STATE OF COMPANY’S AFFAIRS AND FUTUR OUTLOOK   While sales recorded a growth of 25%, EBITDA grew by about 50% benefiting from economy of scale and higher price realization. Depreciation and finance cots increased with commissioning of the expansion of plant in Vizag.    

A.   Conservation of Energy i.     Steps taken or impact of conservation of Energy :   - Steps have been taken towards improvement of power factor and load factor with a view to achieve optimum power efficiency. ii.    Steps taken for utilizing alternate sources of energy :   - Power is being procured from wind power generators for operation of plant.   - Using solar power panels to generate alternative power. iii.   Capital investment on energy conservation equipment : - 3 419 KINR during the year towards setting up roof top solar power panels.      

B.   Technology Absorption i.     Efforts made towards technology absorption :   Air Separation Plants are imported from outside India. However, the local contents are maximized to the extent possible. Employees are trained in maintaining and upkeep of the plant. ii.    Benefits derived like product improvement, cost reduction, product development or import substitution : - cost reduction from lower dependence on technology suppliers.   - Import substitution from utilization of indigenous spares   iii.   In case of imported technology (imported during last three financial years) :   a.    Details of technology imported : gas generation plant for producing air gases b.    The year of import : 2018-19 c.    Whether technology fully absorbed : yes, in process   d.    If not fully absorbed, areas where absorption hasn’t taken place, and the reasons thereof : N.A. iv.   the expenditure incurred on Research and Development : Nil  

Foreign Exchange Earnings & Outgo   - Foreign exchange earned during the year :  INR   748 Lacs   - Foreign exchange outgo during the year    :  INR 2079 Lacs    

DIRECTOR’S RESPONSIBILITY STATEMENT   In terms of Section 134 (5) of the Companies Act, 2013, the directors would like to state that: a) In the preparation of the annual accounts, the applicable accounting standards have been followed. 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 31st March, 2018 and of the profit or loss of the Company for the year under review. 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 are operating effectively. f) The directors have devised proper system to ensure compliance with the provisions of all applicable laws and that such system are adequate and operating effectively.