AFFLUENCE

a. FINANCIAL RESULTS: The Company's performance along with its subsidiaries during the financial year ended 31st March, 2018 as compared to the previous financial year, is summarized below: (Rs. in lakhs) Particulars For the financial year ended 31st March, 2018 For the financial year ended 31st March, 2017 Standalone Consolidated Standalone Consolidated Income 19,875.91 50,948.52 20,851.59 46,483.20 Less: Expenses 18,115.03 45,202.92 13,810.28 38,334.36 Profit before tax 1,760.88 5,745.60 7,041.31 8,148.84 Less: Current tax 772.40 1,097.82 1,912.31 2,171.21 Tax adjustment in respect of earlier years 3.78 - 24.33 - Deferred Tax (109.61) (104.42) (55.78) (61.60) Profit for the year 1094.31 4,752.20 5,160.45 6,039.23 Total other comprehensive income (net of tax) 2.05 280.95 6.37 (436.56) Total comprehensive income for the year 1,096.36 5,033.15 5,166.82 5,602.67 b. OPERATIONS: The Company is among the leading cloud-communication platform service providers to enterprises, over-the-top (“OTT”) players and mobile network operators. The Company’s range of services includes messaging, voice, email and SMS filtering, analytics and monetization. The Company offers a range of cloud-communication services to clients across diverse sectors including banking and financial services, aviation, retail, e-commerce, logistics, healthcare, hospitality, media and entertainment, pharmaceuticals and telecom. The Company’s operations are internally aligned into the following business verticals: (i) enterprise and OTT; (ii) mobile operator; and (iii) business process outsourcing (“BPO”). Enterprise and OTT. Enterprise and OTT vertical primarily provides cloud-communication platform services to enterprises. Enterprise cloud-communication platform services and solutions include: A2P messaging that includes enterprise messaging, 2Way messaging, enterprise email sender and Acculync; voice application services, which enable enterprises to, via the cloud, connect incoming and outgoing voice calls to their applications and systems. Other voice services include interactive voice response, Click2Call, missed call facility, outbound dialer, and international wholesale voice services. Operator. Through owned communications platform and managed services, the Company provides software and service solutions to mobile operators globally. Main service offerings in this segment include SMS filtering, analytics, and monetization, and hubbing solutions. Business Process Outsourcing (BPO). The Company provides a range of voice, non-voice and consulting services as part of our BPO services. The services include client support, technical support, booking and collection services. Non-voice services include client support through email and chat, IT support, billing and data processing. As part of consulting services, the Company provides support to clients with programme management for credit/debit cards, e-commerce, e-wallet and e-governance services. During the year under review, Company has achieved the net comprehensive income of Rs. 1,096.36 lakhs (on consolidated basis Rs. 5,033.15 lakhs) as against Rs. 5,166.82 lakhs (on consolidated basis Rs. 5,602.67 lakhs) in the previous year. In F.Y. 2016 - 2017 the Company received one time dividend from its subsidiary to the tune of Rs. 3,554 lakhs which resulted in other Income of Rs. 4,009.67 lakhs as against Rs. 369.87 lakhs in F.Y 2017 - 2018. Further the purchase of messaging services increased by 37% from Rs. 10,086.29 lakhs to Rs. 13,776.41 lakhs primarily due to increase in import purchase of message services from Rs. 1,696.89 lakhs in F.Y 2016 - 2017 to Rs. 4,133.67 in Financial Year 2017 - 2018. For the same period revenue from operation increase by 16% from Rs. 16,841.92 lakhs in F.Y. 2016 - 2017 to Rs. 19,506.04 lakhs in F.Y. 2017 - 2018.

b. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo: The particulars as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 in respect of conservation of energy and technology absorption have not been furnished considering the nature of activities undertaken by the Company during the year under review.

b. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo: The particulars as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 in respect of conservation of energy and technology absorption have not been furnished considering the nature of activities undertaken by the Company during the year under review.

a. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo: The particulars as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 in respect of conservation of energy and technology absorption have not been furnished considering the nature of activities undertaken by the Company during the year under review. Details of foreign exchange earned and used during the year are as follows: (Rs. In Lakhs) Particulars 1st April, 2017 to 1st April, 2016 to 31st March, 2018 31st March, 2017 [Current F.Y.] [Previous F.Y.] Actual Foreign Exchange Earnings 8,798.00 12,211.53 Actual Foreign Exchange Outgo 4,154.22 17,25.96

b. Director’s Responsibility Statement: In terms of Section 134(5) of the Companies Act, 2013, in relation to the audited financial statements of the Company for the year ended 31st March, 2018, the Board of Directors hereby confirms that: a. in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; b. such accounting policies have been selected and applied consistently and the Directors 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, 2018 and of the profit of the Company for that year; 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 of the Company have been prepared on a going concern basis; e. proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively;