Akshar Spintex Ltd

Dear Shareholders,

It brings me immense pleasure to put forth the 8th Annual Report of your Company, Akshar Spintex Limited, for the nancial year 2020-21.

On the business front your company performed well in FY 2020-21 despite the dynamic domestic and global macroeconomic challenges. Viewed from a nancial lens, your company achieved a 122% increase in pro t after tax at Rs 1.24 crore compared to loss of Rs (5.73) crore in the previous year. Your company's revenue for the year stood at Rs 110.88 crore as against Rs 111.09 crore in the previous year recording an overall growth slightly decline. The Company is continuously taking various initiatives to reduce the operational cost, development of new innovative value added products, and exploring new markets to achieve better margins in the future.

While we have always known that each business stands uniquely apart in its thinking, objectives and resources, we believe the timing is opportunity to run them independently. The year gone by is proof of our innovative approach to doing business whether from the point of view strategy, operations or sustainability allows the company to maintain a space and remain competitive in today's ever challenging market place. After considerable thoughts, our sustainable way to move to the next level on product differentiation that will continue to be our backbone to develop market and stay true to Akshar' core purpose by delivering best quality products of cotton yarn and consistently improve quality of our products.

WE BELIEVE THAT QUALITY PRODUCTS ARE NOT ONLY BY PROMISES BUT ALSO BY PROVEN RESULTS.

Your Company's philosophy is to achieve long- term value to serve the best interest of all stakeholder-shareholders, customers, employees, Government and the society.

Covid-19 pandemic has had a more negative impact on activity in the rst half year than anticipated but "second half year were a good period for Indian spinning mills because there was a huge shortage of cotton yarn due to last year's lockdown (to tackle Covid) and huge demand for yarn came from domestic and international markets. So, spinning mills performed well. The recovery is projected to be more gradual than previously forecast. The future growth prospects remains highly vulnerable for the coming time as well. However, government and various rating agencies are highly optimistic about India's economy and expects economic growth to remain about 10% during nancial year 2021-22.

As I re ect on a uniquely challenging year, one thing is clear, we have all been impacted by COVID-19. My heart goes out to those who are grieving the passing of loved ones, to those who were furloughed or lost their jobs, and to the business owners who have struggled mightily or were forced to shut down. While it has been a tough year for many, I am hopeful that better days are ahead.

I would like to acknowledge the hard work, dedication of our talented employees for their passion and dedication with which they continue to contribute to the culture of excellence. We thank you all for your continued support in our growth. Further also thank you, our investors, for your patience, for showing con dence and trust in management capabilities and guidance thus far and looking forward to the future with optimism and innovation.

As we move forward into our next year, may you and your family stay safe and healthy.

Let's join our hands to create glorious future.