Directors Report of Jayshree Chemicals Ltd.

Mar 31, 2016

Directors'' Report

TO THE MEMBERS

The Directors have pleasure in presenting herewith their Annual Report together with the audited Accounts of the Company for the year ended 31st March, 2016.

FINANCIAL RESULTS (summary)

	31.03.2016	31-03-2015
Profit/(Loss) for the year Less/(Add) : Income Tax/ FBT for earlier years Add: Debit Balance brought forward Balance carried forward to next year	19,54,29,987	(28,27,15,333)
	4,50,413	23,10,696
	19,49,79,574	(28,50,26,029)
	(35,74,91,833)	(7,24,65,804)
	(16,25,12,259)	(35,74,91,833)

OPERATING RESULTS

During the year under review, your Company has achieved production of 20382 MT of Caustic Soda up to 20th September, 2015, generated Wind Power of 338149 kwh and earned Commission of Rs, 15.82 lacs in its Indenting Business.

Sale of the Company''s Chlor Alkali Manufacturing facility at Ganjam in Odisha and Salt Manufacturing Facility at Pundi in Andhra Pradesh on "as is where is basis" on a slump sale as a going concern to Aditya Birla Chemicals (India) Ltd. at a lump sum consideration of Rs, 212 Crores was completed on 20th September, 2015.

INDUSTRIAL RELATIONS

Relations with the staff and workers remained cordial.

GENERAL

The Company has already been accredited with ISO 9001-2008, ISO 14001-2004 and IS0-18000 certifications by DNV.

The welfare activities and other community development programmes around the Factory including aid to educational institutions were continued. The result of the students of Jayshree Chemicals School at Ganjam, who appeared in the ICSE and ISC examinations during the year was cent percent.

The Company''s Shares are listed on the Bombay Stock Exchange Ltd. and the Listing Fees for the year ended 31st March, 2016 has been paid.

The Company''s Shares are available for dematerialization both on National Securities Depository Ltd. and Central Depository Services (India) Ltd. The Company''s ISIN No. is INE 693E01016.

The Board of Directors of the Company has decided in-principle to set up a plant for manufacture of Mono Chloro Acetic Acid and its derivates at Panagarh Industrial Park, Durgapur (West Bengal) and application for allotment of land has since been made to West Bengal Industrial Development Corporation Ltd.

SAFETY

The Company had adequate system for Industrial Safety. There was no accident upto 20th September, 2015.

ENVIRONMENT

As reported earlier, your Company has implemented ''CHARTER ON CORPORATE RESPONSIBILITY FOR ENVIRONMENTAL PROTECTION'' (CREP). It has taken all required steps to fully comply with statutory environmental regulations.

STATEMENT CONTAINING SALIENT FEATURES OF FINANCIAL STATEMENTS OF THE SUBSIDIARY

Pursuant to sub-section (3) of Section 129 of the Companies Act, 2013 the statement containing the salient features of the financial statement of the Company''s subsidiary, is given as Annexure 1.Further, brief about the business of the Subsidiary i.e. East Coast Powers Limited ("ECPL") is as under:

The ECPL has not commenced its business operations. However, it has earned interest on Term Deposits with Bank. Approval of the Government of Odisha for Hydel Project from 24.7 MW to 20 MW, 6 MW and 6 MW aggregating to 32 MW is awaited. On receipt of the same a formal Memorandum of Understanding will be entered into between the Company and the Government of Odisha. Thereafter, the Detailed Project Reports will be submitted to the Government of Odisha for approval.

As required under the Companies Act, 2013 the Board of Directors of the Company has by a resolution given consent for not attaching the balance sheet of ECPL for the year ended 31st March, 2016. Accordingly, the annual Accounts of the ECPL are not annexed to the Accounts of the Company. However, the same for the above year and the related detailed information including a hard copy thereof shall be made available at any point of time to those shareholders of the Company who seek the same. Annual Accounts of ECPL shall also be kept for inspection by any shareholder at the Registered Office of the Company.

CONSOLIDATED FINANCIAL STATEMENTS

As required under Accounting Standard 21, Consolidated Financial Statements of the Company together with its subsidiary, East Coast Powers Ltd., are annexed.

CAPITAL / FINANCE

As on 31st March, 2016, the issued, subscribed and paid up share capital of your Company stood at Rs, 29,32,64,570/-, comprising of 2,93,26,457 Equity shares of Rs, 10/- each.

Details required pursuant to Section 134(3) of Companies Act, 2013

a) Extract of Annual Return

Pursuant to Section 92(3) of the Companies Act, 2013 (''the Act'') and Rule 12(1) of the Companies (Management and Administration) Rules, 2014, extract of Annual Return in Form MGT-9 is Annexed as Annexure 2.

b) Details of Board Meetings

During the year 2015-16, 6 Board Meetings were held, details of which are given below:

Date of the Meeting	No. of Directors, who attended the Meeting
14/05/2015	4
13/08/2015	7
22/08/2015	5
09/11/2015	6
09/02/2016	8
16/03/2016	6

A detailed note on the Board and its Committees is also provided under Corporate Governance Report Section.

The Composition of the Committees and compliances, as per the applicable provisions of the Act and Rules, are as follows:

COMMITTEES OF BOARD

Audit Committee

Sl. No.	Name	Chairman/ Members
1	Shri Prabir Chakravarti Shri D.D. Kothari Shri Satish Kapur Smt. Sindhubala Choudhury	Chairman
2		Member
3		Member
4		Member

During the year, the Committee met on 14/05/2015; 13/08/2015; 09/11/2015 and 09/02/2016.

Nomination and Remuneration Committee

Sl. No.	Name	Chairman/ Members
1	Prabir Chakravarti Shri Satish Kapur Smt. Sindhubala Choudhury	Chairman
2		Member
3		Member

During the year, the Committee met twice on 13/08/2015 and 16/03/2016.

Stakeholders Relationship Committee

Sl. No.	Name	Chairman/ Members
1	Shri Prabir Chakrabarti Shri P. N. Ojha Shri Virendraa Bangur	Chairman
2		Member
3		Member

During the year, the Committee met four times on 14/05/2015; 29/05/2015; 09/09/2015 and 29/02/2016.

Corporate Social Responsibility Committee

Sl. No.	Name	Chairman/ Members
1	Shri Shree Kumar Bangur Shri Virendraa Bangur Shri Prabir Chakravarti	Chairman
2		Member
3		Member

No Meeting was held during the year.

c) Directors'' Responsibility Statement

Pursuant to the requirements of clause (c) of sub-section (3)

of Section 134 of the Companies Act, 2013, your Directors confirm 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) 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 at the end of the financial year and of the profit of the Company for that period;

(c) the Directors had taken proper and sufficient care for 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 had prepared the annual accounts on a going concern basis;

(e) the Directors, had 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 had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

d) Declaration by Independent Directors

Shri Prabir Chakravarti, Shri D. D. Kothari, Shri Satish Kapur and Smt. Sindhubala Choudhury are Independent Directors on the Board of your Company. In the opinion of the Board and as confirmed by these Directors, they fulfils the conditions specified in Section 149 of the Companies Act, 2013 and the Rules made there under about their status as Independent Directors of the Company.

Disclosure on Reappointment of Independent Directors:

Shri Prabir Chakravarti, Shri D. D. Kothari, Shri Satish Kapur and Smt. Sindhubala Choudhury were appointed as Independent Directors on the Board of your Company for a period of 3 Consecutive years with effect from 27th September, 2014. Reappointment of Independent Directors will be done when the need arises in compliance with the Companies Act, 2013.

e) Company''s policy on Directors'' appointment and remuneration as per Section 178(3)

1. Directors'' appointment and remuneration policy is based on the provisions contained in the Companies Act, 2013, the Rules made there under and the Listing Agreement.

2. Remuneration of Key Managerial Personnel and other employees is based on the recommendation of the Nomination and Remuneration Committee and approval of the Board of Directors on the basis of experience and exposure in the prescribed fields.

APPOINTMENT POLICY

The appointment policy for Independent Directors, Key Managerial Personnel & Senior Executives is as under-

(A) Independent Directors :

Independent Directors are appointed based on the criteria mentioned in Section 149(6) of the Companies Act, 2013 and in accordance with other applicable provisions of the Companies Act, 2013, Rules made there under and the Listing Agreement entered into with the Bombay Stock Exchange Ltd.

(B) Key Managerial Personnel (KMP) :

Based on the recommendation of the Nomination and Remuneration Committee, KMP are appointed by the Board of Directors of the Company, based on the qualification, experience and exposure in the prescribed fields. Removal of the KMP is done by the Board of Directors of the Company. Appointment / Removal is in accordance with the provisions of the Companies Act, 2013, Rules made there under and the Listing Agreement entered into with the Bombay Stock Exchange.

Shri R. K. Gupta ceased to be the Company Secretary with effect from 30/01/2016 by resignation.

(C) Senior Executives :

Senior Executives are appointed by the Managing Director and/or the Executive Director of the Company based on their qualification, experience & exposure. Removal of the Senior Executives is done by the Managing Director and/or the Executive Director. Appointment and removal is noted by the Board of Directors of the Company as required under clause 8(3) of the Companies (Meetings of Board and its Powers) Rules, 2014.

f) Explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made:-

i) by the Auditors in their report:

No qualification or reservation has been observed by the Auditors in their Report.

ii) by the Company Secretary in Practice in his Secretarial Audit Report:

No qualification or reservation has been observed by the Secretarial Auditor in his Report.

g) Particulars of loans, guarantees or investments under Section 186.

