minechem limited · 2019-12-05 · • whilst the company was under cirp, the registrar of...

ASHAPURA MINECHEM LIMITED

Ref No.: Minechem/Stock Exch/Letter/7913

The Dy. General Manager,

Bombay Stock Exchange Limited

Corporate Relations & Services Dept.,

Phirojsha Jeejibhoy Towers,

Dalai Street,

Mumbai - 400 023.

Scrip Code: 527001

4th December, 2019

The Dy. General Manager,

National Stock Exchange of India Ltd.,

Corporate Relations Dept.,

Exchange Plaza,

Bandra-Kurla Complex, Bandra (E),

Mumbai —400 051.

Scrip Code: ASHAPURMIN

Dear Sir/Madam,

Sub: Annual Report of the Company for the Financial Year 2018-19

Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements)

Regulations, 2015, please find attached herewith Annual Report of the Company for the

financial year 2018-19.

Kindly take the same on record.

Thanking you,

Yours faithfully,

For ASHAPURA MIN PC EM LTD.

U1 P0 IKE

PANY SECRETARY & VP (Group Affairs)

End.: As Above

Regd. Office:

Jeevan Udyog Building, 3rd Floor, 278, D. N. Road, Fort, Mumbai - 400 001. (India) Tel. : +91-22 6665 1700 Email : [email protected] www.ashapura.com

CIN No. L14108MH1982PLCO26396

S

140 - 142

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NOTES

• YourCompanyhadunderappropriateandrelevantprovisionsoftheInsolvencyandBankruptcyCode,2016(IBC)moved

totheNationalCompanyLawTribunal(NCLT),MumbaiBench,on12thDecember,2018.Thesaidpetitionwasadmitted

bytheNCLTandbyitsorderdated15thMarch,2019andCorporateInsolvencyResolutionProcess(“CIRP”)wasinitiated

fortheCompanywitheffectfrom15thMarch,2019.

• BythesameOrder,ShriArunChadha(Registrationno.asIBBI/IPA-001/IP-P00165/2017-18/10334)wasappointedas

anInterimResolutionProfessional(‘IRP’)oftheCompanyandpursuanttotheprovisionsofSection17ofIBC,thepower

oftheBoardofDirectorsoftheCompanystoodsuspendedandsuchpowersweretobeexercisedbythesaidIRPfrom

thedateoftheaforesaidNCLTorder.

• Further,theHon’bleNationalCompanyLawAppellateTribunal(NCLAT)hadvideitsorderdated8thApril,2019,stayed

theabovereferredNCLTOrdertotheexceptionthattheInterimResolutionProfessional(IRP)mayfunctionandreportto

theoffice.

• Subsequently, upon filing an application for withdrawal of insolvency proceedings from NCLT, Mumbai Bench,

the Hon’ble National Company Law Appellate Tribunal (NCLAT), vide its order dated 30th September, 2019,

set aside the said order of the NCLT, Mumbai Bench dated 15th March, 2019. The said order of NCLAT also

ordered the closure of the insolvency proceedings at NCLT, Mumbai. Consequently, the appointment of

ShriArunChadhaasanIRPstoodcancelledandtheCompanywasreleasedfromalltherigoursoflawandwasallowed

tofunctionindependentlyundertheableguidanceandauthorityoftheBoardofDirectorsw.e.f.30thSeptember,2019.

• Accordingly,yourCompanywasunderCIRPduringtheperiod15thMarch,2019to30thSeptember,2019.

• WhilsttheCompanywasunderCIRP,theRegistrarofCompanies,Mumbai,onanapplicationmadebytheIRPrequesting

foranextensionforconveningthe38thAnnualGeneralMeetingfortheFinancialYearended31stMarch,2019,granted

videanorderdated3rdSeptember,2019,anextensionofthreemonthsforholding38thAnnualGeneralMeetingofthe

Company.

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Ashapura Minechem Limited

NOTES

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NOTICE

NOTICEisherebygiventhatthe38thAnnualGeneralMeetingoftheMembersofASHAPURA MINECHEM LIMITEDwillbeheldonFriday, 27th December, 2019 at3.00 p.m. atRangaswar Hall,4th Floor, Y. B. Chavan Centre, General Jagannath Bhosale Road, Nariman Point, Mumbai - 400021,totransactthefollowingbusiness:

ORDINARY BUSINESS:

1. Toreceive,considerandadopttheAuditedFinancialStatements(Standalone&Consolidated)oftheCompanyfortheyearended31stMarch,2019,togetherwiththeAuditors’andDirectors’Reportsthereon.

2. ToappointaDirectorinplaceofShriChetanShah(DIN-00018960)whoretiresbyrotationandbeingeligible,offershimselfforre-appointment.

3. RatificationofremunerationofCostAuditors:

Toconsiderandifthoughtfit,topassthefollowingresolutionasanOrdinaryResolution:

“RESOLVED THATpursuanttotheprovisionsofSection148andallotherapplicableprovisions,ifany,oftheCompaniesAct,2013andrulesframedthereunder,asamendedfromtimetotimeandsubjecttosuchguidelinesandapprovalasmayberequired,appointmentofM/s.S.K.Rajani&Co.,CostAccountantsasCostAuditors,forconductingauditofthecostaccountingrecordsrelatingtotheCompany’sProductsfortheFinancialYear2019-2020ataremunerationofRs.1,91,250/-(RupeesOneLakhNinetyOneThousandTwoHundredFiftyonly)perannumplusGoods&ServiceTax,asconfirmedandacknowledgedbytheInterimResolutionProfessional(IRP)andsubsequentlyconfirmedbytheBoardoftheCompany,beandisherebyratified.”

SPECIAL BUSINESS:

4. Re-designationofShriChetanShah(DIN-00018960)asanExecutiveChairmanoftheCompany:

Toconsiderandifthoughtfit,topassthefollowingresolutionasanOrdinaryResolution:“RESOLVED THATpursuanttotheprovisionsofSections196,197,198and203readwithScheduleVandotherapplicableprovisions,ifany,of theCompaniesAct,2013and theRulesmade thereunder (includingany statutorymodification(s)or re-enactment thereof)and in termsofrecommendationsoftheNomination&RemunerationCommitteeandapprovaloftheBoardofDirectors,theCompanyherebyaccordsitsapprovalandconsentfortheredesignationofShriChetanShah(DIN-00018960)asan‘ExecutiveChairman’oftheCompany,foraperiodof3yearswitheffectfrom24thOctober,2019ontermsandconditionsincludingremunerationasaresetoutintheStatementpursuanttoSection102oftheCompaniesAct,2013annexedtothisNoticeandwhichformspartoftheAgreementbetweentheCompanyandShriChetanShah,withlibertytotheBoardofDirectors(hereinafterreferredtoas“theBoard”whichtermshallbedeemedtoincludethedulyauthorisedCommitteeoftheBoardincludingtheNomination&RemunerationCommittee)toalterandvarythetermsandconditionsofthesaidappointment,includingtheremuneration,subjecttoceilingasspecifiedinScheduleVoftheCompaniesAct,2013.

RESOLVED FURTHER THATtheBoardofDirectorsoftheCompanyoranyCommitteethereofbeandisherebyauthorizedtodoallsuchacts,deedsandthingsasitmayinitsabsolutediscretionthinknecessary,expedientordesirable;tosettleanyquestionordoubtthatmayariseinrelationtheretoinordertogiveeffecttotheforegoingresolutionandtoseeksuchapproval/consentfromtheconcerned/appropriateauthorities,asmayberequiredinthisregard.”

5. Re-appointmentofShriHarishMotiwalla(DIN:00029835)asNon-Executive,IndependentDirectoroftheCompany:

Toconsiderandifthoughtfit,topassthefollowingresolutionasaSpecialResolution:

“RESOLVED THAT pursuantto provisionsofSections149,152andotherapplicableprovisionsoftheCompaniesAct,2013(theAct)andtheRulesmadethereunder(includinganystatutorymodification(s)orre-enactmentthereof)readwithScheduleIVoftheActandtheapplicableprovisionsofSecuritiesExchangeBoardof India (ListingObligationsandDisclosureRequirements)Regulations,2015 (“ListingRegulations)(includinganystatutorymodificationsorre-enactmentthereof),andintermsofrecommendationsoftheNomination&RemunerationCommitteeandapprovaloftheBoardofDirectors,ShriHarishMotiwalla(DIN:00029835),whowasappointedasanIndependentDirectoroftheCompany,whoseperiodofofficeexpiredon24thSeptember,2019andwhohassubmittedadeclarationconfirmingthecriteriaofindependenceunderSection149(6)oftheActandRegulation16oftheListingRegulations,beandisherebyre-appointedasaNon-ExecutiveIndependentDirector,notliabletoretirebyrotationandwhoshallholdofficeforasecondtermoffiveconsecutiveyearswitheffectfrom25thSeptember,2019,ontheBoardoftheCompany.

“RESOLVED FURTHER THAT pursuanttoRegulation17oftheSEBI(ListingObligationsandDisclosureRequirements)(Amendment)Regulations,2018approvaloftheMembersoftheCompanybeandisherebyaccordedtoShriHarishMotiwallawhoshallattaintheageof75yearsinMarch2020,duringtheabovetermofre-appointment,tocontinuesuchappointmentasNon-ExecutiveIndependentDirectoroftheCompanyforfiveyearsonthesametermsandconditionsofsuchre-appointmentevenafterattainingtheageof75years.”

RESOLVED FURTHER THAT theBoardofDirectorsbeandisherebyauthorizedtodoalltheacts,deedsandthingswhichareincidentalandancillarytogiveeffecttothisresolution.”

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6. Re-appointmentofShriAbhilashMunsif(DIN-02773542)asNon-Executive,IndependentDirectoroftheCompany:

Toconsiderandifthoughtfit,topassthefollowingresolutionasaSpecialResolution:

“RESOLVED THAT pursuant to provisionsofSections149,152andotherapplicableprovisionsof theCompaniesAct,2013 (theAct)andtheRulesmadethereunder(includinganystatutorymodification(s)orre-enactmentthereof)readwithScheduleIVoftheActandpursuanttoRegulation17&otherapplicableprovisionsofSecuritiesExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(“ListingRegulations)(includinganystatutorymodificationsorre-enactmentthereof),andintermsofrecommendationsoftheNomination& Remuneration Committee and approval of the Board of Directors, Shri AbhilashMunsif (DIN: 02773542), Independent Director of theCompany,whoseperiodofofficeexpiredon24thSeptember,2019andwhohassubmittedadeclarationconfirmingthecriteriaofindependenceunderSection149(6)oftheActandRegulation16oftheListingRegulations,beandisherebyre-appointedasaNon-ExecutiveIndependentDirector,notliabletoretirebyrotationandwhoshallholdofficeforasecondtermoffiveconsecutiveyearswitheffectfrom25thSeptember,2019,ontheBoardoftheCompany.

RESOLVED FURTHER THAT theBoardofDirectorsbeandisherebyauthorizedtodoalltheacts,deedsandthingswhichareincidentalandancillarytogiveeffecttothisresolution.”

ByOrderoftheBoardofDirectors Sd/- SACHIN POLKE COMPANY SECRETARY & VICEPRESIDENT(GROUPAFFAIRS)

Mumbai,13thNovember,2019

NOTES:

1. TherelevantExplanatoryStatementpursuanttoSection102oftheCompaniesAct,2013,inrespectofSpecialBusinessisannexedhereto.

2. AMEMBERENTITLEDTOATTENDANDVOTEATTHEMEETINGISENTITLEDTOAPPOINTPROXY(IES)TOATTENDANDVOTE INSTEADOFHIMSELFANDTHEPROXYNEEDNOTBEAMEMBEROFTHECOMPANY.

3. Theinstrumentappointingproxy,inordertobeeffective,mustbedepositedattheRegisteredOfficeoftheCompany,dulycompletedandsigned,notlessthan48hoursbeforethecommencementofthemeeting.ApersoncanactasproxyonbehalfofMembersnotexceedingfifty(50)andholdingintheaggregatenotmorethan10%ofthetotalsharecapitaloftheCompany.IncaseaproxyisproposedtobeappointedbyaMemberholdingmorethan10%ofthetotalsharecapitaloftheCompanycarryingvotingrights,thensuchproxyshallnotactasaproxyforanyotherpersonorshareholder.

4. CorporateMembersintendingtosendtheirAuthorisedRepresentative(s)toattendtheAnnualGeneralMeetingarerequestedtosendadulycertifiedcopyoftheBoardResolutionauthorisinghim/themtoattendandvoteatthemeeting.

5. MembersarerequestedtobringtheircopiesofAnnualReportandAttendanceSlipforattendingtheMeeting.

6. BriefdetailsoftheDirector(s),whoareseekingappointment/re-appointment,areannexedheretoasperrequirementsoftheRegulation36(3)oftheSecuritiesandExchangeBoardofIndia(ListingobligationsandDisclosureRequirements)Regulations,2015(‘ListingRegulations’)readwithSecretarialStandard2onGeneralMeetingsissuedbytheInstituteofCompanySecretariesofIndia.

7. Membersarerequestedtoaddressallcorrespondences,includingdividendmatters,ifany,totheRegistrarandShareTransferAgent,M/s.LinkIntimeIndiaPvt.Ltd.,C-101,1stFloor,247Park,LBSMarg,Vikhroli(West),Mumbai–400083.

8. Themembersarerequestedtointimate,wellinadvance,totheCompanyandtotheDepositories,asthecasemaybe,ofthechangesintheiraddresseswiththepostalpincodenumbersandalsothee-mailids&particularsoftheirBankAccountNumberstominimisethechancesoffraudulentencashmentofthefuturedividendwarrants/cheques/drafts,ifany.

9. Members,holdingsharesinphysicalform,mayavailofthefacilityofnominationintermsofSection72oftheActandrulesmadethereunder,byfilingprescribedFormNo.SH.13(induplicate)withtheCompany’sRegistrar&ShareTransferAgent.Incaseofsharesheldindematerializedform,thenominationhastobelodgedwiththerespectiveDepositoryParticipants(DP).

During the Financial Year 2018-19, the Securities and Exchange Board of India (‘SEBI’) and theMinistry of Corporate Affairs (‘MCA’) hasmandatedthatexistingMembersoftheCompanywhoholdsecuritiesinphysicalformandintendtotransfertheirsecuritiesafterApril1,2019,candosoonlyindematerializedform.Inviewoftheaboveandtheinherentbenefitsofholdingsharesinelectronicform,Membersholdingsharesinphysicalformarerequestedtoconsiderconvertingtheirshareholdingtodematerialisedform.

10. TheCompany’sTransferBookswillremainclosedfrom21stDecember,2019to27thDecember,2019(bothdaysinclusive).11.QueriesonaccountsandoperationsoftheCompany,ifany,[email protected],atleastthreedaysin

advanceoftheMeetingsothattheanswersmaybemadeavailableattheMeeting.

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12. TheMinistryofCorporateAffairs(MCA)hasadopted/implemented“GreenInitiativeinCorporateGovernance”allowingpaperlesscompliancesbyCompanies throughelectronicmode. TheCompaniesarenowpermitted to send variousnotices/documents to its shareholders throughelectronicmodetotheregisteredemailaddressesoftheshareholders.

TosupportthisgreeninitiativeandtoreceivecommunicationfromtheCompanythroughelectronicmode,memberswhohavenotregisteredtheire-mailaddressesandholdingsharesinphysicalformarerequestedtocontacttheCompany’sRegistrar&ShareTransferAgentandregistertheire-mailIDandMembersholdingsharesindematerialisedformarerequestedtocontacttheirDepositoryParticipant(DP).Membersmaypleasenotethatnotices,annualreports,etc.willalsobeavailableontheCompany’swebsiteviz.www.ashapura.com.

13. TheNoticeoftheMeetingalongwiththeAnnualReport2018-2019isbeingsentbyelectronicmodetothoseMemberswhosee-mailaddressesareregisteredwiththeCompany/Depositories,unlessanyMemberhasspecificallyrequestedforaphysicalcopyofthesame.ForMemberswhohavenotregisteredtheire-mailaddresses,physicalcopiesarebeingsentbythepermittedmode.

14. The Securities and ExchangeBoardof India (SEBI) vide itsCircularNo. SEBI/HO/MIRSD/DOP1/CIR/P/2018/73dated20thApril, 2018hasmandatedtheregistrationofPermanentAccountNumber(PAN)andBankAccountDetailsofalltheirshareholdersholdingsharesinphysicalmodethroughtheirRTA.

Membersholdingsharesinphysicalformaretherefore,requestedtosubmittheirPANandBankAccountDetailstotheCompany’sRTA,viz.M/s.LinkIntimeIndiaPvt.Ltd.,bysendingself-attestedcopyofPANCardalongwithself-attestedlegiblecopyofAadhar/passport/utilitybill(notolderthan3months)andOriginalcancelledchequeleafcontainingtheBankA/cNo.,BankName,typeofaccount,IFSCCode,MICRCodeandthenameoftheshareholderprintedonthechequeleaf.

IncaseswhereinthecancelledchequeleafdoesNOTcontaintheshareholder’snameprintedonit,MembersarerequestedtosubmittheOriginalcancelledchequeleafalongwithlegiblecopyofthebankpassbook/bankstatementspecifyingtheKYCdetailsoftheregisteredshareholdersuchasthename,address,bankaccountnumberetc.dulyattestedbytheOfficerofthesameBankwithhissignature,name,employeecode,designation,bankseal&addressstamp,phoneno.anddateofattestation.

E-VotingFacility:

I. IncompliancewiththeprovisionsofSection108oftheCompaniesAct,2013,Rule20oftheCompanies(ManagementandAdministration)Rules,2014asamendedbytheCompanies(ManagementandAdministration)AmendmentRules,2015andRegulation44oftheListingRegulations,theCompanyispleasedtoprovidemembers,facilitytoexercisetheirrighttovoteonresolutionsproposedtobeconsideredatthe38thAnnualGeneralMeeting(AGM),byelectronicmeansandthebusinessmaybetransactedthroughe-VotingServices.ThefacilityofcastingthevotesbythemembersusinganelectronicvotingsystemfromaplaceotherthanvenueoftheAGM(“remotee-voting”)willbeprovidedbyCentralDepositoryServices(India)Limited(CDSL).

II. ThefacilityforvotingthroughballotpapershallbemadeavailableattheAGMandthemembersattendingthemeetingwhohavenotcasttheirvotebyremotee-votingshallbeabletoexercisetheirrightatthemeetingthroughballotpaper.

III. Thememberswhohavecasttheirvotebyremotee-votingpriortotheAGMmayalsoattendtheAGMbutshallnotbeentitledtocasttheirvoteagain.

IV. Theinstructionsforshareholdersvotingelectronicallyareasunder:

(i) ThevotingperiodbeginsonTuesday, 24thDecember,2019at9.00a.m.andendsonThursday,26th December, 2019 at 5.00 p.m.Duringthisperiodshareholders’oftheCompany,holdingshareseitherinphysicalformorindematerializedform,asonthecut-offdate,i.e.Friday, 20th December, 2019maycasttheirvoteelectronically.Thee-votingmoduleshallbedisabledbyCDSLforvotingthereafter.

(ii)Theshareholdersshouldlogontothee-votingwebsitewww.evotingindia.com.

(iii) ClickonShareholders.

(iv) NowEnteryourUserID

a. ForCDSL:16digitsbeneficiaryID,b. ForNSDL:8CharacterDPIDfollowedby8DigitsClientID,c. MembersholdingsharesinPhysicalFormshouldenterFolioNumberregisteredwiththeCompany.

(v) NextentertheImageVerificationasdisplayedandClickonLogin.

(vi)Ifyouareholdingsharesindematformandhadloggedontowww.evotingindia.comandvotedonanearliervotingofanycompany,thenyourexistingpasswordistobeused.

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(vii) Ifyouareafirsttimeuserfollowthestepsgivenbelow:

For Members holding shares in Demat Form and Physical Form

PAN

Enteryour10digitalpha-numericPANissuedbyIncomeTaxDepartment(Applicableforbothdematshareholdersaswellasphysicalshareholders)

• MemberswhohavenotupdatedtheirPANwiththeCompany/DepositoryParticipantarerequestedtousethesequencenumberinthePANfield,asprintedoncommunicationenclosedwiththeAnnualReport.

DividendBankDetailsORDateofBirth(DOB)

EntertheDividendBankDetailsorDateofBirth(indd/mm/yyyyformat)asrecordedinyourdemataccountorinthecompanyrecordsinordertologin.

• Ifboththedetailsarenotrecordedwiththedepositoryorcompanypleaseenterthememberid/folionumberintheDividendBankdetailsfieldasmentionedininstruction(iv).

(viii) Afterenteringthesedetailsappropriately,clickon“SUBMIT”tab.

(ix) MembersholdingsharesinphysicalformwillthendirectlyreachtheCompanyselectionscreen.However,membersholdingsharesindematformwillnowreach‘PasswordCreation’menuwhereintheyarerequiredtomandatorilyentertheirloginpasswordinthenewpasswordfield.Kindlynotethatthispasswordistobealsousedbythedematholdersforvotingforresolutionsofanyothercompanyonwhichtheyareeligibletovote,providedthatcompanyoptsfore-votingthroughCDSLplatform.Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.

(x) ForMembersholdingsharesinphysicalform,thedetailscanbeusedonlyfore-votingontheresolutionscontainedinthisNotice.

(xi) ClickontheEVSNfortherelevant<CompanyName>onwhichyouchoosetovote.

(xii) Onthevotingpage,youwillsee“RESOLUTIONDESCRIPTION”andagainstthesametheoption“YES/NO”forvoting.Selecttheoption“YES”or “NO”asdesired. Theoption “YES” implies that youassent to the ResolutionandoptionNO implies that youdissent to theResolution.

(xiii) Clickonthe“RESOLUTIONSFILELINK”ifyouwishtoviewtheentireResolutiondetails.

(xiv) Afterselectingtheresolutionyouhavedecidedtovoteon,clickon“SUBMIT”.Aconfirmationboxwillbedisplayed.Ifyouwishtoconfirmyourvote,clickon“OK”,elsetochangeyourvote,clickon“CANCEL”andaccordinglymodifyyourvote.

(xv) Onceyou“CONFIRM”yourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.

(xvi) Youcanalsotakeaprintofthevotescastbyclickingon“Clickheretoprint”optionontheVotingpage.

(xvii) IfademataccountholderhasforgottentheloginpasswordthenEntertheUserIDandtheimageverificationcodeandclickonForgotPassword&enterthedetailsaspromptedbythesystem.

(xviii) ShareholderscanalsocasttheirvoteusingCDSL’smobileappm-Votingavailableforandroidbasedmobiles.Them-VotingappcanbedownloadedfromGooglePlayStore,AppleandWindowsphone.Pleasefollowtheinstructionsaspromptedbythemobile app while voting on your mobile.

(xix) NoteforNon–IndividualShareholdersandCustodians

• Non-Individual shareholders (i.e.other than Individuals,HUF,NRIetc.)andCustodianare required to logon towww.evotingindia.comandregisterthemselvesasCorporates.

• AscannedcopyoftheRegistrationFormbearingthestampandsignoftheentityshouldbeemailedtohelpdesk.evoting@cdslindia.com.• AfterreceivingthelogindetailsaComplianceUsershouldbecreatedusingtheadminloginandpassword.TheComplianceUserwouldbeable

tolinktheaccount(s)forwhichtheywishtovoteon.• Thelistofaccountslinkedintheloginshouldbemailedtohelpdesk.evoting@cdslindia.comandonapprovaloftheaccountstheywouldbeable

tocasttheirvote.• A scannedcopyof theBoardResolutionandPowerofAttorney (POA)which theyhave issued in favourof theCustodian, ifany, shouldbe

uploadedinPDFformatinthesystemforthescrutinizertoverifythesame.

(xx) Incaseyouhaveanyqueriesorissuesregardinge-voting,youmayrefertheFrequentlyAskedQuestions(“FAQs”)ande-votingmanualavailableatwww.evotingindia.com,[email protected].

V. ThevotingrightsofmembersshallbeinproportiontotheirsharesofthepaidupequitysharecapitaloftheCompanyasonthecut-offdatei.e.20th December, 2019.

(vi) Anyperson,whoacquiressharesoftheCompanyandbecomesmemberoftheCompanyafterdispatchofthenoticeandholdingsharesasofthecut-offdatei.e.20th December, 2019,mayobtaintheloginIDandpasswordbysendingarequestathelpdesk.evoting@[email protected].

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VI Aperson,whosenameisrecordedintheregisterofmembersorintheregisterofbeneficialownersmaintainedbytheDepositoriesasonthecut-offdateonlyshallbeentitledtoavailthefacilityofremotee-votingaswellasvotingattheAGMthroughballotpaper.

VII ShriVirendraBhatt,PracticingCompanySecretary(MembershipNo.1157)hasbeenappointedastheScrutinizertoscrutinizethevotingattheAGMandremotee-votingprocessinafairandtransparentmanner.

IX TheChairmanshall,attheAGM,attheendofdiscussionontheresolutionsonwhichvotingistobeheld,allowvotingwiththeassistanceofScrutinizer,byuseof“BallotPaper”or“PolingPaper”forallthosememberswhoarepresentattheAGMbuthavenotcasttheirvotesbyavailingtheremotee-votingfacility.

X. TheScrutinizershallaftertheconclusionofvotingattheAGM,willfirstcountthevotescastatthemeetingandthereafterunblockthevotescastthroughremotee-votinginthepresenceofatleasttwowitnessesnotintheemploymentoftheCompanyandshallmake,notlaterthanthreedaysoftheconclusionoftheAGM,aconsolidatedScrutinizer’sReportofthetotalvotescastinfavouroragainst,ifany,totheChairmanorapersonauthorizedbyhiminwriting,whoshallcountersignthesameanddeclaretheresultofthevotingforthwith.

XI TheResultsdeclaredalongwiththereportoftheScrutinizershallbeplacedonthewebsiteoftheCompanywww.ashapura.comandonthewebsiteofCDSLwww.evotingindia.comimmediatelyafterthedeclarationofresultbytheChairmanorapersonauthorizedbyhiminwriting.TheresultsshallalsobeimmediatelyforwardedtotheBombayStockExchangeLimited&theNationalStockExchangeofIndiaLimited.

ByOrderoftheBoardofDirectors

Sd/- SACHIN POLKE COMPANY SECRETARY & VICEPRESIDENT(GROUPAFFAIRS)

Mumbai,13thNovember,2019

RegisteredOffice:JeevanUdyogBuilding,3rdFloor,278,Dr.D.N.Road,Fort,Mumbai–400001

CIN:L14108MH1982PLC026396

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EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013:

Item No.: 4

Re-designationofShriChetanShahasanExecutiveChairmanoftheCompany:

TheCompanywasundertheCorporateInsolvencyResolutionProcess(CIRP)byanorderofNationalCompanyLawTribunal(NCLT),MumbaiBench,dated15thMarch,2019.AccordinglytheauthorityoftheBoardofDirectorswasundersuspensionandtheInsolvencyResolutionProfessional(IRP)wasinchargeoftheaffairsoftheCompany.ShriRajnikantPajwani,thedesignatedWholeTimeDirector&CEO,hadduringthetimeofCIRP,resignedfromhispositionassuchw.e.f.1stJune,2019andsubmittedhisresignationtotheaforesaidIRP.Later,theHon’bleNationalCompanyLawAppellateTribunal(NCLAT),videitsorderdated30thSeptember,2019,setasidethesaidorderoftheNCLT,dated15thMarch,2019asalsoorderedtheclosureof the insolvencyproceedingsatNCLT,Mumbai.Consequently theCompanywassaved fromall the rigoursof lawandwasallowed to functionindependentlyundertheableguidanceandauthorityoftheBoardofDirectorsw.e.f.30thSeptember,2019.

Assuch,keepinginmindtheprovisionsofCompany’sAct,2013(“TheAct”)andtheListingRegulations,theBoardofDirectors,afterconsideringtherecommendationofNominationandRemunerationCommittee,thepresentbusinessscenarioasalsotakingintoaccountdynamicsoftheminingbusinessthoughtitfitinthebestinterestoftheCompanyandproposedthatShriChetanShah,beingoneofthePromotersoftheCompanyandhavingwideexposure;experienceandexpertiseintheminingindustryandbusinessdevelopment,shouldoccupyanExecutivepositionintheCompany.

Accordingly,ShriChetanShah,co-founderoftheCompanyandwhohasmorethanthreedecadesofexperienceinthefieldofmining&mineralsindustry,wasre-designatedasanExecutiveChairmanoftheCompanyforaperiodof3yearsw.e.f.24thOctober,2019,onsuchtermsandconditionsthatformspartoftheagreement,thekeyexcerptsofsamearereproducedbelowandwhicharesubjectmatterofMember’sapproval.

a. Salary : Rs.5,00,000/-(RupeesFiveLakhsonly)permonth,withauthoritytotheBoardtosanctionincrements,subjecttotheoveralllimitsandtheprovisionsoftheCompaniesAct,2013.

b. Perquisites&otherAllowances

: Perquisites&otherallowancesshallbepaidinadditiontotheSalaryasperthepolicyoftheCompanybutwithintheoveralllimit,ifany,prescribedundertheCompaniesAct,2013,asamendedfromtimetotime.Heshallalsobeentitledtoreceivethefollowing:-a) ContributiontoProvidentFund,SuperannuationFundandGratuityaspertherulesoftheCompany.b) Encashmentofleaveattheendoftenure.

TheabovedetailsmaybetreatedasanabstractoftermsundertheprovisionsoftheCompaniesAct,2013.

ShriChetanShahaged64yearsisacommercegraduateandhisskillsinmarketingarewellestablished.Hehassupervisedoperational&marketingfunctionsoftheAshapuraGroup’smineralportfoliowhichamongotherincludesbentonite,bauxite,kaolin,baritesandtheirderivatives/by-products.Underhisguidance,theGrouphasachievedexcellenceinexportsofbauxiteandothervalueaddedproducts.Hisableguidance&immenseknowledgeofminerals/it’sderivativesanditsusageinvariousindustryhashelpedAshapuraGrouptobealeaderinbentonite/bauxiteindustry.

ThespecifiedinformationrequiredunderSectionIIofPartIIoftheScheduleVoftheAct,whileseekingapproval/consentoftheshareholders,forPaymentofRemunerationtoShriChetanShah,ExecutiveChairman,islistedouthereinbelow:

I GeneralInformation:

1. NatureofIndustry MiningandMineralProcessingIndustry

2. Date or expected date of commencement of commercialproduction

19thFebruary,1982

3. In case of new companies, expected date of commencementof activities as per project approved by financial institutionsappearingintheprospectus

Notapplicable

4. Financialperformancebasedongivenindicators:(Rs.inLakhs)

2018-2019 2017-2018

PaidupCapital 1,739.72 1,739.72

Reserves&Surplus (41,887.87) (34,406.27)

RevenuefromOperations 33,717.86 23,918.84

OtherIncome 963.11 997.92

TotalExpenditure (39,528.06) (30,277.99)

ExceptionalItems (2,584.36) (1,512.20)

ProfitbeforeTaxation (7,431.45) (6,873.44)

TaxExpensesincludingDeferredTax - -

ProfitafterTaxation (7,431.45) (6,873.44)

ManagerialRemuneration 30.00 30.00

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5. Foreigninvestmentsorcollaborators,ifany TheholdingsofForeignPortfolioInvestor(Corporate),ForeignInstitutionalInvestorsandNRIsason31stMarch,2019is28.28%oftheequitysharecapital.

II InformationabouttheAppointee:

1. Backgrounddetails Thebackgrounddetails/profileofMr.ChetanShaharestatedin‘Annexure-A’tothisNotice.

2. Pastremuneration ShriChetanShahwasChairman(Non-Executive)accordinglyhewaspaidsittingfeesforattendingtheBoardMeetingsoftheCompany.

3. Recognitionorawards -

4. Jobprofileandhissuitability AnExecutiveChairmanoftheCompanyisentrustedwiththeresponsibilityof overall supervision and day-to-daymanagement of the affairs of theCompany,subjecttosuperintendence&directionoftheBoardofDirectors.

5. Remunerationproposed Asstatedintheexplanatorystatementabove.

6. Comparativeremunerationprofilewithrespecttoindustry,sizeoftheCompany,profileofthepositionandperson

The remuneration proposed to be paid to Shri Chetan Shah has beendetermined after taking into consideration the current state of affairs &financialperformanceoftheCompany.

7. PecuniaryrelationshipdirectlyorindirectlywiththeCompanyorrelationshipwiththemanagerialpersonnel,ifany

ShriChetanShahhasnopecuniaryrelationshipwiththeCompanyexceptfor theproposedremunerationpaid tohimasanExecutiveChairmanoftheCompany.

ShriChetanShahisnotrelatedtoanyoftheManagerialPersonneloftheCompany.

III OtherInformation:

1. Reasonsoflossorinadequateprofits TheCompanyalongwithregularexpenditureitemsalsoprovidedforcertainexceptionalitemsinrespectofshippingclaims,whichultimatelyresultedinnegativebottomline/netlossfortheyearunderreview.

2. Stepstakenorproposedtobetakenforimprovement&expectedincreaseinproductivityandprofitsinmeasurableterms

Company’s renewed focusonBentonite inwhich it enjoys anadmirableglobalstandingalongwithitsdevelopmentinnewerbulkindustrialmineralssuchassilicaquartzoffersboth,acertaindegreeofresilienceandgrowthinthescaleofbusiness.

TheCompanyhasalsoundertaken initiatives to automate& standardisecertain manufacturing, packaging & logistical processes designed toincreaseefficiencyandrationalisecosts.

Further, the Company is endeavoring to explore inventive concepts &theoriestoimprovethequalityofitsproducts;target&seizeopportunitiesboth at domestic & internationalmarket for better stability, expansion&paybackfortheCompany.

IV. Disclosures:

TheelementsofremunerationtobepaidtoShriChetanShahareasstatedinexplanatorystatementabove.

Further,pursuanttoprovisionsofSection203oftheAct,heshallberecognizedasKeyManagerialPersonnel(KMP)oftheCompany.

InviewofaboveandpursuanttoprovisionsofSection196oftheAct,approvaloftheshareholdersissoughtforhisappointmentasanExecutiveChairmanoftheCompany,onterms&conditionsofhisappointmentandremunerationthatformspartoftheagreementexecutedbyandbetweentheCompanyandShriChetanShah.

Thecopyoftheagreementcontainingterms&conditionsoftheappointmentofanExecutiveChairmanexecutedbetweentheCompanyandShriChetanShahisavailableforinspectionattheregisteredofficeoftheCompanyonallworkingdaysbetween11:00a.m.to1:00p.m.uptothedateofensuingAnnualGeneralMeeting.

ShriChetanShahisnotdisqualifiedfrombeingappointedasDirectorintermsofSection164oftheActandhasgivenhisconsenttoactasanExecutiveChairmanoftheCompany.

ShriChetanShahandhisrelativesareconcernedorinterestedinthesaidresolutionassetoutinItemNo.4oftheaccompanyingNotice.

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Saveandexcepttheabove,noneoftheDirectors,ManagersoranyotherKeyManagerialPersonnelandtheirrespectiverelativesis/areconcernedorinterestedinthesaidResolution,excepttotheextentoftheirshareholdingintheCompany,ifany.

TheBoardofDirectorsofyourCompanyaccordinglyrecommendtheResolutionassetoutinItemNo.4accompanyingtheNoticefortheapprovalofShareholdersoftheCompanyasanOrdinaryResolution.

ItemNo.:5&6

ShriHarishMotiwallaandShriAbhilashMunsif,IndependentDirectorsoftheCompanywereappointedforaperiodoffiveconsecutiveyearsfromtheconclusionof33rdAnnualGeneralMeetingheldon25thSeptember,2014,intermsoftheresolutionpassedattheaforesaidAnnualGeneralMeeting.ThetermofboththeDirectorsaccordinglyexpiredon24thSeptember,2019oncompletionoffiveconsecutiveyearsofappointmentwithinthemeaningofSection149oftheCompaniesAct,2013(theAct)readwiththeListingRegulations.

AsperSection149(10)oftheAct,anIndependentDirectorshallholdofficeforatermofupto5consecutiveyearsontheBoardofaCompanybutshallbeeligibleforre-appointmentforanothertermofuptofiveconsecutiveyearsonpassingaspecialresolutionbytheCompany.BasedontheirperformanceevaluationandrecommendationoftheNominationandRemunerationCommitteeandintermsoftheprovisionsofSections149,152readwithScheduleIVandanyotherapplicableprovisionsoftheActandtheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,(‘theListingRegulations’)ShriHarishMotiwallaandShriAbhilashMunsif,beingeligibleforre-appointmentasIndependentDirectorshaveofferedthemselvesforre-appointment,areproposedtobere-appointedasIndependentDirectorsforanothertermofFiveconsecutiveyearswitheffectfrom25thSeptember,2019,andwillnotbeliabletoretirebyrotation.

ThesaidDirectorshavealsosubmittedtheirdeclarationofindependence,asrequiredpursuanttosection149(7)oftheActstatingthattheymeetthecriteriaofindependenceasprovidedinSection149(6)oftheActandRegulation16(1)(b)oftheListingRegulations.CopiesofthedraftLettersofAppointmentoftheIndependentDirectorsareavailableforinspectionbyMembersattheRegisteredOfficeoftheCompanybetween11.00a.m.and1.00p.m.onallworkingdaysuptothedateofensuingAnnualGeneralMeeting.

IntermsofRegulation17(1A)oftheListingRegulationsasamendedandasdulyrecommendedbytheNominationandRemunerationCommittee,there-appointmentofShriHarishMotiwallawhoshallattaintheageof75yearsinMarch2020andthere-appointmentofShriAbhilashMunsifnowaged77yearsisproposedbytheBoardofDirectorsseekingMembers’approvalbywayofSpecialResolutionfortheircontinuationasaNon-ExecutiveIndependentDirectors,evenafterattainingageof75years.

TheBoard is of theopinion that theabove-mentioned IndependentDirectors possess requisite skills, experienceand knowledge relevant to theCompany’sbusinessanditwouldbeintheinterestoftheCompanytohavetheirassociationwiththeCompanyasIndependentDirectors.

In theopinionof theBoard, theaforesaidDirectors fulfil theconditionsspecified in theActreadwith theRulesmadethereunderandtheListingRegulationsforbeingappointedasIndependentDirectorsoftheCompanyandareindependentofthemanagement.

Brief profile of ShriHarishMotiwallaandShriAbhilashMunsifwhoareproposed tobeappointedas IndependentDirectors, as requiredunderSecretarialStandardonGeneralMeeting(‘SS-2’)andRegulation36(3)ofSEBI(ListingObligations&DisclosureRequirements)Regulations,2015,isgivenhereinbelowinAnnexureA.

ShriHarishMotiwallaandShriAbhilashMunsifarenotdisqualifiedfrombeingappointedasDirectorsintermsofSection164oftheActandareeligibleforpaymentofsittingfeesandcommission,ifany,aspayabletoNon-ExecutivedirectorsoftheCompany.

ExceptShriHarishMotiwallaandShriAbhilashMunsif,noneoftheotherDirectorsorKeyManagerialPersonnel(‘KMP’)ortheirrelatives,areinanywayconcernedorinterested,financiallyorotherwise,intheResolutionsatItemNos.5&6

TheBoardofDirectorsofyourCompanyaccordinglyrecommendstheResolutionassetoutinItemNo.5&6oftheaccompanyingNoticefortheapprovalofShareholdersoftheCompanyasSpecialResolution.

ByOrderoftheBoardofDirectors

Sd/- SACHIN POLKE COMPANY SECRETARY & VICEPRESIDENT(GROUPAFFAIRS)Mumbai,13thNovember,2019

RegisteredOffice:JeevanUdyogBuilding,3rdFloor,278,Dr.D.N.Road,Fort,Mumbai–400001

CIN:L14108MH1982PLC026396

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Annexure-A’

DETAILSOFDIRECTOR(S)SEEkINGAPPOINTMENT/RE-APPOINTMENTATTHEFORTHCOMINGANNUALGENERALMEETING(PursuanttoRegulation36(3)oftheSEBI(ListingObligationandDisclosureRequirement)Regulations,2015

NameofDirector Shri. Chetan N. Shah Shri. Harish Motiwalla Shri.AbhilashMunsif

DateofBirth 28.01.1955 24.03.1945 27.11.1942

Qualification CommerceGraduate CharteredAccountant,LL.B. B.com,ACA-London

Brief Profile & Expertise inspecificfunctionalareas

He has more than 3 decades ofexperience in theBentonite/Bauxitebusiness. Under his guidance,Ashapura Group has achievedexcellence in exports of Bauxite/Bentonite and other value addedproducts.

Shri Harish Motiwalla is a practicingCharteredAccountantandhasavastexpertise in the field of Accounts,FinanceandCorporateGovernance.

He has held several positions atCFO / CAO /Director Level, withseveral organs of United Nationsin Switzerland, Asia & Africa andwith High Level Commissions like“South Commission” comprising18countries&Summitlevelgroupof Developing Countries (G-15)comprising 15 countries. He hasalsoworkedwith‘WorldIntellectualPropertyOrganization(Geneva)astheDirectorofFinancefor8years.

Relationship with other Directors / Managers / Key Manager Parsonel

N.A N.A N.A

Directorship in other Public Companies

1. AshapuraClaytechLtd2. AshapuraIndustrialFinance

Ltd3. AshapuraAluminiumLtd4. PrashanshaCeramicsLtd

1. ExcelIndustriesLtd.2. HitechPlastLtd.3. GujaratOrganicsLtd.4. MultibaseIndiaLtd.5. BalkrishnaPaperMillsLtd6. OrientAbrasivesLtd.7. AshapuraInternationalLtd.8. AshapuraPerfoclayLtd.

1. BombayMineralsLtd.

Chairmanship / Membership of the Committees of theBoard*

Membership1. AshapuraMinechemLtd.-SRC

Chairmanship1. AshapuraMinechemLtd-AC2. ExcelIndustriesLtd-AC3. HitechCorporationLtd-AC4. MultibaseIndiaLtd-AC

Membership1. AshapuraInternationalLtd-AC2. OrientAbrasivesLtd-AC3. ExcelIndustriesLtd-SRC4. MultibaseIndiaLtd-SRC5. AshapuraPerfoclayLtd-AC

Membership1. AshapuraMinechemLtd-AC2. BombayMineralsLtd-AC

No.ofsharesheldintheCompany as on 31.03.2019

1,35,43,814EquityShares 500EquityShares -

* RepresentsonlyMembershipofIndianPublicCompaniesandChairmanshipofIndianPublicListedCompaniesoftheAuditCommittee(AC)andtheStakeholdersRelationshipCommittee(SRC).

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DIRECTORS’ REPORT

ToTheMembers,

Your Directors are pleased to present the 38th Annual Report of the Company together with the Audited Financial Statements (Standalone &Consolidated)fortheyearended31stMarch,2019.

1. FINANCIAL RESULTS AND PERFORMANCE:(Rs.InLakhs)

Ashapura Minechem Ltd. Consolidated

2018-2019 2017-2018 2018-2019 2017-2018

NetSales/IncomefromOperations 33,717.86 23,918.84 62,136.59 79,436.43

Less:TotalExpenditure 37,253.08 27,872.10 64,897.42 80,920.07

Profit /(Loss) fromOperations beforeDep.,Other IncomeandExceptionalItems (3,535.22) (3,953.26) (2,760.83) (1,483.64)

Less:Depreciation 2,274.98 2,405.89 3,251.73 3,850.57

Profit /(Loss) from Operations before Other Income andExceptionalItems (5,810.20) (6,359.15) (6,012.56) (5,334.21)

Add:OtherIncome 963.11 997.92 1,701.67 738.91

Profit/(Loss)beforeExceptionalItems,shareofnetprofitofinvestmentsaccountedforusingtheequitymethodandTax (4,847.09) (5,361.23) (4,310.89) (4,595.29)

Shareofnetprofit of JointVentures&associatesaccounted forusingtheequitymethod

- - 1,213.97 2,788.30

Profit/(Loss)beforeexceptionalitems (4,847.09) (5,361.23) (3,096.92) (1,806.99)

Less:ExceptionalItems (2,584.36) (1,512.20) 29,074.60 1,512.21

Profit/(Loss)beforetax (7,431.45) (6,873.43) (32,171.52) (3,319.20)

TaxExpenses

CurrentTax - - 730.00 1,660.50

EarlierYear’sTax - - 4.49 (78.48)

DeferredTax - - (216.47) (384.64)

Profit/(Loss)aftertax (7,431.45) (6,873.43) (32,689.54) (4,516.58)

Profitattributabletonon-controllinginterest - - 412.45 0.18

Profit/(Loss)fortheyear (7,431.45) (6,873.43) (33,101.99) (4,516.39)

During the Financial Year ended 31st March 2019, the Company on a stand-alone basis achieved revenues of Rs. 33,717.86 Lakhs fromoperationsasagainstRs.23,918.84Lakhsinthepreviousyear,thesubstantialincreaseinrevenueswasprincipallyonaccountofhigherdomesticoresales&Bentonite.TheCompanyregisteredalossbeforeexceptionalitemsofRs.4,847.09LakhswhichwasmarginallylowerthanthelossbeforebeforeexceptionalitemsofRs.5,361.23Lakhsincurredinthepreviousyear.

OnaconsolidatedbasistheCompanyachievedrevenuesofRs.62,136.58LakhsduringtheFinancialYearended31stMarch2019.Whereas,theLossbeforeexceptionalitemswasRs.3,096.93lakhsascomparedtoRs.1,806.99lakhsinthepreviousfinancialyear.OnaccountofthechangesinthestatusoftwosubsidariesandonejointventurecompanyinthethirdquarteroftheFinancialYear2018-19,theconsolidatedfinancialresultsoftheFinancialYearended31stMarch2019arenotcomparabletothoseofthepreviousfinancialyear.

2. SIGNIFICANTEVENTSDURINGTHEFINANCIALYEAR2018-2019:

TheCompany,on12thDecember,2018movedtotheNationalCompanyLawTribunal(NCLT),MumbaiBench,underappropriateandrelevantprovisionsoftheInsolvencyandBankruptcyCode,2016(IBC).ThesaidpetitionwasadmittedbytheNCLTandbyitsorderdated15thMarch,2019,CorporateInsolvencyResolutionProcess(“CIRP”)wasinitiatedfortheCompanywitheffectfrom15thMarch,2019.BythesameOrder,ShriArunChadha(Registrationno.asIBBI/IPA-001/IP-P00165/2017-18/10334)wasappointedasanInterimResolutionProfessional(‘IRP’)oftheCompanyandpursuanttotheprovisionsofSection17ofIBC,thepoweroftheBoardofDirectorsoftheCompanystoodsuspendedandsuchpowersweretobeexercisedbythesaidIRP.

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Further,theHon’bleNationalCompanyLawAppellateTribunal(NCLAT)hadvideitsorderdated8thApril,2019,stayedtheabovereferredNCLTOrdertotheexceptionthattheIRPmayfunctionandreporttotheoffice.

Infurtherance,uponfilinganapplicationforwithdrawalofinsolvencyproceedingsfromNCLT,MumbaiBench,theHon’bleNCLAT,videitsorderdated30thSeptember,2019,setasidethesaidorderoftheNCLT,MumbaiBenchdated15thMarch,2019.ThesaidorderofNCLATalsoorderedtheclosureoftheinsolvencyproceedingsatNCLT,Mumbai.Consequently,theappointmentofMr.ArunChadhaasanIRPstoodcancelledandtheCompanywasreleasedfromalltherigoursoflawandassuchwasallowedtofunctionindependentlyundertheableguidanceandauthorityoftheBoardofDirectorsw.e.f.30thSeptmeber2019.

3. DIVIDEND:

ConsideringthenetlossfortheyearandfinancialpositionoftheCompany,yourDirectorshavenotrecommendedanyDividendfortheyearended31stMarch,2019.

4. TRANSFER TO RESERVES:

Duningthefinancialyearunderreview,noamounthasbeentransferdtotheGenralReserves.

5. DEPOSITS:

YourCompanyhasnotacceptedanyamountasdepositswithinthemeaningofprovisionsofChapterV–AcceptanceofDepositsbyCompaniesoftheCompaniesAct,2013readwiththeCompanies(AcceptanceofDeposits)Rules,2014.

6. SUBSIDIARIESANDJOINTVENTURES:

I. Businessperformanceandoverviewoftheprincipalsubsidiariesandjointventurecompanies:

Subsidiaries:

a. BombayMineralsLimited(BML)

TheyearunderreviewwaschallengingfortheCompanyonaccountofmutedexportsofBauxiteore.HighGovernmentleviessuchasexportdutieshaveerodedthecompetitivenessofIndianBauxiteversusotherglobalsuppliers.Despitethis,theCompanymadeeffortstostayinlinewiththetotalrevenuecomparingwiththepreviousyear.Inviewofthetimelymeasurestakenbythemanagement,theCompanycouldlowerdownitslossfortheperiodunderreview.

b. TheotheroverseassubsidiariesandjointventuresoftheCompanyinUAE,Omanexhibitedmodestincreasesinrevenuesandprofits.

II. Companieswhichceasedtobesubsidiary,associateand/orjointventure:

Duringtheyearunderreview,ASQConnectLtd.,oneofthecreditors,withwhomtheCompanyhadenteredintoasettlementagreementofUS$45millionpayableover25yearsandhadenteredaPledgeAgreementtosecurethesaidsettlement;terminatedthesaidagreementandinvokedpledgeofsharesoftheCompany’stwoIndianSubsidiariesandajointventureCompanyon19thSeptember,2018and4thOctober,2018.Accordingly,100%sharesofaWhollyownedSubsidiary,AshapuraInternationalLimited;47.86%sharesofaSubsidiaryCompanyBombayMineralsLimited;andCompany’sentireholdingof50%inaJointventureCompany,AshapuraPerfoclayLimitedhavebeentakenoverbythesaidcreditorontriggerofthesepledgedshares.TheCompanyissuitablychallengingthesaidinvocationofpledgebythecreditor.

Consideringtheabove,asondate,AshapuraInternationalLimitedandAshapuraPerfoclayLimitedceasetobetheWhollyOwnedSubsidiaryandJointVentureCompanyandthattheCompanynowholdsonly52.14%ofBombayMineralsLimited’sshares.

III. Material Subsidiaries:

AsrequiredunderRegulations16(1)(c)and46oftheSEBI(ListingObligationsandDisclosureRequirement)Regulations,2015(ListingRegulations),theBoardofDirectorshaveapprovedthePolicyfordeterminingMaterialSubsidiaries.ThedetailsofthePolicyareavailableontheCompany’swebsiteatwww.ashapura.com/investor-corner.php

7. CONSOLIDATED FINANCIAL STATEMENTS: Pursuant to the provisions of Section 129(3) of the Companies Act, 2013, the Consolidated Financial Statements of the Company and its

subsidiaries&associates,havebeenprepared inaccordancewith the IndianAccountingStandards,which formspartof thisAnnualReport.Further,pursuant to theprovisionsof thesaidsection,astatementcontainingsalient featuresof the financial statementsof theCompany’ssubsidiariesandassociatecompanies(inFormAOC-1)isgiveninthisAnnualReport.

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In accordancewith Section 136 of theCompanies Act, 2013, the audited financial statements including consolidated financial statements,financialstatementsofsubsidiariesandallotherdocumentsrequiredtobeattachedtothisReporthavebeenuploadedonthewebsiteoftheCompanyatwww.ashapura.com/investor-corner.php

8. STATUSOFTHEPENDINGLITIGATIONS:

A. SHIPPING MATTERS:

TheContractsofAffreightment(‘COA’)wereenteredintobytheCompanywithShippingCompanies-viz.[1]PacificBasinI.H.X.(UK)Ltd.(PacificBasin) [2]EitzenBulkA/S [nowknownasUltrabulkA/S] (Ultrabulk)and[3]ArmadaSingaporePteLtd. (Armada), (collectively referred toas‘COAs’)

InpursuancetodisputewithregardstoterminationofCOAs,theabovesaidshippingcompanies,obtainedfavourableforeignarbitrationawards,whichweresubsequentlydeclaredenforceablebytheHon’bleBombayHighCourt.

In thematter of Pacific Basin andUltrabulk, ASQConnect Limited (ASQ), aCompany incorporated under the laws of EnglandandWales,purchasedtheenforceablerightstorecoverthedecreedamountbywayofassignmentdeeds.Pursuanttothesedeedofassignment,ASQenteredintoasettlementagreementwiththeCompanywhereinitwillrecoverUSD45millionoveraperiodof25yearsontermsandconditionsasprescribedinthesaidsettlementagreement.Onaccountofallegedbreachofsettlementagreement,ASQConnectLtd.hasfiledtwoexecutionapplicationsinBombayHighCourtforrecoveryoftheirdebt,yourCompanyissuitablydefendingthesame.

InthematterofArmada,thesaidshippingcompanyhasfiledanexecutionapplicationinHon’bleBombayHighCourtforrecoveryofitsclaimsgrantedby theawardsdated16thFebruary,2010.Byvirtueofadecreeexecutionorderpassedby theHon’ble.BombayHighCourton31stOctober,2018,Armada,againstitsclaims,hastakensymbolicpossessionofcertainunencumberedassetsoftheCompany.

B. FOREX DERIVATIVES:

IncaseofForexDerivativesContract,theCompany,basedonlegalopinionobtained,hastakenastandthatthesecontractsarevoidandarenotlegallyenforceable.IthasbeenfurtheradvisedbythecounselsthattheCompanycantakelegalactionsforchallengingthevalidityofthesaidcontracts.

TheCompanyhasapproachedtheBankersandhassuccessfullysettledtheclaimsamicablywithmostofthebankers.

ProceedingsfiledbyHDFCBankLimitedandJPMorganarependingatvariousstagesintheTribunalsandCourtofLawandarebeingsuitablydealtwith.HoweveranamicablesettlementwithHDFCBankhasbeensignedandisinprocessofbeingsettled.

9. MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURREDBETWEEN31st MARCH, 2019 AND 13thNOVEMBER,2019(DATEOFTHEREPORT):

Otherthanasstatedelsewhereinthisreport,therearenomaterialchangesandcommitmentsaffectingthefinancialpositionoftheCompanybetweentheendofthecurrentfinancialyearandthedateofthisreport.

10. SIGNIFICANT AND MATERIAL ORDERS BY THE REGULATIONS:

Otherthanasstatedelsewhereinthisreport,duringtheyearunderreview,theCompanyhasnotreceivedanysignificantormaterialorderpassedbyanyregulatoryauthority,courtortribunalswhichshallaffectthegoingconcernstatusoftheCompany.

11. MEETINGS OF THE BOARD:

Duringtheyearunderreview,five(5)meetingsoftheBoardofDirectorswereconvenedbeforeCommencementofcorporateInsolvencyResolutionProcess(CIRP).ThedatesofthemeetingsareprovidedintheReportonCorporateGovernancewhichformsapartofthisAnnualReport.

12. DIRECTOR’S RESPONSIBILITY STATEMENT:

InpursuanceofSection134(5)oftheCompaniesAct,2013readwiththerulesmadethereunder,includinganyenactmentorre-enactmentthereon,(theCompaniesAct,2013),theDirectorsherebyconfirmthat:

a. inthepreparationoftheannualaccounts,theapplicableIndianAccountingStandardshadbeenfollowedalongwithproperexplanationrelatingtomaterialdepartures;

15

b. thedirectorshadselectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearandoftheLossoftheCompanyforthatperiod;

c. thedirectorshadtakenproperandsufficientcareforthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsofthisActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities;

d. thedirectorshadpreparedtheannualaccountsonagoingconcernbasis;

e. thedirectorshadlaiddowninternalfinancialcontrolstobefollowedbytheCompanyandthatsuchinternalfinancialcontrolsareadequateandwereoperatingeffectively;

f. thedirectorshaddevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemswereadequateandoperatingeffectively.

13. DIRECTORS AND KEY MANAGERIAL PERSONNEL:

A. Retire by Rotation: InaccordancewiththeprovisionsofSection152oftheCompaniesAct,2013andtheArticlesofAssociationofyourCompany,ShriChetanShah,

retiresbyrotationattheensuingAnnualGeneralMeetingandbeingeligiblehasofferedhimselfforre-appointment.

ThedetailsasrequiredundertheprovisionsoftheCompaniesAct,2013andListingRegulationsareprovidedintheNoticeconveningtheensuingAnnualGeneralMeeting.

B. Re-designationofShriChetanShah,asanExecutiveChairmanoftheCompany:

TheBoardofDirectorsatitsmeetingheldon24thOctober,2019,consideringtherecommendationsofNomination&Remunerationcommitteeasalsoconsideringdynamicsoftheminingbusinessviz-a-viztheneedandtheturnofevents,proposedthatShriChetanShah(DIN-00018960)shouldoccupythedriver’sseatandleadtheCompanybyassumingthepositionasan‘ExecutiveChairman’oftheCompany.

Accordingly,ShriChetanShahwasre-designedasanExecutiveChairmanof theCompany, foraperiodof threeyearswitheffect from24thOctober,2019,ontheterms&conditionsthatformspartoftheagreement,whichissubjecttotheapprovaloftheShareholdersoftheCompany.IntermsofprovisionsoftheCompaniesAct,2013,fromthedateofappointmentofShriChetanShahasanExecutiveChairman,heisforthwithconsideredasaKeyManagerialPersonnel(KMP)oftheCompany.

Accordingly,pursuanttoprovisionsoftheCompaniesAct,2013,resolutionseekingapprovaloftheshareholdersforhisre-designationasanExecutiveChairmanoftheCompanyformspartofNoticeconvening38thAnnualGeneralMeeting.

C. Re-appointmentofNon-Executive,Independentdirectors:

Asstatedearlier,theCompanywasunderCIRPfrom15thMarch,2019to30thSeptember,2019andduringthattimethetenureofShriHarishMotiwalla (DIN-00029835)andShriAbhilashMunsif (DIN-02773542)as IndependentDirectorshad toberenewedforanother termof fiveyearsw.e.f.25thSeptember,2019.Accordingly,theBoardofDirectorsatitsmeetingheldon24thOctober,2019,onthebasisoftheperformanceevaluation; taking into account recommendation of Nomination & Remuneration committee and considering their experience, expertise &valuablecontributionmadebythemduringtheirtenure,decidedtoconsentandconfirmtohaverenewedthetermofShri.HarishMotiwallaandShri.AbhilashMunsifasNon-ExecutiveIndependentDirectors,foranothertermoffiveyearsw.e.f25thSeptember,2019,subjecttotheapprovaloftheShareholdersattheensuingAnnualGeneralMeetingoftheCompany.

Further,Regulation17(1A)oftheListingRegulations,effectivefrom1stApril,2019,alsorequirescompaniestoobtainapprovalofshareholdersbypassingaspecialresolutionforappointmentorcontinuationfromanyNon-ExecutiveDirectorwhohasattainedtheageofseventy-five(75)years.

TheCompanyhas receiveddeclarations fromthesaidDirectorsconfirming that theymeet thecriteriaof independenceasprescribedunderSection149(6)oftheCompaniesAct,2013.

Accordingly,intermsoftheprovisionsofSections149,152readwithScheduleIVandanyotherapplicableprovisions,ifany,oftheCompaniesAct, 2013 and provisions of Listing Regulations, special resolution seeking approval of the shareholders for their re-appointment asNon-Executive,IndependentDirectorsontheBoardofDirectorsoftheCompanyformspartofNoticeconvening38thAnnualGeneralMeeting.

TherelevantdetailsofShriHarishMotiwallaandShriAbhilashMunsifasrequiredpursuanttotheprovisionsoftheCompaniesAct,2013andtheListingRegulationsarefurnishedintheNoticeoftheensuingAnnualGeneralMeeting.

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D. ResignationofWholeTimeDirector&ChiefExecutiveOfficer:

ShriRajnikantPajwani(DIN:00086007)resignedfromhispositionofWhole-TimeDirector&ChiefExecutiveOfficer(CEO)oftheCompanycitinghispersonalcommitmenttowardshisfamilyandwasrelievedfromhisservicesassuchw.e.f.1stJune,2019.Since,theCompanywasthenunderCIRP,hisresignationwassubmittedtothekindattentionofShriArunChadha,IRPwhichwassubsequentlytakenonrecordandratifiedbytheBoardofDirectorsatitsmeetingheldon24thOctober,2019.

YourDirectorstakethisopportunitytoexpresstheirappreciationforthepurposefulcontributionmadebyhimduringhislongassociationof43yearsatdifferentlevelsandpositionswithAshapuraGroup.

E. Declaration by Independent Directors:

TheCompanyhasreceiveddeclarationsfromalltheIndependentDirectorsoftheCompanyconfirmingthattheymeetthecriteriaofindependenceasprescribedunder theprovisionsofSection149(6)of theCompaniesAct,2013 readwith schedules& rules issued thereunderaswellasRegulation16oftheListingRegulations(includinganystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce).

F. AppointmentofkeyManagerialPersonnel(kMP):

a. InaccordancewiththeprovisionsofSections2(51)and203oftheCompaniesAct,2013,ShriSachinPolke,CompanySecretary&VicePresident (GroupAffairs)isrecognizedastheKMPoftheCompany.

b. FromthedateofappointmentofShriChetanShahasanExecutiveChairmanw.e.f.24thOctober,2019,heisforthwithconsideredasaKMPoftheCompany.

c. Duringthetime,whentheCompanywasunderCIRP,theInterimResolutionProfessional,ason12thJune,2019,inhiscapacityandtocomplywiththeprovisionsoftheCompaniesAct,2013andSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(ListingRegulations),hadnominatedandappointedShriAjayPhalodasChiefExecutiveOfficer(CEO)oftheCompanyandShriAshishDesaiasChiefFinancialOfficer(CFO)oftheCompany,tocarryoutthefunctions/dutiesasmaybeentrusteduponthemintermsofprovisionsoftheCompaniesAct,2013,ListingRegulationsand/oranyotherapplicablelegislations,tillthetimetheCompanywouldbeunderCIRP.

Later, the Board ofDirectors at itsmeeting held on 24thOctober, 2019, considering the applicable provisions of law, decided to ratify theappointmentsofShriAjayPhalodasCEOandShriAshishDesaiasCFOoftheCompanyandthattheycontinuetobeconsideredasKMP’s.

d. Inaddition,thefollowingExecutivesofyourCompanyhavebeenrecognizedaswhole-timeKeyManagerialPersonneltoperformsuchduties/functionsasmaybeassignedtothemundertheirprescribeddesignationand/orgenerallyandspecificallyassignedtothembytheBoardofDirectorsand/oritsCommitteefromtimetotime:

1. Smt.SurekhaSathe - VicePresident–IT2. ShriAkhileshSinha - VicePresident-HR

14. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES:

TheinformationrequiredunderSection197(12)oftheCompaniesAct,2013,readwithrule5(1)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014issetoutin“Annexure-A”tothisReport.

Further,thestatementcontainingparticularsofemployeesintermsofsection197(12)oftheCompaniesAct,2013,readwithrule5(2)and5(3)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014,isprovidedinaseparatestatementandthatformspartoftheannualreport.

ConsideringtheprovisionstoSection136oftheCompaniesAct,2013,theannualreport,excludingtheaforesaidstatement,isbeingsenttotheshareholdersofthecompanyandothersentitledthereto.ThesaidstatementisavailableforinspectionofmembersattheRegisteredOfficeoftheCompanyduringworkinghoursuptothedateoftheAnnualGeneralMeetingandshallbemadeavailabletoanyshareholderonrequest.

15. PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE, GUARANTEES GIVEN AND SECURITIES PROVIDED:

Particularsofloansgiven,investmentsmade,guaranteesgivenandsecuritiesprovidedinaccordancewiththeprovisionsofSection186oftheCompaniesAct,2013,aregivenintheNotestoFinancialStatements(PleaserefertoNoteno.5&6).

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16.DISCLOSURESONPOLICIESADOPTEDBYTHECOMPANY:

A. Nomination & Remuneration Policy:

PursuanttotheprovisionsoftheCompaniesAct,2013andListingRegulations,theBoardofDirectors,basedontherecommendationsoftheNomination & Remuneration Committee, adopted a Policy for selection and appointment of Directors, KeyManagerial Personnel & SeniorManagementandfordeterminingtheirremunerations,qualifications,positiveattributesandindependenceofDirectors.Thepolicyalsoensuresthattherelationshipofremunerationtoperformanceisclearsoastomeetappropriateperformancebenchmark.

ThePolicyonNomination&RemunerationisavailableonthewebsiteoftheCompanyviz.www.ashapura.com/investor-corner.php.Thedetailsabout theNomination&RemunerationCommitteeandpaymentof remuneration to theDirectorsareprovided in theReportonCorporateGovernancewhichformspartofthisAnnualReport.

B. PerformanceEvaluationPolicyandAnnualPerformanceEvaluation:

TheBoardofDirectorsadoptedtheperformanceevaluationpolicywithanobjectiveofevaluatingtheperformanceofeachandeveryDirectoroftheBoard,CommitteesoftheBoardincludingtheperformanceoftheBoardasawhole,whichwouldcontributesignificantlytoperformanceimprovementsatallthethreelevelsi.e.theorganizational,theboardandtheindividualdirectorlevel,whichinturnwouldhelpinincreasedaccountability,betterdecisionmaking,enhancedcommunicationandmoreefficientBoardoperations.

Accordingly,pursuanttotheprovisionsofCompaniesAct,2013,ListingRegulationsandPerformanceEvaluationPolicyoftheCompany,theBoardofDirectors, inconsultationwiththeNomination&RemunerationCommitteeandIndependentDirectors,carriedout&analysedtheannualperformanceevaluationofalltheDirectors,theBoardasawholeanditsCommittees.

TheannualperformanceevaluationwascarriedoutbasedondetailedquestionnairesdraftedinaccordancewiththeguidancenoteissuedbySEBI.Theperformanceof the individualDirectorswasevaluatedafterseeking inputs fromall theDirectorsother thantheonewhoisbeingevaluated.TheevaluationwasbasedonthecriteriasuchasDirector’sknowledgeandunderstandingoftheirrole,Company’svisionandmission,Director’sCommitment,qualification,skillandexperience,assertivenessincommunication,etc.

TheperformanceoftheBoardwasevaluatedonthebasisofvariouscriteriasuchascompositionoftheBoard,informationflowtotheboard,mattersaddressedinthemeeting,strategicissues,rolesandfunctionsoftheBoard,relationshipwiththemanagement,engagementwiththeBoardandexternalstakeholdersandotherdevelopmentareas.

TheperformanceoftheCommitteeswasevaluatedafterseekingtheinputsofcommitteemembersonthecriteriasuchasunderstandingthetermsofreference,Committeecomposition,Independence,contributionstoBoarddecisionsetc.

Further,theperformanceofChairman&ExecutiveDirectorwereevaluatedoncertainadditionalparametersdependingupontheirrolesandresponsibilities suchas leadership, relationshipwithstakeholders,executionofbusinessplans, riskmanagement,developmentofplansandpoliciesinalignmentwiththevisionandmissionoftheCompany,etc.

Similarly,criteriaforevaluationofIndependentDirectorsincludeeffectivedeploymentofknowledgeandexpertise,willingnesstodevotetimeandeffortstowardshis/herrole,highethicalstandards,adherencetoapplicablecodesandpolicies,effectiveparticipation,etc.

The IndependentDirectorshadmet separatelyon11thMarch,2019anddiscussed, inter-alia, theperformanceofNon-ExecutiveChairman,Whole-TimeDirector&ChiefExecutiveOfficeroftheCompanyandtheBoardasawhole.TheNominationandRemunerationCommitteehasalsocarriedoutevaluationofeveryDirector’sperformance.

TheBoardevaluationreportonperformanceofeachindividualDirectorandtheBoardasawholewasplacedbeforetheBoardofDirectorsforappropriateanalysisandconfirmation.

Basedontheannualperformanceevaluation,theBoardexpresseditssatisfactionwiththeperformanceevaluationprocess.

C. Corporate Social Responsibility Policy:

TheCompanyhasadoptedtheCorporateSocialResponsibility(CSR)PolicyinaccordancewiththeprovisionsofSection135andScheduleVIIoftheCompaniesAct,2013.TheCSRPolicylaysdowntheguidingprinciplesforsocialwelfareprograms/projectsforthebenefitofdifferentsegmentsof thesociety,especially thedeprived,under-privilegedanddifferentlyabledpersons.ThePolicy isavailableonthewebsiteof theCompanyviz.www.ashapura.com/investor-corner.php.TheCompositionoftheCSRCommitteeisgivenintheReportonCorporateGovernance.

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During the year under review, considering the continued reflection of negativeNetWorth; taking into account the operational & financialperformance,yourCompanyhasnotspecificallymadeprovisionforCSRactivitiesfortheFinancialYear2018-2019asrequiredunderSection135oftheCompaniesAct,2013.

D. VigilMechanism-WhistleBlowerPolicy:

TheCompanyhasvigilmechanismnamedaWhistleBlowerPolicy, incompliancewith theprovisionsofSection177of theCompaniesAct,2013 and Listing Regulations, wherein the employees/directors can report the instances of unethical behavior, actual or suspected fraud,mismanagementoranyviolationoftheCodeofConductand/orlawsapplicabletotheCompanyandseekredressal.ThismechanismprovidesappropriateprotectiontoagenuineWhistle.

The said Policy is available on thewebsite of theCompany viz. www.ashapura.com/investor-corner.php.During the year under review, nocomplianthasbeenreceivedundertheWhistleBlowerPolicy(VigilMechanism).

E. RiskManagementPolicy:

TheBoardofDirectorsofyourCompanyhaslaiddownaRiskManagementPolicythatidentifieselementsofrisksinvolvedinalltheactivitiesoftheCompanyandthesamearesystematicallyaddressedthroughmitigatingactionsonacontinuingbasis.ThepolicyisreviewedbytheAuditCommitteeonregularbasisconsideringtheindustry&globalriskassociatedwiththebusinessoftheCompany.

F. PreventionofSexualHarassmentatWorkplace:

TheCompany has zero tolerance for sexual harassment ofwomen atworkplace and has adopted a Policy for prevention, prohibition andredressalofsexualharassmentatworkplace,intermsofprovisionsoftheSexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013andtherulesframedthereunderandconstitutedInternalComplaintCommittee(ICC)forsafeworkingenvironmentwhereallemployeestreateachotherwithcourtesy,dignityandrespect,irrespectiveoftheirgender,race,caste,creed,religion,placeoforigin,sexualorientation,disability,economicstatusorpositioninthehierarchy.

TheICCwhichhasbeenconstitutedasperthepolicyinthisregards,providesaforumtoemployeestolodgeComplaints,ifany,therewithforappropriateredressal.

Duringtheyear,nocomplaintwaslodgedwiththeICCnoranysuchinstancewasreportedandthemanagementishappytotakethesameonrecord.ThesaidPolicyisavailableonthewebsiteoftheCompanyviz.www.ashapura.com/investor-corner.php.

G. Related Party Transactions Policy:

Pursuant to the applicable provisions of theCompaniesAct and Listing Regulations, theCompanyhas in place the Policy on Related PartyTransactionsandthesameisuploadedonCompany’swebsiteatwww.ashapura.com/investor-corner.php.Thispolicydealswiththereviewandapprovalofrelatedpartytransactions.

AlltransactionswithrelatedpartiesareapprovedbytheAuditCommitteepriortoenteringintoanykindoftransactions.TheAuditCommitteehasafterobtainingapprovaloftheBoardofDirectors,laiddownthecriteriaforgrantingomnibusapprovalfortransactionswhicharerepetitiveinnatureandenteredintheordinarycourseofbusinessandatanarm’slengthbasiswhichalsoformspartofthePolicy.Thesaidomnibusapprovalisgrantedforonefinancialyearatatime.Moreovertomonitorduecompliance,allrelatedpartytransactionsareplacedbeforetheAuditCommittee&theBoardonaquarterlybasis,specifyingthenature,valueandterms&conditionsofthetransactionsfortheirreviewandconfirmation.

Duringtheyearunderreview,allthetransactionsenteredpursuanttothecontractsandarrangementswithrelatedpartiesunderSection188(1)of theCompaniesAct,2013,wereonarm’s lengthbasisand in theordinarycourseofbusiness.Further, therewerenomaterial relatedpartytransactionsenteredintobytheCompanyduringthefinancialyearunderreviewandhence,thedisclosureofrelatedpartytransactionsasrequiredunderSection134(3)(h)oftheCompaniesAct2013inFormAOC-2isnotapplicabletoyourCompany.

ThedetailsofrelatedpartytransactionaredisclosedinthenotestoFinancialStatements.(NoteNo.38).

17. AUDIT COMMITTEE:

TheCompanyhasinplaceanAuditCommitteeintermsoftherequirementsoftheCompaniesAct,2013readwiththerulesmadethereunderandRegulation18oftheListingRegulations.DetailedinformationpertainingtotheAuditCommitteeincludingitscomposition,meeting,etc.hasbeenprovidedintheCorporateGovernanceReport,whichformspartofthisAnnualReport.

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18.AUDITORSANDAUDITORS’REPORT

A. Statutory Auditors:

M/s.PARK&Co.,CharteredAccountantswereappointedastheStatutoryAuditorsoftheCompanytoholdofficetilltheconclusionofthe41stAnnualGeneralMeetingtobeheldintheyear2022.M/s.PARK&Co.,haveconfirmedtheireligibilityandqualificationrequiredunderSection139,141andotherapplicableprovisionsoftheCompaniesAct,2013andrulesmadethereunder(includinganystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce).

TheAuditors’Reportforthefinancialyearended31stMarch,2019onthefinancialstatements(standalone&consolidated)oftheCompanyformspartofthisAnnualReport.

Auditors’ Observations:

InreferencetotheobservationmadebyAuditorsintheirReport,theCompany,withoutprejudicetotheotheravailableoptionsandhavingmovedtheHon’bleNationalCompanyLawTribunal(NCLT),hasbeenadmittedbyitsOrderdated15thMarch,2019andthesaidorderissub-judice.TheCompanyisnowunderCorporateInsolvencyResolutionProcess(CIRP)andismanagedbyInterimResolutionProfessional(IRP).

However,uponfilinganapplicationforwithdrawalofinsolvencyproceedingsfromNCLT,MumbaiBench,theHon’bleNationalCompanyLawAppellateTribunal(NCLAT),videitsorderdated30thSeptember,2019,setasidethesaidorderoftheNCLT,MumbaiBenchdated15thMarch,2019.ThesaidorderofNCLATalsoorderedtheclosureoftheinsolvencyproceedingsatNCLT,Mumbai.Consequently,theappointmentofShriArunChadhaasanIRPstoodcancelledandtheCompanywasreleasedfromalltherigoursoflawandwasallowedtofunctionindependentlyundertheableguidanceandauthorityoftheBoardofDirectorsw.e.f.30thSeptember,2019.

B. Branch Auditors:

IntermsofprovisionsofSection139,143(8)andotherapplicableprovisions,ifany,oftheCompaniesAct,2013andrulesframedthereunder,M/s.SriSesha&Ravi,CharteredAccountants,Chennai,appointedastheBranchAuditorsforcarryingouttheauditofthebooksofaccountsoftheCompany’sBranchesatChennaiandKodurandassuchholdstheirofficetilltheconclusionofthe41stAnnualGeneralMeetingtobeheldintheyear2022.

C. Cost Auditors:

PursuanttotheprovisionsofSection148oftheCompaniesAct,2013,M/s.S.K.Rajani&Co.,CostAccountantswereappointedastheCostAuditorsoftheCompanytoconductauditoftheCompany’sCostAccountingRecordsinrespectoftheproductsoftheCompanyforthefinancialyear2019-2020attheremunerationofRs.1,91,250/-(RupeesOneLakhNinetyOneThousandTwoHundredFiftyonly)perannumplusGoods&ServiceTax.

YourCompanyhasreceivedconsentfromM/s.S.K.Rajani&Co.,CostAccountants,toactastheCostAuditorsofyourCompanyforthefinancialyear2019-2020alongwithacertificateconfirmingtheirindependence.AspertheprovisionsoftheCompaniesAct,2013,aresolutionseekingapprovaloftheShareholdersfortheremunerationpayabletotheCostAuditorsformspartoftheNoticeconveningAnnualGeneralMeeting.

TheCostAuditReportforthefinancialyear2017-2018wasfiledwiththeMinistryofCorporateAffairson7thSeptember,2018.

D. Secretarial Auditors:

PursuanttotheprovisionsofSection204oftheCompaniesAct,2013readwithRule9oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules2014,yourCompanyhadengagedtheservicesofShriVirendraG.Bhatt,CompanySecretaryinPractice,MumbaitoundertaketheSecretarialAuditoftheCompanyforthefinancialyearended31stMarch,2019.

TheSecretarialAuditReportinFormNo.:MR–3fortheFinancialYearended31stMarch,2019isannexedwiththisreportas“Annexure-B”.

Secretarial Auditor’s Observations:

YourDirectorswouldliketobringtothekindnoticeoftheMembersthatconsideringtheCompany’s‘Sick’status,itsfinancialconditionandthepertinentCIRPstatus,theCompanywasfindingitdifficulttoinductableandwillingcandidateswhocouldholdfiduciarypositionsincludingthatoftheChiefFinancialOfficeri.e.KeyManagerialPersonnelasrequiredundertheprovisionsoftheCompaniesAct,2013.

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However,tocomplywiththeprovisionsoftheCompaniesAct,2013andSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(ListingRegulations),theInterimResolutionProfessional,ShriArunChadhanominatedandappointedShriAshishDesaiasChiefFinancialOfficer(CFO)oftheCompany,witheffectfrom12thJune,2019,tocarryoutthefunctions/dutiesasmaybeentrusteduponthemintermsofprovisionsoftheCompaniesAct,2013,ListingRegulationsand/oranyotherapplicablelegislations,tillthetimetheCompanyfacedCIRP.

Later,theBoardofDirectorsatitsmeetingheldon24thOctober,2019,decidedtoratifytheappointmentofShriAshishDesaiasChiefFinancialOfficer (CFO)of theCompanyand that he shall continue tobe consideredas theKeyManagerial Personnel tobe in compliancewith theprovisionsoftheCompany’sAct,2013.

19.INTERNAL(FINANCIAL)CONTROLSYSTEM&THEIRADEQUACY:

TheCompanyhasanadequateInternalControlSystemcommensuratewiththesize,scaleandnatureofitsoperation.TheAuditCommitteereviewstheadequacyandeffectivenessofInternalControlSystem.

TheCompanyappointedM/s.AtulHMV&AssociatesLLP,CharteredAccountantsasitsInternalAuditorsforFinancialYear2018-2019whichcarriesouttheperiodicauditaspertheScopeofWorkapprovedbytheAuditCommittee.TheAuditCommitteeoftheBoardofDirectorsoftheCompanyperiodicallyreviewstheInternalAuditReportssubmittedbytheInternalAuditors. InternalAuditobservationsandcorrectiveactiontakenbytheManagementarepresentedtotheAuditCommittee.ThestatusofimplementationoftherecommendationsarereviewedbytheAuditCommitteeonaregularbasisandconcerns,ifany,arereportedtotheBoard.TheCompanyistakingdueactiontoensurethattheInternalControlisstrengthenedinalltheareasofoperations!

Besidesthis,theCompanyhasalsoimplemented‘SAP’Systems,anadvancedITbusinesssolutionplatform,toachievestandardizedoperationsthatensuresseamlessdataandinformationflow.Thiswouldfurtherensureeaseinworkingenvironment&styleandshallenabletheCompanytobeinlinewiththebestglobalpractices.

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

Theparticularsrelatingtoconservationofenergy,technologyabsorption,foreignexchangeearningsandoutgo,asrequiredtobedisclosedundertheCompaniesAct,2013,areprovidedin“Annexure-C”tothisReport.

21. EXTRACT OF ANNUAL RETURN :

TheExtractofAnnualReturnoftheCompanyinFormMGT-9asprovidedunderSection92(3)oftheCompaniesAct,2013isannexedherewithas“Annexure-D”tothisReport.

Further,inaccordancewiththeprovisionsofSection92(3)oftheCompaniesAct,2013,thecopyofAnnualReturnoftheCompanyisavailableonitswebsiteat:www.ashapura.com/investor-corner.php

22. CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

Areporton‘CorporateGovernance’alongwiththeCertificatefromM/s.PARK&Co.,CharteredAccountantsregardingitscomplianceand‘ManagementDiscussionandAnalysis’ReportasstipulatedunderRegulation34oftheListingRegulationsaresetoutseparatelywhichformspartofthisReport.

23.ACkNOWLEDGEMENT:

YourDirectorswishtoexpresstheirappreciationfortheassistanceandco-operationreceivedfromthefinancialinstitutions,banks,employees,investors,customers,members&shareholdersandallotherbusinessassociatesforthecontinuoussupportgivenbythemtotheCompanyandtheirconfidenceinitsmanagementduringtheyearunderreviewandlookforwardfortheircontributedsupportinfuture.

ForandonBehalfoftheBoardofDirectors SD/- CHETAN SHAH EXECUTIVE CHAIRMAN (DIN:00018960) Place:MumbaiDate:13thNovember,2019

E.&O.E.areregretted

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“ANNEXURE-A”

INFORMATIONUNDERSECTION197OFTHECOMPANIESACT,2013READWITHRULE5(1)OFTHECOMPANIES(APPOINTMENTANDREMUNERATIONOFMANAGERIALPERSONNEL)RULES,2014FORTHEFY2018-2019

a) theratiooftheremunerationofeachdirectortothemedianremunerationoftheemployeesofthecompanyforthefinancialyear:10.66times*

*RatiocalculatedonthebasisofremunerationofWhole-timeDirector&CEO.

b) thepercentageincreaseinremunerationofeachdirector,ChiefFinancialOfficer,ChiefExecutiveOfficer,CompanySecretaryorManager,ifany,inthefinancialyear:5.46%(CompanySecretary)

c) thepercentageincreaseinthemedianremunerationofemployeesinthefinancialyear:10.28%

d) thenumberofpermanentemployeesontherollsofcompany;566(Previousyear625)

e) averagepercentileincreasealreadymadeinthesalariesofemployeesotherthanthemanagerialpersonnelinthelastfinancialyearanditscomparisonwiththepercentile increaseinthemanagerialremunerationandjustificationthereofandpointout if thereareanyexceptionalcircumstancesforincreaseinthemanagerialremuneration;

OverallIncreasedinsalary : 0.46% IncreaseinsalaryforManagerialperson : 5.16% IncreaseinsalaryforotherthanManagerialperson : -0.03%

Note:1) TheManagerialPersonnelincludetheotherWholeTimeKeyManagerialPersonnelrecognizedbytheBoardofDirectorsoftheCompany.

2) Overallincreaseinsalaryason31.03.2019,couldbemainlyattributedtorealigingofthemanpowerrequirementsandtheattritionduringtheyearunderreview

f) affirmationthattheremunerationisaspertheremunerationpolicyofthecompany:

It is affirmed that the remuneration paid to Directors, keyManagerial Personnel (kMP) and other employees is as per theremunerationpolicyoftheCompany.

Note:ConsideringthefinancialpositionoftheCompanyandthenegativeEffectiveCapitalfortheyearended31stMarch,2018,calculatedaspertheprovisionsofScheduleVoftheCompaniesAct,2013,theWhole-timeDirectorcontinuedtoreceiveminimumremunerationduringtheFinancialYear2018-2019asprescribedunderScheduleVoftheoftheCompaniesAct,2013andforwhichapprovalwasobtainedfromthemembersoftheCompanyattheAnnualGeneralMeetingheldon28thSeptember,2018.

ForandonBehalfoftheBoardofDirectors Sd/- CHETAN SHAH EXECUTIVE CHAIRMAN (DIN:00018960)Place:MumbaiDate:13thNovember,2019

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“ANNEXURE-B”

Form No. MR-3SECRETARIAL AUDIT REPORT

FORTHEFINANCIALYEARENDEDMARCH31,2019

[PursuanttoSection204(1)oftheCompaniesAct,2013andRuleNo.9oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014]

To,TheMembers,Ashapura Minechem Limited

IhaveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbyAshapura Minechem Limited (hereinafter called “theCompany”). Secretarial Auditwas conducted in amanner that providesme a reasonable basis forevaluatingthecorporateconducts/statutorycompliancesandexpressingmyopinionthereon.

BasedonmyverificationoftheCompany’sstatutoryregisters,minutebooks,formsandreturnsfiledwiththeRegistrarofCompanies(“ROC”)andotherrelevantrecordsmaintainedbytheCompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,Iherebyreportthatinmyopinion,theCompanyduringtheauditperiodcoveringthefinancialyearendedon31stMarch,2019hasprimafaciecompliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:

Ihaveexaminedthestatutoryregisters,minutebooks,formsandreturnsfiledwiththeRegistrarofCompaniesandotherrelevantrecordsmaintainedbytheCompanyforthefinancialyearendedon31stMarch,2019accordingtotheprovisionsof:

(i) TheCompaniesAct,2013(“theAct”)andtherulesmadethereunder;

(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;(iii) TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder-NotApplicableduringtheauditperiod;

(iv) ForeignExchangeManagementAct,1999&therules&regulationsmadethereundertotheextentofForeignDirect Investment,OverseasDirectInvestmentandExternalCommercialBorrowings;

(v) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(“SEBIAct”):-

(a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

(b) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;

ThoughthefollowinglawsareprescribedintheformatofSecretarialAuditReportbytheGovernment,thesamewerenotapplicabletotheCompanyforthefinancialyearended31stMarch,2019:-

(a) TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993regardingtheCompaniesActanddealingwithclient;

(b) TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2018;

(c) TheSecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014;

(d) TheSecuritiesandExchangeBoardofIndia(IssueandlistingofDebtsecurities)Regulations,2008;

(e) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;

(f) TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,2018;

(vi) Ifurtherreportthat,IreliedontheComplianceReportofvariousLawsplacedbeforemebytheCompany.

IhavealsoexaminedcompliancewithapplicableprovisionsofthefollowingandIamoftheopinionthattheCompanyhasprimafaciecompliedwiththeapplicableprovisions:

a) SecretarialStandards1&2IssuedbytheInstituteofCompanySecretariesofIndia.

b) TheListingagreementsenteredintobytheCompanywithStockExchangesreadwithSecuritiesandExchangeBoardofIndia(ListingobligationsandDisclosureRequirements)Regulations,2015.

During the period under review, I am of opinion that the Company has prima facie compliedwith the applicable provisions of the Act, Rules,Regulations,Guidelines,Standards,etc.mentionedaboveexceptthe Company has not appointed Chief Financial Officer as required to be appointed under Section 203(1)(iii) of the Companies Act, 2013 during the period under review.

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Ifurtherreportthat:a) Pursuant to an application made by the Company, the Hon’ble National Company Law Tribunal, Mumbai bench, vide its order

No. C.P.(IB)-4508/MB/2018&MA303/2019 dated 15th March, 2019 had ordered the commencement of the Corporate Insolvency Resolution Process (‘CIRP’) in respect of the Company under the provisions of the Insolvency and Bankruptcy Code, 2016 (“the Code”). Thereafter, in accordance with Section 17 of the Code, the powers of the Board of Directors stood suspended and Mr. Arun Chadha, having registration No. IBBI/IPA-001/IP-P00165/2017-18/10334 was appointed as Interim Resolution Professional (IRP) of the Company for the management of the affairs of the Company.

b) IhavenotexaminedbooksofaccountsandIrelyonstatutoryauditor’sreportsinrelationtotheFinancialStatementsandaccuracyoffinancialfigures forSalesTax,ValueAdded tax,GoodsandServicesTax,RelatedPartyTransactions,ProvidentFund,ESIC,etc.asdisclosedunderfinancialstatements,AccountingStandardsduringmyauditperiodandIhavenotverifiedthecorrectnessandappropriatenessofthebooksofaccountsoftheCompany.

c) TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectors&IndependentDirectors. The changes in the compositionof theBoardofDirectors that tookplaceduring theperiodunder reviewwere carriedout incompliancewiththeprovisionsoftheAct.

d) Aspertheinformationprovided,primafacieadequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agenda&detailednotesonagendaweresentatleastsevendaysinadvanceandasystemexistsforseekingandobtainingfurtherinformationandclarificationsonagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

e) Asperinformationprovidedandasperminutesofthemeetings,decisionsoftheBoardwereunanimousandnodissentingviewswerefoundaspartofminutes.

f) ThereareprimafacieadequatesystemsintheCompanycommensuratewiththesize&operationsof theCompanytomonitor&ensurecompliancewithapplicablelaws,rules,regulations&guidelinessubjecttoobservationsandqualifications,ifanymadebyStatutoryAuditorsintheirreport.

g) Themanagementisresponsibleforcompliancesofallbusinesslawsalongwithmaintenanceofstatutoryregisters/recordsrequiredbytheconcernedauthoritiesandinternalcontroloftheconcerneddepartment.

h) Duringtheperiodunderreview,aspertheinformationprovidedbytheCompany,theComplianceOfficerhasnotgrantedanypreclearanceapprovaltoanyoftheDesignatedPersonsduringtheclosureoftradingwindowperiod.

Ifurtherreportthatduringtheauditperiod,therewerenoinstancesof:i. Public/Right/sweatequity,Debenturesetc;ii. IssueofequitysharesunderEmployeeStockOptionScheme;iii. Buy-backofsecurities;iv. MajordecisionstakenbytheMembersinpursuancetoSection180oftheCompaniesAct,2013whichwouldhavemajorbearingonthe

Company’saffairs;v. ForeignTechnicalCollaborations;vi. ChangeofnamepursuanttotheSchemeofDe-merger;

Ifurtherreportthat:

1. MaintenanceofSecretarialrecordistheresponsibilityoftheManagementoftheCompany.MyresponsibilityistoexpressanopinionontheseSecretarialRecordsbasedonmyaudit.

2. IhavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsoftheSecretarialrecords.TheverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedintheSecretarialrecords.Ibelievethattheprocessesandpractices,Ifollowedprovideareasonablebasisformyopinion.

3. Whereeverrequired,IhaveobtainedtheManagementrepresentationaboutthecomplianceofLaws,RulesandRegulationsandhappeningofeventsetc.

4. The compliance of the provisions of Corporate and other applicable Laws, Rules, Regulations, Standards is the responsibility of theManagement.Myexaminationwaslimitedtotheverificationofproceduresontestbasis.

5. TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityoftheCompanynortheefficacyoreffectivenesswithwhichtheManagementhasconductedtheaffairsoftheCompany.

Virendra G. BhattACSNo–1157COPNo–124

Place: MumbaiDate: 13th August, 2019

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“ANNEXURE–C”

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION ANDFOREIGN EXCHANGE EARNINGS AND OUTGO

A. CONSERVATION OF ENERGY

a) EnergyConservationmeasurestaken:

1. ProcessHeating– • Inbuiltsystemforwasteheatrecoveryi.e.useKiln-fluehotairindriersavesaround12-15%ofthetotalfuelconsumption. • ModificationandinstallationofburnersystemforlowtemperaturerequirementintheDryerbyepasstheuseofkiln. • Periodicmaintenanceofallpartsi.e.Lubricationusingoil/grease,alignment,calibration,wearandtearmanagement,replacementof

damagedpartsperiodically,airtofuelratio • UseofIntegrationofPLC-SCADASystemalongwithVFDprovisionindryer&kilnandfurtheruseofpyrometerfortemperaturecontrol

system. • MostlyuseSundryingformaterialtodry.

2. MotorsandEquipment– • Modificationofthesimultaneous2stepinRSTmachinereducesmateriallossesandsavetimeandenergyinprocessingofclaymineral. • Useofefficiencyenhancement tools inmotors i.e. InstallationofVFD inequipment’s like induceddraft fan,blunger,agitatorandair

blowers. • Useofspecificcapacityofequipmenti.e.granulator,pulverizer,ballmill,jawcrusher,filterpress,andtypesofgrindingmillsforvarious

typeofmineralswithdifferenthardnessvalue. • FabricatedVibratingsieveshakertoreducemanual interventionsandtimeforprocess, increaseseffectiveretentionsofmaterialsaves

energyandtime. • Installationofsilotofeedmaterialinbucketelevatoravoidingmanualfeedingpractices.

3. Lighting– • Energy-savinglightingincludetheuseofdaylightbyinstallationofturbo/naturalfansandtransparentsheets. • Dustventilationandtemperaturereductionreducespowerconsumptionatpilotplant. • Useofhigh-efficiencyfluorescentfixturesandbulbs,andthenewLEDtubelighting.

4. Utilities– • UseofTrollies,ForkliftandHydrauliclifterareusedtoliftandshifttherawmaterialandproduct.

5. Employees– • Encouragetheemployeestoplayavitalroleinincreasingtheenergyefficiency.Properuseofequipmentandlightcomponent,employees

aretakinginitiativetocutdownthepowerconsumptionperday.NewinstallationofCFL/LEDbulbsandtubelightssaveelectricityby60-70%.

• Powerenergyconsumptionandassessmentdoneandprocessforoverallcontractloadreductionby50%(400KVAto200KVA)savescostby20%.

• Createdawarenessandtrainingtoemployeesforpaperlessworkingandmaterializee-functionandusagesofsoftware.

b) Impactofabovemeasures:

Theeffectofabovemeasuresisimminentas,inspitetheunitpowercostgoingupfromthegrid,theoverallpowercostiswithincontrol.

B. TECHNOLOGY ABSORPTION

2018-19 2017-2018

1. Efforts made towardstechnologyabsorption

1. Speciality Mineral Products

a. Developedvalueaddedproductsi.e.CrystaCIL/MetaCIL-F/As/Feproductsforwaterpurificationapplication.

b. Development and performance evaluationof water treatment products for Heavy metalremovalfromdrinkingwater/wastewater.

c. Synthetic clay – an efficient adsorbentdevelopmentforwatertreatmentpurpose.

d. Developmentof Pharmagrademinerals suchas Attapulgite, Bentonite, Kaolin, GCC, Talc,MAS,etc.

1) SpecialityMineralProducts

a. DevelopedandscaleupofBTAproductsofdifferentgradeswithvariedrawmaterialcompositions.

b. Developed and scale up of HFST grade productusingGG-bauxite,ATHandcalcinedbauxite.

c. Development of mineral based adsorbent forvarious types of oil purification i.e. lube oil,transformeroil,ATF,engineoil,etc.

d. Developmentoflightweightinsulatingaggregatesi.e.grog,SLAequivalentgradeswithhighporosityforcastableandrefractorymaterials.

25

e. Developed Attapulgite Mineral products foredible oil-purification and its stability usingalkalihydroxide/carbonateactivation.

f. DevelopmentofWhiteTabularAlumina(WTA)withpromisingvalueofAP&BD.

g. Development of refractory products BTA- 91,BTA-95usingleangrademineralsandscaleupprocessatPilotPlantlevel.

h. DevelopmentofEarthingGradeMaterial.

i. DevelopmentofmineralbasedproductforTyreOilpurification.

j. Organo-claydevelopment-variousgradesforpaintandplasticindustry.

k. Development of desiccant grade productsusingAttapulgite,BentoniteandBauxite.

2. Industrial Functional Minerals

a. Upgradationandre-defineuseof leangradeBentonite (Phase – 1 & 2 study completed).Approximately 4.5 lakhs MT of material isupgradedbyuseofadditives/defineprocessing.

b. Optimization of processing parameters usedforBentoniteactivationRSTandfieldactivationparameters i.e. Drying Temperature & waterqualityeffect.

c. Activation study using Sigma mixing ofBentonite raw to enhance the materialproperties.

d. Layer wise study of bentonite mines and itscharacterization.

e. Scale-upimplementationofHighandMediumstrengthproppantproductionatplantlevel.

f. Grindability study of various Mills and itsimpactonpropertiesofBentonitemineral.

g. Upgradation of B-grade kaolin to A-gradekaolinthroughprocessoptimization.

h. Developedcastableproductsandevaluate itsperformancebymeasuringthemechanicalandchemicalproperties.

e. Developmentofhighstrengthceramicballsusingbauxite/aluminaforceramicbed,grindingmedia,etc.applications.

f. Developed and scale up of attapulgite basedfoundry and catalysis grade products i.e. AP-100andASC-30respectively,atplantlevel.

g. Application&explorationofwhitebentoniteinoralproducts,cosmetic,soap,detergent,handwash.

h. Developmentofmullite60and70fromsilliminiteandlowirongradebauxite.

2) IndustrialFunctionalMinerals

a. Bentonitebasednewproductsi.e.earthinggrade,organo-clay, Snowwhite cat-litter are developedforfurthercommercialization.

b. Development of pharma grademineral productsi.e. attapulgite, bentonite, kaolin, talc, calciumcarbonate,magnesiumaluminumsilicate.

c. Cat-litter with improved or enhanced propertiesi.e. color, strength and light weight in variousshapesaredeveloped.

d. Developed various applications of grademineralbasednewproductthatcanbeusedasdesiccant(pharmaandgeneralgrade),disinfectant,filteraidandcoaladditivesapplication.

e. Upgradation of lean grade raw materials i.e.bentoniteandbauxitebeneficiationandscaleupprocessforitsupgradationthroughtrialsatMines.

f. Mineralprocessingandtestingworkofresourcedmineralsi.e.sand,gypsum,magnesite,bentonite,iron-oremanganeseandchromiteores.

g. White bentonite feasibility study for variousapplications such as ceramic, glaze, paints andpaperindustry.

26


i. Feasibility of different low-grade Bauxite inmakingproppants.

j. Silica Sandminesmaterial quality evaluationanditssuitabilityforvariousapplications.

k. Oil extraction and Bio-decomposition studyusingSpentBleachingEarth.

l. Characterization and use of processed agro-waste inBleachingClayproductasactive in-gradient.

m. Evaluation of Kutch Bauxite suitability forProppantapplication.

n. COD removal fromwastewaterusingmineralandnaturalorganicmaterial.

h. StudyofgrindingeffectonBentoniteusingdifferentMills.

i. Development of phosphate free gypsum and itsuseforcementindustry.

j. Development of light weight building materialssuchasblock,bricks,boards,etc.

o.IncreaseofNetAcidityvalueofBleachingClaythroughchemicaltreatment.

p. Feasibility studyofGCCmineral in Soapanddetergent products and its performanceevaluation.

q. Evaluation of properties of resource silicasand samples and its suitability for variousapplications suchas FracSand,Construction,Glassgrade,etc.

r.IronremovalstudyfromSilicaSand.

s. Fast settling process of suspended Clay toincreasetheproductioncapacity.

3.WhitePerformanceMinerals&Products

a. ImprovementofKaolinproperties suchas flowpoint, Oil Absorption value, Gloss, Brightness,etc

b. Development of meta-Kaolin for Cable andConstructionindustry.

c. Evaluation of quality of Ground CalciumCarbonateresourcedmaterialanditssuitabilityinmanufacturingofFMBproduct.

d. Route cause analysis for the GCC complaintsreceivedbycustomer.

e. Development of Silane- Treated Kaolin andits feasibility for preparation in cost-effectivemanner.

f. DelaminationofKaolinmineralandoptimizationofprocessofmakingcommercialproduct.

g. Development of various grade Kaolin products(hydrous, semi and fully calcined) as per therequiredspecifications.

h. DevelopmentofKaolinforpaperindustry.

WhitePerformanceMinerals&Products

a. GCC-productimprovementthroughidentificationofimpuritysourcefromrawmaterial/process.

b. Upgradation of bhuj kaolin from B to A-gradematerial.

c. Developmentofpaintgrade-kaolinwithenhancedopticalpropertiesandparticlesize.

d. Meta-Kaolin product development for cable andconstruction.

e. Development of calcined kaolin with enhancedproperties suchas improvedoil absorption valueandbrightness.

f. Development through processing and testingof resourcing silica sand for various grades ofproducts/applicationssuchasfrac-sand,foundry,glass,back-filling,constructiongrade.

27

4) TechnologyAbsorptionCenter

a. PilotscaletrialofHAC-70andHFSTtrial–SOPoptimization.

b. Production and process optimization of pilottrials for production of water treatmentproductssuchasFe,As&F–removalmedia.

c. Optimization of process formaking BTA- 91,BTA-95atPilotPlantlevel.

d. PilotscaletrialsforpharmagradeproductsofTalc,Kaolin,GCCandBentonite.

e. PilotscaletrialforEarthinggradematerial.

f. Production trial of Iron removal media forwatertreatmentapplication.

4) TechnologyAbsorptionCenter

a. Scale-up of various products for refractories andwatertreatmentadsorbentmedia.

b. Process development for kaolin and bauxiteproductsof0.5to1.0MTcapacity.

c. Grind ability studies of various minerals usingvariousmills.

d. Pilot scaleprocessingandproductionofMetaCILproduct.

5) OtherActivities:

a. New Process and Application laboratoryestablishment for evaluation of product and itsfeasibilityinapplication.

b. NABL-Accreditation renewal of AdvanceCharacterizationCenterfacilitiesatIKC.

c. 5S–certificationprocesscompleted.

d. Safety training and awareness program for IKCemployees conducted through internal/externaltrainers.

e. Initiated and working on paperless function orsystemtosaveenergyandtime.

5) OtherActivities:

a. NABL-accreditationofAdvancedCharacterizationCenterfacilitiesatIKC-Laboratory.

b. 5S – certification process implemented in theworkingsystem.

2. Benefits derived likeproduct improvement,costreduction,productdevelopment, importsubstitution,etc.

a. In-house product development of Refractoryaggregatesi.e.BrownandWhitetabularAluminaat low temperature saveenergyand replaces theconventional products such as Fused Aluminaproducts.

b. The new range of niche product for Pharma andWater treatment industries, added value to thecurrent business and in-house development,obviate the need to import such product whichdevelopcountryeconomy.

c. Establishment of New process cum applicationlaboratoryaddvaluetothecurrentproducttestingintermsofapplication.

d. Scale-up of the developed R&D-products atTechnologyAbsorptionCentersavesrawmaterial,fuel,energyandtimewhichrequiretooptimizetheSOPforproductestablishmentatPlant.

a. Developedproduct of BTAandHFST replacingCAandATHwithalternatelow-costmaterialreducetheproductioncost.

b. Differentgrades/typesofproducts in cat-litterwithadditional features add up value to the existinggradeproducts.

c. Scale-up of products at Technology AbsorptionCenter (TAC)savesRawMaterial,EnergyandTimerequired during the process optimization study.ForsettinguptheprocessatPlant,productionandqualityteamusesscale-upfacilitiesforformulatingthe0.5–1.0MTtrialatTACfacilitiesitself.

d. Thevariousgradesmineralbasedproductsinareaof refractory, water treatment, coating, paints,ceramic and construction applications developedthroughin-houseresearch&developmentwillboostuprangeofproductsinthebasketandwillenhancethebusinessandprofitsinfuture.

28


e. Introduction of low capacity machinery andequipment at TAC center and process laboratorymake working job easier and economicalprocessingofmineralandproductatsmallscale.

f. Mineral based efficient product developmentprovides solutions to Oil and water treatmentpurification industries and introduce safe andeconomicalsolutions.

e. Upcomingin-housenewfacilitiestotestofmicrobialcountsinpharma-grademineralsandwatersampleswill boost up the research activities and save costandtime.

f. Procurement of additional equipment facilities atAdvancedCharacterizationCenterwilladdvalueintermsoftechnicaldataandsupporttoanalyzenewproductscategories.

Expansionofprocesslaboratoryareaandadditionalequipment’si.e.mixers,grinder,furnace,treatmentcolumn setup, larger sieves in TAC center furtherimprovethepilotscaleefficiency.

3.Incaseofimportedtechnology(importedduringthelast3yearsreckonedfromthebeginningofthefinancialyear),followinginformationmaybefurnished:

a. Detailsoftechnologyimported

b. Yearofimport

c. Whetherthetechnologybeenfullyabsorbed

d. Ifnotfullyabsorbed,areaswhereabsorptionhasnottakenplace,andthereasonstherefore.

Notechnologyhasbeenimportedinthelast3years.

Notechnologyhasbeenimportedinthelast3years.

4.ExpenditureonResearch&Development:

2018-19(Rs.InLakhs) 2017-18(Rs.InLakhs)

a)Capital 114.25 80.02

b)Recurring 431.54 385.05

c)DepreciationandAmortization 107.28 115.86

d)Total 653.07 581.11

e)TotalR&DExpenditureasaPercentageoftotalturnover 1.88% 2.33%

C. FOREIGN EXCHANGE EARNING OUTGO:

2018-19(Rs.InLakhs) 2017-18(Rs.InLakhs)

a.ForeignExchangeearnedintermsofactualinflowsduringtheyear(F.O.B.) 10,783.64 7,760.23

b.ForeignExchangeoutgoduringtheyearintermsofactualoutflows 4,028.88 1,852.54

ForandonBehalfofBoardofDirectors

Sd/- CHETAN SHAH EXECUTIVE CHAIRMAN (DIN:00018960)

Place:MumbaiDate:13thNovember,2019

29

“ANNEXURE-D”Form No. MGT-9

EXTRACT OF ANNUAL RETURNasonthefinancialyearendedon31st March, 2019

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

i) CIN L14108MH1982PLC026396

ii) RegistrationDate 19/02/1982

iii) NameoftheCompany AshapuraMinechemLimited

iv) Category/Sub-CategoryoftheCompany CompanyLimitedbyShares/Indian-NonGovernmentCompany

v) AddressoftheRegisteredofficeandcontactdetails JeevanUdyogBuilding,3rdFloor,278,D.N.Road,Fort,Mumbai-400001Tel.No.:022-66651700EmailId:[email protected]

vi) WhetherlistedcompanyYes/No Yes

vii) Name, Address andContact details of Registrar and TransferAgent,ifany:-

M/s.LinkIntimeIndiaPvt.Ltd. C-101,247Park,L.B.SMarg,Vikhroli(West),Mumbai–400083Tel.:+91-22-49186000;Fax:+91-22-49186060E-mail:[email protected]

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:

Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated:

Sl. No.

NameandDescriptionofmainproducts/services

NICCodeoftheProduct/Services %tototalturnoveroftheCompany

1. Bentonite 08108 35.43%

2. Bauxite 07292 46.68%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:

Sl. No.

