Southern Petrochemicals Industries Corporation Ltd

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MANAGEMENT DISCUSSION & ANALYSIS

Your Directors present their 53^rd Annual Report together with the Audited Financial Statements of the Company for the year ended 31^a March 2024.

Taking into account the financial position of the Company and the norms of your Company's Dividend Distribution Policy, the Directors have recommended a Dividend of Rs. 1.50 (15% on the face value) per equity share of Rs. 10 each fully paid-up, for the year 2023-24 on the paid-up equity share capital.

During the financial year 2023-24, the Plants were in operation for about 260 days only and produced neem coated urea of about 5,22,535 MT. Re-assessed Capacity of 6,20,400 MT production could not be achieved due to frequent disturbance in plant machineries and heavy flood because of Michaung cyclone. Plant was operated with mixed feed of Natural gas and Naphtha. Using the opportunity of Flood Maintenance Shutdown 2023 due to Michaung cyclone, Primary reformer catalyst was replaced in Ammonia Plant and the plant was modified to be 100% natural gas based and subsequently it was commissioned during the end of the financial year.

Natural Gas (NG) requirement of your Company to produce 2080 MT/Day is about 1.5 MMSCMD out of which 0.9 MMSCMD of Natural gas is supplied from ONGC's Kanjirangudi fields through (Indian Oil Corporation Limited (IOC) pipeline.

For the balance NG requirement, IOC, an authorized organization for laying the Natural gas pipeline from Ennore to Sayalkudi, has completed the pipeline erection and commissioned during the end of September 2023. Subsequently, IOC made an offer to SPIC for the Reliquefied NG (RLNG) supply and accordingly SPIC was getting prepared for the conversion of Natural gas.

There are no deposits covered under Chapter V of the Companies Act, 2013 (the Act) during the year 2023-24, details of which are required to be furnished.

The Company has raised funds by way of debt issue of 5,000 Unlisted, Rated, Senior, Secured, Redeemable, Non-convertible Debentures of Rs. 1,00,000/- each on private placement basis during September 2023. aggregating Rs. 50 crores to Vivriti Emerging Corporate Bond Fund and Vivriti Alpha Debt Fund - Enhanced.

The Consolidated Financial Statements of the Company are prepared in accordance with Ind AS and forms part of the Annual Report.

Pursuant to Section 129(3) of the Act read with Rule 5 of the Companies (Accounts) Rules, 2014, the Statement containing salient features of the Financial Statements of the Company's Associates and Joint Ventures (in Form AOC-1) is attached to the Financial Statements. Your Company has no Subsidiaries.

During the financial year 2023-24, revenue from operations was ' 1697 Crore as compared to ' 2170 Crore in previous year 2022-23. Linear Alkyl Benzene (LAB), the major product of TPL continues to be the key contributor for the revenue. The fluctuation in crude oil price, increased cost of raw materials and price pressure caused by cheaper imports are key factors for lower revenue. Additionally, the contribution of Caustic lye declined substantially,

influenced by higher raw material prices and a decline in domestic prices.

During the year, the plant operations were partially affected for about a month on account of flooding caused by Cyclone Michaung. TPL made claim with insurance company for the loss and received an adhoc payment of ' 4.59 Crore and awaiting the final assessment report from insurance company.

The Board of TPL has recommended a dividend of ' 1.20 per equity share of ' 10 each fully paid-up for the year 2023-24 (15% in the previous year) subject to the approval of Members at the ensuing AGM.

To reduce the carbon footprint of the product, the company has converted both of the boilers to Biomass. The company has also imported Green soda ash and established world's first Green soda ash production during Nov-2023.

Refurbishment of defective systems and installation of newer ones continued during the year to stabilize and also increase the production. The plant is also replacing the problematic old generation DCS to latest generation DCS in centralized control room. Due to flood in Tuticorin, the plant production was interrupted by late December and has come back again to reach earlier production levels.

Salt was mostly procured locally and used along with Captive and small parcel of Gujarat salt. During the end of the year, the price of ammonia has softened from earlier levels. The selling price of soda ash and ammonium chloride also reduced consequent to raw material prices. The Company has maintained its consistency of profitability in each quarter like previous year after long 20 years of losses. TFL made profit in all the four quarters, registering a significant net profit for the whole year. The company's networth is improving in positive continuously . The company is also working on its expansion plans. It is expected that the company will continue this trend and the carried over losses will get wiped out in the next 2-3 years.