The Board approved the unsecured loan of '' 16,00,000/- at its Meeting held on 12th August, 2014 to East Coast Powers Ltd. a subsidiary of the Company, bearing interest @ 16.5% per annum.

h) Particulars of contracts or arrangements with related parties referred to in Sub-section (1) of Section 188.

Particulars of contracts or arrangements with related parties referred to in sub-section (1) of Section 188 is annexed herewith [in Form AOC-2] as Annexure-3.

i) The state of the Company''s affairs.

Due to continuous losses, the Board has approved in its Meeting held on 8th September, 2014 sale of the Company''s Chlor Alkali Manufacturing Facility at Ganjam in Odisha and Salt Manufacturing Facility at Pundi in Andhra Pradesh on "as is where is basis" on a slump sale as a going concern to Aditya Birla Chemicals (India) Ltd. at a lump sum consideration of '' 212 Crores. The Company has since completed this sale on 20th September, 2015.

j) Amount proposed to be carried to reserves.

The Company proposes to carry Rs, (1625.12) Lacs to reserves.

k) Recommendation of Dividend

The Board has not recommended any dividend for the financial year ended 31st March, 2016.

l) Material changes and commitments, affecting the financial position of the Company:

There has been 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.

m) Details of conservation of energy, technology absorption, foreign exchange earnings and outgo:

Due to continuous losses, the Board has approved in its Meeting held on 8th September, 2014 sale of the Company''s Chlor Alkali Manufacturing facility at Ganjam in Odisha and Salt Manufacturing Facility at Pundi in Andhra Pradesh on "as is where is basis" on a slump sale as a going concern to Aditya Birla Chemicals (India) Ltd. at a lump sum consideration of '' 212 Crores. The Company has since completed this sale on 20th September, 2015.

Foreign exchange earnings and Outgo

During the year, total foreign exchange earned was '' 15.82 Lakhs.

n) Development and implementation of risk management policy

As per the requirements of the Act, the Company has developed and implemented the Risk Management Policy and the Audit Committee of the Board reviews the same periodically.

The Risk Management Policy of the Company identifies, evaluates and mitigates the operational, strategic and external environment risks. For the same a Committee which has overall responsibility for monitoring and approving the risk policies and associated practices of the Company has been formed and it reviews the risks associated with the Company periodically.

The Policy determines the role of the Risk Management Committee of the Company which has been constituted to assist the Board of Directors of the Company in fulfilling its Corporate Governance oversight responsibilities with regard to the identification, evaluation and mitigation of operational, strategic and external environment risks. The Risk Management Committee has overall responsibility for monitoring and approving the risk policies and associated practices of the Company.

o) Policy of the Company on Corporate Social Responsibility.

Pursuant to Section 135(1) of the Companies Act, 2013 Corporate Social Responsibility Committee (CSR Committee) has been constituted and CSR policy has been adopted. As and when your Company fulfills the criteria specified in Section 135(1) of the Companies Act, 2013, it will approve the CSR Budget. As no CSR activity has been carried no Report on CSR Activities/ Initiatives is enclosed along with this Report.

p) Formal annual evaluation by the Board of its own performance and that of its committees and individual directors

Complied with the provisions of the Companies Act, 2013 and the Listing Agreement.

q) Matters pursuant to Companies (Accounts) Rules, 2014

Shri S.K. Lahoti was appointed as the Company Secretary of the Company with effect from 9th February, 2016.

r) Ratio of Directors Remuneration to Median Employees'' Remuneration & other as per Rule 5(1) to the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

(i) The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the financial year:

Ratio of remuneration of Shri Virendraa Bangur (Managing Director) to the median remuneration of the employees: 4211.82%

Ratio of remuneration of Shri Prabhu Nath Ojha (Executive Director) to the median remuneration of the employees: 1640.73%

None of the other Directors received any remuneration other than the sitting fees for attending meetings of the Board or any Committee of the Board.

(ii) The percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year;

Percentage increase in remuneration of Shri Virendraa Bangur (Managing Director) : Nil

Percentage decrease in remuneration of Shri Prabhu Nath Ojha (Executive Director) : (20.46%)

Percentage increase in remuneration of Shri Pawan Kumar Gupta (Chief Financial Officer): 8.56%

Percentage increase in remuneration of Shri S.K. Lahoti, Company Secretary: 27.62%

(iii) The percentage increase in the median remuneration of employees in the financial year:

During F.Y. 2015-2016, the percentage increase in the median remuneration of employees as compared to previous year was not comparable because the Company has sold its Chloro-Alkali Manufacturing Unit at Ganjam, Odisha and Salt Fields at Pundi, Andhra Pradesh on slump sale basis on "as is where is basis" from 21.09.2015 to Aditya Birla Chemicals (India) Limited. Due to this most of the employees of the Company became employees of Aditya Birla Chemicals (India) Limited from the said date.

(iv) The number of permanent employees on the rolls of Company:

10 permanent employees were on the rolls of the Company at the close of the financial year.

(v) The explanation on the relationship between average increase in remuneration and company Performance:

As the Company was incurring losses, only minimum increases were given to its employees.

(vi) Comparison of the remuneration of the Key Managerial Personnel against the performance of the Company:

Total remuneration paid to the Key Managerial Personnel of the Company during the year: Rs.1,01,95,740/-

As the Company is incurring losses, only minimum increase was given to Shri Pawan Kumar Gupta and Shri S.K.Lahoti and decrease in salary of Shri Prabhu Nath Ojha. Shri Virendraa Bangur was not entitled for any increase.

(vii) Variations in the market capitalization of the Company, price earnings ratio as at the closing date of the current financial year and previous financial year and percentage increase over decrease in the market quotations of the shares of the Company in comparison to the rate at which the Company came out with the last public offer.

Market Capitalization as on 31/03/2016: Rs, 7.08 * 29326457 = Rs, 20,76,31,316

Market Capitalization as on 31/03/2015: Rs, 4.96 * 29326457 = Rs, 14,54,59,227

Price Earnings ratio as on 31/03/2016 : 7.08 / 6.65 = 1.06

Price Earnings ratio as on 31/03/2015 : 4.96 / - 6.16 = (0.805)

% increase over decrease in the market quotations of the shares of the Company in comparison to the rate at which the Company came out with the last public offer = Rs, (15-7.45)/15 * 100 = 50.33% (decrease)

(viii) Average percentile increase already made in the salaries of employees other than the Managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

During F.Y. 2015-2016, the percentage increase in the salaries of employees other than the Managerial personnel as compared to previous year was not comparable because the Company has sold its Chloro-Alkali Manufacturing Unit at Ganjam, Odisha and Salt Fields at Pundi, Andhra Pradesh on slump sale basis on "as is where is basis" from 21.09.2015 to Aditya Birla Chemicals (India) Limited. Due to this most of the employees of the Company became employees of Aditya Birla Chemicals (India) Limited.

(ix) Comparison of the remuneration of the Key Managerial Personnel against the performance of the Company;

As the Company was incurring losses, only minimum increase was given to Shri Pawan Kumar Gupta and Shri S.K.Lahoti. Shri Virendraa Bangur was not entitled for any increase. Shri P. N. Ojha was re-appointed on reduced remuneration.

(x) The key parameters for any variable component of remuneration availed by the directors:

The remuneration availed by the directors during the year did not consist of any variable component.

(xi) The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year:

No employee received remuneration in excess of the remuneration paid to the managing / Executive Director during the year.

(xii) Affirmation that the remuneration is as per the remuneration policy of the Company.

The Company follows its remuneration policy in fixing the remuneration of its employees or directors.

GENERAL

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

1. Details relating to deposits covered under Chapter V of the Act.

2. Issue of equity shares with differential rights, sweat equity shares or ESOP.

3. Neither the Managing Director nor the Whole-time Director of the Company receive any remuneration or commission from the Subsidiary.

4. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and the Company''s operations in future.

Your Directors further state that during the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

INTERNAL FINANCIAL CONTROLS

The internal financial controls with reference to the Financial Statements are commensurate with the size and nature of business of the Company. All transactions are authorized, recorded and reported correctly. Internal Audits and checks are carried out regularly.

VIGIL MECHANISM

Pursuant to the requirements of the Section 177 (9) of the Companies Act 2013, the Company has established Vigil (Whistle Blower) Mechanism which aims to provide a channel to the Directors and employees to report genuine concerns about unethical behavior, actual or suspected fraud or violation of the Codes of Conduct or policy.

The Company is committed to adhere to the highest standards of ethical, moral and legal conduct of business operations and in order to maintain these standards, the Company encourages its employees who have genuine concerns about suspected misconduct to come forward and express these concerns without fear of punishment or unfair treatment.

The mechanism provides for adequate safeguards against victimization of directors and employees to avail of the mechanism and also provide for direct access to the Chairman of the Audit Committee in exceptional cases.

This neither releases employees from their duty of confidentiality in the course of their work nor can it be used as a route for raising malicious or unfounded allegations about a personal situation.

