions, the establishment of Employee Resource Groups (ERGs), and targeted recruitment efforts to ensure a balanced and representative workforce. By embracing diversity, we foster a culture of innovation and creativity that propels our company forward.

c) We prioritize the well-being and work-life balance of our employees through a variety of wellness initiatives and flexible work arrangements. Our health and wellness programs, employee assistance services, and flexible working hours are designed to support the physical and mental health of our team members. We believe that a healthy work-life balance is crucial for maintaining high levels of productivity and job satisfaction, and we continuously strive to create an environment where our employees can achieve this balance.

We believe fairness and equal treatment to all the employees across the organisation. We have well defined performance evaluation and rewarding systems. We consistently foster performance culture. We identify the training needs during the PMS and plan for the necessary training during the year and monitor the same through annual training calendar. The basic philosophy is organisation grows if the people grow.

We also enter into an agreement with our Union Employees from time to time; maintain a healthy and peaceful environment. We recognise the right of employees of collective bargaining.

Our employees play a pivotal role in the organization's success. By nurturing talent, fostering innovation and appropriately recognizing and rewarding contributions, we encourage employees to give their best. We conduct various activities to promote a culture of safety and well-being within the organization:

a) National Safety Day and Week includes a series of activities such as lighting the ceremonial lamp (deep prajwalan), displaying banners, pinning safety badges, awarding the best department for housekeeping and safety norms, making safety pledges, and explaining the National Safety Day theme. These activities underscore our commitment to safety and create a sense of community and shared responsibility.

b) Competitions related to safety, including safety belt wearing contests, poster, slogan, poem, and essay contests, safety presentations and quizzes, fire drills, and safety skid competitions. These competitions not only engage employees but also raise awareness about safety practices and encourage proactive safety measures.

c) Our on-job safety training sessions cover crucial topics such as the use of personal protective equipment (PPE), emergency evacuation procedures, material handling, electrical safety, housekeeping, and basic firefighting. These training sessions equip our employees with the necessary skills and knowledge to maintain a safe working environment.

d) Engaged workforce is the most productive source for the organisation in their success, delivering the best of their abilities with greater sense of belongingness and commitment at their jobs. We at ASL believe every small step contributes value to employees' Work-Life-Balance. Celebrating employees' special moments (Birthdays/Anniversary/Regional Festivals), extending support to foster intellectual growth through various Learning and Development initiatives to nurture conviviality and happiness culture at workplace.

Through these comprehensive initiatives, we aim to create a workplace where employees feel recognized, valued, and motivated to contribute to our collective success. By investing in our employees and fostering a positive work environment, we ensure that ASL remains a dynamic, innovative, and successful organization.

As on March 31, 2024, the Company had 334 permanent employees on the rolls.

Your Company believes that effective leadership, robust policies, processes and systems and a rich legacy of values form the hallmark of our best corporate governance framework. The Board, in conjunction with the management, sets values of your Company and drives the Company's business with these principles. These ethics and values are reflected in Company's culture, business practices, disclosure policies and relationship with its stakeholders. These ethics and values is practiced by Company, which is at par with best international standards and good corporate conduct.

Pursuant to Regulation 34 of the SEBI Listing Regulations, a Report on Corporate Governance and a certificate obtained from the Statutory Auditors confirming compliance with Corporate Governance requirements are provided in Annexures forming part of this Annual Report.

At Specialty Surfactants Limited, we prioritize the highest standards of Environment, Health, and Safety (EHS) across all facets of our operations. Committed to regulatory compliance and sustainable practices, we have implemented rigorous EHS policies and procedures tailored to the specialty surfactants industry. Throughout the year, our team has diligently conducted risk assessments, identified and mitigated potential hazards, and fostered a culture of safety through comprehensive training programs. We have continued to invest in state-of-the-art equipment and technologies to enhance workplace safety and environmental stewardship. Our proactive approach includes regular audits, robust emergency preparedness plans, and continuous improvement initiatives based on performance metrics and stakeholder feedback. By prioritizing the well-being of our employees, minimizing environmental impact, and maintaining transparent communication with stakeholders, Specialty Surfactants Limited remains committed to leading with integrity in EHS practices within our industry.

