Annual Accounts for the Year 2017-18

{ZXoeH$ _ÊS>b Board of Directors

AÜ`j Ed§ à~ÝY {ZXoeH$ Chairman & Managing Director lr gw[a§Xa nmb ~§gb Shri S.P. Bansal

{ZXoeH$JU Directors lr amOrd H$mÊS>nmb Shri Rajeev Kandpal lr_Vr àdrU Jwám Smt. Parveen Gupta lr gË`oÝÐ Hw$_ma Shri Satyendra Kumar

ñdV§Ì {ZXoeH$ Indenpendent Director lr gVre garZ Shri Satish Sareen

H$ånZr g{Md Company Secretary Hw$. gw_moZm _Oy_Xma Ms. Sumona Majumdar

boIm-narjH$ Auditors _¡gg© EM.gr. ~moWam EÊS> Egmo{gEQ²>g M/s. H.C. Bothra & Associates, MmQ>©S>© boImH$ma, O`nwa Chartered Accountants, Jaipur

~¢H$g© Bankers ñQ>oQ> ~¢H$ Am°\$ BpÊS>`m State Bank of India

n§OrH¥$V H$m`m©b` Registered Office Or-229, grVmnwam Am¡Úmo{JH$ joÌ, G-229, Sitapura Industrial Area, Q>m|H$ amo‹S>, Tonk Road, O`nwa-302022 Jaipur-302022 1 AZwH«$_{UH$m Contents

AÜ`jr` ^mfU 5 Chairman's Speech {ZXoeH$m| H$m à{VdoXZ 9 Directors' Report H$m°nm}aoQ> JdZ]g à_mU nÌ 69 Corporate Governance Certificate g_o{H$V {dÎmr` {ddaU na {Z`§ÌH$ Ed§ _hmboIm 71 Comments of the Comptroller & narjH$ H$s {Q>ßn{U`m± Auditor General on Consolidated Financail Statements g_o{H$V {dÎmr` {ddaUm| na ñdV§Ì boIm 73 Independent Auditors Report on narjH$m| H$m à{VdoXZ Consolidated Financial Statements

g_o{H$V {dÎmr` pñW{V {ddaU 110 Consolidated Balance Sheet

g_o{H$V bm^ Ed§ hm{Z H$m {ddaU 112 Consolidated Statement of Profit & Loss

g_o{H$V {Q>ßn{U`m± 116 Consolidated Notes

EH$b {dÎmr` {ddaU na {Z`§ÌH$ Ed§ _hmboIm 169 Comments of the Comptroller & narjH$ H$s {Q>ßn{U`m± Auditor General on Standalone Finacail Statements ñdV§Ì boIm narjH$m| H$m à{VdoXZ> 171 Independent Auditors' Report

{dÎmr` pñW{V {ddaU 196 Balance Sheet

bm^ Ed§ hm{Z H$m {ddaU 198 Statement of Profit & Loss

{Q>ßn{U`m± 202 Notes

gm±^a gmëQ²>g {b{_Q>oS> H$m dm{f©H$ à{VdoXZ 253 Annual Report of Sambhar (ghm`H$ H$ånZr) Salts Limited (Subsidiary Company)

2 H$mnm}aoQ> CX²Xoí` CORPORATE OBJECTIVES

ÑpîQ> VISION

* Z_H$ Ed§ ~«mo_rZ CÚmoJ Ed§ g_~Õ CËnmX _| àYmZ * Be a dominating player in salt and bromine industry & allied products. CËnmXZ hmoZm& bú` MISSION

* AÀN>r {H$ñ_ Ho$ _yë` d{Y©V CËnmXm| H$m * To produce/supply good quality of salt & value added products. CËnmXZ/Amny{V© H$aZm&

* Z_H$ Ed§ g_~Õ CËnmXm| Ho$ CËnmXZ Ho$ * T o a c c e l e r a t e t h e p r o c e s s o f modernization/mechanization of `ÝÌrH$aU/AmYw{ZH$sH$aU H$s à{H«$`m H$mo J{V XoZm& manufacture of salt and allied products.

* gmd©O{ZH$ {dVaU àUmbr Ûmam H$_Omoa V~Ho$ H$mo * Make available quality iodized salt to JwUdÎmm nyU© Am`moS>rZ Z_H$ CnbãY H$amZm& weaker sections through public distribution system.

* òmoVm| H$m à^mdr Cn`moJ H$aZm& * Efficient utilization of resource.

* {hÝXþñVmZ gmëQ²>g {b{_Q>oS>/gm±^a gmëQ²>g {b{_Q>oS> * Increase the market share of HSL/SSL Ho$ ~mOma A§e _| d¥{Õ H$aZm&

AÜ`jr` ^mfU Chairman Speech 59dt dm{f©H$ gmYmaU g^m _| At the 59th Annual General Meeting _{hbmAm| Ed§ gÁOZm|, Ladies and Gentlemen, _¢ AmnH$s H$ånZr H$s 59dt dm{f©H$ gmYmaU g^m _| I welcome you all to the 59th Annual General AmnH$m ñdmJV H$aVm hÿ±& AmnH$s H$ånZr Ho$ H$m`m] na {ZXoeH$m| Meeting of your company. The Directors’ Report H$m à{VdoXZ, Am¡a {dËVr` df© 2017-18 Ho$ A§Ho${jV boIm on the working of your company and the Ed§ CZ na boIm narjH$m| H$m à{VdoXZ AmnHo$ g_j h¡, AmnH$s Audited Accounts for financial year 2017-18 and AZw_{V go BZH$mo n{R>V _mZ boVm hÿ±& also the Auditors’ Report thereon have been with you. With your permission, take them as read. _¢ CnbpãY`m|, ~mYmAm| Ed§ ^mdr H$m`m] Ho$ gå~ÝY _| I would like to underline a few salient features _w»` {d{eîQ>VmAm| na ~b XoZm Mmhÿ±Jm… regarding the achievements, constraints and tasks ahead: 1. ~mOma Ñí` {dYmZ… 1. Market scenario: AmnH$s H$ånZr Ûmam XmoZm| ~«mo_rZ g§`§Ìm| Ho$ {bE H$ƒm Your company has continued its efforts for _mb CnbãY H$amZo Ed§ Z_H$ Ho$ CËnmXZ H$mo ~‹T>mZo Ho$ development of new and abandoned salt pans {bE ~oH$ma n‹S>o VWm Z`o n¡Zm| Ho$ {dH$mg Ho$ {b`o {ZaÝVa for enhancement of salt production and generate à`mgaV ahr& ImamKmo‹S>m _| _¡½Zr{e`_ ŠbmoamBS> VWm the raw material for running our two bromine _ÊS>r BH$mB© _| N>moQ>o ñVa na I{ZO Z_H$ H$m CËnmXZ ^r plants. The production of Magnesium Chloride àmaå^ hmo J`m& AmnH$s H$ånZr df© 2017-18 _| 309 at Kharaghoda and small level production of rock salt at Mandi unit has also commenced. _¡. Q>Z ~«mo_rZ, 3650 _¡. Q>Z _¡½Zr{e`_ ŠbmoamBS> 5 31848 _¡. Q>Z H$ƒm Z_H$ Ed§ 46 _¡. Q>Z I{ZO Z_H$ Your company was able to sale 309 MT of H$m {dH«$` H$a gH$s& Bromine 3,650 MT of Magnesium Chloride 31,848 MT of raw salt and 46 MT of Rock salt in FY 2017-18. 2. {dÎmr` {d{eîQ>VmE§… 2. Financial Highlights: JV df© Ho$ ã`mO H$mo à^m[aV H$aZo H$s gaH$mar Zr{V _| Due to change in Government’s policy on n[adV©Z Ho$ H$maU AmnH$s H$ånZr H$mo ~«mo_rZ Ho$ CËnmXZ interest charging in previous years, your _| d¥{Õ Ed§ _¡½Zr{e`_ ŠbmoamBS> H$m CËnmXZ àmaå^ hmoZo company have received benefit other than na A{V[aŠV bm^ àmá hþAm& H$ånZr H$m bm^ JV df© Ho$ enhanced production of bromine and commencement of production of Magnesium 40.42 bmI H$s VwbZm _| ~‹T>H$a 183.55 bmI ahm& Chloride, company’s profit has increased to Rs. 183.55 df© 2017-18 Ho$ Xm¡amZ JV df© Ho$ 595.66 H$s Hw$b Lakhs in comparison to previous year profit of {~H«$s H$mo ~‹T>mH$a 692.72 bmI H$a gH$s& Rs 40.42 Lakhs. During the year 2017-18, turnover of the company has increased to Rs. 692.72 Lakhs from Rs 595.66 in the previous year. 3. {Z`m©V… 3. Exports: {dÎmr` df© Ho$ Xm¡amZ H$moB© {Z`m©V Zht {H$`m J`m& There was no export during the financial year. 4. Am¡Úmo{JH$ gå~ÝY… 4. Industrial Relations: {dËVr` ~mYmAm| Ho$ ~mdOyX AmnH$s H$ånZr _| Am¡Úmo{JH$ In spite of financial constraints, industrial g§~§Y gm¡hmÐ©nyU© aho& relations in your company remained cordial. 5. àgma J{V{d{Y`m§… 5. Expansion activities: AmnH$s H$ånZr H$s _¡½Zr{e`_ ŠbmoamBS> H$m CËnmXZ Your company is planning to expand the ~‹T>mZo VWm I{ZO Z_H$ H$m CËnmXZ H$aZo H$s `moOZm h¡& production of Magnesium Chloride and commence the production of rock salt. 6. _hËdnyU© gyÌnmV Ed§ ^mdr Ñ{îQ>H$moU… 6. Significant initiatives and future outlook: H$ånZr H$s à_wI Ed§ J¡a à_wI J{V{d{Y`m| _| gwYma Ho$ The following initiatives have been taken to {bE {ZåZ H$X_ CR>mE JE…- improve company’s core and non-core activities: (A) Z_H$ H$m CËnmXZ … (a) Salt Production H$ånZr Zo Z_H$ Ho$ CËnmXZ Ho$ {bE AZNw>E d¥hX Company is making efforts for utilizing the _yb^yV T>m±Mo H$s Cn`moJ Ho$ ^r à`mg H$a ahr h¡, untapped huge infrastructure for production of {Oggo XmoZm| ~«mo_rZ g§`§Ìm| H$mo A{YH$V_ j_Vm _| salt, which shall ensure sufficient quantity of MbmZo Ho$ {bE n`m©á _mÌm _| {~Q>Z© gw{ZpíMV bittern for running of both Bromine plants at optimum capacity. hmoJm& (~) ~«mo_rZ g§`§Ì bJmZo Ho$ {bE `moOZm… (b) Planning for Installation of Bromine Plants H$ånZr Ho$ 900 _¡. Q>Z à{V df© j_Vm Ho$ Xmo g§`§Ì Company is having two plants operational with Mmby h¢ VWm H$ånZr H$s g§`§Ìm| H$mo AÚVZ H$a production capacity of 900 MT per annum and CËnmXZ j_Vm _o d¥{Õ H$s `moOZm h¡& company is planning to update and enhance the production capacity of plants

6 (g) 1 bmI Q>Z à{Vdf© H$s Z_H$ n[aîH$aU embm H$s (c) Installation of Salt Refinery of 1 lakh TPA: ñWmnZm… 1,00,000 _¡. Q>Z H$s Z_H$ YwbmB© gh The installation of Salt Washery-cum Refinery of n[aîH$aU embm H$s ñWmnZm H$m H$m`© {ZînmXZ Ho$ 100,000 MT is under execution and efforts are on VhV h¡ VWm erK« g_mnZ Ho$ {bE à`mg Omar h¡& for early completion. (X) _¡½Zr{e`_ ŠbmoamBS> Ho$ CËnmXZ H$s j_Vm _| (d) Expansion of capacity of production of d¥{Õ… Magnesium Chloride: amOñd àm{á Ho$ Adga H$mo XoIVo hþE S>r ~«mo_rZoQ>oS> Having regard to the scope of revenue {~Q>Z© Ho$ CnMma Ho$ {bE H$ånZr H$s _¡½Zr{e`_ generation from treatment of De-Brominated ŠbmoamBS> Ho$ CËnmXZ _| d¥{Õ Ho$ {bE A{V[aŠV Bittern your company is planning to install g§`§Ì bJmZo H$s `moOZm h¡& additional plants to enhance the production of Magnesium Chloride. (`) ImamKmo‹S>m _| gm¡a Ed§ ndZ D$Om© g§`§Ì… (e) Solar and Wind Power Projects at Kharaghoda: AmnH$s H$ånZr gm¡a Ed§ ndZ D$Om© g§`§Ì ñWm{nV Your company is making efforts for installation H$aZo Ho$ {bE à`mgaV h¡ VWm erK« hr Mmby hmo of Solar and Wind Power Projects and expected OmZo Ano{jV hmo {Oggo H$ånZr H$m d¥hX ñVa na to take-off soon which will be instrumental for nwZéÕma hmo gHo$Jm& revival of Company in a big way. (a) nmoQ>o{e`_ å`yaoQ> Ho$ {bE `moOZm… (f) Planning for Murate of Potash : H$ånZr ZoeZb \${Q>©bmBOa {b. Ho$ gh`moJ go Company is exploring the option for production nmoQ>o{e`_ å`yaoQ> Ho$ CËnmXZ Ho$ {dH$ën H$s of Murate of Potash in collaboration with g§^mdZm Vbme ahr h¡& National Fertilisers Limited. (d) I{ZO Z_H$ H$m CËnmXZ … (g) Production of Rock Salt: AmnH$s H$ånZr Ð§J ImZ, {Obm-_ÊS>r ({h_mMb Your company is developing infrastructure for àXoe) go A{VerK« I{ZO Z_H$ Ho$ ì`mdgm{`H$ commencing the commercial production of Rock CËnmXZ Ho$ {bE _yb^yV T>m±Mo H$m {dH$mg H$a ahr salt from the Darang Mines, District Mandi (HP) h¡& very soon. (b) _ÊS>r _| gmoë`yeZ _mBqZJ n[a`moOZm… (h) Solution Mining Project at Mandi: H$ånZr Ûmam gmoë`yeZ _mBqZJ n[a`moOZm Ho$ {bE Company is also making efforts to secure the _mBqZJ brO Ed§ AÝ` dm§{N>V AZw_{V`m± boZo Ho$ mining lease and all other requisite clearances {bE ^r à`mg {H$E Om aho h¢ {Oggo {H$ _ÊS>r _| for the Solution Mining project and so that the 3,00,000 Q>Z à{Vdf© d¡Š`y_ Z_H$ gm¡a modality of execution of installation of 300,000 dmînrH$aU embm H$s ñWmnZm Ho$ VarHo$ {ZpíMV Tonnes per annum Vacuum Salt Evaporation Refinery Project at Mandi can be commenced. {H$E Om gHo$& df© Ho$ Xm¡amZ g§~§{Y àm{YH$m[a`m| During the year land survey has been done by Ûmam ^y{_ H$m gd} {H$`m J`m VWm g§~§{YV à_mU the concerned authorities and requisite nÌ Omar hmo MwHo$ h¡& EbAmoAmB© Omar H$aZo H$m certifications have been issued. Matter of issuing _m_bm amÁ` Ho$ CÚmoJ {d^mJ Ho$ gmW bpå~V h¡& LOI is pending with Industries Department of state.

7 7 . H$m°anmoaoQ>> JdaZo§g… 7. Corporate Governance: Ho$ÝÐr` gmd©O{ZH$ joÌ Ho$ CnH«$_m| Ho$ {bE H$m°anmoaoQ>> Company has complied with the conditions of JdaZo§g H$s _mJ©X{e©H$m _| C{ëb{IV H$m°anmoaoQ>> JdaZo§g the corporate governance as stipulated in the guidelines on corporate governance for Central H$s eVm] H$s H$ånZr Zo AZwnmbZm H$s h¡& Public Sector Enterprises. 8. Am^mamopŠV… 8. Acknowledgement: _¢ Bg Adga na ^maV gaH$ma, {d{^ÝZ amÁ` I take this opportunity to thank the government gaH$mam|,^mar CÚmoJ Ed§ bmoH$ CÚ_ _§Ìmb` Ho$ of India, various state governments, officers of A{YH$m{a`m|, Zr{V Am`moJ, ~¢H$m| Ed§ ì`mdgm{`H$ Ministry of Heavy Industries and Public gh`mo{J`m|, Z_H$ Am`wŠV H$m`m©b`, aob _ÊS>b Ed§ Enterprises, Niti Aayog, bankers, business d¥hX² J«mhH$m| H$mo CZHo$ nam_e© Ed§ {ZaÝVa gh`moJ Ho$ {bE associates, Salt Commissioner’s Office, Railway YÝ`dmX XoVm hÿ±& _¢ {ZXoeH$ _ÊS>b Ho$ AnZo g^r Board and major customers for their advice and continued support extended. I am also thankful gh`mo{J`m| Ûmam CZHo$ _yë`dmZ _mJ©Xe©Z Ed§ nam_e© Ho$ to all my colleagues on the board for their valued {bE ^r H¥$Vk h±ÿ& H$ånZr Ho$ A{YH$mar, ñQ>m°\$ Ed§ l{_H$ guidance and counsel. The officers, staff and ^r CZHo$ Ûmam {XE J`o g_{n©V gh`moJ Ed§ H$m`m] Ho$ {bE workers of the company also deserve the thanks YÝ`dmX Ho$ nmÌ h¡§& for their dedicated work and cooperation. AÝV _| _¢ Amn g^r H$mo Bg H$m`©dmhr _| H$ånZr Ho$ In conclusion, I would like to thank you for A§eYmaH$ Ho$ ê$n _| ^mJ boZo Ed§ AnZm A_yë` g_` XoZo sparing your valuable time and to participate in Ho$ {bE YÝ`dmX XoVm hÿ±& _¢ AmJm_r _hrZm| _| ^r àoaUm, the proceedings, as a shareholder of the _XX, ghm`Vm Ed§ gh`moJ nmZo hoVw AmempÝdV hÿ±& company. I look forward to receive inspiration, help, cooperation and assistance in the coming months. A~ _¢ {ZXoeH$m| Ho$ à{VdoXZ Ho$ gmW hr gmW 2017- I now move to the Director’s Report as well as the 18 H$m A§Ho${jV {dÎmr` pñW{V {ddaU Ed§ bm^ hm{Z H$m audited balance sheet and the statement of profit {ddaU àñVwV H$aVm h±ÿ& AZwamoY h¡ {H$ {ZXoeH$m| Ho$ and loss for the year 2017-18. It is requested that à{VdoXZ Ho$ gmW hr dm{f©H$ boIm| H$mo J«mh²` Ed§ director’s report as well as the Annual Accounts be approved and adopted. AZw_mo{XV _mZ {b`m OmE&

(Eg.nr. ~§gb) (S. P. Bansal) AÜ`j Ed§ à~ÝY {ZXoeH$ Chairman & Managing Director

ñWmZ … O`nwa Place: Jaipur {XZm§H$ … 21.12.2018 Dated: 21.12.2018

8 {ZXoeH$m| H$m à{VdoXZ DIRECTORS' REPORT

ào{f{V, To, {hÝXþñVmZ gmëQ²>g {b{_Q>oS> Ho$ The Members of gXñ`JU Hindustan Salts Limited AmnHo$ {ZXoeH$m| H$mo 31 _mM©, 2018 H$mo g_mßV df© Your Directors are pleased to present H$m AmnH$s H$ånZr {hÝXþñVmZ gmëQ²>g {b{_Q>oS> (AmJo go their Fifty Ninth Annual Report on the H$ånZr `m EMEgEb Xem©`m OmEJm) Ho$ ì`mnma Ed§ {H«$`m business and operation of Hindustan Salts H$bmnm| H$m CZgR>d| dm{f©H$ à{VdoXZ Ho$ gmW hr A§Ho${jV Limited (hereafter referred as the “Company” {dÎmr` {ddaU Ed§ VËgå~ÝYr boIm narjH$m| H$m à{VdoXZ or “HSL”) along with the Audited Financial VWm Cg na ^maV Ho$ {Z`§ÌH$ Ed§ _hmboIm narjH$ H$m Statement and the Auditors’ Report thereon and the review of the same by the Comptroller nwZarjU àñVwV H$aVo hþE àgÞVm h¡& H$ånZr Ed§ BgH$s and Auditor General of India for the year ghm`H$ H$ånZr H$m g_o{H$V {ZînmXZ Ohm± H$ht Ano{jV h¡ ended 31st March 2018. Consolidated dhm± àñVwV {H$`m J`m h¡& performance of the company and its subsidiary has been referred to wherever required. 1. {dÎmr` {ZînmXZ (EH$b Ed§ g§`wŠV ê$n go) 1. FINANCIAL PERFORMANCE (STANDALONE AND CONSOLIDATED) : 1.1 {dÎmr` n[aUm_ 1.1 Financial Results : g_o{H$V {dÎmr` {ddaU Ho$ AZwgma g_rjm Ho$ During the year under review, performance of your company and AÝVJ©V df© Ho$ Xm¡amZ AmnH$s H$ånZr H$m consolidated performance of the {ZînmXZ Am¡a H$ånZr Ed§ ghm`H$ H$ånZr H$m company and its subsidiary as per g§`wŠV ê$n go {ZînmXZ {ZåZ àH$ma h¡ …- consolidated financial statement is as under: (` bmI _|)/(` In lakh) {ddaU EH$b g_o{H$V Particulars Standalone Consolidated 2017-18 2016-17 2017-18 2016-17 [H«$`mH$bmnm| go Am` Revenue from Operations 692.72 595.66 2602.68 2450.77 AÝ` Am`/Other Income 694.98 828.47 229.40 322.72 Hw$b Am`/Total Income 1387.70 1424.13 2832.08 2773.49 KQ>mBE … _mb _| d¥{Õ Ed H$_r (+)/(-) Less: Accretion and Decretion of stock (+)/(-) (5.18) (14.02) 144.30 161.66

9 KQ>mB`o … ã`mO Am¡a ömg Ho$ Abmdm df© H$m ì`` _¡gg© gm§^a> gmëQ²>g {b. ghm`H$ H$ånZr H$mo ewÕ {d{Z`moOZ Ho$ ~mX Less: Expenditure for the year after net appropriation to Subsidiary company M/s Sambhar Salts Limited excluding depreciation and Interest 1061.90 906.07 3051.90 2976.77 ã`mO Ed§ ömg go nyd© bm^ Profit before depreciation and interest 320.62 504.04 (75.52) (41.62) öm°g/Depreciation 70.57 75.33 336.96 365.81 ömg Ho$ ~mX bm^/Profit after depreciation 250.05 428.71 (412.48) (407.43) ã`mO/Interest 358.30 387.64 377.27 401.13 ömg Ed§ ã`mO Ho$ níMmV bm^ Profit after depreciation and interest (108.25) 41.07 (789.75) (808.56) nydm©d{Y go gå~pÝYV g_m`moOZ Adjustments relating to prior period 291.80 (0.65) 715.19 (6.37) H$a go nyd© bm^/Profit Before Tax 183.55 40.42 (74.56) (814.93) H$a ì``/Tax expense - - - - H$a níMmV bm^/Profit after Tax 183.55 40.42 (74.56) (814.93) Aën g§»`H$ {hV H$m g_m`moOZ Adjustment for Minority Interest - - 103.24 342.14 df© Ho$ {bE bm^/hm{Z/Profit/Loss for the year 183.55 40.42 28.63 (472.79) Hw$b AmJo bo OmB© JB© Total Carry forward Losses (1454.23) (1637.78) (3508.97) (3535.07)

1.1.2df© 2017-18 Ho$ Xm¡amZ H$ånZr H$s Hw$b {~H«$s 1.1.2 During the year 2017-18, turnover of ` 595.66 bmI go ~‹T>H$a ` 692.72 bmI the company has increased to ` hþB©& 692.72 lakh against ` 595.66 lakh in previous year 1.1.3Mmby df© Ho$ bm^ Ho$ gmW-gmW 31 _mM© 2018 1.1.3 With the current year’s profit, the H$mo AmnH$s H$ånZr H$s bmB© JB© hm{Z carry forward losses of your ` 1637.78 bmI go KQ>H$a ` 1454.23 company as on 31st March, 2018 bmI ahr& have decreased to ` 1454.23 lakhs from ` 1637.78 lakhs. 1.1.4bm^m§e 1.1.4 Dividend g§{MV hm{Z`m| H$mo Ñ{îQ>JV aIVo hþE df© In view of the cumulative deficit, no dividend has been proposed for the 2017-18 _o§ bm^m§e H$m H$moB© àñVmd Zht h¡& year 2017-18.

10 1.2 {dÎmr` g§gmYZ… 1.2 Financial resources: 1.2.1ny§Or g§aMZm 1.2.1 Capital structure:

AmnH$s H$ånZr H$s A{YH¥$V A§e ny±Or Your company’s authorised share capitalhas been increased from ` 5,000 bmI go ~‹T>H$a 6,000 Ed§ àXÎm ` 5,000 lakhs to ` 6,000 lakhs during A§e ny§Or ` 4,205.96 bmI go ~‹T>H$a ` the year and paid up share capital 5,205.96 bmI hmo JB©& has increased from ` 4205.96 Lakhs to ` 5,205.96 Lakhs. 1.2.2{H$gr g§M` Ho$ {bE àñVm{dV ñWmZmÝVaU `m 1.2.2 Amount transferred or proposed to ñWmZmÝVaU am{e transfer to any reserves: 31.3.2018 H$mo AmnH$s H$ånZr Ûmam {H$gr Your Company has not transferred g§M` Ho$ {bE H$moB© YZam{e ñWmZmÝV[aV `m or proposed to transfer any amount àñVm{dV ñWmZmÝV[aV Zht H$s& to any reserve as on 31.03.2018. 1.2.3CYma am[e`m§ 1.2.3 Borrowing ^maV gaH$ma Ho$ Hw$b `moOZm G$U, J¡a `moOZm The total Plan and Non-plan loan G$U Ed§ CZ na Cnm{O©V ã`mO g{hV 31 _mM© including interest accrued thereon from Government of India stood at 2017 Ho$ ` 3,146.40 bmI H$s VwbZm _| 31 ` 2803.63 lakhs as on 31st March, ` _mM© 2018 H$mo 2,803.63 bmI ahm& {dJV 2018 as against ` 3146.40 lakhs as on dfm] _| A{V[aŠV à^m[aV ã`mO H$s am{e ` 31st March, 2017, after adjusting the 693.12 H$mo$g_m`moOZ Ho$ ~mX dmng {bIm excess interest charged in earlier J`m& years of ` 693.12 Lakhs is written back. 2. H$ånZr Ho$ ^m¡{VH$ {ZînmXZ Ed§ H$m`m] H$s pñW{V 2. STATE OF COMPANY AFFAIRS AND PHYSICAL PERFORMANCE ^maV gaH$ma Ûmam nyd© _| g§Mm{bV JwOamV Ho$ gwaoÝÐ HSL was incorporated to take over the salt ZJa {Obo _| ImamKmo‹S>m _| Z_H$ Ho$ CËnmXZ _§o bJo sources at Sambhar, Didwana and gm§^a S>rS>dmZm Ed§ ImamKmo‹S>m Ho$ Z_H$ òmoVm| H$m Kharaghoda earlier managed by the Salt A{YJ«hU H$aZo Ho$ {bE {hÝXþñVmZ gmëQ²>g {b{_Q>oS> H$s Department, Government of India, is ñWmnZm H$s JB©& H$ånZr ImamKmo‹S>m {Obm gwaoÝÐZJa engaged in the manufacture of salt at Kharaghoda, District Surendranagar, JwOamV _| Z_H$ Ho$ CËnmXZ _| gb§½Z h¡& h_mar {deofVm Gujarat. Our specialisation is in {deof ê$n go CÚmoJm| O¡go-Šbmoa AëH$br (_oå~aoZ Ed§ production of high quality salt _H©$argob Q>mBn) H$n‹S>m, gm~wZ Ed§ gmo‹T>m, M_© Ed§ nmda particularly for industries like chlor-alkali n[a`moOZm Am{X _| Cn`moJ Ho$ {bE Cƒ {H$ñ_ Ho$ Z_H$ (Membrane & Mercury Cell type), Textile, H$m CËnmXZ H$aZm h¡& h_mam CÎmamIÊS> Ho$ am_ ZJa _| Soap and Detergent, Leather, Power {dH«$` H$m`m©b` ^r h¡& Projects etc.We have sales office at Ramnagar in Uttarakhand. 11 Z_H$ Ho$ A{V[apŠV h_mar ImamKmo‹S>m BH$mB© _| pñWV Xmo Besides salt, liquid bromine is produced g§`§Ìm| {OZH$s àË`oH$ H$s CËnmXZ j_Vm 450 Q>Z at our two plants located at Kharaghoda à{Vdf© h¡, go Vab ~«mo_rZ H$m CËnmXZ ^r h¡& ~«mo_rZ H$m unit; having installed capacity of 450 TPA Cn`moJ _w»` ê$n go H$sQ>ZmeH$, Am¡f{Y, Ap½Ze_Z each. Bromine is mainly used for `§Ì, a§J Ed§ AÝ` ~«mo_moH$ånmCÊS> _| {H$`m OmVm h¡& Pesticides, Pharmaceuticals, fire BgHo$ A{V[aŠV H$ånZr Ho$ 7500 _¡. Q>Z g§`wŠV extinguishers, dyes and other bromo- compounds.In addition company has two j_Vm Ho$ 2 _¡½Zr{e`_ ŠbmoamBS> g§`§Ì h¡& BZ g§`§Ìm| go plants of combined annual capacityof ~«mo_rZ g§`§Ì H$s S>r-~«mo_rZoQ>oS> {~Q>Z© ÁdbZerb nXmW© 7500 MT for production of Magnesium H$mo à{H«$`m Ûmam _¡½Zr{e`_ ŠbmoamBS> H$m CËnmXZ hmoVm Chloride. This plant processes the h¡& Bg àH$ma A{V[aŠV amOñd CnbãY hmoZm d affluent i.e. De-Brominated Bittern of ÁdbZerb nXmW© H$m à~ÝY h¡& Bromine plant and produce Magnesium Chloride, thereby generating additional revenue as well address the issue of affluent management. h_ {h_mMb àXoe Ho$ _ÊS>r {Obo_| Ð§J BH$mB© _| I{ZO We are also engaged in mining of rock salt Z_H$ H$m$ IZZ ^r H$a aho h¢ Omo {H$ OmZdam| Ho$ MmQ>Zo at our unit at Darang, District Mandi, Ho$ {bE Cn`moJ _| AmVm h¡& JhZ à`mgm| Ed§ g^r Himachal Pradesh, which is used as Ano{jV Am¡nMm[aH$Vm nyU© H$a _yb^yV T>m§Mo H$m {dH$mg animal lick. With much efforts and after H$a _ÊS>r _| Ð§J ImZ _| dm{UpÁ`H$ CËnmXZ Ho$ àmaå^ completion of all requisite formalities, the development of infrastructure to {H$`m J`m& commence commercial production of Rock salt at Darang Mines at Mandi has been started. AmnH$s H$ånZr H$m ^m¡{VH$ {ZînmXZ JV df© H$s VwbZm Comparison of the physical performance _| {ZåZ àH$ma h¡ …- of your Company vis-à-vis previous year is as under: (_mÌm _¡. Q>Zm| _|) Qty. In MT.) 2017-18 2016-17 2017-18 2016-17 CËnmXZ Production gmYmaU Z_H$ 12374 2414 Common Salt 12374 2414 I{ZO Z_H$ 47 0 Rock Salt 47 0 ~«mo_rZ 330 329 Bromine 330 329 _¡½Zr{e`_ ŠbmoamBS> 3600 2,059 Magnesium Chloride 3600 2,059 {~H«$s Sales gmYmaU Z_H$ 31848 32,862 Common Salt 31848 32,862 I{ZO Z_H$ 46 0 Rock Salt 46 0 ~«mo_rZ 309 344 Bromine 309 344

12 _¡½Zr{e`_ ŠbmoamBS> 3650 1,709 Magnesium Chloride 3650 1,709 g_m`moOZ Ho$ ~mX df© Inventory at the close of Ho$ AÝV _| ñQ>m°H$ the year after adjustments gmYmaU Z_H$ 7805 10,772 Common Salt 7805 10,772 I{ZO Z_H$ 1 0 Rock Salt 1 0 ~«mo_rZ 29 8 Bromine 29 8 _¡½Zr{e`_ ŠbmoamBS> 300 350 Magnesium Chloride 300 350

2.1 CËnmXZ 2.1 Production: (i) 14 OZdar, 2011 go Ð§J ImZ I{ZO (i) The production of rock salt Z_H$ CËnmXZ ~§X hmo J`m Wm Omo closed in Darang mines w.e.f. 20.10.2016 go nwZ… àmaå^ hþAm& 14th January, 2011 has been recommenced from 20.10.2016. (ii) ~«mo_rZ H$o CËnmXZ _| _m_ybr d{¥ Õ hBþ &© (ii) The production of bromine increased marginally. (iii) df© Ho$ Xm¡amZ H«$` {H$E JE Z_H$ g{hV (iii) Own Production including gm_mÝ` Z_H$ H$o CËnmXZ _| JV df© Ho$ purchased common salt 30961 _¡. Q>Z H$s VwbZm _| 32,894 during the year has increased _¡. Q>Z H$s _m_ybr d¥{Õ hþB©& marginally to 32,894 MT from 30,961 MT in the previous year. 2.2 {~H«$s 2.2 Sales ~«mo_rZ H$s {~H«$s ^r JV df© H$s 344 _¡. Q>Z H$s The sale of bromine in the current VwbZm _| Mmby df© _| 309 Q>Z hþB©& year was 309 MT compared to 344 MT in the previous year. 2.3 {Z`m©V 2.3 Exports {dÎmr` df© 2017-18 Ho$ Xm¡amZ H$ånZr Ûmam The company has not exported Z_H$ H$m {Z`m©V Zht {H$`m J`m& during the financial year 2017-18. 2.4 ñQ>m°H$ 2.4 Inventories gm_mÝ` Z_H$ Ed§ ~«mo_rZ H$m ñQ>m°H$ JV df© Inventory of common salt and H«$_e… 10,772 _¡.Q>Z Ed§ 8 _¡.Q>Z H$s VwbZm bromine at the close of year was 7805 _| Bg df© Ho$ AÝV _| H«$_e… 7,805 _¡.Q>Z d MT and 29 MT as against 10,772 MT 29 _¡.Q>Z ahm& _¡½Zr{e`_ ŠbmoamBS> H$m ñQ>m°H$ and 8 MT in the previous year JV df© Ho$ 350 _¡. Q>Z H$s VwbZm 300 _¡. Q>Z r e s p e c t i v e l y . I n v e n t o r y o f ahm& I{ZO Z_H$ H$m ñQ>mH$ JV df© Ho$ eyÝ` H$s Magnesium chloride is 300 MT VwbZm _| 1 _¡. Q>Z ahm& compared to 350 MT in previous year. The inventory of Rock Salt at the close of year was 1 MT against previous year NIL. 13 3. ghm`H$ H$ånZr gm±â gmëQ²>g {b{_Q>oS> 3. SUBSIDIARY COMPANY: SAMBHAR (gm§.gm.{b.)… SALTS LIMITED (SSL) {ZXoeH$ _ÊS>b Ed§ boIm narjH$m| Ho$ à{VdoXZ Ho$ gmW The audited statement of accounts along hr A§Ho${jV boIm {ddaU {dÎmr` df© Ho$ AÝV _| YmaH$ with report of the Board of Directors and H$ånZr H$m ghm`H$ H$ånZr gm§â gmëQ²>g {b. (AmJo go Auditors and Statement pertaining to the ghm`H$ H$ånZr `m gm§.gm.{b. {bIm OmòJm) _| {hV Ho$ holding Company’s interest in the subsidiary company, Sambhar Salts {ddaU Ho$ gmW g§b½Z h¡& Limited (hereafter referred as the “Subsidiary Company” or “SSL”) at the close of the financial year are attached. 3.1 {dÎmr` {ZînmXZ 3.1 FINANCIAL PERFORMANCE 3.1.1{dÎmr` n[aUm_ 3.1.1 Financial Results: AnZr ghm`H$ H$ånZr H$s df© 2017-18 H$mo The highlights of financial {dÎmr` {ZînmXZ H$s {deofVmE§ JV df© H$s VwbZm performance of our subsidiary _| {ZåZ àH$ma h¡ …- company for the year 2017-18 alongwith comparison with the previous year is as under:- (` bmI _|) (` In lakh)

{ddaU 2017-18 2016-17 Particulars 2017-18 2016-17 àMmbZ go Am` 1913.01 1874.88 Revenue from Operations 1913.01 1874.88 AÝ` Am` 143.87 222.85 Other Income 143.87 222.85 Hw$b Am` 2056.88 2097.73 Total Income 2056.88 2097.73 KQ>mBE-ñQ>m°H$ H$s H$_r,d¥{Õ 149.48 175.68 Less: Accretion, Decretion 149.48 175.68 of stock KQ>mBE … ömg Ed§ ã`mO (ewÕ) Less: Expenditure for the Ho$ A{V[aŠV df© Ho$ ì`` 1993.05 2,090.47 year excluding depreciation and interest (Net) 1993.05 2,090.47 nydm©d{Y go g§~§{YV g_m`moOZ 423.39 (5.72) Adjustments relating to prior period 423.39 (5.72) ömg Ed§ ã`mO go nyd© bm^ 636.70 177.22 Profit before depreciation and interest 636.70 177.22 KQ>mBE-ömg 266.39 290.48 Less: Depreciation 266.39 290.48 ömg Ho$ ~mX bm^ 370.31 (113.26) Profit after depreciation 370.31 (113.26) KQ>mBE … ã`mO 628.42 742.09 Less: Interest 628.42 742.09 ã`mO Ed§ ömg Ho$ ~mX bm^ (258.11) (855.35) Profit after depreciation and interest (258.11) (855.35) df© Ho$ {bE ewÕ bm^ (258.11) (855.35) Net Profit for the year (258.11) (855.35) Hw$b bmB© JB© hm{Z`m± (4490.12) 4232.01 Total Carry forward losses 4490.12 4232.01 14 3.1.2df© 2017-18 df© Ho$ Xm¡amZ ghm`H$ H$ånZr 3.1.2 During the year 2017-18, turnover of H$s Hw$b {~H«$s JV df© H$s ` 1,913.01 bmI the subsidiary company was Ho$ {déÕ ` 1,874.88 bmI ahr& ` 1874.88 lakh against ` 1913.01 lakh in the previous year.

3.1.3Bg df© H$s hm{Z Ho$ gmW ghm`H$ H$ånZr H$s 3.1.3 With this year’s loss, the carry bmB© JB© hm{Z 31.3.2018 H$mo JV df© Ho$ ` forward losses of the company as on 4232.01bmI H$s VwbZm _| ` 4490.12 31st March, 2018 are ` 4490.12 bmI ahr& Mmby df© _| {h.gm.{b. Ûmam {dJV dfm] lakhs in comparison to previous _| A{V[aŠV ã`mO Ho$ à^ma H$mo dmng {bIo year’s loss of ` 4232.01 lakhs. The OmZo, doVZ Ed§ _OXÿar _| ~MV Ed§ AÝ` D$nar loss in the current year has ì``m| Ho$ H$maU hm{Z _| H$_r ahr& decreased due to write back of excess interest charged by HSL in previous years and saving in salary and wages and other overheads. 3.1.4bm^m§e 3.1.4 Dividend g§M`r hm{Z H$mo Ü`mZ _| aIVo hþE ghm`H$ In view of the cumulative deficit, no H$ånZr Ûmam df© 2017-18 Ho$ {bE H$moB© dividend has been declared by the bm^m§e Kmo{fV Zht {H$`m J`m& subsidiary company for the year 2017-18 3.2 ^m¡{VH$ {ZînmXZ … 3.2 PHYSICAL PERFORMANCE AmnH$s H$ånZr H$m ^m¡{VH$ {ZînmXZ JV df© H$s Comparison of the physical VwbZm _| {ZåZ àH$ma h¡ …- performance of your Company vis- à-vis previous year is given as follows:- _mÌm _¡.Q>Z _| Quantity in M.T. {ddaU 2017-18 2016-17 Particulars 2017-18 2016-17 CËnmXZ Production: gm_mÝ` Z_H$ 265314 262,458 Common Salt 265314 262,458 g§gm{YV Z_H$ 14375 19,065 Processed Salt 14375 19,065 {dH«$`/Omar Sales/ Issues: gm_mÝ` Z_H$ 214031 209,107 Common Salt 214031 209,107 g§gm{YV Z_H$ 15300 16,564 Processed Salt 15300 16,564 g_m`moOZ Ho$ níMmV² df© Inventory at the close of Ho$ AÝV _| _mb… the year after adjustment:

15 gm_mÝ` Z_H$ 72340 64,034 Common Salt 72340 64,034 g§gm[YV Z_H$ 1123 3,709 Processed Salt 1123 3,709 n[aîH¥$V Z_H$ 669 - Refined Salt 669 -

3.2.1CËnmXZ 3.2.1 Production: {dÎmr` df© 2017-18 _| gm. gm. {b. H$m The production of common salt by gmYmaU Z_H$ H$m CËnmXZ JV df© Ho$ SSL in FY 2017-18 was 265314 MT 262458 _¡. Q>Z H$s VwbZm _| 265314 _¡. against 262458 MT in previous year, Q>Z ahm Omo {H$ 1.09% A{YH$ h¡& g§gm{YV which is an increase of 1.09%. The Z_H$ H$m CËnmXZ KQ>H$a 1264 _¡. Q>Z ahm& production of processed salt has decreased by 1264 MT. 3.2.2{dH«$` 3.2.2 Sales ghm`H$ H$ånZr Ûmam {dÎmr` df© Ho$ Xm¡amZ JV The subsidiary company has sold df© Ho$ 225671 _¡. Q>Z H$s VwbZm _| 229331 MT of common salt and 229331 _¡. Q>Z gm_mÝ` Z_H$ Ed§ g§gm{YV processed salt during the financial Z_H$ H$m {dH«$` {H$`m J`m& year as against 225671 MT in previous year. 3.2.3{Z`m©V… 3.2.3 Exports ghm`H$ H$ånZr Ûmam {dÎmr` df© 2017-18 Ho$ The subsidiary company has not Xm¡amZ H$moB© {Z`m©V Zht {H$`m J`m& exported salt during the FY 2017-18. 3.2.4ñQ>m°H$ 3.2.4 Inventories ghm`H$ H$ånZr Ho$ gm_mÝ` Z_H$ H$m ^m¡{VH$ The physical inventory of common ñQ>m°H$ JV df© Ho$ 64034 _¡. Q>Z H$s VwbZm _| salt of subsidiary company was df© Ho$ AÝV _| 72340 Q>Z ahm& 72340 MT at the close of the year against 64034 MT in the previous year. 3.2.5 O_mE§ 3.2.5 Deposits AmnH$s H$ånZr Zo {dÎmr` df© 2017-18 Ho$ Your Company has not accepted Xm¡amZ H$moB© O_mE§ ñdrH$ma Zht H$s& any deposits during FY 2017-18.

