Galaxy Surfactants Ltd
Chairman Speech
Dear Ladies and Gentlemen,
2019-20 might have ended on a sombre note and our today' is
filled with uncertainty; but let me assure you, the future holds promise. I hope you and
your families are safe, healthy and secure.
Ladies and Gentlemen, these are unprecedented times. As I look back, it
has only taken 25 weeks for the World to come to a standstill.
As Vladimir Lenin had once said, "There are decades where
nothing happens; and there are weeks where decades happen."
Within 25 weeks we have experienced a pandemic, which has combined the
effects of the 1918 Spanish Flu with the economic recession of 2008. The rhetoric has
completely changed from optimism to caution to pessimism.
It has brought about a change that will not only impact our today; but
which shall live on and shall also impact our future. Change that has not only brought the
world economy to a grinding halt; but which has also disrupted lives across the globe.
Within weeks we have experienced what people had not experienced for decades.
Unprecedented Times call for Unprecedented Measures. The lockdown
imposed by countries across the Globe as well as by our Government on March 23rd
to protect lives, impacted business operations adversely. But, it also
gave rise to our new-age Warriors - Warriors on ground which comprise
our Doctors, Police Staff, Administration and other authorities who have selflessly been
fighting for our lives and our country. We thank these warriors. They are our real heroes.
Daily lives, though came to a standstill, essential products and
services were still the need of the hour. It was time for our customers to stand up and
deliver the Essential' products required for one's lives. To enable and
equip our customers, Galaxy was ready. This was about our nation and our people. Our COVID
Yodhas' as we internally call our members from the Plant, Operations and
Logistics not only fought through the various risks and lockdown restrictions but also
ensured we kept on delivering and fulfilling our customers' needs 24x7. This has not
been easy. Right from restrictions imposed by local authorities on travelling to work to
restrictions at ports and unavailability of transportation mediums, operations were
severely impacted, but as they say there is always light at the end of the tunnel - things
have not only improved since Lockdown 1.0; but we do see normalcy returning sooner than
later. We thank our COVID Yodhas for braving through this storm valiantly.
In these grim times, ladies and gentlemen, I would like to share some
positive news with you. The year 2020 marks the 40th year since inception for your
Company. The journey which began in 1980, has now completed 4 decades. 4 decades which has
seen our profitability compound at a CAGR of 28.5% from Rs 1 Lakh in 1980 to Rs 230 Crores
as of 2019-20 and our Revenues multiplied by 21,683 times. But more than the financial
numbers, these 4 decades have been about the sustainable partnerships and relationships
which we have built and nurtured with all our stakeholders - relationships which have not
only stood the test of time; but also enabled our growth over the past 4 decades. We thank
all our stakeholders for their continued support and cooperation.
Moving on from the last 4 decades to the last decade. The last decade
has seen your Company grow at a CAGR of 10.9% in volume terms, 16.3% in EBITDA terms and
19.8% in PAT terms, maintaining our threshold ROCE of 22% for 7/10 years. Both our
segments i.e. Performance Surfactants and Specialty Care Products have seen volume growth
in excess of 10% during this period.
As we enter the next decade, the last year of this decade 2019-20 was a
relatively mixed year for us. I say mixed, while all our segments and regions registered
growth, this growth was relatively subdued in the second half of the year. While our
Performance Surfactants business grew at 6% in volumes, Specialty grew at 1.7% after a
spectacular 2018-19. Overall, volumes grew at 4.4%. Egypt made a strong comeback
registering a 22.2% growth in volumes over the previous year which primarily drove the
Performance Surfactants volume growth. Specialty business though started off on a strong
note registering a 10% volume growth in H-1, the same on account of seasonality in Q-3 and
outbreak of COVID-19 in Q-4 registered a decline of 6% in H-2.
Lack of adequate credit for the distribution channels along with
reduction in Inventory days impacted business in India which remained sluggish and flat
for the year. Rest of the World markets which had outperformed last year grew 2.8% in
volumes. This was mainly on account of the decline of 11.7% it experienced in H-2 FY
201920 due to the lower offtake of Specialty Care Products in Q-3 on account of
seasonality and on account of the outbreak of COVID-19 in Q-4, which severely impacted the
developed nations initially.
Africa Middle East and Turkey (AMET) made a strong comeback this year
registering a 9.4% volumes growth mainly driven by the robust performance registered by
our local Egypt market.
While Business has been relatively mixed, business operations too were
adversely impacted by the Lockdown imposed by the Government on March 23rd 2020
which completely wiped out our last week's sales for Q4 2019-20. The major impact
though will be seen in Q-1 2020-21, where due to supply chain disruptions, our ability to
service the underlying demand got severely constrained.
The blast which took place at our M-3 unit at Tarapur resulted in 3
casualties. While this will have an adverse impact on the business in Q-1 FY 2020-21, more
than that, this has left an indelible blot on our illustrious 40 years journey which till
April 13th 2020, had not seen any serious incidents involving casualties. While
as an organisation, we have always given Safety the topmost priority and our safety
standards till date are commensurate to the best-in-class, this incident has taken us back
to the drawing board. Right from implementation of Behavioural-Based Safety for all
employees to refining and improving the Safety SOPs to framing new SOPs for operating
under the COVID-19 scenario to conducting safety audits and evaluations by the Safety
Teams, we are leaving no stone unturned to ensure such incidents do not happen in the
future ever again. Basis the insights derived from the investigation, we have launched
Project Abhayatam - A Fearless, New Beginning. This project comprises an 8-step review
mechanism by a Team of subject specialists within Galaxy. This will strengthen and enhance
the Design, Operations, Safety and Skill levels of all our plant personnel across the
organisation and enable us to identify the areas requiring improvement in Safety. Post the
identification, course correction shall involve automation to monitor and control the
critical operations across the organisation. While loss of lives cannot be compensated
for, all necessary support - financial, emotional and social have been extended to the
families of the deceased. The deceased, Shamir Khoja, Vijay Sawant and Runal Raut will
always remain part of the Galaxy family and we shall forever remain indebted to the
contributions made by them.
Looking ahead, while demand for Performance Surfactants remains fairly
stable, cut-down on discretionary spending along with hoarding of cash may impact new
launches and sales of existing premium products, adversely impacting our Specialty Care
business. But we remain hopeful, and I say that as, the situation month-on-month has been
improving - We hope this continues. Monsoons, pickup in consumption globally and
relaxation of lockdowns
will be crucial for this momentum to sustain and rise going ahead. A
positive, though has been our Egypt Plant which faced no disruption/shutdown on account of
the pandemic. Therefore we believe the recovery and momentum seen in Egypt should sustain.
