Q4.

The company released its 44th Annual Financial Report along with Audited financial statements
for the financial year ended 31st March 2021

Source: GTFL AR 2020-21.cdr (garwarefibres.com)

The major interpretations that can be drawn out of the Director’s report, from a financial
standpoint are -

1) Although the company recorded a 3.74% increase in the standalone revenue there was
a decrease of 6.25% in Profit Before Tax (PBT), which can be attributed to higher costs
as well as higher depreciation & amortisation expenses
2) There has been a rise of 8.52% over the previous consolidated revenue of 985.27 crores
along with a rise of 16.34% in PBT, indicating a strong performance from previously and
newly owned subsidiary companies
3) Dividend payment of Rupees 2.50 (25%) per share on the subscribed equity capital
consisting of 2,06,18,169 equity shares of face value of Rupees 10/- each under the
dividend distribution policy
4) Company has bought back 3,17,391 equity shares of the Company of face value of `
Rupees 10/- each representing 1.52% of the Equity Shares in the then existing total
equity paid-up capital of the Company, attributing to increase in stock price

The Statutory Audit was conducted by M/s. Mehta Chokshi & Shah LLP, Chartered Accountants.
The key audit matter was “Inventory Existence”, the inventory carrying value as at 31st March,
2021 was 19,036.53 lakhs. According to the auditors there were no audit qualifications,
reservations, adverse remarks or disclaimers, in the Auditors' Report.
With the motto of Innovation | Sustainability | Growth Garware Technical Fibers have based
their company on 4 key pillars which are also its major strengths, even during the COVID
pandemic it continued to build on these and grow the company further

1) People first - The COVID pandemic and consequent lockdown posed a severe
challenge to businesses all over the world. Garware Technical Fibers Ltd. (GTFL) was
proactive in its response to the issue. The Company prioritized the health and well-being
of all employees, in keeping with its fundamental principle of putting people first. During
the lockdown, all members of the team were contacted on a daily basis.
Online/telephonic consultations were used to provide expert medical advice. Counseling
sessions were held when needed, and support for medical care was offered. When
manufacturing operations were allowed to resume, new standard operating procedures
were implemented, and strict adherence to safety regulations was guaranteed. GTFL
maintained optimum protection for its personnel, a carefully regulated restart of
operations, and strong morale through these measures. It also supported the
establishment of COVID Care Centers and providing critical medical equipment to
hospitals, such as ventilators and oxygen concentrators, as part of its responsibilities as
a responsible corporate citizen. The company also made plans to feed migrant workers
who were stuck during the lockdown.

2) Honoring Commitments - The extended lockdown in India, which began in the last
week of March 2020, presented GTFL with an unprecedented difficulty. Operations could
only be restored gradually when the lockdown was lifted in stages, and severe supply
route bottlenecks had to be overcome, GTFL answered quickly and adaptably to a wide
range of difficulties. Priorities were set and all operations were linked for delivery on a
worldwide scale, including air freighting of important deliveries, through constant
interaction with consumers. Production was increased by focusing on bottleneck
capacity and using emergency measures such as air freighting some important
machinery. Through trust and relationships nurtured with logistics providers, bankers and
local government authorities, smooth flow of materials and capital was ensured.
Employees' well-being and morale were given special consideration. They guaranteed
that the profound consumer trust in GTFL remained unshaken and that all obligations
were kept by working as a highly energized team.

3) Innovation - With the installation of an innovative solution in Norway, aquaculture has

taken on a new dimension: a massive, moored fish-farm platform dubbed Havfarm,
which is housed in one of the world's largest cargo vessels. Havfarm, which is anchored
offshore, will allow for large-scale salmon rearing and harvesting while providing better
protection from sea waves, bad weather, and lice infestation. The vessel's submerged
part will serve as a steel frame for six enormous cages with cultivation networks. As the
cage supplier, GTFL is a major contributor to this project. The cages' netting, which will
be made from the Company's third-generation V2 solution, will be stronger and last
longer than traditional nets. An eco-friendly anti-fouling effect will be ensured by a
special copper-coating method. GTFL's team addressed the rigorous standards of
 Havfarm's first-of-its-kind needs by drawing on its extensive experience constructing
purse nets for Norway.

4) Infrastructure - Infrastructure development is essential for every economy's progress.

The Indian government's recently established National Infrastructure Pipeline (NIP), a
huge, time-bound effort for energy, roads, trains, and urban projects, has brought the
industry into sharp spotlight. GTFL has the potential to make a significant contribution to
NIP. The Western Dedicated Freight Corridor (WDFC), a project of the Dedicated Freight
Corridor Corporation of India (DFCCIL), has chosen GARMAT, a versatile,
high-performance erosion-control solution developed by the Company's Geosynthetics
Division, to connect the four metropolitan cities of New Delhi, Mumbai, Chennai, and
Kolkata through a dedicated rail-freight corridor. GARMAT has been successfully tested
at WDFC and is expected to set the standard for other railway projects. In the
meanwhile, GTFL's geosynthetics solutions are in use. Meanwhile, GTFL's
geosynthetics solutions are gaining popularity in Europe. Flexible Rope Net (FRN)
Gabions from the Company were selected for a major port project in Poland to minimize
bottom erosion in FY 2020-21.

Corporate Governance rules were changed in the past years by SEBI (Listing Obligations and
Disclosure Requirements), those were maintained in the due course and the new regulations
are correctly followed. These regulations are such as, Prevention of Insider Trading, Ensuring
long term interests of stakeholders, etc. The auditor’s certificate on corporate governance also
mentioned the responsibilities of the auditors and managements and ensured if they are
followed and none of them are using their powers in a negative sense.

The Company has formulated CSR policy in line with the regulatory requirements. We have
identified below key themes for our CSR initiatives and CSR expenditure is incurred on activities
relating to them.
● Support for procurement of Medical Equipment and Health care facilities.
● Support Schools by providing infrastructure, E-learning facilities, etc.
● Undertaking Livelihood enhancement projects in the field of protected cultivation,
farming, aquaculture and other Rural Development initiatives
Shareholding Pattern as on 31st March