Black Rose Industries Ltd — AGM Information 2021

Sep 29, 2021

September 29, 2021

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BSE Limited
Corporate Relationship Department
P.J. Towers, Dalal Street,
Fort, Mumbai – 400001.

Scrip Code: 514183 Sub: Chairman’s Speech at 31[st] Annual General Meeting of the Company

Dear Sir,

Please find attached herewith Chairman’s Speech delivered at the 31[st] Annual General Meeting of the Company held today through Video Conference mode.

Request you to take the same on your records.

For Black Rose Industries Limited

NEVIL CHARU Digitally signed by NEVIL CHARU AVLANI AVLANI Date: 2021.09.29 14:44:39 +05'30' Nevil Avlani Company Secretary and Compliance Office

Black Rose Industries Ltd.

145/A, Mittal Towers, Nariman Point, Mumbai - 400 021, INDIA Tel.: +91 22 4333 7200 / 2282 4075 l Fax: +91 22 2287 3022

E-mail: investor@blackrosechemicals.com l Website: www.blackrosechemicals.com CIN No.: L17120MH1990PLC054828

Factory : Shree Laxmi Co-op. Industrial Estate Ltd., Hatkanangle, Dist. Kolhapur, Maharashtra, INDIA

BLACK ROSE INDUSTRIES LIMITED

Chairman’s Speech

Dear Shareholders,

A warm welcome to everyone to the 31[st] Annual General Meeting of Black Rose Industries Limited. Like the last year, we are once again meeting virtually as the Covid-19 pandemic necessitates adoption of safety precautions to arrest its spread. At the outset, I wish to express solidarity with all those who lost their dear ones and, wish speedy recovery to those who are infected or battling with the diseases.

In FY 2020-21, the impact of COVID-19 was most severe during the first quarter. Subsequently businesses revived during the next two quarters. However, again as we approached the end of the year the second wave of the pandemic began to adversely impact economies globally. The impact in India was most severe. Furthermore, disruption in supply chains due to international logistics logjam and the unprecedented rise in chemical prices across the board saw major raw materials and intermediaries trading at life-time highs.

Despite such challenges, the company delivered its best ever annual profits this year which was made possible by its proactive approach in dealing with these adversities by preplanning its procurement, logistics, and sales strategy. The company’s many principals and clients provided tremendous support and the year showed us all the strength of togetherness and unity.

Looking ahead, the Company is commissioning a 3,600 MTPA plant in Jhagadia for the manufacture of acrylamide powder, generating a potential annual revenue of ` 65 Crore. The Company aims to replace 100% of imports of this product into India with additional capacity planned to serve large global requirements. Currently, this product is manufactured only in China, which provides the Company with an opportunity to emerge as a China alternative. The Company intends to commence commercial production in Q3 FY 2021-22.

Further, the Company plans to commence the production of n-methylol acrylamide (NMA), a specialty monomer, used in the textiles and coatings industry. Environmental clearance for a capacity of 2,000 MTPA was obtained. The Company began piloting trial and expects to be in production in Q3 FY 2021-22. The product is expected to generate additional revenues of ` 35 Crore.

The Company intends to induct polyacrylamide solids into its manufacturing portfolio with a 10,000 MTPA plant after the completion of its ongoing product expansions of acrylamide solid and NMA. The polyacrylamide solids segment is an attractive prospect. Demand for this product is rising within India and worldwide. This product is expected to generate potential annual revenues of ` 200 Crore at full capacity. First phase of the plant building construction was completed in early 2020.

NEVIL Digitally signed by NEVIL CHARU CHARU AVLANI AVLANI Date: 2021.09.29 14:45:18 +05'30'

Based on the Company’s performance, the Directors are pleased to recommend an equity dividend of 45 paise per equity share on face value of ` 1 each for the year ended 31[st] March, 2021.

Your company remains committed to the highest standards of Health, Safety, Security and Environment or EHSS of its employees and communities while taking business decisions. The Company has implemented internationally recognized ISO Standards in Environment and Quality management systems. The Company is awarded EcoVadis certification, a platform where major companies across the world are evaluated on certain standard parameters in terms of EHSS. The Company currently falls in top 17% globally on this EcoVadis platform and is a silver medalist.

India is among the first countries to have made Corporate Social Responsibility (CSR) mandatory following an amendment in the Companies Act, 2013. At Black Rose, the Company has taken a number of initiatives to pay back to society. Our programs such as Patang Scholars Program, Vidhya Sahyog Program and Aviral Gyan Pariyojna are enriching numerous lives in urban and rural India by providing opportunities to overcome educational and social gaps. During FY 2020-21, the Company has spent an amount of ` 34.32 lakhs on CSR activities mainly in the areas of education and developing social infrastructure.

The company believes that human resources are a critical factor for its growth. The emphasis is on grooming in-house talent enabling them to take on larger responsibilities. The company also has an excellent track record on industrial relations and no man-days were lost on account of strike or dispute during the year. During FY 2020-21, the Company approved the formulation of the Employee Stock Option Scheme 2020 for grant of stock options to eligible employees of the Company.

The Company publishes its quarterly, half yearly and annual financial results in widely circulated newspapers such as Business Standard or Financial Express in English language and in Mumbai Lakshadweep or Pratahkal in Marathi Language. Press reports are given on important occasions to the Stock Exchange where the shares of the Company are listed. The Company also conducts quarterly earnings calls and earnings webinar updating stakeholders on the financial position and latest developments taking place in the Company. These reports, presentations and transcripts are also made available on the website of the Company.

On behalf of your Company’s Board, I record our thanks to the company’s employees for their sincere service, and the company’s principals, clients, bankers, statutory authorities and all organizations and stakeholders connected with the company’s business for their support.

Last but not the least, our deepest gratitude to each one of you, our shareholders. I look forward to your ongoing support and best wishes.

Thank you.

NEVIL Digitally signed by NEVIL CHARU CHARU AVLANI AVLANI Date: 2021.09.29 14:46:17 +05'30'