CAPEx planned for our Specialty Products remains on track, though
execution and operationalisation will get delayed by 6-9 months. This year began with the
operationalisation of our performance surfactants plant at Jhagadia. While nobody could
foresee the rise in demand for performance surfactants on account of the pandemic, it is
our ahead of the curve CAPEx planning and execution that has held us and is holding us
again in good stead today, as the demand for performance surfactants rises.
2019-20 also saw your Company winning several reputed awards in the
areas of:
t Innovation - The Gold award at HPCI for our oil soluble surfactant
GalSoft TILS (G)
? Human Resources - Certification as a Great Place to Work for the 2nd
time
? Intellectual Property - Excellent use of IP in Innovation Award at
the IP Summit to finally
? My own nomination as a finalist at the EY Entrepreneur of the Year
Awards 2019
To conclude with, an operating cash flow in excess of Rs 300 Crores,
ROCE of 23.5% and PAT growth of 20.6%, awards and recognitions for our performance in
multiple areas and growth across segments and regions, this has been a good end to the
last decade.
Ladies and Gentlemen, as responsible citizens of this nation, we
believe it is critical that businesses give back to the society and the nation that
creates them.
Our Corporate Social Responsibility Policy has been formulated with a
view to ensure the holistic development of the community and the environment. Various CSR
initiatives in the field of healthcare, education, social upliftment, women empowerment,
environmental protection, conservation and restoration were undertaken during the current
year. The pandemic saw your Company undertake multiple activities across the country in
order to support and enable the society gain access to hygiene through distribution of 1.2
lakh handwash bottles and sanitisers. Food and essentials were also provided to the nearby
villages through various distribution drives carried out by our CSR members.
Sustainability forms our Core. A journey which began in 2010-11, shall
complete a decade in 2020-21. A decade marked by remarkable work done in the areas of
Responsible Care, establishing ZLD (Zero Liquid Discharge) units across all our sites and
pioneering Innovation that is sustainable, green and incorporates our patented green
technology for manufacturing - all in all a sustainable and environmentally conscious
proposition.
Work done in the last decade has started bearing fruits. This year,
your Company won the NAMC Gold Award for its Jhagadia Unit, has been shortlisted as a
finalist for Asia's Best environmental reporting category for 2019 and has also
started the assessment of Risks and Opportunities of Climate Change using TCFD
recommendations well ahead of the regulatory norms. Sustainability shall be a key
monitorable going ahead and as an organisation we are fully conscious and geared up for
it. At Galaxy, sustainable and consistent value creation for all our stakeholders remains
our motto. We have consistently demonstrated it over the past 4 decades; and the next
decade and decades to come shall be no different. We remain committed to growth and the
inherent robustness of our business model, sustainable relationships built over the years
and our people give us the confidence to achieve lot more in the decades to come.
But to succeed tomorrow, one needs to work today, and work for the next
decade has already begun. The next decade shall see the rise of Persistence' -
Growth driven by: t Premiumisation
? Ecommerce
? Regulations
t Sustainability and Safety t Innovation
? Supplier Integration ^ Trade
? Emerging Opportunities
? New-age Technologies that shall power unmatched consumer
experience
? Customised Consumption
? Engagement with all Stakeholders
On that futuristic, optimistic and positive note, ladies and gentlemen,
thank you once again for being part of this journey.
Thank you, |
Yours sincerely, |
u.shekhar |
Managing Director |
Galaxy Surfactants Ltd
Directors Reports
To The Members
Your Directors take pleasure in presenting the Thirty Seventh (37th) Annual
Report together with the Audited Statements of Accounts for the year ended March 31, 2023.
1. FINANCIAL RESULTS
(` Crores)
Particulars |
Standalone |
Consolidated |
|
2022-23 |
2021-22 |
2022-23 |
2021-22 |
REVENUE & PROFITS |
|
|
|
|
Total Revenue from Operations |
3,159.26 |
2,628.59 |
4,445.24 |
3,685.71 |
Profit before Interest, Tax & Depreciation |
352.55 |
232.54 |
578.13 |
413.22 |
Less: Interest & Finance Charges |
12.32 |
7.75 |
21.70 |
12.85 |
Less: Depreciation |
52.62 |
43.75 |
83.48 |
71.06 |
Profit for the year before Tax |
287.61 |
181.04 |
472.95 |
329.31 |
Less: Provision for Taxation |
|
|
|
|
- Current |
72.01 |
47.83 |
91.26 |
68.56 |
- Deferred |
1.59 |
(0.66) |
0.71 |
(2.03) |
Net Profit after Tax |
214.01 |
133.87 |
380.98 |
262.78 |
RETAINED EARNINGS |
|
|
|
|
Opening Balance of Retained Earnings |
1,075.66 |
954.79 |
1,454.48 |
1,204.70 |
Add: Profit for the year |
214.01 |
133.87 |
380.98 |
262.78 |
Add: Other comprehensive income |
(0.11) |
1.18 |
(0.11) |
1.18 |
Less: Appropriations: Dividend |
|
|
|
|
-Interim Dividend paid during the year |
63.82 |
0.00 |
63.82 |
0.00 |
-Final Dividend paid during the year |
63.82 |
14.18 |
63.82 |
14.18 |
Total Dividend on Equity Shares |
127.64 |
14.18 |
127.64 |
14.18 |
Balance as at end of the Year |
1,161.92 |
1,075.66 |
1,707.71 |
1,454.48 |
Operating Subsidiary TRI-K Industries Inc., USA
Particulars |
` Crores |
USD 000's |
|
2022-23 |
2021-22 |
2022-23 |
2021-22 |
REVENUE & PROFITS |
|
|
|
|
Total Revenue from Operations |
666.40 |
519.09 |
82,917 |
69,668 |
Profit before Interest, Tax & Depreciation |
94.99 |
97.62 |
11,820 |
13,101 |
Less: Interest & Finance Charges |
0.62 |
0.53 |
77 |
71 |
Less: Depreciation |
6.50 |
6.14 |
809 |
824 |
Profit for the year before Tax |
87.87 |
90.95 |
10,934 |
12,206 |
Less: Provision for Taxation |
|
|
|
|
- Current |
19.25 |
20.73 |
2,395 |
2,782 |
- Deferred |
(3.33) |
(0.48) |
(414) |
(64) |
Net Profit after Tax |
71.95 |
70.70 |
8,953 |
9,488 |
RETAINED EARNINGS |
|
|
|
|
Opening Balance of Retained Earnings |
259.15 |
188.45 |
36,881 |
27,393 |
Add: Profit for the year |
71.95 |
70.70 |
8,953 |
9,488 |
Balance as at end of the Year |
331.10 |
259.15 |
45,834 |
36,881 |
Operating Subsidiary Galaxy Chemicals (Egypt) S.A.E
Particulars |
` Crores |
USD 000's |
|