NameandAddressoftheCompany CIN/GLN Holding/Subsidiary/ Associate

%ofsharesheld

Applicable Section

1. BombayMineralsLtd.Jamnagar-DwarkaHighway,Opp.AshokPetrolPump,Khambhalia,Gujarat–361001

U14100GJ1953PLC000699 Wholly-ownedSubsidiary

52.14% 2(87)

2. AshapuraAluminiumLtd.PlotNo.206,Madhapar,BhujKutch,Gujarat–370020

U27203GJ2007PLC051421 Wholly-ownedSubsidiary

100% 2(87)

3. AshapuraConsultancyServicesPvt.Ltd.JeevanUdyogBuilding,3rdFloor,278,D.N.Road,Fort,Mumbai-01

U74140MH1993PTC075194 Wholly-ownedSubsidiary

100% 2(87)

4. ShardaConsultancyPvt.Ltd.JeevanUdyogBuilding,3rdFloor,278,D.N.Road,Fort,Mumbai-01


100% 2(87)

5. PenisulaPropertyDevelopersPvt.Ltd.JeevanUdyogBuilding,2ndFloor,278,D.N.Road,Fort,Mumbai-01


100% 2(87)

6. AshapuraResourcesPvt.Ltd.JeevanUdyogBuilding,2ndFloor,278,D.N.Road,Fort,Mumbai-01


100% 2(87)

7. AshapuraClaytechLtd.JeevanUdyogBuilding,3rdFloor,278,D.N.Road,Fort,Mumbai-01

U26939MH1995PLC090484 Subsidiary 99.44% 2(87)

8. PrashanshaCeramicsLtd.Jamnagar-DwarkaHighway,Opp.AshokPetrolPump,Khambhalia,Gujarat–361001

U51909GJ1995PLC028159 Subsidiary 48.28%(51.72%BML)

2(87)

30


FOREIGN SUBSIDIARIES:

9. AshapuraMinechem(UAE)FZE–(AMUF)LeasedOfficeBuilding-2,OfficeNo.2G-11,P.O.Box-42236,HamriyahFreeZone,Sharjah,U.A.E.

ForeignCompany Wholly-ownedSubsidiary

100% 2(87)

10. AshapuraHoldings(UAE)FZE-(AHUF)LeasedOfficeBuilding-2,OfficeNo.2G-18,P.O.Box-49270,HamriyahFreeZone,Sharjah,U.A.E.

ForeignCompany StepDownSubsidiary

100%heldbyAMUF

2(87)

11. PTAshapuraResourcesIndonesiaPlazaBII,TowerII,Lantai25,JI.M.H.ThamrinNo.31,Jakarta-Pusat10350(TheCompanyisundervoluntaryWindingupprocedureasperthelocalLawoftheCompany)


100%heldbyAMUF

2(87)

12. AshapuraMaritimeFZEE-LeaseOfficeBuilding,OfficeNo.56G-24,P.O.Box2386,HamriyahFreeZone,Sharjah,U.A.E.


100%heldbyAHUF

2(87)

13. PTAshapuraBentoclayFareastJ1.AgungNiaga2BlockG2/24,RT.014/RW.013,Kel.SunterAgung,Kec.TanjungPriok,JakartaUtara–14350


100%heldbyAHUF

2(87)

JOINT VENTURE COMPANIES/ASSOCIATE COMPANIES:

14. AshapuraArcadiaLogisticPvt.Ltd.5thFloor,CityPoint,Opp.TownHall,Jamnagar,Gujarat-361001

U63032GJ2006PTC049157 Associate 50% 2(6)

15. AshapuraMidgulfNV2030Antwerp,12MulhouselaanNoord,Haven158

ForeignCompany JointVenture 50%(48.98%heldbyAMUF&1.02%byAML)

2(6)

16. AshapuraFareastSDNBHD(MALAYSIA)24A(RoomNo.1)Jalan21/19,SeaPark,46300PetalingJaya,SelangorDarulEhsan,Malaysia

ForeignCompany Associate 25%heldbyAMUF

2(6)

17. SoharAshapuraChemicalsLLCP.OBox1160,Ruwi,PostalCode112,Muscat,SultanateofOman

ForeignCompany JointVenture 40%heldbyAHUF

2(6)

18. OrientAbrasivesLimitedGIDCIndustrialArea,Porbandar,Gujarat-360577

L24299GJ1971PLC093248 Associate 36.01%HeldbyBML

2(6)

19. AshapuraDhofarResourcesLLCAlAwadiBuilding,FloorNoM–2,P.O.Box111,PostalCode214,Salalah,SultanateofOman

ForeignCompany JointVenture 70%heldbyAHUF

2(6)

20. EMOAshapuraEnergyandMiningLimitedBankoftheNorthBuilding,Plot785,Herbert,MacaulaWay,CentralBusinessDistrict,Abuja,Nigeria

ForeignCompany Associate 48%heldbyAMUF

2(6)

21. AshapuraGuineaResourcesSARL,GuineaKoulewondy,6thAvenueStreet,ImmeubleALYnexttoDouniavoyage;BP:4082,CommuneofKaloum,Conakry,RepublicofGuinea

ForeignCompany Associate 14.29%heldbyAHUF

2(6)

31

IV. SHARE HOLDING PATTERN:

(EquitysharecapitalbreakupaspercentageofTotalEquity)

(i)Category-wiseShareHolding

Sr. No. CategoryofShareholders

Shareholdingatthebeginningoftheyear[Ason1stApril,2018]

Shareholdingattheendoftheyear [Ason31stMarch,2019] %Change

during the year Demat Physical Total %ofTotal

Shares Demat Physical Total %ofTotalShares

(A) Promoter and Promoter Group

[1] Indian

(a) Individuals/HinduUndividedFamily

26513454 0 26513454 30.48 26513454 0 26513454 30.48 0.00

(b) CentralGovernment/StateGovernment(s)

0 0 0 0.00 0 0 0 0.00 0.00

(c) FinancialInstitutions/Banks 0 0 0 0.00 0 0 0 0.00 0.00

(d) AnyOther(Specify)

BodiesCorporate 8093040 0 8093040 9.30 8093040 0 8093040 9.30 0.00

SubTotal(A)(1) 34606494 0 34606494 39.78 34606494 0 34606494 39.78 0.00

[2] Foreign

(a) Individuals(Non-ResidentIndividuals/ForeignIndividuals)

0 0 0 0.00 0 0 0 0.00 0.00

(b) Government 0 0 0 0.00 0 0 0 0.00 0.00

(c) Institutions 0 0 0 0.00 0 0 0 0.00 0.00

(d) ForeignPortfolioInvestor 0 0 0 0.00 0 0 0 0.00 0.00

(e) AnyOther(Specify) 0 0 0 0.00 0 0 0 0.00 0.00

SubTotal(A)(2) 0 0 0 0.00 0 0 0 0.00 0.00

TotalShareholdingofPromoter and Promoter Group(A)=(A)(1)+(A)(2)

34606494 0 34606494 39.78 34606494 0 34606494 39.78 0.00

(B) Public Shareholding

[1] Institutions

(a) MutualFunds/UTI 118000 12000 130000 0.15 118000 12000 130000 0.15 0.00

(b) VentureCapitalFunds 0 0 0 0.00 0 0 0 0.00 0.00

(c) AlternateInvestmentFunds 430000 0 430000 0.49 0 0 0 0.00 -0.49

(d) ForeignVentureCapitalInvestors

0 0 0 0.00 0 0 0 0.00 0.00

(e) ForeignPortfolioInvestor 20805258 0 20805258 23.92 20862166 0 20862166 23.98 0.07

(f) FinancialInstitutions/Banks 105952 0 105952 0.12 8200 0 8200 0.01 -0.11

(g) InsuranceCompanies 0 0 0 0.00 0 0 0 0.00 0.00

(h) ProvidentFunds/PensionFunds

0 0 0 0.00 0 0 0 0.00 0.00

(i) AnyOther(Specify) 0 0 0 0.00 0 0 0 0.00 0.00

SubTotal(B)(1) 21459210 12000 21471210 24.68 20988366 12000 21000366 24.14 -0.54

[2] Central Government/ StateGovernment(s)/PresidentofIndia

0 0 0 0.00 0 0 0 0.00 0.00

SubTotal(B)(2) 0 0 0 0.00 0 0 0 0.00 0.00

32


[3] Non-Institutions

(a) Individuals

(i) IndividualshareholdersholdingnominalsharecapitaluptoRs.1lakh.

15360416 310243 15670659 18.02 16886519 283243 17169762 19.74 1.72

(ii) IndividualshareholdersholdingnominalsharecapitalinexcessofRs.1lakh

6396802 0 6396802 7.35 5394387 0 5394387 6.20 -1.15

(b) NBFCsregisteredwithRBI 0 0 0 0.00 14400 0 14400 0.02 0.02

(c) OverseasDepositories(holdingDRs)(balancingfigure)

0 0 0 0.00 0 0 0 0.00 0.00

(d) AnyOther(Specify)

Trusts 72000 0 72000 0.08 0 0 0 0.00 -0.08

HinduUndividedFamily 813663 0 813663 0.94 889909 0 889909 1.02 0.09

NonResidentIndians(NonRepat)

1325203 0 1325203 1.52 1546478 0 1546478 1.78 0.25

OtherDirectors 22300 0 22300 0.03 28550 0 28550 0.03 0.01

NonResidentIndians(Repat) 2361033 2000 2363033 2.72 2190232 2000 2192232 2.52 -0.20

ClearingMember 952459 0 952459 1.09 252534 0 252534 0.29 -0.80

MarketMaker 14435 0 14435 0.02 12279 0 12279 0.01 0.00

BodiesCorporate 3200840 77000 3277840 3.77 3801707 77000 3878707 4.46 0.69

SubTotal(B)(3) 30519151 389243 30908394 35.53 31016995 362243 31379238 36.07 0.54

Total Public Shareholding(B)=(B)(1)+(B)(2)+(B)(3)

51978361 401243 52379604 60.22 52005361 374243 52379604 60.22 0.00

Total(A)+(B) 86584855 401243 86986098 100.00 86611855 374243 86986098 100.00 0.00

(C) Non Promoter - Non Public

[1] Custodian/DRHolder 0 0 0 0.00 0 0 0 0.00 0.00

[2] EmployeeBenefitTrust(underSEBI(SharebasedEmployeeBenefit)Regulations,2014)

0 0 0 0.00 0 0 0 0.00 0.00

Total Non-Promoter- Non PublicShareholding(C)=(C)(1)+(C)(2)

0 0 0 0.00 0 0 0 0.00 0.00

Total(A)+(B)+(C) 86584855 401243 86986098 100.00 86611855 374243 86986098 100.00 0.00

33

(ii)ShareholdingofPromoters

Sr. No.

Shareholder’s Name Shareholdingatthebeginningoftheyear[Ason1stApril,2018]

Shareholdingattheendoftheyear[Ason31stMarch,2019]

%changein share holding

during the yearNo.of

Shares%oftotal

Shares ofthe

company

%ofSharesPledged/

encumbered to total shares

No.ofShares

%oftotalShares ofthe

company

%ofSharesPledged /

encumbered to total shares

1 ChetanNavnitlalShah 13543814 15.57 0.00 13543814 15.57 0.00 0.00

2 DinaChetanShah 9202360 10.58 0.00 9202360 10.58 0.00 0.00

3 EstateofLateNavnitlalRatanjiShah 129460 0.15 0.00 129460 0.15 0.00 0.00

4 FizzahNavnitlalShah 0 0.00 0.00 0 0.00 0.00 0.00

5 MananChetanShah 2239220 2.57 0.00 2239220 2.57 0.00 0.00

6 ChaitaliChetanShah 1255620 1.44 0.00 1255620 1.44 0.00 0.00

7 HimaniChetanShah 142980 0.16 0.00 142980 0.16 0.00 0.00

8 AshapuraIndustrialFinanceLtd. 8088000 9.30 0.00 8088000 9.30 0.00 0.00

9 HemprabhaTradingCo.Pvt.Ltd. 2520 0.00 0.00 2520 0.00 0.00 0.00

10 GurbargaTradingCo.Pvt.Ltd. 2520 0.00 0.00 2520 0.00 0.00 0.00

Total 34606494 39.78 0.00 34606494 39.78 0.00 0.00

(iii)ChangeinPromoters’Shareholding(pleasespecify,ifthereisnochange)

Sr No.

Name&TypeofTransaction Shareholding at the beginningoftheyear[Ason1stApril,2018]

Transactions during the year Cumulative Shareholding at theendoftheyear

[Ason31stMarch,2019]

No.ofsharesheld

%oftotalsharesofthe

company

Dateoftransaction

No.ofshares Noofsharesheld

%oftotalsharesofthe

company

1 ChetanNavnitlalShah 13543814 15.57 - 0 13543814 15.57

2 DinaChetanShah 9202360 10.58 - 0 9202360 10.58

3 EstateofLateNavnitlalRatanjiShah 129460 0.15 - 0 129460 0.15

4 FizzahNavnitlalShah 0 0.00 - 0 0 0.00

5 MananChetanShah 2239220 2.57 - 0 2239220 2.57

6 ChaitaliChetanShah 1255620 1.44 - 0 1255620 1.44

7 HimaniChetanShah 142980 0.16 - 0 142980 0.16

8 AshapuraIndustrialFinanceLtd. 8088000 9.30 - 0 8088000 9.30

9 HemprabhaTradingCo.Pvt.Ltd. 2520 0.00 - 0 2520 0.00

10 GurbargaTradingCo.Pvt.Ltd. 2520 0.00 - 0 2520 0.00

34


(iv)ShareholdingPatternoftoptenShareholders

(Other than Directors, Promoters and Holders of GDRs and ADRs):

Sr No.


Transactions during the year

Cumulative Shareholding attheendoftheyear[Ason31stMarch,2019]

No.ofshares held

%oftotalshares ofthe

company

Dateoftransaction

No.ofshares

Noofsharesheld

%oftotalsharesofthe

company

1 ALBULAINVESTMENTFUNDLTD 7857345 9.03 7857345 9.03

ATTHEENDOFTHEYEAR 7857345 9.03

2 LTSINVESTMENTFUNDLTD 4100000 4.71 4100000 4.71


3 ERISKAINVESTMENTFUNDLTD 3757345 4.32 3757345 4.32


4 LGOFGLOBALOPPORTUNITIESLIMITED 2998517 3.45 2998517 3.45


5 NAYANAMAHENDRARAMANI 1502750 1.73 1502750 1.73

MarketBuy 06Apr2018 15000 1517750 1.74

MarketSell 03Aug2018 -15874 1501876 1.73

MarketSell 14Sep2018 -31255 1470621 1.69

MarketSell 21Sep2018 -51104 1419517 1.63

Transfer 26Oct2018 30000 1449517 1.67

MarketSell 09Nov2018 -25000 1424517 1.64

MarketBuy 30Nov2018 1000 1425517 1.64

MarketBuy 22Mar2019 10000 1435517 1.65


6 INDIAMAXINVESTMENTFUNDLIMITED 1257812 1.45 1257812 1.45

MarketBuy 15Mar2019 4593 1262405 1.45


7 MAHENDRAJETHALALRAMANI 932670 1.07 932670 1.07

MarketSell 07Dec2018 -5000 927670 1.07

MarketBuy 01Mar2019 20000 947670 1.09

MarketBuy 08Mar2019 5000 952670 1.10


8 EDELWEISSCUSTODIALSERVICESLIMITED 224141 0.26 224141 0.26

MarketBuy 06Apr2018 17454 241595 0.28

MarketBuy 13Apr2018 3855 245450 0.28

MarketBuy 20Apr2018 1021 246471 0.28

MarketBuy 27Apr2018 22985 269456 0.31

MarketBuy 04May2018 232980 502436 0.58

MarketBuy 11May2018 1166 503602 0.58

MarketBuy 18May2018 3441 507043 0.58

35

MarketSell 25May2018 -45132 461911 0.53

MarketSell 01Jun2018 -296436 165475 0.19

MarketBuy 08Jun2018 2070 167545 0.19

MarketSell 15Jun2018 -943 166602 0.19

MarketSell 22Jun2018 -3312 163290 0.19

MarketSell 30Jun2018 -35763 127527 0.15

MarketBuy 06Jul2018 1655 129182 0.15

MarketBuy 13Jul2018 1075 130257 0.15

MarketBuy 20Jul2018 1327 131584 0.15

MarketSell 27Jul2018 -1826 129758 0.15

MarketSell 03Aug2018 -22690 107068 0.12

MarketBuy 10Aug2018 985 108053 0.12

MarketSell 17Aug2018 -408 107645 0.12

MarketSell 24Aug2018 -20059 87586 0.10

MarketBuy 31Aug2018 7873 95459 0.11

MarketSell 07Sep2018 -4948 90511 0.10

MarketBuy 14Sep2018 100 90611 0.10

MarketBuy 21Sep2018 6175 96786 0.11

MarketBuy 29Sep2018 8403 105189 0.12

MarketBuy 05Oct2018 14306 119495 0.14

MarketBuy 12Oct2018 5120 124615 0.14

MarketBuy 19Oct2018 2302 126917 0.15

MarketSell 26Oct2018 -555 126362 0.15

MarketSell 02Nov2018 -2596 123766 0.14

MarketBuy 09Nov2018 11500 135266 0.16

MarketBuy 16Nov2018 687 135953 0.16

MarketSell 23Nov2018 -39364 96589 0.11

MarketBuy 30Nov2018 7685 104274 0.12

MarketBuy 07Dec2018 1982 106256 0.12

MarketBuy 14Dec2018 4290 110546 0.13

MarketSell 21Dec2018 -1000 109546 0.13

MarketSell 28Dec2018 -5420 104126 0.12

MarketSell 31Dec2018 -23031 81095 0.09

MarketBuy 04Jan2019 21539 102634 0.12

MarketSell 11Jan2019 -6615 96019 0.11

MarketSell 18Jan2019 -1530 94489 0.11

MarketSell 25Jan2019 -4470 90019 0.10

MarketSell 01Feb2019 -251 89768 0.10

MarketSell 08Feb2019 -8643 81125 0.09

MarketSell 15Feb2019 -1808 79317 0.09

MarketBuy 22Feb2019 1298 80615 0.09

MarketSell 01Mar2019 -229 80386 0.09

36


MarketSell 08Mar2019 -21718 58668 0.07

MarketBuy 15Mar2019 675474 734142 0.84

MarketSell 22Mar2019 -1418 732724 0.84

MarketBuy 29Mar2019 1323 734047 0.84


9 GANESHSRINIVASAN 722500 0.83 722500 0.83


10 NEWLEAINAINVESTMENTSLIMITED 647554 0.74 647554 0.74


11 SUREKHAANILSHAH 570500 0.66 570500 0.66

MarketBuy 19Oct2018 5000 575500 0.66

MarketBuy 26Oct2018 5000 580500 0.67


(v)ShareholdingofDirectorsandkeyManagerialPersonnel:

Sr No.


Transactions during the year

Cumulative Shareholding at theendoftheyear[Ason

31stMarch,2019]

No.ofshares held

%oftotalsharesof

the company

Dateoftransaction

No.ofshares

Noofshares held

%oftotalsharesofthe

company

Directors

1 RajnikantB.Pajwani* 21800 0.03 02Aug2018 -2000 19800 0.02

2 AshokManilalKadakia** 8250 0.01 0 0 8250 0.01

3 HarishNarendraMotiwalla 500 0.00 0 0 500 0.00

4 AbhilashMunsif 0 0.00 0 0 0 0.00

5 PundarikSanyal 0 0.00 0 0 0 0.00

6 NavitaGaiha 0 0.00 0 0 0 0.00

Key Managerial Personnel

1 SachinPolke 1144 0.00 0 0 0 0.00

2 AkhileshKumarSinha 0 0.00 0 0 0 0.00

3 SurekhaSathe 10500 0.01 0 0 10500 0.00

4 AshishDesai 0 0.00 0 0 0 0.00

5 AjayPhalod 0 0.00 0 0 0 0.00

*ShriRajnikantPajwanihasresignedfromhispositionofWhole-TimeDirector&ChiefExecutiveOfficer(CEO)oftheCompanyw.e.f.1stJune,2019

**Mr.AshokKadakiahasbeenco-optedasanAdditionalDirector(IndependentDirectorw.e.f.13/08/2018)

37

V. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

A. RemunerationtoManagingDirector,Whole-timeDirectorand/orManager:

Duringtheyearunderreview,ShriRajnikantPajwani,WholeTimeDirector&ChiefExecutiveOfficerwaspaidremunerationofRupeesThirtyLacsonly.*(TDSasapplicablewasdeducted).

*ConsideringthefinancialpositionoftheCompanycombinedwithnegativeEffectiveCapitalfortheyearended31stMarch,2018,calculatedaspertheprovisionsofScheduleVoftheCompaniesAct,2013,theWhole-timeDirectorcontinuedtoreceiveminimumremunerationduringtheFinancialYear2018-2019asprescribedunderScheduleVoftheCompaniesAct,2013andforwhichapprovalwasobtainedfromthemembersoftheCompany,attheAnnualGeneralMeetingheldon28stSeptember,2018.

B. Remuneration to other directors:

Duringtheyearunderreview, theNon-Executive IndependentDirectorswerepaidSittingFeesatRs.50,000/-eachforattendingtheeverymeetingoftheBoardofDirectorsandAuditCommitteeatRs.25,000/-eachforattendingtheeverymeetingoftheNominationandRemunerationCommittee.ThedetailsofSittingFeespaidtoNon-Executive,IndependentDirectorswereprovidedintheCorporateGovernanceReportwhichformspartofthisAnnualReport.

C. Remuneration to Key Managerial Personnel Other Than MD/Manager/WTD:

Duringtheyearunderreview,RemunerationpaidtotheCompanySecretaryandotherWholeTimeKeyManagerialPersonnel(asrecognizedbytheBoardofDirectors)aggregatestoapproximatelyRupeesTwoCroresFiftyThreeLakhsThirtyEightThousendSevenHundredSixtySixonly.

VI. PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES:

Saveasreportedhereinabove,nopenaltywaslevied,noranypunishmentwaspronouncedormetedoutneitheranyoffenceswerecompoundedagainsttheCompanyand/oranyofitsDirectorsand/oranyofitsofficersindefault,duringtheyearunderreview.

ForandBehalfoftheBoardofDirectors Sd/- CHETAN SHAH EXECUTIVE CHAIRMAN (DIN:00018960)


38


REPORT ON CORPORATE GOVERNANCE

1. COMPANY’S PHILOSOPHY ON CODE OF CORPORATE GOVERNANCE:

Corporate Governance continues to be a strong focus area for the Company. At Ashapura, we believe that good Corporate GovernancestrengthenstheinvestorstrustandensureslongtermrelationshipwithitsotherstakeholderswhichhelpstheCompanytoachieveitsobjectives.

YourCompanybelievesthatadherencetoCorporateGovernancestemsnotonlyfromtheletteroflawbutalsofromitsinherentbeliefindoingbusinesstherightway.TheCorporateGovernanceframeworkatAshapuraisfollowedseriouslyandinspirit.Itensurestimelydisclosuresofallmandatory&reportableevents,basedonperformance/activitiesundertakenbytheManagementundertheguidanceoftheBoardofDirectorsoftheCompanyandiscommittedtomeettheaspirationsofalltheStakeholdersbeitShareholders,Employees,Suppliers,Customers,Investors,Banks,GovernmentandCommunityatlarge.

TheCompany is in compliancewith the requirements stipulatedunder theprovisionsof theSecuritiesandExchangeBoardof India (ListingObligationsandDisclosureRequirement)Regulations,2015(“ListingRegulations”).TheCompanypresentstheReportonCorporateGovernanceforthefinancialyearended31stMarch,2019incompliancewithRegulation34(3)readwithScheduleVoftheListingRegulations.

2. BOARD OF DIRECTORS: TheCompany,on12thDecember,2018movedtotheNationalCompanyLawTribunal(NCLT),MumbaiBench,underappropriateandrelevant

provisionsoftheInsolvencyandBankruptcyCode,2016(IBC).ThesaidpetitionwasadmittedbytheNCLTandbyitsorderdated15thMarch,2019,CorporateInsolvencyResolutionProcess(“CIRP”)wasinitiatedfortheCompanywitheffectfrom15thMarch,2019.BythesameOrder,Mr.ArunChadha(Registrationno.asIBBI/IPA-001/IP-P00165/2017-18/10334)wasappointedasanInterimResolutionProfessional(‘IRP’)oftheCompanyandpursuanttotheprovisionsofSection17ofIBC,thepoweroftheBoardofDirectorsoftheCompanystoodsuspendedandsuchpowersweretobeexercisedbythesaidIRP.

Further,theHon’bleNationalCompanyLawAppellateTribunal(NCLAT)hadvideitsorderdated8thApril,2019,stayedtheaforesaidNCLTOrdertotheexceptionthattheInterimResolutionProfessional(IRP)mayfunctionandreporttotheoffice.

Inthisconnection,uponfilinganapplicationforwithdrawalofinsolvencyproceedingsfromNCLT,MumbaiBench,theHon’bleNationalCompanyLawAppellateTribunal(NCLAT)has,videitsorderdated30thSeptember,2019,setasidethesaidorderoftheNCLT,MumbaiBenchdated15thMarch,2019.ThesaidorderofNCLATalsoorderedtheclosureoftheinsolvencyproceedingsatNCLT,Mumbai.Consequently,theappointmentofMr.ArunChadhaasanIRPstoodcancelledandtheCompanywasreleasedfromalltherigoursoflawandWasallowedtofunctionindependentlyundertheableguidanceandauthorityoftheBoardofDirectors.

A. CompositionandcategoryofBoardofDirectors:

ThecompositionoftheBoardofDirectorsisinconformitywiththeprovisionsofSection149oftheCompaniesAct,2013andRegulation17oftheListingRegulations.TheBoardason31stMarch,2019consistsofSeven(7)DirectorswhichapartfromChairman,aNon-ExecutivePromoter-Director,comprisedofOne(1)ExecutiveDirectorandFive(5)Non-ExecutiveIndependentDirectors(includingOneWomanDirector).

TheCompanyhasobtainedtherequisitedisclosuresfromtheDirectorsinrespectoftheirDirectorshipsandMembershipsinCommitteesofotherCompanies.

KeyInformationpertainingtoDirectorsason31stMarch,2019isgivenbelow:

Name DIN CategoryofDirectors

Attendance atNo.of

Directorships in other

companies1

No.ofCommitteePositions held in

Indian Public Limited Companies2

Board Meetings

Last AGM Heldon28th September, 2018 Member Chairman

ShriChetanShah3 00018960 Promoter,Chairman

(Non-Executive)

4 Yes 4 1 1

ShriRajnikantPajwani4

00086007 WholeTimeDirector&ChiefExecutiveOfficer(CEO)

5 Yes 2 2 -

ShriAshokKadakia5 00317237 Non-Executive,Independent

3 Yes 4 2 3

ShriHarishMotiwalla

00029835 Non-Executive,Independent

5 Yes 8 4 5

ShriAbhilashMunsif 02773542 Non-Executive,Independent

5 Yes 1 2 -

SmtNavitaGaiha 07248115 Non-Executive,Independent

3 No - - -

ShriPundarikSanyal 01773295 Non-Executive,Independent

5 Yes 2 3 1

39

1 ExcludesdirectorshipsinPrivateLimitedCompanies,ForeignCompanies,CompaniesincorporatedunderSection8oftheCompaniesAct,2013andAlternateDirectorships.

2 RepresentsonlyMembershipofIndianPublicCompaniesandChairmanshipofIndianPublicListedCompaniesoftheAuditCommitteeandtheStakeholders’RelationshipCommitteeincludingAshapuraMinechemLimited.

3 ShriChetanShahhasbeenre-designatedasanExecutiveChairman,asagainsthiscurrentdesignationasaChairman(Non-Executive),foraperiodof3yearsw.e.f.24thOctober,2019,subjecttotheapprovalofShareholdersattheensuingAnnualGeneralMeetingoftheCompany.

4 ShriRajnikantPajwaniceasedfromthedirectorshipoftheCompanyw.e.f.1stJune,2019.

5 ShriAshokKadakiawasco-optedasaNon-Executive,IndependentDirectoroftheCompanywitheffectfrom13thAugust,2018.

NamesofthelistedentitieswherethesaidpersonsareDirectorsandthecategoryoftheirdirectorshipareasfollows:

NameofDirectors Nameofotherlistedentitiesin which he is Director

CategoryofDirectorship

ShriChetanShah Nil NotApplicable

ShriAshokKadakia EmmessarBiotechAndNutritionLtd IndependentDirector

HotelRugbyLimited IndependentDirector

ShriHarishMotiwalla MultibaseIndiaLimited IndependentDirector

SiyaramSilkMillsLimited IndependentDirector

BalkrishnaPaperMillsLimited IndependentDirector

ExcelIndustriesLimited IndependentDirector

OrientAbrasivesLimited IndependentDirector

HitechCorporationLimited IndependentDirector

ShriAbhilashMunsif Nil NotApplicable

SmtNavitaGaiha Nil NotApplicable

ShriPundarikSanyal OrientAbrasivesLimited IndependentDirector

AsitCMehtaFinancialServicesLimited IndependentDirector

B. Inter-se relationships among Directors:

NoneoftheDirectorsoftheCompanyhaveanyinter-serelationships.

C. NumberofsharesheldbyNon-ExecutiveDirectors:

ThedetailsofnumberofsharesheldbytheNon-ExecutiveDirectorsason31stMarch,2019isgivenbelow:

Name Designation NumberofSharesHeld

ShriChetanShah Chairman(Non-Executive),Non-Independent 1,35,43,814

ShriHarishMotiwalla Non-Executive,Independent 500

ShriAshokKadakia Non-Executive,Independent 8,250

D. Board Meetings:

TheBoardmetfive(5)timesduringtheFinancialYear2018-2019on28thMay,2018,13thAugust,2018,12thNovember,2018,11thDecember,2018and11thFebruary,2019andthatthetimeelapsedbetweenanytwoconsecutivemeetingsdidnotexceed120days.Thenecessaryquorumwaspresentforallthemeetings.

E. CoreSkills/Expertise/Competencies:

TheBoard’scoreskills/expertise/competenciesasidentifiedinthecontextofitsbusinessandsectorforittofunctioneffectivelyandthoseactually available with the Board of Directors are Mining expertise; Industry Experience; Business Management/Strategy; Leadership/entrepreneurship,SalesandMarketing,FinancialManagement;lawandgovernance;RiskManagement;GlobalBusinessDevelopment;HumanResourceManagement.

F. Independent Directors:

a. TheCompanyhasreceivednecessarydeclarationsfromtheIndependentDirectorsoftheCompany,confirmingthattheymeetthecriteriaofindependenceasprescribed.

40


b. During the year, the IndependentDirectors separatelymeton11thMarch,2019without theattendanceofNon-IndependentDirectors andManagementPersonneloftheCompany.ThemeetingwasheldwiththeobjectiveofreviewingtheperformanceofNon-IndependentDirectors,theBoardasawholeandtheChairmanoftheCompany.TheIndependentdirectorsalsoassessedthequality,quantityandtimelinessofflowofinformationbetweentheManagementoftheCompanyandtheBoardofDirectorsthatisnecessaryfortheBoardofDirectorstoeffectivelyandreasonablyperformtheirduties.

c. FamiliarizationProgramofIndependentDirectors:

WheneveranynewIndependentDirectorisappointed,he/sheismadefamiliartothebusinessanditsoperationsthroughfamiliarizationprogramsenablingthemtofamiliarizeandgetacquaintedwithoperationalperformanceandforwardgoingbusinessformulations/strategies,soastogainabetterunderstandingoftheirroles,rightsandresponsibilitiesforthepurposeofprovidingappropriateassistance,counselling&directionsinordertoachievegrowthoftheCompany,thedetailsofwhichareavailableonthewebsiteoftheCompanyatwww.ashapura.com.

Asapartofsuchprogram,theIndependentDirectorshaveanopportunitytointeractwithManagementPersonnelandareprovidedwithalltherelevantinformationanddocumentsrequiredand/orsoughtbythemenablingthemtohaveagoodunderstandingoftheCompany,itsbusinessmodelandvariousoperations.

d. CEOCertificate:

AComplianceCertificate,pursuanttotheprovisionsofRegulation17(8)oftheListingRegulationsreadwithPartBofScheduleIIthereunder,dulysignedbytheShriAjayPhalod,CEOandShriAhishDesai,CFOinrespectofthefinancialyearended31stMarch,2019wastakenonrecordbytheBoardofDirectorsoftheCompany.

e. CodeofConduct:

TheCompanyhasadoptedAshapura’sCodeofConductfortheBoardMembers,SeniorManagementandallemployeesaboveOfficerslevelandthesamehasbeenpostedonthewebsiteoftheCompanyatwww.ashapura.com.ThedutiesoftheIndependentDirectorsaslaiddownintheCompaniesAct,2013havebeenframedseparatelyandformspartofAshapura’sCodeofConduct.

AdeclarationfromtheCEOthatallBoardmembersandseniormanagementpersonnelhaveaffirmedcompliancewiththeCodeofConductforthefinancialyearended31stMarch,2019,formspartoftheAnnualReport.

TheCompanyisinduecomplianceofalltheprovisionsofRegulation17oftheListingRegulationsfortheFinancialYear2018-2019.

3. COMMITTEE(S)OFBOARDOFDIRECTORS:

ThefollowingCommittee(s)wereconstitutedbytheBoardofDirectors,thebasicstructureofwhichisdetailedhereinbelow:

A. AUDIT COMMITTEE:

TheBoardhasconstitutedaqualifiedandindependentAuditCommitteeinlinewiththeprovisionsofRegulation18oftheListingRegulations,readwithSection177oftheCompaniesAct,2013andisinduecomplianceofalltheprovisionsstatedtherein.

a. TermsofReference:

ThetermsofreferenceoftheAuditCommitteeareinlinewiththeregulatoryrequirementswhichamongstothersarespecifiedhereinbelow:

• OversightoftheCompany’sfinancialreportingprocessanddisclosureofitsfinancialinformationtoensurethatthefinancialstatementiscorrect,sufficientandcredible.

• Reviewing with themanagement, the quarterly/half yearly/annual financial statements before submission to the Board and whereverrequirednecessaryrecommendationsaremadetocomplywithapplicablelegislations.

• ApprovingorsubsequentlymodifyingtransactionsoftheCompanywithrelatedpartiesandtograntomnibusapprovalafterconfirmingthattheysatisfytherequirementoflaw.

• Reviewingtheadequacyofinternalauditfunction,reportingstructure,coverageandfrequencyofinternalaudit. • DiscussionwithAuditorsbeforetheauditcommencesonnatureandscopeofauditaswellaspost-auditdiscussiontoascertainanyareaof

concern. • Overseeing/ReviewingtheVigil(WhistleBlower)Mechanism. • Recommendingappointment,removalandtermsofremunerationofAuditors. • Reviewingstatementofdeviations,ifany. • ToreviewallotherinformationasrequestedbytheBoardofDirectorsand/orarerequiredundertheRegulations.

b. Composition:

Ason31stMarch,2019,theAuditCommitteecomprisedofFour(4)IndependentDirectors.ThecompositionoftheAuditCommitteeandthedetailsofmeetingsattendedbyitsmembersaregivenbelow:

41

Name Category NumberofmeetingsAttended

ShriHarishMotiwalla(Chairman) Non-Executive,Independent 5

ShriAshokKadakia* Non-Executive,Independent 3

ShriAbhilashMunsif Non-Executive,Independent 5

ShriPundarikSanyal Non-Executive,Independent 5

*ShriAshokKadakiawasinductedasamemberofAuditCommitteewitheffectfrom13thAugust,2018.

ShriHarishMotiwalla, theChairmanof theAuditCommitteewaspresentat the37thAnnualGeneralMeetingof theCompanyheldon28thSeptember,2018.

TheWholeTimeDirector&CEO,Sr.GeneralManager-Accounts,therepresentativeofStatutoryAuditorsandtheInternalAuditorsareregularinviteestotheAuditCommitteeMeetings.

ShriSachinPolke,CompanySecretary&VicePresidentactsastheSecretarytotheAuditCommittee.

c. Meetings:

Duringtheyearunderreview,theAuditCommitteemetfive(5)timeson28thMay,2018,13thAugust,2018,12thNovember,2018,28thNovember,2018and11thFebruary,2019.Themaximumgapbetweenanytwoconsecutivemeetingswasnotmorethanonehundredandtwentydays.Thenecessaryquorumwaspresentforallthemeetings.

B. NOMINATION AND REMUNERATION COMMITTEE:

TheBoardhasconstitutedtheNominationandRemunerationCommitteeinlinewiththeprovisionsofRegulation19oftheListingRegulationsreadwithSection178oftheCompaniesAct,2013andisincomplianceofalltheprovisionsstatedtherein.


ThetermsofreferenceoftheNominationandRemunerationCommitteeareinlinewiththeregulatoryrequirementswhichamongotherarespecifiedhereinbelow:

• Toformcriteria/policyforappointment/remuneration/removalofDirectorsincludingChairmam/Whole-timeDirector/ManagingDirector,ifanyandSeniorManagementExecutives.

• ToidentifyandrecommenddeservingcandidatesforDirectorships&SeniorManagementpositions. • ToformpolicyforperformanceevaluationandtoevaluateperformanceofDirectors/CEO/CommitteeofDirectorsandtoalterandmodify

thesametobeinlinewiththeCompaniesAct,2013andtheListingRegulations. • TodeviseguidelinesforDiversityofBoardofDirectorsoftheCompany. • Torecommendextension/terminationofthetermofappointmentoftheIndependentDirectors,onthebasisofthereportofperformance

evaluationoftheIndependentDirectors.

b. Composition:

Ason31stMarch,2019,theNomination&RemunerationCommitteecomprisedofthree(3)Directors.ThecompositionoftheNomination&RemunerationCommitteeandthedetailsofmeetingsattendedbyitsmembersareappearinghereinafter:



ShriAbhilashMunsif Non-Executive,Independent 2


c. Meetings:

Duringtheyearunderreview,Two(2)meetingsoftheNominationandRemunerationCommitteewereheldon10thAugust,2018&11thMarch,2019.

d. PerformanceEvaluation:

Pursuant toapplicableprovisionsof theCompaniesAct,2013and theListingRegulations, theBoard, inconsultationwith itsNomination&RemunerationCommittee,hascarriedouttheannualperformanceevaluationofitsownperformance,aswellastheevaluationoftheworkingofitsCommittees.

Asapartofthenomination&remunerationpolicy,astructuredquestionnaireforevaluationwaspreparedaftertakingintoconsiderationvariousaspectsdependingonthecategoryofDirector,Board&Committee,whoseperformanceistobeevaluated.Accordingly,theannualperformanceevaluationof theBoard, itsCommitteesandeachDirectorwascarriedout for the financialyear2018-19by IndependentDirectorsat theirseparateMeetingheldon11thMarch,2019,asalsobytheNomination&RemunerationCommitteeandthesamewasanalyzed&confirmedbytheBoardofDirectors.

42


DetailsofmethodologyadoptedforperformanceevaluationofDirectorsincludingthatoftheBoardasawholeanditsCommitteehavebeenprovidedintheBoard’sReport.

e. RemunerationofDirectors:

TheNon-ExecutiveDirectorshavenopecuniaryrelationshiportransactionswiththeCompanyintheirpersonalcapacityexceptthattheSittingFeesispaidforattendingtheBoardMeetings,AuditCommitteeMeetings&NominationandRemunerationCommitteeMeetings(detailedhereinbelow)asrecommendedbytheBoardpursuanttotheprovisionsoftheCompaniesAct,2013andrulesframedthereunder.Besidespaymentofsittingfees,nootherfees/compensation/commissionispaidtotheNon-ExecutiveDirectors.

ThedetailsofsittingfeespaidtoNon-ExecutiveDirectorsfortheyearended31stMarch,2019areasunder:(AmountinRs.)

Name Board Meetings Audit Committee Meetings

Nomination & Remuneration Committee Meetings

ShriChetanShah 2,00,000/- - -

ShriHarishMotiwalla 2,50,000/- 2,50,000/- 50,000/-

ShriAshokKadakia 1,50,000/- 1,50,000/- -

ShriAbhilashMunsif 2,50,000/- 2,50,000/- 50,000/-

Smt.NavitaGaiha 1,50,000/- - -

ShriPundarikSanyal 2,50,000/- 2,50,000/- 50,000/-

ThedetailsofRemunerationpaidtoExecutiveDirectorfortheyearended31stMarch,2019areasunder:

Name Salaries&Perquisitesincluding allowance

Tenure as per agreement upto Notice period

ShriRajnikantPajwani# Rs.30,00,000/-* 30thSeptember,2019(1Yearw.e.f.1stOctober,2018) 3months

#ShriRajnikanthPajwanihasresignedfromhispositionofWhole-TimeDirector&ChiefExecutiveOfficeroftheCompanyw.e.f.1stJune,2019.

*ConsideringthefinancialpositionoftheCompanycombinedwithnegativeEffectiveCapitalfortheyearended31stMarch,2018,calculatedaspertheprovisionsofScheduleVoftheCompaniesAct,2013,theWhole-timeDirectorcontinuedtoreceiveminimumremunerationduringtheFinancialYear2018-2019asprescribedunderScheduleVoftheCompaniesAct,2013andforwhichapprovalwasobtainedfromthemembersoftheCompany,attheAnnualGeneralMeetingheldon28thSeptember,2018. (TDSasapplicablehasbeendeducted).

C. STAKEHOLDERS’ RELATIONSHIP COMMITTEE: TheBoardhasconstitutedtheStakeholders’RelationshipCommitteeinlinewiththeprovisionsofRegulation20oftheListingRegulations,read

withSection178oftheCompaniesAct,2013andisinduecomplianceofalltheprovisionsstatedtherein.


ThetermsofreferenceoftheStakeholders’RelationshipCommitteeareinlinewiththeregulatoryrequirementswhichamongotherarespecifiedhereinbelow:

• IssueofDuplicateShareCertificates.• Mattersconnectedwithtransfer/creditofsecurities/transmission.• RedressalofShareholders’/Investors’complaintsrelatedtonon-receiptofdeclareddividend,transferofshares,non-receiptofannualreports,

non-receiptofduplicatesharecertificatesetc.• Toreviewtheperiodicityandeffectivenessofthesharetransferprocess,statutorycertifications,depositoryrelatedissuesandactivitiesofthe

RegistrarandShareTransferAgent.• AnyotherfunctionasmaybestipulatedbytheCompaniesAct,2013,SEBI,StockExchangeoranyotherregulatoryauthoritiesfromtimetotime.

b. Composition:

As on 31stMarch, 2019, the Stakeholders’ Relationship Committee comprised of three (3) Directors. The composition of the Stakeholders’RelationshipCommitteeandthedetailsofmeetingsattendedbyitsmembersaregivenbelow:


ShriChetanShah(Chairman) Non-Executive,Non-Independent 6

ShriRajnikantPajwani WholeTimeDirector&ChiefExecutiveOfficer 6

ShriSuryakantShah Member 6


43

c. Meetings:

Duringtheyearunderreview,themembersoftheStakeholders’RelationshipCommitteemetsix(6)timeson4thMay,2018,23rdJuly,2018,5thOctober,2018,12thNovember,2018,8thJanuary,2019and27thFebruary,2019.

d. Name,DesignationandAddressofComplianceOfficer:

ShriSachinPolke,CompanySecretary&VicePresidentactsastheComplianceOfficerandisavailableat‘AshapuraMinechemLimited’,JeevanUdyogBuilding,3rdFloor,278,D.N.Road,Fort,Mumbai–400001.

e. Detailsofinvestorcomplaintsreceivedandredressedduringthefinancialyear2018-2019areasfollows:

Opening balance Received during the year Resolved during the year Closing balance

NIL 3 3 NIL

D. COMMITTEE OF DIRECTORS:


ThetermsofreferenceoftheCommitteeofDirectorsareasfollows:

• Reviewingvariousdaytodayadministrative,operationalandfinancemattersrequiringurgentdecisions. • Availing/makingofloans,raisingoffunds,givingofcorporateguarantees/securitiesconsideringthelimitsandprovisionsasspecifiedinthe

CompaniesAct,2013. • Toconsiderandapproveintrinsic&timeboundpolicydecisionssuchasinvestment/disinvestmentinotherbodycorporate(s)/firm(s),leasing/

disposingofftheCompany’sassetswithinthegroup&suchotherdecisionswheretimeisofessenceandthatthesaiddecisionsareplacedbeforetheBoardofDirectorsforratification.

• SuchothermattersasmaybedelegatedbytheBoardtotheCommitteepursuanttotheprovisionsoftheCompaniesAct,2013andsuchotherActs.

b. Composition:

Ason31stMarch,2019,theCommitteeofDirectorscomprisedofthree(3)Directors.TheCompositionoftheCommitteeofBoardofDirectorsandtheparticularsofattendanceoftheCommitteeMembersareasfollows:

Name Category No.ofMeetingsAttended

ShriRajnikantPajwani(Chairman) Whole-TimeDirector&CEO 12

ShriChetanShah Non-Executive,Non-Independent 12

ShriHarishMotiwalla Non-Executive,Independent 12

c. Meetings:

Duringtheyearunderreview,twelve(12)meetingsoftheCommitteeofDirectorswereheldonthedatesmentionedbelow:

12thApril,2018,4thMay,2018,5thJune,2018,29thJune,2018,16thJuly,2018,10thSeptember,2018,08thOctober,2018,3rdNovember,2018,4thDecember,2018,08thJanuary,2019,12thFebruary,2019and11thMarch,2019.

E. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE:

TheCorporateSocialResponsibility(CSR)CommitteeoftheCompanyisconstitutedinlinewiththeprovisionsofSection135oftheCompaniesAct,2013andisinduecomplianceofalltheprovisionsstatedtherein.

a. Termsofreference:

• FormulateandrecommendtotheBoard,aCorporateSocialResponsibility (CSR)Policy indicatingtheactivities tobeundertakenbytheCompanyaftertakingintoconsiderationScheduleVIIoftheAct.

• Recommendtheamountofexpendituretobeincurredontheactivitiesreferredabove. • MonitortheCSRactivitiesoftheCompanyfromtimetotime. • TofinalizethebudgetforCSRexpenditureandrecommendthesametotheBoardforapprovalconsideringtheapplicablerules/regulations.

b. Composition:

ThecompositionoftheCSRCommitteeanddetailsofthemeetingattendedbyitsmembersduringtheyearunderreviewaregivenbelow:

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Name Category No.ofMeetingsAttended


ShriChetanShah Non-Executive,Non-Independent 2

ShriRajnikantPajwani Whole-TimeDirector&CEO 2

c. Meetings:

Duringtheyearunderreview,two(2)meetingsoftheCSRCommitteewereheldon10thAugust,2018and11thMarch,2019.

4. GENERAL BODY MEETINGS: DetailsofAnnualGeneralMeetings(AGMs)heldduringthelastthreeyears,areasfollows:

Financial Year

Date Time Location Special Resolution Passed

2017-18 28thSeptember,2018 3.00p.m. Rangaswar Hall, 4th Floor, Y.B. Chavan Centre, GeneralJagannathBhosaleRoad,NarimanPoint,Mumbai-400021

Yes

2016-17 21stSeptember,2017 3.00p.m. BabasahebDahanukarSabhagraha,MaharashtraChamberof Commerce, Oricon House, 6th Floor, Kala Ghoda, Fort,Mumbai-400001

Yes

2015-16 29thSeptember,2016 3.00p.m. Walchand Hirachand Hall, 4th Floor, Indian Merchants’Chamber,Mumbai-400020

No

Duringtheyearunderreview,noSpecialResolutionhasbeenpassedthroughtheexerciseofpostalballot.

5. MEANS OF COMMUNICATION:

Thequarterly,halfyearlyandannualfinancialresultsoftheCompanyaresubmittedtotheBombayStockExchangeLimited(‘BSE’)andNationalStockExchangeofIndiaLimited(‘NSE’)immediatelyafterapprovaloftheBoard.TheresultsoftheCompanyarepublishedinoneEnglishdailynewspaperin‘BusinessStandard’andoneMarathinewspaperin‘Sakal’within48hoursofapprovalthereofandarealsopostedonCompany’swebsitewww.ashapura.com.

AllotherstatutoryinformationasmaybeprescribedundertheCompaniesAct,2013and/orListingRegulationsaredisplayedonthewebsiteoftheCompany.

6. GENERALSHAREHOLDERINFORMATION:

Annual General Meeting: Whilst the companywas under CIRP, the Registrar of Companies,Mumbai, on an applicationmadebyIRPrequestingforanextensionforconveningthe38thAnnualGeneralMeetingfortheFinanicalYearended31stMarch,2019,granted,videanorderdated3rdseptember2019,anextensionofthreemonthsforholding38thAnnualGeneralMeetingoftheCompany.

Day&Date:Friday,27thDecember,2019Time:3.00p.m.Venue:RangaswarHall,4thFloor,Y.B.ChavanCentre,GeneralJagannathBhosaleRd.,NarimanPoint,Mumbai–400021

Tentative Financial Calendar: Financialreportingforthequarterending30thJune,2019:Onorbefore14thAugust,2019

Financialreportingforthequarterending30thSeptember,2019:Onorbefore14thNovember,2019Financialreportingforthequarterending31stDecember,2019:Onorbefore14thFebruary,2020

Financialreportingforthequarterending31stMarch,2020:Onorbefore30thMay,2020

DateofBookClosure: 21stDecember,2019to27thDecember,2019(bothdaysinclusive)

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Listing Details: EquitySharesarelistedonthefollowingStockExchanges:

1. BombayStockExchangeLimited,PhirozeJeejeebhoyTowers,DalalStreet,Mumbai–400001.

2. NationalStockExchangeofIndiaLimited,“ExchangePlaza”,BandraKurlaComplex,Bandra(East),Mumbai–400051.

TheAnnualListingFeesfortheyear2018-2019hasbeenpaidtothesaidStockExchanges.

StockCode: BombayStockExchangeLtd.-527001NationalStockExchangeofIndiaLtd.ASHAPURMIN

ISIN Number: INE348A01023

CorporateIdentificationNumber(CIN): L14108MH1982PLC026396

MarketPriceData:

Period

BombayStockExchangeLimited NationalStockExchangeofIndiaLimited

Sensex(Rs.) AMLShareprice(Rs.) Nifty(Rs.) AMLShareprice(Rs.)

High Low High Low High Low High Low

Apr-18 35,213.30 32,972.56 82.30 66.30 10,759.00 10,111.30 82.20 66.50

May-18 35,993.53 34,302.89 74.95 56.75 10,929.20 10,417.80 73.75 56.50

Jun-18 35,877.41 34,784.68 59.15 42.35 10,893.25 10,550.90 59.40 42.10

Jul-18 37,644.59 35,106.57 51.10 41.50 11,366.00 10,604.65 51.20 41.25

Aug-18 38,989.65 37,128.99 56.00 42.65 11,760.20 11,234.95 56.85 42.50

Sep-18 38,934.35 35,985.63 47.55 31.10 11,751.80 10,850.30 48.00 31.00

Oct-18 36,616.64 33,291.58 33.45 26.45 11,035.65 10,004.55 33.30 26.10

Nov-18 36,389.22 34,303.38 32.80 26.60 10,922.45 10,341.90 32.90 26.80

Dec-18 36,554.99 34,426.29 34.65 26.00 10,985.15 10,333.85 34.75 25.60

Jan-19 36,701.03 35,375.51 31.50 26.05 10,987.45 10,583.65 31.60 26.00

Feb-19 37,172.18 35,287.16 26.75 19.45 11,118.10 10,585.65 26.90 18.55

Mar-19 38,748.54 35,926.94 34.50 21.15 11630.35 10,817.00 34.70 21.10

SharePerformanceoftheCompanyincomparisontoBSESensex:

46


SharePerformanceoftheCompanyincomparisontoNSENifty:

Registrar and Share TransferAgent:

M/s.LinkIntimeIndiaPvt.Ltd. C-101,247Park,L.B.S.Marg,Vikhroli(West),Mumbai–400083

ShareTransferSystem:

TheCompany’ssharesaretradedontheStockExchangesinDemataswellasinPhysicalMode.

InDematMode,thetransfersareeffectedthroughNationalSecuritiesDepositoryLimited(NSDL)andCentralDepositoryServices(India)Limited(CDSL).

Sharetransfersinphysicalformareprocessedandapprovedweeklyandthesharecertificatesarereturnedtotheshareholderswithinaperiodof15daysfromthedateofreceiptofthetransferdocuments,subjecttothedocumentsbeingvalidandcompleteinallrespects.

YourCompanyobtainsahalf-yearlyComplianceCertificatefromaCompanySecretaryinPracticeasrequiredunder Regulation40(9) of the SEBI Listing Regulations and file a copy of the saidCertificatewith the StockExchanges.

PursuanttoRegulation7(3)oftheSEBIListingRegulations,ComplianceCertificate,dulysignedbytheComplianceOfficerandtheauthorizedrepresentativeoftheCompany’sRTAviz.LinkIntimeIndiaPrivateLimitedconfirmingthatallactivitiesinrelationtosharetransferfacilityarebeingmaintainedbytheRTAforthehalfyearended30thSeptember,2018and31stMarch2019havebeendulysubmittedtotheStockExchanges.

Distribution of Shareholding& Category-wise distribution:

ReferTableA&B

Dematerialization of sharesandliquidity:

Ason31stMarch,2019,99.57%ofthepaid-upsharecapital(facevalueofEquitySharesofRs.2each)isheldinDematformwithNSDLandCDSL.