5. 2017-18 Ho$ Xm¡amZ n[a`moOZm Ed§ H$m`©H«$_ 5. PROJECTS AND PROGRAMMES DURING 2017-18. ImamKmo‹S>m BH$mB© (JwOamV) KharaghodaUnit (Gujarat): (A) Z_H$ H$m CËnmXZ (a) Salt Production H$ånZr Zo Z_H$ H$o CËnmXZ _| d¥{Õ Ho$ {bE To enhance the salt production,

16 AZNy>E d¥hX _yb^yV T>m±Mo Ho$ Cn`moJ H$s ^r company explored various avenues g§^mdZmE§ VbmeZo Ho$ {d{^Þ à`mg {H$E Om aho of utilizing the untapped huge h¢ BZ à`mgm| go XmoZm| ~«mo_rZ g§`§Ìm| H$mo infrastructure. These efforts will A{YH$V_ j_Vm _| MbmZo Ho$ {bE n`m©á _mÌm _| ensure sufficient quantity of bittern {~Q>Z© gw{ZpíMV hmoJm& for running of both Bromine plants at optimum capacity. (~) ~«mo_rZ g§`§Ì bJmZo Ho$ {bE `moOZm (b) Planning for Installation of Bromine Plants H$ånZr Ho$ 900 _¡. Q>Z à{V df© j_Vm Ho$ Xmo Company is having two plants g§`§Ì Mmby h¡ VWm H$ånZr H$s g§`§Ìm| H$mo AÚVZ operational with production H$a CËnmXZ j_Vm _| d¥{Õ H$s `moOZm h¡& capacity of 900 MT per annum and company is planning to update and enhance the production capacity of plants

(g) nmoQ>o{e`_ å`yaoQ> Ho$ {bE `moOZm (c) Planning for Murate of Potash : H$ånZr ZoeZb \${Q>©bmBOg© {b. Ho$ gh`moJ go Company is exploring the option for nmoQ>o{e`_ Š`yaoQ> Ho$ CËnmXZ Ho$ {dH$ën H$s production of Murate of Potashin collaboration with National g§^mdZm Vbme ahr h¡& FertilisersLimited. (X) 1 bmI Q>Z à{Vdf© H$s Z_H$ n[aîH$aU embm (d) Installation of Salt Refinery of 1 H$s ñWmnZm… lakh TPA: _¡. JwOamV Q>opŠZH$b gob àm. {b. ~‹S>moXam H$mo The installation of Salt Washery- 1,00,000 bmI _¡. Q>Z H$s Z_H$ YwbmB© gh- cum Refinery of 100,000 MT n[aîH$aU embm H$s ñWmnZm H$m H$m`© ` capacity awarded to M/s Gujarat 773.12 bmI H$s bmJV na {X`m J`m h¡ Omo H$s Technical Cell Pvt. Ltd., Vadodara at {ZînmXZmYrZ h¡ VWm {dÎmr` df© 2018-19 _| a total cost of ` 773.12 lakhs is under OëXr nyam {H$E OmZo Ho$ à`mg h¢& EH$ ~ma execution and efforts are on for early completion in FY 2018-19. Once the n[aîH$aU embm Ho$ Mmby hmo OmZo na H$ånZr H$mo refinery becomes operational N>ÎmrgJ‹T> Ed§ _Ü`àXoe H$s gaH$mar Amny{V© Ed§ company may get opportunity to IwXam ~mOma _| gwAdga àmá hmo gHo$Jm& tap the market of Chhattisgarh and Madhya Pradesh for Government supply and retail market. (`) {d{dY BªYZ ~m`ba … ~«mo_rZ g§`§Ì ImamKmo‹S>m (e) Multi-fuel Boilers with preheating na MaU~Õ nÕ{V Ûmam bmJy {H$`m J`m VWm s y s t e m a t B r o m i n e P l a n t , BgHo$ n[aUm_ñdê$n 30% BªYZ bmJV H$s Kharaghoda, is operational and has resulted saving of 30% fuel cost. ~MV hþB©& ~«mo_rZ g§`§Ì VWm ~«mBZ Ho$ Bromine Plant and Channels for 17 ñWmZmÝVaU (n[adhZ) Ho$ {bE Ho$Zmb ^r H$m`© Brine transportation are also _| bmB© JB©& functional. (a) _¡½Zr{e`_ ŠbmoamBS> Ho$ CËnmXZ Ho$ {bE S>r. (f) Treatment of De-brominated Bittern ~«mo_rZoQ>oS> {~Q>Z© (S>r~r~r) H$m CnMma (DBB) to produce Magnesium Chloride: àmaå^ go ImamKmo‹S>m _| ~«mo_rZ g§`§Ì _| Cn`moJr Since inception of Bromine Plant at S>r. ~«mo_rZoQ>oS> {~Q>Z© Ho$ bm^Xm`H$ Cn`moJ _| Kharaghoda, De-Brominated Bittern used boZo H$r VH$ZrH$ Ho$ A^md _| ~oH$ma Om ahm Wm& to go waste in absence of appropriate amOñd àm{á Ho$ Adga H$mo XoIVo hþE H$ånZr mechanism applied to utilize the same gainfully. Looking at the scope of earning Ûmam CnbãY S>r ~«mo_rZoQ>oS> Ho$ Cn`moJ Ho$ {bE revenue, company made its strong efforts _¡½Zr{e`_ ŠbmoamBS> g§`§Ì H$s ñWmnZm Ho$ {bE for installation of Magnesium Chloride J§^ra à`mg {H$E JE VWm A§V _| H$ånZr EH$ plant to utilize available De-Brominated nm`boQ> VWm AÝ` 7500 _¡. Q>Z à{V df© j_Vm Bittern and finally, Company could install Ho$ gm_mÝ` _¡½Zr{e`_ ŠbmoamBS> g§`§Ì bJm`o& one pilot and other normal Magnesium df© Ho$ Xm¡amZ 28000 _¡. Q>Z j_Vm Ho$ Chloride plant with cumulative capacity _¡½Zr{e`_ ŠbmoamBS> Ho$ Mma A{V[aŠV g§`§Ì of 7500 MT/Annum. During the year ñWm{nV H$aZo Ho$ à`mg {H$E JE& efforts were made for installation four additional plants of combined capacity of 28000 MT of Magnesium Chloride. (b) ImamKmo‹S>m _| gm¡a Ed§ ndZ D$Om© g§`§Ì… (g) Solar and Wind Power Projects at Kharaghoda: df© Ho$ Xm¡amZ H$ånZr Ûmam gm¡a Ed§ ndZ D$Om© During the year, company has made g§`§Ì ñWm{nV H$aZo Ho$ J§^ra à`mg {H$E JE strong efforts for installation of Solar and VWm erK« hr Mmby hmo OmZo Ano{jV h¡ {Oggo Wind Power Projects and expected to H$ånZr H$m d¥hX ñVa na nwZéÕma hmo gHo$Jm& take-off soon which will be instrumental for revival of Company in a big way. _ÊS>r BH$mB© ({h_mMb àXoe) Mandi Unit(Himachal Pradesh): (d) Ð§J ImZ go I{ZO Z_H$ H$m CËIZZ (h) Extraction of Rock Salt from Darang Mines: H$ånZr, _ÊS>r ImZ H$m g§MmbZ 1963 go H$a Company is operating Mandi Mines since ahr h¡& `h BH$mB© ^y{_JV ImZ go ewîH$ IZZ go 1963. The unit was engaged in extraction I{ZO Z_H$ H$m CËIZZ H$a ahr h¡ Omo {H$ of rock salt through underground mining OmZdam| Ho$ Cn`moJ hoVw h¡& Z_H$ ^ÊS>ma 116 and producing rock salt with dry mining bmI _¡. Q>Z h¡& am°`ëQ>r Ho$ H$maU ImZ 2011 which is used for animal licks. Proven Salt _| ~§X hmo JB©& n[aUm_ñdê$n ñWmZr` H«o$Vm Deposits are 116 Million MT. Due to some royalty issue mines were closed in nm{H$ñVmZ go Z_H$ H$m AmnmV H$aZo bJo& January 2011, resultantly local buyers 18 d¡Ym{ZH$ ñdrH¥${V àmá H$aZo Ho$ Cnam§V IZZ started importing salt from Pakistan. à[H«$`m nwZ… àmaå^ H$s JB©& df© Ho$ Xm¡amZ H$ånZr After obtaining required statutory Ûmam Ð§J ImZ, {Obm _ÊS>r _| ewîH$ IZZ nÕ{V clearances, the mining process was re- Ûmam I{ZO Z_H$ H$m CËnmXZ àmaå^ {H$`m started. Company has commenced the J`m& dry mining of rock salt from the Darang Mines, District Mandi (HP) during the y e a r a n d t h e d e v e l o p m e n t o f infrastructure is also under process (b) _ÊS>r _| gmoë`yeZ _mBqZJ n[a`moOZm… (i) Solution Mining Project at Mandi:

gmoë`yeZ _mBqZJ n[a`moOZm Ho$ {b`o _mBqZJ The company has appointed consultant brO Ed§ AÝ` dm§{N>V AZw_{V`m± boZo Ho$ {bE to secure the mining lease and all other gbmhH$ma {Z`wŠV {H$`m J`m h¡ Ed§ BZHo$ requisite clearances for the Solution níMmV² 3,00,000 Q>Z à{Vdf© H$s d¡Š`y_ Mining project and thereafter decide the modality of execution of installation of Z_H$ gm¡a dmînrH$aU embm H$s ñWmnZm Ho$ 300,000 Tonnes per annum Vacuum Salt VarHo$ {ZpíMV H$aoJr Vm{H$ amÁ` gaH$ma H$s Evaporation Refinery Project at Mandi to Amny{V© Ed§ {h_mMb àXoe h[a`mUm, n§Om~ Ed§ cater the State Government supplies and Oå_y VWm H$í_ra Am{X Ho$ IwXam ~mOma _| nhþ±M retail market of Himachal Pradesh, gHo$& df© Ho$ Xm¡amZ g§~§{YV àm{YH$m[a`m| Ûmam Punjab, Haryana, Jammu and Kashmir ^y{_ H$m gd} {H$`m J`m VWm dm§{N>V à_mU-nÌ etc. During the year land survey has been Omar hmo MwHo$ h¢& EbAmoAmB© Omar H$aZo H$m done by the concerned authorities and _m_bm amÁ` Ho$ CÚmoJ {d^mJ Ho$ gmW bpå~V requisite certifications have been issued. h¡& Matter of issuing LOI is pending with Industries Department of state. 5. D$Om© g§ajU, AZwg§YmZ Ed§ {dH$mg na 5. CONSERVATION OF ENERGY, ì``, VH$ZrH$s g_mdoeZ VWm {dXoer _wÐm EXPENDITURE ON RESEARCH & DEVELOPMENT, TECHNOLOGY CnmO©Z Ed§ ì``… A B S O R P T I O N & F O R E I G N E X C H A N G E E A R N I N G S A N D OUTGO H$ånZr A{Y{Z`_, 2013 H$s Ymam 134 As required under section 134(3)(m) of (3)(E_)gn{R>V H$ånZr (boIm) {Z`_mdbr, 2014 the Companies Act, 2013 read with Rule Ho$ {Z`_ 8(3) Ho$ AZwgma D$Om© g§ajU, VH$ZrH$s 8(3) of the Companies (Accounts) Rules, 2014, the details of the conservation of g_mdoeZ, AZwg§YmZ Ed§ {dH$mg na ì`` VWm {dXoer energy, technology absorption, _wÐm CnmO©Z Ed§ ì`` H$m {ddaU {ZåZ àH$ma h¡…- e x p e n d i t u r e o n r e s e a r c h a n d development, foreign exchange earnings and outgo are as under:

19 A. D$Om© g§ajU A. Conservation of Energy H$) D$Om© g§ajU Ho$ {bE CR>mE JE _mnXÊS>…- a) Energy Conservation measures taken:- D$Om© H$s InV H$mo Ý`yZV_ H$aZo Ho$ {bE {ZåZ The following steps were taken to H$X_ CR>mE JE …- minimize the energy consumption. - g¢Q´>râ`wJb nånm| H$mo _mD$ÊQ> {nba nånm| _| - Steps taken to exchange Centrifugal ~XbZo Ho$ H$X_& Pumps by Mount Piller Pumps. - Vob go MbZodmbo nånm| H$mo {dÚwV Mm{bV nånm| - Replacement of oil driven pumps _| à{VñWmnZ& with electric driven pumps. - g^r ñVam| na OmJê$H$Vm CËnÞ H$aZm& - Creating awareness at all levels. - `m§{ÌH$ CnH$aUm| Ho$ gmW-gmW _moQ>a Ed§ AÝ` - Eliminating the idle running of {dÚwV Ho$ CnH$aUm| Ho$ {ZpîH«$` MbZ H$mo ~§X motors and other electrical H$aZm& appliances as well as mechanical equipment. - J{V{d{Y`m| H$m _erZrH$aU& - Mechanisation of activities. - nånm| Ed§ _moQ>am| Ho$ _mZH$sH$aU H$m AZwHy$bZ& - Optimising the standardization of pumps & motors. - ImamKmo‹S>m _| D$Om© H$s ~MV Ho$ {bE nwamZo - Old PHE at Kharaghoda is being nrEMB© H$mo ZB© VH$ZrH$ _| à{VñWmnZ& replaced with latest technology to save energy. - \$Z}g Am°`b ~m°`ba H$mo _ëQ>r â`yb _| ~XbZo - Steps taken to change Furnace oil Ho$ H$X_ CR>mZm& boiler into multi fuel boiler. - bmBQ>m| Ho$ ñdV… g§MmbZ Ho$ {bE {~Obr - Installation of Electric centrifuge for Ho$ÝÐr`H¥$V â`yO H$s ñWmnZm& automatic operations of lights. (~) D$Om© Ho$ d¡H$pënH$ gmYZm| Ho$ Cn`moJ hoVw CR>mE b) Steps taken for utilizing alternate JE H$X_, A{V[aŠV {d{Z`moOZ Ed§ àñVmd s o u r c e s o f e n e r g y A d d i t i o n a l `{X H$moB© hmo, D$Om© H$s InV H$_ H$aZo Ho$ {bE investments and proposals, if any, being implemented for reduction of energy {H«$`mpÝdV {H$E JE- consumption-

(i) D$Om© H$s InV _| H$_r Ho$ {bE nrgrAmaE, (i) Energy report prepared by PCRA, _wå~B© Ûmam V¡`ma H$s JB© [anmoQ>© {H«$`mpÝdV H$s Mumbai has been implemented for JB©& D$Om© H$s InV _| A{V[aŠV H$_r Ho$ {bE saving in energy consumption. The _¡. AgaQ>rdm BpÊS>`m àm. {b. Ûmam H$ånZr H$m Energy Audit of the company is conducted by M/s Ascertiva India D$Om© A§Ho$jU {H$`m J`m& Private Ltd. for further savings in energy consumption. 20 ImamKmo‹S>m _| gm_mÝ` Z_H$ Ho$ CËnmXZ Ho$ {bE àmH¥${VH$ gm¡a In production of common salt, at D$Om© Cn`moJ _| br Om ahr h¡& H$ånZr H$s _ÊS>r BH$mB© _| Kharaghoda, natural solar energy is used. I{ZO Z_H$ ì`pŠV`m| Ûmam {ZH$mbm OmVm h¡& H$ånZr Rock salt is mined manually at company’s ImamKmo‹S>m _| ~Mr hþB© _Xa {bŠ`moa ""{~Q>Z©'' go ½bmg Q>m°da Mandi unit. The company is extracting VH$ZrH$ Ûmam ~«mo_rZ {ZH$mbVr h¡ {Oggo D$Om© H$s InV H$_ Bromine at Kharaghoda from left over hmoVr h¡& ~«mo_rZ ßbm§Q> Ho$ ~Mo hþE (doñQ>) Adeof go {ZåZ ñVa mother liquor “Bitterns” with Glass Tower Technology which resulted in less Ho$ CËnmX V¡`ma H$aZo Ho$ {bE à`mgaV h¡& energy consumption. Efforts are made to develop downstream products from waste of bromine plant. g) D$Om© InV g§gmYZm| na ny§OrJV {d{Z`moOZ eyÝ` c) Capital investment on energy conservation equipment: NIL X) (i) Hw$b D$Om© InV Ed§ CËnmXZ H$s à{V BH$mB© D$Om© d) (i) Total Energy Consumption and H$s InV- Energy Consumption per unit of Production of Bromine H«$. {ddaU 2017-18 2016-17 Sl. Description 2017-18 2016-17 g§. No. 1. {dÚwV 1 Electricity (A) H«$` BH$mB© (bmI {H$bmodm°Q>) (A) Purchased Unit (Lakh KWH) 1.69 2.52 1.69 2.52 Hw$b am{e Total amount (` in Lakh) 14.86 21.21 (` bmI _|) 14.86 21.21 Am¡gV Xa/ Average Rate/ BH$mB© à{V {H$bmodmQ> (`) 8.79 8.41 Unit in per KWH(`) 8.79 8.41 (~) ñd`§ CËnm{XV (B) Own Generation (i) CËnm{XV BH$mB© (i) Generated Unit (bmI {H$bmodm°Q>) 0.01 0.04 (Lakh KWH) 0.01 0.04 à{VbrQ>a S>rOb {H$bmodmQ> KWH Unit Generated CËnm{XV BH$mB© 0.47 1.28 per Ltr. of Diesel 0.47 1.28 bmJV à{V BH$mB© (`)# 137.68 66.22 Cost per Unit(`)# 137.68 66.22 (#) _ëy ` _ | d{¥ Õ H$o H$maU bmJV _ | d{¥ Õ hBþ © h&¡ (#) Increase in cost is on account of increase in prices (ii) ^mn Ûmam Mm{bV (ii) Through Steam Turbine CËnm{XV BH$mB© bmJy Zht Generators Units Not Applicable CËnm{XV BH$mB© Generated Unit (Lakh KWH) - - 21 (bmI {H$bmodm°Q>) - - Fuel Oil/Gas Vob B©YZ/J¡g H$s bmJV/ - - Cost/Unit - - BH$mB© 2 Coal Qty. (Tonnes) Not Applicable 2. H$mo`bm _mÌm (Q>Z) bmJy Zht Total Cost - - Hw$b bmJV - - 3 Furnace Oil (F.O.) 3. ^År Vob (E\$.Amo.) Qty. (Lakh Ltr.) - 2.38 _mÌm (bmI brQ>a) - 2.38 Total Amount (` in Lakh) - 63.18 Hw$b am{e (` bmI _|) - 63.18 Average Rate (` Per Ltr.) - 26.58 Am¡gV Xa (` à{V brQ>a) - 26.58 4 Other/Internal Not Applicable Generation 4. AÝ`/AmÝV[aH$ CËnmXZ bmJy Zht Qty. (Ltr.) Mobil Oil - - _mÌm (brQ>a) _mo{~b Am°`b - - Total Cost - - Hw$b bmJV - - Consumption Per Unit (MT) of Production: CËnmXZ H$s à{V BH$mB© (_¡. Q>Z) InV Sl. Description 2017-18 2016-17 H«$. {ddaU 2017-18 2016-17 No. g§. 1. Bromine 1. ~«mo_rZ - Production (MT) 330 329 - CËnmXZ (_¡. Q>Z) 330 329 - Electricity (KWH) 510 766 - {dÚwV 510 766 ({H$bmodmQ à{V KÊQ>m>) - Furnace Oil (Ltr.) - 722 - \$Z}g Am°`b (brQ>a) - 722 2. Magnesium Chloride ** 2. _¡½Zr{e`_ ŠbmoamBS>** - Production (MT) 3600 2059 - CËnmXZ (_¡. Q>Z) 3600 2059 - Electricity (KWH) 4 26 - {dÚwV ({H$bmodmQ>) 4 26 - Furnace Oil (Ltr.) - - - \$Z}g Am°`b (brQ>a) - - - Other Fuel Not Available NA - AÝ` â`yb - - * The usage of furnace oil has been replaced by other fuel. * \$Z}g Am°`b Ho$ Cn`moJ H$mo AÝ` BªYZ Ûmam ~Xbm J`m& ** _¡½Zr{e`_ ŠbmoamBS> H$m CËnmXZ ~mø ñÌmoV go {H$`m ** The production of Magnesium Chloride J`m h¡ Bg{bE BªYZ H$s InV H$m {d{eîQ> {ddaU has been outsourced, so the specific CnbãY Zht h¡& break up offuel consumption is not available.

22 {Q>ßnUr … `Ú{n Z_H$ H$m CËnmXZ ""gm¡a dmînrH$aU' Note: Since salt manufacture is done through nÕ{V go hmoVm h¡ AV… D$Om© InV Ho$ Am§H$‹S>o “Solar Evaporation” method, therefore, Ho$db ~«mo_rZ g§`§Ì Ed§ _¡½Zr{e`_ ŠbmoamBS> go energy consumption figures have been taken g§~§{YV h¡& only in respect of Bromine Plant and magnesium chloride. ~. emoY Ed§ {dH$mg na ì`` (` bmI _|) B. Expenditure on R & D (` in Lakh) ny§Or … 0.00 Capital : 0.00 AmdVu … 3.07 Recurring : 3.07 `moJ … 3.07 Total : 3.07 Hw$b emoY Ed§ {dH$mg ì`` H$m Total R & D expenditure {~«H$s Ho$ à{VeV Ho$ ê$n _| : 0.52% as a Percentage of total turnover : 0.52 % g. VH$ZrH$s Cn`moJ, AZwHy$bZ Ed§ emoY C. Technology Absorption Adaptation and Innovation 1. VH$ZrH$ Cn`moJ, AZwHy$bZ Ed§ 1. Efforts made for Technology emoY Ho$ {bE à`mg {H$E JE& eyÝ` absorption, adaptation and innovation. NIL 2. CŠV à`mgm| Ho$ n[aUm_ñdê$n àmá 2. Benefits derived as a result of the bm^ `Wm CËnmX gwYma, bmJV _| above efforts e.g. products H$_r, CËnmX {dH$mg Ed§ Am`mV improvement, cost reduction, à{VñWmnZ Am{X& eyÝ` product development import Substitution etc. NIL 3. Am`m{VV VH$ZrH$ Ho$ g§~§Y _| ({dÎmr` df© Ho$ 3. In case of imported technology àmaå^ go _mZVo hþE {dJV 5 dfm] Ho$ Xm¡amZ (imported during the last 5 years Am`m{VV) {ZåZ gyMZmE§ àñVwV H$s OmE§…- reckoned from the beginning of the f i n a n c i a l y e a r ) , f o l l o w i n g information may be furnished:- A) Am`mV H$s JB© VH$ZrH$ eyÝ` a) Technology imported. NIL ~) Am`mV H$m df© bmJy Zht b) Year of import. NA g) Š`m Am`m{VV VH$ZrH$ c) Whether imported technology has nyU© ê$n go Cn`moJ H$r JB©& bmJy Zht been fully absorbed? NA X) joÌ Ohm± Am`m{VV VH$ZrH$ H$m d) Areas where absorption of Cn`mJo Zht {H$`m J`m, `{X H$mBo © hm?o bmJy Zht imported technology has not taken place, if any. NA (X) {dXoer _wÐm CnmO©Z Ed§ ì`` D. Foreign Exchange Earning and Outgo: 23 (i) {Z`m©V H$mo ~‹T>mZo, CËnmX Ed§ godmAm| Ho$ {bE ZE (i) Activities relating to export ~mOma {dH${gV H$aZo Ed§ {Z`m©V H$s `moOZm Ho$ initiatives taken to increase exports, {bE {Z`m©V go g§§~§{YV J{V{d{Y`m| H$s nhb H$s development of new markets for JB©& eyÝ` products and services and exports plans. NIL (ii) Hw$b {dXoer _wÐm H$m Cn`moJ Ed§ CnmO©Z (ii) Total foreign exchange used and earned.

- {dXoer _wÐm _| CnmO©Z eyÝ` - Earnings in Foreign Exchange. NIL - {dXoer _wÐm ì`` eyÝ` - Foreign Exchange outgo. NIL 6. _mZd g§gmYZ {dH$mg 6. H U M A N R E S O U R C E S DEVELOPMENT

H$ånZr Ûmam gaH$ma H$s n[ad{V©V Zr{V`m|, VH$ZrH$ The Company has continued its efforts to A{X Ho$ AZwê$n AnZr {dH$mg J{V{d{Y`m| Ed§ CnbãY improve and optimum utilisation of its _mZd g§gmYZ Ho$ A{YH$V_ Cn`moJ Ed§ gwYma Ho$ available human resources and {ZaÝVa à`mg {H$E Om aho h¢& H$ånZr AnZo H$_©Mm[a`m| development activities in line with the Ho$ OrdZ ñVa H$s JwUdÎmm _| gwYma Ho$ à{V dMZ~Õ h¡ changing Government policies, Ed§ amîQ´> Am¡a gmW hr CZ ñWmZm| na Ohm§ H$ånZr H$s technology etc. The Company is BH$mB`m§ ñWm{nV h¢, dhm§ ahZo Ed§ H$m`© XemAm| _| gwYma committed to improve the quality of life of Ho$ gm_m{OH$ Xm{`Ëd {Z^mZo Ho$ à{V dMZ ~Õ h¡& g^r its employees and is also committed to ñVa Ho$ H$_©Mm[a`m| Ho$ {dH$mg hoVw Ed§ A~ g§ñWmZ _| hr fulfil the social obligations towards the à{ejU àXmZ H$aZo Ho$ {bE Omoa {X`m Om ahm h¡& national as well as of the living and H$ånZr Zo H$_©Mm[a`m| H$mo H$m¡eb {dH$mg Ed§ àoaUm Am{X working environment of the places where àXmZ H$aZo hoVw {deofkm| H$mo à{ejU Ho$ {bE Am_§{ÌV the Company’s Units are located. {H$`m& Emphasis is now given to develop and provide in-house training to employees at all levels. Company has invited experts for imparting training to employees for skill development, motivation etc.

7. OZ epŠV 7. MANPOWER AmnH$s H$ånZr _| df© Ho$ AÝV _| H$_©Mm[a`m| H$s g§»`m Your company has 76 employees 76 ahr {Og_| 20 H$m`©H$mar Ed§ 56 J¡a H$m`©H$mar consisting of 20 executives and 56 Non- gpå_{bV h¢& BZHo$ A{V[aŠV H$ånZr _| 31.3.2018 Executives at the close of this financial year.In addition; Company has 99 H$mo g_má {dÎmr` df© _| 99 l{_H$, {OÝhm|Zo 240 {XZ workers who have completed 240 days at nyU© {H$E h¢& close of Financial Year 31.03.2018.

24 9. nXm| H$m AmajU… 8. RESERVATION OF VACANCIES

AZwgy{MV Om{V, AZwgy{MV OZ-Om{V,AÝ` {nN>‹S>m Your company is implementing the dJ©, emar[aH$ {dH$bm§J (nr.EM) Am¡a ^yVnyd© g¡{ZH$ guidelines issued by the Government (EŠg. Eg) hoVw nXm| _| AmajU VWm AÝ` H$moB© with regard to reservation of posts for SC, Ny>Q>/gw{dYmAm| Ho$ g§~§Y _| gaH$ma Ûmam Omar {ZX}em| ST, OBC, Physically handicapped (PH) H$mo H$ånZr H$m`m©pÝdV H$a ahr h¡& AZwgy{MV and Ex-Servicemen (Ex-S) as well as for Om{V/AZwgy{MV OZOm{V/AÝ` {nN>‹S>m dJ©/emar[aH$ any other concessions /facilities. The number of SC/ST/OBC/PH employees {dH$bm§J dJ© H$_©Mm[a`m| H$s {dÎmr` df© Ho$ AÝV _| at the close of the financial year, in the {d{^ÝZ lo{U`m| H$s g§»`m {ZåZ àH$ma ahr…- various categories remained as under: loUr 31 _mM© H$mo 31 _mM© H$mo 31 _mM© H$mo 31 _mM© H$mo 31 _mM© H$mo 31 _mM© H$mo Group Total No. of No. of No. of No. of No. of Ex- AZw.Om{V AZw.OZOm{V AÝ` {nN>‹S>m {dH$bm§Jmo§ nyd© g¡{ZH$m| strength SCs STs OBCs PH Service men as on as on as on as on as on as on st st st st st Hw$b g§»`m H$s g§»`m H$s g§»`m dJ© H$s g§»`m H$s g§»`m H$s g§»`m 31st March 31 March 31 March 31 March 31 March 31 March 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 E 20 17 1 1 0 0 3 1 0 0 0 0 A 20 17 1 1 0 0 3 1 0 0 0 0 ~r 24 19 3 4 0 0 4 1 0 0 0 0 B 24 19 3 4 0 0 4 1 0 0 0 0 gr 11 9 2 1 0 0 3 3 1 1 0 1 C 11 9 2 1 0 0 3 3 1 1 0 1 S>r 21 27 4 4 3 2 3 4 1 1 0 1 D 21 27 4 4 3 2 3 4 1 1 0 1 `moJ 76 72 10 10 3 2 13 9 2 2 0 2 Total 76 72 10 10 3 2 13 9 2 2 0 2

9. ñdopÀN>H$ godm{Zd¥{Îm `moOZm … 9. V O L U N T A R Y R E T I R E M E N T SCHEME: ñdopÀN>H$ godm {Zd¥{Îm `moOZm Ho$ AÝVJ©V df© Ho$ Xm¡amZ During the year no employees/ workers H$moB© ^r H$_©Mmar l{_H$ ñdo{N>H$ godm{Zd¥Îm Zht hþE& has voluntarily retired under Voluntary Retirement Scheme 10. Am¡Úmo{JH$ g§~§Y 10. INDUSTRIAL RELATIONS

df© Ho$ Xm¡amZ Am¡Úmo{JH$ g§~§Y gm¡hmÐ©nyU© aho& H$_©Mm[a`m| The industrial relations during the year H$s {eH$m`Vm| na Amngr ~mVMrV H$s JB© Am¡a Ohm§ VH$ remain cordial. Grievances of the g§^d hmo gH$m CÝh| Xÿa {H$`m J`m& ÁdmB§Q> employees were discussed mutually and H$m¢{gb/ßbm§Q> H$m¢{gb Omo {H$ à~ÝY _| l{_H$m| H$s as far as possible settled. Joint Councils ^mJrXmar `moOZm Ho$ AÝVJ©V J{R>V h¡, g§VmofOZH$ H$m`© /Plant Councils which have been H$a ahr h¡& df© Ho$ Xm¡amZ H$moB© h‹S>Vmb/Vmbm~§Xr Ho$ constituted under the Workers Participation in Management Scheme are H$maU _mZd {Xdgm| H$s hm{Z Zht hþB©& functioning satisfactorily. No man-days were lost during the year due to strike/lockout.

11. H$ë`mUH$mar J{V{d{Y`m§ 11. WELFARE ACTIVITIES H$ånZr _| Mmby {H$`o J`o {d{^ÝZ H$ë`mUH$mar H$m`© df© Various welfare measures introduced in 25 Ho$ Xm¡amZ {ZaÝVa Mmby aho,{OZ_| BH$mB`m| _| ZJar` the company were continued during the ~ñVr Ho$ ê$n _| Amdmgm| H$m AZwajU, {M{H$Ëgm year. These includes maintenance of accommodation in the form of township gw{dYmAm| H$m àmdYmZ, aU joÌ _| Z_H$ Ho$ CËnmXZ _| at units, provision of medical facilities bJo l{_H$m| Ho$ gmW hr gmW ImamKmo‹S>m Ho$ nmg Ho$ Jm§dm| and provision of drinking water for H$s J«m_rU OZg§»`m Ho$ {bE nrZo Ho$ nmZr H$m àmdYmZ labourers engaged in the production of em{_b h¡& ImamKmo‹S>m _| ì`dpñWV VarHo$ go Amdmgr` salts in the Run area as well as also for gw{dYm _| gwYma Ho$ {bE A{V[aŠV à`mg Omar h¡& rural population of the village near Kharaghoda. Further efforts are being made to improve the residential facilities at Kharaghoda in planned manner.

H$ånZr H$m ImamKmo‹S>m _| l{_H$m| Ed§ Am_ OZVm Ho$ {bE The Company has hospital for workers {M{H$Ëgmb` h¡& h_mao {M{H$Ëgmë` _| df© Ho$ Xm¡amZ and general public at Kharaghoda. [anmoQ>© Ho$ AÝVJ©V 2669 ~mø amo{J`m|, ñQ>m°\$ Ho$ During the year under report 2669 nos. of outdoor patients including our staff gXñ`m|, AJm[a`mAm| Ed§ l{_H$m| g{hV CnMma {H$`m members,Agarias and workers have been J`m& 23 OZdar 2018 H$mo nëg nmo{b`mo {e{da _| treated at our hospital. A Pulse Polio 240 ~ƒm| H$mo Xdm {nbmB© JB©& `hm± `h ^r CëboI camp was organised on 23rd January, H$aZm _hËdnyU© h¡ {H$ 60 àgyVr Ho$g ^r AñnVmb _| 2018, where 240 children were vaccinated. XoIo JE& It is worth mentioning that 60 Maternity Case were handed at the hospital. 13. CnbpãY`m§, nwañH$ma Ed§ E_Amo`y 12. ACHIEVEMENT, AWARDS AND MOU H$ånZr Zo df© 2018-19 Ho$ {bE ^mar CÚmoJ {d^mJ, The Company has signed the MOU for ^mar CÚmoJ Ed§ bmoH$ CÚ_ _§Ìmb` Ho$ gmW E_Amo`y na the financial year 2018-19 with hñVmja {H$E& Department of Heavy Industry, Ministry of Heavy Industries and Public Enterprises.

13. df© 2018-19 Ho$ {bE ÑpîQ>H$moU 13. OUTLOOK FOR THE YEAR 2018-19 (A) ImamKmo‹S>m (JwOamV) _| _¡½Zr{e`_ \$bmoamBQ>$ (a) Magnesium Chloride Project at n[a`moOZm… Kharaghoda (Gujarat): df© Ho$ Xm¡amZ H§$nZr H$s _¡¾r{e`_ ŠbmoamBS> H$s dV©_mZ Company will make strong efforts to dm{f©H$ CËnmXZ j_Vm H$mo 7500 _r{Q´>H$ Q>Z go expand the present annual production 35500 _r{Q´>H$ Q>Z VH$ ~‹T>mZo Ho$ {bE gwÑ‹T> à`mg H$a capacity of Magnesium Chloride from df© Ho$ Xm¡amZ Mma ZE g§`§Ì ñWm{nV H$aZo H$s `moOZm h¡& 7500 MT to 35,500 MT by installing 4new plants during the year.

(~) ~«mo_rZ g§`§Ì H$s ñWmnZm (b) Installation of Bromine Plants

26 H$ånZr Ho$ 900 _¡. Q>Z à{Vdf© j_Vm Ho$ Xmo g§`§Ì Mmby Company is having two plants h¢ VWm H$ånZr H$s g§`§Ìm| H$mo AÚVZ H$a CËnmXZ Ho$ operational with production capacity of j_Vm _| d¥{Õ H$s `moOZm h¡& 900 MT per annum, and planning to update and enhance the production capacity of plants. (g) nmoQ>o{e`_ å`yaoQ> Ho$ {bE `moOZm (c) Planning for Murate of Potash H$ånZr ZoeZb \${Q>©bmBOg© {b. Ho$ gh`moJ go Company will explore the option for nmoQ>o{e`_ å`yaoQ> Ho$ CËnmXZ Ho$ {dH$ën H$s g§^mdZm production of Murate of Potash in Vbme ahr h¡& collaboration with National Fertilisers Limited.

(X) ImamKmo‹S>m (JwOamV) _| Z_H$ Ho$ CËnmXZ _| d¥{Õ… (d) Enhancement of production of salt at Kharaghoda (Gujarat) 1,00,000 Q>Z à{Vdf© H$s j_Vm H$s Z_H$ n[aîH$aU In order to meet the requirement of raw embm {ZînmXZmYrZ h¡& H$ƒo Z_H$ H$s ny{V© H$s salt for Salt Refinery of 100,000 TPA under Amdí`H$Vm hoVw H$ånZr Ûmam {d^mJr` l{_H$m| Ûmam execution, company has planned the production of salt through departmental Z_H$ H$m CËnmXZ H$aZo VWm H$ånZr H$s ^y{_ na labour and also under contract in various {d{^Þ ^mJm| _| gdm}Îm_ CËnmXZ bmJV na g§{dXm Ho$ siding on company’s land to enhance salt AmYma na Z_H$ CËnmXZ H$aZo Ho$ {bE `moOZm ~Zm ahr production at optimum cost of h¡& `h EH$ Va\$ bm^ _| A§eXmZ H$aoJr gmW hr {~Zm production. This will contribute towards {H$gr A{V[aŠV bmJV Ho$ `h ~«mo_rZ Ed§ _¡½Zr{e`_ profitability on one hand and shall be ŠbmoamBS> Ho$ CËnmXZ Ho$ {bE H$ƒo _mb (d{O©Z {~Q>Z©) source of raw material (Virgin Bittern) for H$m gmYZ hmoJm& production of Bromine and Magnesium Chloridewithout any additional cost.

(`) _¡½Zr{e`_ ŠbmoamBS> Ho$ CËnmXZ Ho$ {bE S>r. (e) Treatment of De-brominated Bittern (DBB) to produce Magnesium Chloride ~«mo_rZoQ>oS> {~Q>Z© (S>r~r~r) H$m CnMma amOñd àm{á Ho$ Adga H$mo XoIVo hþE H$ånZr H$s df© Ho$ Looking at the scope of revenue Xm¡amZ 28000 _¡. Q>Z dm{f©H$ g§`wŠV j_Vm Ho$ Mma generation, company has planned for A{V[aŠV g§`§Ì ñWm{nV H$aZo H$s `moOZm h¡& installation of four additional plants of Magnesium Chloride during the year of combined annual capacity of 28000 MT. (a) {h_mMb àXoe _ÊS>r _| Ð§J _| ewîH$ IZZ J{V{d{Y`m| (f) Recommencement of dry Mining H$m nwZ… àmaå^ activity at Drang, Mandi, HP AmnH$s H$ånZr Zo JV df© Ho$ Xm¡amZ IZZ J{V{d{Y`m| Your company has recommenced the Ed§ I{ZO Z_H$ H$m CËnmXZ nwZ… àmaå^ H$a {X`m mining operation and production of Rock `Ú{n EH$ ~ma O¡go hr IZZ J{V{d{Y`m| Ho$ {bE gånyU© Salt during the previous year, however 27 _yb^yV T>m±Mm {dH${gV hmo OmEJm, d¥hX ñVa na once development of complete dm{UpÁ`H$ CËnmXZ àmaå^ hmo OmEJm& infrastructure for mining activity is completed then large scale commercial production can be commenced. (b) _ÊS>r ({h_mMb àXoe) _| gmoë`yeZ _mBqZJ (g) Solution Mining Project at Mandi n[a`moOZm : (Himachal Pradesh) gmoë`yeZ _mBqZJ n[a`moOZm Ho$ {b`o _mBqZJ brO Ed§ Consultant has been appointed to secure AÝ` dm§{N>V AZw_{V`m± boZo Ho$ {bE gbmhH$ma {Z`wŠV the mining lease and all other requisite {H$`m J`m h¡ Ed§ BZHo$ níMmV² 3,00,000 Q>Z à{Vdf© clearances for the Solution Mining projectand thereafter modality of H$s d¡Š`y_ Z_H$ gm¡a dmînrH$aU embm H$s ñWmnZm Ho$ execution will decide forinstallation of VarHo$ {Z{íMV H$aoJr Vm{H$ amÁ` gaH$ma H$s Amny{V© Ed§ 300,000 Tonnes per annum Vacuum Salt {h_mMb àXoe h[a`mUm, n§Om~ Ed§ Oå_y VWm H$í_ra Evaporation Refinery Project at Mandi to Am{X Ho$ IwXam ~mOma _| nhþ§M gHo$& cater the State Government supplies and retail market of Himachal Pradesh, Punjab, Haryana, Jammu and Kashmir etc.

(d) ImamKmo‹S>m _| gm¡a Ed§ dm`w D$Om© CËnmXZ (h) Solar and Wind Power Projects at Kharaghoda:

H$ånZr Zo gwÑ‹T> à`mg {H$E h¢ VWm erK« hr CnbãY hmoZo Company has made strong efforts for na H$ånZr _| d¥hX ñVa na `m§{ÌH$ ê$n go nwZéÕma hmo installation of Solar and Wind Power Projects and expected to take-off soon gHo$Jm& which will be instrumental for revival of Company in a big way.

14. amîQ´>n{V Ho$ {ZX}e 14. PRESIDENTIAL DIRECTIVES df© Ho$ Xm¡amZ amîQ´>n{V Ho$ H$moB© {ZX}e àmá Zht hþE& No Presidential Directives has been received during the year.

15. H$nQ> H$s gyMZm 15. FRAUD REPORTING

df© Ho$ Xm¡amZ H$ånZr na/Ûmam H$moB© H$nQ> OmZH$mar No fraud on or by the company has been _|/gyMZm _| Zht Am`m& noticed/reported during the year. 16. amO^mfm ({hÝXr) H$m {H«$`mÝd`Z 16. IMPLEMENTATION OF OFFICIAL LANGUAGE (HINDI)

_w»`mb` Ed§ BH$mB`m| _| J{R>V amO^mfm H$m`m©Ýd`Z The Official language Implementation

28 g{_{V H$ånZr _| {hÝXr Ho$ àJm_r à`moJ _| H${R>ZmB©`m| committee constituted at the corporate H$mo gwbPmZo hoVw {ZaÝVa à`mgaV h¡& office and at the units continued their efforts to overcome from the difficulties in the progressive use of Hindi in the Company. {hÝXr _| é{M OmJ¥V H$aZo Ho$ {bE à{V`mo{JVmE§ Competitions were held to create interest Am`mo{OV H$s JB©& {d{^Þ à{V`mo{JVm Ho$ {dOoVmAm| H$mo in Hindi. Prizes were also given to the nwañH$ma {Xò Jò& H$ånZr àËòH$ _mh Ho$ {ÛVr` winner in various competitions. The Company observes “Hindi Day” on gmo_dma H$mo ""{hÝXr {Xdg'' Ho$ ê$n _| _ZmVr h¡& Second Monday of each Month. The H$ånZr Ûmam 14.9.2017 go 30.9.2017 VH$ {hÝXr company is observing “Hindi Pakhwada” nIdm‹S>m _Zm`m J`m& from 14.09.2017 to 30.09.2017.

17. gV©H$Vm 17. VIGILANCE

17.1 gVH©$Vm `§ÌrH$aU 17.1 Vigilance Mechanism: gVH©$Vm emIm Ûmam H$ånZr H$s Zr{V`m| à{H«$`mAm| Vigilance branch has been closely Ed§ ì`dñWmAm| H$m ZOXrH$s go Ü`mZ aIm OmVm h¡& monitoring the systems in vogue, policies VWm ì`dñWm _o§ gwYma Ho$ {b`o g_` -g_` na and procedures of the Company and g i v i n g s u g g e s t i o n s f o r s y s t e m gwPmd {X`o OmVo h¢& gVH$©Vm emIm Ûmam A{YH$ go improvement from time to time with an A{YH$ gVH$Vm© {ddmaU na Ü`mZ {X`m OmVm h¡ Z emphasis on preventive vigilance. {H$ gVH$©Vm Ho$ T>m{ÊS>H$ ê$n na& g_`-g_` na Instead of punitive vigilance, surprise AmH$pñ_H$ Xm¡ao, {ZarjU ì`ñWm _| gwYma, H$m`© _| checks and inspections are carried out nmaX{e©Vm, {Z`_m| H$m gabrH$aU Ed§ VH$ZrH$ H$m a n d s u g g e s t i o n s f o r s y s t e m improvements, transparency in work, A{YH$ go A{YH$ Cn`moJ H$aZo Ho$ gwPmd {XE OmVo simplification of Rules and Regulations h¢& and usage of technology is promoted. 31.3.2018 H$mo gVH$©Vm emIm _| EH$ _w»` The Vigilance wing of the company is gVH©$Vm A{YH$mar (grdrAmo), H$mo Xmo gVH$©Vm headed by Chief Vigilance Officer (CVO) A{YH$mar ghm`Vm H$aVo h¢& andsupported by two Vigilance Officers as on 31.03.2018. 17.2 {d{^Þ-n[anÌm|/ Zr{V`m| H$m H$m`m©Ýd`Z 17.2 Implementation of various policies/ circulars gVH©$Vm {d^mJ, Ho$ÝÐr` gVH©$Vm Am`moJ Ûmam Omar The Vigilance department follows n[anÌm| Ed§ Zr{V`m| H$m nmaX{e©Vm H$mo _O~yV ~ZmZo policies and circulars issued by Central Ed§ _Oy~V H$aZo H$m AZwgaU H$aVm h¡& df© 2017- Vigilance Commission to build and 18 Ho$ Xm¡amZ 32 (~Îmrg) {eH$m`V| àmá hþB©, 3 strengthen a culture of transparency. During 2017-18, 32(Thirty Two)

29 (VrZ) {eH$m`Vm| na Vm{H©$H$ {ZîH$f© {ZH$mbm J`m& complaints were received, all complaints Ohm§ H$ht Amdí`H$ hþAm g_w{MV AZwemgZmË_H$ except 3(three) were carried to a logical H$m`©dmhr àñVm{dV H$s JB©& 10 (Xg) {ZarjU conclusion and appropriate disciplinary [anmoQ>© àñVwV H$s JB©& à~ÝYZ H$mo {d{^Þ _m_bm| _| action has also been proposed wherever gbmhH$ma {Q>ßnUr Omar H$s JB©& necessary; 10 (Ten) investigation reports were submitted. Advisory notes were issued to Management on various matters. 17.3 gVH©$Vm OmJê$H$Vm gámh Ed§ H$m`©embmE§ 17.3 Vigilance Awareness Week and Workshops

df© Ho$ Xm¡amZ 30 AŠQy>~a go 4 Zdå~a 2017 VH$ Vigilance awareness week was observed gVH©$Vm OmJê$H$Vm gámh _Zm`m J`m& {df`- from 30th October to 4th November, "^«îQ>mMma _wŠV ^maV' ahm& g§ñWm _| H$B© 2017. This year the theme was “My J{V{d[Y`m± O¡go à_wI ñWmZm| na ~¡Za bJmZo, Vision-Corruption Free India”. Within {Z~§Y, H$mQy>©Z, Zmam Ed§ nmoñQ>a, H$_©Mm[a`m| Ho$ {bE the organisation activities like banners displayed at prominent locations; B©-à{Vkm H$mo ~‹T>mdm XoZm& H$_©Mm[a`m| Ho$ ~ƒm| Ho$ Promotion of Integrity e-Pledge; Essay, {bE S´>mBªJ VWm H$mobm°O à{V`mo{JVmE§ Am`mo{OV H$s Slogan and Poster Competitions for JB©& gVH©$Vm OmJê$H$Vm gámh Ho$ Xm¡amZ 5 à{ejU employees and drawing and Collage H$m`©H«$_ Am`mo{OV {H$E JE& H$_©Mm[a`m| Ho$ ~ƒm| Ho$ Competition for the wards of employees {bE S´>mBªJ VWm H$mobmO à{V`mo{JVmE Am`mo{OV H$s were organised. 5 (Five) Training sessions JB©& were held during the Vigilance Awareness Week. Am_ OZVm Ho$ {bE H$ånZr Ûmam O`nwa (amO.), To reach out to public,activities like dra_Jm_ (JwOamV), _ÊS>r Ed§ Ð§J, am_ZJa Extempore, Poster writing competition (CÎmamIÊS>) _| EŠgQ>oånmoa, nmoñQ>a à{V`mo{JVmE§ were held in schools in Jaipur (Rajasthan), H$ånZr Ho$ H$m`m©b`m| _| AIÊS>Vm H$s enW {XbmB© Viramgham (Gujarat), Drang (Mandi) JB© Vm{H$ H$_©Mm[a`m| _| ^«îQ>mMma CÝ_ybZ Ho$ à{V and Ramnagar (Uttarakhand). The “Integrity Pledge” was also organised in à{V~ÕVm Ed§ Z¡{VH$ AmMaU _| CƒV_ _mZH$m| H$mo office in order of affirming the employee’s ~ZmE aIm OmE& 26 OZdar 2018 H$mo JUV§Ì commitment to eradicate corruption and {Xdg g_mamoh Ho$ Xm¡amZ g\$b à{V`mo{J`m| H$mo to uphold highest standards of ethical nwañH$ma {dV[aV {H$E JE& conduct. The winners of competitions held were distributed prizes during the Republic Day Function held on 26th January, 2018.