2022-23 |
2021-22 |
2022-23 |
2021-22 |
REVENUE & PROFITS |
|
|
|
|
Total Revenue from Operations |
1,240.62 |
1,049.08 |
1,54,363 |
1,40,797 |
Profit before Interest, Tax & Depreciation |
118.46 |
91.18 |
14,740 |
12,238 |
Less: Interest & Finance Charges |
10.49 |
5.15 |
1,306 |
691 |
Less: Depreciation |
24.34 |
21.22 |
3,029 |
2,848 |
Profit for the year before Tax |
83.63 |
64.81 |
10,405 |
8,699 |
Net Profit after Tax |
83.63 |
64.81 |
10,405 |
8,699 |
RETAINED EARNINGS |
|
|
|
|
Opening Balance of Retained Earnings |
177.46 |
112.65 |
18,786 |
10,087 |
Add: Profit for the year |
83.63 |
64.81 |
10,405 |
8,699 |
Balance as at end of the Year |
261.09 |
177.46 |
29,191 |
18,786 |
2. DIVIDEND
The Board in its meeting held on February 11, 2023 had declared an interim dividend of
` 18/- per equity share i.e. 180% of nominal value of ` 10/- each for the financial year
2022-23. The Board recommends a final dividend of ` 4/- per share making the total
dividend for the financial year 2022-23 to ` 22/- per share. The total dividend payout for
the concluded year shall be ` 78 Crores.
The Dividend Distribution Policy, in terms of Regulation 43A of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 is in place and available on the website of the Company
https://www.galaxysurfactants.com.
3. BUSINESS & FINANCIAL PERFORMANCE
The performance of your Company for the year on a standalone and consolidated basis is
reflected by the following ratios:
Particulars |
Standalone |
Consolidated |
|
2022-23 |
2021-22 |
2022-23 |
2021-22 |
EBITDA (% to Revenue from Operations) |
11.2% |
8.8% |
13.0% |
11.2% |
PAT (% to Revenue from Operations) |
6.8% |
5.1% |
8.6% |
7.1% |
ROACE (%) |
21.0% |
14.4% |
23.9% |
19.3% |
RONW (%) |
18.1% |
12.4% |
22.0% |
18.3% |
Debt: Equity Ratio |
0.15 |
0.22 |
0.14 |
0.23 |
Earnings per Share (`) |
60.36 |
37.76 |
107.46 |
74.12 |
Cash Earnings per Share (`) |
75.20 |
50.10 |
131.00 |
94.16 |
Book Value per Share (`) |
345.21 |
320.89 |
530.97 |
444.05 |
Business Scenario
Financial Year 2022-23 (FY23) started with the backdrop of disruptions caused by the
Russia-Ukraine conflict that started in February 2022 threatening the fragile recovery
from the Covid and the supply chain shocks that were seen in the previous year. The
conflict which is the largest since the World War II has caused a major geopolitical
realignment and has also resulted in ramifications worldwide by way of food and energy
crisis far away from the epicentre of the conflict aggravating the already surging global
inflation.
The resultant tightening of monetary policies by the central banks across economies,
with FED increasing the interest rates by 9 times since March 2022 - an increase of around
4.4% in FY23 has caused ripple effects throughout the global economy including distress in
banking sector and effecting the emerging economies.
A number of developing economies in Africa, Asia and the Americas have experienced
sharp economic downturns, acute balance of payments pressures and foreign currency crisis.
Growth was also weak in Europe, with output declines in many Central and Eastern European
economies and energy-intensive industries, amidst strong adverse effects from extremely
high energy prices. The main positive surprise in late 2022 came from the United States,
with continued labour market resilience outweighing the impact of higher interest rates on
private investment. Two biggest economies in AMET region i.e. Egypt & Turkey were
under severe pressure during the year. Turkey's economic woes continued with balance of
payments crisis sovereign credit rating was the lowest and its CDS premium highest
in the last 20 years. The government tried to address the issue of low forex reserves due
to continued current account deficit by way of additional capital controls. In Egypt too,
a heavy debt burden, rising interest rates and a weakening currency have raised the cost
of servicing debt.
It was clear by the hard stance taken by the different central banks across the world
that the monetary policies would continue to remain restrictive until there are clear
signs of sustained lowering of the inflationary pressures.
The contractionary monetary policy has resulted in moderating the inflation towards the
later part of FY23 but has had its toll on the demand slowing down due to the drag on
household income which is clearly reflected in the growth rates around the world. Global
growth rate slowed down to 3.2% in 2022 and is further expected to slow down to 2.6% in
2023. The only silver lining was in the upward revision from the previous estimates,
albeit "A Fragile Recovery" with risks becoming more balanced but tilted more
towards downside.
In India, evolving geopolitical situation towards the beginning of 2022-23, threatened
to derail the signs of recovery from the third wave of COVID. Global commodity price
dynamics started driving the food inflation in India, including prices of inflation
sensitive items that are impacted by global shortages due to output losses and export
restrictions by key producing countries. RBI too started monetary tightening with an
increase of interest rates in May 2022 and since then has increased the rates by around
2.1% in 2022-23. FMCG companies though posted a value led growth, volume growth continued
flat or in the negative territory for most part of FY23. With prices of commodities at a
decadal high, market growth was more in terms of value with volumes remaining flat to
negative. Rural market continued to lag behind the urban market in terms of growth for
most part of FY23 although some signs of revival in the rural demand were seen in Q3 with
moderating commodity prices and lower inflation.
The inflation has only worsened the inequality in income distribution since the onset
of the COVID pandemic. On one hand in FY23, we saw FMCG companies in India struggling to
balance inflationary price increases and falling demand with many FMCG companies to resort
to grammage reduction in price sensitive segments whereas on the other hand luxury car
sales in India are expected to be at record levels. Despite these pressures, India,
however, emerged to be a bright spot in the global economy to be the fastest growing
economy surpassing the growth rates of both US & China. With easing supply chain
pressures, raw material availability and pull back in the prices of commodities, India is
expected to grow at 7% in FY23.