At ASL, sustainability lies at the core of our corporate strategy and operational philosophy. As a leader in the specialty surfactant industry, we are steadfast in our dedication to advancing sustainable practices throughout our business ecosystem. Our commitment extends beyond compliance to proactive measures aimed at reducing environmental impact and promoting resource efficiency. Through continuous innovation in surfactant technology and responsible sourcing, we strive to deliver products that not only meet stringent performance criteria but also contribute positively to environmental sustainability.

Key initiatives include optimizing our manufacturing processes to minimize energy consumption and emissions, implementing rigorous waste management protocols, and fostering partnerships thatsupporttheprinciplesofthecirculareconomy.By embedding sustainability into our business strategy, we not only enhance operational resilience but also strengthen our position as a responsible corporate citizen. Our efforts are guided by a long-term vision to create lasting value for our stakeholders while safeguarding the planet for future generations.

We remain committed to transparency and accountability in our sustainability journey, recognizing that our actions today shape the opportunities of tomorrow. Together with our stakeholders, we are driving positive change and setting new benchmarks for sustainability within the specialty surfactant industry.

The SEBI Listing Regulations stipulate that the top 1000 listed companies by market capitalization must include a Business Responsibility & Sustainability Report (BRSR) in their Annual Report. This requirement aims to enhance transparency and accountability regarding the environmental, social and governance (ESG) practices of these companies. However, your Company is not ranked amongst the top 1000 listed entities for the fiscal year 2023-24. Consequently, we are not required to include the BRSR in our Annual Report for this period.

The Vigil Mechanism as envisaged in the Act and the Rules prescribed thereunder and the SEBI Listing Regulations is implemented through the Company's

Whistle-Blower Policy. The Whistle-Blower Policy of your Company is available on the Company's website at https://www.aarti-surfactants. com/policies.htm.

It enables the Directors, employees and all stakeholders of the Company to report genuine concerns (about unethical behaviour, actual or suspected fraud, or violation of the Code) and provides for adequate safeguards against victimisation of persons who use such mechanism and makes provision for direct access to the Chairman of the Audit Committee.

A quarterly report on the whistle-blower complaints, as received, is placed before the Audit Committee for its review and that no complaints has been received during the year under review.

The Company believes that every woman employee should have the opportunity to work in an environment free from any conduct which can be considered as Sexual Harassment. The Company has Zero Tolerance towards sexual harassment at the workplace.

The Company is committed to treating every employee with dignity and respect. The Company has formulated a policy on ‘Protection of Women's Rights at Workplace' as per the provisions of ‘The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 and Rules, 2013' (POSH Act and rules). This Policy is available on the website of the Company at https:// www.aarti-surfactants.com/policies.htm. The POSH Policy is gender inclusive and the framework ensures complete anonymity and confidentiality, the details of which may be referred to in the Board's Report.

This policy, supported by an Internal Complaint Committee, is structured in accordance with Section 4 of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. It underscores our proactive stance in addressing and mitigating issues of sexual harassment, ensuring a safe and supportive atmosphere for all employees.

Reflective of the efficacy of these measures, it is noteworthy that during the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace Act, 2013. This underscores our ongoing commitment to maintaining a respectful and secure work environment.

During the year, the Company organised sensitization and awareness programs vide inductions for new joiners, e-learning modules for all employees, trainees, associates including sending emailers etc. to sensitise all employees to conduct themselves in a professional manner.

The Company has constituted a Corporate Social Responsibility (CSR) Committee in terms of the requirements of Section 135 of the Act read with the rules made thereunder. The composition, detailed terms of reference of the CSR Committee, attendance at its meetings and other details have been provided in the Corporate Governance Report. The primary role of this committee is to approve the CSR activities to be undertaken, allocate the necessary expenditure and oversee the execution and effectiveness of these initiatives. The Board of Directors, along with the CSR Committee, actively reviews and monitors the CSR activities implemented by the Company. During the year under review, our CSR initiatives were executed in accordance with the annual action plan previously approved by the Board. These activities, which are distinctly separate from our normal business operations, focus on pivotal and relevant areas such as livelihood and financial inclusion, animal welfare, agriculture, community development, education, and healthcare. Our aim is to continue focusing on these areas to achieve meaningful and positive outcomes that contribute to the Sustainable Development Goals.

