AFFLUENCE

During the year under review, Company has achieved operational revenue of INR 50244.56 Lacs compared to Rs. 34277.06 Lacs in previous year. The Company has earned net profit of INR 5023.33 Lacs compared to INR 3864.60 Lacs in previous year. There has been modest increase in the profit despite sluggish markets and impact of GST, also due to the expansion projects of the Company the capital expenditure has been more. The Company has made additional capital expenditure of approx. Rs. 2583 lacs in the current financial year recognized as assets. These expenditures include the expansion projects of the Company at its new sites at Jhagadia (Bharuch) and Sachin (Surat) and also the modernization, capacity enhancement and introduction of new processes at the existing sites. Completion of the construction of plants at the new sites will increase the production capacity, viz. the Company's new automated active ingredients and advance intermediates plant at Jhagadia, new pharmaceuticals intermediates production block in Sachin, will add different capabilities in the Company's manufacturing activities. A new R&D center constructed has become fully functional with the capabilities like kilolab and pilot plant etc. which will help the Anupam team to develop better processes and to introduce new chemistries. This will place the Company in the industry at a comfortable position to be able to manufacture and deliver not only more variety of the products in different chemistries but also to be able to deliver the large quantities and establish as the large supplier for its existing as well as the prospective customers. Company is using measures to control the operational and finance cost. Your Company is focused on the sales growth with particular attention to exports, at the same time though we are also developing our products in the domestic market for a balanced approach, there has been 46% revenue growth from domestic market over previous year. Company is making continuous efforts in the areas of quality of products and research and development to sustain and grow in the competitive market. With demand for the products planned by the company for manufacture in the new plants which are under development as well as have newly started production, we anticipate higher turnover with revenues in the upwards trajectory. Company's growth prospect is strong.

(i)The steps taken or impact on conservation of energy: NIL (ii)The steps taken by the company for utilizing alternate source of energy: NIL (iii)The capital investment on energy conservation equipment: NIL The total energy consumption of company for the year 2018-19 is as hereunder: Sr. No. Type of energy Particulars Details 1Electricity consumption: Units consumed 2,45,67,347.60 Amount (In Rs.) 18,01,00,218.62 Per unit cost (In Rs.) 7.33 2 Gas Consumption: Quantity in Cubic Meter 14,78,291.25 Amount (In Rs.) 5,94,36,678.75 Per cubic meter cost(In Rs.) 40.21 3 Coal & Lignite: Quantity in MT 11,475.12 Amount 4,76,82,878.01 Per MT cost (In Rs.) 4,155.33 4Steam: Quantity in Kg 3,83,44,775.00 Amount (In Rs.) 7,78,20,315.10 Per cubic meter cost (In Rs.) 2.03 5 Diesel: Aggregate amount (In Rs.) 1,01,92,609.66

1.The efforts made towards technology absorption: Nil 2.The benefits derived like product improvement, cost reduction, product development or import substitutions: Nil 3.In case of imported technology: Nil Expenditure of R&D: Sr. No. Particular 2018-19 2017-18 1 Capital 2,56,50,933 2,24,26,969 2 Recurring 20,65,289 11,13,070 3 Total 2,77,16,222 2,35,40,039 4 Total R & D Expenditure as a % of total turnover 0.55 0.69

The foreign exchange earnings*: INR 2,98,40,38,234 (PY 1NR 2,00,61,18,854) The foreign exchange outgo** : INR 73,38,81,741 (PY INR 51,57,18,066) Foreign exchange outgo- ECB# : INR 35,75,67,567 (PY INR 19,67,25,211) (*FOB Value of exports; ** CIF Import of materials & import of services; #ECB repayments include interest & principle)

Pursuant to the provisions of Section 134(5) of the Companies Act, 2013 (Companies Act, 2013 shall mean the Companies Act, 2013 along with its statutory amendments, modifications or enactments, re-enactments and any rules framed thereunder from time to time, hereinafter to be referred to as the "Act") the directors of the Company confirm that: (a) In the preparation of the Annual Accounts for the financial 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 as at 31st March 2019 and of the profit and loss account of the company for that period. (c) The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. (d) The directors have prepared the annual accounts on a 'going concern basis' and (e) The directors have devised proper systems to ensure compliance with the provisions of all the applicable laws and that such systems were adequate and operating effectively.