Financial Outcomes
The prevailing global challenges and the economic scenario in India were reflected in
the financial performance of your Company during the year.
With better sales realisations, strategic sourcing and depreciating rupee, despite a
1.5% decline in volumes, your Company registered consolidated EBITDA growth of 40% over
the previous year. The volumes reflected the global challenges and the dull global
economic scenario prevalent during the year. LA prices started the year on a high with a
correction witnessed Q2 onwards. Due to the lag impact, the averages LA prices were higher
than the previous year driving value led revenue growth of over 20%.
India region continued its strong performance with volume growth of 9.4% over the
previous year. Urban markets outperformed the rural markets which were reeling under the
stress of high inflation and reduced disposable income. Your Company also crossed an
important milestone of 100,000 MT of volumes in India during the year.
Growth in India volumes was offset by lower performance in international markets
leading to an overall flat performance in volumes during the year. AMET volumes were lower
by 11.9% due to subdued demand in two of its biggest markets i.e. Egypt & Turkey
facing macroeconomic headwinds of high inflation and depreciating currencies. ROW volumes
were lower by 5% primarily contributed by Europe.
Your Company commissioned brownfield expansion of multipurpose Specialty plant at
Tarapur during the year which will significantly enhance the faster scale-up of new
innovation products.
Your Company was conferred with "Supplier Excellence Award" by one of its
strategic customers acknowledging the excellence in service, innovation and value. Your
Company also received CHEMEXCIL Trishul Award for best export performance.
Sustainability continues to drive the products out of innovation funnel and during the
year, your Company has launched the following products:
1. Galseer Tresscon: It is next generation, Sulfate-free, Silicon-free, PEG free
and Alkanol amide-free, mild Solid Surfactant System for hair & scalp cleansing
applications. It is uniquely designed for preparation of Shampoo Bars with superior
hair-care performance comparable with premium liquid conditioning shampoos, while also
ensuring the formulation to be sustainable, safe, green, and environmentally friendly.
2. GalMOL CCT: Emollients are an integral part of any beauty and personal care
formulations. GalMOL CCT which is a versatile emollient, is derived from fatty acids and
glycerine, making it safe and truly a natural product. It is a saturated medium-chain
triglyceride with low viscosity, excellent spreadability and has oxidative stability.
GalMOL CCT is used in beauty and personal care products for moisturisation properties. It
is also preferred in colour cosmetic formulations as it supports pigment dispersion, which
is an important function in processing operation, while providing a light feel to the
formulations.
4. PEOPLE ENERGY
Employees are the essence of the Company. They are at the very core of all strategies;
helping your Company reach new heights through their dedication and perseverance and it is
by surrounding them with continuous opportunities to learn and flourish for professional
excellence.
Keeping this in mind, your Company's people strategy has continued to emphasise on
investing towards the all-round growth of the employees by building their capabilities and
by encouraging regular upskilling.
Your Company has maintained an edge over others in the chemical industry by bringing
top talent in our organisation through strategic talent acquisition which has ultimately
boosted employee job satisfaction and retention. Your Company's focus was on hiring from
diverse sources to ensure an astute mix of fresh and experienced candidates.
The leadership of your Company is keen on promoting a dynamic workforce. Your Company
has provided employment opportunities to People with Disabilities (PwDs) and have built
the needed infrastructure to ensure accessibility. Several forums have been set up where
our female employees are mentored by the leadership team and senior women leaders at
Galaxy. This shall aid in building the women leadership at your Company.
Sustainability has always been an uncompromisable aspect. Every year, your Company is
inching closer towards achieving dream of 100% digitalisation and becoming truly
sustainable by going paperless for employee's related activities.
In alignment with Galaxy's 4Cs framework, your Company strives to build an organisation
with a highly competent workforce that can adapt to this ever-changing world and is ready
to take on new challenges. Your Company is equipping workforce with various tools of
learning and a strategic investment in employee development and career advancement.
5. QUALITY
Your Company is committed to deliver consistently high quality and high performing
products and services to its customers.
Continuous improvement in quality across all domains and implementation of key Best
Practices at all its sites enables your Company to meet the stringent quality benchmarks
set by customers for the product qualifications.
The quality of cosmetic ingredients is critical to assure the safety, quality and
efficacy of formulations. Your Company has been effectively practising on the principles
of Good Manufacturing Practices (GMP) and Quality Risk Management approaches at all its
manufacturing sites which are already certified with ISO 22716 GMP standard. The site in
USA (TRI-K Industries Inc.) and in Jhagadia (India) are further certified with EFfCI
(European Federation for Cosmetic Ingredients) GMP standard.
World-class practices such as TPM are adopted at the manufacturing sites augmented by
internal benchmarking programmes such as Galaxy Manufacturing Excellence Award (GMEA).
Under the umbrella of Product Stewardship, your Company has maintained high focus on
Product Safety and Compliance. Your Company has further strengthened on developing
products with High Natural Origin content and Environment Friendly. Sustainable Product
Development emphasising on 12 principles of Green Chemistry has been your Company's
approach. Product attestations/certifications like COSMOS/Ecocert, Kosher, Halal, RSPO (MB
& SG); Product customisations, caring about Vegan Beauty and offering solutions to
meet consumer trends are efforts to deliver enhanced value to your Company's customers.
6. SUSTAINABILITY / RESPONSIBLE CARE
Your Company is one of India's leading manufacturers of surfactants and other specialty
ingredients for the Personal Care and Home Care industry. Your Company continued to march
towards improving on innovating environmentally friendly product, operational processes.
Your Company's sustainability journey has started with a clear mission of 2030 based on
following pillars:
Climate Change - Following pathway of 1.5 Deg. Celsius for reduction of GHG
emissions by increasing the renewable source of energy
Circular Economy - Rethinking and transforming full value chains to create a
system in which waste is designed out entirely
Water Stewardship Bringing positive impact for organisation and society
Diversity and inclusion - Diverse workplace and leverage the effects of
diversity to achieve competitive business advantage
Your Company is committed to Science Based Targets initiative (SBTi) and has set up a
target of Greenhouse Gas emission (GHG) reduction.
