AFFLUENCE

BUSINESS OPERATIONS & OUTLOOK Standalone: During the financial year ended 31st March, 2019, your Company achieved revenue from operations of Rs. 1,638 lakh as against Rs. 2,085 lakh for the financial year ended 31st March, 2018. The loss after tax for the financial year ended 31st March, 2019 was ` 24 lakh as against the profit after tax of Rs. 303 lakh for the financial year ended 31st March, 2018. In view of overall slowdown and continued stress in the global financial markets, the Indian economy witnessed sluggish growth. Due to continuous slow down and the Indian industry slowly stabilizing on GST implementation coupled with extreme volatility in raw materials prices among others with global crude prices seeing an uptick, the year under review witnessed a sharp decline in revenue that resulted in loss. The situation for the current year is likely to remain challenging with fluctuations in raw material prices, interest rates and stock markets and pressure on Banks due to higher bad loans and overall slowdown in the economy. Your Company will continue to adopt very conservative approach towards deployment of its funds, keeping capital protection in focus. Your Company will continue to strive hard to increase Company’s revenue and achieve higher profitability and enhance shareholder value. Consolidated: On a consolidated basis, your Company achieved revenue from operations of Rs. 1,607 lakh for the financial year ended 31st March, 2019 as against Rs.2,054 lakh for the financial year ended 31st March, 2018. The Profit for the financial year ended 31st March, 2019 was Rs. 676 lakh as against Rs.1,229 lakh for the financial year ended 31st March, 2018. There were no changes in the nature of business of the Company during the year under review. There were no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the financial statements relate and the date of this report.

Details of Conservation of energy (A) Conservation of energy (i)the steps taken or impact on conservation of energy -In the production area at measured intervals solid board of false ceiling replaced with transparent sheet to permit natural light during day session to reduce electricity consumption. (ii)the steps taken by the company for utilizing alternative sources of energy-Nil (iii) the capital investment on energy conservation equipments-Nil

Technology absorption: (i) the efforts made towards technology absorption-Nil (ii)the benefits derived like product improvement, cost reduction, product development or import substitution - Nil (iii)in case of imported technology (imported during the last 3 years reckoned from the beginning of the financial year):-Not Applicable (iv)the expenditure incurred on Research and Development- Nil

Foreign exchange earnings and outgo: (i)The foreign exchange earned (actual inflows) Rs. Nil (ii)The foreign exchange outgo (actual outflows)-Rs. 13.74 lakh

DIRECTORS’ RESPONSIBILITY STATEMENT Your Directors, to the best of their knowledge and belief and according to the information and explanations obtained by them and as required under Section 134(5) of the Companies Act, 2013 state that: (a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures; (b) the Directors have 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 the end of the financial year and of the profit of the Company for that period; (c) the Directors have taken proper and sufficient care 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 Directors have prepared the annual accounts on a going concern basis; (e) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and (f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.