The 22.0 MW AC Floating Solar Project has been operating as planned. Due to heavy rain and flooding in December 2023, the plant was generating power as usual but could not be exported for a period of 7 days on account of failure at the evacuation substation.

Drawing power from Greenam enables your Company to meet the Renewable Power obligations as stipulated by the Government as well as substantially save on quantity of water lost by evaporation from the water reservoirs.

During the year, the GREENAM made a profit of Rs. 2.28 crores with the total revenue of Rs. 18.57 crores. Like any

renewable project, the EBITDA is high at Rs. 17.19 crores, around 92.51% of the Revenue. Energy supplied during the year was 37.17 million units

DNV (Det Norske Veritas) conducted the Re-certification Audit for QMS.ISO 9001:2015, EMS - ISO 140001:2015 and certified that all the requirements as per the standards are being practiced and there are no non-conformity points. QMS, EMS systems and OHS system certificates are valid till January 2026. DNV have audited the periodical medical examination report being done by the Company for all employees and found to be in order. Green Belt development is being given utmost importance and is a continuing activity with about 1075 tree saplings planted during this year. Your Company has obtained Consent to Operate with mixed feed stock, viz., Natural Gas and Naphtha, valid up to 31^st March 2026. Your Company has achieved 799 days accident free period with 2.78 million manhours for employees. Your Company has been adjudged for "Award of Honor" Occupational Health Safety and Environment Award 2023 by National Safety council - Tamil Nadu Chapter .

Your Company continues to provide a conducive work environment and opportunities for development of its employees. Industrial Relations in the Company have been cordial during the year under review. The number of employees as on 31^st March 2024 is 535. Your Company continues with the regular campus recruitment programme as a process of building the organization from the bottom.

Annual Return in Form MGT-7 for the year 2022-23 as required under Section 92 of the Act has been placed on the website of the Company. The Form MGT-7 for the year 2023-24 shall be filed with Registrar of Companies within the prescribed time after the 53^rd Annual General Meeting of your Company to be held on 19^th September 2024. Thereafter it can be accessed using the web link: https:// www. spic.in/investors/annual-return/.

Since the date of last Report, the Board of Directors have appointed Mr. Sandeep Nanduri, I.A.S. with effect from 6^th November 2023 and Selvi. Apoorva, I.A.S. with effect from 16^th May 2024 as Nominee Directors of TIDCO. Ms. Jayashree Muralidharan, I.A.S, Mr. C Samayamoorthy,

I.A.S., and Dr. V Jaya Chandra Bhanu Reddy, I.A.S. Nominee Directors of TIDCO resigned with effect from 30^th October 2023, 15^th March 2024 and 20^th March 2024 respectively. The Board of Directors placed on record the invaluable services rendered by Ms. Jayashree Muralidharan, I.A.S., Mr. C Samayamoorthy, I.A.S., and Dr. V Jaya Chandra Bhanu Reddy, I.A.S. during their tenure.

Ms. Devaki Ashwin Muthiah shall retire by rotation at the ensuing Annual General Meeting of the Company and being eligible, offers herself for re-election.

The Board of Directors at their Meeting held on 27^th March 2024 re-appointed Mr. Debendranath Sarangi, IAS (Retd.), as Independent Director for a second term of 5 years from 23^rd May 2024, and the approval of the shareholders by Special resolution was obtained through Postal Ballot on 8^th May 2024. In the opinion of the Board, Mr. Debendranath Sarangi, IAS (Retd.), re-appointed as Independent Director during the year, is a person of integrity, with expertise, experience & proficiency. He is independent of the Management.

All the Independent Directors of the Company on the date of this Report have duly submitted the disclosures to the Board stating that they have fulfilled the requirements set out in Section 149 (6) of the Act and the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, as amended so as to qualify themselves to act as Independent Directors.

Pursuant to Section 124 (6) of the Companies Act, 2013 read with The Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules 2016, the Company during March 2018 transferred to IEPF Authority, 1,66,454 equity shares in respect of 1008 shareholders.