Achievement during FY23
Emission by use of solar Avoided 6,700 MT of CO2 energy in its plants
Rainwater Harvesting of 11,000 m3 of water within the boundary
Recycled water of 1,00,000 m3 of water with ZLD (Zero Liquid Discharge concept)
Sales of RSPO (MB) certified 88,000 MT of finished goods
Your Company continued to adhere to following frameworks:
Certified Sustainability Report for FY22
Adherence to RSPO (MB) SCCS certification
Eco Vadis Gold Standard
Climate Change B- Management Level
Water Security B Management Level
Forest C, Awareness Level
Supplier Engagement rating A- Leadership Level
Your Company received following awards during FY23:
CII-Energy efficient unit at Taloja unit
Customer appreciation award - Unilever- Home care Clean Future Award
Top Exporter award at Chemexcil Best Exporter award
Your Company continuously engages with stakeholders to seek feedback, opinions to
improve. Engages with supply chain partners through various forums like Gal sustain event
with suppliers. Engages with customers during various exhibitions. Contribute through
various industry bodies like RSPO, CDP, WWF, CRB, CII, I-SPOC initiatives to share
and learn to co-create for a sustainable future.
7. CORPORATE SOCIAL RESPONSIBILITY (CSR)
In terms of the provisions of Section 135 of the Companies Act, 2013, read with
Companies (Corporate Social Responsibility Policy) Rules, 2014, the Board of Directors of
your Company have constituted a Corporate Social Responsibility ("CSR")
Committee. The composition and terms of reference of the CSR Committee are provided in the
Corporate Governance Report, which forms part of this Annual Report.
Your Company has also formulated a CSR Policy and the same is available on your
Company's website at https://www.galaxysurfactants.com/about/our-policies. aspx.
All the CSR activities of your Company are in compliance with the guidelines prescribed
under Section 135 of the Companies Act, 2013. CSR Committee reviewed and updated the CSR
Policy covering the objectives, focus areas, budget, monitoring & reporting among
others.
Against ` 4.43 Crores that were required to be spent on CSR activities under Schedule
VII, your Company has successfully disbursed ` 4.45 Crores.
A detailed report on amount spent on different activities, results achieved on the
initiatives undertaken by your Company is attached with "Annexure B".
During the year, your Company undertook the following CSR initiatives:
Sr. No. |
Focused CSR Projects |
Description |
1 |
Arogya Vardheeni (Health & Hygiene) |
a) Continued (2nd Year) running Primary Health Centre in Talodara Village,
Jhagadia, Gujarat |
|
|
b) Distributed 342 Maternal & Child Health Kits to Pregnant Women in Bharuch,
Gujarat |
|
|
c) Constructed 8 Household Bathrooms for protection of Dignity, Privacy and Safety of
women of Randedi village, Jhagadia, Gujarat |
|
|
d) Supported Unearthing the burden of Non-Communicable Diseases viz. Diabetes,
Hypertension, Sickle, Leprosy, Epilepsy for ~ 7,000 patients in Bilaspur, Chhattisgarh |
|
|
e) Supported 2 Cancer Patient's Care Home in Navi Mumbai, Maharashtra |
|
|
f) Constructed Toilet block in Aangawadi at Talodara Village, Jhagadia, Gujarat |
|
|
g) Conducted 9 Blood Donation Camps collecting 1,025 blood units. Till date, total 86
blood donation camps have been conducted collecting 6,398 units of blood. |
|
|
h) Provided 3,000 Adult Diapers to Destitute Senior Citizens in Thane, Maharashtra |
|
|
i) Provided Medical & Nutritional support to 25 Orphan Children for entire year in
Navi Mumbai, Maharashtra |
|
|
j) Support provided to 100 tribals for Cataract Operation |
|
|
k) Beneficiary touched 22,086 |
2. |
Gyan Sanjeevani (Education) |
a) Completed Construction of a Vocational Training Center, Nanded, Maharashtra wherein
every year around 5,000 students are expected to get vocational training in different
fields |
|
|
b) Constructed Science Lab in Fulwadi Village School, Jhagadia, Gujarat |
|
|
c) Completed Structural Strengthening of Chindhran Village School, Taloja, Maharashtra |
|
|
d) Continued support for education to the children (778 students) of waste pickers,
after school hours |
|
|
d) Distributed Notebooks in schools nearby our factory operations ~ 20,000 notebooks |
|
|
e) Beneficiary touched 14,442 |
3. |
Samajeek Utthaan (Community Development) |
a) Completed Watershed Development Project in two phases at Landakwadi, Yamgirwadi,
Mahadeowadi, & Pokharni Devi Villages of Parbhani, Maharashtra |
|
|
b) Continued Watershed cum Integrated Village Development Project in Shivani Village,
Nanded, Maharashtra |
|
|
c) Completed Desilting of 33 ponds/percolation tanks in Nandgaon block of Nashik,
Maharashtra |
|
|
d) Completed Watershed Development Project in Tamsai Village of Taloja, Maharashtra |
|
|
e) Completed Structural Strengthening of an Old Age Home in Palghar, Maharashtra |
|
|
f) Developed Senior Citizens Park in Kolawade Village, Palghar, Maharashtra |
|
|
g) Completed Construction of Waiting Area in Taloja Jail, Maharashtra |
|
|
h) Beneficiary touched 1,07,189 |
4. |
Paryavaran Suraksha (Environment Protection) |
a) Planted 7,600 trees (5,000 trees in Palghar District Collector office, 1,000 in
Taloja Jail premises, 300 at Tamsai village and 300 at Nandgaon village, Nashik,
Maharashtra) during the year and cumulatively have planted 69,148 trees till date |
|
|
b) Supported Rabies Mukt Mission in Palghar, Maharashtra |
|
|
c) Initiated Dense Forest Plantation Project (34,800 trees) at Parbhani, Maharashtra |
|
|
d) Beneficiary touched 1,779 |
5. |
Stree Unnati (Women Empowerment) |
a) Started Sewing Skill Development cum Income Generation Centre for Tribal Women in
Palghar, Maharashtra |
|
|
b) Developed Community Hall for a Women SHG in Salwad Village of Palghar, Maharashtra |
|
|
c) Continued support to Women SHG of Waste Pickers in Navi Mumbai, Maharashtra |
|
|
d) Continued support to Vocational training centre providing skills in beautician and
nursing at Turbhe Slums, Navi Mumbai, Maharashtra |
|
|
e) Beneficiary touched 2,193 |
Note: Cumulatively during FY23, your Company has touched 1,47,939 lives (whereas total
7,14,739 lives have been touched after introduction of CSR)
8. SUBSIDIARIES AND ASSOCIATES
As of March 31, 2023, your Company has five wholly owned subsidiaries within the
definition of Subsidiary Company' under the Companies Act, 2013.
