AFFLUENCE

FINANCIAL performance ANd State of Company affairs The net revenue from operations and other income stands at Rs. 18,150.60 lacs in 2017-18 in comparison to Rs. 9959.41 lacs in 2016-17 and showed a growth of 82.25%. The Profit before Tax (PBT) for the year increased to Rs. 122.58 lacs as compared to Rs. 21.45 lacs in the previous year. The net profit of your Company for the year 2017-18 has been positively impacted on account of saleable steel production i.e. Rs. 79.84 lacs as compared to Rs. 14.34 lacs in the previous year. Your Company is focused to balance cost, quality and aspiration for consumer affordability at every price point. The Company has preserved an amount of Rs. 79.84 Lacs in the Statement of Profit and Loss and thus no sum have been sent to the General Reserves. In aspect of the uncertain market situations, ability of the Company to act viably and profitably and in lieu of requirement of funds for total fixed expenses and operations of the Company, your Directors do not recommend a dividend for the financial year 2017-18.    

The relevant information on conservation of energy, technology absorption and foreign exchange earnings and outgo as stipulated in Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of Companies (Accounts) Rules, 2014, is annexed herewith as ‘’Annexure E’’  forming part of Annual report:  A.     Conservation of energy: a)    Steps taken or impact on conservation of energy and steps taken by the Company for utilizing alternate sources of energy   Continuous efforts/measures are being initiated and training programmes are being imparted to the workers at plant level for conservation of energy.   b)   Capital investment on energy conservation equipment:    No Capital Investment has been made on energy conservation equipment.      

The relevant information on conservation of energy, technology absorption and foreign exchange earnings and outgo as stipulated in Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of Companies (Accounts) Rules, 2014, is annexed herewith as Annexure E  forming part of Annual report: A.     Technology absorption:    i.         Efforts made towards technology absorption:  Continuous efforts are being made during the design, engineering and construction stage to ensure that the technology is understood and necessary measures to minimize energy consumption are incorporated in the plant.  ii.         The benefits derived like product improvement, cost reduction, product development or import substitution:  As a result of above efforts, there was improvement in product quality and productivity, better availability of materials, increase in house capability and saving in fixed processing cost.  iii.         In case of imported technology (imported during the last three years reckoned from the beginning of the financial year):  a.                         The details of technology imported                                     : Nil b.                        The year of import                                                  : Not Applicable c.                         Whether the technology been fully absorbed                      : Not Applicable d.                        If not fully absorbed, areas where absorption has not taken place, and the reasons thereof : Not Applicable iv.         Expenditure incurred on Research and Development: NIL        

The relevant information on conservation of energy, technology absorption and foreign exchange earnings and outgo as stipulated in Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of Companies (Accounts) Rules, 2014, is annexed herewith as Annexure E  forming part of Annual report: Details of Foreign Exchange earned in terms of actual inflows and outgo in terms of actual outflows during the year under reporting:                                                                                                                                                                                                                                                                                  (Rs in Lacs) Particulars 2017-18 2016-17 Inflows 6415.09 2400.71 Outgo Nil Nil    

Pursuant to Section 134(3) and 134(5) of the Companies Act, 2013, the Board of Directors to the best of their knowledge and ability confirm:   i.            In the preparation of annual accounts for the financial year ended 31st March, 2018, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any; ii.            We have selected such accounting policies and applied them consistently and made judgments and made estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on 31st March, 2018 and of the profit of the Company for the year ended on that date;   iii.            We have 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;   iv.            The annual accounts for the financial year ended 31st March, 2018, have been prepared on a going concern basis;   v.            Internal financial controls to be followed by the Company were laid down and that such internal financial controls are adequate and were operating effectively;   vi.            Proper systems were devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.