18. gyMZm H$m A{YH$ma A{Y{Z`_, 2005 18. RIGHT TO INFORMATION ACT, 2005

30 AmaQ>rAmB© A{Y{Z`_, 2005 H$s AnojmZwgma As per the requirements of RTI Act, Anrb àm[YH$mar, Ho$ÝÐr` bmoH$gyMZm A{YH$mar, necessary updated information including ghm`H$ bmoH$ gyMZm A{YH$mar Ho$ gmW-gmW the names of Appellate Authority, H$ånZr Ho$ àË`oH$ joÌ Ho$ H$m`m©b`m| Ho$ amÁ` ñVa Ho$ Central Public Information Officer and bmoH$ gyMZm A{YH$mar Ho$ Zm_ Ed§ AÚVZ gyMZmE§ Assistant Public Information Officer as H$ånZr H$s do~gmBQ> na S>mbr Om ahr h¡& àmá àíZm| well as State Level Public Information Officer in each of the Regional offices of H$m {ZYm©[aV g_`md{Y _| Odm~ {X`m OmVm h¡& df© the company are posted on the website. Ho$ Xm¡amZ H$ånZr _| Anrb g{hV 40 (Mmbrg) Queries received are replied within the àmW©Zm nÌ àmá Ed§ 39 (CZVmbrg) gå~mo{YV hþE stipulated time. During the year the Ed§ 3 àW_ Anrb Ed§ df© Ho$ AÝV _| 1 (EH$) company has received 40 (Forty) RTI àmW©Zm nÌ b§{~V aho& applications and 3 (Three) first appeals and addressed 39 (Thirty Nine) applications and 1 (One) applications remained pending at the close of the year.

19. bmoH$ {eH$m`Vm| H$m {ZamH$aU 19. R E D R E S S A L O F P U B L I C GRIEVANCES AmnH$s H$ånZr bmoH$ {eH$m`Vm| Ho$ g_`~Õ Ed§ Your Company is committed for Hw$eb VarHo$ go g_mYmZ Ho$ {bE à{V~Õ h¡& resolution of public grievance in efficient {eH$m`Vm| Ho$ g_mYmZ Ho$ g§H$ën H$mo nyU© H$aZo Ho$ and time bound manner. In order to {bE ^maV gaH$ma Ho$ àemg{ZH$ gwYma Ed§ bmoH$ facilitate resolution of grievances in transparent and time bound manner, {eH$m`V {d^mJ, H$m{_©H$ Ed§ à{ejU {d^mJ Ûmam Department of Administrative Reforms & www.pgportal.in d¡~ AmYm[aV {ZJamZr Public Grievances, Department of àUmbr àmaå^ H$s JB© h¡& ^maV gaH$ma Ho$ Personnel & Training, Government of {ZX}emZwgma OZ {eH$m`Vm| H$m 2 _mh H$s Ad{Y _| India has initiated web-based monitoring g_mYmZ {H$`m OmZm h¡& `{X g_mYmZ 2 _mh H$s system at www.pgportal.in. As per Ad{Y _| hmoZm g§^d Z hmo Vmo EH$ A§V[a_ Odm~ {X`m directions of GOI, public grievances are to OmZm hmoJm& AmnH$s H$ånZr {eH$m`Vm| H$m g_mYmZ be resolved within two months’ time. If it CŠV g_`md{Y _| hr H$aZo Ho$ {bE g^r à`mg H$a is not possible to resolve the same within ahr h¡& two months period, an interim reply is to be given. Your company is making all efforts to resolve grievances in above time frame.

31 20. g§gXr` g{_{V`m| H$s {g\$m[aem| Ho$ AZwgma 20. ADDITIONAL INFORMATION A{V[aŠV gyMZm P U R S U A N T T O T H E R E C O M M E N D A T I O N S O F PARLIAMENTARY COMMITTEES

H$ånZr Zo| {dXoe `mÌm na H$moB© ì`` Zht {H$E Ed§ The company has not incurred ì`dgm` g§~Õ©Z d A{V{W-gËH$ma na ` 1.94 e x p e n d i t u r e o n f o r e i g n t r a v e l . bmI ({nN>bo df© ` 2.58 bmI) IM© {H$`o JE Omo Expenditure incurred on Business {~H«$s H$m 1.28 à{VeV h¡& {dkmnZ d àMma na Promotion and Entertainment was ` 1.94 Lakhs (previous year ` 2.58 Lakhs) which ` 4.24 bmI (JV df© ` 4.73 bmI) IM© {H$E works out to 1.28 %of the turnover. JE& Expenditure on advertisement and publicity was ` 4.24 Lakhs (Previous year ` 4.73 Lakhs).

21. amîQ´>r` amOH$mof _| A§eXmZ 21. CONTRIBUTION TO NATIONAL EXCHEQUER

g_rjmYrZ df© Ho$ Xm¡amZ {d{^Þ H$am|/ã`mO Ho$ ê$n During the year under review , the contribution / provision made by the _| Ho$ÝÐr` Ed§ amÁ` Ho$ amOH$mofm| _| JV df© H$s am{e company in the form of various taxes / ` 495 bmI H$s VwbZm _| H$ånZr Ûmam interest to the National Exchequer, both ` 470 bmI H$m àmdYmZ/A§eXmZ {H$`m J`m& Central and State, was of ` 470 lakhs as against ` 495 lakhs in the previous year.

22. d¡Ym{ZH$ Ed§ AÝ` Amdí`H$VmAm| Ho$ AZwgma 22. INFORMATION PURSUANT TO gyMZm S T A T U T O R Y A N D O T H E R REQUIREMENTS H$ånZr A{Y{Z`_, 2013 Ho$ AÝVJ©V àñVwV H$s The information required to be furnished OmZo dmbr Ano{jV gyMZmE§ {ZåZ àH$ma h¡& as per the Companies Act, 2013 are as under: 22.1 boIm narjH$ 22.1 AUDITORS H$ånZr A{Y{Z`_ 2013 H$s Ymam 139(5) Ho$ Pursuant to Section 139(5) of the AZwH«$_ _| ^maV Ho$ {Z`§ÌH$ Ed§ _hmboIm narjH$m| Companies Act, 2013 the Comptroller and Ûmam {dÎmr` df© 2017-18 Ho$ {bE _¡gg© EM.gr. Auditor General of India have appointed ~moWam EÊS> Egmo{gEQ²>g, MmQ>©S>© boImH$ma, O`nwa H$mo M/s H. C. Bothra & Associates, Chartered gm§{d{YH$ boIm narjH$ Ho$ ê$n _| {Z`wŠV {H$`m J`m& Accountants, Jaipur as Statutory Auditors for the financial year 2017-18.

32 22.2 d¡Ym{ZH$ A§Ho$jH$ H$s [anmoQ>© na à~ÝYZ H$s {Q>ßnUr 22.2 MANAGEMENT COMMENTS ON STATUTORY AUDITORS’ REPORT

22.2.1 d¡Ym{ZH$ A§Ho$jH$m| Ûmam df© 2017-18 Ho$ 22.2.1 The Statutory Auditors has given an EH$b {dÎmr` {ddaU na _`m©{XV [anmoQ>© Xr qualified report on standalone financial JB©& CZHo$ Ûmam "'_hËdnyU© _m_bo"" Ho$ statement of the company for the financial AÝVJ©V {dÎmr` {ddaU H$s {Q>ßnUr g§ 1.7 year 2017-18, has drawn attention under Ed§ 5 H$s Amoa Ü`mZ AmH${f©V H$a “Emphasis Matter” regarding Note No. 1.7 and 5 of financial statement, AmÝV[aH$ {Z`§ÌU na _`m©{XV am` Ed§ observation under CARO and qualified grEAmaAmo Ho$ AÝVJ©V {dMma ì`ŠV {H$E opinion on Internal financial Controls. JE& 22.2.1.1 _`m©{XV am` Ho$ gå~ÝY _| Odm~ {ZåZ àH$ma 22.2.1.1The reply to the Qualified Opinion is h¡…- as under: Amdí`H$ àmdYmZ `{X Ano{jV hmo {dÎmr` The necessary provision if required will df© 2018-19 _| narjU Ed§ _m_bo _| be made in financial year 2018-19 after {d{Y {d^mJ$go am` boH$a àmdYmZ {H$`m examination and taking the advice of Om`oJm& legal department in this matter. 22.2.1.2 _hËdnyU© _X H$m O~m~ {ZåZ àH$ma h¡… 22.2.1.2 The reply to the emphasis of matter isas under:

H$ånZr H$s {dÎmr` pñW{V H$mo XoIVo hþE Company has already taken the H$ånZr H$s CnXmZ Ho$ {déÕ ~H$m`m _m§J action to invest the outstanding H$mo MaU~Õ VarHo$ go {Zdof H$aZo H$s demand against gratuity in phase H$m`©dmhr H$s Om MwH$s h¡& manner after reviewing the financial position of company. 22.2.1.3 H$ånZr (boIm narjm [anm}Q>) AmXoe 2016 _o§ 22.2.1.3 The reply to the observations made {Xò Jò {dMmam| H$m O~md {ZåZ àH$ma h¡ … in Companies (Auditor Report) Order 2016 is as under: 1 (A) ^m¡{VH$ gË`mnZ H$m`© nyU© hmoZo Ho$ Cnam§V _ÊS>r 1 (a) The fixed assets register of Mandi BH$mB© H$r ñWm`r n[agån{V`m| H$m a{OñQ>a Mmby unit will be completed after {dÎmr` df© _| nyU© H$a {b`m OmòJm& completion of physical verification work in current financial year

(~) ñWm`r n[agån{Îm`m| Ed§ ñH§$Y Ho$ ^m¡{VH$ gË`mnZ 1 (b) The work of physical verification of H$m H$m`© MmQ>©S>© boImH$ma g§ñWm Ûmam Mmby {dÎmr` df© Assets and inventory will be _| H$a {b`m OmEJm& conduct by the CA Firm during the current financial year 1

33 (g)(i) H$ånZr Ho$ JR>Z Ho$ g_` ImamKmo‹S>m JwOamV _| (c)(i) Land at Kharaghoda (Gujarat) H$ånZr H$s ^y{_ Ho$ gå~ÝY _| ^y{_ H$s bmJV ^maV belongs to company as the cost of gaH$ma H$mo A§e Omar H$a MwH$m Xr JB© AVEd land was paid to Govt of India by ImamKmo‹S>m (JwOamV) H$s ^y{_ H$ånZr H$s h¡& issuing the shares at the time of formation of company

(ii) Ed§ (iii) VWm{n {h_mMb àXoe gaH$ma Ho$ amOñd [aH$mS>© (ii) & (iii) Further the action for correction in go _ÊS>r BH$mB© H$s ^y{_ go gå~{YV g§emoYZ Ho$ {bE the revenue record of Govt of H$m`©dmhr à{H«$`mYrZ h¡& Himachal Pradesh has already been taken and is under process for land at Mandi unit.

(iv) am_ZJa H$s ^y{_ Ho$ joÌ Ho$ gå~ÝY _| AÝVa H$ånZr (iv) The difference in area at Ramnagar Ûmam 5.5.1994 H$mo ^y{_ H$mo aobdo H$mo XoZo Ho$ H$maU unit is due to handing over the land h¡& to Railway by the company on 5-5- 1994.

22.2.1.4 Am§V[aH$ {dÎmr` {Z`§ÌU na _`m©{XV am` H$m 22.2.1.4 The reply to the Qualified Opinion Odm~ {ZåZ àH$ma h¡… on Internal financial Controls is as under: ñWmB© n[agån{Îm`m| Ed§ ñH§$Y Ho$ ^m¡{VH$ gË`mnZ H$m The work of physical verification of H$m`© MmQ>©S>© boImH$ma g§ñWm Ûmam Mmby {dÎmr` df© _| Assets and inventory will be H$a {bE OmEJm& conduct by the CA Firm during the current financial year. 22.2.2 d¡Ym{ZH$ A§H$jH$m| Ûmam {dÎmr` df© 2017-18 Ho$ 22.2.2 The Statutory Auditors has given a {bE H$ånZr Ed§ BgH$s ghm`H$ H$ånZr gm§^a qualified report on Consolidated gmëQ²>g {b{_Q>oS> Ho$ g_o{H$V {dÎmr` {ddaU na Financial Statement of the company _`m©{XV [anmoQ>© àñVwV H$s JB©& CZHo$ Ûmam and its subsidiary company, "_hËdnyU© _X' Ho$ AÝVJ©V {dÎmr` {ddaU H$s Sambhar Salts Limited for the {Q>ßnUr g§. 1.7 Ed§ 5 VWm Am§V[aH$ {Z`§ÌU na financial year 2017-18, has drawn attention under “Emphasis Matter” _`m©{XV am` {dMma ì`ŠV {H$E JE& BgHo$ A{V[aŠV regarding Note No. 1.7 and 5 of gm§^a gmëQ> {b{_Q>o‹S> ghm`H$ H$ånZr Ho$ d¡Ym{ZH$ financial statement and qualified A§Ho$jH$m| Ûmam "AÝ` am`' grEAmaAmo VWm Am§V[aH$ opinion on Internal Financial {Z`§ÌU na _`m©{XV am` H$s Amoa Ü`mZ AmH${f©V Controls.In addition to the statutory {H$`m J`m& auditor of subsidiarycompany, Sambhar Salts Limited have drawn attention under “other opinion”, CARO and qualified opinion on internalfinancial Controls. 34 22.2.2.1 {dÎmr` {ddaU na _`m©{XV am` H$m Odm~ {ZåZ 22.2.2.1 The reply to Qualified Opinion on àH$ma h¡… financial statement is as under: Amdí`H$ àmdYmZ `{X Ano{jV hmo, {dÎmr` df© The necessary provision if required 2018-19 _| narjU Ed§ _m_bo _| {d{Y {d^mJ go will be made in financial year 2018- am` boH$a {H$`m OmEJm& 19 after examination and taking the advice of legal department in this matter.

22.2.2.2 {dÎmr` {ddaU Ho$ _hËdnyU© _X H$m Odm~ {ZåZ 22.2.2.2 The reply to the Emphasis Matter on àH$ma h¡… financial statement is as under: H$ånZr H$s {dÎmr` pñW{V H$mo XoIVo hþE H$ånZr H$s Company has already taken the CnXmZ Ho$ {déÕ ~H$m`m _m§J H$mo MaU~Õ VarHo$ go action to invest the outstanding {Zdof H$aZo H$s H$m`©dmhr H$s Om MwH$s h¡& demand against gratuity in phase manner after reviewing the financial position of company.

22.2.2.3 Am§V[aH$ {dÎmr` {Z`§ÌU na _`m©{XV am` H$m 22.2.2.3 The reply to the qualified opinion on Odm~ {ZåZ àH$ma h¡… Internal Financial Control is as under: ñWmB© n[agån{Îm`m| Ed§ ñH§$Y Ho$ ^m¡{VH$ gË`mnZ H$m The work of physical verification of H$m`© MmQ>©S>© boImH$ma g§ñWm Ûmam Mmby {dÎmr` df© _| Assets and inventory will be H$a {b`m OmEJm& conduct by the CA Firm during the current financial year.

22.2.2.4 ghm`H$ H$ånZr Ho$ {dÎmr` {ddaUm| na AÝ` _V 22.2.2.4 The reply to the Other Opinion of H$m Odm~ {ZåZ àH$ma h¡ … financial statement of subsidiary company is as under:

H$ånZr H$s {dÎmr` pñW{V H$mo XoIVo hþE H$ånZr H$s Company has already taken the CnXmZ Ho$ {déÕ ~H$m`m _m§J H$mo MaU~Õ VarHo$ go action to invest the outstanding {Zdof H$aZo H$s H$m`©dmhr H$s Om MwH$s h¡& demand against gratuity in phase manner after reviewing the financial position of company.

35 22.2.2.5 H$ånZr (Am°{S>Q> [anmoQ>©) AmXoe 2016 _| ì`ŠV 22.2.2.5 The reply to observation made in {H$E JE {dMmam| H$m Odm~ {ZåZ àH$ma h¡… Companies (Auditor Report) Order 2016 of subsidiary company is as under: 1(~) ñWmB© n[agån{Îm`m| Ho$ ^m¡{VH$ gË`mnZ H$m H$m`© 1 (b) The work of physical verification of MmQ>©S>© g§ñWm Ûmam Mmby df© _| {H$`m OmEJm& Assets will be conduct by the CA Firm during the current financial year. 7(~) g§{MV hm{Z`m| Ho$ H$maU {hÝXþñVmZ gmëQ²>g {b. 7 (b) It is not possible to repay the loan YmaH$ H$ånZr H$mo G$U Ed§ ~H$m`m ã`mO H$m and outstanding interest to holding nwZ^w©JVmZ {H$`m OmZm g§^d Zht h¡& company Hindustan Salts Ltd due to accumulated losses.

22.2.2.6 ghm`H$ H$ånZr Ho$ Am§V[aH$ {dÎmr` {Z`§ÌU na 22.2.2.6 The reply to the qualified opinion on _`m©{XV am` H$m Odm~… Internal Financial Control of subsidiary company is as under:

ñWmB© n[agån[Îm`m| Ed§ ñH§$Y Ho$ ^m¡{VH$ gË`mnZ H$m The work of physical verification of H$m`© MmQ>©S>© boImH$ma g§ñWm Ûmam Mmby df© _| H$a Assets and inventory will be {b`m OmEJm& conduct by the CA Firm during the current financial year. 22.3 {Z`§ÌH$ Ed§ _hmboIm narjH$ H$s {Q>ßn{U`m§… 22.3 C O M M E N T S O F T H E C O M P T R O L L E R & A U D I T O R GENERAL

{dÎmr` df© 2017-18 Ho$ H$ånZr Ho$ {dÎmr` {ddaUm| Nil Comments of the Comptroller & na ^maV Ho$ {Z`§ÌH$ Ed§ _hmboIm narjH$ H$s eyÝ` Auditor General of India received on {Q>ßn{U`m§ àmá hþB©& financial statements of the company for the financial year 2017-18. 22.4 H$manm}aoQ> JdZ]g… 22.4 CORPORATE GOVERNANCE 22.4.1 H$manm}aoQ> JdZ]g H$s eVm} H$s AZwnmbZm H$m 22.4.1 Certificate on Compliance with à_mU-nÌ, {dÎmr` df© 2017-18 dm{f©H$ Condition of Corporate Governance for à{VdoXZ _| H$ht Amoa {X`m J`m h¡& the financial year 2017-18 is placed elsewhere in the Annual Report. 22.4.2 df© Ho$ Xm¡amZ {ZXoeH$ _ÊS>b H$s Am`mo{OV 22.4.2 Information on number of meetings of ~¡R>H$m| H$s g§»`m, {ZXoeH$ _§S>b H$s the board held during the year, g{_{V`m| H$m JR>Z Ed§ BZH$s df© Ho$ Xm¡amZ composition of committees of the board

36 Am`mo{OV ~¡R>H$m|, {ZXoeH$m| H$s à{ejU and its meetings held during the year, Zr{V go g§~§{YV gyMZm H$m°nm}aoQ> Jd©Z]g H$s etc., are contained in Report on Corporate [anmoQ>© _| gpå_{bV h¡ Omo dm{f©H$ à{VdoXZ Governance which forms part of the H$o ^mJ Ho$ ê$n _| AZwÀN>oX-1 Ho$ ê$n _| Annual Report is annexed herewith as g§b½Z h¡& Annexure I.

22.4.3 H$m°nm}aoQ> JdZ]g à_mU-nÌ H$s {Q>ßn{U`m| 22.4.3 Management reply to observations of na à~§YZ H$m Odm~… Corporate Governance Certificate {dÎmr` df© 2017-18 Ho$ {bE H$m°nm}aoQ> The reply to the observations made JdZ]g à_mU-nÌ na H$s JB© {Q>ßn{U`m| H$m Corporate Governance Certificate for the Odm~ {ZåZ àH$ma h¡…- financial year 2017-18 is as under: i {ZXoeH$ _ÊS>b Ho$ JR>Z H$s eV] : bmoH$ i. The conditions of composition of the CÚ_ {d^mJ Ûmam Omar Ho$ÝÐr` gmd©O{ZH$ Board: As per para 3.1.3 of the Guidelines joÌ CnH«$_ Ho$ {bE H$m°nm}aoQ> JdZ]g H$s _mJ© on Corporate Governance for CPSEs {ZX}{eH$m Ho$ n¡am 3.1.3 Ho$ AZwgma issued by Department of public gaH$ma/AÝ` grnrEgB© Ûmam {Z`wŠV enterprises, the number of Nominee D i r e c t o r s a p p o i n t e d b y _ZmoZrV {ZXoeH$m| H$s A{YH$V_ g§»`m 2 Government/other CPSEs shall be à{V~§{YV hmoZr Mm{hE& `Ú{n {hÝXþñVmZ restricted to a maximum of two, however gm°ëQ²>g {b{_Q>oS> Ho$ _m_bo _| _ZmoZrV in case of HSL we have three nominee {ZXoeH$ VrZ h¢& gaH$mar H$ånZr hmoZo go directors. Being Government Company H$ånZr Ho$ {ZXoeH$ _ÊS>b _| {ZXoeH$ H$s the power to appoint directors on the {Z`wpŠV Ho$ A{YH$ma ^maV Ho$ amîQ´>n{V H$mo board of the company vests with h¡& President of India. ii ñdV§Ì {ZXoeH$m| H$s {Z`wpŠV Ed§ Cggo ii Appointment of Independent Directors & g§~§{YV eV}… H$ånZr A{Y{Z`_, 2013 conditions related thereto: As per Ho$ AZwgma ñdV§Ì {ZXoeH$ Ho$ àmdYmZ Companies Act, 2013 the provisions of H$ånZr na bmJy Zht h¡& `Ú{n bmoH$ CÚ_ Independent Directors are not applicable {d^mJ H$s _mJ©X{e©H$m Ho$ AZwgma {ZXoeH$ on the company, however as per DPE _ÊS>b _| EH$ {VhmB© AWm©V² Xmo ñdV§Ì Guidelines the company is required to {ZXoeH$ Ano{jV h¢& gaH$mar H$ånZr hmoZo have one-third i.e. two independent go H$ånZr Ho$ {ZXoeH$ _ÊS>b _| {ZXoeH$m| directors on board. Being Government H$s {Z`wpŠV Ho$ A{YH$ma Ed§ H$ånZr Ûmam Company the power to appoint director H$s JB© àmW©Zm na àemg{ZH$ _§Ìmb` Ûmam on the board of the company vests with 27.4.2016 H$mo EH$ ñdV§Ì {ZXoeH$ President of India and based on request {Z`wŠV {H$`m J`m& made by the company, administrative

37 ministry has appointed one Independent directors w.e.f. 27.04.2016. iii {ZXoeH$ _ÊS>b Ûmam Omo{I_ Zr{V H$r iii. Periodically review of risk management Amd{YH$ g_rjm… H$ånZr Ho$ {ZXoeH$ policy by Board:The company board has _ÊS>b Ûmam Omo{I_ Zr{V H$m AZw_moXZ approved Risk Management Policy. As {H$`m J`m& H$ånZr A{Y{Z`_ 2013 H$s per Section 134 (3) n of Companies Act, Ymam 134 (3) _| H$ånZr Ho$ Omo{I_ à~ÝY 2013 requirement, Board Report of the g{hV {ZXoeH$ _ÊS>b H$s [anmoQ>© Ano{jV company contains a statement on Risk h¡& Management of the company. iv {ZXoeH$ _ÊS>b Ho$ ZE gXñ`m| Ho$ {bE iv. Training programme for its new Board à{ejU H$m`©H«$_… H$ånZr H$s {dÎmr` Members: Due to financial constraints of pñW{V Ho$ H$maU {ZXoeH$ _ÊS>b Ho$ ZE the company, training programme for gXñ`m| Ho$ à{ejU H$m`©H«$_ H$mo dV©_mZ _| new board members are on hold amoH$ {X`m J`m& presently. v. A§Ho$jU g{_{V H$s ~¡R>H$ Ed§ g§~§{YV eV]… v. Meeting of Audit Committee & A§Ho$jU g{_{V Ho$ gXñ`m| H$s AZwnbãYVm conditions related thereto:Due to non- Ho$ H$maU H$moa_ H$s Anojm _| ~¡R>H$ Zht hmo availability members of audit committee, gH$s& the meeting could not be held for want of proper quorum. vi. nm[al{_H$ g{_{V H$m JR>Z Z hmoZm… vi. Non-Constitution of remuneration H$ånZr A{Y{Z`_, 2013 H$s Ymam 178 Committee: Pursuant to Section 178 of the gn{R>V H$ånZrO (_ÊS>b H$s ~¡R>H$ Ed§ Companies Act, 2013 read with Rule 6 of BgHo$ A{YH$ma) {Z`_ 2014 Ho$ {Z`_ 6 the Companies (Meeting of Board and its Ho$ AZwgma Zm{_ZoeZ Ed§ nm[al{_H$ powers) Rule, 2014 the provision g{_{V H$m JR>Z Ano{jV Zht h¡& `Ú{n regarding constitution of Nomination bmoH$ CÚ_ {d^mJ, ^mar CÚmoJ Ed§ bmoH$ and Remuneration Committee is not CÚ_ _§Ìmb` Ûmam grnrEgB©O Ho$ H$mnm}aoQ> applicable on the company. However, JdZ]g na Omar _mJ©X{e©H$m {XZm§H$ under the Guidelines on Corporate 14.5.2010 Ho$ AÝVJ©V _ÊS>b Ûmam Governance of CPSEs issued by {XZm§H$ 30.8.10 H$mo nm[al{_H$ g{_{V Department of Public Enterprises, H$m JR>Z H$a {X`m J`m& H$ånZr Ho$ H$_©Mmar Ministry of Heavy Industries and Public AmB©S>rE 1997 Ed§ grS>rE 1996 Ho$ Enterprises dated 14.05.2010 the board doVZ_mZ Ho$ AÝVJ©V AmVo h¢ Bgr{bE h a d c o n s t i t u t e d R e m u n e r a t i o n grnrEgB©O {ZînmXZ doVZ Ho$ {bE nmÌ Committee on 30.08.2010. Since the pay Zht h¡ Ed§ dm{f©H$ ~moZg, n[adV©Zerb scale of the employees of the company is doVZ nyb {ZpíMV H$aZo Ho$ {bE nm[al{_H$ governed by IDA 1997 and CDA 1996, g{_{V Ano{jV Zht h¡ VWm BgHo$ H$m`©H$mar thus CPSE is not eligible for Performance 38 Ed§ J¡a `y{Z`Z n`©dojH$m| H$mo {ZYm©[aV gr_m Related Pay and so remuneration _| {dVaU Ano{jV Zht h¡& Bg{bE Committee is not required to decide the nm[al{_H$ g{_{V dV©_mZ _| {ZpîH«$` h¡& annual bonus/variable pay pool and policy for its distribution across the e x e c u t i v e s a n d n o n - u n i o n i z e d supervisors, within the prescribed limits. So, the Remuneration committee is currently defunct.

22.5 à~§YZ MMm© Ed§ {díbofU : 22.5 MANAGEMENT DISCUSSION AND ANALYSIS:

(i) CÚmoJ g§aMZm Ed§ {dH$mg… (i) Industry Structure and Developments:

df© Ho$ Xm¡amZ CËnmXZ _| d¥{Õ, _¡½Zr{e`_ During the year, the turnover has increased by 16% due to additional ŠbmoamBS> Ho$ CËnmXZ ewê$ hmoZo go Hw$b contribution of revenue due to {~H«$s _| 16% H$s d¥{Õ ahr& CËnmXZ H$m commencement of production of _yë` ` 581.64 bmI go ~‹T>H$a magnesium chloride. The value of ` 687.54 bmI hþAm& production has increased to ` 687.54 Lakhs from ` 581.64 Lakhs.

(ii) epŠV Ed§ Xþ~©bVm : H$ånZr H$s ImamKmo‹S>m (ii) Strength and Weakness: The Company _| 23,000 EH$‹S> ^y{_ h¡ `Ú{n CËnmXZ is having about 23000 acres of land at H$s D±$Mr bmJV, nwamZr CËnmXZ Kharaghoda, however high cost of H$m`©àUmbr Ed§ g§aMZm nyU© j_Vm Ho$ p r o d u c t i o n , o l d p r o d u c t i o n Cn`moJ _| ~mYH$ h¡& methodology and infrastructure are hindrance for utilization of its complete potential.

(iii) Adga Ed§ ÑpîQ>H$moU : H$ånZr df© (iii) Opportunities and Outlook: During 2018-19 Ho$ Xm¡amZ ImamKmo‹S>m, JwOamV 2018-19, Company is pursuing to _| Z_H$ n[aîH$aU embm bJmZo Ed§ BgH$s complete the installation of Salt Refinery j_Vm 1,00,000 _¡. Q>Z dm{f©H$ H$aZo Ho$ of 100000 MT annual capacity at {bE H$m`©dmhr H$a ahr h¡ Ed§ {dÎmr` df© Kharaghoda, Gujarat and commission the same. Company will commence large 2018-19 _| H$ånZr I{ZO Z_H$ H$m scale commercial production of rock salt d¥hX ñVa na dm{UpÁ`H$ CËnmXZ H$aoJr& during the FY 2018-19. Company will H$ånZr {dÎmr` df© 2018-19 Ho$ Xm¡amZ expand its existing magnesium chloride I{ZO Z_H$ H$m CËnmXZ àma§^ H$a XoJr& production capacity to 35,500 MT. H$ånZr H$s _¡½Zr{e`_ ŠbmoamBS> CËnmXZ

39 j_Vm H$mo 35,00 _¡ Q>Z VH$ ~‹T>mZo H$s `moOZm h¡& (iv) CËnmXZ AZwgma AWdm MaU~Õ (iv) Segment wise or product wise {ZînmXZ : ~«mo_rZ Ho$ CËnmXZ _| 10% H$s performance: The production of H$_r hþB©& df© Ho$ Xm¡amZ I{ZO Z_H$ H$m Bromine has reduced by 10%. The CËnmXZ 47 _¡. Q>Z ahm& _¡½Zr{e`_ production of Rock Salt was 47 MT during the year. The magnesium chloride ŠbmoamBS> H$m amOñd _| 17.97% has contributes about 17.97% in revenue. `moJXmZ hþAm& (v) Omo{I_ à~ÝY : H$ånZr Ho$ ì`mnma H$m (v) Risks Management: The Company’s _w»` ê$n go à_wI joÌ Z_H$ Ed§ ~«mo_rZ Ed§ core area of business is mainly related to _¡½Zr{e`_ ŠbmoamBS> H$m CËnmXZ Ed§ trading and production of salt, bromine ì`mnma h¡& Omo{I_ _| _w»` ê$n go ~mOma and Magnesium Chloride. The risks Ed§ _m¡g_ H$s pñW{V gpå_{bV h¡& involved are predominantly market and weather conditions.

(vi) Am§V[aH$ {Z`§ÌU àUmbr Ed§ CgH$s (vi) Internal Control System and their n`m©áVm : H$ånZr Ûmam Am§V[aH$ A§Ho$jU Adequacy: The Company has appointed J{V{d{Y`m| Ho$ {bE EH$ MmQ>©S>© boImH$ma a firm of Chartered Accountants as g§ñWm H$mo AmÝV[aH$ A§Ho$jH$ Ho$ ê$n _| Internal Auditor to carry out the Internal Audit activities. Internal Audit process is {Z`wŠV {H$`m h¡& Am§V[aH$ A§Ho$jU à{H«$`m designed to review the adequacy of H$mo H$ånZr Ho$ g^r à_wI joÌm| _| AmÝV[aH$ internal control checks in the systems {Z`§ÌU Om§M H$s n`m©áVm H$s g_rjm Ho$ covering all significant area of the {bE ~Zm`m J`m h¡& H$ånZr H$s EH$ A§Ho$jU company. Company has an audit g{_{V h¡ Omo {H$ Am§V[aH$ A§Ho$jU H$s committee which also reviews the report [anmoQ>© H$s g_rjm H$aVr h¡& of internal auditors.

(vii) àMmbZ {ZînmXZ Ho$ g§~§Y _| {dÎmr` (vii) Discussion on financial performance {ZînmXZ na MMm© : H$ånZr H$mo JV df© Ho$ w i t h r e s p e c t t o o p e r a t i o n a l performance: `40.42 bmI H$s VwbZm _| Mmby df© Ho$ The profit of the company is ` 183.55 lakhs during current year Xm¡amZ ` 183.55 bmI H$ånZr H$m bm^ compared to ` 40.42 lakhs in the previous hþAm& year.

(viii) H$mnm}aoQ> gm_m{OH$ Xm{`Ëd : H$ånZr, (viii) Corporate Social Responsibility:The H$ånZr A{Y{Z`_ 2013 H$s Ymam 135 Company does not come under purview H$s n[a{Y _| Zht AmVr h¡& `Ú{n H$ånZr of Section 135 of the Companies Act, H$m ImamKmo‹S>m _| g^r l{_H$m| Ed§ Am_ 2013. However, the Company is OZVm Ho$ {bE nyU© gpÁOV AñnVmb Mbm maintaining a well-equipped hospital for 40 ahr h¡& all workers and general public at Kharaghoda.

22.6 g§~§{YV njH$mam| Ho$ gmW gånH©$ Ed§ ì`dhma… 22.6 CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:

g_rjmYrZ Ad{Y _| H$ånZr Ûmam {H$gr ^r g§~§{YV During the period under review, the njH$ma Ho$ gmW _hËdnyU© ì`dhma Zht {H$`m J`m& Company had not entered into any H$ånZr Ho$ _w»` g§~§{YV njH$mam| _| go g§~§{YV material transaction with any of its ì`dhma gm_mÝ`V`m BgH$s ghm`H$ H$ånZr Ho$ gmW related parties. The Company's major h¡, Omo {H$ EH$ gaH$mar H$ånZr h¡& g§~§{YV njH$mam| related party transactions are generally Ho$ g^r ì`dhma, ì`mnma Ho$ gm_mÝ` {H«$`m-H$bmnm| with its subsidiary, which is also a government company. All related party _| Wo Am¡a Am_©-boÝW AmYma na {ZnQ>mB© JB© Ed§ `h transactions were in the ordinary course {dÎmr` {ddaU H$m ^mJ h¡ Omo dm{f©H$ à{VdoXZ _| of business and were negotiated on an n¥WH$ ^mJ Ho$ ê$n _| g§b½Z h¡& `h H$ånZr Ho$ {hV H$mo arm's length basis and forms part of AmJo ~‹T>mZo Ho$ Ame` go {H$E JE h¢& VX²Zwgma ànÌ financial statement, attached as a EAmogr-2 _| H$ånZr A{Y{Z`_, 2013 H$s Ymam separate section of this Annual Report. 134(3)(EM) Ho$ AÝVJ©V g§~§{YV njH$mam| Ho$ They were intended to further the ì`dhma H$m àH$Q>rH$aU bmJy Zht h¡& Company's interests. Accordingly, the disclosure of Related Party Transactions as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC-2 is not applicable.

22.7 H$ånZr Ho$ ^mdr {H«$`mH$bmnm| Ed§ dV©_mZ pñW{V Ho$ 22.7 SIGNIFICANT AND MATERIAL g§~§Y _| {Z`m_H$m|/ Ý`m`mb`m|/ Ý`m`m{YH$aUm| O R D E R S P A S S E D B Y Ûmam nm[aV _hËdnyU© Ed§ Amdí`H$ AmXoe : REGULATORS/COURTS/TRIBUNAL S I M P A C T I N G T H E G O I N G C O N C E R N S T A T U S A N D COMPANY’S OPERATIONS IN FUTURE:

H$ånZr Ho$ ^mdr {H«$`mH$bmnm| Ed§ dV©_mZ pñW{V go There is no significant and material g§~§{YV {Z`m_H$mo§/ Ý`m`mb`m|/ A{YH$aUm| Ûmam orders passed by regulators/courts/ nm[aV H$moB© AmXoe Zht h¡& tribunals impacting the going concern status and company’s operations in future. 22.8 Am§V[aH$ {Z`§ÌU nÕ{V H$s n`m©áVm 22.8 A D E Q U A C Y O F I N T E R N A L FINANCIAL CONTROLS SYSTEM:

41 {dÎmr` à{VdoXZ H$s {dídgZr`Vm, n[aMmbZ Ed§ An internal control system is formulated aUZr{VH$ bú`m| H$s CnbpãY H$s g_`mZwgma in the Company to ensure reliability of OmZH$mar, Zr{V`m| H$s AZwnmbZm, à{H«$`m, {Z`_ Ed§ financial reporting, timely feedback on {d{Z`_, gån{Îm Ed§ g§gmYZm| Ho$ Am{W©H$ Ed§ Xj the achievement of operational and Cn`moJ H$s gwajm H$mo gw{ZpíMV H$aZo Ho$ {bE H$ånZr strategic goals, compliance with policies, _| Am§V[aH$ {Z`§ÌU nÕ{V H$m JR>Z {H$`m hþAm h¡& procedures, rules and regulations, safeguarding of assets and economical and efficient use of resources. AmÝV[aH$ A§Ho$jH$ Omo {H$ EH$ MmQ>©S>© boImH$ma \$_© The internal auditor which is a Chartered h¡, H$mo H$ånZr Ûmam {Z`wŠV {H$`m J`m h¡ Omo Am§V[aH$ Accountant firm appointed by the {Z`§ÌU H$s à^mderbVm H$m {ZaÝVa {ZX}eZ H$aVr Company continuously monitor the h¡& Am§V[aH$ A§Ho$jU H$s J{V{d{Y`m| H$m joÌ effectiveness of internal controls. The Am§V[aH$ A§Ho$jH$m| H$s {Z`wpŠV AmXoe _| Cpëb{IV scope of internal audit activity is well defined in the letter of appointment of h¡& A§Ho$jU g{_{V H$s ~¡R>H$ {ZaÝVa hþB© VWm internal auditors. The audit committee Am§V[aH$ A§Ho$jH$ Ûmam àñVwV Am§V[aH$ A§Ho$jU H$s met regularly and reviewed the reports of [anmoQ>© H$s g_rjm H$s JB©& internal audit submitted by the internal auditor. 22.9 H$ånZr A{Y{Z`_, 2013 H$s Ymam 186 Ho$ 22.9 P A R T I C U L A R S O F L O A N , A§VJ©V, G$U, Jma§Q>r Ed§ {Zdoe H$m {ddaU GUARANTEES AND INVESTMENTS U N D E R S E C T I O N 1 8 6 O F COMPANIES ACT, 2013

H$ånZr A{Y{Z`_, 2013 H$s Ymam 186 Ho$ A§VJ©V Details of Loan, Guarantees and dm§{N>V G$U, Jma§Q>r Ed§ {Zdoe H$m {ddaU, {dÎmr` investment as required under section 186 {ddaU H$m ^mJ h¡ VWm Bg dm{f©H$ à{VdoXZ _| n¥WH$ of Companies Act, 2013 forms part of ^mJ Ho$ ê$n _| g§b½Z h¡& financial statement, attached as a separate section of this Annual Report. 22.10 H$m`©ñWb na _{hbmAm| Ho$ `m¡Z CËnr‹S>Z 22.10 DISCLOSURES UNDER SEXUAL (amoH$Wm_, {ZfoY Ed§ {ZdmaU) A{Y{Z`_, 2013 HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, Ho$ AÝVJ©V àH$Q>rH$aU PROHIBITION &REDRESSAL) ACT, 2013.

H$ånZr Ûmam H$m`©ñWb na _{hbmAm| Ho$ `m¡Z The Company has constituted an Internal CËnr‹S>Z (amoH$Wm_, {ZfoY Ed§ {ZdmaU) A{Y{Z`_, Complaints Committee to prevent and 2013 Ho$ AÝVJ©V H$m`©ñWb na {H$gr àH$ma Ho$ prohibit from any sexual harassment at `m¡Z CËnr‹S>Z H$mo amoH$Zo d {ZfoY H$aZo VWm _{hbm workplace and redress any such

42 H$_©Mm[a`m| H$s Bg àH$ma H$s {eH$m`Vm| H$m g_mYmZ grievance of woman employees as H$aZo Ho$ {bE Am§V[aH$ {eH$m`V g{_{V H$m JR>Z required under Sexual Harassment of {H$`m J`m h¡& H$boÊS>a df© 2017 Ho$ Xm¡amZ `m¡Z Women at Workplace (Prevention, CËnr‹S>Z H$s àmá {eH$m`V eyÝ` VWm df© Ho$ Xm¡amZ Prohibition and Redressal) Act, 2013. Nil {ZnQ>mB© JB© {eH$m`V eyÝ` ahr& complaints of sexual harassment received during the calendar year 2017 and NIL complaints disposed- off during the year. 22.11 dm{f©H$ {ddaUr H$m gma : 22.11 EXTRACT OF ANNUAL RETURN: H$ånZr (à~§YZ Ed§ àemgZ) {Z`_, 2014 Ho$ Extract of Annual Return as provided AÝVJ©V {Z`_ 12 Ho$ AÝVJ©V dm{f©H$ {ddaUr H$m under Rule 12 of the company gma ànÌ E_OrQ>r-9 _| BgHo$ gmW AZwÀN>oX-&&II (Management & Administration) Rule gb§½Z h¡& 2014) is annexed here with as Annexure II to this report in MGT 9 Form. 22.12 H$ånZr A{Y{Z`_, 2013 H$s Ymam 129 Ho$ 22.12 PARTICULARS OF INFORMATION A§VJ©V ghm`H$ H$ånZr Ho$ {dÎmr` {ddaU Ho$ _w»` UNDER SECTION 129 OF THE {~ÝXþAm| H$m gyMZm H$m {ddaU : C O M P A N I E S A C T , 2 0 1 3 RELATINGTO SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARY COMPANIES:

H$ånZr A{Y{Z`_, 2013 H$s Ymam 129 (3) H$s The particulars of information under gyMZmE§, Omo {H$ ghm`H$ H$ånZr Ho$ {dÎmr` {ddaU proviso to Section 129(3) of the H$s _w»` {deofVmAm| go gå~§{YV h¡, H$mo H$ånZr Companies Act, 2013 relating to ‘Salient (boIm) {Z`_, 2014 Ho$ {Z`_ 5 Ho$ AZwgaU _| features of the Financial Statement of \$m_© EAmogr-1 _| {ddaUm| Ho$ gmW g§b½Z h¡& Subsidiary companies’ has been attached ghm`H$ H$ånZr Ho$ dm{f©H$ boIo dm{f©H$ à{VdoXZ _| with the Financial Statements of the company in Form AOC-1, in pursuance AbJ go àñVwV h¡& to Rule 5 of the Companies (Accounts) Rules, 2014. The Annual Accounts of the subsidiary company is placed elsewhere in the Annual Report. 23.13 H$ånZr A{Y{Z`_, 2013 H$s Ymam 134 22.13 INFORMATION UNDER SECTION (3)(EZ) Ho$ AÝVJ©V H$ånZr H$s Omo{I_ à~§Y 134(3)(n) OF THE COMPANIES ACT, Zr{V Ho$ {H«$`mÝd`Z Ed§ {dH$mg go g§~§{YV gyMZm 2013 CONCERNING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY OF THE COMPANY:

43 H$ånZr H$s CnH«$_ Omo{I_ à~ÝY Zr{V _ÊS>b Ûmam The Risk Management Policy of the AZw_mo{XV hmo MwH$s h¡ A{YgyMZm Ho$ Cnam§V$ Bgo bmJy company has approved by the board and {H$`m Om gHo$Jm& `Ú{n `hm§ H$ånZr Ho$ ApñVËd H$mo the same shall be implemented after à^m{dV H$aZo dmbo Omo{I_ Ho$ H$moB© VËd Zht h¡& notification. There are, however, no elements of risk threatening the company’s existence. 22.14 df© Ho$ Xm¡amZ H$ånZr _| H$moB© ^r H$_©Mmar 22.14 No employee in the company was ` 8,50,000 à{V _mh `m ` 10,200,00 à{V drawing more than ` 850,000/- per df© go A{YH$ Amh[aV Zht H$a ahm Wm& month or ` 10,200,000/- per annum during the year.