Mode No.ofequityshares %totheTotalShareCapital

Physical 374243 0.43%

Electronic:(A)NSDL(B)CDSL

7448042212131433

85.62%13.95%

TOTAL 86986098 100.00%

Outstanding GDR / ADR / Warrants or any ConvertibleInstruments and their likelyimpactonEquity:

The Company has not issued anyGDR/ADR/warrants or any convertible instruments in the past and henceason31stMarch,2019,theCompanydoesnothaveanyoutstandingGDR/ADR/warrantsoranyconvertibleinstruments.

Plant Locations: 1. VillageBaraya,Bhuj-MundraHighway,Tal.Mundra,Kutch,Gujarat.2. Chitra,GIDCBhavnagar,Gujarat.3. VillagePaddhar,Taluka-Bhuj,Dist.Kutch,Gujarat.4. Mamuara,Taluka-Bhuj,Dist.Kutch,Gujarat.5. KINFRAApparelPark,Menamkulam,Thiruvananthapuram,Kerala.6. IndustrialArea,Baikampady,Mangalore.

47

AddressforCorrespondence: TheCompany’sRegistrarandShareTransferAgentviz.M/sLinkIntimeIndiaPvt.Ltd.providesallshareholderrelatedservices.

Any query relating to shares and requests for transactions such as transfers, transmissions and nominationfacilities, duplicate share certificates, changeofaddressandalsodematerializationof sharesmaypleasebetakenupwith:

M/s.LinkIntimeIndiaPvt.Ltd.C-101,247Park,L.B.S.Marg,Vikhroli(West),Mumbai–400083Tel.:+91-22-49186000Fax:+91-22-49186060.E-mail:[email protected]

7. OTHER DISCLOSURES:

a. TheCompanyhasformulatedapolicyondealingwithRelatedPartyTransactionsandhasbeenuploadedonthewebsiteoftheCompanyathttp://www.ashapura.com/investor-corner.php.TheBoardofDirectorshasentrustedresponsibilityontheAuditCommitteetograntomnibusapprovalforthetransactionswhicharerepetitiveinnatureandtoconfirmthattheymeetthecriteriaofhavingenteredintoordinarycourseofbusinessandatarm’slengthbasis.RelatedpartytransactionshavebeendisclosedunderNote38totheAccountsfortheyearunderreview.AStatementinsummaryformoftransactionswithrelatedpartiesintheordinarycourseofbusinessareplacedperiodicallybeforetheAuditCommittee/Boardforreviewandapproval.NoneofthetransactionswithanyrelatedpartieswereinconflictwiththeCompany’sinterest.

b. Duringtheyearunderreview,nopenaltywas imposedontheCompanybyanyauthoritybut for theFinancialYear2015-16, theCompanyhadpaidthepenaltytoStockExchangesforNon-ComplianceoferstwhileClause49(II)(A)(1)oftheListingAgreementi.e.non-appointmentofwomandirectorontheBoardoftheCompanyonorbefore31stMarch,2015.

TheCompanyhascompliedwithalltherequirementsoftheprovisionsoftheListingRegulations,aswellasregulationsandguidelinesofSEBI,asissuedfromtimetotimeandapplicabletotheCompany.

c. InlinewithRegulation22oftheListingRegulationsandSection177oftheAct,WhistleBlowerPolicy/VigilMechanismhasbeenformulatedforDirectorsandemployeestoreportgenuineconcernsaboutunethicalbehavior,actualorsuspectedfraudorviolationoftheCompany’sCodeofConduct.ThemechanismprovidesforadequatesafeguardagainstvictimizationofDirector(s)/employee(s)whoavailthemechanism,byprovidingfordirectaccesstotheChairmanoftheAuditCommitteeinexceptionalcases.NopersonhasbeendeniedaccesstotheChairmanoftheAuditCommittee.ThePolicyisavailableontheCompany’swebsitehttp://www.ashapura.com/investor-corner.php.

Duringtheyearunderreview,nocomplainthasbeenreceivedundertheVigilMechanism/WhistleBlowerPolicy.

d. TheCompanyhas inplaceaCodeofConduct forPreventionof InsiderTradingandCodeofPracticesandProceduresforFairDisclosureofUnpublished Price Sensitive Information to regulate,monitor and report tradingby Insiders as prescribedunder SEBI (Prohibitionof InsiderTrading)Regulations,2015,asapprovedbytheBoardofDirectors.

e. Intermsofregulation16oftheListingRegulations,theCompanyhasinplaceapolicyonDeterminingMaterialSubsidiary,approvedbytheBoardandthesamehasbeendisplayedontheCompany’swebsiteathttp://www.ashapura.com/investor-corner.php.

f. CertificatefromCompanySecretaryinPracticeonNon-DisqualificationofDirectorsoftheCompany:

ACertificatehasbeenreceivedfromShriVirendraBhatt,PracticingCompanySecretary,thatnoneoftheDirectorsontheBoardoftheCompanyhavebeendebarredordisqualifiedfrombeingappointedorcontinuingasDirectorsofcompaniesbytheSecuritiesandExchangeBoardofIndia,MinistryofCorporateAffairsoranysuchStatutoryAuthority.

g. FeesPaidtoStatutoryAuditors:

ThedetailsoffeespaidbytheCompanytothestatutoryauditorismentionedinNoteNo.27oftheStandaloneFinancialStatements.

h. DisclosuresinRelationtoSexualHarassmentofwomenatworkplace(Prevention,ProhibitionandRedressal)Act,2013:

ThedetailshavebeendisclosedintheDirectorsReportformingpartofthisAnnualReport.

8. COMPLIANCEWITHCORPORATEGOVERNANCEREQUIREMENTS:

TheCompanyhascompliedwithall themandatoryrequirementsascontained in theSEBI (ListingObligationsandDisclosureRequirements)Regulations,2015.

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“TABLEA”DISTRIBUTION OF SHAREHOLDING AS ON 31ST MARCH, 2019

No.ofEquitySharesheld No.ofShareholders %ofShareholders No.ofShares %ofShareholding

1-500 18704 75.77 2912974 3.35

501-1000 2434 9.86 2035924 2.34

1001-2000 1521 6.16 2461733 2.83

2001-3000 537 2.17 1402178 1.61

3001-4000 298 1.21 1089906 1.25

4001-5000 320 1.30 1516005 1.74

5001-10000 486 1.97 3543261 4.07

10001&above 384 1.56 72024117 82.81

TOTAL 24684 100.00 86986098 100.00

“TABLEB”CATEGORY-WISEDISTRIBUTIONASON31ST MARCH, 2019

Categories TotalNo.ofShares %ofHoldings

A)Promoters Holding

Individuals 26513454 30.48

BodiesCorporate 8093040 9.30

Total(A) 34606494 39.78

B)Public Holding

i)Institutions

MutualFunds 130000 0.15

ForeignPortfolioInvestors(Corporate) 20862166 23.98

NationalisedBank 8000 0.01

Non-NationalisedBank 200 0.00

Total(B)(i) 21000366 24.14

ii)Non-Institutions

BodiesCorporate 3878707 4.46

NonResidentIndian 2192232 2.52

NonResident(nonrepatriable) 1546478 1.78

MarketMaker 12279 0.01

HinduUndividedFamily 889909 1.02

OtherDirectors 28550 0.03

ClearingMembers 252534 0.29

NBFCsregisteredwithRBI 14400 0.02

Public 22564149 25.94

Total(B)(ii) 31379238 36.07

Total(B)(i)+(B)(ii) 52379604 60.22

Grand Total 86986098 100.00

ForandonBehalfoftheBoardofDirectors Sd/- CHETAN SHAH EXECUTIVE CHAIRMAN (DIN:00018960) Place:MumbaiDate:13thNovember,2019

49

AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

ToTheMembersofASHAPURA MINECHEM LIMITED

Wehaveexamined thecomplianceof conditionsofCorporateGovernancebyAshapuraMinechemLimited (“theCompany”) for theyearended31stMarch,2019,asstipulatedinregulations17to27andclause(b)to(i)ofregulation46(2)andparaCandDofscheduleVoftheSEBI(ListingObligationsandDisclosureRequirements)Regulation,2015(“ListingRegulations”).

ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityofthemanagementoftheCompany.Thisresponsibilityincludesthedesign,implementationandmaintenanceof internalcontrolandprocedures toensure thecompliancewith theconditionsof theCorporateGovernancestipulatedinListingRegulations.

Ourresponsibilityislimitedtoexaminingtheproceduresandimplementationthereof,adoptedbytheCompanyforensuringcompliancewiththeconditionsoftheCorporateGovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.Wehavecarriedout an examinationof the relevant records of theCompany for thepurposeof providing reasonable assuranceon the compliancewithCorporateGovernancerequirementbytheCompanyinaccordancewiththeGuidanceNoteonCertificationofCorporateGovernanceissuedbytheInstituteofCharteredaccountantsofIndia.

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wecertifythattheCompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedintheListingRegulationsfortheyearended31stMarch,2019exceptthattheCompanyhasnotappointedChiefFinancialOfficer(CFO)duringtheyearunderreview.

WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

For P A R K & COMPANY Chartered Accountants FRN:116825W

PRASHANT VORA Partner Membership No. 034514UDIN:19034514888AA43576


DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND SENIORMANAGEMENTPERSONNELWITHTHECOMPANY’SCODEOFCONDUCT

ThisistoconfirmthatCompanyhasadoptedaCodeofConductforalltheBoardMembers,SeniorManagementandallemployeesaboveOfficerLevel.TheseCodesareavailableontheCompany’swebsite.

IfurtherconfirmthattheCompanyhasinrespectofthefinancialyearendedon31stMarch,2019,receivedfromalltheBoardMembersandSeniorManagementPersonneloftheCompany,adeclarationofcompliancewiththeCodeofConductasapplicabletothem.

For Ashapura Minechem Limited Sd/- AjayPhalod ChiefExecutiveOfficer Place:MumbaiDate:13thNovember,2019

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MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC ENVIRONMENT:

Afterstronggrowthin2017andearly2018,globaleconomicactivityslowedinthesecondhalfoflastyear,reflectingaconfluenceoffactorslikeweakening financialmarket sentiment, tradepolicyuncertainties, slowdown inmanufacturing,creditpolicy tighteningandconcernsoverChina’soutlookanddecelerationinindustrialproductionoutsidetheUnitedStates(US)whichweigheddownmomentum.Assuch,intheCalendarYear(CY)2018,worldeconomicgrowthmarginallydeceleratedto3.6%,ascomparedto3.8%inCY2017.Itisexpectedtofurtherdecelerateto3.3%inCY2019,beforepickingupslightlyto3.6%inCY2020.NegativeeffectsoftariffincreasesenactedinUSandChinawillbetheprimaryreasonforslowoutput.GrowthratefortheemergingmarketanddevelopingeconomiesisalsolikelytowitnessaslowdowninCY2019,furtherimpactingoutput.

Whiletheglobaleconomyisbattlingheadwinds,India’seconomycontinuestobeoneofthefastestgrowingmajoreconomiesintheworld.Indiabecametheworld’ssixth-largesteconomyinFY2019.Despiteexternalvulnerabilitiesintheformofhighoilprices,tradetensionsbetweenmajorglobaltradingpartnersandtheUSmonetarytightening,theIndianeconomyremainedresilient.Globally,analystsandagencieshaveaconsensusthatIndianeconomywillcontinuetooutperformamidstglobalgloom,albeitataslowerpace.AspertheInternationalMonetaryFund(‘IMF’),theIndianeconomyislikelytoacceleratemoderatelyandgrowby7.3%inFY2019-2020.DespiteIndia’soptimisticoutlookandrecentstockmarketBullRun,thenationstillfacesdeep-rooted,persistentchallenges.MajoreconomicchallengeinIndiaisthepopulationgrowth,whichhasgrown20%perdecadeasalsothedeterioratinginfrastructureinbusiness,education,andhealthcare.

INDUSTRY SCENARIO:

The IndianMining industry is thebackboneformostof the industries likepower,steel,cement,etc.which, in turn,aresignificant for theoveralldevelopmentoftheeconomy.Itproducesvarietyofmineralscomprisingofnon-metallicminerals,metallicminerals,fuelrelatedminerals,atomicandminorminerals(includingbuildingandotherminerals).

Nevertheless,theminingsector’scontributiontothecountry’sGrossDomesticProduct(GDP)hasbeenlessthan3%inFY2018-19.Itneedstobemorethandoubleforthecountrytoreachadouble-digitgrowthrateof10%,aspertheindustrybodyviz.FederationofIndianChambersofCommerce&Industry(FICCI).Metalsandminingindustryisconfrontedwithvariousdifficultieslikeinadequateinfrastructuralfacilitiesintermsofweaklegislations,regulatorychallengesandpolicygridlocks,corruption,socialunrest,lowfinancialguarantee,lowcommoditypricesetc.Manyoftheplannedprojectshavehinderedandlaggedduetoissuesrelatedtolandacquisitions,miningleases,forestclearances;reliefandrehabilitation(R&R)policies.Further,theNationalMineralPolicy2019needstobereviewedforlong-termsustainablegainstoallstakeholders.

OPPORTUNITIES:

Thereissignificantscopefornewminingcapacitiesinironore,bauxiteetc.Powerandcementindustriesalsoaidinggrowthinthemetalsandminingsector.Further,thedemandforironandsteelissettocontinue,giventhestronggrowthexpectationsfortheresidentialandcommercialbuildingindustry.WiththeIndianeconomyexpectedtogrowmorethan7%intheyearstocome,sectorssuchasinfrastructureandautomobilesshouldreceivearenewedthrust,whichwouldinturngeneratedemandforsteelinthecountry.Furthermore,100%ForeignDirectInvestment(FDI)allowedintheminingsectorandexplorationofmetalandnon-metaloresundertheautomaticrouteisexpectedtobenefit.Companiessuchasyours,withglobalexpertisetooperateandtransportfrommultipleresourcebaseswouldbeinapositiontotakeadvantageofsuchopportunities.

THREATS:

In theevent that theCompany isunable to conclude settlementswith respect to the contested shippingandother financial claims,anyadverselegislativedecisions/actionsinthesaidmatterscouldsignificantlyaffecttheCompany.Acontinuationofthedebilitatinglevelsofgovernmentleviessuchasroyaltiesandexportdutiesonminerals&oresincludingbauxitecouldwhittledownthecompetitivenessofIndianexportersversusotherglobalsuppliers.Also,anyunfavourableminingorenvironmentallegislationinIndiaingeneralcouldadverselyimpacttheoperationsoftheCompany.

FINANCIAL PERFORMANCE:

TheFinancialStatementsfortheyearended31stMarch,2019,havebeenpreparedinaccordancewiththeCompanies(IndianAccountingStandards)Rule,2015(IndAS)prescribedundersection133oftheCompaniesAct,2013andotherrecognisedaccountingpracticesandpoliciestotheextentapplicable.

ThenetincomefromoperationsstoodatRs.33,717.86LakhswithanegativebottomlineofRs.7,431.45LakhsafterprovidingfortotalexpensesofRs.39,528.06LakhsandexceptionalitemofRs.2,584.36Lakhs.AttheConsolidatedlevel,netIncomefromoperationsstoodatRs.62,136.58LakhswiththenegativebottomlineofRs.33,101.99LakhsafterprovidingfortotalexpensesofRs.68,149.15LakhsandexceptionalitemofRs.29,074.60Lakhs.

OUTLOOK:

YourCompany’srenewedfocusonBentoniteinwhichitenjoysanadmirableglobalstandinganditsforayintonewerbulkindustrialmineralssuchassilicaquartzoffersboth,acertaindegreeofresilienceandgrowthinthescaleofbusiness.YourCompanyhasalsoundertakeninitiativestoautomate&standardisecertainmanufacturing,packaging&logisticalprocessesdesignedtoincreaseefficiencyandrationalisecosts.

RISK & CONCERNS:

TheCompanycontinuesitseffortstoresuscitatethesettlementagreementofJuly2017regardingtheresolutionofclaimsfromtwoshippingcompaniesthatwasunilaterallyterminatedbythecounterpartyinSeptember,2018.Asapartofthesettlementagreement,theCompanyhadpledgedsharesof

51

twoofitswholly-ownedsubsidiariesandonejointventure,uponterminationthepledgewasinvokedbythecounterparty;therefore,therevivalofthesaidsettlementagreementisimportantfortheCompanytoregainownershipoftheshares.

Furthermore,theCompanycontinuestosuitablyattendtothedecreeexecutionpetitionfiledbyanothershippingcompanyinHon’bleBombayHighCourtforrecoveryofitsclaimsbasedontheforeignarbitrationaward.AnyorderagainsttheCompanyinthemattermayadverselyimpactthebusinessoftheCompany.

INTERNAL CONTROL SYSTEM AND ITS ADEQUACY:

YourCompanyiscommittedtoensurethatitsoperationsarecarriedoutwithinawell-definedinternalcontrolframework.Itpossessesasuitablemechanismforinternalcontrolscommensuratewithitssizeandnatureofbusiness.Thesecontrolshavebeendevelopedanddesignedinamannertoproperlymaintainaccountingrecordsforensuringreliabilityoffinancialreporting,monitoringofoperations,protectingassetsfromunauthorizeduseorlossesandcompliancewithregulations.

TheCompanyhasanAuditCommitteeofDirectorswhichdefines the scopeofwork,accountability, independenceand reporting responsibilitiesoftheInternalAuditfunction.Italsorecommendsimprovementsformonitoringandenhancingefficiencyofoperationsandensuringreliabilityoffinancialandoperationalinformation.TheAuditCommitteemonitorsandreviewssignificantinternalauditobservations,compliancewithaccountingstandards,riskmanagementandcontrolsystemsandprofitability.

TheCompanyhasengagedanIndependentAuditfirmofCharteredAccountantswithaviewtoensurethatthesystemofinternalcontrolandproceduresareproperlyadhered.Internalauditsareperformedtotesttheadequacyandeffectivenessoftheinternalcontrolslaiddownbymanagementandtosuggestimprovements.TheInternalAuditorsbasedontheirfindings/observationssubmitsInternalAuditReporttoAuditCommitteewhichalsoincluderecommendationstotheManagementforthecorrectiveactions,ifany.TheAuditCommitteeonregularbasisinteractswithstatutoryandinternalauditorstoensurethatinternalcontrolsystemsareoperatingeffectively.

TheperformanceoftheCompanyisregularlyreviewedbytheAuditCommitteeandtheBoardofDirectorstoensurethatitisinconsonancewiththeoverallcorporatepolicyandinlinewithpre-setobjectives.

RESEARCH & DEVELOPMENT:

Research&Development(R&D)isanintegralpartoftheCompany’soperation.YourCompany’sKnowledge&InnovationCenterthatspreadsoveralushfouracreInnovationComplexatBhuj,Gujarat,carriesoutextensiveresearchonproductandprocessdevelopment.TheCompany’sR&Dactivitiesfocusesonprovidingcost-effectiveandsustainablesolutionstosupportconsistentgrowthofbusiness.

Duringtheyearunderreview,theCompanycarriedoutR&DactivitiesinthefieldofSpecialtymineralproducts,IndustrialFunctionalMinerals,WhitePerformanceMinerals&Productsandsuchother.

ThebriefdetailsoftheR&Dactivitiesduringtheyeararegivenunder‘Annexure-C’formingpartoftheDirectors’Report.

HUMAN RESOURCES DEVELOPMENT:

YourCompanyrecognizestheimportanceofhumanresourcesinrealizingitsgrowthambitionsandbelievesinnurturingtalentwithintheorganizationtotakeupleadershippositions.TheCompanybelievesininvestinginpeopledevelopmentandprocessimprovements,alignedwithCompany’svisionandvalues.Companycontinuestoconductemployeetrainingsacrossseveralfunctionspertainingtotechnical,behavioural/general,health,safetyandenvironmentandISOstandards.‘ManagerialSkillDevelopment’trainingprogramsareconductedtoenhancethesoftskillsofpotentialmanagers.Aregularemployeeperformanceevaluationsystemisinplacetoevaluatetheindividualperformances,goalsettingsaswellasdeterminingtheirdevelopmentneedsandfuturepotentialindividualGoalsettingwithtwowaydiscussionsanddevelopmentalfeedbackbetweenemployeesandtheirmanagers.

TheCompanyhaswelldesignedanddocumentedpoliciesinplacethatpreventdiscriminationandharassment.ThereisaWhistleblowerPolicyaswellasPOSHPolicyinplacetodiscourageanywrongpracticesattheworkplace.

TheCompanyason31stMarch,2019has566employeeswhichconsistsofexperiencedstaffandexecutivesatdifferentlevels.

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Key Financial Ratios:

TheKeyFinancialRatiosforFY2018-19andFY2017-18,alongwithexplanationforsignificantchanges(changeof25%ormore)areasfollows:

Sr. No. Particulars 2018-19 2017-18 %change

1DebtorsturnoverRatio(Days)*AvgDebtors/Sale

77.00 160.00 51.76

2InventoryturnoverRatio(Days)Costofgoodssold/AvgInventory

258.00 257.00 (0.36)

3Interest coverage ratio(EBIT:ProfitbeforeExceptionalItemandtax+Interestonborrowing)

(4.13) (4.04) (2.18)

4Current ratioCurrentassets/CurrentLiability

0.33 0.41 19.72

5OperatingProfitMargin**(EBIT-otherIncome)/NetrevenuefromOperation

(0.14) (0.26) 45.03

6NetProfitMargin**(NetProfit/RevenuefromOperation)

(0.14) (0.22) 35.86

Note:1. ExceptionalitemsareexcludedfromNetprofit.2. DebtEquityratioisNil,becausethecompany’sworthisnegativeinFY18-19&17-18.

*Werealized59%fromourcustomersincludinggroupcompanydebtorsduringFY18-19whichresultedintoreductionofoutstandingreceivabledays.**TheincreaseinoperatingprofitandNetProfitMarginbecauseofeffectivecostreductioninManufacturingCostresultingintoincreaseinMargin.

CAUTIONARY STATEMENT:

StatementsintheManagementDiscussionandAnalysisdescribingtheCompany’sobjectives,projections,estimates,expectationsmaybe“forward-lookingstatements”withinthemeaningofapplicablesecuritieslawsandregulations.Actualresultscoulddiffermateriallyfromthoseexpressedorimplied.ImportantfactorsthatcouldmakeadifferencetotheCompany’soperationsinclude,amongothers,downtrendintheindustry,economicconditionsaffectingdemand/supplyandpriceconditionsinthedomesticmarketinwhichtheCompanyoperates,changesinpoliticalandeconomicenvironmentinIndia,changesintheGovernmentregulations,taxlawsandotherstatutes,litigationsandincidentalfactors.

ForandonBehalfoftheBoardofDirectors Sd/- CHETAN SHAH EXECUTIVE CHAIRMAN (DIN:00018960) Place:MumbaiDate:13thNovember,2019

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INDEPENDENTAUDITORS’REPORT

ToTheMembersofASHAPURA MINECHEM LIMITED[CompanyunderCorporateInsolvencyResolutionProcess(CIRP)]

ReportontheAuditoftheStandaloneFinancialStatements

QualifiedOpinion

We have audited the accompanying standalone financial statements of Ashapura Minechem Limited [Company under Corporate InsolvencyResolutionProcess (CIRP)] (“theCompany”)whichcomprise theBalanceSheetasat31stMarch2019, thestatementofprofitand loss (includingothercomprehensiveincome),thestatementofchangesinequityandthestatementofcashflowsfortheyearthenendedandnotestothefinancialstatements,includingasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformationinwhichareincludedthereturnsfortheyearendedonthatdateauditedbythebranchauditorsoftheCompany’sbrancheslocatedatChennaiandKodur(hereinafterreferredtoas“thestandalonefinancialstatements”).

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,except for the effects of the matters described in the Basis for Qualified Opinion paragraph below,theaforesaidstandalonefinancialstatementsgivetheinformationrequiredbytheCompaniesAct,2013(“theAct”)inthemannersorequiredandgiveatrueandfairviewinconformitywiththeIndianAccountingStandardsprescribedundersection133oftheActreadwiththeCompanies(IndianAccountingStandards)Rules,2015,asamended,(‘IndAS”)andtheotheraccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasat31stMarch2019,ofitslossandtotalcomprehensiveincome,itschangesinequityanditscashflowsfortheyearendedonthatdate.

BasisforQualifiedOpinion

AttentionisinvitedtoNoteNo.42regardingnonprovisionoftheadditionalliabilityaggregatingto`18,056.67lacstowardsinterestontheshippingclaimsandalongwithexchangeratedifferencethereon(cumulativeupto31stMarch2019:` 35,415.44lacs)Thelossfortheyearis,therefore,understatedby`18,056.67lacsandotherequityasatthebalancesheetdateisoverstatedby`35,415.44lacs.

WeconductedourauditofthestandalonefinancialstatementsinaccordancewiththeStandardsonAuditing(SAs)specifiedunderSection143(10)oftheAct.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheStandaloneFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeCodeofEthicsissuedbytheInstituteofCharteredAccountantsof India(ICAI) togetherwiththeethicalrequirementsthatarerelevanttoourauditof thestandalonefinancialstatementsundertheprovisionsoftheActandtheRulesmadethereunder,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheICAI’sCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropiniononthestandalonefinancialstatements.

EmphasisofMatter

TheHon.NationalCompanyLawTribunal-MumbaiBench,(“NCLT”)admittedaninsolvencyandbankruptcypetitionfiledbytheCompanyvideitsorderdated15thMarch,2019undertheInsolvencyandBankruptcyCode,2016(“theCode”)andtheCompanyis,therefore,nowunderCorporateInsolvencyResolutionProcess(CIRP).Consequently,TheBoardoftheDirectorsoftheCompanystandssuspendedandanInterimResolutionProfessional(“IRP”)hasbeenappointedbytheNCLT.Someofthecreditorshave,however,movedtotheHon.NationalCompanyLawAppellateTribunal(NCLAT)againsttheaforesaidorderpassedbytheNCLT.TheorderpassedbytheHon.NCLThasbeenstayedandispendingfordisposalbytheHon.NCLAT.

TheCompanyhasincurredlossesforpastfewyears,itsliabilitiesexceededtotalassetsanditsnetworthhasbeenfullyeroded.SincetheCompanyisunderCorporateInsolvencyResolutionProcess(CIRP)andalsoinviewofthecontinuingoperationsoftheCompany,thefinancialstatementshavebeenpreparedonagoingconcernbasis.

ByvirtueofadecreeexecutionorderpassedbytheHon.BombayHighcourton31stOctober2018,ashippingcompany,againstitsclaims,hastakensymbolicpossessionofcertainunencumberedassetsoftheCompany.Ouropinionisnotmodifiedinrespectofthesematters.

Key Audit Matters

Keyauditmattersarethosemattersthat,inourprofessionaljudgmentwereofmostsignificanceinourauditofthestandalonefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthestandalonefinancialstatementsasawhole,andinourformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Wehavedeterminedthemattersdescribedbelowtobethekeyauditmatterstobecommunicatedinourreport:

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Ashapura Minechem Limited(Company under Corporate InsolvenCy resolutIon proCess (CIrp)

Key Audit Matter How our audit addressed the Key Audit Matter

Corporate Insolvency Resolution Process

As stated above under the paragraph of Emphasis of Matter, theCompany is under Corporate Insolvency Resolution Process (“CIRP”)w.e.f.15thMarch2019.TheBoardofDirectorsoftheCompanystandssuspendedandInterimResolutionProfessional(IRP)isappointedbytheHon.NationalCompanyLawTribunal(“theNCLT”).

PendingthefinaloutcomeofCIRPandintheabsenceofthesupervisionbytheBoardofDirectors,themanagement’sreportingsystemtotheIRPbecomescriticalandtherefore,isidentifiedasKeyAuditMatter.

Ourauditproceduresincludedthefollowings:

We tested the operating effectiveness of the process of the reportingsystemby themanagement to the IRPsince thedateof theCompanybeingunderCIRP.

We assessed the relevant disclosures and Management InformationSystem Reports being submitted by the management to the IRP onperiodicbasis.

Assessmentoflitigationsandrelateddisclosureofcontingentliabilities

TheCompanyissubjecttolargenumberofvariousongoinglegalandtaxrelatedclaimsasstatedundernoteno.33–ContingentLiabilities.

Significant judgment is required to assess suchmatters to determinetheprobabilityofoccurrenceofmaterialoutflowofeconomicresourcesandwhetheraprovisionshouldberecognizedoradisclosureshouldbemade.Themanagementjudgmentisalsosupportedwithlegaladviceincertaincasesasconsideredappropriate.

Astheultimateoutcomesofthemattersareuncertainandmaterialinnature,itisconsideredtobeaKeyauditMatter.


Weunderstood,assessedandtestedtheoperatingeffectivenessofkeycontrols surrounding assessment of litigations and discussed with themanagement the recent developments and the status of themateriallitigations;

Weevaluatedmanagement’sassessmentbyunderstandingprecedentssetinsimilarcasesandassessedthereliabilityofthemanagement’spastestimatesandjudgments;

We reviewed the disclosures made by the Company in the financialstatementsinthisregard;We obtained representation letter from the management on theassessmentofthesematters.

ITsystemsandcontrolsoverfinancialreporting

The Company is functioning under SAP environment. The system isfully integrated financial accounting and reporting system. This newEnterpriseResourcePlanning(ERP)systemreplacestraditionalcontrols.We,therefore,identifiedITsystemandcontrolsoverfinancialreportingas a Key AuditMatter because its financial accounting and reportingsystemsarereliantonITsystemsandITcontrols.


We assessed the complexity of the IT environment and design andoperatingeffectivenessofITgeneralcontrolsoverprogramdevelopmentandchanges,accesstoprogramsanddata;

WealsoobtaineddetailsofSAPgovernanceframework,testedsamplecriticaltransactionsandinterfacecontrolsbetweenSAPenvironmentandotherauxiliarysystems.

InformationOtherthantheStandaloneFinancialStatementsandAuditor’sReportThereon

TheCompany’s BoardofDirectors is responsible for thepreparationof theother information. Theother information comprises the informationincludedintheBoard’sReportincludingAnnexurestoBoard’sReport,ManagementDiscussionandAnalysis,BusinessResponsibilityReport,CorporateGovernanceReport,Shareholder’sInformation,butdoesnotincludethefinancialstatementsandauditor’sreportthereon.TheBoard’sReportandotherinformationareexpectedtobemadeavailabletousafterthedateofthisauditor’sreport.

Ouropiniononthestandalonefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.

Inconnectionwithourauditofthestandalonefinancialstatements,ourresponsibilityistoreadtheotherinformationidentifiedabovewhenitbecomesavailableand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththestandalonefinancialstatementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.

Whenwereadtheaforesaidreportsandinformation,ifweconcludethatthereismaterialmisstatementtherein,wearerequiredtocommunicatethemattertothosechargedwithgovernance.

Management’sResponsibilityfortheStandaloneFinancialStatements

TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheActwithrespecttothepreparationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceincludingothercomprehensiveincome,changesinequityandcashflowsoftheCompanyinaccordancewiththeIndASandaccountingprinciplesgenerallyacceptedinIndia.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingoftheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectively forensuringtheaccuracyandcompletenessof theaccountingrecords,relevant to thepreparationandpresentationof thestandalonefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

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Inpreparingthestandalonefinancialstatements,managementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernsandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.

TheBoardofDirectorsisalsoresponsibleforoverseeingtheCompany’sfinancialreportingprocess.

Auditors’ResponsibilityfortheAuditoftheStandaloneFinancialStatements

Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthestandalonefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceishighlevelofassurance,butisnotaguaranteethatauditconductedinaccordancewithSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesestandalonefinancialstatements.

AspartofanauditinaccordancewithSAs,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:

• Identifyandassesstherisksofmaterialmisstatementsofthestandalonefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideoftheinternalcontrol.

• Obtainanunderstandingof internal financialcontrols relevant to theaudit inorder todesignauditprocedures thatareappropriate in thecircumstances.Undersection143(3)(i)oftheAct,wearealsoresponsibleforexpressingouropiniononwhethertheCompanyhasadequateinternalfinancialcontrolssysteminplaceandtheoperatingeffectivenessofsuchcontrols.

• Evaluate theappropriatenessofaccountingpoliciesusedand the reasonablenessofaccountingestimatesand relateddisclosuresmadebymanagement.

• Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasgoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthestandalonefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosure, andwhether thestandalonefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,and to communicate with them all relationships and othermatters thatmay reasonably be thought to bear on our independence, and whereapplicable,relatedsafeguards.

Fromthematterscommunicatedwith thosechargedwithgovernance,wedetermine thosematters thatwereofmostsignificance in theauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslawor regulationprecludespublicdisclosureabout thematterorwhen, inextremely rare circumstances,wedetermine thatamatter shouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.

Other Matters

WedidnotauditthefinancialstatementsoftwobranchesoftheCompanyatChennaiandKodurincludedinthestandalonefinancialstatementsoftheCompanywhosefinancialstatementsreflecttotalassetsof`396.39lacsasat31stMarch2019andtotalrevenuesof`23.34lacsfortheyearendedonthatdate,asconsideredinthestandalonefinancialstatements.Thefinancialstatementsofthesebrancheshavebeenauditedbythebranchauditorswhosereportshavebeenfurnishedtous,andouropinioninsofarasitrelatestotheamountsanddisclosuresincludedinrespectofthesebranches,isbasedsolelyonthereportofsuchbranchauditors.

Ouropinionisnotmodifiedinrespectofthismatter.

ReportonOtherLegalandRegulatoryRequirements

1 AsrequiredbytheCompanies(Auditor’sReport)Order,2016(“theOrder”)issuedbytheCentralGovernmentofIndiatermsofsub-section(11)ofsection143oftheAct,wegiveintheAnnexure–A,astatementonthemattersspecifiedinclause3and4oftheOrder,totheextentapplicable.

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2. Asrequiredbysection143(3)oftheAct,wereportthat:

a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposeofouraudit;

b) Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks;

c) TheBalanceSheet,theStatementofProfitandLossincludingOtherComprehensiveIncome,StatementofChangesinEquityandtheCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount;

d) Inouropinion,theaforesaidstandalonefinancialstatementscomplywiththeAccountingStandardsspecifiedundersection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014;

e) Onthebasisofwrittenrepresentationsreceivedfromthedirectorsason31stMarch2019,andtakenonrecordinthemeetingofIRP,

noneofthedirectorsisdisqualifiedason31stMarch2019,frombeingappointedasadirectorintermssection164(2)oftheAct;

f) WithrespecttotheadequacyofinternalfinancialcontrolsoverfinancialreportingoftheCompanyandoperatingeffectivenessofsuchcontrols,ourseparatereportinannexure–Bmaybereferred;

g) Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,remunerationpaidbytheCompanytoitsdirectorsduringtheyearisinaccordancewiththeprovisionsofsection197oftheAct.

h) WithrespecttotheothermatterstobeincludedintheAuditors’ReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationgiventous:

i) TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninitsstandalonefinancialstatements;

ii) TheCompanydidnothaveanylong-termcontractsincludingderivativescontractsforwhichtherewereanymaterialforeseeablelosses;

iii) TherewerenoamountsrequiredtobetransferredtotheInvestorEducationandProtectionFundbytheCompany.


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ANNEXURE–ATOTHEINDEPENDENTAUDITORS’REPORT(Referredtoinparagraph1under‘ReportonOtherLegalandRegulatoryRequirements’sectionofourreportofevendate)

Onthebasisofsuchchecksasweconsideredappropriateandintermsofinformationandexplanationsgiventous,westatethat:

1. Inrespectoffixedassets:

a. TheCompanyhasmaintainedproperrecordsshowingfullparticularsincludingquantitativedetailsandsituationoffixedassets.

b. Thefixedassetswerephysicallyverifiedbythemanagementatreasonableintervalsinaphasedmannerinaccordancewithaprogrammeofphysicalverification.Nomaterialdiscrepancieswerenoticedonsuchverification.

c. ThetitledeedsofimmovablepropertiesareheldinthenameoftheCompany.

2. Theinventorieswerephysicallyverifiedbythemanagementatreasonableintervalsduringtheyear.NomaterialdiscrepancieswerenoticedonsuchphysicalverificationcarriedoutbytheCompany.

3. TheCompanyhasgrantedunsecuredloanstocompaniescoveredintheregistermaintainedundersection189oftheAct.Sincenotermsandconditionsoftheseloansarestipulated,wecannotofferanycommentsastotherepaymentofprincipalamountoroverdueamounts,ifany.Thereceiptsofinterestontheseloansareregular.

4. TheCompanyhascompliedwithprovisionsofSection185and186oftheActinrespectofloans,investments,guaranteesandsecurities,totheextentapplicable.

5. TheCompanyhasnotacceptedanydepositswithinthemeaningoftheprovisionsofsection73to76oranyotherrelevantprovisionsoftheActandtherulesframedthereunderwithregardtothedepositsacceptedfromthepublic.NoorderhasbeenpassedbytheCompanyLawBoardorNationalCompanyLawTribunalorReserveBankofIndiaoranycourtoranyothertribunal.

6. WehavebroadlyreviewedthecostrecordsmaintainedbytheCompanypursuanttoSection148(1)oftheCompaniesAct,2013andareoftheopinionthat,primafacie,theprescribedcostrecordshavebeenmaintained.Wehave,however,notmadeadetailedexaminationofthecostrecordswithaviewtodeterminewhethertheyareaccurateorcomplete.

7. Inrespectofstatutoryandotherdues:

a. TheCompanyhasgenerallybeenregularindepositingundisputedstatutorydues,includingProvidentFund,EmployeesStateInsurance,IncomeTax,Cess,Goods&ServiceTaxandothermaterialstatutorydues,totheextentapplicable,withtheappropriateauthoritiesduringtheyear.Therearenoundisputedstatutoryduesoutstandingforaperiodofmorethansixmonthsfromthedatetheybecamepayable.

b. Therearenostatutorydues,whichhavenotbeendepositedonaccountofdisputeexceptforthefollowings:

NatureofDues Statute `inlacsRelevantYear

Forumwheredisputeispending

ValueAddedTax AndhraPradeshValueAddedTaxAct 16.12 2006-07to2009-10 TheCommercialTaxOfficer

ValueAddedTax GujaratValueAddedTaxAct 30.57 2009-10to2013-14 TheAssistantCommissionerofVAT

ServiceTax ServiceTaxRules 81.38 2008-09,2009-10 CESTAT–Ahmedabad

ServiceTax ServiceTaxRules 6.05 2008-09,2009-10 CESTAT–Ahmedabad

IncomeTax IncomeTaxAct141.79 2007-08,2008-09 GujaratHighCourt

1,181.92 2010-11 IncomeTaxAppellateTribunal

8. TheCompanyhasnotdefaultedinrepaymentofloansorborrowingtobanksexceptfortheduesofcertainbankstotheextenttheamountsstatedundernoteno.15.TheCompanyhasnotobtainedanyborrowingsfromanyfinancialinstitutionsorgovernmentorbywayofdebentures.

Lenderwisedetailsofthedefaultsareasunder:

BankBalanceason

31stMarch2019`inlacs

HDFCBank 2,140.00

*excludinginterest

9. TermsloansobtainedbytheCompanyhavebeenappliedforthepurposeforwhichtheywereobtained.TheCompanyhasnotraisedanymoney,duringtheyear,bywayofpublicoffer(includingdebtinstruments).

10. Tothebestofourknowledgeandbeliefandaccordingtotheinformationandexplanationsgiventous,nofraudonorbytheCompanyorontheCompanybyitsofficersoremployeeswasnoticedorreportedduringtheyear.

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11. ManagerialremunerationpaidorprovidedbytheCompanyduringtheyear is inaccordancewiththerequisiteapprovalsmandatedbytheprovisionsofSection197readwithScheduleVtotheAct.

12. SincetheCompanyisnotaNidhiCompany,theprovisionsofclause3(xii)oftheOrderarenotapplicabletotheCompany.

13. AlltransactionswiththerelatedpartiesareincompliancewithSection177and188oftheActandthedetailshavebeendisclosedinthefinancialstatementsasrequiredbytheapplicableaccountingstandards.

14. TheCompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorfullyorpartlyconvertibledebenturesduringtheyearunderreview.

15. TheCompanyhasnotenteredintoanynon-cashtransactionsduringtheyearwithdirectorsorpersonsconcernedwithhim.

16. TheCompanyisnotrequiredtoberegisteredunderSection45-IAoftheReserveBankofIndiaAct,1934.


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ANNEXURE–BTOTHEINDEPENDENTAUDITORS’REPORT(Referredtoinparagraph2(f)under‘ReportonOtherLegalandRegulatoryRequirements’sectionofourreportofevendate)

We have audited the internal financial controls over financial reporting of AshapuraMinechem Limited [Company under Corporate InsolvencyResolutionProcess(CIRP)](“theCompany”)asof31stMarch,2019inconjunctionwithourauditofthestandalonefinancialstatementsoftheCompanyfortheyearendedonthatdate.

Management’sResponsibilityforInternalFinancialControls

TheCompany’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreporting criteriaestablishedby theCompanyconsidering theessential componentsof internal control stated in theGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting (“theGuidanceNote”) issuedby the InstituteofCharteredAccountantsof India (“the ICAI”).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetocompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditors’ Responsibility

OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteandtheStandardsonAuditing,issuedbyICAIandprescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditof internal financialcontrolsoverfinancialreportingincludedobtaininganunderstandingof internalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditors’judgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.

MeaningofInternalFinancialControlsOverFinancialReporting

Acompany’s internal financial controlover financial reporting isaprocessdesigned toprovide reasonableassurance regarding the reliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat-

1. Pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;

2. Provide reasonableassurance that transactionsare recordedasnecessary topermitpreparationof financial statements inaccordancewithgenerally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance withauthorisationsofmanagementanddirectorsofthecompany;and

3. Providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

InherentLimitationsofInternalFinancialControlsOverFinancialReporting

Becauseoftheinherentlimitationsofinternalfinancialcontrolsoverfinancialreporting,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion,theCompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasat31stMarch,2019,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNote.


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BALANCESHEETASAT31STMARCH,2019(Indian`inlacs)

Particulars Note No.

As at 31st March 2019


ASSETS: Non-Current Assets Property,plantandequipment 2 17,302.81 19,317.69Capitalworkinprogress 2 733.38 480.32Investmentproperty 3 2,311.57 2,384.15Intangibleassets 4 72.51 108.11FinancialassetsInvestments 5 2,676.66 4,396.99Loans 6 2,358.04 2,073.67Otherfinancialassets 7 388.16 310.24Othernon-currentassets 8 1,342.29 1,842.08

27,185.42 30,913.25 Current Assets Inventories 9 13,178.37 13,964.84FinancialassetsInvestments 5 378.71 -Tradereceivables 10 7,097.18 7,167.94Cashandcashequivalents 11 1,832.52 636.34Otherbankbalances 12 347.67 -Loans 6 10.46 14.76Otherfinancialassets 7 - -Othercurrentassets 8 9,448.85 10,858.45

32,293.76 32,642.33 Total Assets 59,479.18 63,555.58

EQUITY AND LIABILITIES: EquityEquitysharecapital 13 1,739.72 1,739.72Otherequity 14 (41,887.87) (34,406.28)

(40,148.15) (32,666.56) Liabilities Non-current liabilities FinancialLiabilitiesBorrowings 15 1,442.00 2,354.00Otherfinancialliabilities 16 - -Provisions 17 922.78 914.09Othernon-currentliabilities 18 - 14,027.02

2,364.78 17,295.11 Current liabilities FinancialLiabilitiesBorrowings 15 2,140.00 2,540.00Tradepayables 19TotaloutstandingduesofMicroandSmallEnterprises 25.79 -TotaloutstandingduesofcreditorsotherthanMicroandSmallEnterprises 6,570.62 4,359.71Otherfinancialliabilities 16 26,911.12 24,137.94Othercurrentliabilities 18 61,456.32 47,732.24Provisions 17 158.70 157.14

97,262.55 78,927.03 Total Liabilities 59,479.18 63,555.58

Theaccompanyingnotesareintegralpartofthesefinancialstatements.

Asperourreportofevendate

For P A R K & COMPANY Sd/- Sd/-Chartered Accountants AJAY PHALOD ARUN CHADHA DesignateChiefExceutiveOfficer InterimResolutionProfessional

Sd/- Sd/- Sd/-PRASHANT VORA ASHISH DESAI SACHIN POLKE Partner Sr.GeneralManager-Accounts CompanySecretary&VicePresident

Mumbai Mumbai30thMay2019 30thMay2019

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STATEMENTOFPROFITANDLOSSFORTHEYEARENDED31STMARCH,2019(Indian`inlacs)

Particulars Note No. 2018-2019 2017-2018

REVENUE:

Revenuefromoperations(net) 20 33,717.86 23,918.84Otherincome 21 963.11 997.92

Total Revenue 34,680.97 24,916.76

EXPENSES: Costofmaterialsconsumed 22 10,555.72 8,932.70Purchasesoftradedgoods 3,546.62 8,574.94Changesininventories 23 1,462.11 (4,864.26)Employeebenefitsexpenses 24 3,059.39 3,093.43Financecosts 25 945.53 1,064.13Depreciationandamortisationexpenses 26 2,274.98 2,405.89Otherexpenses 27 17,683.71 11,071.17

TotalExpenses 39,528.06 30,278.00

Profit/(loss)beforeexceptionalitemsandtax (4,847.09) (5,361.24)

ExceptionalItems 32 (2,584.36) (1,512.20)

Profit/(loss)beforetax (7,431.45) (6,873.44)

TaxexpensesCurrenttax - -Deferredtax - -

Profit/(loss)fortheyear (7,431.45) (6,873.44)

Other Comprehensive income Itemsthatwillnotbereclassifiedtoprofitorloss a.Remeasurementsofdefinedbenefitplans (17.22) 89.53b.GainsonInvestmentsinequityinstrumentsclassifiedasFVOCI (32.92) -ItemsthatmaybereclassifiedtoprofitorlossOthercomprehensiveincomefortheyear (50.14) 89.53

TotalComprehensiveIncomefortheyear (7,481.59) (6,783.91)

Basicanddilutedearningpershare 28 (8.54) (7.90)Facevaluepershare 2.00 2.00


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CASHFLOWSTATEMENTFORTHEYEARENDED31stMARCH2019(Indian`inlacs)

Particulars 2018-2019 2017-2018

A CASHFLOWFROMOPERATINGACTIVITIES:

Netprofitbeforetax (7,431.45) (6,873.44)

Adjustmentsfor-

Depreciationandamortization 2,274.98 2405.89

Loss/(profit)onsaleofinvestment (26,480.71) (4.50)

Loss/(profit)onsaleofproperty,plant&equipment

(214.74) (2.22)

Dividend (142.47) (186.25)

Interest 459.33 417.68

Operatingprofitbeforeworkingcapitalchanges (24,103.61) 2,630.60

Adjustmentsfor-

Tradeandotherreceivables 1,692.96 3,665.51

Inventories 786.47 (5,195.10)

Tradeandotherpayables 4,717.18 1,338.33

Cashgeneratedfromoperations 7,196.61 (191.26)

Directtaxespaid (155.64) (17,062.63) (129.68) 2,309.66

NET CASH FROM OPERATING ACTIVITIES (24,494.08) (4,563.78)

B CASHFLOWFROMINVESTINGACTIVITIES:

Purchaseofproperty,plant&equipment (732.98) (1,052.27)

Purchase/saleofInvestments 27,789.42 19.97

Saleofproperty,plant&equipment 542.75 9.79

Dividendreceived 142.47 186.25

Interestreceived 212.59 348.31

NET CASH USED IN INVESTING ACTIVITIES 27,954.25 (487.95)

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C CASHFLOWFROMFINANCINGACTIVITIES:

Proceedsfromloansborrowed(net) (1,312.00) (912.00)

Loanslent/recovered (280.07) 6,709.79

Interestpaid (671.93) (765.99)

NET CASH USED IN FINANCING ACTIVITIES (2,264.00) 5,031.80

NetIncreaseinCashandCashEquivalents 1,196.17 (19.93)

Cashandcashequivalentsasatbeginningoftheyear

636.34 656.27

Cashandcashequivalentsasatendoftheyear 1,832.52 636.34





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STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31st MARCH, 2019

A. SHARE CAPITAL

(`inLacs)

Particulars 31st March 2019 31stMarch2018

Atthebeginningoftheyear 1,739.72 1,739.72

Changesinequitysharecapitalduringtheyear - -

Attheendoftheyear 1,739.72 1,739.72

B. OTHER EQUITY

(`inLacs)

Other Comprehensive Income

ParticularsCapital

RedemptionReserve

Retained earnings

Security premium

Net gain/(loss)onfairvalueofequity

instruments

Netgain/(loss)onfairvalueofdefinedbenefitplan

Total

As at 1st April, 2017 1.00 (45,753.65) 17,734.59 511.97 (116.29) (27,622.38)

Profitfortheyear - (6,873.44) - (6,873.44)

Othercomprehensiveincomefortheyear(netoftax) - - - 89.53 89.53

Asat31stMarch,2018 1.00 (52,627.09) 17,734.59 511.97 (26.76) (34,406.28)

Profitfortheyear - (7,431.45) - - - (7,431.45)

Othercomprehensiveincomefortheyear - - - (32.92) (17.22) (50.14)

As at 31st March, 2019 1.00 (60,058.54) 17,734.59 479.05 (43.98) (41,887.87)



For P A R K & COMPANY Sd/- Sd/-Chartered Accountants AJAY PHALOD ARUN CHACHA DesignateChiefExecutiveOffice InterimResolutionProfessional



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Notesformingpartofthefinancialstatementsfortheyearended31stMarch2019 COMPANY INFORMATION

Ashapura Minechem Limited [Company underCorporate Insolvency Resolution Process (CIRP)] (‘’theCompany’’) is a public limited companydomiciledinIndiaandincorporatedon19thFebruary,1982undertheprovisionsoftheCompaniesActapplicableinIndia.TheCompanyisengagedinthemining,manufacturingandtradingofvariousmineralsanditsderivativeproducts.TheregisteredofficeoftheCompanyislocatedatJeevanUdyogBuilding,3rdFloor,DNRoad,Fort,Mumbai–400001.TheequitysharesoftheCompanyarelistedonBombayStockExchange(BSE)aswellasNationalStockExchange(NSE).

TheCompanyisunderCorporateInsolvencyResolutionProcessw.e.f.15thMarch,2019andismanagedbytheInterimResolutionProfessional(“IRP”)asappointedbytheHon.NationalCompanyLawTribunal.(Refernoteno.39)

The standalone financial statements (‘the financial statements”) were authorized for issue as approved on 30th May, 2019 by the IRP and themanagementcommitteeconsistingoftheDesignateCEO,theCompanySecretary&VicePresidentandSr.GeneralManager-Accounts.1 BASIS OF PREPARATION, MEASUREMENT AND SIGNIFICANT ACCOUNTING POLICIES

1.1 Basisofpreparationandmeasurement: These financial statementsare the separate financial statementsof theCompany (also called standalone financial statements)prepared in

accordancewiththeIndianAccountingStandards(‘IndAS’)notifiedundersection133of theCompaniesAct,2013,readtogetherwiththeCompanies(IndianAccountingStandards)Rules,2015,asapplicable.

Thefinancialstatementshavebeenpreparedonaccrualandgoingconcernbasis.Theaccountingpoliciesareappliedconsistentlytoalltheperiodspresentedinthefinancialstatements.AllassetsandliabilitieshavebeenclassifiedascurrentornoncurrentaspertheCompany’snormaloperatingcycleandothercriteriaassetoutintheDivisionIIofScheduleIIItotheCompaniesAct,2013.TheCompanyadoptsoperatingcycle basedon theproject periodandaccordingly, all project relatedassets and liabilities are classified into current andnon-current. TheCompanyconsiders12monthsasnormaloperatingcycle.

TheCompany’sfinancialstatementsarereportedinIndianRupees,whichisalsotheCompany’sfunctionalcurrency,andallvaluesareroundedtothenearestlacsexceptotherwiseindicated.

1.2 ApplicationofNewAccountingPronouncements

TheCompanyhasappliedthefollowingIndASpreponementspursuanttoissuanceoftheCompanies(IndianAccountingStandards)AmendmentRules,2018.Theeffectisdescribedbelow:

a. TheCompanyhasadoptedIndAS115,RevenuefromContractwithCustomerswitheffectfrom1stApril,2018.

b. TheCompanyhaselectedtorecognizecumulativeeffectofinitiallyapplyingIndAS115retrospectivelyasanadjustmenttoopeningbalancesheetasat1stApril,2018onthecontractsthatarenotcompletedcontractasatthatdate.Therewasnoimpactofaboveontheopeningbalancesheetasat1stApril,2018andontheStatementofProfitandLossfortheyearended31stMarch,2019.

c. TheCompanyhasadoptedAppendixBtoIndAS21,ForeignCurrencyTransactionsandAdvanceConsiderationwitheffectfrom1stApril,2018retrospectivelytoallassets,expensesandincomeinitiallyrecognisedonorafter1stApril,2018andtheimpactonimplementationofAppendixisnotmaterial.