STATUTORY AUDITORS, THEIR REPORT AND NOTES TO FINANCIAL STATEMENTS

In the last AGM held on 4th September, 2015 M/s. K. N. Gutgutia & Co., Chartered Accountants, were appointed as Statutory Auditors of the Company for a period of one year.

Approval for re-appointment of Statutory Auditors M/s. K. N. Gutgutia & Co., Chartered Accountants having Firm Registration No. 304153F on the terms and conditions as approved by the Audit Committee of the Company and as recommended by the Board of Directors of the Company, is being sought from the members of the Company at the ensuing AGM.

Report of the Statutory Auditors along with Notes to Schedules is enclosed to this Report. The observations made in the Auditors'' Report are self-explanatory and do not call for any further comments.

COST AUDIT

As per the Cost Audit Orders, Cost Audit is applicable to the Company''s Caustic Soda, Liquid Chlorine, Hydrochloric Acid and Sodium Hypochlorite products for the year 2015-16.

In terms of the provisions of Section 148 and all other applicable provisions of the Companies Act, 2013, read with the Companies (Audit and Auditors) Rules, 2014, Shri S. P. S. Dangi, Cost Accountant of 339, Saket Nagar, Indore (M.P.), who is a Fellow Member of the Institute of Cost & Works Accountants of India having Membership No.752 has been appointed as Cost Auditor to conduct the audit of cost records of your Company relating to Caustic Soda for the financial year ending on 31st March 2016.

SECRETARIAL AUDIT

In terms of Section 204 of the Act and the Rules made there under, Shri Arun Kumar Jaiswal, Practicing Company Secretary was appointed as Secretarial Auditor of the Company. The Report of the Secretarial Auditor is enclosed as Annexure 4 to this Report. The Report is self-explanatory and do not call for any further comments.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Shri Prabhu Nath Ojha, a Director of the Company retires by rotation at the ensuing Annual General Meeting of the Company and being eligible, offers himself for reappointment.

Shri Prabhu Nath Ojha has been re-appointed as the Executive Director of the Company for a further period of two years with effect from 1st April, 2016.

Shri Virendraa Bangur has been re-appointed as the Managing Director of the Company for a further period of three years with effect from 12th November, 2016.

TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND

Your Company has Rs, 92,806.50/- lying unpaid or unclaimed against Dividend for the year 2008-09 (A/c No.135103000002301) and Rs, 54,793/- against the Interim Dividend for the year 2009-10 (A/c.No. 135103000002813). These amounts will become due for transfer to the Investor Education and Protection Fund on 2nd September, 2016 and 25th November, 2016 respectively. These amounts will be transferred to the Investor Education and Protection Fund on their respective due dates.

Pursuant to the provisions of the Investor Education and Protection Fund (Uploading of information regarding Unpaid and Unclaimed Amounts lying with Companies) Rules, 2012, the Company has already filed the necessary form and uploaded the details of unpaid and unclaimed amounts lying with the Company as on the date of the last AGM (i.e. 4th September, 2015) with the Ministry of Corporate Affairs.

FIXED DEPOSITS

Your Company has not accepted any deposit from public in terms of Section 73 of the Companies Act, 2013.

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis comprising an overview of the financial results, operations / performance and future prospects of the Company is annexed and forms part of this Report.

HUMAN RESOURCES

Your Company treats its human resources as one of its most important assets.

PARTICULARS OF EMPLOYEES

The Company had no employee drawing remuneration specified under the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, during the year under review. Accordingly, the particulars required under the above Rule have not been given.

CORPORATE GOVERNANCE

As per the Regulation 34(3) read with Schedule V of the SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015, a Separate Section on Corporate Governance practices followed by the Company together with a Certificate from the Company''s Auditors confirming compliance forms an integral part of this Report.

ACKNOWLEDGEMENT

Your Directors place on record their appreciation for employees at all levels, who contributed to the growth and performance of your Company.

Your Directors also thank the clients, vendors, bankers, shareholders and advisers of the Company for their continued support.

On behalf of the Board

Virendraa Bangur

Managing Director (DIN : 00237043)

Prabir Chakravarti

Director (DIN: 00273523)

Prabhu Nath Ojha

Place : Kolkata Executive Director

Date : 30th May, 2016 (DIN : 00592544)

---

Mar 31, 2015

Dear Members,

The Directors have pleasure in presenting herewith their Annual Report together with the audited Accounts of the Company for the year ended 31st March, 2015.

FINANCIAL RESULTS (summary)

31.03.2015 31-03-2014 Rs. Rs.

Profit/(Loss) for the year (28,27,15,333) (21,67,38,377)

Less/ (Add) : Provision for Taxation :

- Current Tax - -

- Deferred Tax (Net) - (3,61,42,000)

- MAT Credit Entitlement - -

- Income Tax/ FBT for earlier years 23,10,696 37,197

(28,50,26,029) (18,06,33,574)

Add : Debit/Credit Balance brought (7,24,65,8 04) 10,81,67,770 forward

Balance carried forward to next year (35,74,91,833) (7,24,65,804)

OPERATING RESULTS

During the year under review, your Company has achieved production of 47644 MT of Caustic Soda, generated Wind Power of 53200 kwh and earned Commission of Rs. 51.801 lacs in its Trading Division.

INDUSTRIAL RELATIONS

Relations with the staff and workers remained cordial throughout the year.

GENERAL

The Company has already been accredited with ISO 9001-2008, ISO 14001-2004 and ISO-18000 certifications by DNV and these certifications are being renewed as per procedures.

The welfare activities and other community development programmes around the Factory including aid to educational institutions were continued. The result of the students of Jayshree Chemicals School at Ganjam, who appeared in the ICSE and ISC examinations during the year was cent percent.

The Company's Shares are listed on the Bombay Stock Exchange Ltd. and the Listing Fees for the year ended 31st March, 2015 has been paid.

The Company's Shares are available for dematerialisation both on National Securities Depository Ltd. and Central Depository Services (India) Ltd. The Company's ISIN No. is INE 693E01016.

The Board has approved in their meeting held on 8th September, 2014 sale of the Company's Chlor Alkali Manufacturing facility at Ganjam in Odisha and Salt Manufacturing Facility at Pundi in Andhra Pradesh on "as is where is basis" on a slump sale as a going concern to Aditya Birla Chemicals (India) Ltd. (ABCIL) at a lump sum consideration of Rs.212 Crores. The Company is under the process to finalise the closing date for hand over.

CURRENT OUTLOOK

Future of Chlor Alkali Industry is good. Demand of caustic soda in the State of Odisha has been throughout good. Besides consuming our production, caustic soda from other States also comes to Odisha in huge quantity to meet the ever growing need of alumina /aluminium industry. It is also used by paper, steel, power, pharmaceuticals, textiles, soaps and detergents industries.

Chlorine consumption in the State of Odisha has been always lower due to lack of consuming industries. The ancillary units of CPW have been major consumers besides paper mills, pharmaceuticals and water treatment sector. Demand for Hydrochloric Acid has shown upward trend with addition of more HCl consuming industries in Odisha and nearby Andhra Pradesh.

SAFETY

The Company has adequate system for Industrial Safety. The year under review continued to be NIL accident year.

ENVIRONMENT

As reported earlier, your Company has implemented 'CHARTER ON CORPORATE RESPONSIBILITY FOR ENVIRONMENTAL PROTECTION' (CREP). It has taken all required steps to fully comply with statutory environmental regulations.

STATEMENT CONTAINING SALIENT FEATURES OF FINANCIAL STATEMENTS OF THE SUBSIDIARY

Pursuant to sub-section (3) of Section 129 of the Companies Act, 2013 the statement containing the salient features of the financial statement of the Company's subsidiary, is given as Annexure 1. Further, brief about the business of the Subsidiary i.e. East Coast Powers Limited ("ECPL") is as under:

The ECPL has not commenced its business operations. However, it has earned interest on Term Deposits with Bank. Approval of the Government of Odisha for Hydel Project from 24.7 MW to 20 MW, 6 MW and 6 MW aggregating to 32 MW is awaited. On receipt of the same a formal Memorandum of Understanding will be entered into between the Company and the Government of Odisha. Thereafter, the Detailed Project Reports will be submitted to the Government of Odisha for approval.

As required under the Companies Act, 2013 the Board of Directors of the Company has by a resolution given consent for not attaching the balance sheet of ECPL for the year ended 31st March, 2015. Accordingly, the annual Accounts of the ECPL are not annexed to the Accounts of the Company. However, the same for the above year and the related detailed information including a hard copy thereof shall be made available at any point of time to those shareholders of the Company who seek the same. Annual Accounts of ECPL shall also be kept for inspection by any shareholder at the Registered Office of the Company.

CONSOLIDATED FINANCIAL STATEMENTS

As required under Accounting Standard 21, Consolidated Financial Statements of the Company together with its subsidiary, East Coast Powers Ltd., are annexed.

CAPITAL / FINANCE

As on 31st March, 2015, the issued, subscribed and paid up share capital of your Company stood at Rs. 29,32,64,570/-, comprising of 2,93,26,457 Equity shares of Rs. 10/- each.

Details required pursuant to Section 134(3) of Companies Act, 2013

a) Extract of Annual Return

Pursuant to Section 92(3) of the Companies Act, 2013 ('the Act') and Rule 12(1) of the Companies (Management and Administration) Rules, 2014, extract of Annual Return is Annexed as Annexure 2.

b) Details of Board Meetings

During the year, 5 (five) Board Meetings were held, details of which are given below :

Date of the Meeting No. of Directors, who attended the Meeting

14/05/2014 7

12/08/2014 8

08/09/2014 4

13/11/2014 7

13/02/2015 6

A detailed note on the Board and its Committees is also provided under Corporate Governance Report Section.