22.15 ñdV§Ì {ZXoeH$m| Ûmam H$s JB© KmofUm na H$WZ… 22.15 STATEMENT ON DECLARATION G I V E N B Y I N D E P E N D E N T DIRECTORS

H$ånZr A{Y{Z`_, 2013 Ho$ VhV H$ånZr _| The company is not required to have Amdí`H$ g§»`m _| ñdV§Ì {ZXoeH$ aIZm Ano{jV requisite number of independent Zht h¡& `Ú{n bmoH$ CÚ_ {d^mJ H$s H$m°nm}aoQ> JdZ]g directors on the board as per the _mJ©X{e©H$m {XZm§H$ 14.5.2010 Ho$ AÝVJ©V H$ånZr Companies Act, 2013, however under the Ho$ {ZXoeH$ _ÊS>b _| ñdV§Ì {ZXoeH$ hmoZo Mm{hE Am¡a Guidelines of Corporate Governance of VX²Zwgma H$ånZr Ûmam àemg{ZH$ _§Ìmb` Ûmam 27- DPE dated 14.05.2010 company should have independent directors on board and 4-2016 H$mo _ÊS>b _o§ EH$ ñdV§Ì {ZXoeH$ {Z`wŠV accordingly the administrative ministry H$a {X`m J`m h¡& ñdV§Ì {ZXoeH$ Ûmam ñdV§ÌVm H$s has appointed one Independent Director KmofUm Xr JB© h¡& on 27.04.2016. The Independent Director has given declaration of Independence.

22.16 _mBH«$mo EÊS> ñ_mb EÝQ>aàmB©OoO go 2017-18 Ho$ 22.16 Procurement made from Micro and Xm¡amZ H$s JB© àm{á`m± Small Enterprises during 2017-18

gaH$ma Ûmam _mBH«$mo ñ_mb EÊS> _r{S>`_ Public Procurement Policy for Micro and EÝQ>aàmBOoO S>dbn_oÝQ> A[Y{Z`_ 2006 Ho$ Small Enterprises (MSEs) was notified by AÝVJ©V _mBH«$mo EÊS> ñ_mb EÝQ>aàmBOoO the Government under the Micro, Small (E_EgB©O) Ho$ {b`o gmd©O{ZH$ àmoŠ`moa_¡ÝQ>> Zr{V and Medium Enterprises Development Kmo{fV H$s JB© {OgHo$ AÝVJ©V g^r Ho$ÝÐr` Act, 2006 which stipulates that 20% of _ÝÌmb`m|/{d^mJmo§/Ho$ÝÐr` gmd©O{ZH$ joÌ Ho$ total annual procurement of goods and services shall be made by all Central CnH«$_m| Ûmam _mBH«$mo EÊS> ñ_mb EÝQ>aàmBOoO Ministries /Departments /CPSUs from (E_EgB©O) go AnZo Hw$b dm{f©H$ _mb AWdm Micro & small Enterprises (MSEs). godmAm| H$s àm[áAm| H$r 20 à{VeV Amny{V© Omo H$r Within this percentage, a sub-total of 4% procurement is to be made from MSEs 44 OmZr h¡, 4% Ho$ Cn`moJ H$s ny{V© AZwgy{MV owned by SC/ST entrepreneurs. The Om{V/OZ Om{V EÝQ>anoÝ`moa go H$s OmZr h¡& df© total value of procurement during the 2017-18 Ho$ Xm¡amZ àm{á`m| H$m Hw$b _yë` 1.57 year 2017-18 is ` 1.57 Cr and out of the H$amo‹S> ahm VWm àm{á`m| Ho$ Hw$b _yë` _| go EH$ total value procured from MSE is ` 0.45 E_EgB© nmQ>u go 0.45 H$amo‹S>> H$s àm{á H$s JB©& Cr. However the party was not SC/ST/ `Ú{n H$moB© ^r nmQ>u AZgw {y MV Om{V/OZOm{V/ women entrepreneur. _{hbm CÚ_r Zht Wr& 23. H$ånZr H$s {dÎmr` pñW{V H$mo à^m{dV H$aZo 23 M A T E R I A L C H A N G E S A N D dmbo _hËdnyU© n[adV©Z Ed§ dMZ~ÕVm `{X H$moB© h¡ C O M M I T M E N T S , I F A N Y , Omo {dÎmr` df© Ho$ AÝV Ho$ Xm¡amZ K{Q>V hþB© Omo AFFECTING THE FINANCIAL POSITION OF THE COMPANY {dÎmr` {ddaU Ed§ à{VdoXZ H$s {XZm§H$ go W H I C H H A V E O C C U R R E D g§~§{YV h¡& BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT:

H$ånZr H$s {dÎmr` pñW{V H$mo à^m{dV H$aZo dmbo No material changes and commitments H$moB© _hËdnyU© n[adV©Z Ed§ dMZ~ÕVm Zht h¡ Omo affecting the financial position of the {dÎmr` df© Ho$ AÝV Ho$ Xm¡amZ K{Q>V hþB© Vmo {dÎmr` company occurred between the end of {ddaU Ed§ à{VdoXZ H$s {XZm§H$ go g§~§{YV h¡& the financial year to which the financial statements relates and the date of this report.

24. {ZXoeH$ _ÊS>b Ho$ à{VdoXZ AWdm {dÎmr` {ddaU 24. V O L U N T A R Y R E V I S I O N O F H$m ñd¡pÀN>H$ nwZarjU FINANCIAL STATEMENTS OR BOARD’S REPORT à~ÝYZ Ûmam {ZXoeH$ _ÊS>b Ho$ à{VdoXZ AWdm The management has not voluntarily {dÎmr` {ddaU H$m H$moB© ñd¡pÀN>H$ nwZarjU Zht {H$`m revised the financial statements or boards J`m& report. 25. {ZXoeH$ _ÊS>b Ho$ gJ§R>Z _| n[adV©Z 25. CHANGE IN COMPOSITION OF BOARD:

(A) lr_Vr g§`wŠVm g_mXma Ho$ ñWmZ na {XZm§H$ (a) Smt. Parveen Gupta, Deputy 14.12.2017 go lr_Vr àdrU Jwám, Cng{Md, Secretary, DHI, GoI was appointed as ^mar CÚmJo , {d^mJ, ^maV gaH$ma, {ZXeo H$ {Z`Šw V& Director w.e.f. 14.12.2017 in place of Smt. Sanyukta Samaddar.

(~) lr Or.Ama. amKdoÝÐ Ho$ ñWmZ na {XZm§H$ (b) Shri Rajeev Kandpal, Director,

45 5.3.2018 go lr amOrd H$mÊS>nmb, {ZXoeH$, DIPP, Government of India was S>rAmB©nrnr, ^maV gaH$ma, {ZXoeH$ {Z`wŠV& appointed as Director w.e.f. 05.03.2018 in place of Shri G. R. Raghavendra.

26. {ZXoeH$m| Ho$ Xm{`Ëd {ddaU 26. DIRECTORS’ RESPONSIBILITY STATEMENT

H$ånZr A{Y{Z`_ 2013 H$s Ymam 134 (3)(gr) As per the requirements of section 134(3) H$s AnojmZwgma AmnHo$ {ZXoeH$ EVX² Ûmam KmofUm (c) of the Companies Act, 2013 your H$aVo h¢ {H$…- directors hereby declare that: (i) 31 _mM©, 2018 H$mo g_má df© Ho$ {bE (i) In the preparation of the Annual dm{f©H$ boIo V¡`ma H$aZo _| dñVwnaH$ Accounts for the financial year ended {dMbZ go g§~§{YV C{MV ñnîQ>rH$aU Ho$ 31st March 2018, the applicable accounting standard have been followed gmW bmJy boIm _mZH$ AnZm`o JE h¢& along with proper explanation relating to material departures;

(ii) {ZXoeH$ Ûmam Eogr boIm Zr{V`m| H$mo M`{ZV (ii) The Directors had selected such {H$`m J`m h¡ Am¡a CÝh| AZwHy$bVm go bmJy Accounting policies and applied them {H$`m J`m h¡ Am¡a {ZU©` d Am§H$bZ {H$`m consistently and made judgements and J`m h¡ Omo C{MV Ed§ {ddoH$g§JV h¡ Omo 31 estimate that are reasonable prudent so _mM©, 2017 Ho$ AÝV VH$ H$ånZr Ho$ H$m`m] as to give a true and fair view of the state of affairs of the company at the end of Am¡a Cg Ad{Y Ho$ H$ånZr Ho$ bm^ AWdm 31st March, 2018 and of the profit and loss hm{Z H$s ghr Ed§ ñnîQ> pñW{V àH$Q> H$aVr of the company for that period. h¡& (iii) {ZXoeH$m| Zo H$ånZr H$s gån{V Ho$ ajmonm` (iii) The Directors had taken proper and Ed§ H$nQ> H$mo amoH$Zo Am¡a AÝ` sufficient care for the maintenance of the A{Z`{_VVmAm| H$m nVm bJmZo Ho$ {bE adequate accounting records in H$ånZr A{Y{Z`_, 2013 Ho$ àmdYmZ Ho$ accordance with the provision of the AZwgma boIm A{^boIm| Ho$ aI-aImd Ho$ Companies Act, 2013 for safeguarding the assets of the company and for {bE C{MV Ed§ n`m©á gmdYmZr ~aVr h¡& preventing and detecting fraud and others irregularities.

(iv) {ZXoeH$m| Zo àM{bV ì`dñWm Ho$ AmYma na (iv) The Directors had prepared the annual dm{f©H$ boIo V¡`ma {H$`o h¢& accounts on a going concern basis.

(v) {ZXoeH$m| Ûmam à^mdr A{Y{Z`_ Ho$ (v) The Directors had devised proper systems to ensure compliance with the

46 àmdYmZm| H$s AZwnmbZm gw{ZpíMV H$aZo Ho$ provisions of applicable laws and that {bE C{MV àUmbr bmJy H$s Omo XjVmnyd©H$ such systems were adequately and g§Mm{bV H$s JB© d n`m©á ahr& operating efficiently. 27. Am^mamopŠV 27. ACKNOWLEDGEMENTS: {ZXoeH$JU, ^maV gaH$ma Ho$ {d{^Þ {d^mJm| Am¡a The Directors wish to place on record _§Ìmb`m| {deof ê$n go ^mar CÚmoJ {d^mJ, Am¡Úmo{JH$ their appreciation of the valuable Zr{V Ed§ g§dY©Z {d^mJ, bmoH$ CÚ_ {d^mJ, {dÎm assistance given by various Departments _§Ìmb`, `moOZm Am`moJ, Z_H$ Am`wŠV Ed§ aobdo and Ministries of the Government of _ÊS>b Am{X Ûmam {Xò Jò A_yë` gh`moJ Ho$ {bò India particularly Department of Heavy Industry, Department of Industrial Am^ma àH$Q> H$aVo h¢& Policies and Promotions, Department of Public Enterprises, Ministry of Finance, P l a n n i n g C o m m i s s i o n , S a l t Commissioner and Railway Board, etc.

{ZXoeH$JU, JwOamV, amOñWmZ, CÎmamIÊS> Am¡a The Director also Acknowledge the {h_mMb àXoe gaH$ma Ho$ {d{^Þ {d^mJm| Ûmam support extended by the various H$ånZr H$s àMmbZ J{V{d{Y`m| Am¡a {dH$mg Departments of the Government of `moOZmAm| _| {H$`o J`o gh`moJ Ho$ {bE Am^mar h¡& Gujarat, Rajasthan, Uttarakhand and Himachal Pradesh, in the Company’s operational activities and development plans.

{ZXoeH$JU H$ånZr Ho$ g^r J«mhH$m| H$mo CZHo$ Ûmam The Directors also express their sincere A{dpÀN>Þ gh`moJ XoZo VWm H$ånZr _| AnZm {dídmg gratitude to all the customer of the ì`ŠV H$aZo Ho$ {b`o hm{X©H$ Am^ma àH$Q> H$aVo h¢& company for their unstinted support and àYmZ {ZXoeH$, dm{UpÁ`H$ boIm narjm Ed§ nXoZ confidence reposed in the company. The gXñ`, A§Ho$jU _ÊS>b-III, gm§{d{YH$ boIm Directors are also thankful to the narjH$m|, Am§V[aH$ boIm narjH$ Ed§ ~¢H$m|, Zr{V Principal Director of Commercial Audit and Ex-officio Member Audit Board-III, Am`moJ Ed§ AÝ` g^r ñQ>oH$ hmoëS>a H$m ^r {ZXoeH$ CZHo$ {ZaÝVa gh`moJ Ho$ {bE YÝ`dmX ì`ŠV H$aVo

47 h¢& Statutory Auditors, Internal Auditors, Bankers, NitiAayogand all other stakeholders for their continued cooperation.

A§V _| _ÊS>b, H$ånZr Ho$ H$_©Mm[a`m| Ho$ à{V In conclusion, the Board places on record ì`pŠVJV Am¡a gm_y{hH$ à`mgm|, dMZ~ÕVm Am¡a its appreciation of the individual and {ZîR>m Ho$ {b`o AnZr hm{X©H$ H¥$VkVm àH$Q> H$aVm h¡& collective efforts, commitment and loyalty of the employees of the Company. [ZXoeH$ _ÊS>b Ho$ {bE For and on behalf of the Ed§ H$s Amoa go Board of Directors

(Eg.nr.~§gb) (S. P. Bansal) AÜ`j Ed§ à~§Y {ZXoeH$ Chairman and Managing Director {ZXoeH$ nhMmZ g§. … 07239609 DIN : 07239609 ñWmZ… O`nwa Place : Jaipur Date : 13.12.2018 {XZm§H$… 13.12.2018

48 AZw~Õ - I Annexure -I H$m°anmoaoQ> JdZ}Ýg na à{VdoXZ REPORT ON CORPORATE GOVERNANCE (A) H$ånZr H$s Xme©{ZH$Vm … 1. Company’s Philosophy: AmnH$s H$ånZr H$m {dídmg h¡ {H$ BgH$s g\$bVm H$mo Your Company believes that for its ~Zmò aIZo Ho$ {bò Bgo AnZo A§eYm[a`m|, J«mhH$m|, sustained success, it must maintain global standards of corporate conduct towards H$_©Mm[a`m| d AÝ` g^r nU©Ym[a`m| Am¡a gm_mÝ` its shareholders, customers, employees, g_mO Ho$ à{V {ZJ_ AmMaU ì`mnH$ ñVa H$m ~Zm`m all other stakeholders and society in OmZm Mm{hò& H$ånZr Zo gXm AÀN>o H$m°anmoaoQ> JdZ}Ýg general. The Company has always na Ho$ÝÐ^yV {H$`m h¡ Omo BgHo$ A§eYm[a`m| Ho$ {bò focused on good corporate governance, bå~r Ad{Y H$m Cn`moJr g¥OZ Ed§ {ZJ_ H$s CÝZ{V which is a key driver of sustainable corporate growth and long-term value ~Zmò aIZo `mo½` _w»` MmbH$ h¡& creation for its shareholders. H$ånZr H$m _mZZm h¡ {H$ H$m°anm}aoQ> JdZ}Ýg Z Ho$db The Company believes that corporate g§VwbZ Am¡a {Z`§ÌU g¥OZ VH$ gr{_V h¡& `h g¥OZ governance is not just limited to creating checks and balances. It is more about H$aZo dmbo g§JR>Z Ho$ {bò H$_©Mm[a`m| Ed§ J«mhH$m| H$s creating organization excellence leading g§Vw{îQ> VWm A§eYm[a`m| Ho$ _hËd H$mo loîR>V_ ê$n go to increasing employee and customer ~‹T>mZo Ho$ {bò A{YH$ h¡& H$m°anmoaoQ> JdZ}Ýg H$m satisfaction and shareholder value. The primary objective of corporate àmW{_H$ CÔoí` g¥OZ H$aZm Am¡a {ZJ_ Ho$ {ddoH$ d governance is to create and adhere to a MoVZm g§ñH¥${V go Ow‹S>o ahZm, nmaX{e©Vm Am¡a corporate culture of conscience and IwbmnZ, j_Vm {dH$mg Am¡a Adgam| H$s nhMmZ Omo consciousness, transparency and openness, to develop capabilities and g¥OZ _hËd Ho$ bú` H$s CËH¥$îQ> godm Ho$ {bò h¡& identify opportunities that best serve the H$ånZr H$mo {dídmg h¡ {H$ Bgo g^r ñVam| na CÚ{_Vm goal of value creation. The Company Am¡a àñ\w${Q>V D$Om© dmX VWm {ZJ_ ÑpîQ> gOJVm believes, it must leverage its human and c a p i t a l r e s o u r c e s t o t r a n s l a t e g¥OZ BgHo$ _mZdr Am¡a ny§Or g§gmYZm| Ho$ Adgam| H$mo opportunities into reality, create dmñV{dH$Vm _| ~XbZo Ho$ {bò geŠV hmoZm Mm{hò& awareness of corporate vision and spark dynamism and entrepreneurship at all levels. CnamoŠV g^r Ý`m` H$m ~moY, gmå`m Am¡a ñdÀN> Above all, corporate governance must H$m`©, {Zînj, ñdm{_Ëd Ho$ ñdrH¥$V Am`m_m| Ho$ balance individual interest with AÝV©JV g§MmbZ Ed§ {ZJ_ bú`m| Ho$ gmW {ZOr {hVm| corporate goals and operate within accepted norms of propriety, equity, fair _| H$m°anmoaoQ> JdZ}Ýg H$mo Mm{hò {H$ g§VwbZ ~Zmò play and a sense of justice. Accountability aIo& Eogo {ZU©` Omo nU©Ym[a`m| _| {dídmg H$m g¥OZ and transparency are key drivers to H$aVo h¢, Eogr ~w{Õ gånÞVm Ed§ {ZU©` boZo _| gwYma improve decision-making and the H$aZo Ho$ {bò {Oå_oXmar Ed§ nmaX{e©Vm EH$ _w»` rationale behind such decisions, which in MmbH$ h¡& turn creates stakeholder confidence. 49 2. {ZXoeH$ _ÊS>b … 2 Board of Directors: 2.1 31.3.2018 H$mo H$ånZr H$m {ZXoeH$ _ÊS>b {ZåZ 2.1 The board of Directors of the company as àH$ma h¡…- on 31.03.2018 are as under: dV©_mZ _| EH$ AÜ`j Ed§ à~ÝY$ {ZXoeH$ g{hV Mma The board consists of four directors {ZXoeH$m| H$m {ZXoeH$ _ÊS>b h¡& g^r {ZXoeH$m| Ho$ including one Chairman & Managing g§{jßV {ddaU {ZåZ àH$ma h¡ …- Director. The brief particulars of all the Directors are given below:

H«$. Zm_ Ed§ nXZm_ {ZXoeH$ OÝ_ {V{W Ed§ `mo½`Vm AÝ` H$ån{Z`m| S. Name Category of Date of Birth Qua- Directorship g§. (lr/lr_Vr) H$s loUr {Z`wpŠV H$s _| {ZXoeH$ No. Directorship & Date of lific- in other {V{W Appointment ation companies 1. g[w aX¨ a nmb ~g§ b, H$m`mË© _H$ 07.07.1963 E_.B.© gm^± a gmëQ>²g 1. Shri S.P. Bansal Functional 07.07.1963 M.E. Sambhar AÜ`j Ed§ {ZXoeH$ 27.05.2015 {b{_Q>So > Chairman & Director 27.05.2015 Salts Ltd. à~ÝY {ZXoeH$ Managing Director* 2. amOrd H$mÊS>nmb A§eH$m{bH$ 27.10.1968 nrEMS>r gm±^a gmëQ²>g 2. Rajeev Kandpal Part time 27.10.1968 Phd Sambhar {ZXoeH$, S>rAmB©nrnr, A{YH$m[aH$ 05.03.2018 {b{_Q>oS>, DIPP, Salt Official 05.03.2018 Salts Ltd. Z_H$ Am`wŠV {ZXoeH$/ Commissioner Direcor/ (A{V[aŠV à^ma) gaH$mar (Additional Goverment Zm{_[V Charge) Nominee

3. àdrU Jáw m -CŠV- 09.12.1962 ñZmÎm- [aMS>g© Z ES§ > H$«y S>g 3. Parveen Gupta Part time 09.12.1962 Post Richardson Cn g{Md, 14.12.2017 H$mÎo ma {b., Zeo Zb Deputy official 14.12.2017 Grad and Cruddas ^mar CÚmoJ {d^mJ, ~mB{gH$b H$mnma} .o Secretary, director/ uate Ltd.,National Am\° $ BpÊS>`m, Deptt. of Government Bicycle Corp AmBE© b, EgEgEb., Heavy Nominee of India, IL, Industry SSL, REIL & AmaBA© mB©Eb Ed§> SIL, EgAmB©Eb 4. gË`oÝÐ Hw$_ma -CŠV- 09.05.1975 ñZmV- gm§^a gmëQ²>g 4. Satyendra Part time 09.05.1975 Post Sambhar {ZXoeH$ (Q>rQ>r) $ 15.12.2015 H$moÎma {b{_Q>oS>& Kumar official 15.12.2015 Grad Salts Ltd. (nrAmoEb) aob Director director/ uate _§Ìmb` (T.T.) Government (POL) Ministry Nominee Of Railway

5. gVre garZ A§eH$m{bH$ J¡a 10.06.1966 E\$grE AmaAmB©Q>r 5. Shri Satish part times 10.06.1966 FCA RITES A{YH$m[aH$ {ZXoeH$ 27.04.2016 B©Eg Sareen Non-official directors 27.04.2016 ñdV§Ì {ZXoeH$ indenpendent directors

2.2 ~¡R>H$ Ed§ CnpñW{V… 2.2 Meeting and Attendance: {dÎmr` df© 2017-18 Ho$ Xm¡amZ {ZXoeH$ _ÊS>b H$s AmR> During the financial year 2017-18, eight (8)~¡R>Ho$§ BgHo$ ~mX d{U©V VmarIm| 25.04.2017, meetings of the Board of Directors were held 22.06.2017, 31.07.2017, 19.09.2017, 16.10.2017, on the dates mentioned hereafter 25.04.2017, 15.12.2017, 27.01.2018, Ed§ 28.03.2018. H$mo hþB©& 22.06.2017, 31.07.2017, 19.09.2017, 16.10.2017, 15.12.2017, 27.01.2018, and 28.03.2018.

50 {ZXoeH$ Š`m JV {ZXoeH$ Ho$ {ZXoeH AÝ` AÝ` _ÊS>b Name of Whether Board Category Other Membership H$m dm{f©H$ g§~§{YV H$s {ZXoeH$ H$s g{_{V Director Attended Meetings of Director of Committee Zm_ gmYmaU H$m`©H$mb Ho$ loUr H$m H$m`© H$s gXñ`Vm Last During Ships of other (lr/lr_Vr) g^m _| Xm¡amZ ~¡R>H$| AÜ`j gXñ` AGM respective attended Boards CnpñWV Wo hþB© CnpñW{V tenure Chair - Mem of dirc. person - ber

Eg.nr. ~§gb hm± 8 8 A.Ed§ à.{Z. 1 - - Shri S.P. Bansal Yes 8 8 CMD, 1 - - H$m`m©Ë_H$ {ZXoeH Functional Director g§`wŠVm g_mXma@ Zht 5 4 A§eH$m{bH$ 7 - 1 Smt. Sanyukta No 5 4 Part times official 7 - 1 A{YH$m[aH$ Samaddar@ director/Govern {ZXoeH$/gaH$mar ment Nominee Zm{_[V gË`oÝÐ Hw$_ma Zht 8 2 -CŠV- 1 - 1 Shri Satyendra No 8 2 -do- 1 - 1 Kumar

JwS>²S>r~m§S>m am_mamd bmJy Zht 7 0 -CŠV- 1 - 1 Shri Gudibanda No 7 0 -do- 1 - 1 amKdoÝÐ# Ramarao Raghavender# àdrU Jwám $ bmJy Zht 3 2 -CŠV- 6 - - Parveen Gupta $ NA 3 2 -do- 6 - amOrd H$mÊS>nmb bmJy Zht 1 0 -CŠV- 2 - 1 Rajeev Kandpal & NA 1 0 -do- 2 1 gVre garZ hm± 8 7 A§eH$m{bH$ 2 - 1 Shri Satish J¡a A{YH$m[aH$ Sareen Yes 8 7 Part times non 2 - 1 {ZXoeH$/ official director ñdV§Ì {ZXoeH$ Independent Director @ lr_Vr g§`wŠVm g_mXma 14.12.2017 go _ÊS>b _| Zht ahr& @ Smt Sanyukta Samaddar had ceased to be on board w.e.f. 14.12.2017. $ lr_Vr àdrU Jwám 14.122017 go {ZXoeH$ {Z`wŠV& $ Smt Parveen Gupta was appointed as director w.e.f. 14.12.2017. # lr JwS²>S>r~m§S>m am_mamd amKdoÝÐ 05.03.2018 go _ÊS>b _| Zht aho& # Shri Gudibanda Ramarao Raghavender had ceased to be on board w.e.f. 05.03.2018. & lr amOrd H$mÊS>nmb 05.03.2018 go {ZXoeH$ {Z`wŠV& & Shri Rajeev Kandpal was appointed as directorw.e.f. 05.03.2018. 3. A§Ho$jU g{_{V … 3. AUDIT COMMITTEE: A§Ho$jU g{_{V AÀN>o H$mnm}aoQ> JdZ]g g{hV AnZo {XE The Audit Committee is committed to JE H$V©ì`m| Ho$ gdm}Îm_ {ZînmXZ Ho$ {bE dMZ~Õ h¡& good corporate governance with best H$ånZr A{Y{Z`_, 2013 H$s Ymam 177 gn{R>V discharge of its assigned duties. It is informed that pursuant to Section 177 of H$ånZr (_ÊS>b H$s ~¡R>H$ Ed§ CgHo$ A{YH$ma) {Z`_, the Companies Act, 2013 read with Rule 6 2014 Ho$ {Z`_ 6 Ho$ AZwgaU _| `h gy{MV {H$`m of the Companies (Meeting of Board and OmVm h¡ {H$ H$ånZr Ûmam A§Ho$jU g{_{V H$m JR>Z {H$`m its powers) Rule, 2014 company is not OmZm Ano{jV Zht h¡& `Ú{n bmoH$ CÚ_ {d^mJ, ^mar required to constitute the Audit CÚmoJ Ed§ bmoH$ CÚ_ _§Ìmb` Ûmam grnrEgB© H$s Committee. However, under the Guidelines on Corporate Governance of H$mnm}aoQ> JdZ]g na Omar _mJ© {ZX}{eH$m {XZm§H$ CPSEs issued by Department of Public 14.5.2010 Ho$ AYrZ {ZXoeH$ _ÊS>b Ûmam H$V©ì`m| Ho$ Enterprises, Ministry of Heavy Industries {Zd©hZ Ho$ {bE A§Ho$jU g{_{V H$m JR>Z {H$`m J`m& and Public Enterprises dated 14.05.2010 the board has constituted the Audit Committee to discharge the duties. 3.1 boIm narjm g{_{V H$s g§X^© H$s eV] … 3.1 Audit Committee Terms of reference: l Ohm§ EH$ go A{YH$ boIm-narjm nm{Q>©`m± hmoVr h¡ CZ_|$ l To discuss with the Statutory Auditor, g_Ýd` gw{Z{íMV {H$`o OmZo Am¡a boIm narjm H$m H$m`© before the audit commences, the nature

51 joÌ VWm CgHo$ ñdê$n Ho$ g§~§Y _| boIm narjm àmaå^ and scope of the audit, and to ensure H$aZo go nyd© gm§{d{YH$ boIm narjH$m| go MMm© {H$`m coordination where more than one audit OmZm& firm is involved. l _ÊS>b H$mo àñVwV H$aZo go nyd© dm{f©H$ Ed§ AÕ©dm{f©H$ l To review the half-yearly and annual {dÎmr` {dda{U`m| H$s g_rjm {H$`m OmZm, {deof ê$n go financial statements before submission to {ZåZm§{H$V na Ho$ÝÐr^yV H$aZm… the Board, focusing particularly on: (i) boIm Zr{V`m| Ed§ nÕ{V`m| _| H$moB© n[adV©Z& (i) Any changes in accounting policies and practices.

(ii) d¥hX² {ZUm©`H$ joÌ& (ii) Major judgmental areas.

(iii) boIm narjm Ho$ n[aUm_ ñdê$n gmW©H$ (iii) Significant adjustments resulting from g_m`moOZ& the audit. (iv) boIm _mZH$m| H$s AZwnmbZm& (iv) Compliance with accounting standards.

l l {H$gr _m_bo _| {OZ na boIm narjH$ Ohm± Amdí`H$ hmo To discuss problems and reservations MMm© H$aZm Mmho§ Ed§ AmÝV[aH$ Am¡a A{ÝV_ boIm narjm arising from the interim and final audits, and any matter that the auditor may wish go CËnÞ g_ñ`mE§ Am¡a AndmXm| na MMm© H$aZm& to discuss where necessary. l à~ÝYZ àË`wVa Am¡a gm§{d{YH$ boIm narjH$m| Ho$ l To review the Statutory Auditor’s report à{VdoXZ H$s g_rjm and Management’s response: l H$ånZr Ho$ AmÝV[aH$ {Z`§ÌU nÕ{V Ho$ {ddaU na l To review the Company’s statement on {ZXoeH$ _ÊS>b Ho$ AZw_moXZ go nyd© g_rjm& internal control systems prior to endorsement by the Board. l AmÝV[aH$ AÝdofU Ho$ d¥hX² {ZîH$f© Am¡a H$ånZr Ho$ l To consider the major findings of internal àË`wVa na {dMma, Am¡a investigation and managements’ response and l {ZXoeH$ _ÊS>b Ûmam {ZpíMV {H$`o J`o AÝ` _m_bm| na l To consider other matters as defined by {dMma& the Board. 3.2 boIm narjm g{_{V H$m g§JR>Z 3.2 Composition of Audit Committee {ZåZ {ZXoeH$m| H$s {XZm§H$ 31.3.2018 A§Ho$jU Audit Committee as on 31.03.2018 g{_{V J{R>V H$s JB©…- consisted of the following Directors: 1. lr gVre garZ - AÜ`j 1. Shri Satish Sareen, - Chairman ñdV§Ì {ZXoeH$ Independent Director 2. lr_Vr àdrU Jwám - gXñ` 2. Smt. Parveen Gupta, - Member Cn g{Md, S>rEMAmB© Deputy Secretary, DHI

52 3. lr gË`oÝÐ Hw$_ma - gXñ` 3. Shri. Satyendra Kumar, Director (T.T.) {ZXoeH$ (Q>rQ>r) (nrAmoEb) aob _§Ìmb` (POL), Ministry of Railways - Member 4. S>m°. amOrd H$mÊS>nmb - gXñ` 4. Dr. Rajeev Kandpal, Director, {ZXoeH$, S>rAmB©nrnr DIPP - Member 3.3 boIm narjm g{_{V H$s ~¡R>H$| Ed§ CnpñW{V … 3.3 Audit Committee Meetings and Attendance: {dÎmr` df© 2017-18 Ho$ Xm¡amZ boIm narjm g[_{V During the financial year 2017-2018, H$s VrZ ~¡R>H|$ BgHo$ ~mX d{U©V VmarIm| 22.6.2017, Audit Committee of the company met 19.09.2017 Ed§ 28.03.2018 H$mo hþB©& three times on the dates mentioned hereafter 22.06.2017, 19.09.2017, and 28.03.2018. gXñ` H$m Zm_ nX loUr CnpñWV Name of the Status Category Number of (lr/lr_Vr) ~¡R>H$m| H$s g§»`m Member Meetings (Sh. & Smt.) attended gVre garZ AÜ`j A§eH$m{bH$ 3 Satish Sareen Chairman Part time 3 J¡a A{YH$mar {ZXoeH$ non official director g§`wŠVm g_mXma@ gXñ` A§eH$m{bH$ 2 Sanyukta Member part time 2 @ Am{YH$m[aH$ Samaddar official director {ZXoeH$ gË`oÝÐ Hw$_ma gXñ` -CŠV- 0 Satyendra Member -do- 0 Kumar àdrU Jwám$ gXñ` -CŠV- 1 Parveen Gupta$ Member -do- 1 JwS²>S>r~m§S>m am_mamd gXñ` -CŠV- 0 Gudibanda Member -do- 0 Ramaro amKdoÝÐ # Raghavender # S>m°. amOrd gXñ` -CŠV- 0 Dr. Rajeev Member -do- 0 & H$mÊS>nmb& Kandpal @ lr_Vr g§`wŠVm g_mXma 14.12.2017 go _ÊS>b Ed§ @ Smt Sanyukta Samaddar had ceased to be on board A§Ho$jU g{_{V _| Zht ahr& and audit committee w.e.f. 14.12.2017. $ lr_Vr àdrU Jwám 27.1.2018 go A§Ho$jU g{_{V H$s $ Smt Parveen Gupta was appointed as director of gXñ` {Z`wŠV& Audit Committee w.e.f. 27.01.2018. # lr JwS²>S>r~m§S>m am_mamd amKdoÝÐ 5.03.2018 go _ÊS>b # Shri Gudibanda Ramarao Raghavender had ceased _| Zht aho& to be on board w.e.f. 05.03.2018.

& lr amOrd H$mÊS>nmb 28.3.2018 go A§Ho$jU g{_{V Ho$ & Shri Rajeev Kandpal was appointed as member of Audit gXñ` {Z`wŠV commiottee w.e.f. 28.03.2018

53 4. nm[al{_H$ g{_{V 4 REMUNERATION COMMITTEE H$ånZr A{Y{Z`_, 2013 H$s Ymam 178 gn{R>V Pursuant to Section 178 of the Companies H$ånZr ({ZXoeH$ _ÊS>b H$s ~¡R>H$ Am¡a CgHo$ A{YH$ma) Act, 2013 read with Rule 6 of the {Z`_, 2014 Ho$ {Z`_ 6 Ho$ Zm_m§H$Z Ed§ nm[al{_H$ Companies (Meeting of Board and its g{_{V H$m JR>Z dm§{N>V Zht h¡& `Ú{n bmoH$ CÚ_ powers) Rule, 2014 is not required to {d^mJ, ^mar CÚmoJ Ed§ bmoH$ CÚ_ _§Ìmb`, Ûmam constitute the Nomination and gr~rEgB© H$s H$mnm}aoQ> JdZ]g na Omar _mJ© {ZX}{eH$m Remuneration Committee. However, under the Guidelines on Corporate {XZm§H$ 14.05.2010 Ho$ AYrZ {ZXoeH$ _ÊS>b Ûmam Governance of CPSEs issued by 30.08.2010 H$mo nm[al{_H$ g{_{V H$m JR>Z {H$`m Department of Public Enterprises, J`m& My±{H$ H$ånZr Ho$ H$_©Mm[a`m| Ho$ doVZ_mZ Am¡Úmo{JH$ Ministry of Heavy Industries and Public _h§JmB© ^Îmm 1991 Ed§ Ho$ÝÐr` _h§JmB© ^Îmm 1996 Ho$ Enterprises dated 14.05.2010 the board AÝVJ©V bmJy h¡& Bg{bò Ho$ÝÐr` gmd©O{ZH$ joÌ Ho$ h a d c o n s t i t u t e d R e m u n e r a t i o n CnH«$_ na\$moa_oÝg gå~pÝYV doVZ Ho$ {bò `mo½` Zht h¡ Committee on 30.08.2010. VWm Bg{bò nm[al{_H$ g{_{V go {ZYm©[aV gr_m Ho$ Since the pay scale of the employees of the AÝXa dm{f©H$ ~moZg do[aE~b no nyb Ed§ H$m`©H$mar Ed§ J¡a company is governed by IDA 1997 and H$m`©H$mar n`©dojH$m| Ho$ {dVaU Ho$ {bò {ZpíMV {H$`m CDA 1996, thus CPSE is not eligible for OmZm Ano{jV Zht h¡& Bg{bò nm[al{_H$ g{_{V Performance Related Pay and so remuneration Committee is not required dV©_mZ _| {ZpîH«$` h¡& to decide the annual bonus/variable pay pool and policy for its distribution across the executives and non-unionized supervisors, within the prescribed limits. So, the Remuneration committee is currently defunct. 5. gmYmaU g^m H$s ~¡R>H$ 5. GENERAL BODY MEETING 5.1 H$ånZr H$s JV 3 dm{f©H$ gmYmaU g^m {ZåZ àH$ma 5.1 The Last Three Annual General Meetings Am`mo{OV hþB©& of the Company were held as under: {dÎmr` df© {XZm§H$ g_` ñWmZ Financial Year Date Time Location

2016-17 25.9.17 12.00 ~Oo n§OrH¥$V H$m`m©b`…Or-229 2016-17 25.09.17 12.00hrs. Registered Office: G-229, grVmnwam,Am¡Úmo{JH$ joÌ, Sitapura Industrial Area, O`nwa- 302022 (amO.) Jaipur, Rajasthan, PIN: 302022 2015-16 30.9.16 11.30 ~Oo n§OrH¥$V H$m`m©b`… Or-229 2015-16 30.09.16 11.30 hrs. Registered Office: G-229, grVmnwam, Am¡Úmo{JH$ joÌ, Sitapura Industrial Area, O`nwa- 302022 (amO.) Jaipur, Rajasthan, PIN: 302022 2014-15 27.11.1514.00 ~Oo n§OrH¥$V H$m`m©b`… ~r-427, 2014-15 27.11.15 14.00 hrs. Registered Office: B-427, àYmZ _mJ©, _mbdr` ZJa, Pradhan Marg, Malviya O`nwa-302017 Nagar, Jaipur-302017. 54 5.2 H$ånZr H$s 59 dt gmYmaU g^m [Xgå~a 2018 5.2 59thAnnual General Meeting of the Ho$ 21d| {XZ ewH«$dma H$mo 11.30 ~Oo H$ånZr Ho$ company is scheduled to be held on n§OrH¥$V H$m`m©b` Or-229, grVmnwam Am¡Úmo{JH$ Friday, the 21st day of December, 2018 at joÌ O`nwa-302022 (amOñWmZ) na {H$`m 11.30 Hrs at the Registered Office of the OmZm {ZYm©[aV {H$`m J`m h¡& Company situated at G-229, Sitapura Industrial Area, Jaipur, Rajasthan – 302022. 6. AmMaU g§{hVm 6. CODE OF CONDUCT ^maV gaH$ma Ûmam Ho$ÝÐr`/gmd©O{ZH$ joÌ The board in its meeting held on 30.8.2010 (gr.nr.Eg.B©O) H$s H$mnm}aoQ> JdZ]g {ZXo©{eH$m Ho$ approved the “Code of Business Conduct AZwgma {ZXoeH$ _ÊS>b Zo 30.8.2010 H$mo hþB© and Ethics for Board Members and Senior Management” in terms of guidelines on g^m _| ""_ÊS>b Ho$ gXñ` Ed§ d[aîR> à~§YZ Ho$ corporate governance in Central Public {bE ì`mnma AmMaU Am¡a AmMaU g§{hVm'' H$mo Sector Enterprises (CPSEs) issued by the _§Oyar Xr& BgHo$ AZwgaU _| _ÊS>b Ho$ gXñ`m| Government of India. Pursuant to this Am¡a d[aîR> à~§Y H${_©`m| Zo dm{f©H$ AmYma na Board members and senior management {dÎmr` df© Ho$ AÝV go 30 {XZm| _| g§{hVm H$s personnel have affirmed compliance AZwnmbZm H$s à{dpîQ> H$s Ed§ Cgo _ÊS>b Ho$ with the code on an annual basis within 30 days from the end of FY and same was gm_Zo àñVwV H$s& AZwnmbZm H$m à_mU nÌ placed before board. The certificate of {ZXoeH$ à{VdoXZ Ho$ n[a{eîQ> Ho$ ê$n _| g§b½Z h¡& Compliance is enclosed as Addendum to the Directors’ Report. 7. {ZXoeH$ _ÊS>b Ho$ gXñ`m| H$m à{ejU 7. TRAINING OF BOARD MEMBERS {dÎmr` pñW{V H$mo Ü`mZ _| aIVo hþE dV©_mZ _| Having regard to the financial status H$ånZr AnZo Zd-{Z`wŠV {ZXoeH$m| H$mo currently company is unable to provide Am¡nMm[aH$ à{ejU àXmZ H$aZo _| Ag_W© h¡& formal training to its newly appointed `Ú{n _ÊS>b Ho$ {ZXoeH$m| H$mo H$ånZr Ho$ ì`mnma directors, however directors on board have been provided with an introduction T>m§Mo Am¡a {H«$`mH$bmnm| Ho$ joÌ go n[a{MV H$am`m to the company’s business model, area of J`m& bmoH$ CÚ_ {d^mJ Ûmam grnrEgB©O Ho$ ZE operations etc. Independent director has {Z`wŠV ñdV§Ì {ZXoeH$ H$s j_Vm d¥{Õ Ho$ {bE attended the Orientation Programme for Am`mo{OV H$m`©H«$_ _| ñdV§Ì {ZXoeH$ Ûmam ^mJ capacity building of newly appointed {b`m OmVm h¡& Independent Directors of CPSEs organised by DPE. 8. {ZXoeH$m| Am¡a _w»` à~§Y H${_©`m| H$m 8. REMUNERATION OF DIRECTORS nm[al{_H$… A N D K E Y M A N A G E R I A L PERSONNEL:

55 EH$ gaH$mar H$ånZr hmoZo Ho$ ZmVo, H$m`m©Ë_H$ Being a Government Company, the {ZXoeH$ O¡go AÜ`j Ed§ à~§Y {ZXoeH$ H$m remuneration of functional director like nm[al{_H$ ^maV gaH$ma Ûmam {ZpíMV {H$`m J`m Chairman and Managing Director is h¡& gaH$mar Zm{_Vm| H$mo H$moB© nm[al{_H$ Zht {X`m decided by the Government of India. Government Nominee was not paid any J`m& remuneration. ñdV§Ì {ZXoeH$ g{_{V Ed§ _ÊS>b H$s ~¡R>H$m| _| The independent Director is entitled to CnpñW{V Ho$ {bE ~¡R>Zo H$s \$sg Ho$ {bE nmÌ h¢& sitting fees for attending board and committee meetings.