1.3 Significantaccountingpolicies:

a. SystemofaccountingTheCompany followsmercantile systemofaccountingand recognises incomeandexpenditureonanaccrualbasis except in caseof significantuncertainties.Thesefinancialstatementsarepreparedunderthehistoricalcostconventionunlessotherwiseindicated.

b. Key accounting estimates

Thepreparationofthefinancialstatements,inconformitywiththerecognitionandmeasurementprinciplesofIndAS,requiresthemanagementtomakeestimatesandassumptionsintheapplicationofaccountingpoliciesthataffect thereportedamountsofassets, liabilities, income,expensesanddisclosureofcontingentliabilitiesasatthedateoffinancialstatementsandtheresultsofoperationduringthereportedperiod.Althoughtheseestimatesarebaseduponmanagement’sbestknowledgeofcurrenteventsandactions,actualresultscoulddifferfromtheseestimateswhicharerecognisedintheperiodinwhichtheyaredetermined.

TheCompanybaseditsassumptionsandestimatesonparametersavailablewhenthefinancialstatementswereprepared.Existingcircumstancesandassumptionsaboutfuturedevelopments,however,maychangeduetomarketchangesorcircumstancesarisingthatarebeyondthecontroloftheCompany.Suchchangesarereflectedinthefinancialstatementsintheperiodinwhichchangesaremadeand,ifmaterial,theireffectsaredisclosedinthenotestothefinancialstatements.

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c. Property,plantandequipment

(i) Property,plantandequipmentarestatedathistoricalcostofacquisitionincludingattributableinterestandfinancecosts,ifany,tillthedateofacquisition/installationoftheassetslessaccumulateddepreciationandaccumulatedimpairmentlosses,ifany.

(ii) Subsequentexpenditurerelatingtoproperty,plantandequipmentiscapitalisedonlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheCompanyandthecostoftheitemcanbemeasuredreliably.Allotherrepairsandmaintenancecostsarechargedtothestatementofprofitandlossasincurred.

(iii) Thecostandrelatedaccumulateddepreciationareeliminatedfromthefinancialstatements,eitherondisposalorwhenretiredfrom

activeuseandtheresultantgainorlossarerecognisedinthestatementofprofitandloss. (iv) Capitalwork-in-progress,representingexpenditureincurredinrespectofassetsunderdevelopmentandnotreadyfortheirintendeduse,

arecarriedatcost.Costincludesrelatedacquisitionexpenses,constructioncost,relatedborrowingcostandotherdirectexpenditure.

(v) OntransitiontoIndAS,theCompanyhasoptedtocontinuewiththecarryingvaluesmeasuredunderthepreviousGAAPasat1stApril2016ofitsproperty,plantandequipmentandusethatcarryingvalueasthedeemedcostoftheproperty,plantandequipmentonthedateoftransitioni.e.1stApril2016.

(vi) TheCompanydepreciatesproperty,plantandequipmentonwrittendownvaluemethodexceptforbuilding,plant&machinery,laboratoryequipmentandexcavatorswheredepreciationisprovidedonstraightlinemethodovertheestimatedusefullifeprescribedinScheduleIIoftheCompaniesAct,2013fromthedatetheassetsarereadyforintendeduseafterconsideringtheresidualvalue.

(vii) Intangibleassetsmainlyrepresentimplementationcostforsoftwareandotherapplicationsoftwareacquired/developedforin-houseuse.Theseassetsarestatedatcost.Costincludesrelatedacquisitionexpenses,relatedborrowingcosts,ifany,andotherdirectexpenditure.

(viii) Itemsofstoresandsparesthatmeetthedefinitionofproperty,plantandequipmentarecapitalizedatcostanddepreciatedovertheirusefullife.Otherwise,suchitemsareclassifiedasinventories.

d. Investments properties

a) Propertywhichisheldforlong-termrentalorforcapitalappreciationorbothisclassifiedasInvestmentProperty.Investmentpropertiesaremeasuredinitiallyatcost,includingtransactioncosts.Subsequenttoinitialrecognition,investmentpropertiesarestatedatcostlessaccumulateddepreciationandaccumulatedimpairmentloss,ifany.

b) Investmentpropertiescurrentlycompriseofplotoflandsandbuilding.

c) Investmentpropertiesarederecognisedeitherwhentheyhavebeendisposedoforwhentheyarepermanentlywithdrawnfromuseandnofutureeconomicbenefitisexpectedfromtheirdisposal.Thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetisrecognisedinstatementofprofitandlossintheperiodinwhichthepropertyisderecognised.

e. Investmentsandfinancialassets

(i) Investmentsinsubsidiary,jointventureandassociatecompanies

Investmentsinsubsidiary,jointventureandassociatecompaniesisrecognisedatcostandnotadjustedtofairvalueattheendofeachreportingperiod.Costrepresentsamountpaidforacquisitionofthesaidinvestments.

TheCompanyassessesattheendofeachreportingperiod,ifthereisanyindicationthatthesaidinvestmentsmaybeimpaired.Ifso,theCompanyestimatestherecoverablevalueoftheinvestmentsandprovidesforimpairment,ifany,i.e.thedeficitintherecoverablevalueovercost.

Uponfirst-timeadoptionofIndAS,theCompanyhaselectedtomeasuretheseinvestmentsatthePreviousGAAPcarryingamountasitsdeemedcostonthedateoftransitiontoIndASi.e.,1stApril,2016.

(ii) Otherinvestmentsandfinancialassets

FinancialassetsarerecognisedwhentheCompanybecomesapartytothecontractualprovisionsoftheinstrument.

Oninitialrecognition,afinancialassetisrecognisedatfairvalue.Incaseoffinancialassetswhicharerecognisedatfairvaluethroughprofitand loss (FVTPL), its transactioncostsare recognised in thestatementofprofitor loss. Inothercases, the transactioncostsareattributedtotheacquisitionvalueoffinancialasset.

Financialassetsaresubsequentlyclassifiedmeasuredat– - amortisedcost - fairvaluethroughprofitandloss(FVTPL) - fairvaluethroughothercomprehensiveincome(FVOCI).

FinancialassetsarenotreclassifiedsubsequenttotheirrecognitionexceptifandintheperiodtheCompanychangesitsbusinessmodelformanagingfinancialassets.

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FinancialassetisderecognisedonlywhentheCompanyhastransferredtherightstoreceivecashflowsfromthefinancialasset.Wheretheentityhastransferredtheasset,theCompanyevaluateswhetherithastransferredsubstantiallyallrisksandrewardsofownershipofthefinancialasset.Insuchcases,financialassetisderecognised.

InaccordancewithIndAS109,theCompanyappliestheexpectedcredit loss(”ECL”)modelformeasurementandrecognitionofimpairmentlossonfinancial assets and credit risk exposures. TheCompany follows ‘simplifiedapproach’ for recognitionof impairment loss allowanceon tradereceivables.SimplifiedapproachdoesnotrequiretheCompanytotrackchangesincreditrisk.Rather,itrecognisesimpairmentlossallowancebasedonlifetimeECLateachreportingdate,rightfromitsinitialrecognition.Forrecognitionofimpairmentlossonotherfinancialassetsandriskexposure,theCompanydeterminesthatwhethertherehasbeenasignificantincreaseinthecreditrisksinceinitialrecognition.

f. Inventories

(i) Rawmaterialsandstoresandsparesarevaluedatweightedaveragecostincludingallchargesinbringingthematerialstothepresentlocation.

(ii) Finishedandsemi-finishedgoodsarevaluedatthecostplusdirectexpensesandappropriatevalueofoverheadsornetrealizablevalue,whicheverislower.

(iii) Obsolete,slowmovinganddefectiveinventoriesarewrittenoff/valuedatnetrealisablevalueduringtheyearasperpolicyconsistentlyfollowedbytheCompany.

g. Cashandcashequivalents

Cashandcashequivalentsinthebalancesheetcomprisesofbalancewithbanksandcashonhandandshorttermdepositswithanoriginalmaturityofthreemonthorless,whicharesubjecttoinsignificantrisksofchangesinvalue.

h. Trade receivables

Areceivableisclassifiedasatradereceivableifitisinrespectoftheamountdueonaccountofgoodssoldorservicesrenderedinthenormalcourseofbusiness.Tradereceivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasurednetofanyexpectedcreditlosses.

i. Equityinstruments: AnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheCompanyafterdeductingallofitsliabilities.Equity

instrumentswhichareissuedforcasharerecordedattheproceedsreceived,netofdirectissuecosts.

j. Financial liabilities

(i) FinancialliabilitiesarerecognisedwhentheCompanybecomesapartytothecontractualprovisionsoftheinstrument.Financialliabilitiesareinitiallymeasuredattheamortisedcostunlessatinitialrecognition,theyareclassifiedasfairvaluethroughprofitandloss.

(ii) FinancialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheEffectiveInterestRate(EIR)method.Financialliabilitiescarried

atfairvaluethroughprofitandlossaremeasuredatfairvaluewithallchangesinfairvaluerecognisedinthestatementofprofitandloss.

(iii) Financialliabilitiesarederecognisedwhentheobligationspecifiedinthecontractisdischarged,cancelledorexpires.

k. Trade payables

Apayableisclassifiedasatradepayableifitisinrespectoftheamountdueonaccountofgoodspurchasedorservicesreceivedinthenormalcourseofbusiness.TheseamountsrepresentliabilitiesforgoodsandservicesprovidedtotheCompanypriortotheendofthefinancialyearwhichareunpaid.Theseamountsareunsecuredandareusuallysettledasperthepaymentterms.Tradeandotherpayablesarepresentedascurrentliabilitiesunlesspaymentisnotduewithin12monthsafterthereportingperiod.

l. Revenue recognition

(i) RevenuefromcontractwithcustomersisrecognisedwhentheCompanysatisfiesperformanceobligationbytransferringpromisedgoodsandservicestothecustomer.Performanceobligationsaresatisfiedatapointoftimeoroveraperiodoftime.Performanceobligationssatisfiedoveraperiodoftimearerecognisedasperthetermsofrelevantcontractualagreements/arrangements.Performanceobligationsaresaidtobesatisfiedatapointoftimewhenthecustomerobtainscontrolsoftheasset.

(ii) Revenueismeasuredbasedontransactionprice,whichisthefairvalueoftheconsiderationreceivedorreceivable,statednetofdiscounts,returnandgoods&servicetax.Transactionpriceisrecognisedbasedonthepricespecifiedinthecontract,netofdiscounts.

(iii) Domesticsalesareaccountedforondispatchfromthepointofsalecorrespondingtotransferofsignificantrisksandrewardsofownershiptothebuyer.

(iv) Exportsalesarerecognisedonthedateofthemate’sreceipt/shippedonboardsignifyingtransferofrisksandrewardsofownershiptothebuyeraspertermsofsalesandinitiallyrecordedattherelevantexchangeratesprevailingonthedateofthetransaction.

(v) Export incentivesareaccounted foronexportofgoods if theentitlements canbeestimatedwith reasonableaccuracyandconditionsprecedenttoclaimarereasonablyexpectedtobefulfilled.

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(iv) Revenueinrespectofotherincomeisrecognisedonaccrualbasis.However,wheretheultimatecollectionofthesamelacksreasonablecertainty,revenuerecognitionispostponedtotheextentofuncertainty.

m. Indirecttaxes

Exciseduty(applicabletill30thJune2017)inrespectofgoodsmanufacturedbytheCompanyisaccountedforatthetimeofremovalofgoodsfromfactoryforsale.

PurchasesofgoodsandfixedassetsareaccountedfornetofGoodsandServiceTax(GST)inputcredits.Customdutypaidonimportofmaterialsisdealtwithinrespectivematerialaccounts.

n. Miningexpenses

Expensesincurredonminingincludingremovalofoverburdenofminesarechargedtothestatementofprofit&lossasminingcostonthebasisofquantityofmineralsminedduringtheyear,overburdenofremovalandminingbeingcarriedoutconcurrentlyandrelativelywithinashortperiodoftime.Miningrestorationexpensesareannuallyreviewedandprovidedfor.

o. Researchanddevelopmentexpensesandreceipts:

Revenueexpenditureonresearchanddevelopment ischargedagainst theprofit fortheyear inwhichit is incurred.Capitalexpenditureonresearchanddevelopmentisshownasanadditiontothefixedassetsandisdepreciatedonthesamebasisasotherfixedassets.Receiptsofresearch&developmentcentreoftheCompanyareaccountedforasrevenuereceipts.

p. Foreign currency transactions

(i) Items included in the financial statementsaremeasuredusing the currencyofprimaryeconomicenvironment inwhich the companyoperates(“thefunctionalcurrency”).ThefinancialstatementsarepresentedinIndianRupee(INR),whichisthecompany’sfunctionalandpresentationcurrency.

(ii) Foreigncurrencytransactionsareinitiallyrecordedinthereportingcurrencyatforeignexchangerateonthedateofthetransaction.

(iii) Monetary items of current assets and current liabilities denominated in foreign currencies are reported using the closing rate at thereportingdate.Non-monetaryitemswhicharecarriedintermsofhistoricalcostdenominatedinaforeigncurrencyarereportedusingtheexchangerateatthedateofthetransaction.

(iv) Thegainorlossondecrease/increaseinreportingcurrencyduetofluctuationsinforeignexchangeratesarerecognisedinthestatementofprofitorloss.

q. Employeebenefitexpenses

(i) Contributionstodefinedcontributionschemessuchasprovidentfund,employees’stateinsurance,labourwelfarefundetc.arechargedasanexpensebasedontheamountofcontributionrequiredtobemadeasandwhenservicesarerenderedbytheemployees.ThesebenefitsareclassifiedasdefinedcontributionschemesastheCompanyhasnofurtherobligationsbeyondthemonthlycontributions.

(ii) TheCompanyprovidesforgratuitywhichisadefinedbenefitplan,theliabilitiesofwhicharedeterminedbasedonvaluations,asatthereportingdate,madebyanindependentactuaryusingtheprojectedunitcreditmethod.Re-measurementcomprisingofactuarialgainsandlosses,inrespectofgratuityarerecognisedintheothercomprehensiveincomeintheperiodinwhichtheyoccur.TheclassificationoftheCompany’sobligationintocurrentandnon-currentisaspertheactuarialvaluationreport.

(iii) Theemployeesareentitledtoaccumulateleavesubjecttocertainlimits,forfutureencashmentandavailment,asperthepolicyoftheCompany. The liability towards suchunutilised leaveasat theendof eachbalance sheet date is determinedbasedon independentactuarialvaluationandrecognisedinthestatementofprofitandloss.

r. Leases

Aleaseisclassifiedattheinceptiondateasafinanceleaseoranoperatinglease.Leasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownershiptothelessee.Allotherleasesareclassifiedasoperatingleases.TheCompanyhasidentifiedallitsleasesasoperatingleases.

a) Assetstakenonoperatinglease Operatingleasepaymentsarerecognisedasanexpenseinthestatementofprofitandlossonastraight-linebasisovertheleaseterm.

b) Assets given on operating lease Assetssubjecttooperatingleasesareincludedinfixedassets.Rentalincomefromoperatingleasesisrecognisedinthestatementofprofit

andlossonastraight-linebasisovertheleaseterm.Costsincludingdepreciationarerecognisedasanexpenseinthestatementofprofitandloss.

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s. Borrowing costs

BorrowingcostsconsistofinterestandothercoststhattheCompanyincursinconnectionwiththeborrowingoffunds.Also,theeffectiveinterestrateamortisationisincludedinfinancecosts.Borrowingcostsrelatingtoacquisition,constructionorproductionofaqualifyingassetwhichtakessubstantialperiodoftimetogetreadyforitsintendeduseareaddedtothecostofsuchassettotheextenttheyrelatetotheperiodtillsuchassetsarereadytobeputtouse.Allotherborrowingcostsareexpensedinthestatementofprofitandlossintheperiodinwhichtheyoccur.

t. Impairmentofnonfinancialassets

Asateachreportingdate,theCompanyassesseswhetherthereisanindicationthatanon-financialassetmaybeimpairedandalsowhetherthereisanindicationofreversalofimpairmentlossrecognisedinthepreviousperiods.Ifanyindicationexists,orwhenannualimpairmenttestingforanassetisrequired,theCompanydeterminestherecoverableamountandimpairmentlossisrecognisedwhenthecarryingamountofanassetexceedsitsrecoverableamount.Iftheamountofimpairmentlosssubsequentlydecreasesandthedecreasecanberelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognised,thenthepreviouslyrecognisedimpairmentlossisreversedthroughthestatementofprofitandloss.

u. Taxesonincome

Income taxexpensecomprisescurrent taxexpenseand thedeferred taxduring theyear.Currentanddeferred taxesare recognised in thestatementofprofitandloss,exceptwhentheyrelatetoitemsthatarerecognisedinothercomprehensiveincomeordirectlyinequity,inwhichcase,thecurrentanddeferredtaxarealsorecognisedinothercomprehensiveincomeordirectlyinequity,respectively.

CurrentincometaxisrecognisedbasedontheestimatedtaxliabilitycomputedaftertakingcreditforallowancesandexemptionsinaccordancewiththeIncomeTaxAct,1961.Currentincometaxassetsandliabilitiesaremeasuredattheamountexpectedtoberecoveredfromorpaidtothetaxationauthorities.Thetaxratesandtaxlawsusedtocomputetheamountarethosethatareenactedorsubstantivelyenacted,atthereportingdate.

Deferredtaxisrecognisedontemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesinthefinancialstatementsandthecorrespondingtaxbasesusedinthecomputationoftaxableprofit.

Deferredtaxliabilitiesaregenerallyrecognisedforalltaxabletemporarydifferences.Deferredtaxassetsarerecognizedforunusedtaxlosses,unusedtaxcreditsanddeductibletemporarydifferencestotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichtheycanbeused.Incaseofuncertaintyofreversalofthedeferredtaxassetsorwhenitisnolongerprobablethatsufficienttaxableprofitswillbeavailableintheforeseeablefuture,deferredtaxassets,asamatterofprudence,arenotrecognised.

The carryingamountofdeferred tax is reviewedateach reportingdateandmeasuredat the tax rates thatareexpected tobeapplied totemporarydifferenceswhentheyreverse,usingtaxratesenactedorsubstantivelyenactedatthereportingdate.ThemeasurementofdeferredtaxrefiectsthetaxconsequencesthatwouldfollowfromthemannerinwhichtheCompanyexpects,atthereportingdate,torecoverorsettlethecarryingamountofitsassetsandliabilities.

v. Provisions and contingent liabilities

TheCompanycreatesaprovisionwhenthereispresentobligation,legalorconstructive,asaresultofpasteventsthatprobablyrequiresanoutfiowofresourcesandareliableestimatecanbemadeoftheamountofobligation.

Contingentliabilitiesaredisclosedinrespectofpossibleobligationsthatarisefrompastevents,whoseexistencewouldbeconfirmedbytheoccurrenceornon-occurrenceofoneormoreuncertainfutureevents.Contingentassetsareneitherrecognisednordisclosedinthefinancialstatements.

w. Earnings Per Share

(i) Basic earnings per share is computed by dividing the net profit or loss for the period attributable to the equity shareholders of theCompanybytheweightedaveragenumberofequitysharesoutstandingduringtheperiod.Theweightedaveragenumberofequitysharesoutstandingduringtheperiodandforallperiodspresentedisadjustedforevents,suchasbonusshares,otherthantheconversionofpotentialequitysharesthathavechangedthenumberofequitysharesoutstanding,withoutacorrespondingchangeinresources.

(ii) Forthepurposeofcalculatingdilutedearningpershare,thenetprofitorlossfortheperiodattributabletotheequityshareholdersandtheweightedaveragenumberofequitysharesoutstandingduringtheperiodisadjustedfortheeffectsofalldilutivepotentialequityshares.

x. Offsettinginstruments

Financialassetsandliabilitiesareoffsetandthenetamountreportedinthebalancesheetwhenthereisalegallyenforceablerighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasisorrealisetheassetandsettletheliabilitysimultaneously.Thelegallyenforceablerightmustnotbecontingentonfutureeventsandmustbeenforceableinthenormalcourseofbusinessandintheeventofdefault,insolvencyorbankruptcyoftheCompanyorthecounterparty.

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y. Eventsafterthereportingperiod

Adjustingeventsareeventsthatprovidefurtherevidenceofconditionsthatexistedattheendofthereportingperiod.Thefinancialstatementsareadjustedforsucheventsbeforeauthorisationforissue.

Non-adjustingeventsareeventsthatareindicativeofconditionsthataroseafterendofthereportingperiod.Non-adjustingeventsafterthereportingdatearenotaccounted,butdisclosed.

z. Segment reporting

Operatingsegmentsarereportedinamannerconsistentwiththeinternalreportingprovidedtotheoperatingdecisionmakers.ThedecisionmakersregularlymonitorandreviewtheoperatingresultofthewholeCompany.TheactivitiesoftheCompany,intheopinionofthemanagement,primarilyfallsunderasinglesegmentof“Mineralsanditsderivativeproducts”inaccordancewiththeIndAS108“OperatingSegments”.

aa. ChangesinAccountingStandardsandrecentaccountingpronouncements

OnMarch30,2019theMinistryofCorporateAffairsissuedtheCompanies(IndianAccountingStandards)(Amendments)Rules,2019,notifyingIndAS116onleases.IndAS116wouldreplacetheexistingleasesstandardIndAS17.Thestandardsetsouttheprinciplesforrecognition,measurement, presentation and disclosures for both parties to a contract, i.e. the lessee the lessor. Ind AS 116 introduces a single leaseaccountingmodel and requires a lessee to recognise assets and liabilities for all leaseswith a term ofmore than 12months, unless theunderlyingassetisoflowvalue.Currentlyforoperatingleaserentalsarechargedtothestatementofprofitandloss.TheCompanyiscurrentlyevaluatingtheimplicationsofIndAS116ontheFinancialStatements.

TheCompanies(IndianAccountingStandards)AmendmentRules,2019alsonotifiedamendmentstothefollowingaccountingstandards.TheamendmentswouldbeeffectivefromApril1,2019.

• IndAS12IncomeTax • IndAS23BorrowingCost • IndAS103BusinessCombinations • IndAS111JointArrangements • IndAS109FinancialInstruments • IndAS19EmployeeBenefitsTheCompanyisintheprocessofevaluatingtheimpactofsuchamendments.

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Note 2Property,plantandequipment

(Indian`inlacs)

Particulars Land Buildings Plant & Equipment Barges Office

Equipment Furniture & Fixtures Vehicles Total

Gross carrying value

As at 1st April, 2017 1,489.52 4,836.72 2,3696.41 75.98 963.56 1,375.70 779.60 33,217.50

Additions 30.56 294.73 327.65 - 40.52 37.83 33.06 764.36

Disposals/transfer - - (39.71) - (3.26) (1.10) (36.38) (80.45)

Asat31stMarch,2018 1,520.08 5,131.46 984.36 75.98 1,000.82 1,412.43 776.28 33901.41

Additions 1.23 156.57 278.06 - 28.23 8.47 1.46 474.02

Disposals - - (878.66) - (3.60) - (0.82) (883.08)

As at 31st March, 2019 1,521.31 5,288.02 23,383.76 75.98 1,025.45 1,420.89 776.92 33492.34

Accumalated depreciation

As on 1st April, 2017 - 517.02 9,298.96 73.54 818.74 986.53 690.73 12,385.51

Depreciationcharged - 119.20 1,958.39 - 65.20 103.72 24.59 2,271.10

Disposals/transfer - - (33.70) - (3.04) (1.06) (35.09) (72.89)

Asat31stMarch,2018 - 636.21 11,223.65 73.54 880.90 1,089.18 680.24 14,583.72

Depreciationcharged - 125.75 1,889.22 - 46.74 79.61 19.56 2,160.88

Disposals - - (550.99) - (3.30) - (0.78) (555.06)

As at 31st March, 2019 - 761.96 12,561.88 73.54 924.34 1,168.78 699.02 16,189.53

Net carrying value

Asat31stMarch,2018 1,520.08 4,495.24 12,760.71 2.44 119.92 323.25 96.04 19,317.69

As at 31st March, 2019 1,521.31 4,526.06 10,821.87 2.44 101.11 252.11 77.90 17,302.81

CapitalWorkinProgres

Asat31stMarch,2018 - 85.70 393.79 - - 0.83 - 480.32

As at 31st March, 2019 - 87.02 646.36 - - - - 733.38

72


Note 3 Investment Properties

(Indian`inlacs))

Particulars Land Building Total


As at 1st Aril, 2017 229.38 2794.10 3023.48

Additions/Transfer - 9.03 9.03

Disposals - - -

Asat31stMarch,2018 229.38 2803.13 3032.51

Additions/Transfer - - -

Disposals - - -

As at 31st March, 2019 229.38 2803.13 3032.51


As at 1st Aril, 2017 - 576.06 576.06

Depreciationcharged/Transfer - 72.30 72.30

Disposals - -

Asat31stMarch,2018 - 648.35 648.35

Depreciationcharged/Transfer - 72.58 72.58

Disposals - - -

As at 31st March, 2019 - 720.94 720.94

Net Carrying Amount

Asat31stMarch,2018 229.38 2154.78 2384.15

As at 31st March, 2019 229.38 2082.20 2311.57

i)Amountrecognisedinprofitorlossforinvestmentproperties (Indian`inLacs)

Particulars 31st March2019

31st March2018

Rental income 226.87 198.08

Directoperatingexpenses - -

Gainfrominvestmentpropertiesbeforedepreciation 226.87 198.08

Depreciation 72.58 72.30

Gainfrominvestmentproperties 154.29 125.78

ii)Contractualobligations

Therearenocontractualobligationstopurchase,constructordevelopinvestmentproperty.

iii)FairValue

Thecarryingvalueof the investmentpropertiesat theendof theyearhavebeendeemed tobe the fair valuedeterminedon thebasisof thejudgementofthemanagement.

73

Note 4 Intangible assets

(Indian`inlacs)

Particulars Minning Lease

ComputerSoftware Total

Grosscarryingvalue(atdeemedcost)

As at 1st April, 2017 1.11 224.30 225.41

Additions - 20.07 20.07

Asat31stMarch,2018 1.11 244.36 245.47

Additions - 5.91 5.91

As at 31st March, 2019 1.11 250.27 251.38


As on 1st April, 2017 - 74.87 74.87

Amortisation - 62.50 62.50

Asat31stMarch,2018 - 137.36 137.00


Disposals - - -

As at 31st March, 2019 - 178.88 178.88

Net carrying value

Asat31stMarch,2018 1.11 107.00 108.11

As at 31st March, 2019 1.11 71.40 72.51

Note No. 5 Non-current Investment(Indian`inlacs)

Particulars 31st March 31st March2019 2018

a.Investmentsvaluedatcost,fullypaidup

Investments in subsidiaries in India AshapuraInternationalLimited* - 327.27-(3,000,000)EquitySharesof`10eachfullypaid-up

AshapuraClaytechLimited 371.00 371.003,560,000EquitySharesof`10eachfullypaid-up

PrashanshaCeramicsLimited 147.00 147.00700,000EquitySharesof`10eachfullypaid-up

BombayMineralsLimited* 498.00 961.54113,707(218,080)EquitySharesof`10eachfullypaid-up

AshapuraAluminumLimited 5.00 5.0050,000EquitySharesof`10eachfullypaid-up

AshapuraConsultancyServicesPrivateLimited 1.00 1.0010,000EquitySharesof`10eachfullypaid-up

AshapuraResourcesPrivateLimited 1.00 1.0010,000EquitySharesof`10eachfullypaid-up

ShardaConsultancyPrivateLimited 1.00 1.0010,000EquitySharesof`10eachfullypaid-up

PeninsulaPropertyDevelopersPrivateLimited 1.00 1.0010,000EquitySharesof`10eachfullypaid-up

74


(Indian`inlacs) Particulars 31st March 31st March

2019 2018

1,025.00 1,815.81 Investments in subsidiaries outside India AshapuraMinechemUAEFZE 1,123.13 1,123.1368EquitySharesofAED1,50,000eachfullypaid-up

1,123.13 1,123.13

InvestmentsinjointventuresinIndiaAshapuraPerfoclayLimited** - 896.66-(8,966,590)EquitySharesof`10eachfullypaid-up

- 896.66

InvestmentsinjointventuresoutsideIndiaAshapuraMidgulfNV(AMCOL)Antwerp 17.76 17.7630,750EquitySharesofEuro1eachfullypaid-up

17.76 17.76 Investments in associates in India AshapuraArcadiaLogisticsPrivateLimited 5.50 5.5055,000EquitySharesof`10eachfullypaid-up

5.50 5.50

b.InvestmentsinequitysharesinotherscarriedatfairvaluethroughOCI,fullypaidup(Unquoted)

ShantilalMultiportInfrastructurePrivateLimited 503.92 536.97186,285EquitySharesof`10eachfullypaid-up

AshapuraInternationalLimited 0.09 -20EquitySharesof`10eachfullypaid-up

AshapuraPerfoclayLimited 0.05 -50EquitySharesof`10eachfullypaid-up

504.06 536.97

c. Investment valued at cost

NationalSavingsCertificates 1.21 1.16(underlienwithsalestax/miningauthorities)

1.21 1.16

Total non-current investments 2,676.66 4,396.99

Current Investment

a.InvestmentinMutualfund

17,706.448unitsofBarodaLiquidFundof`10each 378.71 -

Total current investments 378.71 -

*ceasedtobesubsidiaryw.e.f.19thSeptember,2018**ceasedtobejointventurew.e.f.19thSeptember,2018Refernoteno.41

Aggregateamountofqoutedinvestments 378.71 -Marketvalueofqoutedinvestments 378.71 -Aggregateamountofunqoutedinvestments 2,676.66 4,396.99

75

Note6Loans

(Indian`inlacs) Non-current Current

Particulars 31st March 31st March 31st March 31st March2019 2018 2019 2018

Unsecured, considered good

Loanstoawholly-ownedsubsidiarycompany 2,354.99 2,067.95 - -Employeeloans 3.05 5.72 10.46 14.76Otherloans - - - -

Total loans 2,358.04 2,073.67 10.46 14.76

Particularsof loansandadvances inthenatureof loansasrequiredbyregulation34(3)and53(f)of theSEBI (ListingObligationsandDisclosureRequirements)Regulations,2015andScheduleVtotheCompaniesAct.

Nameoftheentity Outstanding balances Maximumbalanceoutstanding during the year

31st March 2019 31stMarch2018 31st March 2019 31stMarch2018

Subsidiaries:

AshapuraMinechem(UAE)FZE 2,354.99 2,067.95 2,354.99 2,354.99

2,354.99 2,067.95 2,354.99 2,354.99

Note 7 Otherfinancialassets

(Indian`inlacs)

Non-current Current

Particulars 31st March 31st March 31st March 31st March

2019 2018 2019 2018

Termdepositswithmaturityofmorethan12months* 388.16 310.24 - -

Totalotherfinancialassets 388.16 310.24 - -

*underlienwithbanksagainstletterofcreditsandbankguarantees

76


Note 9 Other assets(Indian`inlacs)

Non-current Current Particulars 31st March 31st March 31st March 31st March

2019 2018 2019 2018

Tradeadvancestosuppliers - - 7,752.35 8,857.23Less:Provisionfordoubtfuladvances - - 2,485.82 2,294.96

5,266.53 6,562.27Capitaladvances 265.03 314.11 - -Securitydeposits 1,064.96 1,497.41 - -Incometaxassets(net) - - 994.69 839.05(refernoteno.8.1)Employeeadvances - - 59.09 32.58Prepaidexpenses - - 100.55 138.92Claimsreceivables - - 529.48 177.40Employeebenefitassets 12.30 30.56 - -Inputcreditreceivables - - 416.45 821.95Otheradvances - - 2,082.06 2,286.28

Total other assets 1,342.29 1,842.08 9,448.85 10,858.45

Security deposits:Towardslandandpremisestodirectors,firmsandcompaniesinwhichsomeofthedirectorsareinterested

45.00 57.00 - -

- -Towardspremisestosubsidiarycompanies 50.00 440.00 - -

Towardspremisestoerstwhilesubsidiarycompany 1.00 1.00

Trade advances:-Tosubsidiarycompanies - - 3,239.40 4,389.90-Tojointventuresandassociates - - 708.02 529.04

Note8.1Incometaxassets(net)(Indian`inlacs)


Incometaxassets(net)

Thefollowingtableprovidesthedetailsofincometaxassetsandliabilities:

Incometaxassets 994.69 839.05Currentincometaxliabilities - -

Net balance 994.69 839.05

Thegrossmovementinthecurrenttaxasset/(liability)Netcurrentincometaxassetatthebeginning 839.05 709.37Incometaxpaid(netofrefunds) 155.64 129.68Currentincometaxexpense - -Incometaxonothercomprehensiveincome - -Netcurrentincometaxassetattheend 994.69 839.05

77

Note 9 Inventories(Indian`inlacs)


Rawmaterials 1,887.24 1,322.29Semifinishedgoods 2,852.29 3,758.05Finishedgoods 2,112.02 1,854.68Stock-in-trade 5,505.74 6,319.43Stores&spares 594.25 499.27Pakingmaterials 226.83 211.12

Total inventories 13,178.37 13,964.84

Note 10 Trade Receivables (Unsecured,consideredgoodunlessotherwisestated)


2019 2018

Tradereceivables 8,366.07 8,335.59

Less:Provisionfordoubtfuldebts (1,268.89)

(1,167.65)

Total trade receivables 7,097.18 7,167.94

Aboveincludesduefromrelatedparty-Subsidiaries 113.20 985.39-Jointventures&associates 2,832.82 3,814.01

Note 11 Cashandcashequivalents(Indian`inlacs)


Balanceswithbanks 1,789.92 602.58Cashonhand 42.60 33.76

Totalcashandcashequivalents 1,832.52 636.34

Note 12 Otherbankbalances


2019 2018

Marginmoneydeposits* 347.67 -Othertermdeposits - -

Totalotherbankbalances 347.67 -

*underlienagainstguaranttestominingauthoritiesandletterofcredits

78


Note 13 Equitysharecapital

(Indian`inlacs)

Particulars 31st March2019

1st April2018

Authorised

125,000,000equitysharesof`2each 2,500.00 2,500.00

6,500,000preferencesharesof`100each 6,500.00 6,500.00

9,000.00 9,000.00

Issued, Subsribed and Paid up

86,986,098equitysharesof`2each 1,739.72 1,739.72

Totalequitysharecapital 1,739.72 1,739.72

Sharesheldbyeachshareholderholdingmorethan5percentshares

NameofShareholderAs at 31st March 2019 Asat31stMarch2018

Nos. %ofholding Nos. %ofholding

Mr.ChetanNavnitlalShah 13,543,814 15.57 13,543,814 15.57

Mrs.DinaChetanShah 9,202,360 10.58 9,202,360 10.58

AshapuraIndustrialFinanceLimited 8,088,000 9.30 8,088,000 9.30

AlbulaInvestmentFundLimited 7,857,345 9.03 7,857,345 9.03

Rights,preferencesandrestrictionsattachedtoshares

Thecompanyhasoneclassofequityshareshavingafacevalueof`2eachrankingparipasuinallrespectincludingvotingrightsandentitlementtodividend.Eachholderofequitysharesisentitledtoonevotepershare.Dividendproposedbytheboardofdirectorsandapprovedbytheshareholdersintheannualgeneralmeetingispaidtotheshareholders.

Note14OtherEquity (Indian`inlacs) Particulars 31st March 31st March

2019 2018

Capital Redemption ReserveBalanceatthebeginningoftheyear 1.00 1.00Additionsduringtheyear - -Balanceattheendoftheyear 1.00 1.00

Securities Premium AccountBalanceatthebeginningoftheyear 17,734.59 17,734.59Add:transferredfromretainedearnings - -Balanceattheendoftheyear 17,734.59 17,734.59

Retained earningsBalanceatthebeginningoftheyear (52,627.09) (45,753.65)Profitfortheyear (7,431.45) (6,873.44)AppropriationsTransfertogeneralreserve - -Balanceattheendoftheyear (60,058.54) (52,627.09)

OthercomponentsofequityRemeasurementofdefinedbenefitplans (43.98) (26.76)Gainsoninvestmentsinequityinstruments 479.05 511.97

435.07 485.22

Totalotherequity (41,887.87) (34,406.28)

79

Capital redemption reserve:TheCompanyhascreatedcapitalredemptionreservefromdistributableprofituponredemptionofpreferencesharesinthepastyears.

Securities premium account:Amountreceivedinexcessoffacevalueoftheequitysharesisrecognizedinsecuritiespremiumaccount.ThereserveisutilisedinaccordancewiththeprovisionsoftheCompaniesAct.

Retained earnings: Retainedearningsaretheprofits/lossoftheCompanytilldate,lesstransferstogeneralreserve,dividendsorotherdistributionspaidtoshareholders.

Netgain/(loss)onfairvalueofdefinedbenefitplans:TheCompanyhasrecognisedremeasurementgains/(loss)ondefinedbenefitplansinOCI.ThesechangesareaccumalatedwithintheOCIreservewithinotherequity.TheCompanytransfersamountfromthisreservetoretainedearningwhentherelevantobligationsarederecognized.

Gain/(loss)oninvestmentinequityinstruments:TheCompanyhaselectedtorecognisechangesinthefairvalueofcertaininvestmentsinequitysecuritiesinOCI.ThesechangesareaccumalatedwithintheFVTOCIequityinvestmentreservewithinequity.TheCompanytransfersamountfromthisreservetoretainedearningwhentherelevantequitysecuritiesarederecognized.

Note 15 Borrowings(Indian`inlacs)

Non-current Current Particulars 31st March 31st March 31st March 31st March

2019 2018 2019 2018

SecuredTermloansfrombanksandothers* 1,442.00 2,354.00 - -Workingcapitalfinancefrombanks** - - 2,140.00 2,540.00

*uponassignmentfromafinancialinstitution

1,442.00 2,354.00 2,140.00 2,540.00

Unsecured - - - -- - - -

Total borrowings 1,442.00 2,354.00 2,140.00 2,540.00

Note:Termloansandworkingcapitalfinancefrombanksandothersareagainsthypothecationofplant&equipmentandvehicles,inventoriesandbookdebtsandfurthersecuredbyequitablemortgageofcertainimmovableassetsofthecompanyandalsoagainstpersonalguranteesofsomeofthedirectors. Workingcapitalfinancefrombanksandfinancialinstitutionareagainsthypothicationofinventories,bookdebtsanddiscountingofexportbillsandfurthersecuredbyequitablemortgageoffixedassetsofthecompany. **Amountofdefault:Currentborrowingsaggregatingto`2,140.00lacshavebeenclassifiedbytherespectivelendersasnon-standard.

Note16Otherfinancialliabilities

(Indian`inlacs)

Non-current Current


2019 2018 2019 2018

Non-current

Currentmaturitiesoflong-termdebt - - 912.00 912.00

Interestaccruedanddueonborrowings - - 2,397.75 2,124.57

Derivativesandotherclaimspayable - - 23,601.37 21,101.37

(refernoteno.43)

Totalotherfinancialliabilities - - 26,911.12 24,137.94

80


Note 17 Provisions

(Indianìnlacs)

Non-current Current


2019 2018 2019 2018

Provisionforleaveencashment 94.91 86.22 17.28 15.05

Provisionforminningrestoration 827.87 827.87 - -

Provisionforbonus - - 97.00 97.67

Provisionforroyalty - - 44.42 44.42

Total provisions 922.78 914.09 158.70 157.14

Note18Other liabilities

(Indianìnlacs)

Non-current Current


2019 2018 2019 2018

Advancesfromcustomers - - 3,175.11 1,381.30

Statutoryliabilities - - 181.14 148.18

Shippingclaimspayable(refernoteno.41,42) - 14,027.02 56,116.55 44,224.85

Payableforcapitalassets - - 270.70 364.92

Otherliabilities - - 1,712.82 1,612.99

Total other liabilities - 14,027.02 61,456.32 47,732.24

Note 19 Trade payables

(Indianìnlacs)

Current

Particulars 31st March 31st March

2019 2018

Tradepayables

TotaloutstandingduesofMicroandSmallEnterprises(refernoteno.36) 25.79 -

TotaloutstandingduesofcreditorsotherthanMicroandSmallEnterprises 6,570.62 4,359.71

Total trade payables 6,596.41 4,359.71

Note 20 Revenuefromoperations

(Indianìnlacs)

Particulars 2018-2019 2017-2018

SaleofProducts

Exportsales 11,602.92 8,376.79

Domesticsales 18,565.41 14,267.86

30,168.33 22,644.65

Other Operating Revenue

Research&developmentfeesreceipts 250.00 330.00

Exportincentives&credits 0.92 4.28

Otheroperatingincome 3,298.61 939.91

Totalrevenuefromoperations 33,717.86 23,918.84

81

Note 21 Other income

(Indianìnlacs)

Particulars 2018-2019 2017-2018

Interestreceipts 212.59 387.85

Dividendreceipts 142.47 186.25

Profitonsaleofinvestment(net) 21.03 4.50

Leaserentreceipts 255.37 235.70

Profitonsaleofproperty,plant&equipments(net) 214.74 2.22

Miscellaneousincome 116.91 181.40

Total other income 963.11 997.92

Note 22 Costofmaterialsconsumed

(Indianìnlacs)

Particulars 2018-2019 2017-2018

Rawmaterialsconsumed

Openingstock 1,322.29 1,161.80

Add:Purchases 8,757.62 7,142.59

10,079.91 8,304.39

Less:Closingstock (1,887.24) (1,322.29)

8,192.67 6,982.10

Rentandroyalty 431.95 416.07

Miningexpenses 1,931.10 1,534.53

Totalcostofmaterialconsumed 10,555.72 8,932.70

Note 23 Changes in inventories

(Indianìnlacs)

Particulars 2018-2019 2017-2018

ClosingStock

Finishedgoods 2,112.02 1,854.68

Stock-in-trade 5,505.74 6,319.43

Semifinishedgoods 2,852.29 3,758.05

10,470.05 11,932.16

OpeningStock


Stock-in-trade 6,319.43 1,686.96


11,932.16 7,067.90

Changes in inventories 1,462.11 (4,864.26)

82


Note 24 Employeebenefitexpenses

(Indianìnlacs)

Particulars 2018-2019 2017-2018

Salaries,wages,allowancesandbonus 2,616.40 2,533.02

Directors'remuneration 29.34 29.34

Contributiontoprovidentfund&otherwelfarefunds 203.72 324.06

Staffwelfareexpenses 209.93 207.01

Totalemployeebenefitexpenses 3,059.39 3,093.43

Note 25 Finance costs

(Indianìnlacs)

Particulars 2018-2019 2017-2018

Interest

Banks 273.18 297.61

Incometax 0.97 0.13

Others 670.96 765.86

945.11 1,063.60

Otherborrowingcosts 0.42 0.53

Totalfinancecosts 945.53 1,064.13

Note26Depreciationandamortisationexpenses

(Indianìnlacs)

Particulars 2018-2019 2017-2018

Depreciationontangibleassets 2,233.46 2,343.39

Amortisationofintangibleassets 41.52 62.50

Total depreciation and amortisation 2,274.98 2,405.89

83

Note 27 Otherexpenses

(Indian`inlacs)

Particulars 2018-2019 2017-2018

Manufacturingexpenses

Powerandfuel 1,415.34 1,153.44

Machineryrepairsandmaintenance 79.58 79.55

Packingmaterialsandexpenses 612.77 439.76

Storesandspares 746.79 994.63

Carriageinward 19.86 67.01

Otherexpenses 776.89 775.09

3,651.23 3,509.48

Sellinganddistriibutionexpenses

Salescommission 2.91 0.78

Exportfreightandinsurance 819.28 616.56

Exportcustomduty 1,149.93 694.25

Exportandothershipmentexpenses 5,566.75 2,651.58

7,538.87 3,963.17

Administrativeandotherexpenses

Advertisementandbusinesspromotion 77.44 75.21

Rent 84.09 202.91

Ratesandtaxes 24.64 204.24

Repairstobuildingsandothers 96.80 140.00

Insurancepremiums 67.12 65.70

Travellingexpenses 369.43 418.20

Foreigncurrencyfluctuationloss 3,690.12 502.11

Legalandprofessionalfees 613.27 516.92

Provisionfordoubtfuldebtsandadvancesandbaddebts 387.00 395.39

Bankdiscount,commissionandothercharges 39.00 38.50

Paymenttoauditors 49.23 48.38

Directorssittingfees 23.75 20.50

Donations 22.98 14.97

Miscellaneousexpenses 948.74 955.49

6,493.61 3,598.52

Totalotherexpenses 17,683.71 11,071.17

Payments to auditors

Auditfees 37.00 37.00

Taxauditfees 7.95 7.95

Otherservices 3.96 2.80

Reimursementofexpenses 0.32 0.63

49.23 48.38

84


Note28Earning per share Particulars 2018-2019 2017-2018

Profitfortheyear(ìnlacs) (7,431.45) (6,873.44)Weightedaveragenumberofshares(Nos) 86,986,098 86,986,098Earningspershare(BasicandDiluted)` (8.54) (7.90)Facevaluepershare` 2.00 2.00

Note 29 Fair value measurementi. Financial instruments by catergory

(Indianìnlacs)Particulars 31st March 2019 31stMarch2018

FVPL FVOCI Amortised cost

FVPL FVOCI Amortised cost

Financial assets Investments 378.71 504.06 2,172.60 - 536.97 3,860.02Tradereceivables - - 7,097.18 - - 7,167.94Loans - - 2,368.50 - - 2,088.43Otherfinancialassets - - 388.16 - - 310.24Cashandcashequivalents - - 1,832.52 - - 636.34Otherbankbalances - - 347.67 - - 0.00

Totalfinancialassets 378.71 504.06 14,206.63 - 536.97 14,062.97

Financial liabilitiesBorrowings - - 3,582.00 - - 4,894.00Tradepayables - - 6,596.42 - - 4,359.71Otherfinancialliabilities - - 26,911.12 - - 24,137.94

Totalfinancialliabilities - - 37,089.53 - - 33,391.65

ii)Fairvaluehierarchy This section explains the judgments and estimatesmade in determining the fair values of the financial instruments that are (a) recognised andmeasuredatfairvalueand(b)measuredatamortisedcostandforwhichfairvaluearedisclosedinthefinancialstatements.Toprovideanindicationabouttherealiasbilityoftheinputsusedindeterminingfairvalue,theCompanyhasclassifieditsfinancialinstrumentsintothefollowingthreelevelsprescribedunderIndAS-113“FairValueMeasurements”.Financialassetsmeasuredatfairvalue-recurringfairvaluemeasurementsat31stMarch2019

(Indianìnlacs)Particulars Level 1 Level 2 Level 3 Total

Financial investment at FVOCIInvestmentinequityshares(unquoted) - - 504.06 504.06

Financial investment at FVPLInvestmentinmutualfund(quoted) 378.71 -

- 378.71

Total 378.71 - 504.06 882.76

Financialassetsmeasuredatfairvalue-recurringfairvaluemeasurementsat31stMarch2018(Indianìnlacs)

Particulars Level 1 Level 2 Level 3 Total


Total - - 536.97 536.97

Level 1 :Level1hierarchyincludesfinancialinstrumentsmeasuredusingquotedpricesinactivemarkets.Quoteswouldincludesrates/values/valuationreferencespublishedperiodicallybystock,bondsandmutualfunds,asthecasemaybe.

Level 2 :Thefairvalueoffinancialinstrumentthatarenottradedinanactivemarketaredeterminedusingvaluationtechniqueswhichmaximisetheuseofobservablemarketdata(eitherdirectlyaspricesorindirectlyderivedformprices)andrelyaslittleaspossibleonentity-specificestimates.Ifallsignificantinputsrequiredtofairvalueaninstrumentareobservable,theinstrumentisincludedinlevel2.

Level3:Ifoneormoreofthesignificantinputsisnotbasedonobservablemarketdata,theinstrumentisincludedinlevel3.

85

Note 30 Financialriskmanagement

TheCompany'sactivitiesexposeittocreditrisk,liquidityriskandmarketrisk.

Risk Exposurearisingfrom Measurement Management

Creditrisk Cashandcashequivalents,financialassetsandtradereceivables

Creditratings,Aginganalysis,creditevaluation

Diversificationofcounterparties,investmentlimits,checkoncounterpartiesbasiscreditratingandnumberofoverduedays

Liquidityrisk Borrowings,tradepayablesandotherliabilities

Maturityanalysis Maintainingsufficientcash/cashequivalentsandmarketablesecurities

Marketrisk FinancialassetsandliabilitiesnotdenominatedinINR

Sensitivityanalysis Constantevaluationandproperriskmanagementpolicies

TheBoardprovidesguidingprinciplesforoverallriskmanagementaswellaspoliciescoveringspecificareassuchasforeignexchangerisk,creditriskandinvestmentofsurplusliquidity. A.CreditriskCredit risk refers to theriskofacounterpartydefaulton itscontractualobligationresulting intoa financial loss to theCompany.Themaximumexposureofthefinancialassetsrepresentstradereceivables,workinprogressandreceivablesfromgroupcompaniesandothers.

Inrespectoftradereceivables,theCompanyusesaprovisionmatrixtocomputetheexpectedcreditlossallowancesfortraderecivablesinaccordancewith theexpected credit loss (ECL)policyof theCompany. TheCompany regulary reviews trade receivablesandnecessaryprovisions,wheneverrequired,aremadeinthefinancialstatements. B.LiquidityriskLiquidityrisk is therisk that theCompanywillencounterdifficulty inraisingfunds tomeet itscommitmentsassociatedwith financial instruments.Liquidityriskmayresultfromaninabilitytosellafinancialassetsquicklyatclosetoitsfairvalue. TheCompany,tothebestextentpossible,attemptstomanageliquidityriskbymaintainingadequateliquidassetsandbankingfacilitiesbycontinuouslymonitoringforcastandactualcashflowsandbymatchingthematurityprofilesoffinancialassetsandliabilities. Contractualmaturitiesofsignificantfinancialliabilitiesareasfollows:

(Indian`inlacs)

ParticularsLess than or equaltoone year

more thanone year Total

As on 31st March 2019

Borrowings 2,140.00 1,442.00 3,582.00Tradepayables 6,596.42 - 6,596.42Otherfinancialliabilities 26,911.12 - 26,911.12

Ason31stMarch2018


C.Marketrisk

Marketriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketprices.Suchchangesinthevaluesoffinancialinstrumentsmayresultfromchangesinforeigncurrencyexchangerates,interestrates,credit,liquidityandothermarketchanges. TheCompanyhasseveralbalancesinforeigncurrencyandconsequently,theCompanyisexposedtoforeignexchangerisk.TheCompanyevaluatesexchangerateexposurearisingfromforeigncurrencytransactionsandfollowsestablishedriskmanagementpolicies,totheextentpossible.

86


a)Interestraterisk

Interestrateriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketinterestrates.TheCompany’sexposuretotheriskofchangesinmarketinterestratesrelatesprimarilytotheCompany’slong-termdebtobligationswithfloatinginterestrates.TheCompanymanagesitsinterestrateriskbyhavingabalancedportfoliooffixedandvariablerateloansandborrowings,whereverpossible.

Company’sexposuretoforeigncurrencyriskattheendofeachreportingperiodisasunder: b)Exposureinforeigncurrency-unhedged

(respectiveforeigncurrenciesinlacs)

Currency 31st March 2019 31stMarch2018

Receivables

USD 13.93 13.44

EURO 6.61 6.83

SGD 0.02 -

GBP 0.03 0.00

Payables

USD 887.06 947.38

EURO 0.17 0.14

SGD 0.01 -

GBP 0.09 -

Loans to overseas subsidiaries

USD 34.03 31.72

d)Foreigncurrencysensitivity TheCompanyismainlyexposedtochangesinUSDandEURO.Thebelowtabledemostratesthesentivitytoa5%increaseordecreaseintheUSDandEUROagainstINR,withallothervariablesheldconstant.ThesensitivityanalysisispreparedonthethenetunhedgedexposureoftheCompanyasatreportingdate.5%reprentsmanagement’sassessmentofreasonablypossiblechangeinforeignexchangerate.

(Indian`inlacs)

Particulars Currency Change in rate Effectonprofitbeforetax

March 31, 2019 USD +5% (2,903.30)

USD -5% 2,903.30 March31,2018 USD +5% (2,941.23)

USD -5% 2,941.23

March 31, 2019 EURO +5% 25.02

EURO -5% (25.02)March31,2018 EURO +5% 27.04

EURO -5% (27.04)

87

Note 31 Capital management TheCompany’scapitalmanagementobjectiveistomaximisethetotalshareholderreturnsbyoptimisingcostofcapitalthroughflexiblecapitalstruc-turethatsupportsgrowth.Further,theCompanyattemptstoensureoptimalcreditriskprofiletomaintain/enhancecreditrating. TheCompanydeterminestheamountofcapitalrequiredonthebasisofannualoperatingplanandlong-termstrategicplans.Thefundingrequire-mentsaremetthroughinternalaccrualsandlong-term/short-termborrowings.TheCompanymonitorsthecapitalstructureonthebasisofnetdebttoequityratioandmaturityprofileoftheoveralldebtportfolioofthecompany. However,duetothebusinesslossesforthepastfewyears,thenetworthofthecompanyremainsnegativeandinviewofthefactthatthecurrentliabilitiesoftheCompanyaremuchhigherthanthecurrentassetsasonthebalancesheetdate,theCompanymayfinditdifficulttomeetitsfinancialobligationsunlesslong-termfundsaregeneratedbytheCompany.