The Composition of the Committees and compliances, as per the applicable provisions of the Act and Rules, are as follows:

COMMITTEES OF BOARD

Audit Committee

Sl. No. Name Chairman/ Members

1 Shri Prabir Chakravarti Chairman

2 Shri D. D. Kothari Member

3 Shri Satish Kapur Member

4 Smt. Sindhubala Choudhury Member

During the year, the Committee met on 14/05/2014, 12/08/2014, 13/11/2014 and 13/02/2015

Nomination and Remuneration Committee

Sl. No. Name Chairman/ Members

1 Prabir Chakravarti Chairman

2 Shri Virendraa Bangur* Member

3 Shri Satish Kapur Member

4 Smt. Sindhubala Choudhury Member

During the year, the Committee met once on 14th May, 2014.

*Shri Virendraa Bangur ceased to be a member of the Committee on 13th February, 2015.

Stakeholders Relationship Committee

Sl. No. Name Chairman/ Members

1 Shri Prabir Chakrabarti Chairman

2 Shri D. D. Kothari* Member

3 Shri P. N. Ojha Member

4 Shri Virendraa Bangur Member

During the year, the Committee met on 10/04/2014, 30/04/2014, 31/05/2014, 10/06/2014, 30/06/2014, 21/07/2014, 05/12/2014 and 31/01/2015.

* Shri D. D. Kothari ceased to be a member of the Committee on 13th February, 2015.

Corporate Social Responsibility Committee

Sl. No. Name Chairman/ Members

1 Shri Shree Kumar Bangur Chairman

2 Shri Virendraa Bangur Member

3 Shri Prabir Chakravarti Member

Risk Management Committee

Sl. No. Name Chairman/ Members

1 Shri Virendraa Bangur Chairman

2 Shri Prabhu Nath Ojha Member

3 Shri Ashan Kumar Singh Member

c) Directors' Responsibility Statement

Pursuant to the requirements of clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, your Directors confirm 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) 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 at the end of the financial year and of the loss of the Company for that period;

(c) the Directors had taken proper and sufficient care for 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 had prepared the annual accounts on a going concern basis;

(e) the Directors, had 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 had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

d) Declaration by Independent Directors

Shri Prabir Chakravarti, Shri D. D. Kothari, Shri Satish Kapur and Smt. Sindhubala Choudhury are independent Directors on the Board of your Company. In the opinion of the Board and as confirmed by these Directors, they fulfil the conditions specified in Section 149 of the Companies Act, 2013 and the Rules made thereunder about their status as Independent Directors of the Company.

Disclosure on Reappointment of Independent Directors :

Shri Prabir Chakravarti, Shri D. D. Kothari, Shri Satish Kapur and Smt. Sindhubala Choudhury were appointed as Independent Directors on the Board of your Company for a period of 3 Consecutive years with effect from 27th September, 2014. Reappointment of Independent Directors will be done when the need arises in compliance with the Companies Act, 2013

e) Company's policy on Directors' appointment and remuneration as per Section 178(3)

1. Directors' appointment and remuneration policy is based on the provisions contained in the Companies Act, 2013, the Rules made thereunder and the Listing Agreement.

2. Remuneration of Key Managerial Personnel and other employees is based on the recommendation of the Audit Committee and approval of the Board of Directors on the basis of experience and exposure in the prescribed fields.

APPOINTMENT POLICY

The appointment policy for Independent Directors, Key Managerial Personnel & Senior Executives is as under-

(A) Independent Directors :

Independent Directors are appointed based on the criteria mentioned in Section 149(6) of the Companies Act, 2013 and in accordance with other applicable provisions of the Companies Act, 2013, Rules made thereunder and the Listing Agreement entered into with the Bombay Stock Exchange Ltd.

(B) Key Managerial Personnel (KMP) :

Based on the recommendation of the Audit Committee, KMP are appointed by the Board of Directors of the Company, based on the qualification, experience and exposure in the prescribed fields. Removal of the KMP is done by the Board of Directors of the Company. Appointment /Removal is in accordance with the provisions of the Companies Act, 2013, Rules made thereunder and the Listing Agreement entered into with the Bombay Stock Exchange.

(C) Senior Executives :

Senior Executives are appointed by the Managing Director and/or the Executive Director of the Company based on their qualification, experience & exposure. Removal of the Senior Executives is done by the Managing Director and/or the Executive Director. Appointment and removal is noted by the Board of Directors of the Company as required under clause 8(3) of the Companies (Meetings of Board and its Powers) Rules, 2014.

f) Explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made :

i) by the Auditors in their report :

No qualification or reservation has been observed by the Auditors in their Report.

ii) by the Company Secretary in Practice in his Secretarial Audit Report :

No qualification or reservation has been observed by the Secretarial Auditor in his Report.

g) Particulars of loans, guarantees or investments under Section 186.

The Board approved the unsecured loan of Rs. 16,00,000/- w.e.f 22nd July, 2014 at its Meeting on 12th August, 2014 to East Coast Powers Ltd. a subsidiary of the Company, bearing interest @ 16.5% per annum.

h) Particulars of contracts or arrangements with related parties referred to in Sub-section (1) of Section 188.

Particulars of contracts or arrangements with related parties referred to in sub-section (1) of Section 188 is annexed herewith [in Form AOC-2] as Annexure-3.

i) The state of the Company's affairs.

Due to continuous losses, the Board has approved in their Meeting held on 8th September, 2014 sale of the Company's Chlor Alkali Manufacturing facility at Ganjam in Odisha and Salt Manufacturing Facility at Pundi in Andhra Pradesh on "as is where is basis" on a slump sale as a going concern to Aditya Birla Chemicals (India) Ltd. at a lump sum consideration of Rs. 212 Crores. The Company is under the process to finalise the closing date for hand over.

j) Amount proposed to be carried to reserves.

The Company proposes to carry Rs. (-3574.92) Lacs to reserves.

k) Recommendation of Dividend

The Board has not recommended any dividend for the financial year ended 31st March, 2015.

l) Material changes and commitments, affecting the financial position of the Company :

There has been no material changes and commitments, if any, 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.

m) Details of conservation of energy, technology absorption, foreign exchange earnings and outgo.

(a) Conservation of energy

(i) the steps taken or impact on conservation of energy

1) Implementation of VFD for boiler FD fan motor.

2) Recoating of high voltage cell elements in Cell House.

3) By taking various technical measures, power factor has improved from 0.9950 to 0.9957 to restrict maximum demand.

(ii) the steps taken by the Company for utilizing alternate sources of energy

None

(iii) the capital investment on energy conservation equipments

Recoating cost (Rs. 1.07 Cr) VFD (Cost Rs. 3.73 Lacs)

(b) Technology absorption

(i) the efforts made towards technology absorption

Excess Barium &Strontium raise the voltage and decrease the current efficiency. To maintain the Barium concentration < 100 ppb and strontium concentration < 50 ppb in feed brine, the duration of ion exchange regeneration was reduced from 72 hours to 48 hours.

(ii) the benefits derived like product improvement, cost reduction, product development or import substitution

The rate of rising voltage come down , increases the current efficiency and reduce the physical damage of cathode side membrane.

(iii) in case of imported technology (imported during the last three years reckoned from the beginning of the financial year)-

NA

a) the details of technology imported NA

b) the year of import; NA

c) whether the technology has been fully absorbed NA

d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof

NA

(iv) The expenditure incurred on Research and Development Nil

(c) Foreign exchange earnings and Outgo

During the year, total foreign exchange used was Rs.54.10 Lakhs and the total foreign exchange earned was Rs. 51.80 Lakhs.

n) Development and implementation of risk management policy

As per the requirements of the Act, the Company has developed and implemented the Risk Management Policy and the Audit Committee of the Board reviews the same periodically.

The Risk Management Policy of the Company identifies, evaluates and mitigates the operational, strategic and external environment risks. For the same a Committee which has overall responsibility for monitoring and approving the risk policies and associated practices of the Company has been formed and it reviews the risks associated with the Company periodically.

The Policy determines the role of the Risk Management Committee of the Company which has been constituted to assist the Board of Directors of the Company in fulfilling its Corporate Governance oversight responsibilities with regard to the identification, evaluation and mitigation of operational, strategic and external environment risks. The Risk Management Committee has overall responsibility for monitoring and approving the risk policies and associated practices of the Company.

o) Policy of the Company on Corporate Social Responsibility

Pursuant to Section 134 (1) of the Companies Act, 2013 Corporate Social Responsibility Committee (CSR Committee) has been constituted and CSR policy has been adopted. As and when your Company fulfills the criteria specified in Section 134 (1) of the Companies Act, 2013, it will approve the CSR Budget.As no CSR activity has been carried no Report on CSR Activities/ Initiatives is enclosed along with this Report.

p) Formal annual evaluation by the Board of its own performance and that of its committees and individual directors

Complied with the provisions of the Companies Act, 2013 and the Listing Agreement.

q) Matters pursuant to Companies (Accounts) Rules, 2014

Shri Pawan Kumar Gupta was re-designated as the Chief Financial Officer of the Company by the Board of Directors at its Meeting held on 14th May, 2014.