As per the information provided by the Registrar and Share Transfer Agent, out of the 1,65,254 equity shares, which remained unclaimed by 1006 shareholders at the beginning of the year, 500 shares were released to 3 shareholders during the year. As at the end of the year 1,64,754 shares remained unclaimed by 1003 shareholders.

Independent Directors are familiar with their roles, responsibilities in the Company, nature of the industry, business model etc., through familiarisation programmes. Documents / Brochures, Reports and Internal Policies of your Company are provided to them. Presentations are made at the Board / Committee Meetings, on Company's Performance, business strategy, risks involved and global business environment. Details of means of familiarization of the business to Independent Directors are disclosed on the Company's website under the following web link: https://www.spic.in/wp-content/uploads/2024/04/ Familiarization-Programmes-2023-24.pdf

The statement in terms of Section 197(12) of the Act read

with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is enclosed vide Annexure II (Page no. 26) forming part of this Report.

M/s. MSKA & Associates, Chartered Accountants (Firm Registration No.: 105047W) Chennai, the Statutory Auditors appointed by the shareholders for a period of five years from 2022-23 shall hold office from the conclusion of 51^st AGM till the conclusion of 56^th AGM of the Company on a remuneration of ' 24 lakh plus out of pocket expenses and applicable taxes for audit and related services, for each year and the Board of Directors has been authorized to revise the remuneration during the term. There is no qualification, reservation or adverse remark or disclaimer made by the Statutory Auditors in their Report on the Standalone and Consolidated Financial Statements of your Company for the financial year 2023-24.

M/s. B Y & Associates, Cost Accountant (Firm Registration No. 003498) was appointed as the Cost Auditor of the Company for the year 2023-24 to carry out the audit of your Company's Cost Accounts and Records of fertilizer business. The Company is required to maintain Cost Records as specified by the Central Government under Section 148 (1) of the Act and that accordingly such accounts and records were made and maintained. The Cost Audit Report for the previous year ended 31^st March 2023 was duly filed within the stipulated time as required under the Act.

In accordance with Section 148(1) of the Act, the Company has maintained the accounts and cost records for

2023- 24, as specified by the Central Government. The Board of Directors at their Meeting held on 16^th May 2024, on the recommendation of the Audit Committee, have re-appointed M/s. B Y & Associates, Cost Accountant (Firm Registration No. 003498) as Cost Auditor for the year

2024- 25 at a remuneration of ' 1,75,000/- plus reimbursement of actual out-of-pocket expenses subject to ratification by Members at the ensuing 53^rd AGM.

In terms of Section 204 of the Act, Regulation 24A of Listing Regulations, your Company appointed Ms. B Chandra, Practicing Company Secretary, Chennai as Secretarial Auditor for 2023-24. The Company has complied with the requirements of the Secretarial Standards specified by the Institute of Company Secretaries of India constituted under Section 3 of the Company Secretaries Act, 1980, and approved as such by the Central Government.

The Secretarial Audit Report for the year 2023-24 as furnished is given as Annexure III (Page no. 28) to this Report. There is no qualification, reservation or adverse

remark or disclaimer made by the Secretarial Auditor in their Report.

Pursuant to the provisions contained in Section 134 (3) of the Act, your Directors to the best of their knowledge and belief and according to information and explanations obtained from the Management confirm that:

a) In the preparation of the annual financial statements for the year ended 31^a March 2024, the applicable Ind AS had been followed along with proper explanation relating to material departures;

b) They have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31^st March 2024 and of the profit of the Company for the year ended on that date;

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

d) The annual accounts have been prepared on a going concern basis;

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

f) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

As per Section 143(12) of the Act, during the year under review, the Statutory Auditors, Cost Auditors and Secretarial Auditors have not reported any instances of frauds committed in the Company by its Officers or Employees, to the Audit Committee formed as per the requirements of Act.

No loans or guarantees were given by the Company under Section 186 of the Act during the year under review.

The transactions entered into by your Company during the year 2023-24 with Related Parties as defined under the Act

were in the ordinary course of business and at arm's length basis. There are no arrangements with related parties to be disclosed as required under Section 188 (1) and 134 (h) of the Act. Form AOC-2 attached vide Annexure V (Page no. 31).