Your Company also has an Associate Company in which your Company has shareholding in
excess of 20% - formed specifically in connection with compliance requirements under of
Electricity Rules, 2005 for Group Captive. Your Company has no role in control or
participation in the business decision under the agreement in the above Company and
accordingly, accounts of the said Company have not been consolidated.
During the year under review, the Board of Directors has reviewed the affairs of the
subsidiaries. In accordance with Section 129(3) of the Companies Act, 2013, your Company
has prepared Consolidated Financial Statements of the Company and all its subsidiaries in
compliance with the applicable accounting standards, which forms part of this Annual
Report.
Pursuant to the provisions of sub section (3) of section 129 of the Companies Act, 2013
read with Rule 5 of the Companies (Accounts) Rules, 2014, the salient features of the
financial statement of each of our subsidiaries are set out in the prescribed format AOC-1
which forms part of the Financial Statements section of this Annual Report.
Further, pursuant to the provisions of section 136 of the Companies Act, 2013, the
Financial Statements of subsidiary Companies are uploaded on the website of your Company
i.e., www.galaxysurfactants.com and shall also be available for inspection at the
registered office of your Company with prior notice.
Galaxy Chemicals Inc., a 100% owned subsidiary in US, which was set up to promote
marketing of your Company's products in the Americas, in the early years of development of
export markets has lost its relevance after the consolidation of trading and distribution
business under TRI-K Industries Inc. Your Board has, therefore, passed a resolution for
winding up of Galaxy Chemicals Inc. and is awaiting necessary approvals from the
authorities in India and US.
9. PARTICULARS OF EMPLOYEES & MANAGERIAL REMUNERATION
Disclosures relating to remuneration and other details as required under Section
197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is provided in the Annual Report in "Annexure
F", which forms part of this Report.
In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with
Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, as amended, a statement showing the names and other particulars of
the employees drawing remuneration in excess of the limits set out in the said rules are
provided in the Annual Report which forms part of this Report. Having regard to the
provisions of the first proviso to Section 136(1) of the Companies Act, 2013, the Annual
Report excluding the aforesaid information is being sent to the members of the Company.
The said information is available for inspection at the registered office of your Company
with prior notice and any member interested in obtaining such information may write to the
Company Secretary and the same will be furnished on request.
10. DIRECTORS AND KEY MANAGERIAL PERSONNEL i. Changes in the Composition in the Board
of Directors and Key Managerial Personnel
Mr. Abhijit Damle took over from Mr. K. Ganesh Kamath as Chief Financial Officer w.e.f.
July 1, 2022. Mr. Abhijit Damle has also been appointed as a director on the Galaxy
Holdings (Mauritius) Limited and as Managing Director of Rainbow Holdings GmbH as a
director in place of Mr. K. Ganesh Kamath w.e.f. July 1, 2022.
Mr. K. Ganesh Kamath, continued as an Executive Director till completion of his term
till October 6, 2022 the date of his superannuation. He, thereafter, also resigned
as a director of the Company w.e.f. October 7, 2022.
Your Board wishes to place on record the contributions made by Mr. K Ganesh Kamath
during long association with your Company in various capacities.
Mr. K. Ganesh Kamath continues as a director of the Company's subsidiary Galaxy
Chemicals (Egypt) S.A.E.
ii. Independent Directors
As on March 31, 2023, your Company has 4 Independent Directors on its Board.
Mr. S. Ravindranath, Chairman and Independent Director, retired on completion of his
second term as an Independent Director on April 19, 2022. In his place Mr. M. G.
Parameswaran, Independent Director has been appointed as the Chairman w.e.f. April 20,
2022.
In the 36th AGM held on August 5, 2022, Mr. Kanwar Bir Singh Anand (DIN:
03518282) has been appointed as an Independent Director for the term of 5 years commencing
from the date of the above AGM.
As per the provisions of the Companies Act, 2013, Mr. M. G. Parameswaran and Mr. Subodh
Nadkarni were appointed for a second term in 33rd AGM & Mrs. Nandita Gurjar
was appointed for the second term in 34th AGM. All the independent directors
are not liable to retire by rotation.
Your Board wishes to place on record the contributions by Mr. Ravindranath during his
association with your Company as the Non-Executive and Independent Director in advising
and guiding the management with his wisdom.
The Independent Directors have given their declaration of independence to your Company
stating that they meet the criteria of independence as mentioned under Section 149(6) of
the Companies Act, 2013.
Your Board has appointed Mr. Madhavan Hariharan (DIN: 07217072) as an Additional
Director and Independent Director w.e.f. May 23, 2023 for the period of 5 years not liable
to retire by rotation subject to the approval of the members in the 37th Annual
General Meeting. The proposal to appoint Mr. Madhavan Hariharan is covered under Item no.
7 of AGM notice as Special Business.
iii. Reappointment of Directors Liable to Retire by Rotation
Your Board has 4 Directors who are liable to retire by rotation. Mr. K. Natarajan (DIN:
07626680) is liable to retire by rotation in ensuing AGM and being eligible, your Board
recommends him for reappointment.
The proposal for reappointment of Mr. K. Natarajan is covered in Item No. 4 of the AGM
notice as Ordinary Business.
11. NOMINATION AND REMUNERATION POLICY
The Board of Directors on the recommendation of the Nomination & Remuneration
Committee has framed "Nomination and Remuneration Policy" which inter
alia lays down framework in relation to remuneration of Directors, Key Managerial
Personnel and Senior Management of your Company and criteria for selection and appointment
of Board Members. The said Policy is annexed as "Annexure C" and forms an
integral part of this Report.
12. EVALUATION OF BOARD, ITS COMMITTEES AND DIRECTORS
Pursuant to the provisions of the Companies Act, 2013 and Regulation 17(10) of the
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, your Board has carried out the annual performance evaluation of its own
performance, Board Committees and Individual Directors. The evaluation was done through a
structured questionnaire which considered various aspects of the Board's functioning,
composition of the Board and its committees, culture, execution and performance of
specific duties, obligations and governance.
The details of programmes for familiarisation of Independent Directors of your Company
are available on your Company's website www.galaxysurfactants.com.
The Board of Directors has evaluated the Independent Director appointed during FY23 and
opined that the integrity, expertise and experience (including proficiency) of the
Independent Director is satisfactory.