Ratio of Directors Remuneration to Median Employees' Remuneration & other as per Rule 5(1) to the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

(i) The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the financial year:

Ratio of remuneration of Shri Virendraa Bangur (Managing Director) to the median remuneration of the employees: 1740.18%

Ratio of remuneration of Shri Prabhu Nath Ojha (Executive Director) to the median remuneration of the employees: 1081.56%

None of the other Directors receive any remuneration other than the sitting fees for attending meetings of the Board or any Committee of the Board.

(ii) The percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year;

Percentage increase in remuneration of Shri Virendraa Bangur (Managing Director) : Nil

Percentage increase in remuneration of Shri Prabhu Nath Ojha (Executive Director) : 3.31%

Percentage increase in remuneration of Shri Pawan Kumar Gupta (Chief Financial Officer): 9.37%

Percentage increase in remuneration of Shri Raj Kishore Gupta (Company Secretary) : Nil

(iii) The percentage increase in the median remuneration of employees in the financial year : 12.84%

(iv) The number of permanent employees on the rolls of Company :

313 permanent employees were on the rolls of the Company

(v) The explanation on the relationship between average increase in remuneration and Company performance :

As the Company is incurring heavy losses, only minimum increases were given to its employees.

(vi) Comparison of the remuneration of the Key Managerial Personnel against the performance of the Company :

Total remuneration paid to the Key Managerial Personnel of the Company during the year : Rs. 98,98,175/-

As the Company is incurring losses, only minimum increase was given to Shri Pawan Kumar Gupta and Shri Prabhu Nath Ojha. Shri Virendraa Bangur, and Shri Raj Kishore Gupta were not entitled for any increase.

(vii) Variations in the market capitalisation of the Company, price earnings ratio as at the closing date of the current financial year and previous financial year and percentage increase over decrease in the market quotations of the shares of the Company in comparison to the rate at which the company came out with the last public offer.

Market Capitalisation as on 31/03/2015 :

Rs. 4.96 * 29326457 = Rs. 14,54,59,227

Market Capitalisation as on 31/03/2014 :

Rs. 7.45 * 29326457 = Rs. 21,84,82,105

Price Earning ratio as on 31/03/2015 :

4.96 / - 6.16 = (0.805)

Price Earning ratio as on 31/03/2014 :

7.45 / - 9.73 = (0.765)

% increase over decrease in the market quotations of the shares of the Company in comparison to the rate at which the Company came out with the last public offer =

Rs. (15-7.45)/15 * 100 = 50.33% (decrease)

(viii) Average percentile increase already made in the salaries of employees other than the Managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof :

Average percentile increase already made in the salaries of employees other than the Managerial personnel in the last financial year : 15.06%

Percentile increase in the managerial remuneration : 3.53%

(ix) Comparison of the remuneration of the Key Managerial Personnel against the performance of the Company;

As the Company is incurring losses, only minimum increase was given to Shri Pawan Kumar Gupta and Shri Prabhu Nath Ojha. Shri Virendraa Bangur, and Shri Raj Kishore Gupta were not entitled for any increase.

(x) The key parameters for any variable component of remuneration availed by the directors:

The remuneration availed by the directors during the year did not consist of any variable component.

(xi) The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year:

No employee received remuneration in excess of the remuneration paid to the Managing / Executive Director during the year.

(xii) Affirmation that the remuneration is as per the remuneration policy of the Company.

The Company follows its remuneration policy in fixing the remuneration of its employees or directors.

GENERAL

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

1. Details relating to deposits covered under Chapter V of the Act.

2. Issue of equity shares with differential rights, sweat equity shares or ESOP.

3. Neither the Managing Director nor the Whole-time Director of the Company receive any remuneration or commission from the subsidiary.

4. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and the Company's operations in future.

Your Directors further state that during the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

INTERNAL FINANCIAL CONTROLS

The internal financial controls with reference to the Financial Statements are commensurate with the size and nature of business of the Company. All transactions are authorised, recorded and reported correctly. Internal Audits and checks are carried out regularly.

VIGIL MECHANISM

Pursuant to the requirements of Section 177 (9) of the Companies Act 2013, the Company has established Vigil (Whistle Blower) Mechanism which aims to provide a channel to the Directors and employees to report genuine concerns about unethical behaviour, actual or suspected fraud or violation of the Codes of Conduct or policy.

The Company is committed to adhere to the highest standards of ethical, moral and legal conduct of business operations and in order to maintain these standards, the Company encourages its employees who have genuine concerns about suspected misconduct to come forward and express these concerns without fear of punishment or unfair treatment.

The mechanism provides for adequate safeguards against victimization of directors and employees to avail of the mechanism and also provide for direct access to the Chairman of the Audit Committee in exceptional cases.

This neither releases employees from their duty of confidentiality in the course of their work nor can it be used as a route for raising malicious or unfounded allegations about a personal situation.

STATUTORY AUDITORS, THEIR REPORT AND NOTES TO FINANCIAL STATEMENTS

In the last AGM held on 27th September, 2014 M/s. K. N. Gutgutia & Co., Chartered Accountants, were appointed Statutory Auditors of the Company for a period of one year.

Approval for re-appointment of Statutory Auditors M/s. K. N. Gutgutia & Co., Chartered Accountants having Firm Registration No. 304153F on the terms and conditions as approved by the Audit Committee of the Company and as recommended by the Board of Directors of the Company, is being sought from the members of the Company at the ensuing AGM.

Report of the Statutory Auditors alongwith Notes to Schedules is enclosed to this Report. The observations made in the Auditors' Report are self-explanatory and do not call for any further comments.

COST AUDIT

As per the Cost Audit Orders, Cost Audit is applicable to the Company's Caustic Soda, Liquid Chlorine, Hydrochloric Acid and Sodium Hypochlorite products for the year 2014-15.

In terms of the provisions of Section 148 and all other applicable provisions of the Companies Act, 2013, read with the Companies (Audit and Auditors) Rules, 2014, Shri S. P. S. Dangi, Cost Accountant of 339, Saket Nagar, Indore (M.P.), who is a Fellow Member of the Institute of Cost & Works Accountants of India having Membership No.752 have been appointed as Cost Auditor to conduct the audit of cost records of your Company relating to Caustic Soda for the financial year ending on 31st March 2016. The remuneration proposed to be paid to him requires ratification of the shareholders of the Company. In view of this, your ratification for payment of remuneration to the Cost Auditor is being sought at the ensuing AGM.

Your Company submits its Cost Audit Report with the Ministry of Corporate Affairs within the stipulated time period.

SECRETARIAL AUDIT

In terms of Section 204 of the Act and the Rules made there under, Shri Arun Kumar Jaiswal Practicing Company Secretary was appointed Secretarial Auditor of the Company. The Report of the Secretarial Auditor is enclosed as Annexure 4 to this Report. The Report is self-explanatory and do not call for any further comments.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Shri Shree Kumar Bangur, a Director of the Company retires by rotation at the ensuing Annual General Meeting of the Company and being eligible, offers himself for reappointment.

TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND

Your Company has Rs. 62,135/- lying unpaid or unclaimed for a period of seven years against Dividend for the year 2007-08 (A/c no. 135103000000231). Therefore this amount is required to be transferred to the Investor Education and Protection Fund.

Pursuant to the provisions of the Investor Education and Protection Fund (Uploading of information regarding Unpaid and Unclaimed Amounts lying with Companies) Rules, 2012, the Company has already filed the necessary form and uploaded the details of unpaid and unclaimed amounts lying with the Company, as on the date of the last AGM (i.e. 27th September, 2014), with the Ministry of Corporate Affairs.

FIXED DEPOSITS

Your Company has not accepted any deposit from public in terms of Section 73 of the Companies Act, 2013.

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis comprising an overview of the financial results, operations / performance and future prospects of the Company is annexed and forms part of this Report.

HUMAN RESOURCES

Your Company treats its human resources as one of its most important assets.

Your Company continuously invest in attraction, retention and development of talent on an ongoing basis. Number of programs that provide focussed people attention are currently underway. Your Company's thrust is on the promotion of talent internally through job rotation and job enlargement.

PARTICULARS OF EMPLOYEES

The Company had no employee drawing remuneration specified under the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, during the year under review. Accordingly, the particulars required under the above Rule have not been given.

CORPORATE GOVERNANCE

The Company has complied with the provisions of Clause 49 of the Listing Agreement relating to Corporate Governance. Report on Corporate Governance is annexed. Necessary declaration duly signed by the Executive Director of the Company to the effect that all the Board Members and Senior Management personnel have affirmed their compliance on an annual basis with the Code of Conduct as laid down by the Company pursuant to the requirements of Clause 49 of the Listing Agreement with the Bombay Stock Exchange Ltd. is annexed and forms part of this Report.

ACKNOWLEDGEMENT

Your Directors place on record their appreciation for employees at all levels, who contributed to the growth and performance of your Company.

Your Directors also thank the clients, vendors, bankers, shareholders and advisers of the Company for their continued support.

Your Directors also thank the Central and the State Government, and other statutory authorities for their continued support.

