SHREE PUSHKAR Chairmans Speech

Dear Shareholders,

It is my pleasure to welcome you all on behalf of the Board of Directors, to the 23rd Annual General Meeting of your Company. Your Company’s annual report and accounts are with you and with your permission I shall take them as read. Viewing back from here today, we can see that it has been a year of great transition for Shree Pushkar. We are proud to be a listed company and we welcome our 6000 odd new members to our family. It was because of your confidence in us that we have reached this coveted position and we look forward to your continued support and confidence to take the company to better heights.

Our growth story, to my mind has been largely due to our Unique Business Model of cutting costs by backward integration, which have opened up new vistas and have been proving to be our Growth Drivers towards a unique model of Zero effluent. The plan has provided great mileage not only in terms of lower production costs but also, providing newer avenues of expansion which we had never thought of in the past. The fertilizer Division is a glowing example on this count. Having started with a single product we now have

a fairly pronounced division having 4 different products namely SSP SC, NPK and now SOP The division has proved to be a significant contributor to both the Top & the Bottom Lines. And now with the commissioning of the Dyes plant, the future looks brighter, more so on account of a marked shift of global supplies of intermediates from China to India.

Coming to our ‘Industry Scenario’, the so called ‘China Factor’ has been doing the rounds with most of us. In this regard you may recall that the extra large capacities of units in China, which till a few years back posed a perennial threat to us has now transformed to be a boon. In this regard the pollution control factors have played a major role.

Severe scarcity and water contamination in China have compounded land deterioration. Environmental degradation threatens to undermine the country’s growth and exhausts public patience with the pace of reform. It has also bruised China’s international standing and endangered domestic stability as the ruling party faces increasing scrutiny and public discontent. According to 2013 UN figures, life expectancy in China is 75.3, and the life expectancy north of the Huai River is 5.5 years lower than in the south due to air pollution owing to an increased incidence of cardio respiratory mortality. More recently, amid waning economic growth, leaders in Beijing appear more determined to institute changes to stem further degradation.

With this backdrop wherein Chinese authorities are enforcing stricter controls on air & water pollution, whereby we have been observing some large names of manufacturers in China facing repeated shutdowns and even closures. We have been observing that the Chinese shares in the supply of these chemicals are slowly coming down, with the benefit accruing to Indian manufacturers in the organized sector. We are thus poised for a quantum leap in the years to come.

I also feel it my duty to mention here the likely fall out of ‘Brexit’ to our industry. India’s net exports of dyes and intermediates is in the range of Rs.24,000 Crs to Rs 26,000 Crs, with the passage of the Brexit referendum, Global currency market have been witnessing huge swings with some of the Asian currencies like the Chinese Yuan have sharply fallen. This fall in Yuan would make Chinese products more competitive Thus Indian companies who are competing with Chinese firms globally are likely to be affected.

However if Indian rupee also becomes competitive, then it may help to protect Indian companies to safeguard their export markets.

However as far as our company is concerned since we are in the manufacture of Reactive Dyes, in which segment China comparatively has a very limited presence, besides the fact that we are having the advantage of Backward integration wherein we manufacture most of the Intermediates required, we feel that we may not face any major competition on this front.

As regards the implementation of our expansion project through the proceeds of the IPO, I may mention here that the same has been progressing satisfactorily. To update you on the current position I wish to say that the reactive dyes plant has been commissioned in January 2016 and after successfully completing trial runs and stabilizing the operational and quality parameters, we have affected the first sale of Dyes manufactured in our own plant in May 2016. I am also happy to mention here that our products are being well accepted in the market and we look forward to a steady improvement in the flow of orders. The expansion of the VS plant has also been commissioned in May 2016 and is operating satisfactorily. The H-Acid plant is currently in the advanced stage of implementation and we expect the same to be commissioned by the beginning of Q3 - 2016.

As regards our SOP project which is outside the purview of the IPO, I may state that though we had been sanctioned a term loan of Rs.12.50 Crs by the SBI, looking to our internal accruals, we have restrained from availing the said term loan and the project has been funded entirely through internal accruals. The plant has been successfully commissioned in end June 2016.

I may also mention here that our efforts for seeking a license for manufacture of NPK mixed fertilizer over the last nearly 2 years, have fetched positive results and we have been successful in receiving the license from Govt. of Maharashtra. As we had sufficient idle capacity in or Soil Conditioner granulation plant, we have established a capacity of 20,000 MTA for manufacture of mixed NPK fertilizer without any capital cost. The production on this item has commenced from January 2016. This project has also been outside the purview of the IPO.

As regards our existing activities, barring the fertilizer division which experienced another year of inadequate monsoon, our full-year performance has recorded a fair growth over last year. After an unprecedented volatility in the prices of some of our Dye-intermediate products which, beginning July 2014, prevailed over a period of nearly a year & a half. This volatility and uncertainty in the prices of the finished products had resulted in the compression of order quantities from our valued customers. I may say that during the year 2015-16, we have experienced a steady reduction in this price volatility and to my mind it has been a period of stabilization. Though this has had a dampening effect on our top line which recorded a fall by nearly 6.5%, the capacity utilization has been better, resulting in improved EBIDTA margins and consequential improvement in the bottom line.

Today, I am happy to say, that those trying times are behind us and we are back on the path of a steady growth. I am proud to say that with our net sales at Rs.248.70 Crs during the FY 2015-16 we have achieved an EBIDTA level of 14.04% at Rs. 34.91Crs, and a PAT of Rs.22.30 Crs which works out to 9%. We have also in March declared an interim Dividend of 10%, which has been the first ever dividend declared by the company

Standing at this point of time, with both our Dyes plant & the SOP plant commissioned, I am confident that the current year should usher us into a different league not only in terms of sales but also in terms of profits.

We have faced a few administrative glitches wherein our earlier Statutory Auditor could not devote sufficient time and was indisposed. The Board has however taken timely action and has appointed M/s. S. K. Patodia & Associates, Charterd Accountants, as our Statutory Auditor. Similarly our Company secretary has resigned from the services of the company for better prospects and we have a new Company Secretary and Compliance officer. These changes have however not brought any pressure on our business or our performance

I would also like to reiterate that our desire for future expansions through synergistic alliances, to improve the depth of our business to provide the desired growth strategy still prevails and we are constantly surveying the horizon in this regard.

I would like to conclude with a sense of confidence and strong optimism that we are striving and will continue to strive for a sustained and enduring growth across our various product divisions.

I take this opportunity to express my sincere thanks to all the shareholders for their continued trust in the Board of Directors and the Management of the Company. On behalf of the Company, I would also like to thank all our stakeholders - customers, dealers, suppliers, other business associates the Government and regulatory agencies and employees for their invaluable support and co-operation in the year gone by and expect similar support in the years to come.

Thank you.

Punit Makharia

Chairman & Managing Director

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.

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