8.1 g_rjmYrZ df© Ho$ Xm¡amZ H$ånZr Ho$ H$m`m©Ë_H$ 8.1 Details of the remuneration of functional {ZXoeH$ Ed§ _w»` à~§YH${_©`m| Ho$ nm[al{_H$ H$m directors and Key Managerial Personnel {ddaU {ZXoeH$m| Ho$ à{VdoXZ H$s AZwgyMr-&& _| of the company during the year under review are provided in the extract of the dm{f©H$ {ddaUr Ho$ gma _| {X`m J`m h¡& Annual Return in Annexure –II of the Directors’ Report. 9. A§Ho$jU `mo½`Vm 9. AUDIT QUALIFICATION Amjon a{hV {dÎmr` {ddaU àñVwV H$aZo H$m It is always the company’s endeavour to present unqualified financial statement; H$ånZr H$m gX¡d à`mg ahm h¡, `Ú{n g§d¡Ym{ZH$ however, the statutory Auditors has boIm narjH$m| Ûmam {dÎmr` df© 2017-18 H$s given an qualified report on standalone H$ånZr H$s EH$b {dÎmr` {ddaUm| na _`m©{XV financial statement of the company for [anmoQ>© Xr JB© h¡ Ed§ "_hËdnyU© _V' Ho$ AÝVJ©V the financial year 2017-18 and has drawn {dÎmr` {ddaU H$s {Q>ßnUr g§»`m 1.7 Ed§ 5 VWm attention under “Emphasis Matter” grEgAmaAmo Ho$ AÝVJ©V {dMma Ed§ AnZr [anmoQ>© regarding Note No. 1.7 and 5 of financial statement and observation under CARO _| Am§V[aH$ {Z`§ÌU `mo½` na _`m©{XV am` Ho$ & qualified opinion on internal financial g§X^© _| Ü`mZ AmH${f©V {H$`m h¡& 31 _mM©, controls of their Report. Management 2018 H$mo g_má {dÎmr` df© Ho$ {b`o H$ånZr Ho$ reply to the Statutory Auditors’ boIm| na g§d¡Ym{ZH$ boIm narjH$m| H$s Qualification/emphasis matter/ `mo½`Vm/_hËdnyU© _m_bo/{dMma na à~§YZ H$m observations on the Accounts of the Odm~ {ZXoeH$m| Ho$ à{VdoXZ _| {X`m J`m h¡& company for the financial year ended 31st March, 2018 is furnished in the Directors’ Report. 10. g§Mma Ho$ _mÜ`_ 10. MEANS OF COMMUNICATION 10.1 do~gmBQ 10.1 Website {ZdoeH$m| Ed§ g^r {hVYmaH$m| Ho$ {bE H$ånZr H$s T h e c o m p a n y ’ s w e b s i t e

56 do~gmBQ> www.indiansalt.com na gyMZmE§ www.indiansalt.com hosts information hmoñQ> h¢ Ed§ H$ånZr Ho$ dm{f©H$ {dÎmr` {ddaU for investors and all stakeholders. The S>mCZbmoS> H$aZo `mo½` àmê$n _| CnbãY h¡& Annual Financial statements of the company are available on the website in a user friendly and downloadable form. 10.2 H$m`m©b`r g_mMma àH$meZ 10.2 Official News releases H$ånZr H$m`m©b`r g_mMma H$mo àH$meZ Ed§ The company communicates with BboŠQ´>mo{ZH$ Ûmam {hVYmaH$m| H$mo ào{fV H$aVr h¡& stakeholders by way of official news releases in electronic and print media. 11. Ü`mZmH$f©U$ Zr{V 11. WHISTLE BLOWER POLICY H$ånZr H$s Ü`mZ AmH$f©U Zr{V gyÌrH$aU Ho$ A Whistle Blower Policy of the company VhV h¡& {ZXoeH$ _ÊS>b BgHo$ EH$ ~ma ~Z OmZo is under formulation. The Board will review and implement the same once it is d ñdrH¥$V hmo OmZo na BgH$s g_rjm d formulated and approved. However, {H«$`mpÝd{V H$aoJm& `Ú{n H$ånZr H$_©Mm[a`m| H$mo, company is otherwise in – built AZ¡{VH$ AmMaU dmñV{dH$ Am¡a g§XohmñnX, procedure to provide an opportunity to H$nQ> AWdm H$ånZr H$s AmMma g§{hVm Ho$ employees to report to the management A{VH«$_U H$m à~§Y H$mo gyMZm XoZo H$m EH$ Adga instances of unethical behaviour, actual or suspected, fraud or violation of the àXmZ H$aZo Ho$ {bE H$ånZr Ûmam à{H«$`m bmJy H$s company’s code of conduct. JB© h¡&

[ZXoeH$ _ÊS>b Ho$ {bE For and on behalf of the Board of Directors Ed§ H$s Amoa go Sd/- h/- (Eg.nr.~§gb) (S.P. Bansal) AÜ`j Ed§ à~§Y {ZXoeH$ Chairman & Managing Director {ZXoeH$ nhMmZ g§. … 07239609 DIN : 07239609 ñWmZ… O`nwa Place : Jaipur {XZm§H$… 13.12.2018 Dated : 13.12.2018

57 AZwgyMr/Annexure- II ànÌ g§. E_OrQ>r-9 FORM NO. MGT-9 dm{f©H$ {ddaUr H$m gma/EXTRACT OF ANNUAL RETURN 31 _mM©, 2018 na g_má hþE {dÎmr` df© Ho$ AZwgma/As on the financial year ended on 31st March 2018 (H$ånZr A{Y{Z`_, 2013 H$s Ymam 92(3) Ed§ H$ånZr (à~§Y Ed§ àemgZ) {Z`_, 2014 Ho$ {Z`_ 12(1) Ho$ AZwgaU _|) [Pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management and Administration) Rules, 2014] I. n§OrH$aU Ed§ AÝ` {ddaU… REGISTRATION AND OTHER DETAILS: i grAmB©EZ `y14220AmaOo1958OrAmoAmB©001049 CIN U14220RJ1958GOI001049 ii n§OrH$aU {XZm§H$… Registration Date 12.04.1958 iii H$ånZr H$m Zm_… {hÝXþñVmZ gmëQ>g {b{_Q>o‹S> Name of the Company Hindustan Salts Limited iv H$ånZr H$s loUr/CnloUr {ZOr H$ånZr/ gaH$mar H$ånZr Category/Sub-Category of the Company Private Company/Government Company v n§OrH¥$V H$m`m©b` H$m nVm Ed§ gånH©$ {ddaU/ Or-229, grVmnwam Am¡Úmo{JH$ joÌ, O`nwa-302022 amOñWmZ, \$moZ Z§… 0141-2771427, \¡$Šg … 0141-2771449 B©._ob : [email protected] Address of the registered office and G-229 Sitapura Industrial Area, Jaipur, contact details Rajasthan PIN: 302022 Tel. No.: 0141-2771427 Fax :0141-2771449 Email: [email protected] vi Š`m H$ånZr gMy r~Õ h/¡ Whether listed company Zht/No vii n§OrñWmZmÝVaU à{V{Z[Y Ed§ n§Or`H$ `{X H$moB© hmo bmJy Zht H$m Zm_, nVm Am¡a gånH©$ {ddaU… Name, Address and Contact details of NA Registrar and Transfer Agent, if any

II. H$ånZr H$s _w»` ì`mnma J{V{d{Y`m§ PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY H$ånZr H$s Hw$b {~H«$s Ho$ 10% `m Á`mXm H$m `moJXmZ XoZo dmbr g^r ì`mnm[aH$ J{V{d{Y`m| H$m dU©Z All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-

58 H«$.g§ _w»` CËnmXm|/godmAm| CËnmX/godm H$m EZAmB©gr H$moS> H$ånZr H$s Hw$b {~«H$s H$m à{VeV H$m Zm_ Am¡a {ddaU S.No Name and Description NIC Code of the %to total turnover of of main products/services Product/ service the company 1 gm_mÝ` Z_H$/Common salt 01932 15.96% 2 ~«mo_rZ Bromine 20111 65.62% 3 _¡½Zr{e`_ ŠbmoamBS> Magnesium Chloride 20119 17.97% III. YmaH$, ghm`H$ Am¡a gh`moJr H$ån{Z`m| H$m {ddaU PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES H«$.g§ H$ånZr H$m Zm_ Ed§ nVm grAmB©EZ/OrEbEZ Ym[aV A§em| H$m à{VeV S.No. Name and address of the company CIN/GLN % of shares held ghm`H$ H$ånZr (Ymam2(87)(ii)/Subsidiary Company {Section 2(87)(ii)} 1 gm§^a gmëQ²>g {b{_Q>o‹S>, `y14220AmaOo1964OrAmoAmB©001188 60 Or-229 grVmnwam, Am¡Úmo{JH$ joÌ, O`nwa, {nZ- 302022 (amO.) Sambhar Salts Limited U14220 RJ1964GOI001188 G-229, Sitapura Industrial Area, Jaipur, (Rajasthan) PIN-302022

IV. (A) A§e YmaU à{Vê$n (Hw$b j_Vm Ho$ à{VeV Ho$ ê$n _| g_Vm A§e n§yOr H$m ã`m¡am) (A) SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) i. loUr ~Õ A§eYmaU Category-wiseShareHolding A§eYmaH$m| H$s loUr df© Ho$ àma§^ _| Ym[aV A§em| H$s g§»`m df© Ho$ AÝV _| Ym[aV A§em| H$s g§»`m df© Ho$ Xm¡amZ Category of Shareholders No. of Shares held at the beginning of No. of Shares held at the end of the ~Xbmd à{VeV the year year % Change during the year S>r_oQ> ^m¡{VH$ Hw$b Hw$b A§em§o S>r_oQ> ^m¡{VH$ Hw$b Hw$b A§em| H$m à{VeV H$m à{VeV Demat Physical Total % of Total Demat Physical Total % of Total Shares Shares A. g§ñWmnH$ Promoter 1) ^maVr` Indian A) ì`pŠVJV/EM`yE\$ a) Individual/ HUF 0 0 0 0 0 0 0 0 0 ~) Ho$ÝÐ gaH$ma b) Central Govt. 0 420596 420596 100 0 520596 520596 100 100 g) amÁ` gaH$ma

59 c) State Govt(s) 0 0 0 0 0 0 0 0 0 X) gm_m{OH$ {ZH$m` d) Bodies Corp 0 0 0 0 0 0 0 0 0 `) e)>~¢H$/E\$AmB© Banks / FI 0 0 0 0 0 0 0 0 0 a) f) AÝ` H$moB© Any Other 0 0 0 0 0 0 0 0 0 Cn-`moJ (E)(1) Sub-total(A)(1):- 0 420596 420596 100 0 520596 520596 100 100 2) >{dXoer Foreign b) EZAmaAmB©-ì`pŠVJV g) NRIs-Individuals 0 0 0 0 0 0 0 0 0 d) AÝ`-ì`pŠVJV h) Other-Individuals 0 0 0 0 0 0 0 0 0 e) gm_m{OH$ {ZH$m` i) Bodies Corp. 0 0 0 0 0 0 0 0 0 f) j) ~¢H$/E\$AmB© Banks/FI 0 0 0 0 0 0 0 0 0 g) >AÝ` H$moB© k) Any Other…. 0 0 0 0 0 0 0 0 0 Cn-`moJ (E)(2) Sub-total(A)(2): 0 0 0 0 0 0 0 0 0 >(H$) `moJ = E(1)+E (2) Total of A= A(1)+A(2): 0 420596 420596 100 0 520596 520596 100 100 (I) B. OZ A§eYm{aVm Public Shareholding 1. g§ñWmEo§ Institutions A) >å`wMAb \$ÊS> a) Mutual Funds 0 0 0 0 0 0 0 0 0 ~) b) ~¢H$/E\$AmB© Banks/FI 0 0 0 0 0 0 0 0 0 g) >Ho$ÝÐ gaH$ma c) Central Govt 0 0 0 0 0 0 0 0 0 X) amÁ` gaH$ma| d) State Govt.(s) 0 0 0 0 0 0 0 0 0 `) CÚ_ ny§Or {Z{Y e) Venture Capital Funds 0 0 0 0 0 0 0 0 0 a) ~r_m H§$nZr f) Insurance Companies 0 0 0 0 0 0 0 0 0 b) g) >E\$.AmB©.AmB©.Eg. FIIs 0 0 0 0 0 0 0 0 0 d) >{dXoer CÚ_ ny§Or {Z{Y h) Foreign Venture Capital Funds 0 0 0 0 0 0 0 0 0 i) AÝ` ({Z{X©îQ> H$a|) Others (specify) 0 0 0 0 0 0 0 0 0 Cn-`moJ (~r)(1) Sub-total (B)(1) 0 0 0 0 0 0 0 0 0 2. J¡a g§ñWmE§ Non Institutions A) >gm_m{OH$ {ZH$m` a) Bodies Corp. 0 0 0 0 0 0 0 0 0 (i) > ^maVr` Indian 0 0 0 0 0 0 0 0 0 (ii) >{dXoer Overseas 0 0 0 0 0 0 0 0 0 ~) b) ì`pŠVJV Individuals 0 0 0 0 0 0 0 0 0 60 (i) 1 bmI VH$ H$s A§{H$V A§e ny§Or Ym[aV {H$E ì`pŠVJV A§eYmaH$ Individual shareholders holding nominal share capital upto Rs. 1 lakh 0 0 0 0 0 0 0 0 0 (ii) 1 bmI go A{YH$ A§{H$V A§e ny§Or Ym[aV {H$E ì`pŠVJV A§eYmaH$ Individual shareholders holding nominal share capital in excess of Rs 1 lakh 0 0 0 0 0 0 0 0 0 c) AÝ` ({Z{X©îQ H$a|>) Others(Specify) 0 0 0 0 0 0 0 0 0 Cn-`moJ (~r)(2) Sub-total(B)(2) 0 0 0 0 0 0 0 0 0 Hw$b OZ A§e Ym[aVm (~r)=(~r)(1)+(~r) (2) Total Public Shareholding (B)=(B)(1)+ (B)(2) 0 0 0 0 0 0 0 0 0 C. OrS>rAma Ed§ ES>rAma Ho$ {bE g§ajH$ Ûmam Ym[aV A§e Shares held by Custodian for GDRs andADRs 0 0 0 0 0 0 0 0 0 Hw$b `moJ (A+~+g) GrandTotal (A+B+C) 0 420596 420596 100 0 520596 520596 100 100

(B) g§ñWmnH$m| H$s A§eYm[aVm Shareholding of Promoters H«$. A§e YmaH$ H$m Zm_ df© Ho$ AÝV _| A§eYm[aVm g§ df© Ho$ àma§^ _| A§eYm[aVm df© Ho$ Xm¡amZ S. Shareholder’s Shareholding at the beginning of Shareholding at the end of the A§e Ym[aV Ho$ à{VeV No Na me the ye ar yea r _| ~Xbmd A§em| H$s H$ånZr Ho$ Hw$b A§em§o Ho$ H$ånZr Ho$ Hw$b A§em§o Ho$ % change in g§»`m Hw$b A§em| ~§YH$/^maJ«ñV A§em| H$s Hw$b A§em| ~§YH$/^maJ«ñV shareholding H$m à{VeV A§em| H$m à{VeV g§»`m H$m à{VeV A§em| H$m à{VeV during the yea r No. of % of t otal % of Sha res No. of % of % of sha res Shares of Pledge d / share s tot al Share s the encumbered Share s Pledged / compa ny to of th e encumbere totalshar es company d to total share s ^maV Ho$ amîQ´>n{V 1 President of 420 592 1 00 0 52059 2 10 0 0 - I ndia

61 (g) g§ñWmnH$m| H$s A§eYm[aVm _| ~Xbmd (H¥$n`m {Z{X©îQ> H$a|, AJa `hm§ H$moB© ~Xbmd Zm hmo Vmo) (C) Change in Promoters’ Shareholding (please specify, if there is no ch ange)

dîm© Ho$ Xm¡amZ g§M`r H«$. dîm© Ho$ àma§^ _| A§eYm[aVm df© Ho$ Xm¡amZ ì`dhma g§ {ddaU A§eYm[aVm Shareholding at the Transaction during the yea r Cumulative Sr. beginning of the y ear Shareholding during Particulars No the yea r

A§em| H$s g§»`m H$ånZr Ho$ Hw$b {XZm§H$ A§eYm[aVm _| H$ånZr Ho$ Hw$b A§em§o H$m à{VeV H$_r/d¥{Õ A§em| H$s g §»`m A§em§o H$m n«{VeV H$maÊm No. of % of total Increase/ No. of % of tota l shares shares of Date Decrease Reason shares the in shares of company share the holdi ng company df© Ho$ àma§^ _| 1 At the beginning of 420596 100 4205 96 100 the year

Amd§Q>Z A§ímm| H$m 2 Allotment - - 27.01.18 100000 Amd§Q>Z 100 Allotment of the Shares dîm© Ho$ A§V _| 3 At the end of the 42 0596 100 1 00000 52059 6 100 year

(X) erf© Xg A§e YmaH$m| H$m A§eYmaU à{Vê$n ({ZXoeH$mo|, à_moQ>g© Am¡a OrS>rAma Ed§ ES>rAma YmaH$m| Ho$ Abmdm) (D) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

H«$. {ddaÊm dîm© Ho$ Xm¡amZ g§M`r g§ dîm© Ho$ àma§^ _| A§eYm[aVm dîm© Ho$ Xm¡amZ ì`dhma A§eYm[aVm Sr. Particulars Shareholding at the Transaction during the year Cumulative No beginning of the year Shareholding during the year H$ånZr Ho$ Hw$b A§em| H$s g§»`m H$ånZr Ho$ Hw$b {XZm§H$ A§eYm[aVm _| A§em| H$s g§»`m A§em§o H$m à{VeV H$_r/d¥{Õ H$maÊm A§em§o H$m à{VeV No. of % of total Date In crease/ Reas on No. of % of total shares s hares of Decrease in shares shares of the share the company holding company

df© Ho$ àma§^ _| 1 At the beginning of 0 0 0 0

the year

2 Amd§Q>Z Allotment - 0 - 0 0 dîm© Ho$ A§V _| 3 At the end of the 0 0 0 0 year

62 (`) {ZXoeH$m| Ed§ _w»` à~§Y H${_©`m| H$s A§eYm[aVm (E) Shareholding of Directors and Key Managerial Personnel: H«$. {ddaÊm dîm© Ho$ Xm¡amZ g§M`r g§ dîm© Ho$ àma§^ _| A§eYm[aVm dîm© Ho$ Xm¡amZ ì`dhma A§eYm[aVm Sr. Particulars Shareholding at the Transaction during the year Cumulative No beginning of the year Shareholding during the year H$ånZr Ho$ Hw$b A§em| H$s g§»`m H$ånZr Ho$ Hw$b {XZm§H$ A§eYm[aVm _| A§em| H$s g§»`m A§em| H$m n«{VeV H$_r/d¥{Õ H$maÊm A§em| H$m à{VeV No. of % of total Date Increase/ Reason No. of % of total shares shares of Dec rease in shares shares of the share the company holding company 1 lr ^mñH$a Oo. _hÝV, g§`wŠV g{Md H$_r hñVmÝVaU Shri Bhaskar J. Mahanta, 1 0 23.3.2018 0 0 Shri. N Sivanand, Decrease Tran sfer Join. Secratery 2 Smt. Sanyukta Samaddar, Director hñVmÝVaU lr_Vr g§`wŠVm g_mXma, 1 0 23.3.2018 H$_r 0 0 {ZXoeH$ Decrease Transfer 3 lr Aa{dÝX Hw$_ma, 1 0 hñVmÝVaU 23.3.2018 H$_r Cn g{Md Decrease Transfer 0 0 Shri Arvind Ku mar Deputy Secretary

lr EZ. {edmZ§X - - 23.3.2018 d¥{Õ hñVmÝVaU 1 0 4 g§`wŠV g{Md Increase Transfer Shri. N S ivana nd, Joint Secretar y hñVmÝVaU 5 lr_Vr àdrU Jwám - - 23.3.2018 d¥{Õ 1 0 Cn g{Md Increase Transfer Smt. Parveen Gupta, Deputy Secretary lr h[aha ewŠbm hñVmÝVaU 6 Ana g{Md 23.3.2018 d¥{Õ Shri Harihar Sukla, - - Increase Transfer 1 0 Under Secretary 7 lr Eg.nr. ~§gb, grE_S>r - - - Shri S.P. Bansal,CMD 1 0 1 0 lr Eg. nr. ~§gb V. G$UJ«ñVVm INDEBTEDNESS

A{O©V {H$E JE {H$ÝVw ^wJVmZ Ho$ {bE Zht ~H$m`m ã`mO g{hV H$ånZr H$s G$UJ«ñVVm Indebtedness of the Company including interest outstanding/accrued but not due for p aymen t (` bmI _|)(₹ in Lakh ) {ddaU Particulars O_m a{hV gwa{jV G$U Agwa{jV G$U O_mE§ Hw$b G$U J«ñVVm Secured Loans Unsecured excluding Deposits Total deposits Loans Indebtedness {dÎmr` df© Ho$ àma§^ _| G$UJ«ñVVm Indebtedness at the beginning of the financial year i) _yb am{e Principal Amount - 1241.29 - 1241.29 ii) ã`mO Xo`, bo{H$Z ^wJVmZ Zht Interest due but not paid - 1905.11 - 1905.11 iii) ã`mO A[O©V, bo{H$Z Xo` Zht Interest accrued but not due H$w$b Total (i+ii=iii) - 3146.4 0 - 3 146.40 {dÎmr` df© Ho$ Xm¡amZ G$UJ«ñVVm _| ~Xbmd Ch ange in Indebted ness during the financial year d¥{ Õ - Addition - 350.50 - 350.50 H$ _r - Reduction - -693.1 2* - -693.1 2* ewÕ ~Xbmd Net Change - -344.77 - -344.77 {dÎmr` df© Ho$ AÝV _| G$UJ«ñVVm Indebtedness at the end of the financial year i) _yb am{e Principal Amount - 1241.29 - 1241.29 ii) ã`mO Xo`, bo{H$Z ^wJVmZ Zht Interest due but not pa id - 1562.3 4 - 1562.3 4 iii ) ã`mO A[O ©V, bo{H$Z Xo` Zht Interest accrued but not due - - - - Hw$b Total (i+ii+iii) - 2803.63 - 2803.63 * ^maV gaH$ma Ho$ G$U na nyd© dfm] _| à^m[aV A{V[aŠV ã`mO H$mo dmng {bIm J`m& * Excess interest charged in earlier year on Government of India loan were written back. 63

{ZXoeH$m| Ed§ _w»` à~§Y H${_©`m| H$m nm[al{_H$ VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL E. à~§Y {ZXoeH$, nyU©H$m{bH$ {ZXoeH$/ `m à~§YH$ H$m nm[al{_H$ A. Remuneration to Managing Director, Whole-time Directors and/or Manager: (` bmI _|) (₹ in Lakh) H«$.g§ nm[al{_H$ H$m {ddaU à.{Z./ny.H$m.{Z./à~§YH$ H$m Zm_ Hw$b am{e Total Sl. No. Particulars of Remuneration Name of MD/WTD/Manager Amount 1. à.A.Ed§.à.{Z. ny.H$m.{Z. à~§YH$ CMD WTD Manager 2. lr.Eg.nr. ~§gb Shri S.P. Bansal # 3. gH$b doVZ G ross sa lary (A) Am`H$a A{Y{Z`_, 1961 H$s Ymam 17(1) _| {Z{hV àmdYmZm| Ho$ AZwgma doVZ (a) Salary as per provisions contained in section 17(1) 16.43 - - 16.43 of the Income-tax Act, 1961 (~) Am`H$a A{Y{Z`_ 1961 H$s Ymam 17(2) Ho$ AYrZ AZwbm^m| H$m _yë` (b) Value of perquisites u/s 17(2) Income-tax Act, 1961 7.34 - - 7.34 (g) Am`H$a A{Y{Z`_ 1961 H$s Ymam 17(3) Ho$ AZwgma doVZ Ho$ ê$n _§o bm^ (c) Profits in lieu of salary under section17(3) Income- - - - - tax Act,1961 4. ny§Or {dH$ën Stock Option - - - - 5. ñdoX g_Vm Sweat Equity - - - - 6. H$_reZ Commi ssion - - b m^ Ho$ à{VeV Ho$ ê$n _| - as % of profit - - - - A Ý` {Z{X©îQ> H$a| - oth ers, specify… - - - - 7. AÝ`, H¥$n`m {Z{X©îQ> H$a| Oth ers, please specify - - - - 8. Hw$b (A) To tal(A) 23.77 23.77 A{Y{Z`_ Ho$ AZwgma gr_mCeilin g as per the Act -NA* * H$m°nm}aoQ> _m_bmV _§Ìmb` H$s A{YgyMZm {XZm§H$ 5.6.2015 Ho$ VhV H$ånZr A{Y{Z`_ 2013 H$s Ymam 197 bmJy Zht hmoJr * Section 197 of Companies Act, 2013 shall not apply vide MCA notification dated 5.6.2015

64 ~. AÝ` {ZXoeH$m| H$mo nm[al{_H$ B. Remuneration to other directors: (` bmI _|) (₹ in Lakh ) H«$.g§ nm[al{_H$ H$m {ddaU [ZXoeH$ H$m Zm_ Hw$b Sl No. Particulars of Remuneration Name of Director Total 1 ñdV§Ì {ZXoeH$ Independ ent Directors lr gVre garZ Shri Satish Sareen _ÊS>b/g{_{V ~¡R>H$m| _| ^mJ boZo Ho$ {bE ewëH$ Fe e for attending board/committee meetings 0.51 0. 51 H$_reZ Com mission - - AÝ`, H¥$n`m {Z{X©îQ> H$a| O thers, please specify - - Hw$b ( 1 ) / Total (1) 0.51 0. 51 AÝ` J¡a-H$m`©H$mar {ZXoeH$ - 1. Other Non - Executive Directors _ÊS>b/g{_{V H$s ~¡R>H$m| _| ^mJ boZo Ho$ {bE ewëH$ F ee for attending board/committee meetings - - - - -

H$_reZ Comm ission - - - - - AÝ`, H¥$n`m {Z{X©îQ> H$a| O thers, please specify - - - - - `moJ (2) Total (2) - - - - - `moJ (~r)=(1+2) Total (B)=(1+2) - - - - - Hw$b à~§YH$s` nm[al{_H$ Total Managerial Remuneration - - - - - A{Y{Z`_ Ho$ AZwgma gr_m (H$ånZr A{Y{Z`_, 2013 H$s Ymam198 Ho$ AÝVJ©V J{UV bm^ Ho$ 1% H$s Xa go) NA* Ceiling as per the Act (@ 1 % of profits calculated under Section 198 of the Companies Act, 2013)

* H$m°nm}aoQ> _m_bmV _§Ìmb` H$s A{YgyMZm${XZm§H$ 5.6.2015 Ho$ VhV H$ånZr A{Y{Z`_, 2013 H$s Ymam 197 bmJy Zht hmoJr& * Section 197 of Companies Act, 2013 shall not apply vide MCA notification dated 5.6.2015

65 à.{Z./à~§YH$/nyU©H$m{bH$ {ZXoeH$ Ho$ Abmdm _w»` à~§Y H${_©`m| H$m nm[al{_H$ C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD (` bmI _|) (₹ in Lakh ) nm[al{_H$ H$m {ddaU _w»` à~§Y H$_u Hw$b Particulars of Remuneration Key Managerial Personne l Total _w»` H$ånZr g{Md _w»` H$m`©H$mar {dÎmr` A{YH$mar A{YH$mar CEO CS CFO Hw$. gw_moZm _Oy_Xma Ms Sumona Majumdar 1 gH$b doVZ G ross salary (A) Am`H$a A{Y{Z`_, 1961 H$s Ymam 17(1) _|$ {Z{hV àmdYmZm| Ho$ AmYma na doVZ (a) Salary as perprovisions - 6.79 - 6.79 contained in section17(1) of the Income-tax Act, 1961 (~) Am`H$a A{Y{Z`_, 1961 H$s Ymam 17(2) Ho$ AYrZ n[abm^m| H$m _yë` (b) Value of perquisites u/s 17(2) - 1.14 - 1.14 Income-tax Act, 1961 (g) Am`H$a A{Y{Z`_, 1961 H$s Ymam 17(3) Ho$ AYrZ doVZ Ho$ EdO _| bm^ (c) Profits in lieu of salary under - - - - section17(3) Income- tax Act, 1961

2 n§yOr {dH$ën S tock Option - - - - 3 ñdoX g_Vm S weat Equity - - - - 4 H$_reZ Com mission - - - - bm^ Ho$ à{VeV Ho$ ê$n _| - as % of profit - - - 5 AÝ`, H¥$n`m {Z{X©îQ> H$a| Others, please specify - - - - Hw$b Total - 7.93 - 7.93

66 Ow_m©Zm/gOm/AnamYm| H$m {_lU VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

H$ånZr àm{YH$mar n«H$ma Ow_m©Zm H$m {ddaU Anrb H$s A{Y{Z`_ H$s g§{já (AmaS>r/EZgrEbQ>r/H$moQ>©) /gOm AnamYm| JB© `{X H$moB© Ymam {ddaU Type Section of Ho$ {_lU Ho$ ewëH$ Authority[RD/NCLT/Court] ({ddaU the Brief H$m {ddaU Xr{OE) companies description Details of Act Appeal Penalty/ Punishment/ made. If Compounding any(give fees imposed details)

df© Ho$ Xm¡amZ, H$ånZr `m CgHo$ {ZXoeH$ `m Xmof Ho$ AÝ` A[YH$m[a`m| Ho$ {Ibm\$ H$ånZr A{Y{Z`_, H$s {H$gr ^r Ymam Ho$ Cëb§KZ Ho$ {bE H$moB© Ow_m©Zm/gOm/AnamYm| H$m {_lU `{X H$moB© Zht Wm& There were no penalty/punishment/compounding of offences for breach of any section of Companies Act against the company or its Directors or other officers in default, if any, during the year.

{ZXoeH$ _ÊS>b Ho$ {bE Ed§ H$s Amoa go For and on behalf of the Board of Directors

(Eg.nr. ~§gb) AÜ`j Ed§ à~ÝY {ZXoeH$ {ZXoeH$ nhMmZ g§.… 07239609 (S.P. Bansal) Chairman and Managing Director DIN: 07239609

ñWmZ… O`nwa Place : Jaipur {XZm§H$… 13.12.2018 Date : 13.12.2018

67 AmMma g§{hVm-AZwnmbZm à{VkmZ Code of Conduct- Compliance Affirmation

`h nwpîQ> H$s OmVr h¡ {H$ {h.gm.{b. Zo {ZXoeH$ _ÊSb Ho$ This is to confirm that HSL has laid down g^r gXñ`m| Am¡a d[aîR> à~§Y Ho$ {bE ì`mnma H$s AmMma a Code of Business Conduct and Ethics for all g§{hVm Am¡a Zr{V {ZYm©[aV H$s h¡& Am¡a g§{hVm H$ånZr Ho$ the Board Members and Senior Management of the HSL and the code is posted on the do~gmBQ> na àH$m{eV h¡& 31 _mM©, 2018 H$mo g_má hmoZo company website. The board and Senior {dÎmr` df© Ho$ {bE CŠV g§{hVm H$s AZwnmbZm H$s _§Oyar Management have affirmed compliance with {ZXoeH$ _ÊS>b Ed§ d[aîR> à~§YZ Ûmam Xr JB© h¡& the said Code for the financial year ended 31st March, 2018.

{hÝXþñVmZ gmëQ²>g {b{_Q>oS> Ho$ {bE For Hindustan Salts Limited h./- Sd/- (Eg.nr. ~§gb) (S.P. Bansal) AÜ`j Ed§ à~§YZ {ZXoeH$ Chairman and Managing Director {ZXoeH$ nhMmZ g§»`m… 07239609 DIN : 07239609 ñWmZ … O`nwa Place : Jaipur {XZm§H$ … 28.09.2018 Date : 28.09.2018

68 H$m°anmoaoQ> JdZ}Ýg à_mU-nÌ CERTIFICATE ON CORPORATE GOVERNANCE

ào{f{V, To, gXñ`JU, The Members of {hÝXþñVmZ gmëQ²>g {b{_Q>o‹S> Hindustan Salts Limited O`nwa& Jaipur h_Zo {hÝXþñVmZ gmëQ²>g {b{_Q>o‹S> (H$ånZr) Ho$ 31 We have examined the compliance of the _mM©, 2018 H$mo g_má df© Ho$ {bE ^maV gaH$ma, ^mar CÚmoJ conditions of Corporate Governance by Ed§ bmoH$ CÚ_ _§Ìmb`, bmoH$ CÚ_ {d^mJ, Ûmam Ho$ÝÐr` Hindustan Salts Limited(‘the Company’)for gmd©O{ZH$ joÌ Ho$ CnH«$_m| Ho$ {bE H$mnm}aoQ> JdZ]g na Omar the financial year ended on 31stMarch, 2018, as stipulated in the Guidelines on Corporate _mJ©X{e©H$m _| d{U©V Ho$ AZwgma H$mnm}aoQ> JdZ]g H$s eVm] H$s Governance by Central Public Sector AZwnmbZm H$s Om±M H$s h¡& ("_mJ©X{e©H$m') Enterprises issued by Government of India, Ministry of Heavy Industries and Public Enterprises, Department of Public Enterprises (‘the Guidelines’). h_Zo H${WV H$ånZr H$s H$mnm}aoQ> Jd©Z|g na à{VdoXZ/ We have studied the Report on Corporate [anmoQ>© H$m AÜ``Z {H$`m Ed§ H$ånZr Ûmam g§~§{YV AZwa{jV Governance of the said Company and also XñVmdoO Ed§ A{^boIm| Ed§ Bg g§X^© _| h_mar g_rjm Ho$ {bE examined the relevant records and documents maintained by the Company and furnished to h_| àñVwV {H$E JE H$s, Om±M ^r H$s h¡& us for our review in this regard.

h_ H$WZ H$aVo h¢ {H$ H$ånZr Ho$ à~§YZ H$s {Oå_oXmar h¡ We state that the compliance of conditions {H$ H$m°nm}aoQ> JdZ]g H$s eVm] H$s AZwnmbZm gw{ZpíMV H$ao& of Corporate Governance is the responsibility H$m°nm}aoQ> JdZ]g H$s eVm] H$s AZwnmbZm gw{ZpíMV H$aZo Ho$ of Management of the Company. Our {bE H$ånZr Ûmam Om±M AmYm[aV AnZmB© JB© à{H«$`m Ed§ examination was limited to review of the {H«$`mÝd`Z H$s g_rjm VH$ h_mar Om§M gr[_V h¡& procedures and implementation thereof on test basis, adopted by the Company, for ensuring the compliance with the conditions of Corporate Governance. h_mar gå_{V Ed§ h_mar A{YH$V_ gyMZm Ed§ h_| {XE In our opinion and to the best of our JE ñnîQ>rH$aU Ho$ AZwgma, h_ à_m{UV H$aVo h¢ {H$ {ZXoeH$ information and according to the explanation _ÊS>b Ho$ JR>Z H$s eVm] Ho$ A{V[aŠV g^r _hËdnyU© nhbwAm| given to us, we certify that the Company has Ho$ g§X^© _| _mJ©X{e©H$m _| {ZYm©[aV H$s JB© eVm] H$s H$ånZr Zo complied with the conditions as stipulated in AZwnmbZm H$s h¡& ñdV§Ì {ZXoeH$m| H$s {Z`wpŠV Ed§ Cggo the Guidelines in all material respect except the conditions of composition of the Board,

69 g§~§{YV eV} … boIm narjm g{_{V Ho$ AÜ`j H$s dm{f©H$ appointment of Independent Directors & gmYmaU g^m _| CnpñW{V Ed§ nm[al{_H$ g{_{V H$m JR>Z Z conditions related thereto, Periodically review hmoZm h¡& of risk management policy by Board, Training programme for its new Board Members, Meeting of Audit Committee & conditions related thereto and non-constitution of remuneration committee. BgHo$ A{V[aŠV h_ `h H$WZ H$aVo h¢ {H$ h_Zo {dÎmr` We further state that we have not verified A{^boIm| H$s Cn`wŠVVm Ed§ gË`Vm H$mo Zht Om±Mm h¡ Ed§ `h the correctness and appropriateness of Z Vmo A§Ho$jU h¡ Am¡a Z hr H$ånZr Ho$ {dÎmr` {ddaUm| na am` financial records and it is neither an audit nor H$s A{^ì`pŠV h¡ Am¡a Eogr AZwnmbZm/H$ånZr Ho$ ^{dî` H$s an expression of opinion on the financial ì`dhm`©Vm H$o {bò Z Vmo AmídmgZ h¡ Am¡a Z hr à~§YZ Ûmam statements of the Company and also such compliance is neither an assurance as to the {H$ò Jò H$ånZr Ho$ H$m`m] Ho$ {bò XjVm Ed§ à^mdr H$X_ h¡& further viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company. dmñVo EM. {Z{VZ EÊS> Egmo{gEQ²>g For H Nitin & Associates H$ånZr g{Md Company Secretaries AmB© gr Eg AmB© H$moS> AmB©- 2013, ICSI-Code-I2013 Ama Oo- 1000800 RJ1000800

({Z{VZ hmoVM§XmZr) (Nitin Hotchandani) gmPoXma Propritor E_.Z§. 31254 M. No. 31254 grnr Z§. 11673, CP No. 11673 ñWmZ … O`nwa Place: Jaipur {XZm§H$ … 18 AJñV, 2018 Date: Aug 18, 2018

70 {hÝXþñVmZ gm°ëQ²>g {b{_Q>oS> O`nwa Ho$ 31 _mM©, 2018 H$mo COMMENTS OF THE COMPTROLLER AND g_má g_o{H$V {dËVr` {ddaUm| na H$ånZr A{Y{Z`_, AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READ WITH SECTION 129 (4) 2013 H$s Ymam 143(6)(~r) Ho$ AÝVJ©V ^maV Ho$ OF THE COMPANIES ACT, 2013 ON THE {Z`§ÌH$ Ed§ _hmboIm narjH$ H$s {Q>ßn{U`m± CONSOLIDATED FINANCIAL STATEMENTS OF HINDUSTAN SALTS LTD. FOR THE YEAR ENDED 31 MAR, 2018 H$ånZr A{Y{Z`_, 2013 Ho$ VhV {ZYm©[aV g_o{H$V {dÎmr` The preparation of Consolidated Financial [anmoQ>© {H$E OmZo dmbo H$m`© T>m±Mo Ho$ AZwgma 31 _mM©, 2018 H$mo Statements of Hindustan Salts Limited for the year g_má df© Ho$ {bE {hÝXþñVmZ gm°ëQ²>g {b{_Q>oS>, H$s {dÎmr` ended 31 March, 2018 in accordance with the financial reporting framework prescribed under {dda{U`m| H$s V¡`mar H$ånZr Ho$ à~§YH$m| H$s {Oå_oXmar h¡& the Companies Act, 2013 (Act) is the responsibility A{Y{Z`_ H$s Ymam 143 (10) Ho$ AYrZ Cëbo{IV A§Ho$jU of the Management of the Company. The Statutory _mZH$m| Ho$ AZwgma ñdV§Ì A§Ho$jU Ho$ AmYma na, A{Y{Z`_ H$s Auditor appointed by the Comptroller and Ymam 143 gn{R>V Ymam 129(4) Ho$ AYrZ {dËVr` {ddaUm| na Auditor General of India under Section 139(5) read gå_{V àñVwV H$aZo hoVw, A[Y{Z`_ H$s Ymam 139 (5) gn{R>V with Section 129(4) of the Act is responsible for Ymam 129 (4) Ho$ VhV ^maV Ho$ {Z`§ÌH$ Ed§ _hmboIm narjH$ expressing opinion on the financial statements Ûmam {Z`wŠV d¡Ym{ZH$ A§Ho$jH$ {Oå_oXma h¢& CZH$s boIm narjm under Section 143 read with Section 129(4) of the [anmoQ>© {XZm§H$ 23.07.2018 _| CZHo$ Ûmam Eogm H$a boZo H$m Act based on independent audit in accordance CëboI {H$`m J`m h¡& with the Standards on Auditing prescribed under Section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 23.07.2018. _¢Zo ^maV H$o {Z`§ÌH$ Ed§ _hmboIm narjH$ H$s Amoa go A{Y{Z`_ I, on the behalf of the Comptroller and Auditor H$s Ymam 143(6)(E) gn{R>V Ymam 129 (4) Ho$ VhV 31 _mM©, General of India, have conducted a supplementary 2018 H$mo g_má df© Ho$ {bE {hÝXþñVmZ gm°ëQ>g {b{_Q>oS> Ho$ audit of the Consolidated Financial Statements of g_o{H$V {dÎmr` {ddaUm| H$s nyaH$ boIm narjm H$s h¡& `h nyaH$ Hindustan Salts Limited for the year ended 31 March, 2018 under section 143(6)(a) read with section 129(4) of the boIm narjm ñdV§Ì ê$n go, gm§{d{YH$ boIm narjH$m| Ho$ H$m`© Act. We conducted This supplementary audit of the XñVmdoOm| Ho$ {~Zm Am¡a gm§{d{YH$ A§Ho$jH$m| Am¡a H$ånZr H$m{_©H$m| financial statements of Hindustan Salts Limited and H$s àma§{^H$ OmZH$mar Am¡a Hw$N> M`{ZV boIm A{^boIm| H$s Om§M Sambhar Salts Limited for the year ended on that VH$ gr{_V h¡& _oar boIm narjm Ho$ AmYma na _oao kmZ _| Eogm Hw$N> date. This Supplementary audit has been carried out _hËdnyU© Zht Am`m h¡ Omo {H$ g§d¡Ym{ZH$ A§Ho$jH$ H$s [anmoQ>© na indenpendently without access to the working nyaH$ {Q>ßnUr XoZo bm`H$ h¡& papers of ths Statutory Auditor and is limited primarily to inquiries of the statutory auditor and Company personnel and a selective examination of some of the accounting records.

71 _oar nyaH$ boIm narjm Ho$ AmYma na _¢ A{Y{Z`_ H$s Ymam 143 On the basis of my supplementary nothing, (6) (~r) gnpÊV Ymam 129 (4) Ho$ AÝVJ©V {ZåZ _hËdnyU© Significant has come to my knowledge which _m_bm| H$mo Ü`mZ _| bmZm Mmhÿ§Jr Omo {H$ _oar Ü`mZ _| bm`m J`m h¡ would give rise to any comment upon of VWm _oar gån{V _| {dÎmr` {ddaUm| Ed§ VËg§~§Yr boIm narjm supplement to statutory auditors' report under [anmoQ>© H$s AÀN>r Vah go g_PZo `mo½` ~ZmZm h¡& section 143(6)(b) of the Act.