On behalf of the Board

Virendraa Bangur Managing Director (DIN : 00237043)

Prabhu Nath Ojha Executive Director (DIN : 00592544)

Place : Kolkata Date : 14th May, 2015

---

Mar 31, 2014

To The Members

The Directors have pleasure in presenting herewith their Annual Report together with the audited Accounts of the Company for the year ended 31st March, 2014.

FINANCIAL RESULTS

Particulars 31-3-2014 31-3-2013

Profit/(Loss) for the year (21,67,38,377) 1,49,46,007

Less/(Add) : Provision for Taxation :

-Current Tax - 29,90,000

- Deferred Tax (Net) (3,61,42,000) 62,89,000

- MAT Credit Entitlement - (29,90,000)

- Income Tax/FBT for earlier years 37,197 -

(18,06,33,574) 86,57,007

Add : Credit Balance brought forward 10,81,67,770 9,95,10,763

Balance carried forward to next year(7,24,65,804) 10,81,67,770

DIVIDEND

The Board has not recommended any dividend for the financial year ended 31st March, 2014.

OPERATING RESULTS

During the year under review, your Company has achieved production of 44,609 M.T. of Caustic Soda, generated Wind Power of 24,20,464 kwh and earned Commission of Rs. 50.41 Lacs in its Trading Division.

The lease of salt fields being No. 2 and 3 at Pundi granted by the Government of India in favour of Shri Gopinath Gajapathy Narayan Deo and Shri Sarbgyan Jagannath Gajapathy Narayan Deo expired on 31st December, 2013. Consequently the sub- lease of the above salt fields granted by the above Lessees in favour of the Company also expired on 31st December, 2013. The Company is taking required steps to get the lease of salt fields as per the new guidelines of the Government of India.

There was a severe cyclone Phailin which hit the State of Odisha in the night of 11th October, 2013. Due to this, extensive damage was done to the boundary walls, sheds, buildings, equiptments, tanks, pipelines and furniture etc. in the Company''s Plant. Besides this, huge quantity of salt was washed away and several trees were uprooted. The power supply was also cut off from the Grid. In view of this, the Company''s Plant was shut for 8 days from 12th October, 2013 to 19th October, 2013. Immediately after the above Cyclone, there was a flood in the adjacent Rishikulya River on 24th /25th October, 2013 due to which there was further loss of production.

CURRENT OUTLOOK

Future of Chlor Alkali Industry is good. Demand of caustic soda in the State of Odisha has been good. Besides consuming our production, caustic soda from other states also comes to Odisha in huge quantity to meet the ever growing need of alumina/aluminium industry. It is also used by paper, steel, power, pharmaceuticals, textiles, soaps and detergents industries.

Chlorine consumption in the State of Odisha has been always lower due to lack of consuming industries. The ancillary units of CPW have been major consumers besides paper mills, pharmaceuticals and water treatment sector. Demand for Hydrochloric Acid has shown upward trend with addition of some HCL consuming industries in Odisha and nearby Andhra Pradesh.

Your Company has evaluated feasibility of some value added products of Chlorine in order to have its own consumption and also ensure that the capacity of the Plant can be expanded in future.

INDUSTRIAL RELATIONS

Relations of the Company with the staff and workers remained cordial throughout the year.

GENERAL

The Company has already been accredited with ISO 9001- 2008 and ISO 14001-2004 certifications by DNV and these certifications are being renewed as per procedures. The Company is further in advance stage of acquiring ISO-18000 certification by DNV which is expected by 2nd quarter.

The welfare activities and other community development programmes around the Factory including aid to educational institutions were continued. The results of the students of Jayshree Chemicals School at Ganjam, who appeared in the ICSE and ISC examinations during the year was cent percent.

The Company''s Shares are listed on the Bombay Stock Exchange Ltd. and the Listing Fees for the year ended 31st March, 2014 has been paid.

The Company''s Shares are available for dematerialisation both at National Securities Depository Ltd. and Central Depository Services (India) Ltd. The ISIN No. is INE693E01016.

The Company places on record its appreciation for the dedicated services of all the Workmen, Staff and Executives. The Company also expresses its gratitude to the State Government, Electricity Authorities, State Bank of Bikaner And Jaipur, State Bank of India, Indian Overseas Bank, United Bank of India and the Local Authorities for their continued co-operation and support.

SAFETY

The Company has adequate system for Industrial Safety. The year under review continued to be NIL accident year.

ENVIRONMENT

As reported earlier, your Company has implemented ''CHARTER ON CORPORATE RESPONSIBILITY FOR ENVIRONMENTAL PROTECTION'' (CREP).

SUBSIDIARY COMPANY

East Coast Powers Ltd., subsidiary of the Company (ECPL), is awaiting necessary approvals from the Government for seffing up Hydel Power Project in the State of Odisha. Since we require huge power for production of Caustic Soda, the Company will take power from its subsidiary on implementation of its Project. This will be beneficial for the Company in future.

As required under Section 212 of the Companies Act, 1956, the Board of Directors of the Company has by a resolution given consent for not attaching the balance sheet of ECPL for the year ended 31st March, 2014. Accordingly, the annual Accounts of the ECPL are not annexed to the Accounts of the Company. However, the same for the above year and the related detailed information including a hard copy thereof shall be made available at any point of time to those shareholders of the Company who seek the same. Annual Accounts of ECPL shall also be kept for inspection by any shareholder at the Registered Office of the Company.

CONSOLIDATED FINANCIAL STATEMENTS

As required under Accounting Standard 21, Consolidated Financial Statements of the Company together with its subsidiary, East Coast Powers Ltd., are annexed.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The Particulars prescribed under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, to the extent applicable, forming part of this Report, are as per annexure.

PARTICULARS OF EMPLOYEES

The Company had no employee drawing remuneration specified under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, during the year under review. Accordingly, the particulars required under the above Section have not been given.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, the Directors state :

(i) that in the preparation of the Annual Accounts, the applicable accounting standards had been followed alongwith proper explanation relating to material departures, if any;

(ii) that 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 at the end of the financial year and of the loss of the Company for that period;

(iii) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) that the Directors had prepared the annual Accounts on a going concern basis.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

A report on Management Discussion and Analysis is annexed and forms part of this Report.

CORPORATE GOVERNANCE

The Company has complied with the provisions of Clause 49 of the Listing Agreement relating to Corporate Governance. Report on Corporate Governance is annexed. Necessary declaration duly signed by the Executive Director of the Company to the effect that all the Board Members and Senior Management personnel have affirmed their compliance on an annual basis with the Code of Conduct as laid down by the Company pursuant to the requirements of Clause 49 of the Listing Agreement with the Bombay Stock Exchange Ltd. is annexed and forms part of this Report.

DIRECTORS

The Industrial Development Corporation of Orissa Limited (IDCOL) has nominated Shri Binaya Kumar Mishra, Head (Mines & Tech) of IDCOL on the Board of Directors of the Company in place of Shri Prasanta Kumar Mishra with effect from 3rd March, 2014. The Directors place on record their appreciation for the valuable services rendered by Shri Prasanta Kumar Mishra during his tenure of office as a Director of the Company.

Shri Virendraa Bangur retire by rotation and being eligible offers himself for re-appointment.

AUDITORS

Statutory Auditors

M/s. K. N. Gutgutia & Co., Chartered Accountants, Auditors of the Company, retire and are eligible for re-appointment. Cost Auditor Shri S. P. S. Dangi of 339, Saket Nagar, Indore (M.P.), who is a Fellow Member of the Institute of Cost & Works Accountants of India having Membership No. 752 was appointed as the Cost Auditor for audit of the Cost Accounts maintained by the Company relating to Caustic Soda for the year ended 31st March, 2013. The subject Cost Audit Report was duly filed on 30th September, 2013. Shri Dangi was re-appointed as such Cost Auditor for the year ending 31st March, 2014.

On behalf of the Board

Place : Kolkata S. K. Bangur

Date : 15th May, 2014 Chairman

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Mar 31, 2013

To the Members

The Directors have pleasure in presenting herewith their Annual Report together with the audited Accounts of the Company for the year ended 31st March, 2013.

Financial Results

Particulars 31-03-2013 31-03-2012

Profit for the year 1,49,46,007 53,58,558

Less/(Add): Provision for Taxation :

- Current Tax 29,90,000 10,22,000

- Deferred Tax (Net) 62,89,000 (24,81,000)

- MAT Credit Entitlement (29,90,000) (10,22,000)

86,57,007 78,39,558

Add: Credit Balance brought forward 9,95,10,763 9,16,71,205

Making a surplus of 10,81,67,770 9,95,10,763

Balance carried forward to next year 10,81,67,770 9,95,10,763

Dividend

The Board has not recommended any dividend for the financial year ended 31st March, 2013.

Operating Results

During the year under review, your Company has achieved the highest ever production of 49,785 M.T. of Caustic Soda, generated highest Wind Power of 30,16,294 kwh and earned highest Commission of ? 29.22 Lacs in its Trading Division.

Current Outlook

The Industry outlook is good. Two new aluminum/alumina plants are coming in the State of Odisha and are in advance stage of completion. Alumina industry is the major caustic soda consumer. Besides, it has multiple uses in paper, steel, power, pharmaceuticals, textiles, soaps and detergents industries.

However, there is no major consumer of chlorine in Odisha where the Company''s plant is located. This has been impacting the chlorine off take. The ancillary units of CPW have been major consumers besides paper mills, pharmaceuticals and water treatment sector. A few industries are upcoming in Andhra Pradesh which will boost demand for Hydro Choric Acid.