The details of transactions with any person or entity belonging to the Promoter/Promoter Group which holds 10% or more shareholding in the Company, in the format prescribed under Ind AS are furnished in Note No.38 of Notes on Accounts

There has been no material changes or commitments affecting the financial position of your Company that has occurred between the end of the financial year i.e., 31^st March 2024 and the date of this Report.

Your Company has formed an audit group and identified potential possibilities for energy reduction, reliable measures for continuous operation, process safety improvement etc. Efforts were taken continuously and some of the major activities are

a) Overhauling of less efficient turbine and replacement of necessary spares.

b) Replacement of High Temperature Shift Converter Catalyst as its life was about to end.

c) Regular steam audit inside the plant was carried out and weak links were replaced with upgraded traps for energy savings.

d) Preventive checks were carried out in all the steam flanges, critical process locations and same were attended on requirement during the Flood Maintenance Shutdown.

e) Stoppage of Instrument Air Compressors and supplying required Instrument air to Ammonia and Urea plants through the new Gas Turbine Operated Process Air Compressor.

f) Installation of pneumatic actuated steam let down station against the oil actuated let down station

Technology Absorption - Nil

The foreign exchange earned in terms of actual inflows and the foreign exchange outgo in terms of actual outflows during the vear:

Your Company has adequate internal financial control systems to monitor business processes, financial reporting and compliance with applicable regulations. The systems were reviewed by Statutory / Internal Auditors and reported to the Audit Committee of the Board, for identification of deficiencies and necessary time bound actions were taken to improve efficiency at all levels. The Committee also reviews the Report of Internal Auditors, key issues, significant processes and accounting policies. Risk Management is an integral part of the business process. Your Company pursuant to Listing Regulations has constituted a Risk Management Committee and has a Policy on Risk Management to identify and draw mitigation plans to manage risk. The Board of Directors reviews the Risk Management Report periodically.

There are no significant and material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and Company's operations in future.

Corporate Governance Report 2023-24 along with the Certificate of the Statutory Auditors, M/s. MSKA & Associates, Chartered Accountants, confirming compliance to conditions of Corporate Governance as stipulated in the Listing Regulations forms part of this Report.

Your Company has a structured framework for evaluation of the Individual Directors, Chairperson, the Board as a whole and its Committees. The Independent Directors at their Meeting held on 15^th March 2024 evaluated the performance of Non-Independent Directors, Board as a whole, the Chairperson and assessed the quality, quantity and timeliness of flow of information between the Company Management and the Board that is necessary for the Board to effectively and reasonably perform their duties. The Board of Directors at their Meeting held on 16^th May 2024 evaluated the performance of all Independent Directors and the Board as a whole and its

Committees. The evaluation criteria was based on the participation, contribution and guidance offered and understanding of the business etc., which are relevant to the Directors in their capacity as Members of the Board/ Committees.

The details of the Meetings of Board and Audit Committee held and its composition are provided in the Corporate Governance Report.

The Company has a Policy on Material Subsidiary approved by the Board of Directors as per the Listing Regulations and is available on the Company's website under the web link:https://www.spic.in/wp-content/uploads/2021/32/ MATERIAL-SUBSIDIARY-POLICY.pdf

Your Company has a Nomination and Remuneration Policy as required under Section 178(3) of the Act and the Listing Regulations. The details of the Policy are available in Annexure I (Page No. 24) to this Report

The Policy on Related Party Transactions as required under the Listing Regulations and the Act, is available on the Company's website under the web link: https:// www.spic.in/wp-content/uploads/2021/J2/Policy-on- Related-Parties-30th-Mar-2022.pdf

Your Company has a Code of Conduct for Prevention of Insider Trading with a view to regulate trading in securities by the Directors and designated employees of the Company in line with SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended. The details of the Policy are available on the website of the Company under weblink: https:// www.spic.in/wp-content/uploads/2021/02/Code-of- Practices-and-Procedures-for-Fair-Disclosure-of-UPSI1.pdf

The Company has zero tolerance for sexual harassment at workplace. A policy is in place and an Internal Complaints Committee has been constituted which is monitoring the prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of POSH and the Rules made thereunder. There were no complaints reported under the POSH during the year under review.