^maV Ho$ {Z`§ÌH$ Ed§ _hmboIm For and on the behalf of the narjH$ Ho$ {bE Ed§ H$s Amoa go Comptroller & Auditor General of India h./- Sd/- (amO Hw$_ma) (Raj Kumar) àYmZ [ZXoeH$, dm{UpÁ`H$ boIm narjm Principal Director of Commercial Ed§ nXoZ gXñ` boIm narjm _ÊS>b-III Audit & Ex-officio Member, Audit Board III, ZB© {Xëbr New Delhi ñWmZ… ZB© {Xëbr Place: New Delhi {XZm§H$… 27 [gVå~a, 2018 Date: 27 September, 2018

72 g_o{H$V {dÎmr` {ddaUm| na ñdV§Ì INDEPENDENT AUDITOR'S REPORT ON CONSOLIDATED FINANCIAL boIm narjH$m| H$m à{VdoXZ STATEMENTS ào{f{V To the gXñ`JU, Members of {hÝXþñVmZ gmëQ²>g {b{_Q>o‹S>, Hindustan Salts Limited g_o{H$V {dÎmr` {ddaUm| na à{VdoXZ Report on the Consolidated Financial Statements h_Zo {hÝXþñVmZ gmëQ²>g {b{_Q>o‹S> (AmJo go ""YmaH$ H$ånZr'' We have audited the accompanying H$hm OmEJm) Ed§ BgH$s ghm`H$ H$ånZr (YmaH$ H$ånZr Ed§ Consolidated financial statements of Hindustan Salts Limited(hereinafter referred BgH$s ghm`H$ H$ånZr H$mo g§`wŠV ê$n go "g_yh' H$hm to as “the Holding Company”) and its OmEJm) H$m gpå_{bV {dÎmr` {ddaUm| H$m A§Ho$jU {H$`m h¡& subsidiary (the Holding company and its {OZ_| 31 _mM©, 2018 H$m g_o{H$V {dÎmr` pñW{V {ddaU subsidiary company together referred to as “the Group”comprising of the Consolidated VWm V~ g_má df© Ho$ {bE g_o{H$V bm^-hm{Z H$m {ddaU, Balance Sheet as at 31st March, 2018, the g_o{H$V amoH$‹S> àdmh {ddaU Ed§ _hËdnyU© boIm Zr{V`m± d Consolidated Statement of Profit and Loss and AÝ` {ddaUmË_H$ gyMZmE§ gpå_{bV h¢ (AmJo go g_o{H$V the Consolidated cash flow statement for the year then ended, and a summary of the {dÎmr` {ddaU H$hm OmEJm)& significant accounting policies and other explanatory information (hereinafter referred to as “the consolidated financial statements”) g_o{H$V {dÎmr` {ddaUm| Ho$ {bE à~§YZ H$m Xm{`Ëd Management’s Responsibility for the Consolidated Financial Statements H$ånZr A{Y{Z`_, 2013 (AmJo go ""A{Y{Z`_'' H$hm The Holding Company’s Board of Directors is OmEJm) H$s Amdí`H$VmZwgma g_o{H$V {dÎmr` {ddaUm| H$mo responsible for the preparation of these V¡`ma H$aZo H$m Xm{`Ëd YmaH$ H$ånZr Ho$ {ZXoeH$ _ÊS>b H$m h¡ consolidated financial statements in terms of the requirements of the Companies Act, 2013 Omo H$ånZr A{Y{Z`_ H$s Ymam 133 gn{R>V H$ånZr (boIm) (hereinafter referred to as “the Act”) that give a {Z`_ 2014 Ho$ {Z`_ 7 `{X bmJy hmo, Ho$ AÝVJ©V Xem©E true and fair view of the consolidated financial boIm _mZH$m| g{hV ^maV _| ñdrH$ma {H$E JE boIm {Z`_m| Ho$ position, consolidated financial performance AZwgma BgHo$ g_yh H$s g_o{H$V {dÎmr` pñW{V, g_o{H$V and consolidated cash flows of the Group in {dÎmr` {ZînmXZ Ed§ g_o{H$V amoH$‹S>> àdmh H$m ghr Ed§ C{MV accordance with the Accounting principles Ñí` àñVwV H$ao& g_yh _| gpå_{bV H$ån{Z`m| Ho$ {ZXoeH$ generally accepted in India, including the _ÊS>b H$m Xm{`Ëd h¡ {H$ do A{Y{Z`_ Ho$ àmdYmZm| Ho$ AZwgma Accounting Standards specified under section 133 of the Act, read with Rule 7 of the n`m©á boIm XñVmdoOm| H$m aIaImd H$ao& g_yh H$s gå~§{YV Companies (Accounts) Rules 2014, as n[agån{Îm`m| H$mo gwa{jV aI|, H$nQ> H$mo amoH$Zo d nVm bJmZo applicable. The respective Board of Directors

73 Ed§ AÝ` A{Z`{_ÎmmAm| hoVw Cn`wŠV boIm Zr{V`m| H$m M`Z of the companies included in the Group and of Ed§ CZH$mo bJy H$aZo hoVw C{MV Ed§ {ddoH$s AZw_mZ H$m {ZU©` its associates and Jointly Controlled are H$ao& n`m©á Am§V[aH$ {Z`§ÌU nÕ{V V¡`ma H$a {H«$`mpÝdV H$a responsible for maintenance of adequate aIaImd H$ao {Oggo boIm XñVmdoOm| H$mo ghr Ed§ nyU© hmoZm accounting records in accordance with the gw{ZpíMV H$aZo Ho$ {bE à^mdr VarHo$ go bmJy {H$`m OmE Ed§ provisions of the Act for safeguarding the assets of the Group and for preventing and Omo _w»` JbV H$WZ go _wŠV hmo Mmho H$nQ> `m JbVr go hr hmo detecting frauds and other irregularities; the Omo A§Ho$jH$m| Ho$ Xm{`Ëd _| CŠV AZwgma YmaH$ H$ånZr Ho$ selection and application of appropriate {ZXoeH$ _ÊS>b Ûmam Bg g_o{H$V {dÎmr` {ddaUm| H$mo V¡`ma accounting policies; making judgments and H$aZo hoVw Cn`moJ {H$E JE Ed§ {dÎmr` {ddaU Omo gË` d ñnîQ> estimates that are reasonable and prudent; and Ñí` àH$Q> H$ao, H$mo àñVwV H$ao& the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of these consolidated financial statements by the Board of Directors of the Company. boIm narjH$m| H$m Xm{`Ëd Auditors’ Responsibility h_mam H$V©ì` g_o{H$V {dÎmr` {ddaUm| na AnZr am` àH$Q> Our responsibility is to express an opinion on H$aZm h¡& A§Ho$jU H$m`© Ho$ Xm¡amZ, h_Zo A{Y{Z`_ Ho$ these consolidated financial statements based àmdYmZm| Ed§ BZ_| {Z{hV {Z`_m| Omo A§Ho$jU à{VdoXZ _| on our audit. While conducting the audit, we have taken into account the provisions of the g§b½Z hmoZm dm§{N>V h¡, _m_bm| Ed§ boIm|, boIm _mZH$m| VWm Act, the accounting and auditing standards A{Y{Z`_ Ho$ àmdYmZm| H$mo ImVm| _| XO© {H$`m h¡& A{Y{Z`_ and matters which are required to be included H$s Ymam 143 (10) _| {Z{X©îQ> A§Ho$jU _mZH$m| Ho$ AZwgma in the audit report under the provisions of the h_Zo AnZm A§Ho$jU {H$`m h¡& BZ _mZH$m| _| h_go A§Ho$jU H$m Act and the Rules made there under. We {ZînmXZ Ed§ H$m`©H«$_ g_o{H$V {dÎmr` {ddaU go _wŠV hmoZo H$m conducted our audit in accordance with the C{MV AmídmgZ {XE OmZo H$s Z¡{VH$ AnojmAm| H$s nmbZm Standards on Auditing specified under Section H$aZm Ano{jV h¡& 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

74 A§Ho$jU _| am{e Ed§ g_o{H$V {dÎmr` {ddaUm| Ho$ àH$Q>rH$aU Ho$ An audit involves performing procedures to ~mao _| A§Ho$jU gmú` àH$Q> H$aZo H$s {Zînj à{H«$`m obtain audit evidence about the amounts and gpå_{bV h¡& A§Ho$jH$m| Ho$ {ZU©` na g_o{H$V {dÎmr` {ddaUm| the disclosures in the consolidated financial _| _hËdnyU© JbV OmZH$mar H$s Omo{I_ Ho$ _yë`m§H$Z g{hV statements. The procedures selected depend à{H«$`m H$m M`Z {H$`m J`m h¡ Mmho H$nQ> `m JbVr Ho$ H$maU hmo on the auditor’s judgment, including the BZ Omo{I_m| H$m _yë`m§H$Z H$aZo _| A§Ho$jH$ Zo YmaH$ H$ånZr assessment of the risks of material misstatement of the consolidated financial go g§~§{YV g_o{H$V {dÎmr` {ddaUm| H$s V¡`mar Ed§ ghr statements, whether due to fraud or error. In àñVwVrH$aU Ho$ {bE AmÝV[aH$ {Z`§ÌU H$mo Ü`mZ _| aIm h¡ making those risk assessments, the auditor bo{H$Z {dÎmr` à{VdoXZ Ed§ {Z`§ÌU H$s H$m`m©Ë_H$ considers internal financial control relevant to à^mderbVm Ho$ D$na YmaH$ H$ånZr H$s n`m©á AmÝV[aH$ the Holding Company’s preparation of the {dÎmr` {Z`§ÌU nÕ{V na EH$ am` ì`ŠV H$aZo Ho$ {bE Zht h¡& consolidated financial statements that give a A§Ho$jU _| à~§YZ Ûmam ~ZmE JE boIm AZw_mZm| H$s true and fair view in order to design audit Cn`wŠVVm Ed§ Cn`moJ H$s JB© boIm Zr{V`m| H$s Cn`wŠVm Ho$ procedures that are appropriate in the _yë`m§H$Z Ho$ gmW-gmW {dÎmr` {ddaUm| H$m gånyU© circumstances but not for the purpose of àñVwVrH$aU H$m _yë`m§H$Z gpå_{bV h¡& expressing an opinion on whether the Holding Company has an adequate internal financial controls system over financial reporting in place and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Holding Company’s Board of Directors, as well as evaluating the overall presentation of the consolidated financial statements. h_ {dídmg H$aVo h¢ {H$ h_Zo Omo A§Ho$jU gmú` {bE h¢ Ed§ We believe that the audit evidence obtained by ZrMo noamJ«m\$ _| AÝ` _m_bm| na Cn-noamJ«m\$ (A) _| us and the audit evidence obtained by the gå~§{YV à{VdoXZ Ho$ AZwgma AÝ` A§Ho$jH$m| Ho$ Ûmam Omo other auditors in terms of their reports referred gmú` {bE JE h¢, do h_mar g_o{H$V {dÎmr` {ddaUm| na to in sub-paragraph (a) of the Other Matters A§Ho$jU am` XoZo Ho$ {bE Cn`wŠV Ed§ n`m©á AmYma h¡& paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements. _`m©{XV am` H$m AmYma Basis for Qualified Opinion (i) EH$b {dÎmr` {ddaU H$s {Q>ßnUr g§»`m 16 _| (i) As details in Note No.16 of standalone {XE JE AÝ` G$U Ed§ A{J«_ {ddaU Ho$ eof _| Financial statement balances carried in ^y{_ bmBg|g ewëH$ ` 54.93 bmI 2009 go other Loans & advances includes Land àmß` `mo½` h¡& Eogo ImVmo§ _| H$moB© dgybr Zht h¡ Licence fee recoverable ` 54.93 Lakh since 2009. There is no recovery in such

75 Am¡a `h am{e dgybr `mo½` Zht h¡ Š`m|{H$ Xo` account and its amount is unrecoverable AmYma na 2009 _| XO© Am` H$r [ZOr njH$mam| as income was booked on due basis in H$mo Z_H$ Ho$ CËnmXZ Ho$ {bE Xr JB© ^y{_ H$s 2009 for the lease money on land brO am{e h¡& Bg{bE ` 54.93 bmI dgybr allotted to private parties to `mo½` Zht hmoZo Ho$ H$maU àmdYmZ hmoZm Mm{hE& manufacturing of salt. Hence provision should be made for the unrecoverable amount of ` 54.93 lakh. CnamoŠVmZwgma ewÕ bm^ g§M` Ed§ Am{YŠ` H$s am{e Accordingly Net Profit and Reserve & Surplus ` 54.93 bmI go A{YH$ h¡& AÝ` G$U Ed§ A{J«_ ` 54.93 have been overtales by ` 54.93 Lakh. Other ` bmI A{YH$ h¡& n¡ao àmdYmZ g§{X½Y G$U Ed§ A{J«_ ` 54.93 Loans & Advances have been overstated by 54.93 Lakh. Provisions for Doubtful Loan & bmI go H$_ Xem©E JE h¢& Advances have been understated by ` 54.93 Lakh. _`m©{XV am` Qualified Opinion h_mar gå_{V _|, {XE JE ñnîQ>rH$aU VWm h_mar gdm}Îm_ In our opinion and to the best of our gyMZm d g_o{H$V {dÎmr` {ddaUm| na {Q>ßnUr Ho$ AZwgma CŠV information and according to the explanations d{U©V {ddaU A{Y{Z`_ Ûmam dm§{N>V ar{V go Ano{jV gyMZm given to us, except for the effects and possible effects of the matter described above in the XoVo h¡ Omo {H$ _`m©{XV am` Ho$ AZwÀN>oX (i) Ed§ (ii) _| Xem©E JE _m_bo H$m à^md Am¡a g§^m{dV à^md H$o {gdm` 31 _mM©, basis for qualified opinion paragraph, the aforesaid Consolidated financial statement 2018 VH$ H$ånZr Ho$ g_o{H$V {dÎmr` {ddaU, BgH$s give the information required bythe Act in the g_o{H$V hm{Z Ed§ Bg {XZm§H$ H$mo g_má hmoZo dmbo df© Ho$ {bE manner so required and give a true and fair BgHo$ g_o{H$V amoH$‹S> àdmh H$m ^maV _| gm_mÝ`V`m ñdrH¥$V view in conformity with the accounting boIm {gÕm§Vm| H$m nwpîQ>H$aU H$aVo hþE gË` Ed§ Cn`wŠV Ñí` principles generally accepted in India, of the àñVwV H$aVo h&¢ consolidated state of affairs of the Group as at March 31, 2018 and there consolidated loss and there consolidated cash flow for the year ended on that date. _hËd Ho$ _m_b| Emphasis of Matter h_mar am` H$mo `mo½`Vm Ho$ {~Zm Z _mZVo hþE, CnXmZ Without qualifying our opinion, attention is (godm{Zd¥[Îm bm^) Ho$ g§~§Y _| {Q>ßnUr g§»`m 1.7 Ed§ 5 H$s drawn to Note No 1.7 and 5 regarding Gratuity Amoa Ü`mZ {XbmVo hþE, nwñVH$m| _| 31.03.2018 H$mo CnXmZ (Retirement Benefit), which is not in Xm{`Ëd ` 227.73 bmI Xem©`m J`m Omo {H$ boIm _mZH$- conformity of AS-15. The liability of Gratuity as on 31.03.2018 was provided for ` 227.73 15 _| nwpîQ>H$aU Zht h¡& bo{H$Z boIm _mZH$-15 Ho$ A§VJ©V dm§{N>V H$moB© {Zdoe Zht {H$`m J`m& Lakhs in the books, but no investment was made as required under AS-15. AÝ` _m_b| Other Matter (A) h_Zo ghm`H$ H$ånZr, gm§^a gm°ëQ²>g {b{_Q>oS> Ho$ (a) We did not audit the financial statements {dÎmr` {ddaUm| H$m A§Ho$jU Zht {H$`m h¡& {OgHo$ of Sambhar Salts Limited subsidiary

76 {dÎmr` {ddaU g_o{H$V {dÎmr` {ddaUm| Ho$ AZwgma 31 company, whose financial statements _mM©, 2018 H$mo Hw$b n[agån{Îm`m§ ` 4387.83 bmI, reflect total assets of ` 4387.83 Lakhs as at Hw$b Am` `2056.68 bmI Ed§ ewÕ amoH$‹S> àdmh am{e 31st March, 2018, total revenues of ` ` 71.02 bmI àX{e©V H$aVo h&¢ ghm`H$ H$ånZr, 2056.88 Lakhs and net cash flows gm§^a gmëQ²>g {b{_Q>oS> {OgHo$ {dÎmr` {ddaU h_mao amounting to ` 71.02 Lakhs for the year Ûmam A§Ho${jV Zht {H$E JE h,¢ Ho$ g§X^© _| g_o{H$V ended on that date, as considered in the consolidated financial statements. The {dÎmr` {ddaUm| Ho$ AZwgma 31 _mM© 2018 H$mo g_má consolidated financial statements also ` dîm© Ho$ {bE g_yh H$s ewÕ hm{Z 258.11bmI H$m include the Group’s share of net loss of ` A§e ^r g_o{H$V {dÎmr` {ddaU AÝ` A§Ho$jH$m| Ûmam 258.11 Lakhs for the year ended 31st AHo${jV§ {H$E JE h¢ {OgH$m à{VdoXZ à~§YZ Ûmam h_| March, 2018, as considered in the àñVwV {H$`m J`m h¡ Ed§ ghm`H$ H$ånZr Ho$ g§X^© _| consolidated financial statements, in g_o{H$V {dÎmr` {ddaUm| na, Ohm§ VH$ am{e Ed§ respect of Sambhar Salts Limited àH$Q>rH$aU go gå~§{YV h¡, h_mar gå_{V gpå_{bV h¡ subsidiary company, whose financial Ed§ h_mar gå_{V A{Y{Z`_ H$s Ymam 143 H$s Cn statements have not been audited by us. Ymam (3) Ho$ g§X^© _|, Ohm§ VH$ CŠV ghm`H$ H$ånZr These financial statements have been go g§~§{YV h¡, nyU©V`m AÝ` A§Ho$jUm| Ho$ à{VdoXZ na audited by other auditors whose reports AmYm[aV h¡& 31.03.2018 na H$ånZr {dÎmr` {ddaUm| have been furnished to us by the Management and our opinion on the na A§Ho$jH$m| H$s gå_{V g§b½Z AZw~§Y-~ _| Xr JB© h¡& consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of subsidiary company and our report in terms of sub-sections (3) of Section 143 of the Act, insofar as it relates to the aforesaid subsidiary company is based solely on the reports of the other auditor.The opinion of the auditors of the subsidiary company on its financial statements as on 31.03.2018 is given vide annexure ‘B’enclosed. CŠV _m_bm| Ho$ g§X^© _|, {H$E JE H$m`© na h_mao `H$sZ Ed§ Our opinion on the consolidated AÝ` A§Ho$jH$m| Ho$ à{VdoXZ Ho$ g§X^© _| ZrMo {X`o JE AÝ` financial statements, and our report on {d{YH$ Ed§ {Z`m_H$ AnojmAm| na h_mao à{VdoXZ Ed§ g_o{H$V O t h e r L e g a l a n d R e g u l a t o r y {dÎmr` {ddaUm| na h_mar gå_{V g§emo{YV ahr h¡& Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors.

77 AÝ` {d{YH$ Ed§ {Z`m_H$ AnojmAm| na à{VdoXZ Report on Other Legal and Regulatory Requirements 1. H$ånZr A{Y{Z`_ 2013 H$s Ymam 143 (11) Ho$ 1. This report does not include a statement AZwgma ^maV H$s Ho$ÝÐ gaH$ma Ûmam Omar H$ånZr on the matters specified in the (boIm narjH$m| H$m à{VdoXZ) AmXoe 2016 (AmXoe) Companies (Auditor’s Report) order, _| {d{Z{X©îQ> _m_bm| na {ddaU Bg à{VdoXZ _| em{_b 2016 (“the order”), issued by the Central Zht {H$`m J`m h¡ Š`m|{H$ CnamoŠV AmXoe g_o{H$V Government of India in terms of Sub- section (11) of Section 143 of the {dÎmr` {ddaUm| na ñdV§ÌVm boIm narjH$ H$o à{VdoXZ Companies Act, 2013, since the said order Ho$ {bE bmJy Zht h¡& is not applicable to Independent Auditor’s Report on consolidated financial statements. 2. A{Y{Z`_ H$s Ymam 143(3) Ûmam Ano{jV h_ 2. As required by Section 143 (3) of the Act, à{VdoXZ H$aVo h¢ {H$… we report that: (A) h_Zo, Ohm± VH$ h_mam kmZ Ed§ {dídmg h¡, h_mao CŠV (a) We have sought and obtained all the g_o{H$V {dÎmr` {ddaU H$s boIm narjm Ho$ CX²Xoí` Ho$ information and explanations which to {bE Amdí`H$ Wm, do g^r gyMZmE§ Ed§ ñnîQ>rH$aU àmá the best of our knowledge and belief were {H$E h¢& necessary for the purposes of our audit of the aforesaid consolidated financial statements. ~) Ohm± VH$ CZ nwñVH$m| H$s h_mao Ûmam Om§M go àVrV hmoVm (b) In our opinion, proper books of account h¡, H$ånZr Ûmam h_mar gå_{V _| CŠV g_o{H$V {dÎmr` as required by law relating to preparation {ddaU H$mo V¡`ma H$aZo go g§~§{YV H$mZyZ Ûmam Ano{jV of the aforesaid consolidated financial Cn`wŠV boIm-nwñVH|$ aIr h¢& statements have been kept by the company so far as it appears from our examination of those books. g) g_o{H$V {dÎmr` pñW{V {ddaU, g_o{H$V bm^ Ed§ hm{Z (c) The Consolidated Balance Sheet, the {ddaU VWm g_o{H$V amoH$‹S> àdmh {ddaU, {OZH$m Consolidated Statement of Profit and CëboI Bg à{VdoXZ _| {H$`m J`m h¡, g_o{H$V {dÎmr` Loss and the Consolidated Cash Flow {ddaUm| Ho$ {bE bmE JE boIm-nwñVH$m| Ho$ AZwgma h¡& Statement dealt with by this Report are in agreement with therelevant books of account maintained for the purpose of preparation of theconsolidated financial statements. X) h_mar gå_{V _|, CŠV g_o{H$V {dÎmr` {ddaU, (d) I n o u r o p i n i o n , t h e a f o r e s a i d A{Y{Z`_ H$s Ymam 133 gn{R>V H$ånZr (boIm) Consolidated Financial Statements {Z`_ 2014 Ho$ {Z`_ 7 Ohm± bmJy hmo Ho$ AÝVJ©V comply with the Accounting Standards dm§{N>V boIm _mZH$m| H$s AZwnmbZm H$aVo h¢& specified under Section 133 of the Act,

78 read with Rule 7 of the Companies (Accounts) Rules, 2014, as applicable. `) gaH$mar H$ånZr hmoZo Ho$ ZmVo H$mnm}aoQ> _m_bmV _§Ìmb` (e) In terms of Notification No. G.S.R. 463(E) Ûmam Omar A{YgyMZm g§»`m OrEgAma 463 (B©) dated 05.06.2015 issued by the Ministry of {XZm§H$ 05.06.2015 Ho$ AZwgma, {ZXoeH$m| H$s Corporate Affairs, the company being Government Company , is exempt from A`mo½`Vm go g§~§{YV H$ånZr A{Y{Z`_ 2013 H$s provisions of section 164(2) of the Ymam 164(2) Ho$ àmdYmZm| go _wŠV h¡& Companies Act, 2013 regarding disqualification of Director. a) {dÎmr` [anmo{Q>ªJ na Am§V[aH$ {dÎmr` {Z`§ÌU H$s (f) With respect to adequacy of the internal n`m©áVm Ho$ g§~§Y _| Am¡a Eogo {Z`§ÌU na àM{bV à^md financial controls over financial reporting Ho$ g§~§Y _| AbJ go h_mar [anmoQ>© AZw~§Y-"A' _| Xr JB© and the operating effectiveness of such h¡ Omo {H$ H$ånZr H$o boIm narjm à{VdoXZ H$ånZr Ed§ controls; refer to our separate report in BgH$s ghm`H$ H$ånZr, Omo {H$ ^maV _| {ZJ©{_V h¡ annexure “A”, which is bases on the Auditors’ Report of the company and its h_mar [anmoQ>© {dÎmr` à{VdoXZ na Am§V[aH$ {dÎmr` subsidiary companies incorporated in {Z`§ÌU Ho$ n[aMm{bV à^md Ed§ n`m©áVm na Ag§emo{YV India. Our report expresses an am` ì`ŠV H$aVr h¡& unmodified opinion on the adequacy and operating effectiveness of the internal finance control over financial reporting of the company and its subsidiary company incorporated in India. b) H$ånZr (A§Ho$jU Ed§ A§Ho$jH$) {Z`_ 2014 Ho$ {Z`_ (g) With respect to the other matters to be 11 Ho$ AZwgma A§Ho$jH$m|§ Ho$ à{VdoXZ _| AÝ` {df`m| H$mo included in the Independent Auditor’s gpå_{bV H$aZo Ho$ g§~§Y _| h_mar gå_{V Ed§ h_mar Report in accordance with rule 11 of the A{YH$V_ gyMZm Ed§ h_| Xr J`r ì`m»`m Ho$ AZwgma…- Companies (Audit and Auditors) Rules 2014, in our opinion and to best of our i n f o r m a t i o n a n d a c c o r d i n g t o explanations given to us: i) g_yh Zo 31 _mM©, 2017 H$s {Q>ßnUr g§»`m 28 (i), i) The Group has disclosed the impact of (ii), (iii) (xi) Ed§ (x) _| g§X{^©V AnZo g_o{H$V pending litigations on its financial {dÎmr` {ddaU na bpå~V _wH$X_o~mOr Ho$ à^md H$mo position in its Consolidated financial àH$Q> {H$`m h¡& statements as referred to in Note No. 28 (i), (ii) ,(iii) (viii) & (xi) of 31 March 2018. ii) g_yh Ho$ nmg ì`wËnÞ AZw~§Y Omo {H$gr ^r {dH$Q> hm{Z ii) The Group did not have any long term H$s Amoa bo OmZo g{hV H$moB© ^r XrK©H$mbrZ AZw~§Y Zht contract including derivative contracts h¡& for which there were any material

79 foreseeable losses. iii) g_yh na H$moB© ~H$m`m Zht h¡ Omo {ZdoeH$ {ejm Am¡a iii) The Group does not have any dues that g§ajU H$mof _| ñWmZm§V[aV H$aZm Ano{jV hmo& are required to be transferred to the Investor Education and Protection Fund. (iv) {d{eîQ> ~¢H$ ZmoQ> na àH$Q>rH$aU H$s {Q>ßnUr H$s 31 iv) The reporitng on disclosures relating to _mM© 2018 H$mo g_má hþE df© na bmJy Zht h¡& specified bank notes is not applicable to the company for the year ended march 31, 2018.

dmñVo EM.gr. ~moWam EÊS> Egmo{gEQ²>g For H.C. Bothra & Associates MmQ>©S> boImH$ma Chartered Accountants g§ñWm n§Or`Z g§»`m… 008950 gr Firm Registration No: 008950C ({Xbrn MÝX AJ«dmb) (Dilip Chand Agarwal) gmPoXma gXñ`Vm g§»`m…- 079983 Partner Membership No: - 079983 ñWmZ… O`nwa Place: JAIPUR {XZm§H$… 23.07.2018 Date: 23 July, 2018

80 AZw~§Y-"A' ñdV§Ì boIm narjH$ Annexure "A" To The H$s [anmoQ>© H$m Independent Auditor' Report

81 and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act. boIm narjH$m| H$s {Oå_oXmar Auditors’ Responsibility h_mar {Oå_oXmar h_mao boIm narjm Ho$ AmYma na {dÎmr` Our responsibility is to express an opinion on [anmo{Q>ªJ na H$ånZr H$s${dÎmr` Am§V[aH$ [anmo{Q>ªJ na EH$ am` the Company's internal financial controls over ì`ŠV H$aZm h¡& h_ EH$ hX VH$ {dÎmr` [anmo{Q>ªJ na Am§V[aH$ financial reporting based on our audit. We {dÎmr` {Z`§ÌU H$m boIm narjm H$mo bmJy H$aZo Ho$ {bE boIm conducted our audit in accordance with the Standards on Auditing, prescribed under narjm na _mZH$ Ho$ AZwgma h_mar boIm narjm H$ånZr section 143(10) of the Act, and the Guidance A{Y{Z`_ 2013 H$s Ymam 143(10) Ho$ VhV {ZYm©[aV h¡ Note, to the extent applicable to an audit of Am¡a _mJ©X[e©H$m {Q>ßnUr H$m Am`moOZ {H$`m& CZ _mZH$m| Am¡a internal financial controls over financial _mJ©X[e©H$m {Q>ßnUr H$s Amdí`H$VmZwgma h_Zo Z¡{VH$ reporting. Those Standards and the Guidance Amdí`H$VmAm| Am¡a `moOZm Ho$ AZwê$n nmbZm H$s h¡ Am¡a boIm Note require that we comply with the ethical narjH$ H$m H$m`© {dÎmr` [anmo{Q>ªJ na n`m©á Am§V[aH$ {dÎmr` requirements and plan and perform the audit {Z`§ÌU ñWm{nV {H$`o OmZo Ho$ {bE C{MV AmdídmgZ àmá to obtain reasonable assurance about whether {H$`m Omo {H$ g^r _hËdnyU© _m_bm| _| à^mdr T>§J go h_mar adequate internal financial controls over boIm narjm H$r {dÎmr` [anmo{Q>ªJ na Am§V[aH$ {Z`§ÌU àUmbr financial reporting was established and H$s n`m©áVm Am¡a CZHo$ n[aMmbZ à^md Ho$ ~mao _| boIm narjm maintained and if such controls operated gmú` àmá H$aZo H$s à{H«$`m _| em{_b h¡& {dÎmr` [anmo{Q>ªJ na effectively in all material respects. Our audit involves performing procedures to {dÎmr` Am§V[aH$ {Z`§ÌU H$s h_mar boIm narjm {dÎmr` obtain audit evidence about the adequacy of [anmo{Q>ªJ na Am§V[aH$ {Z`§ÌU H$s EH$ g_P àmá H$aZo, the internal financial controls system over Omo{I_ Omo {H$ EH$ gm_J«r H$_Omoar go _m¡OyX h¡ Am¡a narjU financial reporting and their operating H$m Am§H$bZ H$aZo Am¡a {S>OmBZ Ho$ _yë`m§H$Z Am¡a g§MmbZ H$m effectiveness. Our audit of internal financial _yë`m§H$Z Omo{I_ Ho$ AmYma na Am§V[aH$ {Z`§ÌU H$s controls over financial reporting included à^mderbVm em{_b Wo, à{H«$`mAm| go M`{ZV boIm narjH$ obtaining an understanding of internal Ho$ \¡$gbo na {Z^©a H$aVr h¡ {dÎmr` ~`mZ H$s gm_J«r JbV financial controls over financial reporting, ~`mZ Ho$ Omo{I_ Ho$ Am§H$bZ Mmho H$maU YmoImY‹S>r `m Ìw{Q> Ho$ assessing the risk that a material weakness {bE ^r em{_b h¡& exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. h_ _mZVo h¢ {H$ boIm narjm gmú` h_Zo VWm ^maV _| We believe that the audit evidence we have {ZJ©{_V BgH$s ghm`H$ H§$nZr Ho$ AÝ` A§Ho$jH$ O¡gm {H$ obtained and the audit evidence obtained by CZH$s [anmoQ>© H$mo AÝ` _m_bo AZwÀN>oX _| {ZåZmZwgma ~Vm`m h¡ the other auditors of the subsidiary company 82 dh {dÎmr` [anmo{Q>ªJ na Am§V[aH$ {dÎmr` {Z`§ÌU àUmbr na incorporated in India, in terms of their reports h_mar boIm narjm H$s am` Ho$ {bE EH$ AmYma àXmZ H$aZo Ho$ referred to in the other matter paragraph {bE n`m©á Am¡a C{MV h¡& below is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting. {dÎmr` [anmo{Q>ªJ na Am§V[aH$ {dÎmr` {Z`§ÌU H$m VmËn`© Meaning of Internal Financial Controls over Financial Reporting {dÎmr` [anmo{Q>ªJ na H$ånZr H$s Am§V[aH$ {dÎmr` {Z`§ÌU Ed§ A company's internal financial control over à{H«$`m, {dÎmr` [anmo{Q>ªJ H$s {dídgZr`Vm Am¡a Am_Vm¡a na financial reporting is a process designed to ñdrH$m`© boIm§H$Z {gÕm§Vm| Ho$ AZwgma ~mhar à`moOZm| Ho$ {bE provide reasonable assurance regarding the {dÎmr` dŠVì` H$s V¡`mar Ho$ g§~§Y _| C{MV AmídmgZ àXmZ reliability of financial reporting and the H$aZo Ho$ {bE ~Zm`m J`m h¡& {dÎmr` [anmo{Q>ªJ na H$ånZr H$s preparation of financial statements for external purposes in accordance with generally Am§V[aH$ {dÎmr` {Z`§ÌU CZ Zr{V`m| Am¡a à{H«$`mAm| H$s h¡& accepted accounting principles. A company's (1) A{^boIm| Ho$ aIaImd go g§~§{YV h¡ Omo {H$ C{MV internal financial control over financial {dñVma go, ghr Am¡a H$m\$s boZXoZ Ed§ H$ånZr H$s g§n{Îm Ho$ reporting includes those policies and ñd^md H$mo à{V{~på~V em{_b h¡& (2) C{MV AmídmgZ {X`m procedures that (1) pertain to the maintenance h¡ {H$ boZXoZ H$mo ñdrH$m`© boIm§H$Z {gÕm§Vm| Ho$ AZwgma of records that, in reasonable detail, accurately {dÎmr` dŠVì`m| H$s V¡`mar H$s AZw_{V Ho$ {bE XO© H$a aho h¢ and fairly reflect the transactions and Ed§ H$ånZr H$s àm{á`m± Ed§ ì`` H$mo à~§YZ Ed§ H$ånZr Ho$ dispositions of the assets of the company; (2) {ZXoeH$ Ho$ Ûmam A{YH¥$V H$aZo Ho$ ~mX {H$`m OmVm h¡& (3) provide reasonable assurance that H$ånZr H$s gån{Îm Ho$ ~mao _| `h AmídmgZ {X`m J`m {H$ transactions are recorded as necessary to AZm{YH¥$V A{YJ«hU Ho$ {bE C{MV amoH$Wm_, Cn`moJ `m permit preparation of financial statements in accordance with generally accepted g§n{Îm Ho$ ñd^md, Omo {H$ {dÎmr` {ddaU na _hËdnyU© à^md accounting principles, and that receipts and S>mbVm hmo& expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. {dÎmr` [anmo{Q>ªJ na Am§V[aH$ {dÎmr` {Z`§ÌU H$s {Z{hV Inherent Limitations of Internal Financial gr_mE§$ Controls over Financial Reporting {dÎmr` [anmo{Q>ªJ na Am§V[aH$ {dÎmr` {Z`§ÌU, {_br^JV `m Because of the inherent limitations of internal financial controls over financial reporting, {Z`§ÌU Ho$ AZw{MV à~§YZ, KQ>Zm, _hËdnyU© JbV {ddaU

83 {Oggo YmoImY‹S>r H$s g§^mdZm hmoVr h¡ Am¡a Zht hmo gH$Vr h¡, including the possibility of collusion or H$s {Z{hV gr_mAm| H$m nVm bJmZo hoVw Ed§ BgHo$ Abmdm improper management override of controls, ^{dî` H$s Ad{Y Ho$ {bE {dÎmr` [anmo{Q>ªJ na Am§V[aH$ {dÎmr` material misstatements due to error or fraud {Z`§ÌU Ho$ {H$gr ^r _yë`m§H$Z Ho$ {bE AZw_mZm| Ho$ Omo{I_ Ho$ may occur and not be detected. Also, AYrZ h¡ Š`m|{H$ {dÎmr` [anmo{Q>ªJ na Am§V[aH$ {dÎmr` {Z`§ÌU projections of any evaluation of the internal H$s pñW{V`m| _| ~Xbmd An`m©á hmo gH$Vm h¡ `m Zr{V`m| Ed§ financial controls over financial reporting to future periods are subject to the risk that the à{H«$`mAm| Ho$ AZwnmbZm H$s pñW{V Iam~ hmo gH$Vr h¡& internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. _`m©{XV am` Qualified Opinion h_| Xr J`r OmZH$mar Am¡a ñnîQ>rH$aU Ho$ AZwgma Am¡a h_mar According to the information and boIm narjm Ho$ AmYma na {ZåZ{b{IV _hËdnyU© H${_`m± 31 explanations given to us and based on our _mM©, 2018 {MpÝhV H$s JB© h¡…- audit, the following material weaknesses have been identified as at March 31, 2018: (A) H$ånZr _| AMb gån{Îm`m| Am¡a ñH$ÝY H$m Amd{YH$ a) The company has no written ^m¡{VH$ gË`mnZ Ho$ {bE H$moB© {b{IV Zr{V`m± Am¡a policies and procedures for à{H«$`mE± Zht h¡& df© Ho$ Xm¡amZ AMb gån{Îm`m| Am¡a periodical physical verification of am_ZJa B©H$mB© Ho$ Z_H$ ñH$ÝY H$m ^m¡{VH$ gË`mnZ fixed assets and inventories and also during the year under consideration Zht {H$`m J`m h¡& no physical verification of fixed assets and salt stock at Ramnagar unit has been conducted by us. h_mar am` _| CnamoŠV à^md Ho$ Abmdm/_hËdnyU© H$_Omo[a`m| In our opinion, except for the effects/possible Ho$ {Z`§ÌU _mnXÊS> Ho$ CÔoí`m| H$s àm{á na CnamoŠV d{U©V Ho$ effects of the material weaknesses described g§^m{dV à^mdr, H$ånZr Ho$ g^r _hËdnyU© _m_bm|, {dÎmr` above on the achievement of the objectives of the control criteria, the Company has [anmo{Q>ªJ Am¡a Bg Vah Ho$ Am§V[aH$ {dÎmr` {Z`§ÌU na n`m©á maintained, in all material respects, adequate {Z`§ÌU ~ZmE aIm J`m h¡& {dÎmr` [anmo{Q>ªJ na _mJ©X{e©H$m _| internal financial controls over financial ~Vm`o J`o _mnXÊS> na ^maV _| {ZJ{_V H$ånZr Ed§ BgH$s reporting and such internal financial controls ghm`H$ H$ånZr _| Am§V[aH$ {Z`§ÌU Ho$ Amdí`H$ KQ>H$m| na over financial reporting were operating {dMma H$aHo$ Cgo 31 _mM©, 2018 H$mo à^mdr T>§J go H$m_ H$a effectively as at March 31, 2018, based on the aho& internal control over financial reporting criteria established by the Company and its subsidiary company incorporated in India considering the essential components of internal control stated in the Guidance Note.

84 h_Zo _hËdnyU© H${_`m| H$s nhMmZ Am¡a Cggo D$na H$s gyMZm We have considered the material weaknesses H$s àH¥${V g_` H$m {ZYm©aU H$aHo$ hr Cgo 31 _mM©, 2018 identified and reported above in determining Ho$ H$ånZr Ho$ {dÎmr` {ddaUm| H$s boIm narjU H$s Om±M H$mo the nature, timing, and extent of audit tests applied in our audit of the March 31, 2018 bmJy H$aVo hþE H$s h¡ Am¡a BZ _hËdnyU© H${_`m| H$m ^maV _| financial statements of the Company, and {ZJ{_V H$ånZr Ed§ BgH$s ghm`H$ H$ånZr Ho$ {dÎmr` {ddaUm| these material weaknesses does not affect our na Xr JB© am` na H$moB© à^md Zht n‹S>m h¡& opinion on the financial statements of the Company and its subsidiary company incorporated in India AÝ` _m_b| Other Matter (A) h_Zo ghm`H$ H$ånZr gm§^a gmëQ²>g {b{_Q>o‹S> Ho$ {dÎmr` (a) We did not audit the financial statements of {ddaUm| H$m A§Ho$jU Zht {H$`m h¡ BgHo$ {dÎmr` {ddaU AÝ` Sambhar Salts Limited subsidiary company, boIm narjH$ Ûmam Om±Mo J`o {OgH$s [anmoQ>© h_| à~§YH$m| Ûmam these financial statements have been audited by other auditors whose reports have been àñVwV H$s J`r Am¡a h_mar g_o{H$V {dÎmr` {ddaUm| na am` furnished to us by the Management and our A{Y{Z`_ H$s Ymam 143 (3)(i) Ho VhV {XE JE h_mao opinion on the consolidated financial à{VdoXZ go g§~§{YV Am¡a CnamoŠVmZwgma ghm`H$ H$ånZr go statements, in so far as it relates to our report in g§~§{YV AÝ` boIm narjH$ Ho$ à{VdoXZ na nyU©V… AmYm[aV terms of Section 143(3)(i) of the Act, insofar as it h¡& ghm`H$ H$ånZr Ho$ boIm narjH$ Ho$ Ûmam 31 _mM©, 2018 relates to the aforesaid subsidiary company is Ho$ {dÎmr` {ddaUm| na Xr J`r am` h_mar ñdV§Ì [anmoQ>© Ho$ based solely on the reports of the other auditor. The opinion of the auditors of the subsidiary AZwÀN>oX "~' H$m AZwÀN>oX "g' g§b½Z h¡& company on its financial statements as on 31.03.2018 is given vide annexure “C” of “annexure B of our independent auditors report” enclosed. Am§V[aH$ {dÎmr` {Z`§ÌU na Xr J`r am` H$mo CnamoŠV _m_bm| Our opinion on the internal finance control is Ho$ g§X^© _| Am¡a AÝ` boIm narjH$ Ho$ à{VdoXZ na h_mao not modified in respect of the above matters {dídmg H$mo g§emo{YV Zht {H$`m J`m h¡& with respect to our reliance on the work done and the reports of the other auditors.

dmñVo EM.gr. ~moWam EÊS> Egmo{gEQ²>g For H.C. Bothra& Associates MmQ>©S>© boImH$ma Chartered Accountants (\$_© n§OrH$aU g§. 008950 gr) Firm Registration No: 008950C (Dilip Chand Agarwal) ({Xbrn MÝX AJ«dmb) Partner Membership No: - 079983 gmPoXma gXñ` g§. 079983

ñWmZ… O`nwa Place: JAIPUR {XZm§H$… 23 OwbmB©, 2018 Date: 23 July, 2018

85 AZw~Õ-~ ANNEXURE-B ñdV§Ì A§Ho$jH$m| H$m à{VdoXZ INDEPENDENT AUDITOR’S REPORTS

ào{f{V To gXñ`JU, The Members of gm§â gmëQ²>g {b{_Q>o‹S> SAMBHAR SALTS LIMITED {dÎmr` {ddaUm| na à{VdoXZ Report on the Financial Statements h_Zo gm§â gmëQ²>g {b{_Q>oS> (H$ånZr) H$m gpå_{bV {dÎmr` We have audited the accompanying financial {ddaUm| H$m A§Ho$jU {H$`m h¡ {OZ_| 31 _mM©, 2018 H$m statements of Sambhar Salts Limited(“the {dÎmr` pñW{V {ddaU, V~ g_má df© Ho$ {bE bm^ Ed§ hm{Z company”) which comprise the Balance Sheet H$m {ddaU, amoH$‹S> àdmh {ddaU, _hËdnyU© boIm Zr{V`m§ Ed§ as at 31st March, 2018, the Statement of Profit and Loss and the cash flow statement for the AÝ` {ddaUmË_H$ gyMZmE§ gpå_{bV h¢& year then ended, and a summary of the significant accounting policies and other explanatory information. {dÎmr` {ddaUm| Ho$ {bE à~§YZ H$m Xm{`Ëd Management’s Responsibility for the Financial Statements {dÎmr` {ddaU H$mo V¡`ma H$aZo Ho$ g§~§Y _| H$ånZr A{Y{Z`_, The Company’s Board of Directors is 2013 (A{Y{Z`_) H$s Ymam 134(5) _| H${WV _m_bm| H$m responsible for the matters stated in section Xm{`Ëd H$ånZr Ho$ {ZXoeH$ _ÊS>b H$m h¡ Omo H$ånZr A{Y{Z`_ 134(5) of the Companies Act ,2013 (“the Act”) H$s Ymam 133 gn{R>V H$ånZr (boIm) {Z`_ 2014 Ho$ with respect to the preparation of these {Z`_ 7 O¡gm {H$ bmJy hmo Ho$ AÝVJ©V Xem©Eo boIm _mZH$m| financial statements that give a true and fair g{hV, ^maV _| ñdrH$ma {H$E JE boIm {Z`_m| Ho$ AZwgma view of the financial position, financial performance and cash flows of the Company H$ånZr H$s {dÎmr` pñW{V, {dÎmr` {ZînmXZ Ed§ amoH$‹S> àdmh in accordance with the Accounting principles H$m ghr Ed§ C{MV Ñí` àñVwV H$a|& H$ånZr Ho$ gå~pÝYV generally accepted in India, including the {ZXoeH$ _ÊS>b H$m Xm{`Ëd ^r h¡ {H$ do A{Y{Z`_ Ho$ àmdYmZm| Accounting Standards specified under section Ho$ AZwgma n`m©á boIm XñVmdoOm| H$m aIaImd H$ao, H$ånZr 133 of the Act, read with Rule 7 of the H$s gå~pÝYV n[agån{Îm`m| H$mo gwa{jV aIo, H$nQ> H$mo amoH$Zo Companies (Accounts) Rules 2014, as d nVm bJmZo Ed§ AÝ` A{Z`{_VVmAm| hoVw Cn`wŠV boIm applicable. This responsibility also includes Zr{V`m| H$m M`Z Ed§ CZH$mo bmJy H$aZo hoVw C{MV Ed§ {ddoH$s maintenance of adequate accounting records AZw_mZ H$m {ZU©` H$ao& n`m©á Am§V[aH$ {dÎmr` {Z`§ÌU nÕ{V in accordance with provision of the Act for V¡`ma H$a {H«$`mpÝdV H$a aIaImd H$ao {Oggo boIm safeguarding the assets of the company and for XñVmdoOm| H$mo ghr Ed§ nyU© hmoZm gw{ZpíMV H$aZo Ho$ {bE preventing and detecting frauds and other irregularities; the selection and application of à^mdr VarHo$ go bmJy {H$`m OmE Ed§ Omo _w»` JbV H$WZ go appropriate accounting policies; making _wŠV hmo Mmho H$nQ> `m JbVr go hr hmo Omo A§Ho$jH$m| H$m Xm{`Ëd judgments and estimates that are reasonable 86 _| Omo H$ånZr Ho$ à~§YZm| Ûmam BZ {dÎmr` {ddaUm| H$mo V¡`ma and prudent; and the design, implementation H$aZo hoVw Cn`moJ {H$E JE Ed§ {dÎmr` {ddaU Omo gË` d ñnîQ> and maintenance of the adequate internal Ðî` àH$Q> H$ao, H$mo àñVwV H$ao& financial controls, that were operating effectively for ensuring the accuracy and completeness of accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. boIm narjH$m| H$m Xm{`Ëd Auditors’ Responsibility h_mam Xm{`Ëd A§Ho$jU Ho$ AmYma na Ho$db {dÎmr` {ddaUm| na Our responsibility is to express an opinion on AnZr am` àH$Q> H$aZm h¡& these financial statements based on our audit. A§Ho$jU H$m`© Ho$ Xm¡amZ, h_Zo A{Y{Z`_ Ho$ àmdYmZm| Ed§ Bg_| We have taken into account the provisions of {Z{hV {Z`_m| Omo A§Ho$jU à{VdoXZ _| g§b½Z h¡, _m_bm| Ed§ the Act, the accounting and auditing standards boIm|, boIm _mZH$m| VWm A{Y{Z`_ Ho$ àmdYmZm| H$mo ImVm| _| and matters which are require being included XO© {H$`m h¡& in the audit report under the provision of the Act and the Rules made there under. A{Y{Z`_ H$s Ymam 143 (10) _| {Z{X©îQ> A§Ho$jU _mZH$m| Ho$ We conducted our audit in accordance with AZwgma h_Zo AnZm A§Ho$jU {H$`m h¡& BZ _mZH$m| _| h_go the Standards on Auditing specified under A§Ho$jU H$m {ZînmXZ Ed§ H$m`©H«$_ {dÎmr` {ddaU go _wŠV hmoZo Section 143(10) of the Act. Those Standards H$m C{MV AmídmgZ {XE OmZo H$s Z¡{VH$ AnojmAm| H$s nmbZm require that we comply with the ethical H$aZm Ano{jV h¡& requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. A§Ho$jU _| am{e Ed§ {dÎmr` {ddaUm| Ho$ àH$Q>rH$aU Ho$ ~mao _| An audit involves performing procedures to A§Ho$jU gmú` àH$Q> H$aZo H$s {Zînj à{H«$`m gpå_{bV h¡& obtain audit evidence about the amounts and A§Ho$jH$m| Ho$ {ZU©` na {dÎmr` {ddaUm| _| _hËdnyU© JbV the disclosures in the financial statements. The OmZH$mar H$s Omo{I_ Ho$ _yë`m§H$Z g{hV à{H«$`m H$m M`Z procedures selected depend on the auditor’s {H$`m J`m h¡, Mmho H$nQ> `m JbVr Ho$ H$maU hmo& BZ Omo{I_m| judgment, including the assessment of the risks of material misstatement of the financial H$m _yë`m§H$Z H$aZo Ho$ H$maU A§Ho$jH$ Zo {dÎmr` {ddaUm| H$s statements, whether due to fraud or error. In V¡`mar Ed§ ghr àñVwVrH$aU Ho$ {bE AmÝV[aH$ {Z`§ÌU H$mo making those risk assessments, the auditor Ü`mZ _| aIm h¡, bo{H$Z H$ånZr Ho$ {dËVr` à{VdoXZ Ed§ considers the internal financial control Am§V[aH$ {Z`§ÌU H$s H$m`m©Ë_H$ à^mderbVm na am` ì`ŠV relevant to the Company’s preparation of the H$aZo Ho$ CÔoí` Ho$ {bE Zht& A§Ho$jU _| H$ånZr Ho$ g§MmbH$m| financial statements that give a true and fair Ûmam ~ZmE JE boIm AZw_mZm| H$s Cn`wŠVVm Ed§ Cn`moJ H$s view in order to design audit procedures that JB© boIm Zr{V`m| H$s Cn`wŠVVm Ed§ Cn`moJ H$s JB© boIm 87 Zr{V`m| H$s Cn`wŠVm Ho$ _yë`m§H$Z Ho$ gmW-gmW {dÎmr` are appropriate in the circumstances, but not {ddaUm| H$m gånyU© àñVwVrH$aU H$m _yë`m§H$Z gpå_{bV h¡& for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of a c c o u n t i n g p o l i c i e s u s e d a n d t h e reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements. h_ {dídmg H$aVo h¢ {H$ h_Zo Omo A§Ho$jU gmú` {bE h¢ do We believe that the audit evidence we have {dÎmr` {ddaUm| na A§Ho$jU am` XoZo Ho$ {bE Cn`wŠV Ed§ n`m©á obtained is sufficient and appropriate to AmYma h¡& provide a basis for our audit opinion on the financial statements. gå_{V Opinion h_mar gå_{V Ed§ h_| {Xò Jò ñnîQrH$aU VWm h_mar In our opinion and to the best of our gdm}ËV_ gyMZm Ho$ AZwgma CŠV d{U©V {dÎmr` {ddaU information and according to the explanations A{Y{Z`_ Ûmam dm§{N>V ar{V go Ano{jV gyMZm XoVo h¡ Ed§ 31 given to us, the aforesaid standalone financial _mM©, 2018 H$mo H$ånZr Ho$ H$m`m] H$m Ed§ Cgr {XZm§H$ H$mo statements give the information required by g_má df© H$s BgH$s hm{Z Ed§ BgHo$ amoH$‹S> àdmh H$m ^maV _| the Act in the manner so required and give a true and fair view in conformity with the gm_mÝ`V`m ñdrH¥$V boIm {gÕmÝVm| H$m nwpîQ>H$aU H$aVo hþE accounting principles generally accepted in gË` Ed§ Cn`wŠV Ñí` àñVwV H$aVo h¡& India, of the state of affairs of the Company as at March 31, 2018, and its loss and its cash flow for the year ended on that date. _hËd Ho$ _m_bo Other Opinion h_mar gån{Îm na {~Zm Ü`mZ {XE {Q>ßnUr g§»`m E 5 (2) Ed§ Without qualifying our opinion, attention is {Q>ßnUr g§-5 Omo {H$ CnXmZ (godm{Zd¥{Îm bm^) go g§~§{YV also drawn to Note No A 5(2) and Note No. 5 h¡& na Ü`mZ AmH${f©V h¡ Omo {H$ E-Eg-15 H$s nwpîQ> Zht regarding Gratuity (Retirement Benefit), H$aVm h¡& 31.3.2018 H$mo CnXmZ H$m Xm{`Ëd é. 186.90 which is not in conformity of AS-15. The bmI H$m nwñVH$m| _| àmdYmZ {H$`m J`m {H$ÝVw E Eg-15 Ho$ liability of Gratuity as on 31.03.2018 was AÝVJ©V Ano{jV {Zdoe Zht {H$`m J`m& provided for Rs 186.90 Lakhs in the books, but no investment was made as required under AS-15. h_mar gå_{V Ed§ {XE JE ñnîQ>rH$aU VWm h_mar gdm}Îm_ In our opinion and to the best of our

88 gyMZm Ho$ AZwgma CŠV d{U©V {dÎmr` {ddaU, A{Y{Z`_ Ûmam information and according to the explanations dm§{N>V ar{V go Ano{jV gyMZm XoVo h¡ Ed§ ^maV _| gm_mÝ`V`m given to us, the aforesaid financial statements ñdrH¥$V boIm {gÕm§Vm| H$m nwpîQ>H$aU H$aVo hþE 31 _mM© give the information required by the Act in the 2018 H$mo H$ånZr Ho$ H$m`m] H$m Ed§ Cgr {XZm§H$ H$mo g_má df© manner so required and give a true and fair H$s BgH$s hm{Z Ed§ BgHo$ amoH$‹S> àdmh H$m gË` Ed§ Cn`wŠV view in conformity with the accounting Ñí` àñVwV H$aVo h¢& principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its loss and its cash flow for the year ended on that date. AÝ` {d{YH$ Ed§ {Z`m_H$ AnojmAm| na à{VdoXZ Report on Other Legal and Regulatory Requirements 1. H$ånZr A{Y{Z`_, 2013 H$s Ymam 143(11) 1. As required by the Companies (Auditor’s Ho$ÝÐr` gaH$ma Ûmam Omar A{YgyMZm H$s eVm] Ho$ Report) Order, 2016(“the Order”) issued AZwgma gaH$ma Ûmam Omar H$ånZr (boIm narjH$m| H$m by the Central Government of India in à{VdoXZ) AmXoe 2016 (AmXoe) H$s AnojmZwgma h_ terms of Section 143(11) of the Act, we AmXoe Ho$ n¡am 3 d 4 _| {d{Z©{XîQ> _m_bm| na AZw~Õ give in the Annexure “A” a statement on "A' _| {ddaU n«ñVwV H$a aho h¡& the matters specified in paragraphs 3 and 4 of the Order.

