Dear Stakeholders and Partners,

Today, I would like to be grateful to the Universe, to our elders, and to our unflinching support of Team Arrow.

We have been through a horrific pandemic, and yet come out more strong, simply due to the tenacity, loyalty, courage and focus on doing the right thing. My heart goes out to all the youngsters of our workforce, who incessantly, meticulously and tirelessly kept getting the job done—using safest mode of transport and travel. By this I mean all the office boys, drivers, office executives and factory staff. The older age executives, working from home, like me, being authorized signatories and decision makers, needed to get some physical paper work done, as we are still not a paperless working environment. Having said that lots of have changed, and I must also thank the timely reforms done by the Government from time to time.

Covid has taught us to adapt and change our methods of working, and surprisingly, Covid also helped us break the old time shackles of way of office working to working from home. Result is we saved a lot of money, time and with increased and focused productivity, all added up to the bottom line.

Some may even feel that growth has slowed down, as certain jobs can be done (particularly in the field of sales and marketing), but I am happy to say, that every one adapted to the coming pandemic and even increased the prior records.

Anticipating a problem, and creating solutions well in time, like equipping all key personnel with all the tools for working from home started in March, 2020, well before the lockdown was announced. This was the foresight of top management, including our JMD and CFO.

Future is bright from hereon, as the menace of Covid seems to be slowing down, and the world is opening up. There seems to be increased demand of our products and we hope to deliver better results, keeping in mind our focus on efficient working and frugal methods, we are still working from home, and will adapt to the new way of life and central docking systems. Our IT professionals and KMPs are already working on the next 5 year plan, particularly in office management, learning from our foreign offices and foreign partners.

Revenue from our Water Soluble Film continues to be on an upward trend and this year we had good revenues from our Hi-tech product Division, which includes high Security products and IP.

On the Finance side, we have a strong balance sheet with a good positive liquidity position. This ensures that we don’t have a cash flow issue even while we are investing in our committed projects.

Our RND Centre, which went critical last year, had a slight set back, due to lock down and limited personnel present in our Mumbai based premises. These are physical tasks and are difficult to work from home. This center was working till the last day, before shut down, as I remember we all took our trials on new lab coating equipment successfully. During this time, we focused on filing IPs and working out of our Ankleshwar Lab, awaiting Maharashtra to open up totally. It has been working partially since quite some time now.

Our subsidiary Avery Pharmaceuticals Private Limited, which is focused on our patented technology of Actives Embedded WSF, as a Novel Drug Delivery System (NDDS), is expected to startcommercial production soon, as we have received licenses for some of the actives and are now focusing on those actives and nutraceuticalsand are well on their way towards maiden revenues.

Having received our maiden order from one of the reputed clients, our Security products division has successfully started production and we expect this business to bring more revenues, going forward.

On the fire mishap front, we are hopeful of a settlement of our claims, but we decided to invest our own funds to get the plant up and running, while we pursue our rights to our legitimate claims.

Our company is always focused on Hon. Prime Minister’s call on Make In India/Atma Nirbhar Bharat, and have been actively pursuing various GOI procurement tender bids. We intend to aggressively look at these niche products, which are basically import substitutes, creating bigger opportunities for your Company. We are grateful to GOI for promulgating various amendments in Govt. procurement policies and MSME reforms for Indian companies.

Your company intends interalia to focus on Patent Division more aggressively and fortify our patent division so as to get revenues from out-licensing, compensations from infringements, better revenues from our own patented product.Though Covid restrictions continues to have an effect on one of our claims on a leading Pharma company, which we are hopeful to get justice, while we continue to focus on our own subsidiary, Avery Pharma.

We promise to continue to make meaningful investments in people, processes, Research & Development, Intellectual Property and Technology, we will continue to focus newer, greener and Eco-friendly technologies innovated in different geographies globally, bring them to India, for transformation of our future business.

While we continue to ignite our creativity and endure to delivervalue for our shareholders in the long term perspective, we foresee a very bright future going forward.

Finally, I would like to reiterate my gratitude to all our team members,Board of Directors, all the stakeholders, including GOI, and well-wishers for their unstinted support to the Company, even during these difficult times. You all are the pillars and back bone of your company and I am blessed to have you on this journey of creating a wonderful world.

Thanking You,

Shilpan P. Patel
Chairman & Managing Director