Pursuant to the provisions of Section 177 of the Act and the Listing Regulations, Whistle Blower Policy for Directors

and employees to report genuine concerns or grievances including reporting of instances of leakage of Unpublished Price Sensitive Information (UPSI) is in place and a Vigil Mechanism established, the details of which are available on the website of the Company under weblink: https://www.spic.in/wp-content/uploads/2021/32/ Whistle-Blower-Policy-and-Vigil-Mechanism- 24.03.2020.pdf

Your Company has a CSR Policy in line with the provisions of the Act. As a responsible corporate citizen, your Company in its endeavour to contribute for the sustained development and growth of the Society at large has taken several initiatives voluntarily. Your Company is not required to spend towards CSR activities, in view of absence of profits computed under Section 198 of the Act. However, the details of CSR initiatives undertaken voluntarily by your Company are given in Annexure IV (Page no. 30) to this Report. The details of the Policy are available on the website of the Company under weblink: https:// www.spic.in/wp-content/uploads/2021/J2/Corporate- Social-Responsibilitv-Policv.pdf DIVIDEND DISTRIBUTION POLICY

Dividend Distribution Policy has been formulated as required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Second Amendment) dated 5^th May 2021. The details of the Policy are available on the website of the Company under weblink: https:// www.spic.in/wp-content/uploads/2021/08/Dividend- Distribution-Policy.pdf MANAGEMENT DISCUSSION AND ANALYSIS INDUSTRY OVERVIEW

The 2023 monsoon season in India concluded with a total rainfall of 94.4% to LPA due to the impact of El Nino. The overall sown area was 2.12% above the normal coverage in the country but was less than that of the previous year. As a result, agricultural food grain production decreased by 6.18% during the year compared to last year. The production of Oilseeds, Sugarcane, cotton & pulses decreased by 11.50%, 8.99%, 3.87% & 1.83% respectively over the previous year. The erratic progression and distribution of the monsoon over India was the major reason for the reduced production of major crops.

The overall availability of Urea during the year was satisfactory despite a reduction in the imports (less by 7% YoY). There was an increase in the supplies Urea from the domestic production which is higher by 10% at 34.41 million tonnes from 28.50 million tonnes during the previous year. The sale of Urea during the year stood at 35.78 million tonnes as against 35.73 million tonnes during the previous year.

Your Company continued to provide services to the farmers in improved cultivation practices, soil health management,

integrated nutrient, and pest management practices to enhance the returns from farming.

Your Company undertook the following activities during the year.

Your Company is the Lead Fertilizer Supplier (LFS) for Tamil Nadu and Puducherry. As an LFS, we ensured the active usage of ePOS devices at the fertilizer retail points. In order to increase this compliance, we have conducted regular trainings, capacity building programs etc in association with the Agriculture Department and National Informatic Centre (NIC). There are 12,673 numbers of ePOS devices deployed in the states of Tamil Nadu and Puducherry.

The Department of Fertilizers, Government of India has introduced a new concept of Pradhan Mantri Kisan Samridhi Kendra (PMKSK) during the year, with an aim to provide quality Agri inputs & services under one roof as an "one stop shop' for the farming community. As a result, Your Company established 2,473 numbers of PMKSK spread across Tamil Nadu, Puducherry, Kerala, Karnataka, Andhra Pradesh, Telangana & Maharashtra. These Centers provide support facilities for testing soil, irrigation water & agri. inputs like fertilizers & seed apart from educating the farmers to practice soil test based nutrient management, integrated pest management, soil health management, etc. & providing information regarding various Govt. schemes.

Through our Mobile Soil Testing Facility, we have extended the soil testing services to farmers located in the border districts of neighboring states of Karnataka and Andhra Pradesh. Based on soil and irrigation test results, we recommended balanced nutrition to crops while preserving the soil heath for sustainability.

We are offering In-house training programs to progressive farmers in our training Centre located at Tuticorin. The outreach programs were conducted to groups of farmers from different parts of the state.

We are maintaining the Model Integrated Agriculture Farm to showcase to trainees for adoption of Integrated Agriculture Production system to further increase the returns from the farms. Through this we encourage agriculture related activities like animal husbandry, poultry, mushroom cultivation etc.

The Bimonthly Tamil Magazine covers relevant

articles related to adoption of improved agricultural practices. The success stories of such adoption are published to popularize fellow farmers. This has become a platform for sharing the success stories as well as a source for new technologies for enhancing the farm income.

