AFFLUENCE

GENERAL REVIEW Total Revenue of the Company for the year on a stand-alone basis amounted to Rs. 2,48,554.23 Lakhs as against Rs. 2,21,456.75 Lakhs in the previous year. The Company’s Earnings before Interest, Depreciation, Taxation and other Amortizations (“EBIDTA”) during the year rose to Rs. 16622.31 Lakhs as against Rs.15,066.26 Lakhs in the previous year, an increase of nearly 10.33% led by strong growth in volume of Gold and Diamond jewellery. Gold jewellery sales in volume terms increased by 270 kg representing an increase of 4.5 % over last fiscal and Diamond sales volume grew by 4337 carats representing an increase of 21 % over last fiscal year. The Franchisee(s) of the Company also witnessed good growth and the revenue increased by 2 % during the current fiscal 2019. The Company continues its focus on expansion of its retail presence pan India. Since previous year ending on 31st March, 2018, the Company has stamped its presence by way of a) Opening [ 04 ] new own Show Rooms located at: 1. Hyderabad,Telengana 2. Varanasi, Uttar Pradesh 3. Adityapur,Jharkhand(Takeover) 4. Salt Lake, West Bengal 5. Nagerbazar,West Bengal b) Opening of new Franchisee Stores located at: 1. Bhadreswar, West Bengal 2. Bokaro,Jharkhand 3. Jhargram,West Bengal 4. Jajpur,Odisha 5. Gangarampur,West Bengal As of 31st March 2019, the Company has a total of 98 showrooms operating under the Brand name of ‘Senco Gold & Diamonds’ out of which 49 stores were operating under Franchisee model.

CONSERVATION OF ENERGY, Information on conservation of energy, stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014, set out as follows: CONSERVATION OF ENERGY The disclosure of particulars with respect to conservation of energy pursuant to Section 134 (3) (m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 is not applicable to the Company. However, the Company makes its best efforts for conservation of energy. The Company has taken a drive to convert all lighting resources of the showrooms to LED devices in due course of time.

TECHNOLOGY ABSORPTION, Information on technology absorption stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014, set out as follows: TECHNOLOGY ABSORPTION During the Year, the Company has not carried out any research and development activities. Accordingly, the information related to technology absorption is not applicable to the Company.

, FOREIGN EXCHANGE EARNING AND OUTGO Information on foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014, set out as follows: FOREIGN EXCHANGE EARNINGS & OUTGO During the year under review, your Company’s foreign exchange earnings and outgo are as under: • Foreign Exchange Earnings :Rs. 13917.21 Lakhs • Foreign Exchange Outgo : Rs. 402.97 Lakhs

DIRECTORS’ RESPONSIBILITY STATEMENT Pursuant to Section 134(5) of the Act and, based upon representations from the Management, the Board, to the best of its knowledge and belief, states that: (a) in the preparation of the Annual Accounts, applicable accounting standards has been followed along with proper explanation relating to material departures; (b) such accounting policies have been selected and applied consistently and such judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year ended 31st March, 2019 and of the loss for that period; (c) proper and sufficient care was taken for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (d) the Annual Accounts have been prepared on a going concern basis; (e) internal financial controls have been laid down to be followed by the Company and that such internal financial controls are adequate and operating effectively; and (f) proper systems have been devised to ensure compliance by the Company with the provisions of applicable laws and that such systems were adequate and working effectively.