13. BOARD COMMITTEES
In order to strengthen its functioning, the Board of Directors has constituted the
following Committees as per the requirement of Companies Act, 2013 and the SEBI
Regulations:
1. Audit Committee
2. Nomination & Remuneration Committee
3. Stakeholders' Relationship Committee
4. Corporate Social Responsibility Committee
5. Risk Management Committee
Details of the Committees along with their charter, composition and meetings held
during the year are provided in the Corporate Governance Report which forms part of this
Annual Report.
14. MEETINGS OF THE BOARD AND COMMITTEES
The details of the Board of Directors and Committees along with their composition,
number of meetings held and attendance at the meetings are provided in the Corporate
Governance Report which forms part of this Annual Report.
Secretarial Standards:
Applicable Secretarial Standards i.e. SS-1 and SS-2 relating to Meetings of the
Board of Directors' and General Meetings' respectively have been duly followed by
your Company.
15. DIRECTORS' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the information and
explanations obtained by them, your Directors make the following statements in terms of
Section 134(3)(c) of the Companies Act, 2013: (i) that in the preparation of the Annual
Accounts for the year ended March 31, 2023, the applicable accounting standards have been
followed and there are no material departures from the same; (ii) that the Directors had
selected such accounting policies and applied them consistently and made judgements and
estimates that are reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company as of March 31, 2023 and of the Profit and Loss of the Company
for that period; (iii) that the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the provisions of Companies
Act for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities; (iv) that the Directors had prepared the Annual Accounts on a going
concern basis; (v) that the Directors had laid down internal financial controls to be
followed by your Company and that such internal financial controls are adequate and were
operating effectively; and (vi) the Directors had devised proper systems to ensure
compliance with the provisions of all applicable laws and that such systems were adequate
and operating effectively.
16. AUDITORS Statutory Auditors
M/s. Deloitte Haskins & Sells LLP (Firm Registration Number 117366W/W-100018) were
re-appointed as
Statutory Auditors of your Company at the 36th Annual General Meeting held
on August 05, 2022 for the second term of 5 consecutive years i.e. from the conclusion of
36th Annual General Meeting till the conclusion of 41st Annual
General Meeting to be held in the year 2027.
The Report given by the Auditors on the Financial Statements of your Company is part of
this Annual Report. There is no qualification, reservation, adverse remark or disclaimer
given by the Auditors in their Report.
Cost Auditors
Your Board of Directors, based on recommendation of the Audit Committee, has appointed
M/s. Nawal Barde Devdhe & Associates, Cost Accountants in Practice, to audit the cost
accounts of your Company for the financial year 2023-24. In terms of Rule 14 of the
Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditor
is required to be ratified by the members. Accordingly, a resolution seeking ratification
by the members for the remuneration is listed as Item No. 5 of the AGM Notice as Special
Business.
Secretarial Auditors
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company has
appointed M/s. S. N. Ananthasubramanian & Co., Company Secretaries in Practice to
undertake the Secretarial Audit of your Company. The Report of the Secretarial Auditor for
FY23 is appended as "Annexure E" to this Board's Report.
There is no qualification, reservation or adverse remark made by the Secretarial
Auditor in their report.
17. RISK MANAGEMENT & INTERNAL FINANCIAL CONTROLS
Your Company has a Risk Management Committee and has also complied with the requirement
of appointment of Independent Director on the Committee. The Risk Management Committee
meets to identify, discuss and mitigate risks in business & operational areas thereby
addressing ongoing design and oversight adequacy needs. The Risk Management Committee has
kicked off Enterprise Risk Management involving review of design and adequacy of
organisation structure, governance framework, policies and processes, identification and
mitigation of risks and digitisation possibilities.
Your Company has always worked to be contemporary in the application of technology for
its business processes and its interface inter and intra organisation. Towards this end
review of business process, applications available and the digitisation of process with
adequate controls is an ongoing work in progress. We are on one of the best SAP ERP for
over a decade, with substantive utilisation of its features and are endeavouring to move
subsidiaries on the same to enable seamless availability of real-time data on consolidated
operations.
The above reflects on our continuing endeavour to build an intelligent enterprise that
will enable us to create a tech-powered customer and stakeholder-centric solutions that
meets the intricacies of the business, operations and emerging customer interface needs.
This will enable our core business to become smarter and more efficient through online
augmented data driven and machine-enabled processes, build ecosystems that will help
deliver differentiated customer and stakeholder experience, value proposition, and help
build seamless value chain that supports the scale and efficiency of the large but acts
with the nimbleness and agility of the small, prerequisite for sustained competitive
growth by leveraging digitisation, technology application and analytics.
This calls for seamless integration with our consumers, customers and stakeholder
operating ecosystems that can lead to a superior experience by improving agility and
responsiveness across the business.
Cybersecurity is essential for any organisation to protect its digital assets from
cyber-attacks, data breaches, and other security threats. Cybersecurity is critical to
protect against a constantly evolving threat landscape, where attackers are becoming more
sophisticated in their tactics, techniques, and procedures. Your Company has identified
the constantly increasing cybersecurity threats and made major upgrade in the security
environment and extend the same to the subsidiaries, applications, and external
interfaces.
Technology plays a critical role in cybersecurity and your Company has implemented
several measures to enhance its Cybersecurity measures on the principles of Identify
Protect, Detect Respond and Recover. Your Company has implemented security solutions which
have also provided for round-the-clock surveillance arrangements to track any threats that
can help us protect our networks, endpoints, and other operating environments.
Your Company believes in deploying the best security solution to keep Galaxy Business
and Operating environment secure, safe and scalable to address global growth needs.
18. PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
Your Company treats its employees equally, with dignity and with no gender bias. Your
Company believes and ensures that all employees work in an environment that is free from
all kinds of harassments including sexual harassment of women. As required under the
provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013, your Company has constituted an ICC (Internal Complaints Committee).
During the year under review, there were two complaints received in relation to sexual
harassment and were closed. The policy for Prevention of Sexual
Harassment is available on the website of your Company as given below:
https://www.galaxysurfactants.com/pdf/corporate-governance/policies/Sexual-Harassment-Policy.pdf
19. CORPORATE GOVERNANCE
Your Company is committed to maintaining the highest standards of Corporate Governance.
