AFFLUENCE

The Company is in the business of manufacturing of Caustic-Chlorine and Caustic Potash. This was one more excellent year of the performance where the Company registered remarkable growth in sales and achieved the profitability to set the new land mark. The operating results of the Company are given hereunder: - 1)REVENUE FROM OPERATIONS:- The Revenue from Operations of the Company increased by Rs. 11,287.55 Lakhs i.e. from Rs. 59,751.76 Lakhs in FY 2018 to Rs. 71,039.31 Lakhs in FY 2019, mainly due to increase in sales quantity of Caustic Potash and higher ECU (Electro Chemical Unit) realization both for Caustic Lye and Caustic Potash. 2)OTHER INCOME :- Other Income increased by Rs. 594.20 Lakhs i.e. from Rs. 412.62 Lakhs in FY 2018 to Rs. 1006.83 Lakhs in FY 2019. The increase in other income mainly comprises of profit on sale of investment arising from redemption of Mutual Fund. The Company has redeemed it investments in Mutual Fund in FY 2018-19. 3)EARNING BEFORE INTEREST, TAX DEPRECIATION & AMORTIZATION (EBITDA):- EBITDA has increased by Rs. 6233.86 Lakhs i.e. from Rs. 25,940.99 Lakhs in FY 2018 to Rs. 32174.85 FY 2019. 4)PROFIT BEFORE TAX (PBT): - Profit before Tax (PBT) has increased by Rs. 4712.26 Lakhs i.e. from Rs. 19516.87 Lakhs in FY 2019 to Rs. 24229.13 Lakhs in FY 2018. The reasons for increase in profit. Are:- (1)Increase in Revenue from Operations (2)Higher ECU Realization (3)Higher Capacity utilization of Caustic Potash and (4)Increase in Other Income. The Profitability of the Company would have been better but for the certain following exceptional items :- (1)Payment of dividend including tax to Non Convertible Redeemable Preference Shares ( NCRPS) holders (Rs. 1851Lakhs) (2)Payment of Success fees to Promoters ( Rs. 1500 Lakhs) (3)Mark to Market provision for ECB Loan (Rs. 362 Lakhs)

Foreign Exchange Earnings and Outgo: as on 31st March 2019. The particulars with regards to: - Foreign exchange earnings Rs. 3567.06 Lakhs Foreign exchange outgo Rs. 11208.77 Lakhs

To the best of their knowledge and belief and according to the information and explanation obtained the Board hereby submits its responsibility Statement in accordance with the provisions of Section 134(5) of the Companies Act, 2013:— a)In the preparation of the Annual Accounts for the year ended on 31st March, 2019, the applicable accounting standards had been followed along with proper explanation relating to material departures; b)The Directors had 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 at 31st March, 2019 and of the profit of the Company for the period ended on 31st March, 2019. c)The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d)The Directors had prepared the annual accounts on a going concern basis; e)The Directors had laid down Internal Financial Controls and that such Internal Financial Controls are adequate and were operating effectively. f)The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.