Your Company is evaluating feasibility of some value added products of Chlorine in order to have its own consumption and also ensure that the capacity of the Plant can be expanded in future.

The main element of cost of production is power and industrial salt. Power rates are increasing every year. The Company has been making all efforts to reduce power consumption by adopting various innovations in its Plant. The effort of the Company has been recognized by The Indian Chemical Council by awarding the "ICC Certificate of Merit" to the Company for excellence in Energy Conservation and Management for the year 2011.

The Company has been continuously exploring options to optimize cost of raw materials. In this direction, we have started procuring salt from the regions like Tamil Nadu and Andhra Pradesh, besides maintaining some supplies from Gujarat.

The Company has applied for restructuring of debt to the Term Lenders as cash generation is not sufficient to meet its debt obligation.

Industrial Relations

Relations of the Company with the staff and workers remained cordial throughout the year. The Company has entered into a fresh agreement with its labour unions, which shall remain valid upto 31st December, 2015.

General

The Company has been accredited with ISO 9001-2008 and ISO 14001-2004 Certificates for Quality Management System and Environmental Management System respectively by Det Norske Veritas (DNV) and is in process of getting ISO 14000 certification.

The welfare activities and other community development programmes around the Factory including aid to educational institutions were continued. The results of the students of Jayshree Chemicals School at Ganjam, who appeared in the ICSE and ISC examinations during the year was cent percent.

The Company''s Shares are listed on the Mumbai Stock Exchange Ltd. and the Listing Fees for the year ended 31st March, 2013 has been paid.

The Company''s Shares are available for dematerialisation both on National Securities Depository Ltd. and Central Depository Services (India) Ltd. The ISIN No. is INE 693E01016.

The Company places on record its appreciation for the dedicated services of all the Workmen, Staff and Executives. The Company also expresses its gratitude to the State Government, Electricity Authorities, State Bank of Bikaner and Jaipur, State Bank of India, Indian Overseas Bank, United Bank of India and the Local Authorities for their continued co-operation and support.

Safety

The Company has adequate system for Industrial Safety. The year under review continued to be NIL accident year.

Environment

As reported earlier, your Company has implemented ''CHARTER ON CORPORATE RESPONSIBILITY FOR ENVIRONMENTAL PROTECTION''(CREP).

Subsidiary Company

East Coast Powers Ltd., subsidiary of the Company (ECPL), is awaiting necessary approvals from the Government for setting up Hydel Power Project in the State of Odisha. Since we require huge power for production of Caustic Soda, the Company will take power from its subsidiary on implementation of its Project. This will be beneficial for the Company in future.

As required under Section 212 of the Companies Act, 1956, the Board of Directors of the Company has by a resolution given consent for not attaching the balance sheet of ECPL for the year ended 31st March, 2013. Accordingly, the Annual Accounts of the ECPL are not annexed to the Accounts of the Company. However, the same for the above year and the related detailed information including a hard copy thereof shall be made available at any point of time to those shareholders of the Company who seek the same. Annual Accounts of ECPL shall also be kept for inspection by any shareholder at the Registered Office of the Company.

Consolidated Financial Statements

As required under Accounting Standard 21, Consolidated Financial Statements of the Company together with its subsidiary, East Coast Powers Ltd., are annexed.

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo

The Particulars prescribed under Section 217(l)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, to the extent applicable, forming part of this Report, areasperannexure.

Particulars of Employees

The Company had no employee drawing remuneration specified under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, during the year under review. Accordingly, the particulars required under the above Section have not been given.

Directors''Responsibility Statement

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, the Directors state:

(i) that in the preparation of the Annual Accounts, the applicable accounting standards had been followed alongwith proper explanation relating to material departures, if any;

(ii) that 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 at the end of the financial year and of the profit of the Company for that period;

(iii) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) that the Directors had prepared the Annual Accounts on a going concern basis.

Management Discussion and Analysis Report

A report on Management Discussion and Analysis is annexed and forms part of this Report.

Corporate Governance

The Company has complied with the provisions of Clause 49 of the Listing Agreement relating to Corporate Governance. Report on Corporate Governance is annexed. Necessary declaration duly signed by the Executive Director of the Company to the effect that all the Board Members and Senior Management Personnel have affirmed their compliance on an annual basis with the Code of Conduct as laid down by the Company pursuant to the requirements of Clause 49 of the Listing Agreement with the Bombay Stock Exchange Ltd. is annexed and forms part of this Report.

Directors

Shri S. K. Bangur and Shri D. D. Kothari retire by rotation and being eligible offer themselves for re-appointment.

Auditors Statutory Auditor

M/s. K. N. Gutgutia & Co., Chartered Accountants, Auditors of the Company, retire and are eligible for re-appointment.

Cost Auditor

Shri S. P. S. Dangi of 339, Saket Nagar, Indore (M.P.), who is a Fellow Member of the Institute of Cost & Works Accountants of India having Membership No.752 was appointed as the Cost Auditor for audit of the Cost Accounts maintained by the Company relating to Caustic Soda for the year ended 31st March, 2012. The subject Cost Audit Report was duly filed on 1st January, 2013. Shri Dangi was re- appointed as such Cost Auditor for the year ending 31st March, 2013.

On behalf of the Board

Kolkata S. K. Bangur

Date :11th May, 2013 Chairman

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Mar 31, 2012

The Directors have pleasure in presenting herewith their Annual Report together with the audited Accounts of the Company for the year ended 31st March, 2012.

FINANCIAL RESULTS

Particulars 31-3-2012 31-3-2011 Rs Rs

Profit for the year 53,58,558 1,42,51,371

Less/(Add): Provision for Taxation :

- Current Tax 10,22,000 28,41,000

- Deferred Tax (Net) (24,81,000) (35,21,000)

- MAT Credit Entitlement (10,22,000) 41,91,000

- Income Tax Provision/Payment for earlier years - (26,785)

78,39,558 1,07,67,156

Add : Credit balance brought forward 9,16,71,205 8,09,04,049

Making a surplus of 9,95,10,763 9,16,71,205

Balance carried forward to next year 9,95,10,763 9,16,71,205

9,95,10,763 9,16,71,205

DIVIDEND

The Board has not recommended any dividend for the financial year ended 31st March, 2012.

OPERATING RESULTS

The commercial production from the new Plant commenced from 1st April, 2011. The Company could achieve production of 45,233 MT of Caustic Soda being 85% of the installed capacity in the first year of operation of the new Plant.

CURRENT OUTLOOK

The Company has commissioned the latest State of the Art and Environment Friendly Membrane Cell Technology based Plant resulting in increase of capacity by more than double. With the increased production capacity the Company will strengthen its presence in the State of Odisha. The Industry outlook is bright due to expansion by the alumina manufacturers/new alumina projects being implemented which is the major caustic soda consumer industry.

INDUSTRIAL RELATIONS

Relations of the Company with the staff and workers remained cordial throughout the year.

GENERAL

The Company has been accredited with ISO 9001-2008 and ISO 14001-2004 Certificates for Quality Management System and Environmental Management System respectively by Det Norske Veritas (DNV) in the year under review.

The welfare activities and other community development programmes around the Factory including aid to educational institutions were continued. The results of the students of Jayshree Chemicals School at Ganjam, who appeared in the ICSE and ISC examinations during the year continue to be very good.

The Company's Shares are listed on the Bombay Stock Exchange Ltd. and the Listing Fees for the year ended 31st March, 2012 has been paid.

The Company's Shares are available for dematerialisation both on National Securities Depository Ltd. and Central Depository Services (India) Ltd. The ISIN No. is INE 693E01016.

The Company places on record its appreciation for the dedicated services of all the Workmen, Staff and Executives. The Company also expresses its gratitude to the State Government, Electricity Authorities, State Bank of Bikaner And Jaipur, State Bank of India, Indian Overseas Bank and the Local Authorities for their continued co-operation and support.

SAFETY

The Company has adequate system for Industrial Safety. The year under review continued to be NIL accident year.

ENVIRONMENT

As reported earlier, your Company has implemented 'CHARTER ON CORPORATE

RESPONSIBILITY FOR ENVIRONMENTAL PROTECTION' (CREP).

SUBSIDIARY COMPANY

East Coast Powers Ltd., subsidiary of the Company (ECPL), is awaiting necessary approvals from the Government for setting up Hydel Power Project in the State of Odisha. Since we require huge power for production of Caustic Soda, the Company will take power from its subsidiary on implementation of its Project. This will be beneficial for the Company in future.

As required under Section 212 of the Companies Act, 1956, the Board of Directors of the Company has by a resolution given consent for not attaching the balance sheet of ECPL for the year ended 31st March, 2012. Accordingly, the annual Accounts of the ECPL are not annexed to the Accounts of the Company. However, the same for the above year and the related detailed information including a hard copy thereof shall be made available at any point of time to those shareholders of the Company who seek the same. Annual Accounts of ECPL shall also be kept for inspection by any shareholder at the Registered Office of the Company.

CONSOLIDATED FINANCIAL STATEMENTS

As required under Accounting Standard 21, Consolidated Financial Statements of the Company together with its subsidiary, East Coast Powers Ltd., are annexed.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The Particulars prescribed under Section 217(l)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, to the extent applicable, forming part of this Report, are as per annexure.