ThefollowingtablesummarisesthecapitaloftheCompany:

(Indian ìnlacs)Particulars As at

31st March 2019 31stMarch2018Totaldebt 4,494.00 5,806.00Totalequity (40,148.15) (32,666.56)

totaldebttoequityratio (0.11) (0.18)

Note 32 Exceptionalitems

(Indian ìnlacs)

Particulars 31st March 2019 31stMarch2018

1 Netliabilitiesinrespectofexchangeratedifferenceonadisputedshippingclaimanddifferencesandgainonaccountoffairvaluationoflongtermliabilities

(11,535.53) -

2 Additionalliabilitiesinrespectofterminationofasettlementagreementbyacreditor (15,008.51) -

3 Profitontransferofthepledgedshares(refernoteno.41) 26,459.68 -

4 Additionalliabilityononetimesettlementwithabank (2,500.00) -

5 Netliabilitiesinrespectofhithertounprovidedadditionalliabilityonaccountofexchangeratedifferencesonadisputedshippingclaimanddifferencesandgainonaccountoffairvaluationoflong-termliabilitytowardssettlementoftwoshippingclaimsaswellasliabilityuponsettlementwithashippingcompany.

-

(1,512.20)

Total…. (2,584.36) (1,512.20)

Note 33 Contingent Liabilities

(Indian ìnlacs)

No. Particulars 31st March 2019 31stMarch2018

1 Guaranteestobanksagainstcreditfacilitiesextendedtosubsidiarycompanies* 14,129.42 13,759.37

2 Guaranteestobanksagainstcreditfacilitiesextendedtojointventureandassociatecompanies** 3,200.00 3,200.00

3 GuaranteesgivenbytheCompanytovariousgovernmentauthorities 4,383.25 5,741.03

4 Inrespectofcontractsremainingtobeexecuted 98.69 131.17

5 Inrespectofdisputedincometaxmatters 1,545.11 1,433.32

6 InrespectofdisputedVATandservicetaxmatters 145.44 134.12

7 ShippingclaimsagainsttheCompanynotackowledgedasdebt 52,068.13 4,325.54

8 OtherclaimsagainsttheCompanynotacknowledgedasdebt 48,384.29 6,306.14

9 Inrespectofothermatters 28.43 15.89

Total…. 123,982.77 35,046.58

Note:ContingentliabilitiesstatedaboveincludeclaimslodgedbyvariouscreditorstillthedateofthesigningofthisreporttotheIRPunderregulation8oftheInsolvencyandBankrupcyBoardofIndia(InsolvencyProcessforCorporatePersons)Regulation2016.

*oneofthesubsidiariesceasedtobeasubsidiaryw.e.f.19thSeptember,2018**ceasedtobejointventurew.e.f.19thSeptember,2018Refernoteno41

88


Note 34 Employeebenefits

Funded Scheme - Gratuity

Liabilityforemployeegratuityhasbeendeterminedbyanactuary,appointedforthepurpose,inconfirmitywiththeprinciplessetoutintheIndianAccountingStandard19thedetailsofwhichareashereunder.TheCompanymakescontributionstoapprovedgratuityfund.

(Indian`inlacs)Particulars 31st March 2019 31stMarch2018

Amount recognised in balance sheetPresentvalueoffundeddefinedbenefitobligation (667.62) (651.82)Fairvalueofplanassets 679.92 682.39Netunfundedobligation/(surplusassets) 12.30 30.56

ExpenserecognisedinthestatementofprofitandlossCurrentservicecost 40.20 40.30Expectedreturnonplanassets - 96.67Interestonnetdefinedbenefitasset (2.36) (5.34)TotalexpensechargedtoprofitandlossAccount 37.83 131.62

Amount recorded as other comprehensive incomeOpeningamountrecognisedinOCIoutsideprofit&lossAccount (26.76) (116.29)Remeasurementsduringtheperioddueto:Changesinfinancialassumptions (8.34) 89.53Actualreturnonplanassetslessinterestonplanassets (8.88) - ClosingamountrecognisedinOCIoutsideprofit&lossaccount (43.98) (26.76)

Reconciliationofnetliability/(asset)Openingnetdefinedbenefitliability/(asset) (30.56) (66.80)Expensechargedtoprofitandlossaccount 37.83 131.62Amountrecognisedoutsideprofitandlossaccount 17.22 (89.53)Employercontributions (36.78) (5.85)Closingnetdefinedbenefitliability/(asset) (12.30) (30.56)

MovementinbenefitobligationOpeningofdefinedbenefitobligation 651.82 649.20Currentservicecost 40.20 40.30PastServicecost - 96.67Interestondefinedbenefitobligation 50.39 51.94Acturialloss/(gain)arisingfromchangeinfinancialassumptions (1.30) 12.77Benefitspaidfromthefund (83.12) (83.24)Acturialloss/(gain)onobligation 9.64 (115.81)Closingofdefinedbenefitobligation 667.62 651.82

Movement in plan assetsOpeningfairvalueofplanassets 682.39 716.00Returnonplanassetsexcludinginterestincome (8.88) (13.51)Interestincome 52.75 57.28Contributionsbyemployer 36.78 5.85Benefitspaid (83.12) (83.24)Closingofdefinedbenefitobligation 679.92 682.39

Principal acturial assumptionsDiscountRate 7.76 8.00Salaryescalationratep.a. 7.76 7.73Futuresalaryincrease 5.00 5.00Rateofemployeeturnover 4.00 4.00

89

Sensitivityanalysisforsignificatassumptionisasshownbelow:

(Indianìnlacs)


1 DiscountRate-1%Increase (40.86) (45.21)

DiscountRate-1%Decrease 46.02 51.38

2 Salary-1%Increase 46.83 52.28

Salary-1%Decrease 42.25 (46.73)

3 EmployeeTurnover-1%Increase 8.14 9.71

EmployeeTurnover-1%Decrease (9.01) (10.82)

Thefollowingaretheexpectedfuturebenefitpaymentsforthedefinedbenefitplan:

(Indianìnlacs)


1 Withinthenext12months(nextannualreportingperiod) 92.27 74.26

2 Between2and5years 185.46 203.64

3 Beyond5years 977.55 1,053.01

Note35DisclosureasrequiredbytheindAS17,“Leases”asspecifiedintheCompanies(AccountingStandards)Rules2015(asamended)aregivenbelow:

a) Theaggregateleaserentalspayablearechargedtothestatementofprofit&lossasrentinnoteno.27.

b) TheCompanyhastakenpropertiesonoperatinglease.TheleaserentalsarepayablebytheCompanyonamonthlyorquarterlybasis.

c) TheLeasingarrangements,whicharenon-cancellableovertheperiodofthearrangements,thedisclosuresinrespectofthesame:

(Indianìnlacs)


Totaloffutureminimumleasepaymentsundernon-cancellableoperatingleaseforeachofthefollowingperiods:

1 Notlaterthanoneyear 63.00 62.79

2 Laterthanoneyearandnotlaterthanfiveyears 315.00 251.15

3 Laterthanfiveyears - -

4 Leasepaymentrecognisedinstatementofprofit&loss 59.81 57.37

Note36DisclosureundertheMicro,SmallandMediumEnterprisesDevelopmentAct,2006areprovidedasunderfortheyear2018-19,totheextenttheCompanyhasreceivedintimationfromtheSuppliersregardingtheirstatusundertheAct.

(Indianìnlacs)


Principalamountandtheinterestduethereonremainingunpaidtoeachsupplierattheendofeachaccountingyear(butwithinduedateasperMSMEDAct)

-

1 Principalamountduetomicroandsmallenterprise 25.79 -

2 Interestdueonabove - -

90


Note37DetailsofIncomeandExpenditureonResearchandDevelopment:

(Indian`inlacs)

Particulars 2018-2019 2017-2018

Salaries,wages,allowancesandbonus 200.03 177.18

Contributiontoemployeebenefitfunds 9.96 9.21

Staffwelfareexpenses 8.40 7.44

Machineryrepairsandmaintenance 29.75 22.36

Laboratoryanalysisandotherexpenses 80.68 66.98

Othersellingexpenses 8.75 1.65

Travellingexpenses 5.47 13.29

Rent 14.52 14.52

Ratesandtaxes 0.05 1.77

Buildingandotherrepairs 21.44 23.23

Advertisementandbusinesspromotion 0.48 0.45

Legalandprofessionalfees 7.67 8.58

Sundrybalanceswrittenoff 0.00 0.00

Bankcommissionandothercharges 0.02 0.04

Paymenttoauditors 0.30 0.30

Insurancepremiums 1.15 0.62

Generalexpenses 38.40 41.11

427.07 388.73

Materialcost 4.47 (3.70)

Financecost - 0.02


538.82 500.91Less:

Receiptfromresearchactivities 250.00 330.00

Interestincome 0.05 0.04

Sundrybalanceswrittenback 1.14 0.00

GainonForeigncurrencyfluctuation 2.35 0.00

Otheroperationalincome - 0.42

253.55 330.45

Netsurplus/(deficit) (285.27) (170.46)

91

Note38AsperIndAS24,Disclosureoftransactionswithrelatedparties(asidentifiedbythemanagement)asdefinedinIndASaregiven below:

Sr No.

Particulars Countryofincorporation

(i)Subsidiariescompanies1 AshapuraAlumiumLimited India2 AshapuraClaytechLimited India3 AshapuraConsultancyServicesPrivateLimited India4 AshapuraHoldings(UAE)FZE UAE5 AshapuraInternationalLimited² India6 AshapuraMaritimeFZE UAE7 AshapuraMinechem(UAE)FZE UAE8 AshapuraGuineaResourcesSARL³ Guinea9 AshapuraResourcesPrivateLimited India10 BombayMineralsLimited India11 PenisulaPropertyDevelopersPrivateLimited India12 PrashanshaCeramicsLimited India13 PTAshapuraResources Indonesia14 PTAshapuraBentoclayFareast Indonesia15 ShardaConsultancyPrivateLimited India

(ii)Jointventuresandassociates16 AltageStoneCrushingIndustries India17 APLValueclayPrivateLimited4 India18 AshapuraArcadiaLogisticPrivateLimited India19 AshapuraDhofarResourcesLLC Oman20 AshapuraExportsPrivateLimited India21 AshapuraFarestMPASdnBhd Malaysia22 AshapuraFoundation India23 AshapuraMidgulfNV Belgium24 AshapuraMineralCompany India25 AshapuraOvereasPrivateLimited India26 AshapuraPerfoclayLimited4 India27 ChetanNShahHUF India28 EmoAshapuraEnergyandMining Nigeria29 KutchNavniramanTrust India30 ManicoResourcesPrivateLimited India31 MinologisticCorporation India32 MinotransLogisticCorporation India33 OrientAbrasivesLimited India34 ShardaIndustrialCorporation India35 SoharAshapuraChemicalsLLC Oman

(iii)keymanagerialpersonnel36 Mr.ChetanShah Non-ExecutiveChairman37 Mr.RajnikantPajwani WholeTimeDirector&CEO38 Mr.HarishMotiwala IndependentDirector39 Mr.AshokKadakia IndependentDirector40 Mr.AbhilashMunsif IndependentDirector41 Mr.PundrikSanyal IndependentDirector42 Mrs.NavitaGaiha IndependentDirector43 Mr.SachinPolke CompanySecretary&VicePresident44 Mr.AjayPhalod5 DesignateCEO45 Mr.AshishDesai Sr.GeneralManager-Accounts46 Ms.SurekhaSathe VicePresident-InformationTechnology47 Mr.AkhileshKumarSinha VicePresident-HR

Notes:1WiththeappointmentofInterimResolutionProfessional(IRP),theBoardofDirectorsstands

suspendedw.e.f.15thMarch,2019.

2 ceasedtobesubsidiaryw.e.f.19thSeptember,20183 ceasedtobesubsidiaryw.e.f.16thAugust,20184 ceasedtobejointventurew.e.f.19thSeptember,20185 DesignateCEOnominatedbyIRPw.e.f19thMarch,2019

92


(Indian`inlacs)Natureoftransaction Relationship Year ended Year ended

31st March 2019 31stMarch20181.Salesofmaterials

AshapuraInternationalLimited Subsidiary 2,320.49 3,383.52BombayMineralsLimited Subsidiary 946.12 37.22AshapuraPerfoclayLimited JointVenture 1,216.83 3,818.53AshapuraHoldings(UAE)FZE Subsidiary 21.30 -OrientAbrasivesLimited Associate 536.74 1,328.13AshapuraFarestMPASdnBhd Associate - 276.62

Total… 5,041.50 8,844.03

2.Saleofassets

BombayMineralsLimited Subsidiary - 21.77OrientAbrasivesLimited Associate 7.92 -AshapuraDhofarResourcesLLC JointVenture 716.96 -

Total… 724.88 21.77

3.Purchaseofmaterials

BombayMineralsLimited Subsidiary 706.01 2,922.25AshapuraInernationalLimited Subsidiary 1,257.51 4,828.07AshapuraClaytechLimited Subsidiary - 162.48AshapuraPerfoclayLimited JointVenture 1.97 1.36OrientAbrasivesLimited Associate 704.66 239.87

Total… 2,670.16 8,154.04

4. Interest received

AshapuraMinechem(UAE)FZE Subsidiary 155.54 144.08BombayMineralsLimited Subsidiary - 129.64AshapuraPerfoclayLimited JointVenture - 14.64

Total… 155.54 288.36

5. Lease rent paid

AshapuraConsultancyServicePrivateLimited Subsidiary - 59.39AshapuraInternationalLimited Subsidiary 6.78 14.52PenisulaPropertyDevelopersPrivateLimited Subsidiary - 7.38ShardaConsultancyServicesPrivateLimited Subsidiary - 12.23BombayMineralsLimited Subsidiary 0.60 0.60

Total… 7.38 94.12

6.Reimbursementofadministrativeexpensesreceived/(paid)

AshapuraClaytechLimited Subsidiary 1.60 (0.16)AshapuraConsultancyServicesPrivateLimited Subsidiary 0.47 (7.11)AshapuraInternationalLimited Subsidiary 207.26 779.15BombayMineralsLimited Subsidiary (309.64) 4.52PenisulaPropertyDevelopersPrivateLimited Subsidiary 0.21 (0.89)ShardaConsultancyServicesPrivateLimited Subsidiary 0.42 (1.47)AshapuraResourcesPrivateLimited Subsidiary 6.86 -AshapuraAluminumLimited Subsidiary 0.44 -AshapuraOverseasPrivateLimited Associate 0.08 14.00OrientAbrasivesLimited Associate (7.75) (2.22)APLValueclayPrivateLimited JointVenture 0.64 0.14AshapuraPerfoclayLimited JointVenture 280.72 554.68

Total… 181.32 1,340.65

93


31st March 2019 31stMarch20187. Rent receivedAshapuraInternationalLimited Subsidiary 95.26 189.73AshapuraOverseasPrivateLimited Associate 1.20 1.20AshapuraResourcesPrivateLimited Subsidiary 2.25 -OrientAbrasivesLimited Associate 8.40 2.10BombayMineralsLimited Subsidiary 5.51 5.25

Total… 112.62 198.28

8.R&Dchargesreceipts

AshapuraInternationalLimited Subsidiary 150.00 200.00OrientAbrasivesLimited Associate 25.00 -AshapuraPerfoclayLimited JointVenture 75.00 100.00

Total… 250.00 300.00

9. Shipment Income

BombayMineralsLimited Subsidiary - 56.31

10.Stores,Spares&PackingMaterialsPurchase

AshapuraPerfoclayLimited JointVenture - 1.20APLValueclayPrivateLimited JointVenture 0.20 -AshapuraInternationalLimited Subsidiary - 8.87OrientAbrasivesLimited Associate 3.96 2.66

Total… 4.16 12.74

11. Operational Income

AshapuraArcadiaLogisticPrivateLimited Associate - 18.00OrientAbrasivesLimited Associate - 28.93AshapuraInternationalLimited Subsidiary 28.03 -

Total… 28.03 46.93

12. Guarantee commission

BombayMineralsLimited Subsidiary 29.00 -

13. RoyaltyChetanShahHUF Associate 93.65 -

Outstanding Balances:1. Trade receivablesAshapuraInternationalLimited Subsidiary - 970.02AshapuraHoldings(UAE)FZE Subsidiary 21.73 -AshapuraArcadiaLogisticPrivateLimited Associate - 40.95AshapuraExportsPrivateLimited Associate 385.58 385.58AshapuraMidgulfNV JointVenture 506.77 526.99AshapuraOverseasPrivateLimited Associate 259.41 257.91AshapuraPerfoclayLimited JointVenture 1,168.70 1,418.18ManicoResourcesPrivateLimited Associate 12.50 12.50AshapuraFarestMPASdnBhd Associate - 336.03APLValueclayPrivateLimited JointVenture 0.21 0.13AshapuraResourcesPrivateLimited Subsidiary 91.47 15.38OrientAbrasivesLimited Associate 486.53 823.37AshapuraGuineaResourcesSARL Subsidiary 13.12 12.36

Total… 2,946.02 4,799.40

94



31st March 2019 31stMarch20182. Security DepositAshapuraConsultancyServicePrivateLimited Subsidiary - 230.00AshapuraInternationalLimited Subsidiary 1.00 1.00AshapuraClaytechLimited Subsidiary 50.00 50.00PenisulaPropertyDevelopersPrivateLimited Subsidiary - 20.00ShardaConsultancyServicesPrivateLimited Subsidiary - 140.00ShardaIndustrialCorporation Associate 45.00 45.00AshapuraMineralCompany Associate - 12.00

Total… 96.00 498.00

3. Trade PayablesAshapuraMineralCompany Associate - 16.03AshapuraMidgulfNV Associate 148.28 -AshapuraArcadiaLogisticPrivateLimited Associate 49.41 82.74OrientAbrasivesLimited Associate - 4.44APLValuclayPrivateLimited JointVenture 0.24 -

Total… 197.92 103.21

4.Trade AdvancesAshapuraClaytechLimited Subsidiary 297.41 445.81BombayMineralsLimited Subsidiary 2,941.99 3,944.09ManicoResourcesPrivateLimited Associate 51.01 51.01MinoTransLogistics Associate 164.42 -AltageStoneCrushingIndustries Associate 445.85 431.28MinologisticsCorporation Associate 46.74 46.74

Total… 3,947.42 4,918.93

5. Intercorporate loans givenAshapuraMinechem(UAE)FZE Subsidiary 2,354.99 2,067.95

6.AdvancesfromcustomersAshapuraAluminumLimited Subsidiary 16.45 16.89AshapuraMinechem(UAE)FZE Subsidiary 182.69 -AshapuraFarestMPASdnBhd Associate 0.70 -

Total… 199.84 16.89Key management personnel and relatives

1. Remuneration

Mr.RajnikantPajwaniWholeTimeDirector&CEO

29.34 29.34

Others 284.70 227.89Total… 314.04 257.23

2.Reimbursementofexpensespaid

Ms.SurekhaSatheVicePresident-InformationTechnology

2.94 -

Mr.AshishDesaiSr.General

Manager-Accounts 2.40 -

Mr.AjayPhalod DesignateCEO 2.40 -Mr.AkhileshkumarSinha VicePresident-HR 2.94 -

Mr.SachinPolkeCompanySecretary&VicePresident

2.94 -

Total… 13.62 -

95


31st March 2019 31stMarch20183.Sittingfees

Mr.ChetanShahNon-ExecutiveChairman

2.00 2.00

Mr.HarishMotiwalaIndependentdirector

5.75 5.00

Mr.AshokKadakiaIndependentdirector

3.25 2.00

Mr.AbhilashMunsifIndependentdirector

5.75 4.00

Mr.PundrikSanyalIndependentdirector

5.50 5.00

Mr.ArunChadhaIndependentdirector

- -

Mrs.NavitaGaihaIndependentdirector

1.50 2.50

Total… 23.75 20.50

39. TheCompany,on12thDecember2018,movedtotheNationalCompanyLawTribunal(NCLT)-MumbaiBench,underappropriateandrelevantprovisionsoftheInsolvencyandBankruptcyCode,2016.ThesaidpetitionisadmittedbytheNCLTbyitsorderdated15thMarch2019andtheCompanyis,therefore,nowunderCorporateInsolvencyResolutionProcess(CIRP).Consequently,TheBoardoftheDirectorsoftheCompanystands suspendedandMr.ArunChaddahas beenappointed by theNCLT as InterimResolution Professional. Someof the creditors have,however,movedtotheHon.NationalCompanyLawAppellateTribunal(NCLAT)againsttheaforesaidorderpassedbytheNCLT.TheorderpassedbytheHon.NCLThasbeenstayedandispendingfordisposalbytheHon.NCLAT.

40. ByvirtueofadecreeexecutionorderpassedbytheHon.BombayHighcourton31stOctober2018,ashippingcompany,againstitsclaims,hastakensymbolicpossessionofcertainunencumberedassetsoftheCompany.

41. Oneofthecreditors,withwhomtheCompanyhadenteredintosettlementagreement,terminatedduringtheyear,thesettlementagreementofUS$45millionpayableover25yearsandinvokedpledgeofsharesoftwosubsidiarycompaniesandajointventurecompanyon19thSeptember2018and4thOctober2018.Accordingly,100%sharesofawholly-ownedsubsidiary,AshapuraInternationalLimited;47.86%sharesofasubsidiarycompany,BombayMineralsLimited;andtheentireholdingof50%inajointventurecompany,AshapuraPerfoclayLimitedhavebeentakenoverbythesaidcreditorduetotriggerofthesepledgedshares.

TheCompanyisintheprocessofdefendingthesaidinvocationofpledgebythecreditor.Thesefinancialresultshave,however,beenpreparedonthebasisoftheaforesaidchangesintheinvestmentsoftheCompany.InabsenceofanyconsensusbetweentheCompanyandthesaidcreditor,transferoftheaforesaidinvestmentsisaccountedforonthebookvalueoftherespectivecompaniesasonthedateofthetransfer.Thismayundergoachangeuponsettlementonvaluationoftherespectivetransfereecompanies.

42. Totalamountpayableinrespectoftheshippingclaimasstatedin(41)above,alongwithanotherclaimpayabletoacreditor(netofinvocationofpledgeshares)asstatedin(40)above,is`56,116.55lacs(previousyear:`58,251.87lacs)whichhavebeendulyprovidedfor.TheCompanyhas,howevernotprovidedtowardsinterestontheseclaimsalongwithexchangeratedifferencethereonfortheyearaggregatingto`18,056.67lacs(cumulativeupto31stMarch2019:`35,415.44lacs)Thelossfortheperiodis,therefore,understatedby`18,056.67lacsandotherequityasonthebalancesheetdateisoverstatedby`35,415.44lacs.

43. Asdirectedby theSecurity andExchangeBoardof India (SEBI), theCompanyhas, during the financial year2014-15,madeprovisionsofunprovideddisputedloss/liabilityaggregatingto`21,101.38lacsinrespectofforeigncurrencyderivativecontracts,whichwerethesubjectmatterofthequalificationintheAuditors’Reportintheearlieryears.TheCompany,however,basedonthelegaladvicereceived,maintainsthatthatthesefinancialderivativescontractsarevoidandunenforceable.

44. Balanceswithsomeofthebanksaswellasbalancesfortradepayables,tradereceivables,forloansandadvancesaresubjecttoconfirmationsfromtherespectivepartiesandreconciliations,ifany,inmanycases.Inabsenceofsuchconfirmations,thebalancesasperbookshavebeenrelieduponbytheauditors.

45. AlltheamountshavebeenstatedinIndian`inlacs,unlessotherwisestated.

46. Previousyear’sfigureshasregroupedandrearranged,wherevernecessary.


For P A R K & COMPANY Sd/- Sd/-Chartered Accountants ARUN CHADDA AJAY PHALOD InterimResolutionProfessional DesignateChiefExecutiveOfficer Sd/- Sd/- Sd/-PRASHANT VORA ASHISH DESAI SACHIN POLKE Partner Sr.GeneralManager-Accounts CompanySecretary&VicePresidentMumbai Mumbai30thMay2019 30thMay2019

96


CONSOLIDATED FINANCIAL STATEMENTS

Contents Page Nos.

Consolidated Auditors’ Report 97-101

Consolidated Balance Sheet 102

Consolidated Statement of Profit & Loss A/c. 103

Consolidated Cash Flow Statement 104-105

Consolidated Notes 1 to 45 106-139

97

INDEPENDENTAUDITORS’REPORTToTheMembersofASHAPURA MINECHEM LIMITED[CompanyunderCorporateInsolvencyResolutionProcess(CIRP)]

Report on the Consolidated Financial Statements

QualifiedOpinion

We have audited the accompanying consolidated financial statementsof Ashapura Minechem Limited [Company under Corporate InsolvencyResolutionProcess(CIRP)](“theParentCompany”)anditssubsidiaries (theParentCompanyand itssubsidiaries togetherreferredtoas“theGroup”)whichincludesGroup’sshareofprofitinitsassociatesand joint ventures, comprising the Consolidated Balance Sheet as at31stMarch2019,theconsolidatedstatementofprofitandloss(includingother comprehensive income), the consolidated cash flow statementand theconsolidated statementof changes inequity for theyear thenendedanda summaryof the significantaccountingpoliciesandotherexplanatory information (hereinafter referred to as ‘’the consolidatedfinancialstatements’’).Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventousandbasedontheconsiderationofthereportsof other auditors on separate financial statements of the subsidiaries,associatesandjointventuresreferredtointheOtherMattersparagraphbelow, except for the effects of the matters described in the Basis for Qualified Opinion paragraph below,theaforesaidconsolidatedfinancialstatementsgive the information requiredby theCompaniesAct,2013(“theAct”) in themannerso requiredandgivea trueand fairview inconformitywiththeIndianAccountingStandardsprescribedundersection133oftheActreadwiththeCompanies(IndianAccountingStandards)Rules,2015,asamended,(‘IndAS”)andtheotheraccountingprinciplesgenerally accepted in India, of the consolidated state of affairs of theGroupasat31stMarch2019andtheirconsolidatedloss,consolidatedtotal comprehensive income, consolidated changes in equity andconsolidatedcashflowsfortheyearendedonthatdate.

BasisforQualifiedOpinion

Attention is invited to Note No. 43 regarding non provision of theadditional liabilityaggregating to`18,056.67 lacs towards interestonthe shipping claims and along with exchange rate difference thereon(cumulativeupto31stMarch2019:`35,415.44lacs).Thelossfortheyearis,therefore,understatedby`18,056.67lacsandotherequityasatthebalancesheetdateisoverstatedby`35,415.44lacs.

We conducted our audit of the consolidated financial statements inaccordancewiththeStandardsonAuditing(SAs)specifiedunderSection143(10)oftheAct.OurresponsibilitiesunderthoseStandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheConsolidatedFinancialStatements sectionofour report.Weare independentof theCompany inaccordancewith theCodeofEthics issuedby the Instituteof Chartered Accountants of India (ICAI) together with the ethicalrequirementsthatarerelevanttoourauditoftheconsolidatedfinancialstatementsundertheprovisionsoftheActandtheRulesmadethereunder,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththese requirementsand the ICAI’sCodeofEthics.Webelieve that theauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinionontheconsolidatedfinancialstatements.

EmphasisofMatter

a. The Hon. National Company Law Tribunal - Mumbai Bench,(“NCLT”) admitted an insolvency and bankruptcy petition filed bytheParentCompanyvideitsorderdated15thMarch,2019underthe Insolvency and Bankruptcy Code, 2016 (“the Code”) and theParent Company is, therefore, now under Corporate Insolvency

ResolutionProcess(CIRP).Consequently,TheBoardoftheDirectorsoftheParentCompanystandssuspendedandanInterimResolutionProfessional (“IRP”)hasbeenappointedbytheNCLT.Someof thecreditorshave,however,movedtotheHon.NationalCompanyLawAppellate Tribunal (NCLAT)against theaforesaidorderpassedbytheNCLT.TheorderpassedbytheHon.NCLThasbeenstayedandispendingfordisposalbytheHon.NCLAT.

b. The Parent Company has incurred losses for past few years, itsliabilities exceeded total assets and its net worth has been fullyeroded. Since theParentCompany isunderCorporate InsolvencyResolution Process (CIRP) and also in view of the continuingoperations of the Parent Company, the financial statements havebeenpreparedonagoingconcernbasis.

c. ByvirtueofadecreeexecutionorderpassedbytheHon.BombayHighcourton31stOctober2018,ashippingcompany,againstitsclaims, has taken symbolic possession of certain unencumberedassetsoftheParentCompany.

d. Two of the subsidiaries viz. Ashapura Maritime UAE FZE andAshapura Claytech Limited- India have not carried out anycommercial activities for past few years and have accumulatedlossesason31stMarch,2019.Thisconditionindicatestheexistenceofmaterialuncertaintythatmaycastsignificantdoubtsoverthesesubsidiaries’ability tocontinueasgoingconcerns.However,sincethemanagementishopefulofprovidingnecessaryfinancialsupportandresumingactivitiesinthenearfuture,thesefinancialstatementshavebeenpreparedonagoingconcernbasis.

Ouropinionisnotmodifiedinrespectofthesematters.

Key audit matters

Keyauditmattersare thosematters that, inourprofessional judgmentwere of most significance in our audit of the consolidated financialstatementsof thecurrentperiod.Thesematterswereaddressed in thecontextofourauditoftheconsolidatedfinancialstatementsasawhole,andinourformingouropinionthereon,andwedonotprovideaseparateopinion on thesematters.We have determined thematters describedbelowtobethekeyauditmatterstobecommunicatedinourreport:

Key Audit Matter How our audit addressed the Key Audit Matter

Corporate Insolvency Resolution Process

As stated above under theparagraph of Emphasis ofMatter, the Parent Companyis under Corporate InsolvencyResolution Process (“CIRP”) w.e.f.15th March 2019. The Board ofDirectors of the Company standssuspendedandInterimResolutionProfessional (IRP) is appointed bytheHon.NationalCompany LawTribunal(“theNCLT”).

Pending the final outcome ofCIRP and in the absence of thesupervision by the Board ofDirectors, the management’sreporting system to the IRPbecomescriticaland therefore, isidentifiedasKeyAuditMatter.


We tested the operatingeffectiveness of the processof the reporting system by themanagement to the IRPsince thedateoftheParentCompanybeingunderCIRP.

We assessed the relevantdisclosures and ManagementInformationSystemReportsbeingsubmittedby themanagement totheIRPonperiodicbasis.

98


Assessmentoflitigationsandrelateddisclosureofcontingentliabilities

The Group Company is subject tolarge number of various ongoinglegalandtaxrelatedclaimsasstatedunder note no. 34 – ContingentLiabilities.

Significant judgment is required toassesssuchmatterstodeterminetheprobabilityofoccurrenceofmaterialoutflow of economic resourcesandwhetheraprovisionshouldberecognizedoradisclosureshouldbemade. The management judgmentis also supportedwith legal advicein certain cases as consideredappropriate.

As the ultimate outcomes of themattersareuncertainandmaterialin nature, it is considered to be aKeyauditMatter.


We understood, assessedand tested the operatingeffectiveness of key controlssurrounding assessment oflitigations and discussed withthe management the recentdevelopmentsand the statusofthemateriallitigations;

We evaluated management’sassessment by understandingprecedents set in similar casesandassessedthereliabilityofthemanagement’s past estimatesandjudgments;

We reviewed the disclosuresmade by the respectivecompanies in the financialstatementsinthisregard;

We obtained representationletter fromthemanagementontheassessmentofthesematters.

ITsystemsandcontrolsoverfinancialreporting

The Parent and some othercompanies in the Group arefunctioningunderSAPenvironment.The system is fully integratedfinancial accounting and reportingsystem. This new EnterpriseResource Planning (ERP) systemreplaces traditional controls. We,therefore, identified IT system andcontrols over financial reportingas a Key Audit Matter because itsfinancial accounting and reportingsystems are reliant on IT systemsandITcontrols.


We assessed the complexity ofthe IT environment and designandoperatingeffectivenessofITgeneral controls over programdevelopment and changes,accesstoprogramsanddata;

WealsoobtaineddetailsofSAPgovernance framework, testedsample critical transactions andinterface controls between SAPenvironmentandotherauxiliarysystems.

ImpairmentofAssets

The Auditors of one of the groupcompanies have reported thatthe company, at the end of everyreporting period, assesses whetherthere is any indication that anasset may be impaired and if anysuch indication exists the companyestimates the recoverable amountof the asset. The determinationof recoverable amount, beingthe higher of fair value less coststo sell and value-in-use involvessignificant estimates, assumptionsandjudgements.

Thecompanyinpasthasrecognizedimpairment provisions. During theyear under review, the companyhas assessed impairment withrespect tocapitalwork inprogress.Impairment of assets is key auditarea considering the significant ofcarryingvalueandjudgements.

TheAuditors of the saidGroupcompanyhasstatedthat:

They obtained themanagement’s impairmentassessment, evaluated the keyassumptions by comparingthe samewith prior years datawhereveravailableandassessedthe disclosures in accordancewith IndAS36 ‘‘Impairment ofAssets’’

Information Other than the Consolidated Financial Statementsand Auditor’s Report Thereon

TheParentCompany’sBoardofDirectorsisresponsibleforthepreparationoftheotherinformation.Theotherinformationcomprisestheinformationincluded in the Board’s Report includingAnnexures to Board’s Report,Management Discussion and Analysis, Business Responsibility Report,Corporate Governance Report, Shareholder’s Information, but doesnot include the financial statements and auditor’s report thereon. TheBoard’sReportandotherinformationareexpectedtobemadeavailabletousafterthedateofthisauditor’sreport.

Our opinion on the consolidated financial statements does not coverthe other information and we do not express any form of assuranceconclusionthereon.

In connection with our audit of the consolidated financial statements,our responsibility is to read the other information identified abovewhenitbecomesavailableand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.

Whenwereadtheaforesaidreportsandinformation,ifweconcludethatthereismaterialmisstatementtherein,wearerequiredtocommunicatethemattertothosechargedwithgovernance.

Management’s Responsibility for the Consolidated FinancialStatements

TheParentCompany’sBoardofDirectorsisresponsibleforthemattersstated in Section 134(5) of the Act with respect to the preparation oftheseconsolidatedfinancialstatementsthatgiveatrueandfairviewofthe consolidated financial position, consolidated financial performanceincludingothercomprehensive income,consolidatedchanges inequityandconsolidatedcashflowsoftheGroupinaccordancewiththeIndASandaccountingprinciplesgenerallyacceptedinIndia.Thisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewith the provisions of the Act for safeguarding of the assets of theGroupandforpreventinganddetectingfraudsandotherirregularities;selection and application of appropriate accounting policies; makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementation and maintenance of adequate internal financial

99

controls, thatwereoperatingeffectively for ensuring theaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentation of the consolidated financial statements that give a trueand fair view and are free from material misstatement, whether duetofraudorerror,whichhavebeenusedforthepurposeofpreparationoftheConsolidatedFinancialStatementsbytheDirectorsoftheParentCompany,asaforesaid.

Inpreparingtheconsolidatedfinancialstatements,therespectiveBoardofDirectorsofthecompaniesincludedintheGroupandofitsassociatesandjointventuresareresponsibleforassessingtheabilityoftheGroupandofitsassociatesandjointventurestocontinueasagoingconcern,disclosing, as applicable,matters related to going concerns and usingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidateortoceaseoperations,orhasnorealisticalternativebuttodoso.

TherespectiveBoardofDirectorsofthecompaniesincludedintheGroupandofitsassociatesandjointventuresareresponsibleforoverseeingthefinancialreportingprocessof theGroupandof itsassociatesandjointventures.

Auditors’ResponsibilityfortheAuditoftheConsolidatedFinancialStatements

Our objectives are to obtain reasonable assurance aboutwhether theconsolidated financial statements as a whole are free from materialmisstatement,whetherdue to fraudorerror,and to issueanauditor’sreport that includesouropinion.Reasonableassurance ishigh levelofassurance, but is not a guarantee that audit conducted in accordancewith SAs will always detect a material misstatement when it exists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif, individuallyor in theaggregate, they could reasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisoftheseconsolidatedfinancialstatements.

As part of an audit in accordance with SAs, we exercise professionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:

• Identify and assess the risks of material misstatements of theconsolidated financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient and appropriate toprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatement resulting fromfraud ishigher than foroneresultingfrom error, as fraud may involve collusion, forgery, intentionalomissions,misrepresentations,ortheoverrideoftheinternalcontrol.

• Obtainanunderstandingof internal financial controls relevant totheaudit inordertodesignauditproceduresthatareappropriatein the circumstances. Under section 143(3)(i) of the Act, we arealsoresponsibleforexpressingouropiniononwhethertheParentCompanyhasadequate internal financialcontrolssysteminplaceandtheoperatingeffectivenessofsuchcontrols.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosuresmadebymanagement.

• Conclude on the appropriateness of management’s use of thegoingconcernbasisofaccountingand,basedontheauditevidenceobtained, whether a material uncertainty exists related to eventsor conditions thatmay cast significant doubt on theability of theGrouptocontinueasgoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreport to the related disclosures in the consolidated financialstatements or, if such disclosures are inadequate, to modify ouropinion.Ourconclusionsarebasedontheauditevidenceobtained

up to the date of our auditor’s report.However, future events orconditionsmay cause theGroup,associatesand joint ventures toceasetocontinueasagoingconcern.

• Evaluate the overall presentation, structure and content of theconsolidated financial statements, including the disclosure,and whether the standalone financial statements represent theunderlying transactionsandevents inamanner thatachieves fairpresentation.

• ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheGrouptoexpressanopinionon theConsolidatedFinancialStatements.Weareresponsibleforthedirection,supervisionandperformanceoftheauditofthefinancialstatementsofsuchentitiesorbusinessactivitiesincludedintheConsolidatedFinancialStatementsofwhichwearetheindependentauditors.Fortheotherentitiesorbusinessactivitiesincluded in the Consolidated Financial Statements, which havebeenauditedbyotherauditorsremainresponsibleforthedirection,supervisionandperformanceoftheauditscarriedoutbythem.Weremainsolelyresponsibleforourauditopinion.

We communicate with those charged with governance of the ParentCompanyandsuchotherentitiesincludedintheConsolidatedFinancialStatementsofwhichwearetheindependentauditorsregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantaudit findings, including any significant deficiencies in internal controlthatweidentifyduringouraudit.

We also provide those charged with governance with a statementthat we have complied with relevant ethical requirements regardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.

Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditoftheconsolidatedfinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublic interestbenefitsofsuchcommunication.

Other MattersWedidnotaudit thefinancialstatementsoffifteensubsidiaries,whosefinancial statements reflect total assets of ` 44,801.19 lacs as at 31stMarch2019and total revenuesof`35,585.37 lacsandnet lossaftertax(includingothercomprehensiveincome)`496.92fortheyearthenended,andofthreeassociatesandthreejointventures,whosefinancialstatementsreflecttheParentCompany’sshareofnetprofitof`959.67lacs as considered in the consolidated financial statements. Thesefinancial statementsareauditedbyotherauditorswhose reportshavebeenfurnishedtousbythemanagementandouropiniononconsolidatedfinancialstatementsinsofarasitrelatestotheamountsanddisclosuresincluded in respect of these subsidiaries, associates and joint venturesandourreportintermsofsub-section(3)ofSection143oftheAct,insofarasitrelatestoaforesaidsubsidiaries,associatesandjointventuresisbasedsolelyonthereportoftheotherauditors.

Our opinion on the consolidated financial statements above and ourreportonotherLegalandRegulatoryRequirementsbelowisnotmodifiedinrespectofthesematterswithrespecttoourrelianceontheworkdoneandthereportsoftheotherauditors.

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ReportonOtherLegalandRegulatoryRequirements

1 As requiredby section143(3)of theAct,basedonourauditandon the considerationof reports of theother auditors on separatefinancialstatementsofsubsidiaries,associatesandjointventuresasnotedinthe“OtherMatters”paragraphabove,wereport,toextentpossible,that:

a) We have sought and obtained all the information andexplanations which to the best of our knowledge and beliefwerenecessary for thepurposeofourauditof theaforesaidconsolidatedfinancialstatements;

b) In our opinion, proper books of account as required by lawrelatingtopreparationoftheaforesaidconsolidatedfinancialstatements have been kept so far as it appears from ourexaminationofthosebooksandthereportsofotherauditors;

c) TheConsolidatedBalanceSheet, theConsolidatedStatementofProfitandLoss,includingothercomprehensiveincome,theConsolidatedStatementofChangesinEquityandConsolidatedCashFlowStatementdealtwithbythisReportareinagreementwiththerelevantbooksofaccountmaintainedforthepurposeofpreparationoftheconsolidatedfinancialstatements;

d) Inouropinion,theaforesaidconsolidatedfinancialstatementscomplywith the IndianAccountingStandardsspecifiedundersection133oftheAct;

e) Onthebasisofthewrittenrepresentationsreceivedfromthedirectorsason31stMarch2019and takenon record in themeeting of the IRP of the Parent Company and the reportsof statutory auditors of its subsidiaries, associates and jointventures incorporated in India, none of the directors of theGroup is disqualified as on 31st March 2019, from beingappointedasadirectorintermssection164(2)oftheAct.

f) Withrespecttotheadequacyofinternalfinancialcontrolsoverfinancial reporting of the Parent Company and subsidiaries,associates and joint ventures incorporated in India andoperatingeffectivenessofsuchcontrols,ourseparatereportinannexure–Amaybereferred.

g) Inouropinionandtothebestofourinformationandaccordingto theexplanationsgiven tousandaccording to the reportsof the statutory auditors of the subsidiaries, associates andjoint ventures incorporated in India, remuneration paid bytheParentCompanyanditssubsidiaries,associatesandjointventuresincorporatedinIndia,toitsdirectorsduringtheyearisinaccordancewiththeprovisionsofsection197oftheAct.

h) WithrespecttotheothermatterstobeincludedintheAuditors’ReportinaccordancewithRule11oftheCompanies(AuditandAuditors) Rules, 2014, in our opinionand to thebest of ourinformationandaccordingtotheexplanationgiventous:

i. Theconsolidatedfinancialstatementsdisclosetheimpactof pending litigations on the consolidated financialpositionoftheGroup;

ii. TheGroupdidnothaveanymaterial foreseeable lossesonlong-termcontractsincludingderivativescontracts;

iii. There has been no delay in transferring the amounts,required tobe transferred to the InvestorEducationandProtectionFundbytheParentCompanyoritssubsidiaries,associatesandjointventuresincorporatedinIndia.

For P A R K & COMPANYCharteredAccountantsFRN:116825W

PRASHANT VORA PartnerMembershipNo.034514UDIN:19034514AAAAAA1255

MumbaiAugust1,2019

101

ANNEXURE–ATOTHEINDEPENDENTAUDITORS’REPORT

(Referred to in paragraph 1 (f) under ‘Report on Other Legal andRegulatoryRequirements’sectionofourreportofevendate)

Wehaveauditedtheinternal financialcontrolsoverfinancialreportingofAshapuraMinechem Limited [CompanyunderCorporate InsolvencyResolution Process (CIRP)] (“the Parent Company”) and its subsidiaries(the Parent Company and its subsidiaries together referred to as “theGroup”)andassociatesandjointventureswhichareincorporatedinIndiaasof31stMarch,2019InconjunctionwithourauditoftheconsolidatedfinancialstatementsoftheCompanytheyearendedonthatdate.

Management’sResponsibilityforInternalFinancialControls

The respective Board of Directors of the Parent Company and itssubsidiaries, associates and joint ventures which are incorporated inIndia,areresponsibleforestablishingandmaintaininginternalfinancialcontrols based on the internal control over financial reporting criteriaestablishedbytheParentCompanyconsideringtheessentialcomponentsof internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute ofCharteredAccountantsofIndia.Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthat were operating effectively for ensuring the orderly and efficientconductof itsbusiness, includingadherencetocompany’spolicies, thesafeguarding of its assets, the prevention anddetection of frauds anderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Group’s internalfinancial controls over financial reporting based on our audit. Weconducted our audit in accordance with the Guidance Note on Auditof Internal Financial Controls over Financial Reporting (the “GuidanceNote”) and the Standards onAuditing, issuedby ICAI anddeemed tobe prescribed under section 143(10) of the Companies Act, 2013, tothe extent applicable to an audit of internal financial controls, bothapplicable to an audit of Internal Financial Controls and, both issuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsandthe Guidance Note require that we comply with ethical requirementsandplanandperformtheaudit toobtain reasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceaboutthe adequacy of the internal financial controls system over financialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,and testingandevaluating thedesignandoperating effectiveness of internal control based on the assessed risk.Theproceduresselecteddependon theauditors’ judgement, includingthe assessment of the risks of material misstatement of the financialstatements,whetherduetofraudorerror.

Webelieve that theaudit evidencewehaveobtained is sufficient andappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.

MeaningofInternalFinancialControlsOverFinancialReporting

ACompany’sinternalfinancialcontroloverfinancialreportingisaprocessdesigned to provide reasonable assurance regarding the reliability offinancialreportingandthepreparationofconsolidatedIndASfinancialstatementsforexternalpurposesinaccordancewithgenerallyaccepted

accounting principles. A Company’s internal financial control overfinancialreportingincludesthosepoliciesandproceduresthat-

1. Pertain to themaintenance of records that, in reasonable detail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsoftheCompany;

2. Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of consolidated Ind AS financialstatements in accordance with generally accepted accountingprinciples,andthatreceiptsandexpendituresoftheCompanyarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsoftheCompany;and

3. Provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition, use, or disposition of theCompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

InherentLimitationsofInternalFinancialControlsOverFinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting, including the possibility of collusion or impropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsare subject to the risk that the internal financial control over financialreporting may become inadequate because of changes in conditions,or that the degree of compliancewith the policies or proceduresmaydeteriorate.

Opinion

Inouropinion,theParentCompanyanditssubsidiaries,associatesandjointventureswhicharecompanies incorporated in India,have, inallmaterial respects, an adequate internal financial controls system overfinancial reporting and such internal financial controls over financialreportingwereoperatingeffectivelyasat31stMarch,2019,basedonthe internal control over financial reporting criteria established by theGroupconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNote.

Other Matters

Ouraforesaidreportundersection143(3)(i)oftheActontheadequacyand operating effectiveness of the internal controls over financialreporting in so far as it relates to subsidiaries, associates and jointventures incorporated in India, is based solely on the correspondingreportsof thestatutoryauditorsofsuchcompanies.Ouropinionisnotmodifiedinrespectofthismatter.

For P A R K & COMPANYCharteredAccountantsFRN:116825W

PRASHANT VORA PartnerMembershipNo.034514UDIN:19034514AAAAAA1255

MumbaiAugust1,2019

102


(Indian` inlacs)

Particulars Note No.



ASSETS: Non-Current Assets Property,plantandequipment 2 22,013.45 29,361.56Capitalworkinprogress 2 888.13 2,141.62Investmentproperties 3 2,322.99 251.64Intangibleassets 4 72.54 117.22Goodwill 1,023.30 1,050.57FinancialassetsInvestments 5 17,596.65 26,609.74Loans 6 2,602.12 1,127.82Otherfinancialassets 7 427.98 741.89DefereedTaxAssets 8 1,062.59 934.05Othernon-currentassets 9 1,536.76 2,413.00

49,546.51 64,749.11 Current Assets Inventories 10 16,054.80 24,503.61FinancialassetsInvestments 5 378.71 125.50Tradereceivables 11 10,420.07 20,590.13Cashandcashequivalents 12 4,962.53 3,867.25Otherbankbalances 13 1,133.78 313.24Loans 6 10.46 22.44Otherfinancialassets 7 26.39 0.27Othercurrentassets 9 16,613.62 14,424.43

49,600.36 63,846.87 Total Assets 99,146.87 1,28,595.98

EQUITY AND LIABILITIES: Equity Equitysharecapital 14 1,739.72 1,739.72Otherequity 15 (37,845.67) (6,455.38)Non-controllinginterest 6,219.12 0.28

29,886.83) (4,715.38) Liabilities Non-current liabilities FinancialLiabilitiesBorrowings 16 15,317.16 10,635.50Otherfinancialliabilities - -Provisions 18 1,306.65 2,441.01Othernon-currentliabilities 19 372.51 14,036.13

16,996.32 27,112.64 Current liabilities FinancialLiabilitiesBorrowings 16 4,697.20 6,909.89Tradepayables 20TotaloutstandingduesofMicroandSmallEnterprises 36.18 1.72TotaloutstandingduesofcreditorsotherthanMicroandSmallEnterprises 11,672.15 16,043.73Otherfinancialliabilities 17 26,919.21 24,203.86Othercurrentliabilities 19 66,770.00 56,431.00Provisions 18 1,942.64 2,608.52

1,12,037.38 1,06,198.72 Total Liabilities 99,146.87 1,28,595.98



For P A R K & COMPANY Sd/- Sd/-Chartered Accountants AJAY PHALOD ARUN CHADHA DesignateChiefExceutiveofficer InterimResolutionProfessional Sd/- Sd/- Sd/-PRASHANT VORA ASHISH DESAI SACHIN POLKE Partner ChiefFinancialOfficer CompanySecretary&VicePresident

Mumbai MumbaiAugust1,2019 August1,2019

CONSOLIDATED BALANCE SHEET AS AT 31st MARCH, 2019

103


For P A R K & COMPANY Sd/- Sd/-Chartered Accountants AJAY PHALOD ARUN CHADHA DesignateChiefExceutiveofficer InterimResolutionProfessional Sd/- Sd/- Sd/-PRASHANT VORA ASHISH DESAI SACHIN POLKE Partner ChiefFinancialOfficer CompanySecretary&VicePresident


STATEMENT OF CONSOLIDATED PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH, 2019

(Indian` inlacs)

Particulars Note No. 2018-2019 2017-2018

REVENUE: Revenuefromoperations 21 62,136.59 79,436.43Otherincome 22 1,701.67 738.91

Total Revenue 63,838.26 80,175.34

EXPENSES: Costofmaterialsconsumed 23 19,377.97 22,139.65Purchasesoftradedgoods 6,985.90 7,251.25Changesininventories 24 (487.82) 1,969.32Employeebenefitsexpenses 25 5,913.60 7,358.73Financecosts 26 1,928.22 1,782.67Depreciationandamortisationexpenses 27 3,251.73 3,850.57Otherexpenses 28 31,179.55 40,418.44

TotalExpenses 68,149.15 84,770.63

Profit/(loss)beforeexceptionalitem,shareofnetprofitofinvestmentsaccountedforusingtheequitymethodandTax (4,310.89) (4,595.29)

ShareofnetprofitofJointVentures&associatesaccountedforusingthe 1,213.97 2,788.30equitymethod

Profit/(loss)beforeexceptionalitems (3,096.92) (1,806.99)

ExceptionalItems 33 (29,074.60) (1,512.20)

Profit/(loss)beforetax (32,171.52) (3,319.19)

TaxexpensesCurrenttax 9.1 730.00 1,660.50Earlieryears'tax 4.49 (78.48)Deferredtax (216.47) (384.64)

Profit/(loss)aftertax (32,689.54) (4,516.57)

Profit/(loss)attributabletonon-controllinginterest 412.45 (0.18)

Profit/(loss)fortheyear (33,101.99) (4,516.39)

Other Comprehensive income Itemsthatwillnotbereclassifiedtoprofitorloss a.Remeasurementsofdefinedbenefitplans (19.21) 119.63b.GainsoninvestmentsinequityinstrumentsclassifiedasFVOCI (32.92) -c.Taximpactsonabove (1.83) 1.03Itemsthatmaybereclassifiedtoprofitorlossd.Exchangedifferencesonforeigncurrencytranslation (197.50) (85.17)Othercomprehensiveincomefortheyear (251.46) 35.49

TotalComprehensiveIncomefortheyear (33,353.45) (4,480.90)

Basicanddilutedearningpershare 29 (38.05) (5.19)Facevaluepershare 2.00 2.00 Theaccompanyingnotesareintegralpartofthesefinancialstatements.