Your Company continues to be compliant with the requirements of Corporate Governance as
enshrined in the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015. A Report on Corporate Governance along with
the Certificate from the Statutory Auditors of your Company confirming compliances with
the conditions of Corporate Governance as stipulated in the Listing Regulations forms part
of this Annual Report.
20. MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A report on the Management Discussion and Analysis for the year under review, as
stipulated under Regulation 34 of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate
section forming an integral part of this Annual Report.
21. TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND
Despite continued endeavour in identifying and communicating the beneficiaries of
unclaimed dividend and shares, your Company continues to have some cases of unclaimed
dividend on account of various reasons like change in residential address, change in
telephone numbers etc. due to which your Company is unable to reach the concerned
beneficiaries. Such unclaimed dividends and shares in respect of which dividend has
remained unclaimed need to be transferred to IEPF as per statutory provisions.
a) Transfer of Unclaimed Dividend and interest on fixed deposit to IEPF
As required under Section 124 of the Companies Act, 2013 (the Act), unclaimed dividend
amount aggregating to ` 5,13,400/- and interest on fixed deposit of ` 1,296/- lying with
your Company for a period of seven years were transferred during FY23 to the Investor
Education and Protection Fund established by the Central Government.
b) Transfer of shares to IEPF
As required under Section 124 of the Act, 3,300 Equity Shares, in respect of which
dividend has not been claimed by the members for seven consecutive years or more, have
been transferred by your Company to the Investor Education and Protection Fund (IEPF)
Authority during FY23. Details of shares transferred are available on the website of IEPF
as well as on the website of your Company.
22. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
The Business Responsibility and Sustainability Report of your Company for FY23 forms
part of this Annual Report as required under Regulation 34(2)(f) of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015.
23. DISCLOSURES AND INFORMATION UNDER THE COMPANIES ACT, 2013
Pursuant to section 134 and any other applicable sections of the Companies Act, 2013
(the Act), following disclosures and information is furnished to the shareholders:
a. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and
Outgo
As required under section 134(3)(m) of the Act read with Rule 8(3) of the Companies
(Accounts) Rules, 2014, the particulars relating to "Conservation of Energy,
Technology Absorption and Foreign Exchange Earnings and Outgo" are given in "Annexure
A" which is appended to this Board's Report.
b. Annual Return
Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return of
the Company in Form MGT-7 for FY 2022-23, is available on the Company's website at
https://www. galaxysurfactants.com/investor-relations/annual-general-meetings.aspx
c. Particulars of Loans, Guarantees or Investments by the Company
Particular of loans, guarantees and investments covered under Section 186 of the Act
form part of the notes to the Financial Statements provided in this Annual Report.
d. Related Party Transactions
The Policy on Related Party Transactions as approved by the Board is available on the
website at
https://www.galaxysurfactants.com/pdf/corporate-governance/policies/Policy-on-Related-Party-Transactions.pdf
The particulars of Related Party Transactions in prescribed Form AOC-2 are annexed as "Annexure
D" and form an integral part of this Report. There are no materially significant
related party transactions made by the Company with Promoters, Directors or Key Managerial
Personnel, etc. which may have potential conflict with the interest of the Company at
large.
The disclosure as required by Schedule V, Clause A of the Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 is as under:
( ` Crores)
Particulars |
Name of Subsidiary/Firm |
Maximum amount of loans / advances / investments outstanding during
the year ended March 31, 2023 |
Amount outstanding at the end of the year i.e. March 31, 2023 |
Investments- Equity Shares |
Galaxy Chemicals Inc. |
0.15 |
0.15 |
Investments- Equity Shares |
Galaxy Holdings (Mauritius) Ltd. |
2.37 |
2.37 |
Investments- Preference Shares (at fair value) |
Galaxy Holdings (Mauritius) Ltd. |
205.64 |
197.44 |
Advances |
Galaxy Chemicals (Egypt) S.A.E |
1.05 |
0.89 |
Advances |
TRI-K Industries, Inc. |
0.72 |
0.72 |
e. Vigil Mechanism / Whistle Blower Policy
As per Section 177 of the Act, your Company has established a vigil mechanism for the
Directors and employees to report genuine concerns. Your Company has a vigil mechanism
named "Whistle Blower Policy" to deal with any instances of fraud and
mismanagement. The Whistle Blower Policy is available on the website of your Company at
https://www.galaxysurfactants.com/pdf/corporate-governance/policies/Whistle-Blower-Policy.pdf
f. Material Changes and Commitments
There are no material changes or commitments affecting the financial position of your
Company which have occurred between the end of the financial year to which the financial
statement relates and the date of the report.
g. Transfer to Reserves
Your Company proposes not to transfer any amount to the General Reserve for FY23.
h. Significant and Material Orders Passed by the Regulators or Courts
There are no significant material orders passed by the Regulators / Courts which would
impact the going concern status of your Company and its future operations.
i. Reporting of frauds
There was no instance of fraud during the year under review, which required the
Statutory Auditors to report to the Audit Committee and / or Board under Section 143(12)
of the Act and the rules made thereunder.
j. Maintenance of Cost Records
Your Company has made and maintained cost records as specified by the Central
Government under sub-section (1) of Section 148 of the Act.
24. CAUTIONARY STATEMENT
Statements in the Directors' Report describing your Company's objectives, expectations
or forecasts may be forward-looking within the meaning of applicable laws and regulations.
Actual results may differ materially from those expressed in the statement. Important
factors that could influence your Company's operations include global and domestic demand
and supply conditions affecting selling prices of finished goods, input availability and
prices, changes in government regulations, tax laws, economic developments within the
country and other factors such as litigation and industrial relations.
25. APPRECIATION AND ACKNOWLEDGEMENT
Your Company is grateful to the Government of India, the Governments of Maharashtra and
Gujarat, the Government of countries where subsidiaries are located and other Regulators
for their continued co-operation, support and guidance. Your Company wishes to thank its
investors, banking community, rating agencies and stock exchanges for their support. Your
Company would like to take this opportunity to express sincere thanks to all its valued
customers, distributors, dealers, agents and suppliers for their continued support and
patronage. Your Directors express their deep sense of appreciation to all the employees
whose outstanding professionalism, commitment and initiative has made the organisation's
growth and success possible and continue to drive its progress. Finally, your Directors
wish to express their gratitude to the members for their trust and support.
For and on behalf of the Board
|
U. Shekhar |
K. Natarajan |
Navi Mumbai |
Managing Director |
Executive Director & COO |
May 23, 2023 |
DIN: 00265017 |
DIN: 07626680 |