PARTICULARS OF EMPLOYEES

The Company had no employee drawing remuneration specified under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, during the year under review. Accordingly, the particulars required under the above Section have not been given.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, the Directors state:-

(i) that in the preparation of the annual Accounts, the applicable accounting standards had been followed alongwith proper explanation relating to material departures, if any;

(ii) that 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 at the end of the financial year and of the profit of the Company for that period;

(iii) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities ;

(iv) that the Directors had prepared the annual Accounts on a going concern basis.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

A report on Management Discussion and Analysis is annexed and forms part of this Report.

CORPORATE GOVERNANCE

The Company has complied with the provisions of Clause 49 of the Listing Agreement relating to Corporate Governance. Report on Corporate Governance is annexed. Necessary declaration duly signed by the Managing Director of the Company to the effect that all the Board Members and Senior Management personnel have affirmed their compliance on an annual basis with the Code of Conduct as laid down by the Company pursuant to the requirements of Clause 49 of the Listing Agreement with the Bombay Stock Exchange Ltd. is annexed and forms part of this Report.

DIRECTORS

Shri Prabhu Nath Ojha was appointed as an additional Director of the Company with effect from 17th August, 2011. He holds office upto the date of the ensuing Annual General Meeting of the Company and is eligible for appointment. Shri Ojha was also appointed as the wholetime Director designated as Executive Director of the Company for a period of 3 years with effect from 17th August, 2011.

Shri D. K. Maheshwari ceased to be a Director of the Company by resignation with effect from the close of business on 15th November, 2011. The Directors place on record their appreciation for the valuable services rendered by Shri D. K. Maheshwari during his tenure of office as a Director of the Company.

Smt. Sindhubala Choudhury and Shri Prabir Chakravarti retire by rotation and being eligible offer themselves for re-appointment.

AUDITORS Statutory Auditor

M/s. K. N. Gutgutia & Co., Chartered Accountants, Auditors of the Company, retire and are eligible for re-appointment.

Cost Auditor

Shri S. P. S. Dangi of 339, Saket Nagar, Indore (M.P.), who is a Fellow Member of the Institute of Cost & Works Accountants of India having Membership No.752 was appointed as the Cost Auditor for audit of the Cost Accounts maintained by the Company relating to Caustic Soda for the year ended 31st March, 2011. The subject Cost Audit Report was required to be filed on or before 30th September, 2011 and the same was duly filed on 21st September, 2011. Shri Dangi was re-appointed as such Cost Auditor for the year ended 31st March, 2012 and the subject Cost Audit Report will be filed within the prescribed period.

On behalf of the Board

Kolkata Virendra Bangur Prabhu Nath Ojha

Date: 17th May, 2012 Managing Director Executive Director

---

Mar 31, 2011

To the Members

The Directors have pleasure in presenting herewith their Annual Report together with the audited Accounts of the Company for the year ended 31st March, 2011.

FINANCIAL RESULTS

Particulars 31/03/2011 31/03/2010 Rs Rs

Profit for the year 1,42,51,371 7,30,51,563

Less/(Add):Provision for Taxation

-Current Tax 28,41,000 1,24,19,000

-Deferred Tax (Net) (35,21,000) 1,95,53,000

- MAT Credit Entitlement 41,91,000 (58,84,000)

- Income Tax Provision/ (26,785) (3,26,100) Payment for earlier Years 1,07,67,156 4,72,89,663

Add:Credit Balance brought 8,09,04,049 3,98,52,657 forward

Making a surplus of 9,16,71,205 8,71,42,320

Which is appropriated as under:

-Interim Dividend on Equity Shares - 53,32,083

-Taxon Dividend - 9,06,188

- Balance carried forward to next 9,16,71,205 8,09,04,049 Year 9,16,71,205 8,71,42,320

DIVIDEND

The Board has not recommended any dividend for the financial year ended 31st March, 2011.

OPERATING RESULTS

Due to breakdown of Rectifier-Transformer of the old Plant and expansion activities carried during the year, the production was lower. The Expansion-Cum-Conversion Project was completed on 29th December, 2010 but the same was under trial run upto31st March, 2011.

CURRENT OUTLOOK

The Company has commissioned the latest state of the Art and Environment Friendly Membrane Cell Technology based Plant resulting in increase of capacity by more than double. With the increased production capacity the Company will strengthen its presence in the State. The Industry outlook is bright due to expansion by the alumina manufacturers/new alumina projects being implemented which is the major caustic soda consumer industry.

INDUSTRIAL RELATIONS

Relations of the Company with the staff and workers remained cordial throughout the year.

GENERAL

The welfare activities and other community development programmes around the Factory including aid to educational institutions were continued. The results of the students of Jayshree Chemicals School at Ganjam, who appeared in the ICSE and ISC examinations during the year continue to be very good.

The Company's Shares are listed on the Mumbai Stock Exchange and the Listing Fees for the year ended 31st March, 2011 has been paid.

The Company's Shares are available for dematerialisation both on National Securities Depository Ltd. and Central Depository Services (India) Ltd. The ISIN No. is INE 693E01016.

The Company places on record its appreciation for the dedicated services of all the Workmen, Staff and Executives. The Company also expresses its gratitude to the State Government, Electricity Authorities, State Bank of Bikaner and Jaipur, State Bank of India, Indian Overseas Bank and the Local Authorities for their continued co-operation and support.

SAFETY

The Company has adequate system for Industrial Safety. The year under review continued to be NIL accident year.

ENVIRONMENT

As reported earlier, your Company has implemented 'CHARTER ON CORPORATE RESPONSIBILITY FOR ENVIRONMENTAL PROTECTION' (CREP).

SUBSIDIARY COMPANY

East Coast Powers Ltd., subsidiary of the Company (ECPL), is in process of taking necessary approvals from the Government for setting up Hydel Power Project in the State of Orissa. Since we require huge power for production of Caustic Soda, the Company will take power from its subsidiary on implementation of its Project. This will be beneficial for the Company in future.

As required under Section 212 of the Companies Act, 1956, the Board of Directors of the Company has by a resolution given consent for not attaching the balance sheet of ECPL for the year ended 31st March, 2011. Accordingly, the Annual Accounts of the ECPL are not annexed to the Accounts of the Company. However, the same for the above year and the related detailed information including a hard copy thereof shall be made available at any point of time to those shareholders of the Company who seek the same. Annual Accounts of ECPL shall also be kept for inspection by any shareholder at the Registered Office of the Company.

CONSOLIDATED FINANCIAL STATEMENTS

As required under Accounting Standard 21, Consolidated Financial Statements of the Company together with its subsidiary, East Coast Powers Ltd., are annexed.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The Particulars prescribed under Section 217(l)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, to the extent applicable, forming part of this Report, areasperannexure.

PARTICULARS OF EMPLOYEES

The Company had no employee drawing remuneration specified under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, during the year under review. Accordingly, the particulars required under the above Section have not been given.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, the Directors state :

(i) that in the preparation of the Annual Accounts, the applicable accounting standards had been followed alongwith proper explanation relating to material departures, if any;

(ii) that 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 at the end of the financial year and of the profit of the Company for that period;

(iii) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) that the Directors had prepared the annual Accounts on a going concern basis.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

A report on Management Discussion and Analysis is annexed and forms part of this Report.

CORPORATE GOVERNANCE

The Company has complied with the provisions of Clause 49 of the Listing Agreement relating to Corporate Governance. Report on Corporate Governance is annexed. Necessary declaration duly signed by the Managing Director of the Company to the effect that all the Board Members and Senior Management personnel have affirmed their compliance on an annual basis with the Code of Conduct as laid down by the Company pursuant to the requirements of Clause 49 of the Listing Agreement with the Bombay Stock Exchange is annexed and forms part of this Report.

DIRECTORS

The Industrial Development Corporation of Orissa Ltd. nominated Shri Prasanta Kumar Mishra on the Board of Directors of the Company with effect from 20th May, 2011 in place of Shri P. C. Mohanta.

The Directors place on record their appreciation for the valuable advices given by Shri P. C. Mohanta during his tenure of office as a Director of the Company.

Shri Virendra Bangur was appointed as the Managing Director of the Company with effect from 12th November, 2010.

Shri D. K. Maheshwari ceased to be the Executive Director of the Company on expiry of his term with effect from the close of business on 31st March, 2011. He, however, continues to be a Director of the Company.

Shri D. K. Maheshwari and Shri Satish Kapur retire by rotation and being eligible offer themselves for re-appointment.

AUDITORS

Statutory Auditor

M/s. K. N. Gutgutia & Co., Chartered Accountants, Auditors of the Company, retire and are eligible for re-appointment.

Cost Auditor

Shri Satyendra Prasanna Sinha Dangi (S. P. S. Dangi) of 339, Saket Nagar, Indore (M.P.), who is a Fellow of the Institute of Cost & Works Accountants of India having Membership No.752 was appointed as the Cost Auditor for audit of the Cost Accounts maintained by the Company relating to Caustic Soda for the year ended 31st March, 2010. The subject Cost Audit Report was required to be filed on or before 30th September, 2010 and the same was duly filed on 28th September, 2010.

On behalf of the Board

Prabir Chakravarti Satish Kapur SindhubalaChoudhury D. K. Maheshwari Kolkata Date :31st May, 2011