Your Company's CSR philosophy is anchored on this core purpose of making a difference to the lives of all its stakeholders to help them achieve their full potential. Your Company believes that economic value and social value are inter-linked, and it has a commitment towards the inter-dependent ecosystem consisting of various stakeholders. Furthermore, our CSR policy outlines the guidelines and processes for undertaking CSR activities and the same is available on the Company's website at https://www.aarti-surfactants.com/policies.htm ensuring transparency and accessibility in how we approach our social responsibilities

During FY2023-24, your Company spent H 34.09 lakhs towards its CSR activities. The disclosures required to be given under Section 135 of the Act read with Rule 8(1) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 are given in "Annexure D" forming part of this Board Report.

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3) (m) of the Act read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is provided in "Annexure E" forming part of this Board Report.

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 and notified by the Ministry of Corporate Affairs, have been duly complied by your Company.

During the year under review, your Company has neither invited nor accepted any deposits from the public falling within the ambit of Section 73 of the Act and the rules framed thereunder. The requisite return for FY2023 with respect to amount(s) not considered as deposits has been filed.

During the year under review, no significant material orders were passed by the Regulators or Courts or Tribunals impacting the going concern status and the Company's operations. However, Members' attention is drawn to the following: - a) Statement on Contingent Liabilities and Commitments in the Notes forming part of the financial statements. b) The Regional Director, (Ahmedabad) Northwestern Region, Ministry of Corporate Affairs vide its order dated April 28, 2023 had granted its approval for Shifting of Registered Office from the ‘State of Gujarat' to the ‘State of Madhya Pradesh' and the said change was made effective from May 30, 2023 pursuant to the Board's approval.

Pursuant to Section 134(3)(a) of the Act, the annual return for FY24 prepared in accordance with Section 92(3) of the Act read with Companies (Management and Administration) Amendment Rules, 2014 is made available on the website of the Company at https:// www.aarti-surfactants.com/annual-return.htm

There is no amount due, to be transferred to the IEPF account.

We've adopted a third-party managed IT-based Compliance Management System that houses all applicable regulations and compliance requirements. It features an alert system that notifies users and relevant personnel of upcoming compliance deadlines. Certificates capturing the compliance status of all applicable laws and regulations are generated quarterly and presented to the Board of Directors for review.

‘SWAYAM' is a secure, user-friendly web-based application, developed by "Link Intime India Pvt Ltd.", our Registrar and Share Transfer Agents, that empowers members to effortlessly access information through a dashboard and avail various services in digital mode. This application can be accessed at https://swayam.linkintime.co.in

Neither the CEO & Managing Director nor the Executive Director received any remuneration or commission from the subsidiary of your Company. Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions / events on these items during the year under review:

1. Issue of equity shares with differential rights as to dividend, voting or otherwise.

2. Issue of Shares (including Sweat Equity Shares) to employees of the Company under any Scheme.

3. Voting rights which are not directly exercised by the employees in respect of shares for the subscription / purchase of which loan was given by the Company (as there is no scheme pursuant to which such persons can bene cially hold shares as envisaged under section 67(3) (c) of the Companies Act, 2013).

4. There are no material changes and commitments affecting the financial position of your Company, which have occurred between the end of FY24 and the date of this report.

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

6. There was no application made and proceeding initiated / pending by any Financial and/or Operational Creditors against your Company under the Insolvency and Bankruptcy Code, 2016.

7. The Company has not made any one-time settlement for loans taken from the Banks or Financial Institutions, and hence the details of difference between amount of the valuation done at the time of one-time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof is not applicable.

8. There was no revision of financial statements and Board's Report of your Company during the year under review.

Your Board takes this opportunity to thank Company's employees at all levels for their hard work and commitment. Your Directors would like to express their grateful appreciation for the assistance and support received from the Members, Government Authorities, Auditors, Financial Institutions, Customers, Employees, Suppliers, other business associates and various other stakeholders. We look forward to continued support of all these partners in the future.