2. A{Y{Z`_ H$s Ymam 143 (5) Ûmam Ano{jV ^maV Ho$ 2. As required by section 143(5) of the Act, {Z`§ÌH$ Ed§ _hmboIm narjH$ Ûmam Omar {ZX}em| na consider the direction issued by the {dMma H$a H$ånZr Ho$ boIm| Ed§ {dÎmr` {ddaUm| na H$s Comptroller and Auditor General of J`r H$m`©dmhr Ed§ CgHo$ à^md (AZwÀN>o ~) India, the action taken thereon and its impact on the accounts and financial statements of the Company (Annexure “B”). 3. A{Y{Z`_ H$s Ymam 143(3) Ûmam Ano{jV h_ 3. As required by Section 143(3) of the Act, à{VdoXZ H$aVo h¡ {H$ … we report that: A) h_Zo, Ohm± VH$ h_mao kmZ Ed§ {dídmg h¡, h_mar (a) We have sought and obtained all the {dÎmr` {ddaU H$s boIm narjm Ho$ CÔo` Ho$ {bE information and explanations which to Amdí`H$ Wr do g^r gyMZmE§ Ed§ ñnîQ>rH$aU the best of our knowledge and belief were àmá {H$E h¢& necessary for the purposes of our audit. ~) Ohm± VH$ CZ nwñVH$m| H$s Om§M go àVrV hmoVm h¡, (b) In our opinion, proper books of account as H$ånZr Zo h_mar gå_{V _| {dÎmr` {ddaU H$mo required by law relating to preparation of V¡`ma H$aZo _| g§~§{YV H$mZyZ Ûmam Ano{jV the financial statements have been kept boIm-nwñVH|$ aIr h¢& by the company so far as it appears from our examination of those books.

89 g) {dÎmr` pñW{V {ddaU, bm^ Ed§ hm{Z {ddaU (c) The Balance Sheet, Statement of Profit and VWm amoH$‹S> àdmh {ddaU, {OZH$m CëboI Bg Loss and the Cash Flow Statement dealt à{VdoXZ _| {H$`m J`m h¡, {dÎmr` {ddaUm| Ho$ {bE with by this Report are in agreement with bmE JE boIm-nwñVH$| BZ {dÎmr` {ddaUm| H$mo the books of account maintained for the V¡`ma H$aZo Ho$ CÔoí` go aIr JB© h¡, Ho$ AZwgma purpose of preparation of these financial h¡& statements. X) h_mar gå_{V _|, A{Y{Z`_ H$s Ymam 133 (d) In our opinion, the aforesaid Financial gn{R>V H$ånZr (boIm) {Z`_ 2014 Ho$ {Z`_ Statements comply with the Accounting 7 Ho$ AÝVJ©V dm§{N>V boIm _mZH$m|, {dÎmr` Standards specified under Section 133 of {ddaU AZwnmbZm H$aVo h¢& the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, as applicable. `) gaH$mar H$ånZr hmoZo Ho$ ZmVo, H$mnm}aoQ> _m_bmV (e) In terms of Notification No. G.S.R. 463(E) _§Ìmb` Ûmam Omar A{YgyMZm g§»`m dated 05.06.2015 issued by the Ministry of Or.Eg.Ama. 463 (B©) {XZm§H$ 05.06.2015 Corporate Affairs, the company being Ho$ AZwgma, {ZXoeH$m| H$s A`mo½`Vm go gå~§{YV Government Company , is exempt from H$ånZr A{Y{Z`_, 2013 H$s Ymam 164(2) provisions of section 164(2) of the Companies Act, 2013 regarding Ho$ àmdYmZmo§ go _wŠV h¡& disqualification of Director. a) H§$nZr Ho$ {dÎmr` à{VdoXZm| na Am§V[aH$ {dÎmr` (f) With respect to adequacy of the internal {Z`§ÌU H$s n`m©áVm Ed§ Bg àH$ma Ho$ {Z`§ÌU financial controls over financial reporting H$s à^mderbVm h_mao AZwÀN>oX "g' _| n¥WH$ go of the company and operating h¡& effectiveness of such controls, refer to our separate report in annexure “C”. b) H$ånZr (A§Ho$jU Ed§ A§Ho$jH$) {Z`_ 2014 Ho$ (g) With respect to the other matters to be {Z`_ 11 Ho$ AZwgma A§Ho$jH$m| Ho$ à{VdoXZ _| included in the Independent Auditor’s AÝ` {df`m| H$mo gpå_{bV H$aZo Ho$ gå~§Y _| Report in accordance with rule 11 of the h_mar gå_{V Ed§ h_mar A{YH$V_ gyMZm Ed§ Companies (Audit and Auditors) Rules h_| Xr JB© ì`m»`mAm| Ho$ AZwgma…- 2014, in our opinion and to best of our i n f o r m a t i o n a n d a c c o r d i n g t o explanations given to us: i H$ånZr Zo 31 _mM© 2018 H$s {Q>ßnUr g§»`m i) The company has disclosed the 24 A (2) _| g§X{^©V AnZo {dÎmr` {ddaU _| impact of pending litigations on its AnZr {dÎmr` pñW{V na bpå~V _wH$X_o~mOr Ho$ financial position in its financial à^md H$mo àH$Q> {H$`m h¡& statements as referred to in note no. 24 A (2) of 31 March 2018. iii H$ånZr Ho$ nmg ì`wËnÞ AZw~§Y g{hV H$moB© ^r ii) The Company did not have any long 90 XrK©H$mbrZ AZw~§Y Zht h¡, Omo {H$gr ^r term contract including derivative _hËdnyU©> ZwH$gmZ H$s Amoa bo OmE& contracts for which there were any material foreseeable losses. iii H$ånZr na H$moB© ~H$m`m Zht h¡ Omo {Zdoe {ejm iii) The Company does not have any Am¡a g§ajU {Z{Y _| ñWmZmÝV[aV H$aZm dues that are required to be Ano{jV hmo& transferred to the Investor Education and Protection Fund. iv {d{eîQ> ~¢H$ ZmoQ> na àH$Q>rH$aU H$s {Q>ßnUr H$s iv) The reporting on disclosure 31 _mM©, 2018 H$mo g_má hþE df© na bmJy Zht Relating to specified bank note is not h¡& applicable to the company for the year ended March 31, 2018

dmñVo Ama.nr. IÊS>obdmb EÊS> Egmo{gEQ²>g For R.P.Khandelwal & Associates MmQ>©S> boImH$ma Chartered Accountants g§ñWm n§Or`Z g§»`m… 001795 gr Firm Registration No: 001795C (am_ àH$me IÊS>obdmb) (Ram Prakash Khandelwal) gmPoXma Partner Membership No :- 071002 gXñ`Vm g§»`m…- 071002

91 ñdV§Ì boIm narjH$ H$s [anmoQ>© H$m AZw~§Y-A Annexure-A to the Independent Auditor's Report (AÝ` H$mZyZr Am¡a {d{Z`m_H$ Anojm na erf©H$ na h_mar Bgr {XZm§H$ H$s [anmoQ>© Ho$ n¡am 1 _o {Z{X©îQ> [anmoQ>©) (Referred to in paragraph 1 under the heading “Report on Other Legal & Regulatory Requirement’ of our report of even date)

gm§â gmëQ²>g {b{_Q>o‹S> (H§$nZr) Ho$ g§~§Õ _| H§$nZr Report on Companies (Auditor’s A{Y{Z`_ 2013 H$s Ymam 143 (11) Ho$ AZwgma report) Order, 2017 (“the Order”) issued by the Central Government in ^maV gaH$ma Ûmam H$ånZr na [anmoQ>© (boIm narjH$m| terms of Section 143 (11) of the H$s [anmoQ>©) AmXoe 2017 (AmXoe) Companies Act, 2013 (“the Act”) of the Sambhar Salts Limited (“the Company”) 1. H$ånZr H$s AMb gån{Îm`m| Ho$ g§~§Y _|…- 1. In respect of Company’s Fixed Assets: (A) h_| Xr JB© gyMZm Ed§ ñnîQ>rH$aU Ho$ AZwgma (a) According to the information and H§$nZr Ûmam AMb gån{Îm`m| H$s pñW{V Ed§ explanation given to us, the _mÌmË_H$ {ddaU g{hV g§nyU© {ddaU Xem©Vo hþE Company has maintained proper C{MV [aH$m°S>© aIm h¡& records showing full particulars including quantitative details and situation of the fixed assets. (~) h_| {Xò Jò ñnîQ>rH$aU Ho$ AZwgma H$ånZr Zo (b) As explained to us, the company has C{MV AÝVamb na AMb gån{Îm`m| Ho$ ^m¡{VH$ no written policy and procedures gË`mnZ Ho$ {bE H$moB© {b{IV Zr{V AWdm for physical verification of the fixed à{H«$`m Zht h¡ Ed§ df© Ho$ Xm¡amZ H§$nZr Ûmam H$moB© assets at reasonable interval and ^m¡{VH$ gË`mnZ Zht {H$`m J`m h¡& Bg{bE `{X during the year no physical H$moB© {dg§J{V`m± hmo, na H$moB© {Q>ßnUr Zht H$s& verification has been conducted by t h e c o m p a n y . H e n c e n o t commented on discrepancies if any. (g) h_| Xr JB© gyMZm Ed§ ñnîQ>rH$aU VWm h_mao Ûmam (c) According to the information and {ZarjU {H$ò Jò [aH$m°S>© Ed§ nyU© ñdm{_Ëd dmbr explanation given to us and the ^y{_ Ed§ nQ²>Q>o na gm§âboH$ _| pñWV AMb records examined by us and based gån{Îm O¡gm {H$ {dÎmr` pñW{V {ddaU {XZm§H$, on the examination of the title deeds of freehold and leasehold Ho$ g§n{Îm Ho$ ñdm{_Ëd Ho$ XñVmdoOm| Ho$ narjU Ho$ immovable property situated at

92 Sāmbhar lake as at the balance sheet date , we found the discrepancy details are as follows:-

H«$./S. {ddaU gån{Îm H$m /Titles of joÌ/Area dV©_mZ/Present {Q>ßnUr g§./No. Particlars ñdm{_Ëd/ Property pñW{V/Status Remark 1. ^y{_ nQ²>Q>o na 57,600 EH$‹S> 1. 2648 EH$‹S> ^y{_ amÁ` gaH$ma Ho$ H$moB© _yb XñVmdoO (90 dJ© _rb) gmW {ddmXmYrZ h¡& CnbãY Zht H$am`o 2. 424.80 EH$‹S> ^y{_ {ZOr Z_H$ J`o {H$ÝVw Ho$db CËnmXm| Ûmam A{VH«$_U Ho$ AYrZ h¡& \$moQ>moH$m°nr CnbãY H$am`r J`r&

Land Leasehold 57,600 Acres 1. 2648 Acres of land is under No original (90 SQ Miles) dispute with Govt. of Rajasthan, documents provide ed, but only photocop 2. 424.80 acres of land is ies provided encroached by private salt producers. 2. ^y{_ nyU© ñdm{_Ëd dmbr 660.35 EH$‹S> 1. 16.41 EH$‹S> ^y{_ amdU Q>r~m -CŠV- gm§^aboH$ _| {ddm{XV h¡& _m_bm A^r VH$ Ý`m`mb` _| b§{~V h¡& 2. ~¡J e¡S> H$s 18.12 EH$‹S> ^y{_ {ddmXmñnX h¡-_m_bm aoëdo OmoYnwa _| b§{~V h¡& 3. 23.71 EH$‹S> ^y{_ ehrXnwa Jw‹T>m gmëQ>g H$s {ddmXmñnX h¡& _m_bm g§emoYZ Ho$ {bE Zmdm± Ý`m`mb` _| h¡&

Land Freehold 660.35 Acres 1. 16.41 Acres of land is under -do- dispute with Ravantiba Sambhar lake-matter is still pending with Court 2. 18.12 acres of land is under dispute at bag shed-matter pending with Railway jodhpur. 3. 23.71 acres of land is under dispute at shaidpur Gudha Salt, Matter with Nawa Court for correction. 93 amOñWmZ gaH$ma Ûmam H$m`©aV nQ²>Q>o na Amd§{Q>V ^y{_ Ho$ No lease deed has been executed by Govt. of g§~§Y _| H$moB© _hmA{Y{Z`_ {Zînm{XV Zht {H$`m J`m h¡ {H$ÝVw Rajasthan for allotment of said leasehold land, H$ånZr Ûmam g§~§{YV dr.Q>r. H¥$îU_mMm`© Or AdmS>© H$s H$odb but the company has provided only H$sQ>r H$m_r CnbãY H$am`r J`r h¡& AdmS>© Ho$ AZwgma photocopies relating to V.T Krishnamacharya amOñWmZ gaH$ma Ûmam H${WV nQ>²Q>o na Amdm§{Q>V ^y{_ Ho$ award.As per Award Land was given to g§~§Y _| H$moB© nQ²>Q>m A{^boI {Zînm{XV Zht {H$`m J`m h¡ Company for 99 years lease by Govt. of Rajasthan on annual lease rent of Rs. 5.50 lakhs {H$ÝVw H$ånZr Ûmam dr.Q>r. H¥$îU_mMmar AdmS>© H$s Ho$db \$moQ>mo per annum and company has issued the H$m°nr CnbãY H$am`r JB© h¡& AdmS>© Ho$ AZwgma amOñWmZ 40%Shares of paid up capital of the Company. gaH$ma Ûmam H$ånZr H$mo ^y{_ 99 df© Ho$ {bE é. 5.50 bmI No lease agreement has been executed so far à{Vdf© Ho$ brO aoÝQ> na Xr J`r Wr Ed§ H$ånZr Ûmam H$ånZr with Govt. of Rajasthan, hence not commented H$s àXÎm ny§Or Ho$ 40% A§e Omar {H$`o J`o h¡& amOñWmZ on the title of land in the name of company. gaH$ma Ho$ gmW H$moB© brO EJ«r_|Q> A^r VH$ {Zînm{XV Zht {H$`m Bg{bE H$ånZr Ho$ Zm_ na ^y{_ Ho$ ñdm{_Ëd Ho$ g§~§Y _| H$moB© {Q>ßnUr Zht H$s JB© h¡& 2. ñQ>m°H$ Ho$ gå~§Y _| 2. In respect of its inventories:

(A) {dÎmr` {ddaUm| Ho$ {Q>ßnUr g§»`m A 10 _| _X (a) The inventories have been Ho$ A{V[aŠV à~§YZ Ûmam df© Ho$ Xm¡amZ ñQ>mH$ physically verified during the year H$m C{MV AÝVamb na ^m¡{VH$ gË`mnZ {H$`m by the management at reasonable J`m h¡& intervals except that of Salt as reported in Note A 10 to the financial statements. (~) h_mar gå_{V Ed§ h_| Xr JB© gyMZm Ed§ (b) In our opinion and according to the ñnîQ>rH$aU Ho$ AZwgma H§$nZr Ûmam C{MV information and explanations given A{^boI aIo J`o h¢¡ Ed§ ^m¡{VH$ gË`mnZ Ho$ to us, the Company has maintained g~§Y _| H$moB© _hËdnyU© {dg§J{V`m± Ü`mZ _| Zht proper records and no material Am`r h¡& discrepancies were noticed on physical verification. 3. A{Y{Z`_ H$s Ymam 189 Ho$ A§VJ©V H§$n{Z`m|,\$_m], 3. In respect of the Loans, secured or AÝ` njH$mam| H$mo H$ånZr Ûmam Agwa{jV AWdm unsecured granted by the company to gwa{jV G$U Ho$ g§~§Y _| a{OñQ>a _| aIo J`o h¢& companies, firms or other parties in the register maintained under section 189 of the Companies Act.

(A) (i) h_| Xr J`r gyMZm Ed§ ñnîQ>rH$aU Ho$ AZwgma (a) (i) According to the information & H§$nZr Ûmam A{Y{Z`_ H$s Ymam 189 Ho$ A§VJ©V explanations given to us, the company has not granted any loan

94 aIo Jò a{OñQ>a H$s gyMr Ho$ {H$gr njH$ma H$mo to the parties listed in the register H$moB© G$U Zht {X`m J`m h¡& maintained under section 189 of the Act, . (~) H§$nZr Zo AnZo H$_©Mm[a`m| H$mo A{J«_ H$s àH¥${V (b) The company has also given H$m G$U {X`m hþAm h¡ Omo {H$ {Z`{_V ê$n go advances in nature of loans to its ã`mO `{X H§$nZr H$s Zr{V`m| Ho$ AZwgma bmJy hmo employees which are recovered regularly together with interest if Ho$ gmW {Z`{_V ê$n go dgyb {H$`m Om ahm h¡& applicable as per company policy. 4. A{Y{Z`_ H$s Ymam 185 d 186 Ho$ àmdYmZ gaH$mar 4. The provisions of section 185 and 186 of H$ånZr hmoZo Ho$ ZmVo G$U àXmZ H$aZo, {d{Z`moJ H$aZo the Act in respect of grants of loans, VWm {gŠ`w[aQ>r d JmaÊQ>r CnbãY H$amZo g§~§Yr making investments and providing àmdYmZ bmJy Zht hmoVo& guarantees and securities is not applicable being a Government Company . 5. H$ånZr A{Y{Z`_ H$s Ymam 73 go 76 Ed§ AÝ` H$moB© 5. The company has not accepted any g§d{YV àmdYmZ VWm CgHo$ AÝVJ©V ~ZmE JE {Z`_m| deposits under the provisions of section Ho$ AZVJ©V H$ånZr Ûmam H$moB© O_m ñdrH$ma Zht H$s JB© 73 to 76 or any other relevant provisions of h¡ Ed§ H$ånZr A{Y{Z`_ Am¡a AÝ` {ZX}em| AWdm the Companies Act and the rules framed there under, and as such the question of AmXoem| H$s AZwnmbZm h¡& compliance under the Companies Act or any other directives or orders does not arise. 6. h_| Xr J`r gyMZm Ho$ AZwgma A{Y{Z`_ H$s Ymam 6. As informed to us the maintenance of cost 148 Ho$ CnYmam 1 Ho$ AÝVJ©V gaH$ma Ûmam bmJV H$m records has not been specified by the [aH$m°S>© aIo Omò H$m {d{Z{X©îQ> Zht {H$`m J`m h¡& Central Government under subsection (1) of the section 148 of the Act. 7. (A) h_| Xr JB© gyMZm Ed§ ñnîQ>rH$aU Ed§ h_mao Ûmam 7. (a) According to information and boIm nwñVH$m| Ed§ [aH$m°S>© Ho$ narjU Ho$ AmYma explanations given to us and on the basis na H$ånZr gm_mÝ`V`m {Z`{_V ê$n go of our examination of books of accounts, A{ddm{XV d¡Ym{ZH$ ~H$m`m, {OZ_| ^{dî` records, the Company has been generally {Z{Y, H$_©Mmar amÁ` ~r_m, Am`H$a, {~H«$sH$a, regular in depositing undisputed YZH$a, _yë` d{Y©V H$a, gr_m ewëH$, CËnmX statutory dues including provident fund, employees' state insurance, income-tax, ewëH$ Ed§ AÝ` d¡Ym{ZH$ ~H$m`m H$mo ^maV _| sales-tax, service tax, (GST) value added dmñV{dH$ àm{YH$m[a`m| H$mo {Z`{_V ê$n go O_m Tax, duty of customs, duty of excise and H$am ahr h¡ Ed§ H$moB© Am`H$a, {~«H«$r H$a, YZ any other statutory dues with the H$a, gr_m ewëH$, CËnmX ewëH$ Ed§ _yë`d{Y©V appropriate authorities in India and there H$a ~H$m`m am{e Xo` hmoZo H$s {V{W go 6 _mh go were no dues of income tax, sales tax, service tax, custom duty, excise duty or 95 A{YH$ Ho$ {bE H$moB© {ddmX Ho$ AmYma na ~H$m`m value added tax outstanding on account Zht h¡& of any dispute for more than 6 month from the date on when they become payable. (~) h_| Xr JB© gyMZm Ed§ ñnîQ>rH$aU Ho$ AZwgma Ed§ (b) According to the information and H§$nZr Ho$ [aH$m°S>© Ho$ h_mao Ûmam {H$ò Jò {ZarjU explanations given to us and based on the Ho$ AmYma na {ddm{XV d¡Ym{ZH$ Xo`Vm `Wm My±Jr records of the company examined by us, The disputed Statutory dues i.e Octroi H$s am{e ` 26.50 bmI, ZJanm{bH$m gm§â duty of Rs 26.50 Lakh payable to _mZZr` H$mo Xo` h¡ Omo {H$ amOñWmZ Cƒ Municipal Board, Sambhar has not been Ý`m`mb` _| _m_bm b§{~V hmoZo Ho$ H$maU O_m deposited on account of matter pending Zht H$amò Jò h¢ Ed§ CŠV d{U©V am{e 31 _mM© before Hon’ble High court of Rajasthan 2018 H$mo Xo` hmoZo H$s {V{W go 6 _mh go and the above said amount were in arrears A{YH$ Ad{Y Ho$ {bE ~H$m`m h¡& as at March31st, 2018 for a period of more than six months from the date on when they become payable. 8. h_| Xr JB© gyMZm Ed§ ñnîQ>rH$aU Ed§ h_mar am` _| 8. In our opinion and according to the H§$nZr Zo YmaH$ H§$nZr {hÝXþñVmZ gm°ëQ>g {b{_Q>o‹S> H$mo information and explanations given to us, ` 6300.24 bmI (` 3466.74 bmI ã`mO a{hV) Ho$ the company has not defaulted in the nwZ^w©JVmZ _| MyH$ Ho$ Abmdm gaH$ma AWdm ~¢H$m| H$s repayment of loans or borrowings from {H$gr ~H$m`m AWdm G$U Ho$ nwZ^©wJVmZ _| MyH$ Zht H$s Bank and Government except default in repayment of loans to Holding Company h¡& H§$nZr Zo {H$gr {dÎmr` g§ñWm go H$moB© CYma AWdm i.e. Hindustan Salts Ltd of Rs. 6300.24 G$U Zht {b`m h¡ Ed§ H$moB© G$U nÌ Omar Zht {H$ò h¡& Lakh (Including interest Rs.3466.74 Lakh). The Company does not have any loans or borrowings from financial institutions and has not issued any debentures. 9. H$§nZr$ Zo àma§{^H$ gmd©O{ZH$ àñVmd AWdm A{V[aŠV 9. The company has not raised moneys by gmd©O{ZH$ àñVmd (G$U nÌ, gmd©O{ZH$ G$U g{hV) way of initial public offer or further public Ûmam H$moB© am{e àmá Zht H$s VWm AmXoe H$s Ymam 3 offer (including Debt instruments) or (9) Ho$ AÝVJ©V à{Vdo{XV bmJy Zht h¡& term loans and hence reporting under clause 3(ix) of the order is not applicable. 10. h_mar A{YH$V_ OmZH$mar Ed§ h_| Xr J`r gyMZm Ed§ 10. To the best of our knowledge and ñnîQ>rH$aU Ho$ AmYma na H§$nZr Ûmam H$moB© H$nQ> Zht according to the information and {H$`m J`m VWm H§$nZr Ho$ {déÕ BgHo$ H$_©Mm[a`m| d explanation given by the Management, no fraud by the company and no fraud on A{YH$m[a`m| Ûmam df© Ho$ Xm¡amZ H$nQ> H$aZm Z Vmo the company by its officers or employees OmZH$mar _| bm`m J`m Am¡a Z hr à{Vdo[XV {H$`m J`m& has been noticed or reported during the year.

96 11. My§{H$ H§$nZr ^maV gaH$ma H$s H§$nZr h¡ VWm A{Y{Z`_ 11. As the company is Government Company H$s Ymam 197 Ho$ VhV {d{eîQ> Ny>Q> àXmZ H$s J`r h¡& and specific exemption has been given AV… AmXoe H$s Ymam 3(xi) Ho$ AÝVJ©V à{Vdo{XV from Section 197 of the Act, hence {H$`m OmZm bmJy Zht h¡& reporting under clause 3(xi) of the order is not applicable

12. My§{H$ H$ånZr EH$ {Z{Y H§$nZr Zht h¡& AV… AmXoe H$s 12. As the company is not Nidhi Company, Ymam 3 (xii) Ho$ AÝVJ©V à{Vdo{XV {H$`m OmZm bmJy hence reporting under clause 3(xii) of the Zht h¡& order is not applicable 13. h_mar gå_{V Ed§ h_| Xr JB© gyMZm Ed§ ñnîQ>rH$aU Ho$ 13. In our opinion and according to the AZwgma A{Y{Z`_ H$s Ymam 177 Ed§ 188 H$s information and explanation given to us, AZwnmbZm _| Ohm± H$ht bmJy hmo gå~pÝYV njH$mam| Ho$ the company is in compliance with section gmW g^r ì`dhmam| H$m {ddaU {dÎmr` {ddaUm| _| boIm 177 and 188 of the Act, where applicable, _mZH$m| Ho$ VhV Ano{jV àH$Q> {H$ò h¢& for all transaction with the related parties and the details of related parties transactions have been disclosed in the financial statements as required by the applicable accounting standards. 14. df© Ho$ Xm¡amZ H$ånZr Ûmam Z Vmo H$moB© nydm©{YH$ma Amd§Q>Z 14. During the year the company has not AWdm A§em| H$m {ZOr ßbog_|Q> nyU©V… AWdm Am§{eH$ made any preferential allotment or n[adV©Zr` G$UnÌ Omar {H$ò h¢& private placement of shares or fully or partly convertible debentures. 15. h_mar gå_{V _| Ed§ h_| Xr JB© gyMZm Ed§ ñnîQ>rH$aU Ho$ 15. In our opinion and according to the AZwgma df© Ho$ Xm¡amZ H§$nZr Ûmam AnZo {ZXoeH$m| AWdm information and explanation given to us, g§~§{YV ì`pŠV`m| Ho$ gmW ZH$X _| H$moB© ì`dhma Zht during the year the company has not {H$ò Jò AV… A{Y{Z`_ H$s Ymam 192 Ho$ àmdYmZ entered into any non cash transactions bmJy Zht hmoVo h¡& with its directors or persons connected to its directors and hence provision of section 192 of the Act are not applicable.

97 16. H§$nZr ^maVr` [aOd© ~¢H$ A{Y{Z`_ 1934 H$s Ymam 16. The company is not required to be 45-1A Ho$ A§VJ©V n§OrH$aU Ho$ {bE Ano{jV Zht h¡& registered under section 45-lA of the Reserve Bank of India Act, 1934.

dmñVo Ama.nr. IÊS>obdmb EÊS> Egmo{gEQ²>g For R.P. Khandelwal & Associates MmQ>©S> boImH$ma Chartered Accountants g§ñWm n§Or`Z g§»`m… 001795 gr FRN- 001795C h/- Sd/- (am_ àH$me IÊS>obdmb) (Ram Prakash Khandelwal) gmPoXma Partner gXñ`Vm g§»`m…- 071002 M.No. : 071002 ñWmZ… O`nwa Place: Jaipur {XZm§H$… 21 OwbmB© 2018 Date : 21 July 2018

98 gm§â gmëQ²>g {b{_Q>o‹S> Ho$ gXñ`m| H$s H§$nZr Ho$ 31 _mM© 2018 H$mo g_má df© Ho$ boIm| Ed§ Bgr {XZm§H$ H$s h_mar [anmoQ>© Ho$ n¡am-7 _| gX§{^©V AZw~§Y (~) Annexure B referred to in pargraph 7 of our report of even date to the members of SAMBHAR SALT LIMITED on the account of the company for the year ended 31st March, 2018. H«$. {d{Îm` {ddaU g§. {ZX}e H$m`©dmhr na à^md S. Directions Action Taken Impact on No. financial Statement 1. Š`m H$ånZr Ho$ nmg H«$_mZwgma nyU© gdm{_Ëd H«$_e… ñdm{_Ëd H$s ^y{_, nQ²>Q>o na ^y{_ Ho$ {bE {ZYm©aU dmbr AWdm nQ²>oQ> na ^y{_ H$m ñnîQ> gdm{_Ëd H$moB© ñnîQ> ñdm{_Ëd brO S>rS> {Zînm{XV Zht H$aZo `mo½` `hm± {dboI h¢& `{X Zht Vmo nwU© ñdm{_Ëd dmbr {H$`m J`m& Zht h¡& AWdm nQ²oQ> dmbr ^y{_ {OgH$m H$s nÅ>o na ^y{_ Ho$ {bE … Not ñdm{_Ëd/brO S>rS> CnbãY Zht h¡& CgH$m joÌ 1. 2648 EH$‹S> ^y{_ amOñWmZ gaH$ma Ho$ gmW Ascertain- ñnîQ> H$a|& {ddmXmJ«ñV h¡& able Whether the Company has clear 2. 424.80 EH$‹S> ^y{_ na {ZOr Z_H$ CËnmXH$m| title/lease deeds for freehold and Ûmam A{VH«$_U {H$`m hþAm h¡& leasehold land respectively? If not, H$ånZr Ûmam Ho$db g§~§{YV dr. Q>r. H¥$îUm_mMmar please state the area of freehold and leasehold land for which title/lease AdmS>© H$s \$moQ>mo H$m°nr CnbãY H$amB© JB© {Og_| deeds are not available. `h CëboI {H$`m J`m h¡ {H$ amOñWmZ gaH$ma Ûmam ^maV gaH$ma H$mo é. 5.50 bmI à{V df© Ho$ nQ²>Q>m {H$amE na ^y{_ 99 df© na nQ²>Q>o Ho$ {bE Xr JB© h¡& ^maV gaH$ma Ûmam EH$ H$ånZr Zm_ gm±â gmëQ²>g {b{_Q>oS> H$m JR>Z {H$`m OmZm Mm{hE Ed§ gm§â gmëQ²>g {b{_Q>oS> àXÎm ny§Or Ho$ 40 à{VeV _wâV A§e amOñWmZ gaH$ma Ho$ nj _| g_`- g_` na Omar H$aoJr& amOñWmZ gaH$ma Ho$ gmW H$moB© brO EJ«r_|Q> A^r VH$ {Zînm{XV Zht {H$`m J`m h¡ Bg{bE H$ånZr Ho$ Zm_ go ^y{_ Ho$ ñdm{_Ëd Ho$ g§~§Y _| H$moB© {Q>ßnUr Zht H$s JB© h¡& There are no clear lease title/lease deeds for freehold and leasehold land respectively. For Leasehold land (1) 2648 Acres of land is under dispute with Govt of Rajasthan, 424.80 acres of land is Encroach by pvt salt producer. company has provided only

99 p h o t o c o p i e s r e l a t i n g t o V . T . Krishnamacharya award in which it is a mention that Govt of Rajasthan has given the land for 99 years lease to the Govt of India for Sambhar Salt Limited on annual lease rent of Rs. 5.50 lakhs per annum and Govt of India should set up a company namely Sambhar salt Ltd. and Sambhar salt will be allotted free shares in favour of Govt of Rajasthan to the extent of 40% of the paid up capital of the company from time to time , no lease agreement has been executed so far with Govt of Rajasthan, hence not commented on the title of land in name of company. nyU© ñdm{_Ëd dmbr ^y{_ Ho$ {bE For Freehold land (1) gm§^aboH$ _| amdUQ>r~m H$s 16.41 EH$‹S> ^y{_ {ddmXmñnX h¡ _m_bm Ý`m`mb` _| b§{~V h¡&

(1) 16.41 Acres under dispute at rawan tiba sambhar lake matter pending with court (2) ~¡J eoS> H$s 18.12 EH$‹S> ^y{_ {ddmXmñnX h¡ _m_bm OmoYnwa aobdo Ho$ gmW b§{~V h¡& (2) 18.12 acres under dispute at bag shed matter pending with railway jodhpur (3) ehrXnwam Jw‹T>m gmëQ> H$s 23.71 EH$‹S> ^y{_ {ddmXmñnX h¡& _m_bm Zmdm§ Ý`m`mb` _| g§emoYZmYrZ h¡& (3) 23.71 acres under dispute at shaidpur Gudha salt, matter with Nawa court for correction

df© Ho$ Xm¡amZ H$moB© Ny>Q>/Im[aO H$O© G$U/ã`mO 2. Š`m H$moB© _m_bm Ny>Q> Im{aO H$Om© G$U/ã`mO eyÝ` Am{X H$m h¡ `{X hm± Vmo CgH$m H$maU Ed§ Cg_| Am{X H$m H$moB© _m_bm boIm| _| Zht {H$`m J`m h¡& {Z{hV YZam{e NIL Whether there are any cases of During the year no case of waiver/ waiver/write off of debts/ loans/ write off of debts/loans/interest etc. interest etc. If yes, the reasons there for has been consider in the accounts. and amount involved. gh YmaU H$aZo Ho$ {bE Xo` ã`mO H$mo N>mo‹S>H$a& df© Ho$ Xm¡amZ H$m°_nZr Zo ßbmZ \§$S> 2016-17 Am¡a 2017-18 Ho$ pIbm\$ àmá F$U na ã`mO

100 Zht {b`m h¡& Am¡a 2005 go nhbo F$U na ã`mO& df© Ho$ Xm¡amZ H§$nZr Zo {bIm h¡ gh gh aIZo Ho$ {bE Xo` ã`mO& é& {nN>bo df© H$s 405.81 H$s H$_r Am¡a bm^ Am¡a hm{Z ImVo Ho$ {ddaU Ho$ e¡S>çyb 23 _| nyd© Ad{Y g_m`moOZ go Am` Ho$ ê$n _| {XIm`m J`m& ZmoQ> Z§~a _| ^r BgH$s gyMZm {_br h¡& ImVm| Ho$ AÝ` ZmoQ²g Ho$ 25 (5)& Except interest payable to holding co. During the year holding Comapny has not charged Interest on loan received against the Plan Fund 2016- 17 & 2017-18. and Interest on loan prior 2005. During the year the company has written back Interest payable to holding co. of Rs. 405.81 lacks of earlier year and shown as income from prior period adjustment in schdules 23 of Statement of Profit & loss account. The same has also been reported in the note no. 25(5) of other Notes of Accounts.

3. Š`m Vrgao njH$ma Ho$ nmg aIo ñQ>mH$ Ed§ df© Ho$ Xm¡amZ H$moB© ^r ñQ>m°H$ Vrgao njH$ma Ho$ bmJy Zht gaH$ma Ed§ AÝ` àm{YH$mar go àmá nmg Zht h¡& H$ånZr Zo df© 2016-17 Ho$ Xm¡amZ Not Cnhma/ghm`Vm Ho$ ê$n g§n{Îm H$m C{MV [aH$m°S>© H$moB© Cnhma ñdê$n gån{Îm gaH$ma AWdm AÝ` Applicable aIm OmVm h¡& àm{YH$mar go àmá Zht H$s h¡& `Ú{n H$ånZr Ûmam W h e t h e r p r o p e r r e c o r d s a r e {dÎmr` {ddaU {Q>ßnUr g§. 9 (ñWmB© maintained for inventories lying with n[agpånÎm`m±) _| g§X{^©V Am`moS>rZH$aU g§gmYZ third parties and assets received as g§`§Ì Ho$ {bE ñdmñÏ` _§Ìmb` ^maV gaH$ma gift/grant(s) from the Government or Ûmam nyd© dfm] _| {H$E JE ny§OrJV ì``m| H$m nyU© other authorities. A{^boI H$ånZr Ûmam aIm J`m h¡& No inventories are lying with third parties during the year. The company has not received any assets as gift from Govt. or other authorities in 2017-18. However the company has

101 maintained the proper record of the capital expenditure born in earlier years by ministry of health, Govt. of India towards Iodisation Processing Plant as mentioned in Note No. 9 ( F i x e d A s s e t s ) o f f i n a n c i a l statements. Annexure-II AZwb½Z 1. Š`m H§$nZr H$s Z_H$ CËnmXZ Ho$ {bE CnbãY H$§nZr Ûmam CnbãY ~«mBZ Ho$ AmYma na {ZYm©aU ^y{_ H$m Z_H$ Ho$ CËnmXZ _| Cn`moJ hmo ahm h¡& A{YH$V_ g§^d ê$n go ^y{_ H$m Cn`moJ {H$`m H$aZo `mo½` `{X Zht, Vmo BgHo$ H$maU A{VH«$_U _m_bm| J`m Am¡a `Ú{n Prb joÌ _| Hw$N> {ZOr Z_H$ Zht h¡& g{hV, `{X H$moB© hmo, Cn`wŠV ê$n go narjU CËnmXH$Vm©Am| Ûmam Ad¡Ym{ZH$ ê$n go ~moadob Not {H$`m OmH$a {dÎmr` à^mdm| Ho$ gmW {ddaU {X`m ImoXH$a Prb joÌ go ~«mBZ {b`m Om ahm h¡ BgH$mo Ascertain- Omò& hQ>mZo Ho$ {bE H§$nZr Ûmam {d{^Þ H$X_ CR>mò Jò able h¢ {ZOr Z_H$ CËnmXH$m| Ûmam Hw$b 424.80 EH$‹S> Prb H$s ^y{_ na A{VH«$_U {H$`m hþAm h¡& Whether salt producing land of the Company has utilized the land on the company is fully utilized for production basis of availability of brine as maximum of salt? If not, reason for the same along possible. However some private salt with encroachment issues , if any ,may producers in the lake area by digging the be examined and suitably commented illegal borewells for which company has among along with financial implication. taken various steps, The total area 424.80 acres of land in the lake area encroached by the private salt producers.

