Dear Valued Shareholders,
On behalf of the Board of Directors, I am pleased to present to you AKI's annual report
for the financial year ended 31 March 2022 ("FY 2021-22").
Keeping Agile To Seize Opportunities After Crisis
Following the large-scale rollout of vaccination
programmes and easing of COVID-19 restrictions, the global economy is gradually
rebounding from the 2020 COVID-19 recession. In line with this, we have seen a broad-
based recovery in most of our market segments.
Our diversified business model, both in terms of suppliers and customers, has proven
robust. Through our agility, AKI was able to seize opportunities as the global economy
recovered, and our business was elevated to a new level. Our net profit aftertax achieved
a 84.59 % growth year-on-year to a record level of Rs. 1.64 Cr. in FY 2022, higher than
pre- COVID-19 levels.
Back On Growth Track
For FY 2022, AKI recorded a revenue of Rs. 63.61 Cr., an increase of 32.98% as compared
to the Rs. 47.83 Cr. recorded in the previous financial year ended 31 March 2021. This was
largely due to higher sales volume and prices from improved business sentiments and
recovery in demand. Geographically, growth in sales was broad-based across the various
markets recording the largest improvements over FY 2021.
Total operating expenses (excluding finance cost) increased marginally year-on-year,
largely due to higher employee remuneration in line with better performance, higher
transport charges in line with higher sales, net foreign exchange loss, as well as higher
depreciation of right-of-use assets. The increase was partially offset by lower fair value
loss from forward exchange contract.
The balance sheet remained sound, with cash and bank balances of Rs. 1.27 Cr. as at 31
March 2022, as compared to Rs. 1.15 Cr. as at 31 March 2021. Overall, our financial
discipline has enabled us to maintain a healthy financial position, providing us with
financial flexibility.
Dawn Of A New Growth Cycle
As the global economy is gradually recovering from the COVID-19 recession, we are
optimistic that this signals the dawn of a new growth cycle for the economy, leather
industry and AKI.
Flowever, we are mindful of the ongoing macro volatilities, such as the possibility of
further waves of infections from COVID-19 variants, tightening of monetary policies in
several economies, rising interest and inflation rates, and war between Russia and
Ukraine, that continue to create uncertainties. Barring any unforeseen circumstances, the
Group is well poised to capitalise on the growth cycle to elevate our business further.
We will strive to enhance our product offerings and provide value-added one-stop
solutions to all our customers, to better manage the supply chain disruptions together.
Besides our strong customer centricity, we will leverage on our diversified business
model, track record of operational excellence and good financial discipline to bring about
longterm value to our stakeholders.
Sustainability
AKI has always regarded sustainability as one of our priorities in creating sustainable
long-term value for our stakeholders. We will continue to put sustainability at the
forefront of our business, balancing between economic objectives and social responsibility
to the best of our abilities.
Words of appreciation
I would like to thank the management team, staff, bankers and business associates for
their support and hard work that has enabled us to come this far. I would also like to
extend my gratitude to my fellow directors for their contributions to the Group and
counsel. Last but not least, I would like to show appreciation to our shareholders for
their constant support.
In this dawn of a new growth cycle, I believe that AKI is well-positioned to seize new
opportunities as we arise by leveraging on our strengths and comprehensive product range
to provide customers with one-stop solutions. We will continue to focus on the execution
of our Asia-centric strategy and strive towards a more sustainable specialty chemicals
business for our customers.