FINANCIAL PERFORMANCE REVIEW: During the year under review, total revenue got increased by 10.7% to Rs. 142,880.4 Lakhs from Rs.129,044.4 Lacs in the previous year largely due to portfolio rationalization, volume maximization, and cost rationalization. Due to high raw material cost the EBIDTA growth has not matched the revenue growth. The overall Operating EBIDTA has improved by 3.5% to Rs.15,602.0 Lakhs versus Rs.15,077.0 Lakhs in the previous year. The higher finance cost coupled with higher depreciation cost has inversely impacted the Profit before tax which reduced by 10.9% to Rs.10,108.1 Lakhs against Rs.11,342.5 Lakhs of the previous year and the Net Profit which reduced by 5.5% to Rs.7,297.9 Lakhs against Rs.7,703.9 Lakhs of the previous year.

A. CONSERVATION OF ENERGY a) Efforts made for conservation of energy: - 1. Dedicated team has worked on to implementing various projects / initiatives relating to Thermal and Electrical energy saving which led to reduction in Steam consumption. 2. Installation of Energy efficient Steam generator AFBC fluidized bed 33 TPH. Steam to fuel ratio improved from 5.8 to 6.4 kg/kg. Steam cost reduction per MT from Rs. 1500 to Rs.1150 3. Power consumption per MT of DK reduced from 2300 to 2150. 4. National energy conservation awareness programme conducted with various competitions for period 14th Dec-18 to 20th Dec-18. 5. Utility Systems up-gradation (like Brine and cooling water system) were undertaken during the year. Energy efficiency improvement was seen in each system. 6. Achieved an Energy efficiency improvement in cooling water systems to DK-II plant. Improvement in Tower effectiveness has increased from 47% to 55%. 7. Cogeneration power plant was utilized to achieve maximum output in the year. Specific power generation per MT of steam is improved from 132 to 136 units. 8. The Company is using Energy efficient technologies for new projects design & implementation. 9. Projects were also identified for further energy conservation in thermal and electrical energy. 10. Awareness training was continuously being imparted to employees about need of energy conservation. b) Impact of above measures on consumption of energy: - The Company expects more than 8 % reduction in energy consumption during the next year. c) Capital investment on energy conservation equipment: - Rs. 2900 Lakhs. d) Power & Fuel Consumption: For Production of Ethyl Acetate & Diketene Derivative Products: Particulars Year ended March 2019 Year ended March 2018 1. Electricity Unit KWH 60,304,774 53,531,265 Total Amount Rs. in Lakhs 4459.9 4230.6 Rate/Unit Rs./Unit 7.40 7.90 2. Coal Quantity MT 88,490 79,597 Total Amount Rs. in Lakhs 5665.6 4751.5 Rate/Unit Rs./Mt. 6403 5969 3. C-9 Plus Quantity MT 474 418 Total Amount Rs. in Lakhs 208.5 136.1 Rate/Unit Rs./Mt. 43952 32541 4. Bagasse Quantity MT - 23 Total Amount Rs. in Lakhs - 0.8 Rate/Unit Rs./Mt. - 3596 I. 1. Power generated from Alternative Energy Sources: Generated by Wind Mills in: a. Karnataka* Total Units KWH 1,985,373 1,881,623 Value Rs. 7.17 6.38 b. Maharashtra* Total Units KWH 1,870,541 1,987,556 Value Rs. 9.90 10.24 * The power generated was supplied to the State Electricity Utilities under PPAs. II. CONSUMPTION PER UNIT OF PRODUCTION: Major Products Year ended March 2019 Year ended March 2018 I. Acetyls (a) Electricity Kwh/Mt. 82 76 (b) Coal Kg/Mt. 0 18 (c) Steam (From CPP) Kg/Mt. 2405 2314 II. Speciality (a) Electricity Kwh/Mt. 1531 1345 (b) Coal Kg/Mt. 758 816 III. Special Denatured Spirit (a) Molasses Kg/Ltr. 3814 4219

B. TECHNOLOGY ABSORPTION (a) Research & Development: Sr. No. Particulars Details 1. Major efforts made towards technology absorption The company continues its efforts for new technologies in the following areas: ? Process intensification: Investments this year will yield benefits in the coming years ? Product optimization: Large impact commercial products are being reviewed for improvements. ? New product development: We are developing new intermediates for the life science, crop science and pigment industry. 2. Benefits derived as a result of the above R&D Creation of new technology platforms, giving the company access to more opportunities. 3. Information regarding imported technology (Imported during last three years) - N.A. - The Company has incurred following expenditure on Research & Development. (Rs. in Lakhs) Particulars March 2019 March 2018 a) Capital 80.3 584.5 b) Recurring 178.1 206.8 Total ( a + b) 258.4 791.3 Total R&D Expenditure as % of Total Turnover 0.62% (b) Technology Absorption, Adoption & Innovation: NIL

(c) Foreign Exchange Earning and Outgo: (Rs. in Lakhs) Particulars March 2019 March 2018 Foreign Exchange Earnings (In flow) 39717.6 27303.4 Foreign Exchange (Out go) a. Chemicals 74908.4 67847.9 b. Capital Goods 210.6 161.2 c. Expenses 1125.8 3917.8

28. DIRECTORS’ RESPONSIBILITY STATEMENT: To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3)(c) of the Companies Act, 2013: 1. that in the preparation of the annual financial statements for the year ended 31 March 2019, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any; 2. that such accounting policies as mentioned in Note 2 of the Notes to the Financial Statements have been selected and applied consistently and judgment and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31 March 2019 and of the profit of the Company for the year ended on that date; 3. that proper and sufficient care has been taken 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; 4. that the annual financial statements have been prepared on a going concern basis; 5. that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively. 6. that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.