[COMPANYUNDERCORPORATEINSOLVENCYRESOLUTIONPROCESS(CIRP)]

104


CONSOLIDATEDCASHFLOWSTATEMENTFORTHEYEARENDED31stMARCH2019

(Indian` inlacs)

Particulars 2018-2019 2017-2018

A CASHFLOWFROMOPERATINGACTIVITIES:

Netprofitbeforetax (32,171.52) (3,319.20)

Adjustmentsfor-

Depreciationandamortization 3,251.73 3,850.57

Loss/(profit)onsaleofproperty,plant&equipment (221.20) (38.16)

Shareofprofitfromassociate/jointventure (1,213.97) (2,788.30)

Loss/(profit)oninvestments 252.61 (30.35)

Sundrybalanceswritten-offs 512.51 1,144.75

Exchangerateadjustments(net) 197.50 85.17

Dividend (137.02) (1.46)

Interest 1,366.52 1,466.92

Operatingprofitbeforeworkingcapitalchanges 4,008.68 3,689.14

Adjustmentsfor-

Tradeandotherreceivables 6,662.77 1,193.43

Inventories 8,448.81 872.26

Tradeandotherpayables (6,405.35) (2,863.29)

Cashgeneratedfromoperations 8,706.23 (797.60)

Directtaxespaid(includingdividendtax) (2,283.09) 10,431.82 (1,364.41) 1,527.13

NET CASH FROM OPERATING ACTIVITIES (21,739.70) (1,792.07)

B CASHFLOWFROMINVESTINGACTIVITIES:

Purchaseofproperty,plant&equipment (949.04) (3,464.79)

Adjustmentonaccountofderecognitionofasubsidiary 6,051.53 -

(Purchase)/saleofinvestments 9,688.33 371.33

Saleofproperty,plant&equipment 585.85 778.07

Dividendreceived 137.02 1.46

Interestreceived 534.27 285.54

NET CASH USED IN INVESTING ACTIVITIES 16,047.96 (2,028.41)

105

C CASHFLOWFROMFINANCINGACTIVITIES:

Proceedsfromloansborrowed(net) 2,468.97 5,383.46

Changeinnon-controllinginterest 6,218.84 -

Interestpaid (1,900.79) (1,752.46)

NET CASH USED IN FINANCING ACTIVITIES 6,787.02 3,631.00

NetIncreaseinCashandCashEquivalents 1,095.28 (189.48)

Cashandcashequivalentsasatbeginningoftheyear 3,867.25 4,056.73

Cashandcashequivalentsasatendoftheyear 4,962.53 3,867.25


For P A R K & COMPANY Sd/- Sd/-

Chartered Accountants AJAY PHALOD ARUN CHADHA

DesignateChiefExceutiveofficer InterimResolutionProfessional

Sd/- Sd/- Sd/-

PRASHANT VORA ASHISH DESAI SACHIN POLKE

Partner ChiefFinancialOfficer CompanySecretary&VicePresident

Mumbai Mumbai

August1,2019 August1,2019

106


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31st MARCH, 2019COMPANYUNDERCORPORATEINSOLVENCYRESOLUTIONPROCESS(CIRP)

A. SHARE CAPITAL

(Indian`inLacs)

Particulars 31st March 2019

31st March 2018

Atthebeginningoftheyear 1,739.72 1,739.72

Changesinequitysharecapitalduringtheyear - -

Attheendoftheyear 1,739.72 1,739.72

B. OTHER EQUITY (Indian`inLacs)

ParticularsCapital

redemption reserve

Retained earnings

Security premium

Other Comprehensive Income

TotalNet gain/(loss)onfairvalueofequity

instruments

Exchangedifferencesonforeigncurrency

translation offoreignoperations

Net gain/(loss)onfairvalueofdefinedbenefit

plan

As at 1st April, 2017 3.90 (20,012.79) 17,734.59 511.97 77.21 (288.25) (1973.37)

Profitfortheyear - (4,516.39) - - - - (4516.39)

Exchangedifferencesonforeigncurrencytranslation

- - - - (85.17) - 85.17

Othercomprehensiveincomefortheyear(netoftax)

- - - - - 120.66 120.66

Dividenddistributiontax - (1.11) - - - - (1.11)

Asat31stMarch,2018 3.90 (24,520.29) 17,734.59 511.97 (7.96) (167.59) (6,455.38)

Profitfortheyear - (33,101.99) (33101.99)AdjustmentonaccountofDerecognitionofInvestmentinSubsidaries/JointVentures

(1,833.31) 15.54 115.43 1964.28Exchangedifferencesonforeigncurrencytranslation

- (197.50) (197.50)

Othercomprehensiveincomefortheyear - - - (32.92) (21.04) (53.96)

Dividenddistributiontax - (1.12) - - - (1.12)

As at 31st March, 2019 3.90 (55800.09) 17,734.59 479.05 (189.92) (73.20) (37,845.67)

Theaccopanyingnotesareintegralpartofthesefinancialstatements.


For P A R K & COMPANY Sd/- Sd/-Chartered Accountants AJAY PHALOD ARUN CHADHA DesignateChiefExceutiveofficer InterimResolutionProfessional

Sd/- Sd/- Sd/-PRASHANT VORA ASHISH DESAI SACHIN POLKE Partner ChiefFinancialOfficer CompanySecretary&VicePresident

Mumbai MumbaiAugust12019 August12019

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Notesformingpartofthefinancialstatementsfortheyearended31st March 2019 COMPANY INFORMATION

Ashapura Minechem Limited [CompanyunderCorporateInsolvencyResolutionProcess(CIRP)](the‘ParentCompany’)isapubliclimitedcompanydomiciledinIndiaandincorporatedon19thFebruary,1982undertheprovisionsoftheCompaniesActapplicableinIndia.TheGroupisengagedinthemining,manufacturingandtradingofvariousmineralsanditsderivativeproducts.TheregisteredofficeoftheCompanyislocatedatJeevanUdyogBuilding,3rdFloor,DNRoad,Fort,Mumbai–400001.TheequitysharesoftheParentCompanyarelistedonBombayStockExchange(BSE)aswellasNationalStockExchange(NSE).

TheParentCompanyisunderCorporateInsolvencyResolutionProcessw.e.f.15thMarch,2019andismanagedbytheInterimResolutionProfessional(“IRP”)asappointedbytheHon.NationalCompanyLawTribunal.(Refernoteno.40)

Theconsolidated financial statements (‘the financial statements”)wereauthorized for issueasapprovedon1stAugust,2019by the IRPand themanagementcommitteeconsistingoftheDesignateCEO,theCompanySecretary&VicePresidentandtheChiefFinancialOfficer.1. BASIS OF PREPARATION, MEASUREMENT AND SIGNIFICANT ACCOUNTING POLICIES

1.1 Basisofpreparationandmeasurement

TheseconsolidatedfinancialstatementshavebeenpreparedinaccordancewiththeIndianAccountingStandards(hereinafterreferredtoasthe‘IndAS’)asnotifiedbyMinistryofCorporateAffairspursuanttosection133oftheCompaniesAct,2013andtheCompanies(IndianAccountingStandards)Rules,2015,asapplicable.

Theconsolidatedfinancialstatementshavebeenpreparedonaccrualandgoingconcernbasis.Theaccountingpoliciesareappliedconsistentlytoalltheperiodspresentedinthefinancialstatements,includingthepreparationoftheopeningIndASBalanceSheetasat1stApril,2016beingthedateoftransitiontoIndAS.AllassetsandliabilitieshavebeenclassifiedascurrentornoncurrentaspertheGroup’snormaloperatingcycleandothercriteriaassetoutintheDivisionIIofScheduleIIItotheCompaniesAct,2013.TheCompanyconsiders12monthsasnormaloperatingcycle.

ConsolidatedFinancialStatementsarepresentedinIndianRupees(INR)whichistheGroup’sfunctionalcurrency,andallthevaluesareroundedtothenearestlacsexceptotherwiseindicated.

1.2 Basisforconsolidation

Theconsolidatedfinancialstatementsarepreparedusinguniformaccountingpoliciesforliketransactionsandothereventsinsimilarcircumstances.Ifamemberofthegroupusesaccountingpoliciesotherthanthoseadoptedintheconsolidatedfinancialstatements,appropriateadjustmentsaremadetothatgroupmember’sfinancialstatementsinpreparingtheconsolidatedfinancialstatementstoensureconformitywiththegroup’saccountingpolicies.

a. Thefinancialstatementsofthesubsidiaries,jointventuresandassociatesusedintheconsolidationaredrawnuptothesamereportingdateasthatoftheparentcompany,i.e.yearended31stMarch2019exceptforanoverseasjointventurecompanies,SoharAshapuraChemicalsLLCandAshapuraDhofarResourcesLLCandanoverseasassociate,HudsonMPASdnBhd–Malaysiawheretheaccountsarelastdrawnupto31stDecember,2018.

b. Asstatedinnoteno.42and45,someofcompaniesceasedtobethesubsidiariesandjointventuresduringtheyear.Accordingly,theseconsolidatedfinancialstatementsincludethefinancialsoftheseentitiestillthedateofdateofderecognition.

c. TheconsolidatedfinancialstatementspresenttheconsolidatedaccountsofAshapuraMinechemLimitedwithitsfollowingsubsidiaries,jointventuresandassociates.

Particulars CountryofIncorporation

%votingpowerheldasat31stMarch2019

(eitherdirectlyorthroughsubsidiaries)

%votingpowerheldasat31stMarch2018

(eitherdirectlyorthroughsubsidiaries

Subsidiaries:

1 AshapuraAluminumLimited India 100.00 100.00

2 AshapuraClaytechLimited India 99.44 99.44

3 AshapuraConsultancyServicePrivateLimited India 100.00 100.00

4 AshapuraHoldings(UAE)FZE UAE 100.00 100.00

5 AshapuraInternationalLimited India - 100.00

6 AshapuraMaritmeFZE UAE 100.00 100.00

7 AshapuraMinechem(UAE)FZE UAE 100.00 100.00

8 AshapuraGuineaResourcesSARL Guinea - 100.00

9 BombayMineralsLimited India 52.14 100.00

10 PeninsulaPropertyDevelopersPrivateLimited India 100.00 100.00

11 PrashanshaCeramicsLimited India 100.00 100.00

12 PTAshapuraResources Indonesia - 100.00

13 ShardaConsultancyPrivateLimited India 100.00 100.00

14 AshapuraResourcesPrivateLimited India 100.00 100.00

15 PTAshapuraBentoclayResources Indonesia 100.00 100.00

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JointVentures:

1 AshapuraMidgulfNV Belgium 50.00 50.00

2 AshapuraPerfoclayLimited India - 50.00

3 SoharAshapuraChemicalsLLC Oman 40.00 40.00

4 AshapuraDhofarResourcesLLC Oman 70.00 -

5 APLValueclayPrivateLimited India - 50.00

Associates:

1 AshapuraArcadiaLogisticPrivateLimited India 50.00 50.00

2 HudsonMPASdnBhd Malaysia 25.00 25.00

3 OrientAbrasivesLimited India 36.00 39.10

Subsidiaries

a. AsubsidiaryisanentityoverwhichtheCompanyhascontrol.TheCompanycontrolsanentitywhentheCompanyisexposedto,orhasrightsto,variablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthosereturnsthroughitspowertodirecttherelevantactivitiesoftheentity.SubsidiariesarefullyconsolidatedfromthedateonwhichcontrolistransferredtotheCompany.

b. TheCompanycombinesthefinancialstatementsoftheparentanditssubsidiarycompaniesonalinebylinebasis,addingtogetherlikeitemsofassets,liabilities,equity,incomeandexpenses.Inter-companytransactions,balancesandunrealizedgainsontransactionsamongtheGroupareeliminated.Unrealizedlossesarealsoeliminatedunlessthetransactionprovidesevidenceofanimpairmentofthetransferredasset.AccountingpoliciesofsubsidiariesareconsistentwiththepoliciesadoptedbytheCompany.

c. Achangeintheownershipinterestofasubsidiary,withoutlossofcontrol,isaccountedforasanequitytransaction.IftheCompanylosescontroloverasubsidiary,itderecognizestheassets,liabilities,carryingamountofanynon-controllinginterestsandthecumulativetranslationdifferencesrecordedinequity.

Joint Venture Companies

a. Ajointventureisajointarrangementwherebypartiesthathavejointcontrolofthearrangementhaverightstothenetassetsofthearrangement.Interestsinjointventuresareinitiallyrecognizedatcostandthereafteraccountedforusingtheequitymethod.

b. Undertheequitymethodofaccounting,theinvestmentsareinitiallyrecognizedatcostandadjustedthereaftertorecognizetheGroup’sshareofthepost-acquisitionprofitsorlossesandothercomprehensiveincomeoftheinvesteeintheStatementofProfitandLossandOtherComprehensiveIncomeof theGroup.Distributions receivedor receivable from joint ventures are recognized as a reduction in the carrying amount of theinvestment.

c. UnrealizedgainsontransactionsbetweentheGroupanditsjointventuresareeliminatedtotheextentoftheGroup’sinterestinthejointventures.

d. Afterapplicationoftheequitymethod,ateachreportingdate,theGroupdetermineswhetherthereisobjectiveevidencethattheinvestmentinthejointventureisimpaired.Ifthereexistssuchevidences,theGroupdeterminesextentofimpairmentandthenrecognizesthelossinthestatementofprofit&loss.

e. Uponlossofsignificantjointcontroloverthejointventure,theGroupmeasuresandrecognizesanyretainedinvestmentatitsfairvalue.Anydifferencebetweenthecarryingamountofthejointventureandthefairvalueoftheretainedinvestmentandproceedsfromthedisposal isrecognizedinprofitandloss.

Associates

a. AnassociateisanentityoverwhichtheGrouphassignificant influence.Significant influenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvestee,butisnotcontrolorjointcontroloverthosepolicies.

b. Theconsiderationsmadeindeterminingwhethersignificantinfluenceorjointcontrolaresimilartothosenecessarytodeterminecontroloverthesubsidiaries.

c. TheGroup’sinvestmentsinitsassociateareaccountedforusingtheequitymethod.Undertheequitymethod,theinvestmentinanassociateisinitiallyrecognisedatcost.ThecarryingamountoftheinvestmentisadjustedtorecognisedchangesintheGroup’sshareofnetassetsoftheassociatesincetheacquisitiondate.Goodwillrelatingtotheassociateisincludedinthecarryingamountoftheinvestmentsandisnottestedforimpairmentindividually.

d. Thestatementofprofit&lossreflectstheGroup’sshareoftheresultsoftheoperationsoftheassociate.AnychangeinOCIofthoseinvesteesispresentedaspartof theGroup’sOCI. Inaddition,when therehasbeena change recogniseddirectly in theequityof theassociate, theGrouprecognisesitsshareofanychanges,whenapplicable,inthestatementofchangesinequity.UnrealisedgainsandlossesresultingfromtransactionsbetweentheGroupintheassociateareeliminatedtotheextentoftheinterestintheassociate.

e. IfGroupshareoflossesofanassociateexceedsitsinterestintheassociate(whichincludesanylongterminterestthat,insubstance,formpartoftheGroupsnetinvestmentintheassociate),theGroupdiscontinuesrecognisingitsshareoffurtherlosses.AdditionallossesarerecognisedonlytotheextentthattheGrouphasincurredlegalorconstructiveobligationsormadepaymentsonbehalfoftheassociate.Iftheassociatesubsequentlyreportsprofits,theGroupresumesrecognisingitsshareofthoseprofitsonlyafteritsshareoftheprofitsequalstheshareofthelossesnotrecognised.

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f. ThefinancialstatementsoftheassociatearepreparedforthesamereportingperiodastheGroup.Whennecessary,adjustmentsaremadetobringtheaccountingpoliciesinlinewiththoseoftheGroup.

g. Afterapplicationoftheequitymethod,theGroupdetermineswhetherit isnecessarytorecogniseinimpairment lossonits investmentinitsassociate.Ateachreportingdate,theGroupdetermineswhetherthereisobjectiveevidencethattheinvestmentintheassociateisimpaired.Ifthereissuchevidence,theGroupcalculatestheamountsofimpairmentasthedifferencebetweentherecoverableamountoftheassociateanditscarryingvalue,andthenrecognisesthelossas‘shareofprofitofanassociate’intheconsolidatedstatementofprofit&loss.

h. Uponlossofsignificantinfluenceovertheassociate,theGroupmeasuresandrecognisesanyretainedinvestmentatitsfairvalue.Anydifferencebetween thecarryingamountof theassociateupon lossofsignificant influenceor jointcontroland the fairvalueretained investmentsandproceedsfromitsdisposalisrecognisedinprofitorloss.

1.3 Significantaccountingpolicies:

a. Systemofaccounting TheGroupfollowsmercantilesystemofaccountingandrecognises incomeandexpenditureonanaccrualbasisexcept incaseofsignificant

uncertainties.Thesefinancialstatementsarepreparedunderthehistoricalcostconventionunlessotherwiseindicated.

b. Key accounting estimates

Thepreparationofthefinancialstatements,inconformitywiththerecognitionandmeasurementprinciplesofIndAS,requiresthemanagementtomake estimates andassumptions in theapplicationof accountingpolicies that affect the reportedamounts of assets, liabilities, income,expensesanddisclosureofcontingentliabilitiesasatthedateoffinancialstatementsandtheresultsofoperationduringthereportedperiod.Althoughtheseestimatesarebaseduponmanagement’sbestknowledgeofcurrenteventsandactions,actualresultscoulddifferfromtheseestimateswhicharerecognisedintheperiodinwhichtheyaredetermined.

TheGroupbaseditsassumptionsandestimatesonparametersavailablewhenthefinancialstatementswereprepared.Existingcircumstancesandassumptionsaboutfuturedevelopments,however,maychangeduetomarketchangesorcircumstancesarisingthatarebeyondthecontroloftheGroup.Suchchangesarereflectedinthefinancialstatementsintheperiodinwhichchangesaremadeand,ifmaterial,theireffectsaredisclosedinthenotestothefinancialstatements.

c. Property,plantandequipment

(i) Property,plantandequipmentarestatedathistoricalcostofacquisitionincludingattributableinterestandfinancecosts,ifany,tillthedateofacquisition/installationoftheassetslessaccumulateddepreciationandaccumulatedimpairmentlosses,ifany.

(ii) Subsequentexpenditure relating toproperty,plantandequipment is capitalisedonlywhen it isprobable that futureeconomicbenefitsassociatedwiththeitemwillflowtotheGroupandthecostoftheitemcanbemeasuredreliably.Allotherrepairsandmaintenancecostsarechargedtothestatementofprofitandlossasincurred.

(iii) Thecostandrelatedaccumulateddepreciationareeliminatedfromthefinancialstatements,eitherondisposalorwhenretiredfromactiveuseandtheresultantgainorlossarerecognisedinthestatementofprofitandloss.

(iv) Capitalwork-in-progress,representingexpenditureincurredinrespectofassetsunderdevelopmentandnotreadyfortheirintendeduse,arecarriedatcost.Costincludesrelatedacquisitionexpenses,constructioncost,relatedborrowingcostandotherdirectexpenditure.

(v) OntransitiontoIndAS,theGrouphasoptedtocontinuewiththecarryingvaluesmeasuredunderthepreviousGAAPasat1stApril2016ofitsproperty,plantandequipmentandusethatcarryingvalueasthedeemedcostoftheproperty,plantandequipmentonthedateoftransitioni.e.1stApril2016.

(vi) TheGroupdepreciatesproperty,plantandequipmentovertheestimatedusefullifeprescribedinScheduleIIoftheCompaniesAct,2013fromthedatetheassetsarereadyforintendeduseafterconsideringtheresidualvalue.

(vii) Intangibleassetsmainlyrepresentimplementationcostforsoftwareandotherapplicationsoftwareacquired/developedforin-houseuse.Theseassetsarestatedatcost.Costincludesrelatedacquisitionexpenses,relatedborrowingcosts,ifany,andotherdirectexpenditure.

(viii)Itemsofstoresandsparesthatmeetthedefinitionofproperty,plantandequipmentarecapitalizedatcostanddepreciatedovertheirusefullife.Otherwise,suchitemsareclassifiedasinventories.

d. Investments properties

a. Propertywhich isheld for long-termrentalor for capitalappreciationorboth is classifiedas InvestmentProperty. Investmentpropertiesaremeasuredinitiallyatcost,includingtransactioncosts.Subsequenttoinitialrecognition,investmentpropertiesarestatedatcostlessaccumulateddepreciationandaccumulatedimpairmentloss,ifany.

b. Investmentpropertiescurrentlycompriseofplotoflandsandbuilding.

c. Investmentpropertiesarederecognisedeitherwhentheyhavebeendisposedoforwhentheyarepermanentlywithdrawnfromuseandnofutureeconomicbenefitisexpectedfromtheirdisposal.Thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetisrecognisedinstatementofprofitandlossintheperiodinwhichthepropertyisderecognised.

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e. Goodwill

Goodwillisanassetrepresentingthefutureeconomicbenefitsarisingfromotherassetsacquiredinabusinesscombinationthatarenotindividuallyidentifiedandseparatelyrecognised.Goodwillisinitiallymeasuredatcost,beingtheexcessoftheconsiderationtransferredoverthenetidentifiableassetsacquiredandliabilitiesassumed,measuredinaccordancewithIndAS-103BusinessCombination.

Goodwillisconsideredtohaveindefiniteusefullifeandhenceisnotsubjecttoamortisationbuttestedforimpairmentatleastannually.Afterinitialrecognition,goodwillismeasuredatcostlessanyaccumulatedimpairmentlosses.

f. Investmentsandfinancialassets Otherinvestmentsandfinancialassets

FinancialassetsarerecognisedwhentheGroupbecomesapartytothecontractualprovisionsoftheinstrument.

Oninitialrecognition,afinancialassetisrecognisedatfairvalue.Incaseoffinancialassetswhicharerecognisedatfairvaluethroughprofitandloss(FVTPL),itstransactioncostsarerecognisedinthestatementofprofitorloss.Inothercases,thetransactioncostsareattributedtotheacquisitionvalueoffinancialasset.

Financialassetsaresubsequentlyclassifiedmeasuredat– - amortisedcost - fairvaluethroughprofitandloss(FVTPL) - fairvaluethroughothercomprehensiveincome(FVOCI).

FinancialassetsarenotreclassifiedsubsequenttotheirrecognitionexceptifandintheperiodtheGroupchangesitsbusinessmodelformanagingfinancialassets.

FinancialassetisderecognisedonlywhentheGrouphastransferredtherightstoreceivecashflowsfromthefinancialasset.Wheretheentityhastransferredtheasset,theGroupevaluateswhetherithastransferredsubstantiallyallrisksandrewardsofownershipofthefinancialasset.Insuchcases,financialassetisderecognised.

InaccordancewithIndAS109,theGroupappliestheexpectedcreditloss(”ECL”)modelformeasurementandrecognitionofimpairmentlossonfinancialassetsandcredit riskexposures.TheGroupfollows ‘simplifiedapproach’ forrecognitionof impairment lossallowanceontradereceivables.SimplifiedapproachdoesnotrequiretheGrouptotrackchangesincreditrisk.Rather,itrecognisesimpairmentlossallowancebasedonlifetimeECLateachreportingdate,rightfromits initialrecognition.Forrecognitionof impairmentlossonotherfinancialassetsandriskexposure,theGroupdeterminesthatwhethertherehasbeenasignificantincreaseinthecreditrisksinceinitialrecognition.

g. Inventories

(i) Rawmaterialsandstoresandsparesarevaluedatweightedaveragecost includingallchargesinbringingthematerialstothepresentlocation.

(ii) Finishedandsemi-finishedgoodsarevaluedatthecostplusdirectexpensesandappropriatevalueofoverheadsornetrealizablevalue,whicheverislower.

(iii) Obsolete,slowmovinganddefectiveinventoriesarewrittenoff/valuedatnetrealisablevalueduringtheyearasperpolicyconsistentlyfollowedbytheGroup.

h. Cashandcashequivalents

Cashandcashequivalentsinthebalancesheetcomprisesofbalancewithbanksandcashonhandandshorttermdepositswithanoriginalmaturityofthreemonthorless,whicharesubjecttoinsignificantrisksofchangesinvalue.

i. Trade receivables

Areceivableisclassifiedasatradereceivableifitisinrespectoftheamountdueonaccountofgoodssoldorservicesrenderedinthenormalcourseofbusiness.Tradereceivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasurednetofanyexpectedcreditlosses.

j. Equityinstruments

AnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheCompanyafterdeductingallofitsliabilities.Equityinstrumentswhichareissuedforcasharerecordedattheproceedsreceived,netofdirectissuecosts.

k. Financialliabilities

i. FinancialliabilitiesarerecognisedwhentheGroupbecomesapartytothecontractualprovisionsoftheinstrument.Financialliabilitiesareinitiallymeasuredattheamortisedcostunlessatinitialrecognition,theyareclassifiedasfairvaluethroughprofitandloss.

ii. FinancialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheEffectiveInterestRate(EIR)method.Financialliabilitiescarriedat

fairvaluethroughprofitandlossaremeasuredatfairvaluewithallchangesinfairvaluerecognisedinthestatementofprofitandloss.

iii. Financialliabilitiesarederecognisedwhentheobligationspecifiedinthecontractisdischarged,cancelledorexpires.

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l. Trade payables

Apayableisclassifiedasatradepayableifitisinrespectoftheamountdueonaccountofgoodspurchasedorservicesreceivedinthenormalcourseofbusiness.TheseamountsrepresentliabilitiesforgoodsandservicesprovidedtotheGrouppriortotheendofthefinancialyearwhichareunpaid.Theseamountsareunsecuredandareusuallysettledasperthepaymentterms.Tradeandotherpayablesarepresentedascurrentliabilitiesunlesspaymentisnotduewithin12monthsafterthereportingperiod.

m. Revenue recognition

i. RevenuefromcontractwithcustomersisrecognisedwhentheGroupsatisfiesperformanceobligationbytransferringpromisedgoodsandservicestothecustomer.Performanceobligationsaresatisfiedatapointoftimeoroveraperiodoftime.Performanceobligationssatisfiedoveraperiodoftimearerecognisedasperthetermsofrelevantcontractualagreements/arrangements.Performanceobligationsaresaidtobesatisfiedatapointoftimewhenthecustomerobtainscontrolsoftheasset.

ii. Revenueismeasuredbasedontransactionprice,whichisthefairvalueoftheconsiderationreceivedorreceivable,statednetofdiscounts,returnandgoods&servicetax.Transactionpriceisrecognisedbasedonthepricespecifiedinthecontract,netofdiscounts.

iii. Domesticsalesareaccountedforondispatchfromthepointofsalecorrespondingtotransferofsignificantrisksandrewardsofownershiptothebuyer.

iv. Exportsalesarerecognisedonthedateofthemate’sreceipt/shippedonboardsignifyingtransferofrisksandrewardsofownershiptothebuyeraspertermsofsalesandinitiallyrecordedattherelevantexchangeratesprevailingonthedateofthetransaction.

v. Export incentives are accounted for on export of goods if the entitlements can be estimatedwith reasonable accuracy and conditionsprecedenttoclaimarereasonablyexpectedtobefulfilled.

vi. Revenueinrespectofotherincomeisrecognisedonaccrualbasis.However,wheretheultimatecollectionofthesamelacksreasonablecertainty,revenuerecognitionispostponedtotheextentofuncertainty.

n. Indirecttaxes

Exciseduty(applicabletill30thJune2017)inrespectofgoodsmanufacturedbytheGroupisaccountedforatthetimeofremovalofgoodsfromfactoryforsale.

PurchaseofgoodsandfixedassetsareaccountedfornetofGSTinputcredits.Customdutypaidonimportofmaterialsisdealtwithinrespectivematerialaccounts.

o. Miningexpenses

Expensesincurredonminingincludingremovalofoverburdenofminesarechargedtotheprofit&lossstatementasminingcostonthebasisofquantityofmineralsminedduringtheyear,overburdenofremovalandminingbeingcarriedoutconcurrentlyandrelativelywithinashortperiodoftime.Miningrestorationexpensesareannuallyreviewedandprovidedfor.

p. Researchanddevelopmentexpensesandreceipts

Revenueexpenditureonresearchanddevelopment ischargedagainst theprofit for theyear inwhich it is incurred.Capitalexpenditureonresearchanddevelopmentisshownasanadditiontothefixedassetsandisdepreciatedonthesamebasisasotherfixedassets.Receiptsofresearch&developmentcentreoftheGroupareaccountedforasrevenuereceipts.

q. Foreigncurrencytransactions

(i) ItemsincludedinthefinancialstatementsaremeasuredusingthecurrencyofprimaryeconomicenvironmentinwhichtheGroupoperates(“thefunctionalcurrency”).ThefinancialstatementsarepresentedinIndianRupee(INR),whichistheCompany’sfunctionalandpresentationcurrency.

(ii) Foreigncurrencytransactionsareinitiallyrecordedinthereportingcurrencyatforeignexchangerateonthedateofthetransaction.

(iii) Monetaryitemsofcurrentassetsandcurrentliabilitiesdenominatedinforeigncurrenciesarereportedusingtheclosingrateatthereportingdate.Non-monetaryitemswhicharecarriedintermsofhistoricalcostdenominatedinaforeigncurrencyarereportedusingtheexchangerateatthedateofthetransaction.

(iv) Thegainorlossondecrease/increaseinreportingcurrencyduetofluctuationsinforeignexchangeratesarerecognisedinthestatementofprofitorloss.

r. Employeebenefitexpenses

(i) Contributionstodefinedcontributionschemessuchasprovidentfund,employees’stateinsurance,labourwelfarefundetc.arechargedasanexpensebasedontheamountofcontributionrequiredtobemadeasandwhenservicesarerenderedbytheemployees.ThesebenefitsareclassifiedasdefinedcontributionschemesastheGrouphasnofurtherobligationsbeyondthemonthlycontributions.

(ii) TheGroupprovides forgratuitywhich isadefinedbenefitplan, the liabilitiesofwhicharedeterminedbasedonvaluations,asat thereportingdate,madebyanindependentactuaryusingtheprojectedunitcreditmethod.Re-measurementcomprisingofactuarialgainsandlosses,inrespectofgratuityarerecognisedintheothercomprehensiveincomeintheperiodinwhichtheyoccur.TheclassificationoftheCompany’sobligationintocurrentandnon-currentisaspertheactuarialvaluationreport.

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(iii) Theemployeesareentitledtoaccumulateleavesubjecttocertainlimits,forfutureencashmentandavailment,asperthepolicyoftheGroup.Theliabilitytowardssuchunutilisedleaveasattheendofeachbalancesheetdateisdeterminedbasedonindependentactuarialvaluationandrecognisedinthestatementofprofitandloss.

s. Leases

Aleaseisclassifiedattheinceptiondateasafinanceleaseoranoperatinglease.Leasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownershiptothelessee.Allotherleasesareclassifiedasoperatingleases.TheGrouphasidentifiedallitsleasesasoperatingleases.

a) Assetstakenonoperatinglease Operatingleasepaymentsarerecognisedasanexpenseinthestatementofprofitandlossonastraight-linebasisovertheleaseterm.

b) Assetsgivenonoperatinglease Assetssubjecttooperatingleasesareincludedinfixedassets.Rentalincomefromoperatingleasesisrecognisedinthestatementofprofit

andlossonastraight-linebasisovertheleaseterm.Costsincludingdepreciationarerecognisedasanexpenseinthestatementofprofitandloss.

t. Borrowing costs

BorrowingcostsconsistofinterestandothercoststhattheGroupincursinconnectionwiththeborrowingoffunds.Also,theeffectiveinterestrateamortisationisincludedinfinancecosts.Borrowingcostsrelatingtoacquisition,constructionorproductionofaqualifyingassetwhichtakessubstantialperiodoftimetogetreadyforitsintendeduseareaddedtothecostofsuchassettotheextenttheyrelatetotheperiodtillsuchassetsarereadytobeputtouse.Allotherborrowingcostsareexpensedinthestatementofprofitandlossintheperiodinwhichtheyoccur.

u. Impairmentofnonfinancialassets

Asateachreportingdate,theGroupassesseswhetherthereisanindicationthatanon-financialassetmaybeimpairedandalsowhetherthereisanindicationofreversalofimpairmentlossrecognisedinthepreviousperiods.Ifanyindicationexists,orwhenannualimpairmenttestingforanassetisrequired,theGroupdeterminestherecoverableamountandimpairmentlossisrecognisedwhenthecarryingamountofanassetexceedsitsrecoverableamount.Iftheamountofimpairmentlosssubsequentlydecreasesandthedecreasecanberelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognised,thenthepreviouslyrecognisedimpairmentlossisreversedthroughthestatementofprofitandloss.

v. Taxesonincome

Income taxexpense comprises current tax expenseand thedeferred taxduring the year.Currentanddeferred taxesare recognised in thestatementofprofitandloss,exceptwhentheyrelatetoitemsthatarerecognisedinothercomprehensiveincomeordirectlyinequity,inwhichcase,thecurrentanddeferredtaxarealsorecognisedinothercomprehensiveincomeordirectlyinequity,respectively.

CurrentincometaxisrecognisedbasedontheestimatedtaxliabilitycomputedaftertakingcreditforallowancesandexemptionsinaccordancewiththeIncomeTaxAct,1961.Currentincometaxassetsandliabilitiesaremeasuredattheamountexpectedtoberecoveredfromorpaidtothetaxationauthorities.Thetaxratesandtaxlawsusedtocomputetheamountarethosethatareenactedorsubstantivelyenacted,atthereportingdate.

Deferredtaxisrecognisedontemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesinthefinancialstatementsandthecorrespondingtaxbasesusedinthecomputationoftaxableprofit.

Deferredtaxliabilitiesaregenerallyrecognisedforalltaxabletemporarydifferences.Deferredtaxassetsarerecognizedforunusedtaxlosses,unusedtaxcreditsanddeductibletemporarydifferencestotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichtheycanbeused.Incaseofuncertaintyofreversalofthedeferredtaxassetsorwhenitisnolongerprobablethatsufficienttaxableprofitswillbeavailableintheforeseeablefuture,deferredtaxassets,asamatterofprudence,arenotrecognised.

Thecarryingamountofdeferredtaxisreviewedateachreportingdateandmeasuredatthetaxratesthatareexpectedtobeappliedtotemporarydifferenceswhentheyreverse,usingtaxratesenactedorsubstantivelyenactedatthereportingdate.ThemeasurementofdeferredtaxreflectsthetaxconsequencesthatwouldfollowfromthemannerinwhichtheCompanyexpects,atthereportingdate,torecoverorsettlethecarryingamountofitsassetsandliabilities.

w. Provisions and contingent liabilities

TheGroupcreatesaprovisionwhenthereispresentobligation,legalorconstructive,asaresultofpasteventsthatprobablyrequiresanoutflowofresourcesandareliableestimatecanbemadeoftheamountofobligation.

Contingent liabilitiesaredisclosedinrespectofpossibleobligationsthatarisefrompastevents,whoseexistencewouldbeconfirmedbytheoccurrenceornon-occurrenceofoneormoreuncertainfutureevents.Contingentassetsareneitherrecognisednordisclosedinthefinancialstatements.

x. EarningsPerShare

(i) BasicearningspershareiscomputedbydividingthenetprofitorlossfortheperiodattributabletotheequityshareholdersoftheGroupbytheweightedaveragenumberofequitysharesoutstandingduringtheperiod.Theweightedaveragenumberofequitysharesoutstandingduringtheperiodandforallperiodspresentedisadjustedforevents,suchasbonusshares,otherthantheconversionofpotentialequitysharesthathavechangedthenumberofequitysharesoutstanding,withoutacorrespondingchangeinresources.

(ii) Forthepurposeofcalculatingdilutedearningpershare,thenetprofitorlossfortheperiodattributabletotheequityshareholdersandtheweightedaveragenumberofequitysharesoutstandingduringtheperiodisadjustedfortheeffectsofalldilutivepotentialequityshares.

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y. Offsettinginstruments

Financialassetsandliabilitiesareoffsetandthenetamountreportedinthebalancesheetwhenthereisalegallyenforceablerighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasisorrealisetheassetandsettletheliabilitysimultaneously.Thelegallyenforceablerightmustnotbecontingentonfutureeventsandmustbeenforceableinthenormalcourseofbusinessandintheeventofdefault,insolvencyorbankruptcyoftheGrouporthecounterparty.

z. Eventsafterthereportingperiod

Adjustingeventsareeventsthatprovidefurtherevidenceofconditionsthatexistedattheendofthereportingperiod.Thefinancialstatementsareadjustedforsucheventsbeforeauthorisationforissue.

Non-adjustingeventsareeventsthatareindicativeofconditionsthataroseafterendofthereportingperiod.Non-adjustingeventsafterthereportingdatearenotaccounted,butdisclosed.

aa. Segment reporting

Operatingsegmentsarereportedinamannerconsistentwiththeinternalreportingprovidedtotheoperatingdecisionmakers.ThedecisionmakersregularlymonitorandreviewtheoperatingresultoftheGroup.TheactivitiesoftheGroupprimarilyfallsunderasinglesegmentof“Mineralsanditsderivativeproducts”inaccordancewiththeIndAS108“OperatingSegments”.

bb. Changes in Accounting Standards and recent accounting pronouncements

OnMarch30,2019theMinistryofCorporateAffairsissuedtheCompanies(IndianAccountingStandards)(Amendments)Rules,2019,notifyingIndAS116onleases.IndAS116wouldreplacetheexistingleasesstandardIndAS17.Thestandardsetsouttheprinciplesforrecognition,measurement,presentationanddisclosuresforbothpartiestoacontract,i.e.thelesseethelessor.IndAS116introducesasingleleaseaccountingmodelandrequiresalesseetorecogniseassetsandliabilitiesforallleaseswithatermofmorethan12months,unlesstheunderlyingassetisoflowvalue.Currentlyforoperatingleaserentalsarechargedtothestatementofprofitandloss.TheGroupiscurrentlyevaluatingtheimplicationsofIndAS116ontheConsolidatedFinancialStatements.

TheCompanies(IndianAccountingStandards)AmendmentRules,2019alsonotifiedamendmentstothefollowingaccountingstandards.TheamendmentswouldbeeffectivefromApril1,2019.

• IndAS12IncomeTax • IndAS23BorrowingCost • IndAS103BusinessCombinations • IndAS111JointArrangements • IndAS109FinancialInstruments • IndAS19EmployeeBenefits

TheGroupisintheprocessofevaluatingtheimpactofsuchamendments.

114


Note 2

Property,plantandequipment(Indian` inlacs)

Particulars Land Buildings Plant & Equipment Berges Office

Equipment Furniture &Fixtures Vehicles Tenacy

rights Total

Gross carrying value (atdeemedcost)

As at 1st April, 2017 1,955.62 9,909.71 33,614.10 75.98 1,294.51 1,979.84 1,437.19 228.31 50,495.26

Additions 108.82 356.79 1,010.66 - 68.17 60.96 176.47 - 1,781.87

Disposals - (1.18) (1,269.69) - (3.42) (1.43) (36.38) - (1,312.10)

Asat31stMarch,2018 2,064.44 10,265.32 33,355.07 75.98 1,359.26 2,039.37 1,577.28 228.31 50,965.03

Additions 1.22 160.52 586.80 - 31.96 25.52 23.44 - 829.46

Disposals/transfer (383.50)(3,206.36) (3,136.91) - (187.12) (340.75) (538.35) (228.31) (8,021.30)

As at 31st March, 2019 1,682.16 7,219.48 30,804.96 75.98 1,204.10 1,724.14 1,062.37 - 43,773.19


As on 1st April, 2017 - 1,671.55 13,045.02 73.54 1,090.89 1,337.14 962.50 216.90 18,397.54

Depreciationcharged - 327.08 3,027.23 - 97.56 172.81 153.44 - 3,778.12

Disposals - (0.81) (531.75) - (3.20) (1.34) (35.09) - (572.19)

Asat31stMarch,2018 - 1,997.82 15,540.50 73.54 1,185.25 1,508.61 1,080.85 216.90 21,603.47

Depreciationcharged - 243.25 2,624.95 - 61.10 111.73 94.53 - 3,135.56

Disposals - (790.34) (1,359.19) - (156.59) (217.49) (238.78) (216.90) (2,979.29)

As at 31st March, 2019 - 1,450.73 16,806.26 73.54 1,089.76 1,402.85 936.60 - 21,759.74

Net carrying value

Asat31stMarch,2018 2,064.44 8,267.50 17,814.57 2.44 174.01 530.76 496.43 11.41 29,361.56

As at 31st March, 2019 1,682.16 5,768.75 13,998.70 2.44 114.34 321.29 125.77 - 22,013.45

CapitalWorkinProgres

Asat31stMarch,2018 - 294.34 1,827.91 - - 19.37 - - 2,141.62

As at 31st March, 2019 - 91.84 796.29 - - - - - 888.13

115

Note 3

Investment Properties

(Indian`inlacs)

Particulars Land Building Total


As at 1st Aril, 2017 - 308.68 308.68

Additions - --

Disposals - --

Asat31stMarch,2018 - 308.68 308.68

Additions/transfer 229.38 2,722.762,952.14

Disposals - --

As at 31st March, 2019 229.38 3,031.44 3,260.82


As at 1st Aril, 2017 - 51.1451.14

Depreciationcharged - 5.91 5.91

Disposals --

Asat31stMarch,2018 - 57.05 57.05

Depreciationcharged/transfer - 880.79 880.79

Disposals - --

As at 31st March, 2019 - 937.84 937.84

Net Carrying Amount

Asat31stMarch,2018 - 251.64 251.64

As at 31st March, 2019 229.38 2,093.61 2,322.99

Note:Investmentpropertyhasbeencarriedatthecostlessaccumulateddepreciationasat1April,2016,asthecostanddepreciationdeterminedunderthepreviousGAAP.

i)Amountrecognisedinprofitorlossforinvestmentproperties

(Indian`inlacs)

Particulars31st March 31st March

2019 2018

Rental income 163.19 12.00

Directoperatingexpenses - -

Gainfrominvestmentpropertiesbeforedepreciation 163.19 12.00


Gainfrominvestmentproperties 90.60 6.09

ii)Contractualobligations

Therearenocontractualobligationstopurchase,constructordevelopinvestmentproperty.

iii)FairValue

Thecarryingvalueoftheinvestmentpropertiesattheendoftheyearhavebeendeemedtobefairvaluedeterminedonthebasisofthejudgementofthemanagement.

116


Note 4

Intangible assets

(Indian`inlacs)

Particulars Minning Computer

Total Lease Software

Grosscarryingvalue(atdeemedcost)

As at 1st April, 2017 1.11 241.90 243.01

Additions - 28.01 28.01

Disposals - - -

Asat31stMarch,2018 1.11 269.91 271.03

Additions - 5.91 5.91

Disposals/transfer - (24.89) (24.89)

As at 31st March, 2019 1.11 250.93 252.05


As on 1st April, 2017 - 87.26 87.26


Disposals - - -

Asat31stMarch,2018 - 153.80 153.80


Disposals/transfer - (17.88) (17.88)

As at 31st March, 2019 - 179.50 179.50

Net carrying value

Asat31stMarch,2018 1.11 116.11 117.22

As at 31st March, 2019 1.11 71.43 72.54

117

Note 5

Investment

(Indian`inlacs)


2019 2018

Non-current

a.Investmentsinjointventureentitiesinindia

AshapuraPerfoclayLimited* - 8,804.08

8,966,590EquitySharesof`10eachfullypaid-up

b.Investmentsinjointventureentitiesoutsideindia

AshapuraMidgulfNV-Belgium 678.77 740.75

30,750EquitySharesofEuro1eachfullypaid-up

SoharAshapuraChemiclasLLC-Oman 2,087.01 1,441.85

100,000EquitysharesofRO1eachfullypaid-up

AshapuraDhofarMineralsLLC 94.43 -

105,000EquitysharesofOMR1eachfullypaid-up

2,860.21 2,182.60

c. Investments in associate companies in india

OrientAbrasivesLimited 13,809.10 14,524.98

43,074,953(46,782,953)EquitySharesof`1eachfullypaid-up

AshapuraArcadiaLogisticsPrivateLimited 247.63 353.67

55,000EquitySharesof`10eachfullypaid-up

14,056.73 14,878.65

d. Investments in associate companies outside india

AshapuraFareastMPASdnBhd,Malasiya 173.46 205.43

17,00,000EquitysharesofRM1eachfullypaid-up

e.InvestmentsinequitysharesinotherscarriedatFVTOCI,fullypaidup(Unquoted)

ShantilalMultiportInfrastructurePrivateLimited 503.93 536.97

186,285EquitySharesof`10eachfullypaid-up

AshapuraPerfoclayLimited# 0.05 -

50EquitySharesof`10eachfullypaid-up

AshapuraInternationalLimited# 0.09 -

20EquitySharesof`10eachfullypaid-up

AshapuraGuineaResources 0.97 -

100EquitySharesofGNF100,000fullypaid-up

505.04 536.97

f.InvestmentinGovernmentSecurities

NationalSavingsCertificates 1.21 2.02

(underlienwithsalestax/miningauthorities)

Total non-current investments 17,596.65 26,609.74

Current Investment

i.InvestmentsinmutualfundcarriedatFVTPL(Quoted)

17,706.448unitsofBarodaLiquidFundof`10each 378.71 -

InvestmentinBarodaPioneerLiquidFund - 125.50

Total current investments 378.71 125.50*ceasedtobejointventurew.e.f.19thSeptember,2018

#Refernoteno.42

Aggregateamountofquotedinvestments 14,187.81 14,650.48

Marketvalueofquotedinvestments 11,922.80 16,639.88

Aggregateamountofunquotedinvestments 3,787.55 12,084.76

118


Note6Loans

(Indian`inlacs)

Particulars Non-current Current

31st March 31st March 31st March 31st March2019 2018 2019 2018

Unsecured, considered good

Loantojointventurecompanies 2,597.86 1,109.33 - -Employeeloans 4.26 18.49 10.46 22.44Otherloans - - - -

Total loans 2,602.12 1,127.82 10.46 22.44

Note 7Otherfinancialassets



Termdepositswithmaturityofmorethan12months* 427.98 741.89 26.12 -Interestreceivable - - 0.27 0.27

Totalotherfinancialassets 427.98 741.89 26.39 0.27

*underlienwithbanksagainstletterofcreditsandbankguarantees

Note8Deferredtaxassets

(Indian`inlacs)


2019 2018

DeferredtaxassetsOnaccountoftimingdifferencesinCarryforwardbusinesslossanddepreciation 37.60 (384.55)Provisionfordoubtfuldebts 265.19 473.42Disallowancesu/s40(a)and43BoftheIncomeTaxAct 759.80 845.18

Totaldeferredtaxassets 1,062.59 934.05

Note 9Other assets



Tradeadvancestosuppliers - - 8,589.86 9,257.32Less:Provisionfordoubtfuladvances - - 2,485.82 2,302.32

- - 6,104.04 6,955.00Capitaladvances 265.03 381.65 - -Securitydeposits 1,238.53 2,014.36 - -Incometaxassets(net) - - 1,206.19 -(refernoteno.9.1)Prepaidexpenses - - 134.04 247.27Claimsreceivables - - 922.35 753.13Inputcreditreceivables - - 1,684.76 3,129.31Advancepaymentofroyalty - - 23.91 670.75Employeeadvances - -75.88 47.06Otheradvances 33.20 16.99 6,462.45 2,621.91

Total other assets 1,536.76 2,413.00 16,613.62 14,424.43

119

Note 9.1Incometaxassets(net)

(Indianìnlacs)


2019 2018

Incometaxassets(net)

Thefollowingtableprovidesthedetailsofincometaxassetsandliabilities:

Incometaxassets 7,212.67 10,887.79

Currentincometaxliabilities 6,006.48 11,229.08

Net balance 1,206.19 (341.29)

Thegrossmovementinthecurrenttax(asset)/liability:

Netcurrentincometaxassetatthebeginning 341.30 122.58

Incometaxpaid(netofrefunds) (2,283.09) (1,363.30)

Currentincometaxexpense 735.60 1,582.02

Incometaxonothercomprehensiveincome - -

Netcurrentincometax(asset)/liabilitiesattheend (1,206.19) 341.30

Note 10

Inventories

(Indianìnlacs)


2019 2018

Stores&spares 1,070.79 1,538.53

Stock-in-trade 5,013.22 1,690.09

Rawmaterials 3,206.44 3,194.54



Packingmaterials 281.22 634.86

Total inventories 16,054.80 24,503.61

Note 11

Trade Receivables

(Unsecured,consideredgoodunlessotherwisestated)

(Indianìnlacs)


2019 2018

Tradereceivables 12,436.92 23,029.52

Less:Provisionfordoubtfuldebts (2,016.85)

(2,439.39)

Total trade receivables 10,420.07 20,590.13

120


Note 12

Cashandcashequivalents

(Indianìnlacs)


2019 2018

Balanceswithbanks 4,900.20 3,586.64

Cashonhand 62.33 280.61

Totalcashandcashequivalents 4,962.53 3,867.25

Note 13

Otherbankbalances

(Indianìnlacs)


2019 2018

Marginmoneydeposits* 1,105.65 70.73

Otheraccounts 28.13 242.51

Totalotherbankbalances 1,133.78 313.24

*underlienagainstguaranteestominingauthoritiesandletterofcredits

Note 14 Equitysharecapital

(Indianìnlacs)


2019 2018

Authorised 125,000,000equitysharesof`2each 2,500.00 2,500.006,500,000preferencesharesof`100each 6,500.00 6,500.00

9,000.00 9,000.00

Issued, Subsribed and Paid up86,986,098equitysharesof`2each 1,739.72 1,739.72

Totalequitysharecapital 1,739.72 1,739.72

Shares held by each shareholder holding more than 5 percent shares

NameofShareholderAs at 31st March 2019 Asat31stMarch2018

Nos. %ofholding Nos. %ofholding

Mr.ChetanNavnitlalShah 1,35,43,814 15.57 1,35,43,814 15.57Mrs.DinaChetanShah 92,02,360 10.58 92,02,360 10.58AshapuraIndustrialFinanceLimited 80,88,000 9.30 80,88,000 9.30AlbulaInvestmentFundLimited 78,57,345 9.03 78,57,345 9.03

Rights,preferencesandrestrictionsattachedtoshares

Thecompanyhasoneclassofequityshareshavingafacevalueof`2eachrankingparipasuinallrespectincludingvotingrightsandentitlementtodividend.Eachholderofequitysharesisentitledtoonevotepershare.Dividendproposedbytheboardofdirectorsandapprovedbytheshareholdersintheannualgeneralmeetingispaidtotheshareholders.

121

Note 15

Otherequity

(Indian`inlacs)


2019 2018

Capital redemption reserve

Balanceatthebeginningoftheyear 3.90 3.90

Add:transferredfromretainedearnings - -

Balanceattheendoftheyear 3.90 3.90

Securities Premium Account

Balanceatthebeginningoftheyear 17,734.59 17,734.59

Add:transferredfromretainedearnings - -

Balanceattheendoftheyear 17,734.59 17,734.59

Retained earnings

Balanceatthebeginningoftheyear (24,530.29) (20,012.79)

Profitfortheyear (33,101.99) (4,516.39)

Adjustmentonaccountofderecognitionofinvestmentinasubsidiaries/jointventures 1,833.31 -

Appropriations

Dividenddistributiontax (1.12) (1.11)

Balanceattheendoftheyear (55,800.09) (24,530.29)

Othercomponentsofequity

Remeasurementofdebinedbenefitplans(netoftax) (73.20) (167.59)

Excahngedifferencesonforeigncurrencytranslation (189.92) (7.96)

Gainsoninvestmentsinequityinstruments 479.05 511.97

215.90 336.42

Totalotherequity (37,845.67) (6,455.38)

Capital redemption reserve:TheCompanyisrequiredtocreateacapitalredemptionreservefromdistributableprofitifthebuy-backofsharesisoutfreereserves,thenominalvalueofthesharessopurchasedisrequiredtobetransferredtocapitalredemptionreserve.

Securities premium account: Securitiespremiumreserveisusedtorecordthepremiumonissueofshares.ThereserveisutilisedinaccordancewiththeprovisionsoftheCompaniesAct.

Retained earnings: Retainedearningsaretheprofits/lossoftheCompanytilldate,lesstransferstogeneralreserve,dividendsorotherdistributionspaidtoshareholders.

Netgain/(loss)onfairvalueofdefinedbenefitplans:TheCompanyhasrecognisedremeasurementgains/(loss)ondefinedbenefitplansinOCI.ThesechangesareaccumalatedwithintheOCIreservewithinotherequity.TheCompanytransfersamountfromthisreservetoretainedearningwhentherelevantobligationsarederecognized.

Gain/(loss)oninvestmentinequityinstruments:TheCompanyhaselectedtorecognisechangesinthefairvalueofcertaininvestmentsinequitysecuritiesinOCI.ThesechangesareaccumalatedwithintheFVTOCIequityinvestmentreservewithinequity.TheCompanytransfersamountfromthisreservetoretainedearningwhentherelevantequitysecuritiesarederecognized.

Foreign currency translation reserve: Exchangedifferenceontranslationoflongtermmonetaryassetisaccumalatedinseparatereservewithinequity.

122


Note16Borrowings



SecuredTermloansfrombanksandothers* 4,221.59 4,971.30 - -HirePurchaseFinance - 171.80 - -Workingcapitalfinancefrombanks - - 4,697.20 6,909.89Workingcapitalfinancefromothers -

*includesuponassignmentfromafinancialinstitution 4,221.59 5,143.10 4,697.20 6,909.89

UnsecuredIntercoprporateloans 11,095.57 5,492.40 - -

11,095.57 5,492.40 - -

Total borrowings 15,317.16 10,635.50 4,697.20 6,909.89

Note 17Otherfinancialliabilities



Currentmaturitiesoflong-termdebt - - 920.09 977.92Interestaccruedanddueonborrowings - - 2,397.75 2,124.57Derivativesandotherclaimspayable - - 23,601.37 21,101.37(refernoteno.44)

Totalotherfinancialliabilities - - 26,919.21 24,203.86

Note18Provisions



Provisionforleaveencashment 115.31 175.98 25.73 30.58

Provisionforminningrestoration

1,191.34 2,152.17 - -

Provisionforgratuity - 112.86 - -Provisionforincometax(net) - - - 341.29(refernoteno.9.1)Provisionforbonus - - 132.83 188.43Provisionforroyalty - - 1,784.08 2,048.22

Total provisions 1,306.65 2,441.01 1,942.64 2,608.52

123

Note 19Other liabilities



Advancesfromcustomers - - 5,577.71 4,795.66

Statutoryliabilities - - 237.48 466.95Shippingclaimspayable - 14,027.02 56,116.55 44,224.85(refernoteno.42and43)Payableforcapitalasset - - 270.70 846.04Otherliabilities 372.51 9.11 4,567.56 6,097.50

Total other liabilities 372.51 14,036.13 66,770.00 56,431.00

Note 20Trade payables

(Indian`inlacs) Current


TradepayablesTotaloutstandingduesofMicroandSmallEnterprises(refernoteno.37) 36.18 1.72TotaloutstandingduesofcreditorsotherthanMicroandSmallEnterprises 11,672.15 16,043.73

Total trade payables 11,708.33 16,045.45

Note 21Revenuefromoperations

(Indian`inlacs) Particulars 2018-2019 2017-2018

SaleofproductsExportsales 27,216.94 43,892.59Domesticsales 31,510.62 34,247.08

58,727.56 78,139.67 Other operating revenue Research&developmentfeesreceipts 200.00 130.00Otheroperatingincome 3,209.03 1,166.76

Totalrevenuefromoperations 62,136.59 79,436.43

124


Note 22Other income


Interestreceipts 534.27 285.54Dividendreceipts 137.02 1.46Profitonsaleofinvestment(net) - 30.35Leaserentreceipts 183.95 54.94Profitonsaleofproperty,plant&equipment(net) 214.86 38.16Sundrybalanceswrittenback 16.30 111.34Miscellaneousincome 615.27 217.12

Total other income 1,701.67 738.91

Note 23Costofmaterialsconsumed


RawmaterialsconsumedOpeningstock 3,194.54 2,638.32Add:Purchases 13,103.23 12,379.65

16,297.77 15,017.97Less:Closingstock* 4,168.61 3,194.54

12,129.16 11,823.43

Rentandroyalty 1,725.50 1,715.54Miningexpenses 5,523.31 8,600.68

Totalcostofmaterialsconsumed 19,377.97 22,139.65*includesstockofasubsidiaryonthedateofderecognitionofinvestments.

Note 24Changes in inventories


ClosingStockFinishedgoods* 5,903.42 6,358.43Stock-in-trade* 6,601.62 1,690.09Semifinishedgoods* 7,118.46 11,087.16

19,623.50 19,135.68OpeningStockFinishedgoods 6,358.43 8,015.73Materialintransit - 25.81Stock-in-trade 1,690.09 6,300.65Semifinishedgoods 11,087.16 6,762.81

19,135.68 21,105.00

Changes in inventories (487.82) 1,969.32*includesstockofasubsidiaryonthedateofderecognitionofinvestments.

125

Note 25Employeebenefitexpenses


Salaries,wages,allowancesandbonus 4,959.29 6,065.91Directors'remuneration 129.40 155.26Contributiontoprovidentfund&otherwelfarefunds 382.05 587.72Staffwelfareexpenses 442.86 549.84

Totalemployeebenefitexpenses 5,913.60 7,358.73

Note26Finance costs


InterestBanks 1,209.43 1,323.37IncomeTax 0.98 91.31Others 690.38 337.78

1,900.79 1,752.46OtherBorrowingCosts 27.43 30.21

Totalfinancecosts 1,928.22 1,782.67

Note 27Depreciationandamortisationexpenses


Depreciationontangibleassets 3,135.56 3,778.12Depreciationoninvestmentproperties 72.59 5.91Amortisationofintangibleassets 43.58 66.54

Total depreciation and amortisation 3,251.73 3,850.57

126


Note28Otherexpenses


ManufacturingExpensesPowerandfuel 2,827.49 2,784.19Machineryrepairsandmaintenance 144.23 163.45Packingmaterialsandexpenses 1,647.15 2,223.64Storesandspares 2,962.45 3,042.62Carriageinward 51.85 438.33Otherexpenses 1,747.39 1,807.25

9,380.56 10,459.48SellinganddistriibutionexpensesSalescommission 85.26 172.06Exportfrieghtandinsurance 2,855.07 6,960.75Exportcustomduty 1,576.59 1,566.06Exportandothershipmentexpenses 9,276.75 14,278.87

13,793.67 22,977.74AdministrativeandOtherExpensesAdvertisementandbusinesspromotion 153.22 180.14Rent 88.60 320.79Rates&taxes 79.76 380.95Repairstobuildingsandothers 173.08 280.18Insurancepremiums 106.73 125.15Travellingexpenses 625.59 833.88Foreigncurrencyfluctuationloss 3,105.94 5.07Legalandprofessionalfees 843.20 916.73Provisionfordoubtfuldebtsandadvancesandbaddebts 528.81 1,256.10Bankdiscount,commissionandothercharges 88.02 140.39Paymenttoauditors 75.70 96.73Directorssittingfees 31.50 34.75Impairmentofassets 6.34 -Lossonsaleofinvestments 283.17 -Corporatesocialresponsibilityexpenses 18.55 120.11Donations 62.06 80.71Miscellaneousexpenses 1,735.05 2,209.55

8,005.32 6,981.22

Totalotherexpenses 31,179.55 40,418.44

ExpendituretowardsCorporateSocialResponsibility(CSR)activities

GrossamountrequiredtobespentbytheGroupduringtheyear 41.76 158.12Amountspentincashduringtheyeari)Construction/acquisitionofanyasset - -ii)Onpurposesotherthan(i)above 18.55 120.11

18.55 120.11Payments to auditors

Auditfees 65.38 68.62Taxauditfees 8.55 12.95OtherServices 0.48 13.24Reimursementofexpenses 1.29 1.92

75.70 96.73

127

Note 29Earning per share

Particulars 2018-2019 2017-2018

Profitfortheyear(`) (33,101.99) (4,516.39)Weightedaveragenumberofshares(Nos) 8,69,86,098 8,69,86,098Earningspershare(BasicandDiluted)` (38.05) (5.19)Facevaluepershare` 2.00 2.00

Note 30Fair value measurement

i. Financial instruments by catergory(Indian` inlacs)

Particulars 31st March 2019 31stMarch2018FVPL FVOCI Amortised cost FVPL FVOCI Amortised cost

Financial assets

Investments 378.71 505.04 17,091.61 125.50 536.97 26,072.77

Tradereceivables - - 10,420.07 - - 20,590.13

Loans - - 2,612.58 - - 1,150.26Otherfinancialassets - - 454.37 - - 742.16Cashandcashequivalents - - 4,962.53 - - 3,867.25Otherbankbalances - - 1,133.78 - - 313.24

Totalfinancialassets 378.71 505.04 36,674.94 125.50 536.97 52,735.82

Financial liabilities

Borrowings - - 20,014.36 - - 17,545.39

Tradepayables - - 11,708.33 - - 16,045.45

Otherfinancialliabilities - - 26,919.21 - - 24,203.86

Totalfinancialliabilities - - 58,641.90 - - 57,794.70

ii)Fairvaluehierarchy

This sectionexplains the judgementsandestimatesmade indetermining the fair valuesof the financial instruments thatare (a) recognisedandmeasuredatfairvalueand(b)measuredatamortisedcostandforwhichfairvaluearedisclosedinthefinancialstatements.Toprovideanindicationabouttherealiasbilityoftheinputsusedindeterminingfairvalue,theCompanyhasclassifieditsfinancialinstrumentsintothefollowingthreelevelsprescribedunderIndAS-113"FairValueMeasurements".

Financialassetsmeasuredatfairvalue-recurringfairvaluemeasurementsat31stMarch2019

(Indian` inlacs)Particulars Level 1 Level 2 Level 3 Total


Financial investment at FVPLInvestmentinMutualFund 378.71 - - 378.71

Total 378.71 - 505.04 883.75

128


Financialassetsmeasuredatfairvalue-recurringfairvaluemeasurementsat31stMarch2018(Indian` inlacs)

Particulars Level 1 Level 2 Level 3 Total


Financial investment at FVPLInvestmentinMutualFund 125.50 - - 125.50

Total 125.50 - 536.97 662.48

Level1:Level1hierarchyincludesfinancialinstrumentsmeasuredusingquotedpricesinactivemarkets.Quoteswouldincludesrates/values/valuationreferencespublishedperiodicallybystockexchangesonbasisofwhichtradestakeplaceinalinkedorunlinkedactivemarket.Thisincludestradedbondsandmutualfunds,asthecasemaybe.

Level2:Thefairvalueoffinancialinstrumentsthatarenottradedinanactivemarketaredeterminedusingvaluationtechniqueswhichmaximisetheuseofobservablemarketdata(eitherdirectlyaspricesorindirectlyderivedfromprices)andrelyaslittleaspossibleonentity-specificestimates.Ifallsignificantinputsrequiredtofairvalueaninstrumentareobservable,theinstrumentisincludedinlevel2.

Level3:Ifoneormoreofthesignificantinputsisnotbasedonobservablemarketdata,theinstrumentisincludedinlevel3.Thisisthecaseforunlistedequitysecurities,contigentconsiderationandindeterminationassetincludedinlevel3.

Note 31Financialriskmanagement

TheGroup'sactivitiesexposeittocreditrisk,liquidityriskandmarketrisk.

Risk Exposurearisingfrom Measurement Management

CreditriskCashandcashequivalents,financialassetsandtradereceivables

Creditratings,Aginganalysis,creditevaluation

Diversificationofcounterparties,investmentlimits,checkoncounterpartiesbasiscreditratingandnumberofoverduedays

LiquidityriskBorrowings,tradepayablesandotherliabilities

MaturityanalysisMaintainingsufficientcash/cashequivalentsandmarketablesecurities

MarketriskFinancialassetsandliabilitiesnotdenominatedinINR

SensitivityanalysisConstantevaluationandproperriskmanagementpolicies

TheBoardprovidesguidingprinciplesforoverallriskmanagementaswellaspoliciescoveringspecificareassuchasforeignexchangerisk,creditriskandinvestmentofsurplusliquidity.

A.CreditriskCreditriskreferstotheriskofacounterpartydefaultonitscontractualobligationresultingintoafinanciallosstotheGroup.Themaximumexposureofthefinancialassetsrepresentstradereceivables,workinprogressandreceivables.

Inrespectoftradereceivables,theGroupusesaprovisionmatrixtocomputetheexpectedcreditlossallowancesfortraderecivablesinaccordancewiththeexcepctedcreditloss(ECL)policyoftheGroup.TheGroupregularyreviewstradereceivablesandnecessaryprovisions,wheneverrequired,aremadeinthefinancialstatements.

129

B.Liquidityrisk

LiquidityriskistheriskthattheGroupwillencounterdifficultyinraisingfundstomeetitscommitmentsassociatedwithfinancialinstruments.Liquidityriskmayresultfromaninabilitytosellafinancialassetsquicklyatclosetoitsfairvalue.

TheGroup,tothebestextentpossible,attemptstomanageliquidityriskbymaintainingadequateliquidassetsandbankingfacilitiesbycontinuouslymonitoringforcastandactualcashflowsandbymatchingthematurityprofilesoffinancialassetsandliabilities.

Contractualmaturitiesofsignificantfinancialliabilitiesareasfollows:(Indian` inlacs)

ParticularsLessthanorequalto more than one year one year Total

As on 31st March 2019


Ason31stMarch2018


C.MarketriskMarketriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketprices.Suchchangesinthevaluesoffinancialinstrumentsmayresultfromchangesinforeigncurrencyexchangerates,interestrates,credit,liquidityandothermarketchanges.

TheGrouphasseveralbalancesinforeigncurrencyandconsequently,theGroupisexposedtoforeignexchangerisk.TheGroupevaluatesexchangerateexposurearisingfromforeigncurrencytransactionsandfollowsestablishedriskmanagementpolicies,totheextentpossible.

a)InterestrateriskInterestrateriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketinterestrates.TheGroup'sexposuretotheriskofchangesinmarketinterestratesrelatesprimarilytotheGroup’slong-termdebtobligationswithfloatinginterestrates.TheGroupmanagesitsinterestrateriskbyhavingabalancedportfoliooffixedandvariablerateloansandborrowings,whereverpossible.

b)Interestratesensitivity:Thefollowingtabledemonstratesthesensitivitytoareasonablypossiblechangeininterestratesonthatportionofloansandborrowingsaffected.Withallothervariablesheldconstant,theGroup'sprofitbeforetaxisaffectedthroughtheimpactonfloatingrateborrowings,asfollows:

130


(Indian` inlacs)

Particulars Increase/decrease in basis points Effectofprofitbeforetax

March 31, 2019 +100 200.14 -100 (200.14)

March31,2018 +100 175.45-100 (175.45)

Group'sexposuretoforeigncurrencyriskattheendofeachreportingperiodisasunder:

c)Exposureinforeigncurrency-unhedged(respectiveforeigncurrenciesinlacs)

Currency 31st March 2019 31stMarch2018

ReceivablesUSD 13.93 70.64EURO 6.61 15.05SGD 0.02 -GBP 0.03 -PayablesUSD 887.08 1,004.84EURO 0.17 0.47MYR - 0.02

VND - 45.15SGD 0.01GBP 0.09 -EGP - 0.06Loangiventojointventures/associatesOMR 13.07 6.55

d)Foreigncurrencysensitivity

TheCompanyismainlyexposedtochangesinUSDandEURO.Thebelowtabledemostratesthesentivitytoa5%increaseordecreaseintheUSDandEUROagainstINR,withallothervariablesheldconstant.ThesentivityanalysisispreparedonthethenetunhedgedexposureoftheCompanyasatreportingdate.5%reprentsmanagement'sassessmentofreasonablypossiblechangeinforeignexchangerate.

(Indian` inlacs) Particulars Currency Change in rate Effectonprofitbeforetax

March 31, 2019 USD +5% (3,021.10)USD -5% 3,021.10

March31,2018 USD +5% (3,045.49)USD -5% 3,045.49

March 31, 2019 EURO +5% 25.02EURO -5% (25.02)

March31,2018 EURO +5% 58.90EURO -5% (58.90)

131

Note 32Capital management

TheGroup'scapitalmanagementobjectiveistomaximisethetotalshareholderreturnsbyoptimisingcostofcapitalthroughflexiblecapitalstructurethatsupportsgrowth.Further,theGroupattemptstoensureoptimalcreditriskprofiletomaintain/enhancecreditrating.

TheGroupdeterminestheamountofcapitalrequiredonthebasisofannualoperatingplanandlong-termstrategicplans.Thefundingrequirementsaremetthroughinternalaccrualsandlong-term/short-termborrowings.TheGroupmonitorsthecapitalstructureonthebasisofnetdebttoequityratioandmaturityprofileoftheoveralldebtportfoliooftheGroup.

However,duetothebusinesslossesforthepastfewyearsintheparentandsomesubsidiarycompanies,thenetworthoftheGroupremainsnegativeandinviewofthefactthatthecurrentliabilitiesaremuchhigherthanthecurrentassetsasonthebalancesheetdate,theparentandsomesubsidiariesmayfinditdifficulttomeetitsfinancialobligationsunlesslong-termfundsaregeneratedbytheGroup.

ThefollowingtablesummarisesthecapitaloftheGroup:(Indian` inlacs)

Particulars As at31st March 2019 31stMarch2018

Totaldebt 20,934.45 18,523.31Totalequity (36,105.95) (4,715.66)

totaldebttoequityratio (0.58) (3.93)

Note 33Exceptionalitems

(Indian`inlacs) Particulars 31st March 2019 31stMarch2018

1Netliabilitiesinrespectofexchangeratedifferenceonadisputedshippingclaimanddifferencesandgainonaccountoffairvaluationoflongtermliabilities

(11,535.53) -

2 Additionalliabilitiesinrespectofterminationofasettlementagreementbyacreditor (15,008.51) -3 Profit/(loss)ontransferofthepledgedshares (30.56) -4 Additionalliabilityononetimesettlementwithabank (2,500.00) -5 Netliabilitiesinrespectofhithertounprovidedadditionalliabilityonaccountofexchangerate

differencesonadisputedshippingclaimanddifferencesandgainonaccountoffairvaluationoflong-termliabilitytowardssettlementoftwoshippingclaimsaswellasliabilityuponsettlementwithashippingcompany.

- (1,512.20)

Total…. (29,074.60) (1,512.20)

Note 34Contingent Liabilities

(Indian`inlacs)No. Particulars 31st March 2019 31stMarch2018

1 Guaranteestobanksagainstcreditfacilitiesextendedtoearstwhilesubsidiaryandjointventurecompanies*

5,000.00 1,600.00

2 Guaranteesgiventovariousgovernmentauthoritiesandothers 4,394.22 23,877.793 Inrespectofcontractsremainingtobeexecuted 98.69 591.594 Inrespectofdisputedexciseduty 2,921.09 2,921.095 Inrespectofdisputedincometaxmatters 1,653.49 1,732.426 InrespectofdisputedVATandServiceTaxmatters 145.44 138.417 ShippingclaimsagainsttheCompanynotackowledgedasdebts 52,068.13 4,325.548 OtherclaimsagainsttheCompanynotackowledgedasdebts 55,045.71 12,582.519 Inrespectofothermatters 28.43 122.93

Total... 1,21,355.20 47,892.28

132


Note:ContingentliabilitiesstatedaboveincludeclaimslodgedbyvariouscreditorstillthedateofthesigningofthisreporttotheIRPunderregulation8oftheInsolvencyandBankrupcyBankofIndia(InsolvencyProcessforCorporatePersons)Regulation,2016.

*includesguaranteesgivenonbehalfonearstwhilesubsidiaryandjointventure.

Note 35EmployeebenefitsFunded Scheme - Gratuity

Liabilityforemployeegratuityhasbeendeterminedbyanactuary,appointedforthepurpose,inconfirmitywiththeprinciplessetoutintheIndianAccountingStandard19thedetailsofwhichareashereunder.TheCompanymakescontributionstoapprovedgratuityfund.

(Indian`inlacs)No. Particulars 31st March 2019 31stMarch2018

Amount recognised in balance sheetPresentvalueoffundeddefinedbenefitobligation 786.80 1,296.06Fairvalueofplanassets 825.27 1,183.20Netunfundedobligation/(surplusassets) (38.47) 112.86

ExpenserecognisedinthestatementofprofitandlossCurrentservicecost 47.71 77.09Expectedreturnonplanassets - 146.88Interestonnetdefinedbenefitasset (2.01) 6.68TotalexpensechargedtoprofitandlossAccount 45.70 230.64

Amount recorded as other comprehensive incomeOpeningamountrecognisedinOCIoutsideprofit&lossAccount (74.20) (150.41)Remeasurementsduringtheperioddueto:Changesinfinancialassumptions (11.35) 111.45Actualreturnonplanassetslessinterestonplanassets (7.86) 8.18ClosingamountrecognisedinOCIoutsideprofit&lossaccount (93.41) (30.78)

Reconciliationofnetliability/(asset)Openingnetdefinedbenefitliability/(asset) (61.09) 82.19Expensechargedtoprofitandlossaccount 45.70 230.64Amountrecognisedoutsideprofitandlossaccount 19.21 (119.63)Employercontributions (42.29) (80.34)Closingnetdefinedbenefitliability/(asset) (38.47) 112.86

MovementinbenefitobligationOpeningofdefinedbenefitobligation 769.24 1,126.35Currentservicecost 53.73 77.09PastServicecost - 146.20Interestondefinedbenefitobligation 62.06 90.11Acturialloss/(gain)arisingfromchangeinfinancialassumptions (1.12) (17.10)Benefitspaidfromthefund (72.65) (14.88)Acturialloss/(gain)onobligation (24.46) (111.71)Closingofdefinedbenefitobligation 786.80 1,296.06

Movement in plan assetsOpeningfairvalueofplanassets 827.97 1,044.16Returnonplanassetsexcludinginterestincome (9.90) (3.94)Interestincome 64.08 83.53Contributionsbyemployer 42.29 321.36Benefitspaid (99.17) (261.91)Closingofdefinedbenefitobligation 825.27 1,183.20

133

Principal acturial assumptionsDiscountRate 7.76 8.00Salaryescalationratep.a. 7.76 7.73Futuresalaryincrease 5.00 5.00Rateofemployeeturnover 4.00 4.00

Sensitivityanalysisforsignificatassumptionisasshownbelow:

No. Particulars Sensitivity level 31st March 2019 31stMarch2018

1 DiscountRate 1%Increase (47.39) (85.95)1%Decrease 53.52 97.92

2 Salary 1%Increase 54.46 98.101%Decrease 35.50 (87.45)

3 EmployeeTurnover 1%Increase 9.51 18.891%Decrease 10.57 (21.14)

Thefollowingaretheexpectedfuturebenefitpaymentsforthedefinedbenefitplan:


1 Withinthenext12months(nextannualreportingperiod) 130.35 133.152 Between2and5years 210.74 444.593 Beyond5years 1,136.451,991.23

Note:Openingbalances,whereverapplicable,areadjustedforbalancesoftheearstwhilesubsidiarycompany.

Note36 DisclosureasrequiredbytheindAS17,“Leases”asspecifiedintheCompanies(AccountingStandards)Rules2015(asamended)aregiven below : a) Theaggregateleaserentalspayablearechargedtothestatementofprofit&lossasrentinnoteno.28. b) TheGrouphastakenpropertiesonoperatinglease.TheleaserentalsarepayablebytheGrouponamonthlyorquarterlybasis. c) TheLeasingarrangements,whicharenon-cancellableovertheperiodofthearrangments,thedisclosuresinrespectofthesame.

Note 37 DisclosureundertheMicro,SmallandMediumEnterprisesDevelopmentAct,2006areprovidedasunderfortheyear2018-19,totheextenttheCompanyhasreceivedintimationfromtheSuppliersregardingtheirstatusundertheAct.

(Indian`inlacs)

No. Particulars 31st March 2019 31stMarch2018 Principalamountandtheinterestduethereonremainingunpaidtoeachsupplierattheendof

eachaccountingyear(butwithinduedateasperMSMEDAct)

1 Principalamountduetomicroandsmallenterprise 36.18 1.722 Interestdueonabove - -

134


Note38

AsperIndAS24,Disclosureoftransactionswithrelatedparties(asidentifiedbythemanagement)asdefinedinIndASaregivenbelow:

Sr No. Particulars Countryofincorporation

(i)Jointventuresandassociates

1 AltageStoneCrushingIndustries India2 APLValueclayPrivateLimited1 India3 AshapuraArcadiaLogisticPrivateLimited India4 AshapuraDhofarResourcesLLC Oman5 AshapuraExportsPrivateLimited India6 AshapuraFarestMPASdnBhd Malaysia7 AshapuraFoundation India8 AshapuraMidgulfNV Belgium9 AshapuraMineralCompany India10 AshapuraOvereasPrivateLimited India11 AshapuraPerfoclayLimited1 India12 ASQConnectLimited2 UK13 EmoAshapuraEnergyandMining Nigeria14 ChetanNShah-HUF India15 KutchNavniramanTrust India16 ManicoResourcesPrivateLimited India17 MinologisticCorporation India18 MinotransLogisticCorporation India19 OrientAbrasivesLimited India20 ShardaIndustrialCorporation India21 SoharAshapuraChemicalsLLC Oman

(ii)keymanagerialpersonnel

22 Mr.ChetanShah Non-ExecutiveChairman23 Mr.RajnikantPajwani WholeTimeDirector&CEO24 Mr.HemulShah WholeTimeDirector&CEO/IndependentDirector25 Mrs.GeetaNerurkar WholeTimeDirector&CEO/IndependentDirector26 Mr.HarishMotiwala IndependentDirector27 Mr.AshokKadakia IndependentDirector28 Mr.AbhilashMunsif IndependentDirector29 Mr.PundrikSanyal IndependentDirector30 Mrs.NavitaGaiha IndependentDirector31 Mr.SachinPolke CompanySecretary&VicePresident32 Mr.AshishDesai ChiefFinancialOfficer33 Mr.AjayPhalod3 DesignateCEO34 Ms.SurekhaSathe VicePresident-InformationTechnology35 Mr.AkhileshSinha VicePresident-HumanResources36 Mr.MananShah Relativeofakeymanagerialpersonnel

Note:WiththeappointmentofInterimResolutionProfessional(IRP),theBoardofDirectorsstandssuspendedw.e.f.15thMarch,2019.1.ceasedtobejointventurew.e.f.19thSeptember,20182.w.e.f.19thSeptember,20183.DesignateCEOnominatedbyIRPw.e.f.19thMarch,2019

135


31st March 2019 31stMarch20181.SalesofmaterialsAshapuraPerfoclayLimited JointVenture 1,219.83 4,339.01APLValueclayPrivateLimited JointVenture 1.58 112.32SoharAshapuraChemicalsLLC Associate 202.44 1,579.87OrientAbrasivesLimited Associate 7,896.38 6,684.86AshapuraMidgulfNV Associate 32.91 1,440.24AshapuraFarestMPASdnBhd Associate - 276.62

Total… 9,353.14 14,432.92

2.SaleofassetsOrientAbrasivesLimited Associate 7.92 -AshapuraDhofarResourcesLLC Associate 716.96 -

Total… 724.88 -

3.PurchaseofmaterialsAPLValueclayPrivateLimited Associate 0.20 338.72AshapuraPerfoclayLimited Associate 13.05 66.20OrientAbrasivesLimited Associate 1,436.69 892.61

Total… 1,449.94 1,297.53

4. Interest receivedSoharAshapuraChemicalsLLC Associate - 55.31AshapuraDhofarResourcesLLC Associate 152.45 -AshapuraOverseasPrivateLimited Associate - 1.20AshapuraPerfoclayLimited JointVenture 126.02 14.64

Total… 278.47 71.15

5.Reimbursementofadministrativeexpensesreceived/(paid)AshapuraOverseasPrivateLimited Associate 0.08 14.00OrientAbrasivesLimited Associate (7.75) (2.22)APLValueclayPrivateLimited JointVenture 0.64 0.14AshapuraPerfoclayLimited JointVenture 280.72 554.68

Total… 273.69 566.606.RentreceivedAshapuraOverseasPrivateLimited Associate 1.20 1.20OrientAbrasivesLimited Associate 11.40 5.10

Total… 12.60 6.30

7. R & D charges receiptsOrientAbrasivesLimited Associate 25.00 -AshapuraPerfoclayLimited JointVenture 75.00 100.00

Total… 100.00 100.00

8.DividendreceivedSoharAshapuraChemicalsLLC Associate 45.31 394.64OrientAbrasivesLimited Associate 116.96 116.96

Total… 162.27 511.60

9. DonationAshapuraFoudation Associate - 2.00KutchNavmiramanTrust Associate 10.00 -

Total… 10.00 2.00

10. Operational IncomeAshapuraArcadiaLogisticPrivateLimited Associate - 18.00OrientAbrasivesLimited Associate - 28.93

Total… - 46.93

136


11. Royalty ChetanNShah-HUF Associate 238.05 -

Outstanding Balances:

1. Trade receivablesAshapuraArcadiaLogisticPrivateLimited Associate - 40.95AshapuraExportsPrivateLimited Associate 385.58 385.58AshapuraMidgulfNV JointVenture 526.31 1,179.47AshapuraOverseasPrivateLimited Associate 259.41 257.91AshapuraPerfoclayLimited JointVenture 1,168.70 1,418.18ManicoResourcesPrivateLimited Associate 12.50 12.50AshapuraFarestMPASdnBhd Associate - 336.03APLValueclayPrivateLimited JointVenture 0.21 0.13OrientAbrasivesLimited Associate 1,372.22 2,723.32ASQConnectLimited Associate 750.00 -SoharAshapuraChemicalsLLC Associate - 55.87

Total… 4,474.93 6,409.94

2. Security DepositShardaIndustrialCorporation Associate 45.00 45.00AshapuraPerfoclayLimited JointVenture 15.00 -OrientAbrasivesLimited Associate - 1.00AshapuraMineralCompany Associate - 12.00

Total… 60.00 58.00

3. Trade PayablesAshapuraMineralCompany Associate - 16.03AshapuraMidgulfNV JointVenture 148.28 -AshapuraArcadiaLogisticPrivateLimited Associate 49.41 82.74OrientAbrasivesLimited Associate 176.53 205.12AshapuraPerfoclayLimited JointVenture 3.58 -APLValueclayPrivateLimited JointVenture 10.59 -

Total… 388.39 303.89

4.AdvancesfromcustomersAshapuraFarestMPASdnBhd Associate 0.70 -AshapuraArcadiaLogisticPrivateLimited Associate 100.00 100.00

Total… 100.70 100.00

5.Trade AdvancesMinoTransLogistics Associate 164.42 -AshapuraPerfoclayLimited JointVenture - 400.00ManicoResourcesPrivateLimited Associate 51.01 51.01AltageStoneCrushingIndustries Associate 445.85 431.28MinologisticsCorporation Associate 46.74 46.74

Total… 708.02 929.03

6.LoansSoharAshapuraChemicalsLLC JointVenture 603.89 1,109.33AshapuraDhofarResourcesLLC Associate 1,993.97 -

Total… 2,597.86 1,109.33

137

Key management personnel and relatives

1. RemunerationMr.RajnikantPajwani WholeTimeDirector&

CEO29.35 29.34

Mr.HemulShah WholeTimeDirector&CEO

67.35 62.40

Mrs.GeetaNerulakar WholeTimeDirector&CEO

31.19 63.51

Others 284.70 227.89

Total… 412.59 383.142.SittingfeesMr.ChetanShah Non-ExecutiveChairman 3.75 4.25Mr.HarishMotiwala Independentdirector 6.75 7.50Mr.AshokKadakia Independentdirector 3.25 4.00Mr.AbhilashMunsif Independentdirector 7.75 6.50Mr.HemulShah Independentdirector 1.00 2.50Mrs.GeetaNerurkar Independentdirector 2.00 2.50Mr.PundrikSanyal Independentdirector 5.50 5.00Mrs.NavitaGaiha Independentdirector 1.50 2.50

Total… 31.50 34.75

3.ReimbursementofexpensespaidMs.SurekhaSathe VicePresident-

InformationTechnology 2.94 -

Mr.AshishDesai ChiefFinancialOfficer 2.40 -

Mr.AjayPhalod DesignateCEO 2.40 -Mr.AkhileshkumarSinha VicePresident-HR 2.94 -Mr.SachinPolke CompanySecretary&

VicePresident 2.94 -

Total… 13.62 -

4.SaleofinvestmentMr.MananShah Relativeofakey

managerialpersonnel898.95 -

Outstanding Balances:1.SecuritydepositsMr.ChetanShah Non-ExecutiveChairman 5.00 5.00

138


Note

39

DisclosureintermsofScheduleIIIoftheCompaniesAct,2013

(Indian`

inlacs)

Pa

rtic

ula

rs

Net

Ass

ets

ShareinProfitor(Loss)

Sha

re in

Oth

er

Com

pre

hen

sive

In

com

eSh

are

in

Tota

l C

om

pre

hen

sive

In

com

e

Asa%of

con

solid

ate

d

net

ass

ets

`Asa%of

con

solid

ate

d

profitorloss

`

Asa%of

con

solid

ate

d

oth

er

com

pre

hen

-si

ve in

com

e

`

Asa%of

con

solid

ate

d

tota

lco

mp

reh

en

sive

in

com

e

`

As

at

31st

M

arc

h, 2019

As

at

31st

M

arc

h,

2019

As

at

31st

M

arc

h, 2019

As

at

31st

M

arc

h,

2019

As

at

31st

M

arc

h, 2019

As

at

31st

M

arc

h, 2019

As

at

31st

M

arc

h, 2019

As

at

31st

M

arc

h, 2019

Pa

ren

t C

om

pa

ny

AshapuraMinechemLimited

111.20(40,148.15)

22.45(7,431.45)

19.94

(50.14)

22.43(7,481.59)

Sub

sid

iari

es:

Ind

ian

AshapuraAluminumLimited

(0.11)

40.00

0.01

(3.65)

-

-

0.01

(3.65)

AshapuraClaytechLimited

0.29(103.37)

0.39

(129.74)

(3.64)

9.16

0.36(120.58)

AshapuraConsultancyServicePrivateLimited

0.44(160.37)

(0.02)

5.03

-

-

(0.02)

5.03

AshapuraInternationalLimited*

-

-

(3.99)

1,321.64

0.04

(0.11)

(3.96)

1,321.53

BombayMineralsLimited

(32.58)

11,764.80

0.22

(73.47)

1.50

(3.78)

0.23

(77.25)

PeninsulaPropertyDevelopersPrivateLimited

0.01

(3.95)

(0.01)

3.70

-

-

(0.01)

3.70

PrashanshaCeramicsLimited

0.24(88.34)

(0.15)

48.18

-

-

(0.14)

48.18

ShardaConsultancyPrivateLimited

0.26(94.82)

(0.02)

5.36

-

-

(0.02)

5.36

AshapuraResoucesPrivateLimited

0.25(88.55)

0.20

(66.62)

-

-

0.20

(66.62)

Fore

ign

AshapuraHoldings(UAE)FZE

(1.96)

708.31

0.51

(167.74)

-

-

0.50(167.74)

AshapuraMaritmeFZE

7.59

(2,742.13)

0.01

(4.68)

-

-

0.01

(4.68)

AshapuraGunieaResources**

-

-

2.01

(666.67)

-

-

2.00(666.67)

AshapuraMinechem(UAE)FZE

1.59(574.06)

0.95

(315.28)

-

-

0.95(315.28)

PTAshapuraResources***

-

-

0.01

(2.54)

-

-

0.01

(2.54)

PTAshapuraBentoclayFarest

1.13(408.76)

0.30

(100.37)

-

-

0.30(100.37)

Join

t V

en

ture

s:In

dia

nAshapuraPerfoclayLimited*

-

-

(1.14)

376.00

0.11

(0.27)

(1.13)

375.73

APLValueclayPrivateLimited*

-

-

0.36

(118.36)

-

-

0.35(118.36)

Fore

ign

AshapuraMidgulfNV

(3.43)

1,236.99

0.19

(61.98)

-

-

0.19

(61.98)

AshapuraDhofarResourcesLLC

(0.23)

82.51

0.31

(103.46)

-

-

0.31(103.46)

SoharAshapuraChemicalsLLC

(8.20)

2,960.83

(2.00)

662.59

-

-

(1.99)

662.59

Ass

oci

ate

s:In

dia

nAshapuraArcadiaLogisticPrivateLimited

(0.79)

284.78

0.32

(106.04)

-

-

0.32(106.04)

OrientAbrasivesLimited

(20.75)

7,492.60

(1.80)

596.92

(1.44)

3.63

(1.80)

600.55

Fore

ign

AshapuraFarestMPASdnBhd

(0.86)

309.47

0.10

(31.97)

-

-

0.10

(31.97)

Foreigncurrencytraslationreserve/Others

-

-

-

83.49

(209.95)

0.63(209.95)

TotalEliminations

45.90(16,573.74)

80.77(26,737.40)

-

-

80.16(26,737.40)

Tota

l...

100.0

0 (36,105.95)

100.0

0(33,101.99)

100.0

0(251.46)

100.0

0(33,353.45)

*ceasedtobeasubsidiary/jointventurew.e.f.19thSeptember2018

**ceasedtobeasubsidiaryw.e.f.16thAugust,2018

***ceasedtobeasubsidiaryw.e.f.30thSeptember,2018

139

40. TheParentCompany,on12thDecember2018,movedtotheNationalCompanyLawTribunal(NCLT)-MumbaiBench,underappropriateandrelevantprovisionsoftheInsolvencyandBankruptcyCode,2016.ThesaidpetitionisadmittedbytheNCLTbyitsorderdated15thMarch2019andtheCompanyis,therefore,nowunderCorporateInsolvencyResolutionProcess(CIRP).Consequently,TheBoardoftheDirectorsoftheParentCompanystandssuspendedandMr.ArunChaddahasbeenappointedbytheNCLTasInterimResolutionProfessional.Someofthecreditorshave,however,movedtotheHon.NationalCompanyLawAppellateTribunal(NCLAT)againsttheaforesaidorderpassedbytheNCLT.TheorderpassedbytheHon.NCLThasbeenstayedandispendingfordisposalbytheHon.NCLAT.

41. ByvirtueofadecreeexecutionorderpassedbytheHon.BombayHighcourton31stOctober2018,ashippingcompany,againstitsclaims,hastakensymbolicpossessionofcertainunencumberedassetsoftheParentCompany.

42. One of the creditors, with whom the Parent Company had entered into settlement agreement, terminated during the year, the settlementagreementofUS$45millionpayableover25yearsandinvokedpledgeofsharesoftwosubsidiarycompaniesandajointventurecompanyon19thSeptember2018and4thOctober2018.Accordingly,100%sharesofawholly-ownedsubsidiary,AshapuraInternationalLimited;47.86%sharesofasubsidiarycompany,BombayMineralsLimited;andtheentireholdingof50%inajointventurecompany,AshapuraPerfoclayLimitedhavebeentakenoverbythesaidcreditorduetotriggerofthesepledgedshares.

TheParentCompanyisintheprocessofdefendingthesaidinvocationofpledgebythecreditor.Thesefinancialresultshave,however,beenpreparedonthebasisof theaforesaidchangesintheinvestmentsof theParentCompany. InabsenceofanyconsensusbetweentheParentCompanyandthesaidcreditor,transferoftheaforesaidinvestmentsisaccountedforonthebookvalueoftherespectivecompaniesasonthedateofthetransfer.Thismayundergoachangeuponsettlementonvaluationoftherespectivetransfereecompanies.

43. Totalamountpayableinrespectoftheshippingclaimasstatedin(42)above,alongwithanotherclaimpayabletoacreditor(netofinvocationofpledgeshares)asstatedin(41)above,is`56,116.55lacs(previousyear:`58,251.87lacs)whichhavebeendulyprovidedfor.TheCompanyhas,howevernotprovidedtowardsinterestontheseclaimsalongwithexchangeratedifferencethereonfortheyearaggregatingto`18,056.67lacs(cumulativeupto31stMarch2019:`35,415.44lacs)Thelossfortheperiodis,therefore,understatedby`18,056.67lacsandotherequityasonthebalancesheetdateisoverstatedby`35,415.44lacs.

44. AsdirectedbytheSecurityandExchangeBoardofIndia(SEBI),theParentCompanyhas,duringthefinancialyear2014-15,madeprovisionsofunprovideddisputedloss/liabilityaggregatingto`21,101.38lacsinrespectofforeigncurrencyderivativecontracts,whichwerethesubjectmatterofthequalificationintheAuditors’Reportintheearlieryears.TheCompany,however,basedonthelegaladvicereceived,maintainsthatthatthesefinancialderivativescontractsarevoidandunenforceable.

45. Oneoftheoverseasstep-downsubsidiariesi.e.AshapuraGunieaResourceshasceasedtobeasubsidiaryduringtheyearuponissueoffreshcapitaltotheotherparty.Anotheroverseasstep-downsubsidiary,PTAshapuraResourcesceasedtobesubsidiaryduringtheyearduetoclosureoftheentity.

46. Balanceswithsomeofthebanksaswellasbalancesfortradepayables,tradereceivables,forloansandadvancesaresubjecttoconfirmationsfromtherespectivepartiesandreconciliations,ifany,inmanycases.Inabsenceofsuchconfirmations,thebalancesasperbookshavebeenrelieduponbytheauditors.

47. Figurespertaining to thesubsidiarycompanieshavebeen reclassifiedwhenevernecessary tobring them in linewith theParentCompany’sfinancialstatements.

48. AlltheamountshavebeenstatedinIndian` inlacs,unlessotherwisestated.

49. Previousyear’sfigureshasregroupedandrearranged,wherevernecessary.

SignaturestoNotesNo.1to49


For P A R K & COMPANY Sd/- Sd/-Chartered Accountants ARUN CHADDA AJAY PHALOD InterimResolutionProfessional DesignateChiefExecutiveofficer

Sd/- Sd/- Sd/-PRASHANT VORA ASHISH DESAI SACHIN POLKE Partner ChiefFinancialOfficer CompanySecretary&VicePresident


140


FORMAOC–I(Pursuanttofirstprovisotosub-section(3)ofsection129

STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT Part“A”:Subsidiaries

S.N. NameoftheSubsidiaryCos.

The date since when subsidiary wasacquired(dateonwhichentity become subsidiary)

Reporting periodforthe

subsidiary concerned,ifdifferentfromthe holding company’s

reporting period

Reporting Currency and ExchangeRateas on last date ofrelevantFinancial

Year(ForeignSubsidiares)

Share Capital

Reserves & Surplus

1Ashapura International Ltd.@ 02.10.1992 Uniform INR 300.00 13147.20

2 Ashapura Claytech Ltd. 27.11.1998 Uniform INR 357.99 (461.37)

3 Bombay Minerals Ltd. 25.09.2001 Uniform INR 21.81 11,743.00

4 Prashansha Ceramics Ltd. 12.08.2002 Uniform INR 145.00 (233.34)

5 Penisula Property Developers Pvt. Ltd. 16.12.1998 Uniform INR 1.00 (4.95)

6 Sharda Consultancy Pvt. Ltd. 16.12.1998 Uniform INR 1.00 (95.82)

7 Ashapura Consultancy Services Pvt. Ltd. 16.12.1998 Uniform INR 1.00 (161.37)

8 Ashapura Aluminium Ltd. 14.08.2007 Uniform INR 5.00 34.58

9 Ashapura Resources Pvt. Ltd. 30.11.2017 Uniform INR 1.00 (89.54)

10 AshapuraMinechem(UAE)FZE 18.07.2004 Uniform USD 1922.85 (1350.19)

11 AshapuraHoldings(UAE)FZE 02.05.2007 Uniform USD 28.28 750.01

12 AshapuraMaritimeFZE 29.07.2007 Uniform USD 28.28 (2770.41)

13 PT Ashapura Resources Indonesia# 21.04.2010 Uniform USD 692.00 (379.84)

14 Ashapura Guinea Resources SARL** 08.08.2016 Uniform USD 0.97 (2227.34)

15 PT Ashapura Bentoclay Fareast 22.05.2017 Uniform USD 123.94 (159.86)

*USD1=Rs.69.20(Ason31/03/2019)(roundedofftothenearestRupee) @Ceasedtobesubsidiaryw.e.f19thSeptember,2018 #Ceasedtobesubsidiaryw.e.f1stOctober,2018 **Ceasedtobesubsidiaryw.e.f17thAugust,2018

#DetailsofInvestmentbytheCompany’sSubsidiaries:

S.N. NameoftheSubsidiaryCompany ParticularsofInvestment NatureofInvestment

1 BombayMineralsLtd. PrashanshaCeramicsLtd. Eq.Shares

2 AshapuraMinechem(UAE)FZE AshapuraHoldings(UAE)FZE Shares

3 AshapuraMinechem(UAE)FZE PTAshapuraResourcesIndonesia Shares

4 AshapuraHoldings(UAE)FZE AshapuraMaritimeFZE Shares

5 AshapuraHoldings(UAE)FZE AshapuraGuineaResourcesSARL Shares

6 AshapuraHoldings(UAE)FZE PTAshapuraBantoclayResourcesFareast Shares

1USD-3.67AED*1USD-9105GNF

141

readwithrule5ofCompanies(Accounts)Rules,2014)OF SUBSIDIARY COMPANIES FOR THE YEAR ENDED 31st MARCH, 2019

(` inLacs)

Face Value No.ofShares Amount (Rs.InLacs)

Rs.10/- 7,50,000 75.00

AED150000 1 28.28

USD1 10,00,000 692.00

AED150000 1 28.28

GNF100000 100 0.76

USD1 118600 82.07

ForandonbehalfoftheBoardofDirectors Sd/- Sd/- Sd/- Sd/- ChetanShah SachinPolke AjayPoalod AshishDesai Chairman(Executive) CompanySecretary& ChiefExecutive ChiefFinancial VicePresident Officer OfficerPlace:Mumbai (GroupAffairs)Date:13thNovember,2019

Total Assets Total Liabil-ities

Invest-ments

Turnover(in-cludes Other Income)

Proftbeforetaxation

Provisionfortax

Profitaftertax-ation

Proposed Dividend

%ofShare-holding

29512.38 16065.17 0.86 18005.85 2024.75 730.00 1321.64 - 100.00

1,518.66 1622.03 - 594.05 (133.15) - (129.74) - 99.44

27,976.25 16211.44 12,095.58 13,033.43 (91.33) - (73.47) 5.45 52.14

140.46 228.80 - 253.12 48.18 0.00 48.18 - 100.00

16.37 20.32 - 5.36 3.81 0.11 3.70 - 100.00

45.79 140.61 - 16.32 6.59 1.27 5.36 - 100.00

70.33 230.70 - 21.91 6.11 1.13 5.03 - 100.00

40.00 0.42 - - (3.65) - (3.65) - 100.00

6.90 95.44 - 0.25 (66.62) - (66.62) - 100.00

3304.23 2731.57 2256.95 749.27 (324.66) - (324.66) - 100.00

11836.81 11058.51 522.72 2327.91 (172.73) - (172.73) - 100.00

27.06 2769.19 - 1.35 (4.83) - (4.83) - 100.00

315.94 3.78 - - (2.62) - (2.62) - 100.00

1431.60 3657.98 - - (670.11) - (670.11) - 100.00

710.47 746.40 - 455.53 (103.35) - (103.35) - 100.00

142

Ashapura Minechem LimitedPart“B”:AssociatesandJointVentures

StatementpursuanttoSection129(3)oftheCompaniesAct,2013relatedtoAssociateCompaniesandJointVentures

(` inLacs)

Sl.

No.

NameofAssociates/

Join

t Ven

ture

s

Late

st a

u-di

ted

Bal-

ance

She

et

Dat

e

Dat

e on

w

hich

the

asso

ciat

e or

jointven

-tu

re w

as

asso

ciat

ed

oracquired

SharesofAssociates/JointVentures

held

by

the

Com

pany

on

the

year

end

Descriptionofhowthereis

significantinfluence

Reas

on w

hy th

e As

soci

ate/

Join

t Ven

ture

is n

ot c

onso

l-id

ated

Net

wor

th a

t-tr

ibut

able

to

shar

ehol

d-in

g as

per

la

test

aud

it-ed

Bal

ance

Sh

eet

Profir/

(Loss)for

the

year

No.of

Shar

es

Amountof

Inve

stm

ent

in A

ssoc

i-at

e/Jo

int

Vent

ure

Extentof

Holding%

Cons

ider

ed

in C

onso

li-da

tion

Not

con

sid-

ered

in

Con

soli-

datio

n

1AshapuraPerfoclay

Limited$

18.09.2018

06.05.1998

89,66,590

896.66

50.00ByBoard&EquityHolding

-

-

(752.59)

-

2AshapuraMidgulfNV-

Antwerp@

31.03.2019

11.10.2006

15,00,000

1,349.73

50.00ByBoard&EquityHolding

-

-

(61.98) -

3SoharAshapura

ChemicalsLLC-Oman*

31.12.2018

05.01.2011

1,00,000

163.13

40.00ByEquityHolding/VotingPower

-

-

662.59 -

4AshapuraFareastMPA-

SDN-BHD-Malaysia**

31.12.2018

06.01.2013

17,00,000

480.12


-

-

(31.97) -

5OrientAbrasivesLimited#

31.03.2019

15.06.2017

4,67,82,953

12,966.12


-

-

596.92 -

6AshapuraArcadiaPvt.Ltd

31.03.2019

28.09.2007

55,000

5.5

50.00EquityHolding

-

-

(106.04)

-

7EmoAshapuraEnergy

andMiningLtd-Nigeria

--

67,20,000

-48.00ByEquityHolding/VotingPowerTheInvestmentinthesaid

Companyimpairedduring

FinancialYear2011-12.

-

- -

8APLValueclayPrivate

Limited##

31.03.2018

30.12.2016

10,000

1.00

100.00

ByBoard&EquityHolding

-

-

(236.75)

-

9AshapuraDhofar

ResourcesLLC

31.03.2018

30.11.2017

1,05,000

197.90


-

-

(103.46)

-

NOTES:-

$CEASEDTOBEANASSOCIATECOMPANYW.E.F19THSEPTEMBER,2018

@THEPARTLYSHARESHELDDIRECTLYANDPARTLYTHROUGHCOMPANY’SWHOLLYOWNEDSUBSIDIARYCOMPANYVIZ.ASHAPURAMINECHEM(UAE)FZE.

*THESHARESHELDTHROUGHCOMPANY’SSTEPDOWNSUBSIDIARYCOMPANYVIZ.ASHAPURAHOLDING(UAE)FZE.

**THESHARESHELDTHROUGHCOMPANY’SWHOLLYOWNEDSUBSIDIARYCOMPANYVIZ.ASHAPURAMINECHEM(UAE)FZE.

#THESHARESHELDTHROUGHCOMPANY’SSUBSIDIARYCOMPANYVIZ.BOMBAYMINERALSLIMITED.

##THESHARESHELDTHROUGHCOMPANY’SJOINTVENTURECOMPANYVIZ.ASHAPURAPERFOCLAYLIMITED.”

143

Ashapura Minechem LimitedCINNo.:L14108MH1982PLC026396

Regd.Office:JeevanUdyogBuilding,3rdFloor,278,D.NRoad,Fort,Mumbai–400001Tel.No.:+91-2266651700Fax:+91-2222074452

Website:www.ashapura.comInvestorsRelationsE-mailID:[email protected]

ATTENDANCE SLIP38th Annual General Meeting - 27th December, 2019(TobepresentedattheentranceoftheMeetingHall)

Folio No. / DP ID/Client ID : No.ofShares:

I/Weherebyrecordmy/ourpresenceatthe38thAnnualGeneralMeetingoftheCompanytobeheldonFriday, 27th December, 2019 at 3.00 p.m. at Rangaswar Hall, 4thFloor,Y.B.ChavanCentre,GeneralJagannathBhosaleRoad,NarimanPoint,Mumbai–400021.

NameoftheMember_______________________________ Signature_________________

NameoftheMember/Proxy/___________________________Signature_________________AuthorizedRepresentative

Notes: 1. OnlyMember/Proxy/AuthorizedRepresentativecanattendtheMeeting. 2.Member/Proxy/AuthorizedRepresentativeshouldbringhis/hercopyoftheAnnualReportforreferenceattheMeeting.

-------------------------------------------------------------------TEARHERE----------------------------------------------------------------------

Ashapura Minechem LimitedCINNo.:L14108MH1982PLC026396

Regd.Office:JeevanUdyogBuilding,3rdFloor,278,D.NRoad,Fort,Mumbai–400001Tel.No.:+91-2266651700Fax:+91-2222074452

Website:www.ashapura.comInvestorsRelationsE-mailID:[email protected] NO. MGT-11

PROXY FORM(Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies

(Management and Administration) Rules, 2014)38thAnnualGeneralMeeting–27thDecember,2019

NameoftheMember(s)

Registeredaddress

E-mailId

FolioNo./ClientId/DPIDNo.

I/We,beingthemember(s)of_________sharesoftheabovementionedCompany,herebyappoint-

1.Name:____________________________________________ Address:__________________________________________________________________

E-mailId:__________________________________________ Signature:___________________,orfailinghim/her

2.Name:____________________________________________ Address:__________________________________________________________________


3.Name:____________________________________________ Address:__________________________________________________________________


P.T.O.

144


Asmy/ourproxytoattendandvote(onapoll)forme/usandonmy/ourbehalfatthe38thAnnualGeneralMeetingoftheCompany,tobeheldonFriday,27thDecember,2018at3.00p.m.atRangaswarHall,4th Floor, Y. B. Chavan Centre, General Jagannath Bhosale Road, Nariman Point, Mumbai - 400021andatanyadjournmentthereof,inrespectofsuchresolutionasareindicatedbelow:

Resolution No.

Ordinary / Special Business Optional*

For Against

1. AdoptionofAudited(Standalone/Consolidated)FinancialStatementsfortheyearended31stMarch,2019,togetherwiththeDirectors’andAuditors’Reportsthereon.

2. AppointmentofShriChetanShah,whoretiresbyrotation.

3. RatificationofremunerationpayabletoM/s.S.K.Rajani&Co.,CostAccountants,asCostAuditorsfortheFY2019-2020.

4. Re-designationofShriChetanShahasanExecutiveChairmanoftheCompany.

5. Re-appointmentofShriHarishMotiwallaasaNon-Executive,IndependentDirectoroftheCompany(SpecialResolution).

6. Re-appointmentofShriAbhilashMunsifasaNon-Executive, IndependentDirectoroftheCompany(SpecialResolution).

Signedthis_____dayof________________,2019

AffixRevenueStamp

________________________________SignatureofShareholder

________________________________SignatureofProxyHolder(s)

Notes: 1) *Itisoptionaltoputa(tick)‘√’intheappropriatecolumnagainsttheResolutionsindicatedintheBox.Ifyouleavethe‘For’or‘Against’columnblankagainstanyorallResolutions,yourProxywillbeentitledtovoteinthemannerashe/shethinksappropriate.

2. This formofproxy inorder tobeeffectiveshouldbeduly completedanddepositedat theRegisteredOfficeof theCompany,notlessthan48hoursbeforethecommencementoftheMeeting.

145

ROUTE MAP OF VENUE OF ANNUALGENERAL MEETING

146


NOTES

147

NOTES

148


NOTES

minechem limited · 2019-12-05 · • whilst the company was under cirp, the registrar of...

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