India is likely to witness above average rainfall during the monsoon season this year as per IMD 1' stage long range forecast. 106% rainfall in comparison to the LPA is expected by the country's weather office this year. Considering this above average forecast, the country will be working towards a targeted food grain production at 332 million tonnes for the year compared to expected production of 309 million tones during 2023-24.

Demand is expected to be higher for urea during 2024-25 which means, the domestic urea production should be around 33 MT to reduce India's dependence on imports. The promising fact is that the demand can be met by enhanced domestic production of urea through both greenfield & brownfield projects under progress & by replacing the use of 20-25 lakh tonne of conventional urea with Nano liquid urea for top dressing.

Nano Urea, a liquid formulation containing 4 ~ 14 % Nitrogen has been introduced by Indian Farmers Fertiliser Cooperative Ltd (IFFCO) during 2021. This is recommended as a substitute product for prilled and granulated Urea. The acceptance of this Nano Urea by the farmer is yet to gain momentum due to the instability of Nutrient content, non- compatibility with other agro chemicals and higher cost of application. As Urea forms 82% of the total nitrogenous fertilisers consumed in India, Government is encouraging fertilizer companies to formulate strategies to replace Urea with Nano-Urea. National Fertilizers Limited (NFL) and Rashtriya Chemicals and Fertilizers Limited (RCF), under administrative control of Department of Fertilizers, has signed Non-Disclosure Agreement (NDA) & Memorandum of Understanding (MoU) with IFFCO to transfer the technology of Nano Urea from IFFCO.

Your Company has entered a research tie up with Tamil Nadu Agriculture University for a detailed study to know the efficacy and phytotoxicity of Nano Urea in comparison to

Your Company supplies highest quality of Tissue Culture Banana plants to the farmers of Tamil Nadu, Andhra Pradesh and Karnataka. Your Company is offering after sales services to the farmers by providing technical assistance on Banana cultivation. The unit is accredited by the Department of Biotechnology with NCS-TCP certification.

Having got the protocols customized for the production of high value crops like ornamentals, orchids etc., your Company will enter into this ornamental plants segment in the near future.

In order to increase the profitability by optimizing the cost, we are undertaking laboratory modernization activities with induction of higher efficiency - low energy consuming machinery, redesigning the process flow and adoption of new systems to enhance sterility standards in the production laboratories.

It is expected to be completed by August, 2024 to commence the commercial production of high value crop plants by January 2025.

The significant changes in the financial ratios of the Company, which are 25% or more as compared to the previous year are summarized below:

SPIC Urea (Prilled Urea) in Paddy crop. This study will also reveal the economic benefit of using Nano Urea over SPIC Urea in Paddy cultivation. Once the field trails are completed, more information on the efficacy of the product will be available to devise suitable strategies of employing Nano Technology in Nutrient Delivery Systems for agriculture.

The challenge of preventing the sale of Urea outside ePOS is being controlled by the regular monitoring of stocks available at all levels of the distribution channel like whole sellers and retailers through FMS System. Since the monthly movement order for supply obtained from the State Agrl Department is based the requirement net of stock available at retail counters, we could prevent over supply of Urea to meet the Agrl consumption.

The introduction and promotion of Nano Urea by IFFCO is getting momentum in the market. Since this product is not suitable for soil application and recommended for foliar application, the consumption of Urea (granular and prilled) is increasing due to larger availability as well as increase in area of cultivation of crops. It is expected that Nano Urea will take a small share of urea used for top dressing in upland paddy and summer pulses where water shortage is felt. We are also exploring ways to get into this new segment of Nano Urea by bundling aerial spray support by way of Drones; as this will increase the acceptability of Nano Urea among the dry land farmers.

Your Company is grateful for the co-operation and continued support extended by the Department of Fertilizers, Ministry of Chemicals and Fertilizers, Ministry of Petroleum and Natural Gas, Ministry of Agriculture, Ministry of Shipping, Ministry of Corporate Affairs and other Departments of the Central Government, the Government of Tamil Nadu, Governments of other States, Tamil Nadu Industrial Development Corporation Limited, Tamil Nadu Generation and Distribution Corporation Ltd., Indian Oil Corporation Limited, Oil and Natural Gas Corporation Limited, Financial Institutions and Banks. The Directors appreciate the dedicated and sincere services rendered by all the employees of your Company.