102 AZw~§Y-gr, ñdV§Ì boIm narjH$ H$s [anmoQ>© ANNEXURE “C” TO THE INDEPENDENT AUDITORS’ REPORT

Am§V[aH$ {dÎmr` {Z`§ÌU na H$ånZr A{Y{Z`_ Report on the Internal Financial Controls 2013 (A{Y{Z`_) H$s Ymam 143 H$s CnYmam 3 Ho$ under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act’) IÊS> (&) Ho$ VhV [anmoQ>© h_mao Ûmam 31 _mM© 2018 H$mo g_má hþE {dÎmr` df© {dÎmr` We have audited the internal financial controls {ddaU na h_mar EH$b {dÎmr` {ddaU H$s boIm narjm Ho$ over financial reporting of SAMBHAR SALTS gmW gm§â gmëQ²>g {b{_Q>o‹S> (H§$nZr) H$s {dÎmr` [anmo{Q>ªJ na LIMITED (“the Company”) as at 31st March Am§V[aH$ boIm nar{jV {dÎmr` {Z`§ÌU na H$s boIm narjm 2018 in conjunction with our audit of the J`r h¡& standalone financial statements of the company for the year ended and as on that date. Am§V[aH$ {dÎmr` {Z`§ÌU Ho$ {bE à~§YZ H$s {Oå_oXmar Management’s Responsibility for internal financial Controls H§$nZr Ho$ g§MmbH$ _ÊS>b, {dÎmr` [anmo{Q>ªJ _mnXÊS> H$ånZr The Board of Directors of the Company is Am§V[aH$ {dÎmr` boIm narjm na ^maV Ho$ MmQ>©S> AH$mCÊQ>|Q> responsible for establishing and maintaining (AmB© gr E AmB©) Ûmam Omar _mJ©X{e©H$m Ho$ AZwgma Am§V[aH$ internal financial controls based on the internal {Z`§ÌU Ho$ Amdí`H$ KQ>H$m| na {dMma H$aHo$ Am§V[aH$ {Z`§ÌU control over financial reporting criteria H$s ñWm{nV H$aZo Ed§ {Z`§ÌU ~Zmò aIZo Ho$ {bE {Oå_oXma h¡& established by the Company considering the essential components of internal control stated BZ {Oå_oXm[a`m| _| {S>OmBZ, H$m`m©Ýd`Z Am¡a n`m©á Am§V[aH$ in the Guidance Note on Audit of Internal {dÎmr` {Z`§ÌU em{_b h¡ Omo {H$ AnZo ì`mnma Ho$ gå`ÝVa Financial Controls over Financial Reporting Am¡a Hw$eb g§MmbZ H$mo gw{ZpíMV H$aZo, H§$nZr H$s Zr{V`m| issued by the institute of Chartered H$s nmbZm g{hV Ho$ {bE à^mdr T>§J go H$m_ Ed§ aIaImd H$a Accountants of India (ÍCAI’). These aho Wo, AnZr g§n{Îm H$s gwajm, amoH$Wm_, YmoImY‹S>r H$m nVm r e s p o n s i b i l i t y i n c l u d e t h e d e s i g n , bJmZo, gQ>rH$Vm Am¡a boIm A{^boIm| H$s nyU©Vm Am¡a implementation and maintenance of adequate {dídgZr` {dÎmr` OmZH$mar H$s g_` na V¡`mar {OgH$s internal financial controls that were operating H§$nZr A{Y{Z`_ 2013 Ho$ VhV Amdí`H$Vm h¡& effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. 103 boIm narjH$m| H$s {Oå_oXmar Auditors’ Responsibility h_mar {Oå_oXmar h_mao boIm narjm Ho$ AmYma na {dÎmr` Our responsibility is to express an opinion on [anmo{Q>ªJ na H$ånZr H$s {dÎmr` Am§V[aH$ [anmo{Q>ªJ na EH$ am` the Company’s internal financial controls over ì`ŠV H$aZo Ho$ {bE h¡& h_ EH$ hX VH$ {dÎmr` [anmo{Q>ªJ na financial reporting based on our audit. We Am§V[aH$ {dÎmr` {Z`§ÌU H$m boIm narjm Ho$ {bE bmJy H$aZo Ho$ conducted our audit in accordance with the {bE boIm narjm _mZH$ Ho$ AZwgma h_mar boIm narjm, Standards on auditing, prescribed under section 143(10) of the Companies Act, 2013, H$ånZr A{Y{Z`_ 2013 H$s Ymam 143 (10) Ho$ VhV and the Guidance Note, to the extent {ZYm©[aV h¡ Am¡a _mJ©Xe©Z {Q>ßnUr H$m Am`moOZ {H$`m& CZ applicable to an audit of internal financial _mZH$m| Am¡a _mJ©Xe©H$ {Q>ßnUr H$s Amdí`H$VmZwgma h_Zo reporting. Those Standards and the Guidance Z¡{VH$ Amdí`H$VmAm| Am¡a `moOZm Ho$ AZwê$n nmbZm H$s h¡ Note require the we comply with the ethical Am¡a boIm narjH$ H$m H$m`© {dÎmr` [anmo{Q>ªJ na n`m©á Am§V[aH$ requirements and plan and perform the audit {dÎmr` {Z`§ÌU ñWm{nV {H$ò OmZo Ho$ {bE C{MV AmídmgZ to obtain reasonable assurance about whether àmá {H$`m Omo {H$ g^r _hËdnyU© _m_bm| _| à^mdr T>§J go adequate internal financial controls over g§Mm{bV, {Z`§ÌU ñWm{nV {H$`m J`m Am¡a ~Zmò aIm J`m& financial reporting was established and maintained and if such controls operated effectively in all material respects h_mar boIm narjm H$s {dÎmr` [anmo{Q>ªJ na Am§V[aH$ {Z`§ÌU Our audit involves performing procedures to àUmbr H$s n`m©áVm Am¡a CZHo$ n[aMmbZ à^md Ho$ ~mao _| obtain audit evidence about the adequacy of boIm narjm gmú` àmá H$aZo H$s à{H«$`m _| em{_b h¡& {dÎmr` the internal financial controls system over [anmo[Q>ªJ na {dÎmr` Am§V[aH$ {Z`§ÌU H$s h_mar boIm narjm financial reporting and their operating {dÎmr` [anmo{Q>ªJ na {dÎmr` Am§V[aH$ {Z`§ÌU H$s EH$ g_P effectiveness. Our audit of internal financial àmá H$aZo,Omo{I_ hmo, {H$ EH$ gm_J«r H$_Omoar go _m¡OyX h¡ controls over financial reporting included obtaining and understanding of internal Am¡a narjU H$m AmH$bZ H$aZo Am¡a {S>Om`Z Ho$ _yë`m§H$Z financial controls over financial reporting, Am¡a g§MmbZ H$m _yë`m§H$Z Omo{I_ Ho$ AmYma na Am§V[aH$ assessing the risk that a material weakness {Z`§ÌU H$s à^mderbVm em{_b Wo, à{H«$`mAm| go M`{ZV exists, and testing and evaluating the design boIm narjH$ Ho$ \¡$gbo na {Z^©a H$aVr h¡ {dÎmr` ~`mZ H$s and operating effectiveness of internal control gm_J«r JbV ~`mZ Ho$ Omo{I_ Ho$ AmH$bZ Mmho H$maU based on the assesses risk. The procedures YmoImY‹S>r `m Ìw{Q> Ho$ {bE ^r em{_b h¡& selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. h_ _mZVo h¡ {H$ boIm narjm gmú` h_Zo àmá H$s h¡ {dÎmr` We believe that the audit evidence we have [anmo{Q>ªJ na H$ånZr Ho$ Am§V[aH$ {dÎmr` {Z`§ÌU àUmbr na obtained is sufficient and appropriate to h_mao boIm narjm H$s am` Ho$ {bE EH$ AmYma àXmZ H$aZo Ho$ provide a basis for our audit opinion on the

104 {bE n`m©á Am¡a C{MV h¡& Company’s internal financial controls system over financial reporting. {dÎmr` [anmo{Q>ªJ na Am§V[aH$ {Z`§ÌU H$m VmËn`©- Meaning of Internal Financial Controls over Financial Reporting

{dÎmr` [anmo{Q>ªJ na H$ånZr H$s Am§V[aH$ {dÎmr` {Z`§ÌU Ed§ A company’s internal financial control over à{H«$`m, {dÎmr` [anmo{Q>ªJ H$s {dídgZr`Vm Am¡a Am_Vm¡a na financial reporting is a process designed to ñdrH$m`© boIm§H$Z {gÕm§Vm§o Ho$ AZwgma ~mhar à`moOZm| Ho$ {bE Provide Reasonable assurance regarding the {dÎmr` dŠVì` H$s V¡`mar Ho$ g§~§Y _| C{MV AmídmgZ àXmZ reliability of financial reporting and the H$aZo H$o {bE ~Zm`m J`m h¡& {dÎmr` [anmo{Q>ªJ na H§$nZr H$s preparation of financial statements for external purposes in accordance with generally Am§V[aH$ {dÎmr` {Z`§ÌU CZ Zr{V`m| Am¡a à{H«$`mAm| H$s h¡& accepted accounting principles. A Company’s (1) A{^boIm| Ho$ aIaImd go g§~§{YV h¡ Omo {H$ C{MV internal financial control over financial {dñVma go, ghr Am¡a H$m\$s boZXoZ Ed§ H§$nZr H$s g§n{Îm Ho$ reporting includes those policies and ñd^md H$mo à{~{~på~V em{_b h¡ (2) C{MV AmídmgZ {X`m procedures that (1) pertain to the maintenance h¡ {H$ boZXoZ H$mo ñdrH$m`© boIm§H$Z {gÕm§Vm| Ho$ AZwgma of records that, in reasonable detail, accurately {dÎmr` dŠVì`m| H$s V¡`mar H$s AZw_{V Ho$ {bE XO© H$a aho h¡ and fairly reflect the transactions and Ed§ H§$nZr Ho$ àm{á`m± Ed§ ì`` H$mo à~§YZ Ed§ H§$nZr Ho$ {ZXoeH$ dispositions of the assets of the company; (2) Ho$ Ûmam A{YH¥$V H$aZo Ho$ ~mX {H$`m OmVm h¡ (3) H§$nZr H$s provide reasonable assurance that g§n{Îm Ho$ ~mao _| `h AmídmgZ {X`m J`m {H$ AZm{YH¥$V transactions are recorded as necessary to A{YJ«hU Ho$ {bE C{MV amoH$Wm_, Cn`moJ `m g§n{Îm Ho$ permit preparation of financial statements in ñd^md Omo {H$ {dÎmr` {ddaU na _hËdnyU© à^md S>mbVm hmo& accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. {dÎmr` [anmo{Q>ªJ na Am§V[aH$ {dÎmr` {Z`§ÌU H$s {Z{hV Inherent Limitations of Internal Financial gr_mE§- Controls over financial reporting {dÎmr` [anmo{Q>ªJ na Am§V[aH$ {dÎmr` {Z`§ÌU, {_br^JV `m Because of the inherent limitations of internal {Z`§ÌU Ho$ AZw{MV à~§YZ, hQ>mZm, _hËdnyU© JbV {ddaU financial controls over financial reporting, {Oggo YmoImY‹S>r H$s g§^mdZm hmoVr h¡ Am¡a Zht hmo gH$Vr h¡ including the possibility of collusion or em{_b h¡, H$s {Z{hV gr_mAm| H$m nVm bJmZo hoVw Ed§ BgHo$ improper management override of controls, material misstatements due to error or fraud

105 Abmdm ^{dî` Ad{Y Ho$ {bE {dÎmr` [anmo{Q>ªJ na Am§V[aH$ may occur and not be detected. Also, {dÎmr` {Z`§ÌU Ho$ {bE {H$gr ^r _yë`m§H$Z Ho$ {bE AZw_mZm| Ho$ projections of any evaluation of the internal Omo{I_ Ho$ AYrZ h¡ Š`m|{H$ {dÎmr` [anmo{Q>ªJ na Am§V[aH$ financial controls over financial reporting to {dÎmr` {Z`§ÌU H$s pñW{V`m| _| ~Xbmd An`m©á hmo gH$Vm h¡ future periods are subject to the risk that the `m Zr{V`m| Ed§ à{H«$`mAm| Ho$ AZwnmbZm H$s pñW{V Iam~ hmo internal financial control inadequate because of changes in conditions, or that the degree of gH$Vr h¡& compliance with the policies or procedures may deteriorate.

_`m©{XV am`- Qualified Opinion h_| Xr JB© OmZH$mar Am¡a ñnîQ>rH$aU Ho$ AZwgma Am¡a h_mar According to the information and boIm narjm Ho$ AmYma na {ZåZ{b{IV _hËdnyU© H${_`m| 31 explanations given to us and based on our _mM©, 2018 {MpÝhV H$s J`r h¡…- audit, the following material weaknesses have been identified as at march 31, 2018: (H$) H$ånZr _| AMb gån{Îm`m| Am¡a ñH§$Y Ho$ a) The company has no written Amd{YH$ ^m¡{VH$ gË`mnZ Ho$ {bE H$moB© {b{IV policies and procedures for Zr{V`m| Am¡a à{H«$`mE§ Zht h¡& df© Ho$ Xm¡amZ periodical verification of fixed AMb gån{Îm`m| Ed§ ñH§$Y H$m ^m¡{VH$ gË`mnZ assets and inventories and also Zht {H$`m J`m h¡& during the under consideration no physical verification of fixed assets has been conducted by us. h_mar am` _| CnamoŠV à^md Ho$ Abmdm/_hËdnyU© H$_Omo[a`m| In our opinion, except for the effects / possible Ho$ {Z`§ÌU _mnXÊS> Ho$ CX²Xoí`m| H$s àm{á na CnamoŠV d{U©V effects of the material weakness described Ho$ g§^m{dV à^mdr, H$ånZr Ho$ g^r _hËdnyU© _m_bm|, {dÎmr` above on the achievement of the objectives of [anmo{Q>ªJ Am¡a Bg Vah Ho$ Am§V[aH$ {dÎmr` {Z`§ÌU na n`m©á the control criteria, the Company has maintained , in all material respects, adequate {Z`§ÌU ~Zmò aIm J`m h¡, {dÎmr` [anmo{Q>ªJ na _mJ©X{e©H$m _| internal financial controls over financial ~Vmò Jò _mnXÊS> na H§$nZr _| Am§V[aH$ {Z`§ÌU Ho$ Amdí`H$ reporting and such internal financial controls KQ>H$m| na {dMma H$aHo$ 31 _mM©,2018 H$mo à^mdr T>§J go over financial reporting were operating H$m_ H$a aho Wo& effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note. h_Zo _hËdnyU© H${_`m| H$s nhMmZm Am¡a Cggo D$na H$s We have considered the material weakness gyMZm H$s àH¥${V g_` H$m {ZYm©aU H$aHo$ hr 31 _mM©,2017 identified and reported above in determining

106 Ho$ H§$nZr Ho$ {dÎmr` {ddaUm| H$s boIm narjU H$s Om±M H$mo bmJy the nature, timing, and extent of audit tests H$aVo hþE H$s h¡ Am¡a _hËdnyU© H${_`m| H$m H§$nZr Ho$ {dÎmr` applied in our audit of the march 31, 2017 {ddaUm| na Xr J`r am` na H$moB© à^md Zht n‹S>m h¡& standalone financial statements of the Company, and these material weakness does not affect our opinion on the standalone financial statements of the Company.

dmñVo Ama.nr. IÊS>obdmb EÊS> Egmo{gEQ²>g For R.P. Khandelwal & Associates MmQ>©S> boImH$ma Chartered Accountants g§ñWm n§Or`Z g§»`m… 001795 gr Firm Registration No.- 001795C h/- Sd/- (am_ àH$me IÊS>obdmb) (Ram Prakash Khandelwal) gmPoXma Partner M.No. : 071002 gXñ`Vm g§»`m…- 071002 ñWmZ… O`nwa Place: Jaipur {XZm§H$… 26 OwbmB© 2018 Date : 26 July 2018

107

HIDUSTAN SALTS LIMITED

2017-20182017-2018

109 31 _mM©, 2018 H$mo g_o{H$V {dÎmr` pñW{V {ddaU CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2018 (` bmI _|) (` In Lakh) {ddaU {Q>ßnUr 31.03.2018 31.03.2017 PARTICULARS g§. H$mo Am§H$‹S>o H$mo Am§H$‹S>o Note Figures as on Figures as on No. 31-03-2018 31-03-2017 A. g_Vm Ed§ Xm{`Ëd A.EQUITY AND LIABILITIES 1. A§e YmaH$ {Z{Y/SHARE HOLDER'S FUND (A)(a) A§e ny§Or/Share Capital 2 5205.96 4205.96 (~)(b) Ama{jV Ed§ A{Yeof/Reserve & Surplus 3 (3812.44) (3733.58) 2. A§e AmdoXZ am{e b§{~V Amd§Q>Z SHARE APPLICATION MONEY PENDING ALLOTMENT - 3. J¡a Mmby Xm{`Ëd/NON CURRENT LIABILITIES (A)(a) XrKm©d{Y CYma/Long Term Borrowings 4 280.00 65 (~)(b) AmñV{JV H$a Xm{`Ëd (ewÕ)/Deferred Tax Liabilities (Net) - - (g)(c) AÝ` XrKm©d{Y Xm{`Ëd/Other Long Term Liabilities - - - (X)(d) XrKm©d{Y àmdYmZ/Long Term Provisions 5 662.23 740.14 4. Mmby Xm{`Ëd CURRENT LIABILITIES (A)(a) Aënmd{Y CYma/Short Term Borrowings 6 330.30 353.58 (~)(b) ì`mnma Xo`VmE§/Trade Payables 7 592.42 608.47 (g)(c) AÝ` Mmby Xm{`Ëd/Other Current Liabilities 8 3260.56 3798.37 (X)(d) Aënmd{Y àmdYmZ/Short Term Provisions - - `moJ/TOTAL 6519.03 6037.94 ~. n[agån{Îm`m§ B. ASSETS 1. J¡a Mmby n[agån{Îm`m§/NON-CURRENT ASSETS (A)(a) ñWm`r n[agån{Îm`m§/Fixed Assets 9 (i) _yV© n[agån{Îm`m§/Tangible Assets 2007.44 1980.28 (ii) A_yV© n[agån{Îm`m§/Intangible Assets 1.78 2.21 (iii) ny§Or H$m`© àJ{V _|/Capital Work-In- Progress 138.85 251.43 (iv) A_yV© n[agån{Îm`m§ {dH$mgmYrZ Intangible Assets under Development - - (~)(b) J¡a Mmby {Zdoe/Non Current Investments 10 - - (g)(c) AmñW{JV H$a n[agån{Îm`m§ (ewÕ)/Deferred Tax Assets (net) - - (X)(d) XrKm©d{Y G$U Ed§ A{J«_ Long term Loans and Advances 11 39.42 38.59 (`)(e) AÝ` J¡a Mmby n[agån{Îm`m§ Other Non Current Assets 12 497.79 531.30 2685.28 2803.81 110 g_o{H$V {dÎmr` pñW{V {ddaU (Omar) CONSOLIDATED BALANCE SHEET (Contd.) (` bmI _|) (` In Lakh)

{ddaU {Q>ßnUr 31.03.2018 31.03.2017 PARTICULARS g§. H$mo Am§H$‹S>o H$mo Am§H$‹S>o Note Figures as on Figures as on No. 31-03-2018 31-03-2017 2. Mmby n[agån{V`m§ 2. CURRENT ASSETS (A)(a) Mmby {Zdoe/Current Investments - - - (~)(b) ñH§$Y/Inventories 13 1290.12 1208.51 (g)(c) ì`mnma àm{á`m§/Trade Receivables 14 90.05 89.52 (X)(d) ZH$X d ~¢H$ eof/Cash & Cash Equivalents 15 1079.58 725.13 (`)(e) Aënmd{Y G$U Ed§ A{J«_ Short Term Loans and Advances 16 1337.33 1173.73 (a)(f) AÝ` Mmby n[agån{Îm`m±/Other Current Assets 17 36.67 37.24 3833.75 3234.13 `moJ/TOTAL 6519.03 6037.94 _hËdnyU© boIm Zr{V`m± Ed§ boIm| na {Q>ßn{U`m± 1 go 29 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON FINANCIAL STATEMENTS 1 to 29

gw_moZm _Oy_Xma Eg.Ho$. Q>mH$ gVre garZ Eg.nr. ~§gb (Sumona Majumdar) (S.K. Tak) (Satish Sareen) (S.P. Bansal) H$ånZr g{Md _hmà~§YH$ ({d. Ed§ bo.) {ZXoeH$$ AÜ`j Ed§ à~ÝY {ZXoeH$ Company Secretary General Manager (F & A) Director Chairman and {Zng§ DIN-01874068 Managing Director {Zng§ DIN-07239609 h_mao Bgr {XZm§H$ Ho$ g§b½Z à{VdoXZ Ho$ AZwgma in terms of our report of even date annexed hereto H¥$Vo EM.gr. ~moWam EÊS> Egmo{gEQ²>g/For H.C. Bothra & Associates MmQ>©S>© boImH$ma/Chartered Accountants g§ñWm n§OrH$aU g§./Firm Registration No. 008950C

ñWmZ : O`nwa ({Xbrn M§X AJ«dmb) Place : Jaipur (Dilip Chand Agarwal) {XZm§H$ : 23 OwbmB©, 2018 gmPoXma/Partner Dated : 23 July, 2018 gXñ`Vm g§./Membership No. 079983

111 g_o{H$V bm^ Ed§ hm{Z {ddaU 31 _mM©, 2018 H$mo g_mßV df© Ho$ {bE CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2018 (` bmI _|) (` In Lakh) {ddaU {Q>ßnUr df© 2017-18 df© 2016-17 PARTICULARS g§»`m Ho$ Am§H$‹S>o Ho$ Am§H$‹S>o Note Figures for the Figures for the No. Year 2017-18 Year 2016-17

à«m{á/REVENUE :- n[aMmbZ go àm{á`m§/Revenue from Operations 18 2602.68 2450.77

AÝ` Am`/Other Income 19 229.40 322.72

Hw$b Am`/Total Income 2832.08 2773.49

ì``/EXPENSES-

Cn`moJ _| br J`r gm_J«r H$s bmJV/Cost of Materials Consumed 20 1460.61 1362.97

ì`mnma _| ñQ>m°H$ H«$`/Purchases of Stock-in-Trade - 54.05 75.97

KQ>mB`o… AÝVH©$ånZr H«$`/Less: Inter Company Purchase (3.05) (19.77)

H$m`© àJ{V _|, V¡`ma _mb d ì`mnma _| ñQ>m°H$ H$m n[adV©Z Changes in inventories of finished goods, work-in- progress and Stock-in-Trade 21 (144.30) (161.66) H$_©Mmar H$ë`mU IM}/Employee Benefits Expense 22 1008.34 936.81

{dÎmr` bmJV/Finance costs 23 377.27 401.13

ömg d n[aemoYZ ì``/Depreciation and amortization expense 336.96 365.81

AÝ` ì``/Other expenses 24 531.95 620.79

Hw$b ì``/Total Expenses 3621.83 3582.05 Andm{XV _Xm| go nyd© bm^ PROFIT BEFORE EXCEPTIONAL ITEMS (789.75) (808.56) Andm{XV _X| EXCEPTIONAL ITEMS nydm©d{Y ì``/g_m`moOZ ewÕ Prior Period Expenses / Adjustment Net 25 715.19 (6.37) H$a go nyd© bm^ PROFIT BEFORE TAX (74.56) (814.93)

112 g_o{H$V bm^ Ed§ hm{Z boIm (Omar)

CONSOLIDATED PROFIT AND LOSS (` bmI _|) ACCOUNT (Contd.) (` In Lakh) df© 2017-18 df© 2016-17 {ddaU {Q>ßnUr Ho$ Am§H$‹S>o Ho$ Am§H$‹S>o PARTICULARS g§»`m Note Figures for the Figures for the No. Year 2017-18 Year 2016-17

H$a ì``/Tax Expenses

Mmby H$a/Current Tax - -

AmñW{JV H$a/Deferred Tax - - H$a Ho$ níMmV² bm^ PROFIT AFTER TAX (74.56) (814.93) ApÝV_ ñQ>m°H$ _| Aàmß` bm^ H$m g_m`moOZ Adj of unrealised Profit in Closing Stock - - Aën g§»`H$ {hV H$m g_m`moOZ/Adj of Minority Interest 103.24 342.14 df© H$m bm^/PROFIT FOR THE YEAR 28.68 (472.79)

à{V g_Vm A§e AO©Z EARNINGS PER EQUITY SHARE 26 _yb BnrEg (` _|)/Basic EPS (in `) 6.44 (112.41)

VZwH¥$V B©nrEg (` _|)/Diluted EPS (in `) 6.44 (112.41) _hËdnyU© boIm Zr{V`m§ Am¡a boIm| H$s {Q>ßn{U`m§ 1 go 29 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON FINANCIAL STATEMENTS 1 to 29 gw_moZm _Oy_Xma Eg.Ho$. Q>mH$ gVre garZ Eg.nr. ~§gb (Sumona Majumdar) (S.K. Tak) (Satish Sareen) (S.P. Bansal) H$ånZr g{Md _hmà~§YH$ ({d. Ed§ bo.) {ZXoeH$$ AÜ`j Ed§ à~ÝY {ZXoeH$ Company Secretary General Manager (F & A) Director Chairman and {Zng§ DIN-01874068 Managing Director {Zng§ DIN-07239609 h_mao Bgr {XZm§H$ Ho$ g§b½Z à{VdoXZ Ho$ AZwgma in terms of our report of even date annexed hereto H¥$Vo EM.gr. ~moWam EÊS> Egmo{gEQ²>g/For H.C. Bothra & Associates MmQ>©S>© boImH$ma/Chartered Accountants g§ñWm n§OrH$aU g§./Firm Registration No. 008950C

ñWmZ : O`nwa ({Xbrn M§X AJ«dmb) Place : Jaipur (Dilip Chand Agarwal) {XZm§H$ : 23 OwbmB©, 2018 gmPoXma/Partner Dated : 23 July, 2018 gXñ`Vm g§./Membership No. 079983 113 g_o{H$V amoH$‹S> àdmh {ddaU 31 _mM©, 2018 H$mo g_má df© Ho$ {bE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2018 (` bmI _|) (` In Lakh) df© 2017-18 df© 2016-17 {ddaU Ho$ Am§H$‹S>o Ho$ Am§H$‹S>o PARTICULARS Figures for the Figures for the Year 2017-18 Year 2016-17 n[aMmbZ J{V{d{Y`m| go amoH$‹S> àdmh Cash Flow from Operating Activities H$a go nyd© bm^/(hm{Z)/Profit/(Loss) before Tax (74.56) (814.93) A A g_m`moOZ Ho$ {bE/Adjustments for ömg/Depreciation 339.98 370.07 ^wZmZo `mo½` AdH$me Ed§ S>r.gr.Ama.Or. Ho$ {bE àmdYmZ Provision for Leave Encashment & D.C.R.G. (77.91) (131.12) ã`mO ì``/Interest Expenses 377.27 401.13 An{b{IV AÝ` {d{dY ì`` Other Misc Expenses written off 33.51 (13.00) ã`mO Am`/Interest Income 82.58 74.16 C{MV _yë` H$s XþH$mZ go bm^/Profit from Fair Price Shop 0.12 0.11 ~ B H$m`©erb ny§Or Ho$ n[adV©Z go nyd© n[aMmbZ bm^ Operating Profit before working capital changes 680.99 (113.58) g C H$m`©erb ny§Or Ho$ n[adV©Z/Change in working Capital Aënmd{Y CYma/Short Term Borrowings (23.28) 336.94 ì`dgm` Xo`Vm/Trade Payables (16.05) 86.13 AÝ` Mmby Xm{`Ëd/Other Current Liabilities (537.81) 711.65 ñH$ÝY/Inventories (81.61) (193.54) ì`dgm` àm{á`m±/Trade Receivables (0.53) 35.02 Aënmd{Y G$U Ed§ A{J«_/Short Term Loans and Advances (163.60) (340.46) AÝ` Mmby n[agån{Îm`m±/Other Current Assets 0.57 (2.07) X D n[aMmbZ go àmá amoH$‹S>/Cash generated from operations (141.32) 520.09 ` E ^wJVmZ {H$`o J`o àË`j H$a Ho$ {bE g_m`moOZ Adjustments for direct tax paid - - a F n[aMmbZ J{V{d{Y`m| go ewÕ amoH$‹S> àdmh Net Cash Flow from Operative Activities (141.32) (141.32) 520.09 520.09 b G{Zdoe J{V{d{Y`m| go amoH$‹S> àdmh/Cash Flow from investing Activities ny§OrJV H$m`© àJ{V na Am¡a ñWmB© n[agån{V`m§o H$s IarX Purchase of fixed assets & Capital W.I.P. (258.55) (417.65) àmá ã`mO/Interest received (82.58) (74.16) 114 g_o{H$V amoH$‹S>> àdmh {ddaU (Omar)

CONSOLIDATED CASH FLOW (` bmI _|) STATEMENT (Contd.) (` In Lakh)

à{V^y{V O_m/Security Deposit (0.83) (341.96) (19.52) (511.33) d H {dÎmr` J{V{d{Y`m| go ewÕ amoH$‹S> àdmh Net Cash Flow from Financing Activities bå~r Ad{Y H$s CYm[a`m| na ewÕ Am` Net proceeds from long term borrowing 215 (25.00) A§e ny±Or àmá/Shares capital received 1000 - ã`mO ì``/Interest Expenses (377.27) 837.73 (401.13) (426.13) g I amoH$‹S> g_mZ Am¡a amoH$‹S> _| ewÕ n[adV©Z Net changes in Cash and Cash equivalent 354.45 (417.37) h J {dÎmr` df© Ho$ ewê$ _| amoH$‹S> g_mZ Am¡a amoH$‹S> Cash and Cash equivalent at the begining of Fin. Year 725.13 1,142.50 e K {dÎmr` df© Ho$ AÝV _| amoH$‹S> g_mZ Am¡a amoH$‹S> Cash and Cash equivalent at the end of the Fin. Year 1079.58 725.13 **ZH$X {d{Y na EEg -3 Ho$ AZwgma AàË`j {d{Y na H¡$e H¡$go V¡`ma {H$`m J`m h¡& Eg~rAmB©, O`nwa ImamKm‹oS>m Am¡a _§S>r {H«$ßdr Ho$ gmW 76.8 9 bmI énò h_mao gmb é& 13.74 bú_r Eg~r~rOo O`nwa Am¡a é& Eg~r~rOo O`nwa Ho$ gmW 13.74 bmI énò Am¡a é& Eg~rAmB© Ho$ gmW 72.25 H$I Am¡a énò Ho$ {bE& 380.00 bmI nrEZ~r Ho$ gmW ^{dî`dmUr 348.9 5 Am¡a é& Eg~rAmB© gmoå~a bmI Ho$ gmW 7.77 bmI {nN>bo gmb é& AmoS>r bmoZ Ho$ {bE 7.30 bmI énò Cash how statement has been prepared on indirect method as per AS-3 ** FDR of Rs. 76.89 Lakh Pledged with SBI, Jaipur Kharaghoda and Mandi Previous year Rs. 13.74 Lakha with SBBJ Jaipur and Rs. 72.25 Lakh with SBI and FDR of Rs. 380.00 Lakh Pledged with PNB (Previous year 348.95 and FDR of Rs. 7.77 Lakh with SBI Sombhar Lake Previous year Rs. 7.30 Lakhs towards seourty for OD Loans)

gw_moZm _Oy_Xma Eg.Ho$. Q>mH$ gVre garZ Eg.nr. ~§gb (Sumona Majumdar) (S.K. Tak) (Satish Sareen) (S.P. Bansal) H$ånZr g{Md _hmà~§YH$ ({d. Ed§ bo.) {ZXoeH$$ AÜ`j Ed§ à~ÝY {ZXoeH$ Company Secretary General Manager (F & A) Director Chairman and {Zng§ DIN-01874068 Managing Director h_mao Bgr {XZm§H$ Ho$ g§b½Z à{VdoXZ Ho$ AZwgma {Zng§ DIN-07239609 in terms of our report of even date annexed hereto H¥$Vo EM.gr. ~moWam EÊS> Egmo{gEQ²>g/For H.C. Bothra & Associates MmQ>©S>© boImH$ma/Chartered Accountants g§ñWm n§OrH$aU g§./Firm Registration No. 008950C

ñWmZ : O`nwa ({Xbrn M§X AJ«dmb) Place : Jaipur (Dilip Chand Agarwal) {XZm§H$ : 23 OwbmB©, 2018 gmPoXma/Partner Dated : 23 July, 2018 gXñ`Vm g§./Membership No. 079983 115 {Q>ßnÊmr g§.- 1 _hËdnyU© boImZr{V`m§ N O T E N O . - 1 : S I G N I F I C A N T ACCOUNTING POLICIES 1.1 g_oH$Z Ho$ {gÕm§V 1.1 PRINCIPLES OF CONSOLIDATION g_o{H$V {dÎmr` {ddaU {hÝXþñVmZ gmëQ²>g {b{_Q>oS The Consolidated Financial Statements (H$ånZr)>Am¡a BgH$s ghm`H$ H$ånZr gm§â gmëQ²>g relate to Hindustan Salts Limited (the {b{_Q>oS> (ghm`H$ H$ånZr) go g§~§{YV h¡& g_o{H$V Company) and its subsidiary, Sambhar Salts Limited (the subsidiary). The {dÎmr` {ddaU {ZåZm§{H$V AmYmam| na V¡`ma {H$ò Jò h¡§… Consolidated Financial Statements have been prepared on the following basis:-

(i) H$ånZr d BgH$s ghm`H$ H$ånZr Ho$ {dÎmr` (i) The Financial Statements of the {ddaU bmBZ-~mB© bmBZ AmYma na g§`mo{OV Company and its subsidiary have {H$ò h¢ Am¡a n[agån{V`m,± Xm{`Ëd, Am` Ed§ ì`` been combined on a line-by-line basis by adding together the book ImVm| Ho$ ~hrImVm _yë`m| H$mo gmW Omo‹S>H$a Am¡a values of like items of Assets, AÝV©g_yh eofm|, AÝV©g_yh ì`dhmam| Am¡a AXËV Liabilities, Income and Expenses, bm^m| Am¡a hm{Z`m| H$mo boIm_mZH$-(EEg) 21- after fully eliminating intra-group ""g_o{H$V {dËVr` {ddaU'' Ho$ VhV {XE JE h¢& balances, intra-group transactions and unrealised profits or losses as per Accounting Standard (AS) 21 – “ C o n s o l i d a t e d F i n a n c i a l Statements”. (ii) ghm`H$ H$ånZr Ho$ {dÎmr` {ddaU, Cgr {XZm§H$ (ii) The Financial Statements of the AWm©V² 31 _mM© 2018 H$mo {Og {XZm§H$ H$mo subsidiary consolidated are drawn upto the same reporting date of the H$ånZr Ho$ {dÎmr` {ddaU {Xò h¢, Ho$ {XZ g_o{H$V Company, i.e. 31st March, 2018. {H$ò Jò h¢& (iii) g_oH$Z na ghm`H$ H$ånZr H$s A§e nyOr± Omo (iii) The excess of the Company’s portion H$ånZr Ho$ A{VaoH$ ^mJ H$s h¡, {Zdoe H$s {XZ§mH$ of equity of the subsidiary as at the Am¡a {Zdof H$s bmJV go$ A{YH$ H$mo Ama{jV date of its investment over the cost of its investment is treated as Capital ny§Or _mZm J`m h¡& g_oH$Z na {Zdof H$s {XZm§H$ Reserve on Consolidation. The na H$ånZr Ho$ ghm`H$ H$ånZr _| {Zdoe H$s excess of cost to the Company of its A{YH$ bmJV H$mo »`m{V _mZm J`m h¡& investment in subsidiary over the Company’s portion of equity as at the date of investment is treated as Goodwill on Consolidation.

116 (iv) AëndJ© Ho$ {hV g_o{H$V ewÕ n[ag§n{Îm`m| _| (iv) Minority Interest in the net assets of ghm`H$ H$ånZr _| em{_b h¡ {H$…- Consolidated subsidiary consists of: (H$) g_oH$Z Ho$ AmYma Ho$ {b`o g_Vm am{e Ho$ (a) The amount of equity attributable to ghm`H$ H$ånZr Ho$ VËH$mbrZ nyd© Ad{Y the minorities at the date of Financial Ho$ {dÎmr` {ddaUm| Ho$ g_` AëndJ© _| Statements of the subsidiary for ~m§Q>r JB© h¡& immediately preceding period for the basis of consolidation. (I) g_oH$Z Ho$ AmYma Ho$ {b`o n[ad{V©V A§e (b) The minorities share of movements ny±Or H$mo gh`mH$ H$ånZr Ho$ VËH$mbrZ nyd© in equity at the date of Financial Ad{Y Ho$ {dÎmr` {ddaUm| Ho$ g_` AëndJ© Statements of the subsidiary for H$m ^mJ {b`m J`m h¡& immediately preceding period for the basis of consolidation.

(v) g_o{H$V ghm`H$ H$ånZr Ho$ df© Ho$ {bE ewÕ bm^ (v) Minority interests’ share of net profit Ho$ AëndJ© {hV Ho$ A§e H$mo g_o{H$V H$ånZr Ho$ for the year of consolidated H$a Ho$ níMmV² bm^ Ho$ {dê$Õ n[a^m{fV Ed§ subsidiary is defined and adjusted g_m`mo{OV {H$`m J`m h¡& against the profit after tax of the consolidated company.

1.2 ghm`H$ H$ånZr 1.2 SUBSIDIARY COMPANY ghm`H$ H$ånZr n§OrH$aU ñdm{_Ëd Name of Country of Ownership H$m Zm_ H$m à{VeV _| Subsidiary Incorpo- in % Xoe Mmby {nN>bm Company ration Current Pervious df© df© Year Year gm§^a gmëQ²>g {b{_Q>oS ^maV 60% 60% SAMBHAR SALTS INDIA 60% 60% LIMITED df© 1964 _| H$ånZr Zo ghm`H$ H$ånZr, gm°^a gmëQ>g {b. The Company has acquired the H$m A{YJ«hU {H$`m VWm df© 1964 Ho$ {bE ghm`H$ H$ånZr subsidiary company, Sambhar Salts H$m {dÎmr` {ddaU ~ZmZm Aì`mdhm[aH$ ahm& AV… g_oH$Z Ho$ Limited in the year 1964 and it is impracticable to draw the Financial AmYma Ho$ ê$n _| ghm`H$ H$ånZr Ho$ R>rH$ nyd© H$s Ad{Y Ho$ Statements of the Subsidiary Company Omar {dÎmr` {ddaUm| H$m à`moJ {H$`m J`m h¡& for the year 1964. Hence Financial Statement of the Subsidiary for immediately preceding period issued for the basis of consolidation.

117 1.3 AÝ` _hËdnyU© boIm§H$Z Zr{V`m± 1.3 OTHER SIGNIFICANT ACCOUNTING POLICY 1. boIm| H$m AmYma 1. BASIS OF ACCOUNTING ò {dÎmr` {dda{U`m± àmMrZ bmJV àWm Ho$ AZwgma The Financial Statements have been {ZaÝVa gå~Õ, amOñd _mÝ`Vm Ed§ ì`` CÕÎm H$aZo prepared in accordance with the historical H$s boIm Ho$ CnmO©Z H$s nÕ{V Ho$ AmYma na$V¡`ma {H$ò cost convention on the basis of going concern, with revenue recognised and Jò h¡& expenses accounted for on accrual system of accounting. 2. AZw_mZm| H$m Cn`moJ 2. USE OF ESTIMATES {dÎmr` {ddaUm| H$mo V¡`ma H$aZo _| AZw_mZ Ed§ nydm©Zw_mZ The preparation of Financial Statements Ano{jV hmoVo h¢, Omo km{nV Ad{Y _| n[agån{Îm`m|, requires estimates and assumptions Xo`VmAm|, amOñd VWm IMm} H$s km{nV am{e H$mo which affected the reported amounts of assets, liabilities, revenues and expenses à^m{dV H$aVo h¡§& dmñV{dH$ n[aUm_m| Am¡a AZw_mZm| Ho$ of the reporting period. The difference A§Va H$mo Cgr Ad{Y _| _mÝ`Vm Xr OmVr h¡ {Og_| between the actual results and estimates n[aUm_ kmV hmoVo h¢ AWdm dmñV{dH$ _yV© ê$n boVo h¡§& are recognised in the period in which the results are known or materialised.

3. {d{Z`moOZ 3. INVESTMENTS {d{Z`moOZ, Mmby E§d J¡a Mmby {d{Z`moOZm| _| dJuH¥$V h¡& Investments are classified into Current Mmby {d{Z`moOZ, bmJV d ~mOma _yë` Ho$ Ý`yZV_ na and Non-Current Investments. Current h¡& J¡a Mmby {d{Z`moOZ bmJV na h¡ Ed§ à~ÝYZ Ho$ Investments are stated at lower of cost or market value. Non-Current Investments _VmZwgma AñWmB© Ho$ A{V[aŠV `{X _yë`m| _| H$_r hmo are stated at cost and provision for Vmo Bg H$_r Ho$ {bE àmdYmZ {H$`m J`m h¡& diminution in value is made only if such decline is other than temporary in the opinion of the management. 4. à{H«$`m _o| Z_H$/_mb H$m _yë`m§H$Z 4. VALUATION OF INVENTORIES/ SALT IN PROCESS/

(i) ^ÊS>mamo§ VWm A{V[aŠV nwOm] H$m _yë`m§H$Z (i) Stores & Spares are valued at cost or AÝ`Wm Xem©`o J`o Ho$ A{V[aŠV bmJV AWdm Net Realisable Value whichever is ewÕ dgybr `mo½` _yë` _| go Omo ^r H$_ hmo na lower except otherwise mentioned. {H$`m J`m h¡&

(ii) H$ÀMm _mb Ed§ n¡qH$J gm_J«r H$m _yë`m§H$Z (ii) Raw Materials and Packing Materials are valued at cost or Net

118 bmJV AWdm ewÕ dgybr `mo½` _yë` _| go Omo ^r Realisable Value whichever is lower H$_ hmo, Cg na {H$`m J`m h¡& except otherwise mentioned.

(iii) aÔr _mb Ed§ AZwn`moJr gm_J«r H$mo CZHo$ (iii) Released material and scrap is AZw_m{ZV dgybr `mo½` _yë` na _yë`m§{H$V valued at estimated realisable value {H$`m J`m h¡ Am¡a n[agån{Îm`m§ (aÔr) H$m and Assets (Scraped) is valued at book value. _yë`m§H$Z CZHo$ nwñVH$s` _yë` na {H$`m J`m h¡&

(iv) Am¡Omam| H$m _yë`m§H$Z àmapå^H$ eof (nwñVH$m| Ho$ (iv) Loose tools are valued after writing AZwgma) 20 à{VeV An{b{IV {H$`o OmZo Ho$ off 20% of opening balance (as per books) and those exceeding ` 750/- ~mX {H$`m J`m h¡ VWm `{X Omo ` 750/- go added during the year. Loose tools A{YH$ hmo Vmo CÝh| df© Ho$ Xm¡amZ OmoS>m J`m h¡& costing ` 750/- or less purchased df© Ho$ Xm¡amZ ` 750/-d H$_ H$s_V Ho$ IarXo during the year are charged to the hþE Am¡Omam| H$mo amOñd ImVm| Ho$ gå~{ÝYV erfm] revenue under respective heads. _| à^m{aV {H$`m J`m h¡&

(v) Z_H$, ~«mo_rZ Ho$ ñQ>m°H$ Ed§ H$m`© àJ{V _| H$m (v) Salt, Bromine stocks and Work in _yë`m§H$Z bmJV ewÕ dgybr `mo½` _yë`, Omo H$_ Progress are valued at cost/Net Realisable Value whichever is lower. hmo, na {H$`m J`m h¡& 5. ZH$X d ZH$X Ho$ g_H$e 5. Cash & Cash Equivalents.

{d{Îm` pñW{V {ddaU _| ZH$X d ZH$X Ho$ OgH$^ _| Cash & Cash Equivalents in the balance ~¢H$ _| ZH$X, hñVJV ZJX Amoa VrZ _mh `m Cggo H$_ sheet comprise cashat bank and on hand Ad{Y H$s _yb n[anŠVma gmdrYa O_m em{_b h¡ Omo and sheet term deposit with an Original _yë` _| n[adV©Zm| go _hËd hrZ Omo{I_ Ho$ AYrZ h¡& Maturity of 3 Months or Less, which are subject to an insignificant risk of changes in Value.

6. Sy>~V Ed§ g§{X½Y ì`mnm[aH$ àm{á`m| Ed§ A{J«_ Ho$ {bE 6. P R O V I S I O N F O R B A D A N D àmdYmZ DOUBTFUL TRADE RECEIVABLES AND ADVANCES 3 df© go A{YH$ H$s ~H$m`m ì`mnm[aH$ àm{á`m| Ed§ A{J«_ Trade Receivables and Advances Outstanding for more than 3 years are H$m df© Ho$ AÝV _| nwZarjU {H$`m J`m VWm à~ÝYZ Ho$ reviewed at the close of the year and _VmZwgma ~H$m`m am{e H$s dgybr H$s A{ZpíMVVm Ho$ provision made on case to case basis in _m_bo _| _Xdma àmdYmZ {H$`m J`m h¡& case of uncertainty in the realisation of outstanding amount, in the opinion of the management. 119 7. godm{Zd¥{V bm^ 7. RETIREMENT BENEFITS

(i) n|eZ (i) Pension Z_H$ {d^mJ go H$ånZr H$s godm _| Am`o hþE Liability with regard to pensionary H$_©Mm[a`m| H$s n|eZ à^ma g§~§Yr Xo`VmE§ charges (Company share) for the (H$ånZr H$m A§e) no§eZ {Z{Y Ý`mg _| O_m staff absorbed in the company from Salt Department is being provided H$aVo hþ`o àmd{hV H$s Om ahr h¡& H$ånZr _| by crediting to Pension fund Trust. {db` go nyd© H$s Ad{Y H$s n|eZ Ho$ gm§am{eH¥$V The commuted value of Pension in _yë` (Z_H$ {d^mJ H$m A§e) H$_©Mmar H$s respect of the period prior to godm{Zd¥{Îm/_¥Ë`wnam§V Z_H$ {d^mJ go àmá hmoZo absorption (Salt Department's share) na boIm~Õ {H$`m OmVm h¡& is accounted for on retirement/death of incumbents, when received from Salt Deptt.

(ii) CnXmZ (ii) Gratuity

CnXmZ H$m à~ÝY EH$ AbJ AIÊS>Zr` Ý`mg Gratuity is administered by a Ho$ _mÜ`_ go {H$`m Om ahm h¡, {OgH$m OrdZ separate irrevocable Trust which has ~r_m {ZJ_ go g_ñV nmÌ H$_©Mm[a`m|, {gdm` taken a L.I.C. Policy covering all the AJm[a`mAm|-H$ånZr Ho$ H$m`©Xa (nrg aoQ>) eligible employees except Agarias - l{_H$m| Am¡a nmÌ X¡{ZH$ ^wJVmZ H$m_Jma H$s Company's piece-rate workers, and eligible daily paid workers in whose Xo`VmAm| H$m àmdYmZ CnXmZ A{Y{Z`_, case the liability is provided as per 1972 Ho$ AÝV©JV {H$`m J`m h¡, Ho$ {bE H$m`© the payment of Gratuity Act-1972. nm°{bgr bo aIr h¡& H$ånZr H$s ñWmnZm go nyd© No liability is provided for gratuity H$s Ad{Y Ho$ {bE H$m`© à^m[aV l{_H$m| Ho$ {bE in respect of work charged staff for CnmXmZ hoVþ H$moB© àmdYmZ Zht aIm J`m h¡& the period prior to the formation of the Company. Demands made by the Ý`mg Ûmam H$s JB© _m§J OrdZ ~r_m {ZJ_ H$s Trust including the Annual Renewal nm°{bgr Ho$ dm{f©H$s ZdrZrH$aU ewëH$$ g{hV Premium of the L.I.C. Policy after df© Ho$ 1 AŠQy>~a H$mo [b`o OmZo Ho$ níMmV² go taking 1st October of the year are bm^ Ed§ hm{Z {ddaU H$mo à^m[aV {H$`m OmVm charged to Statement of Profit & h¡& Loss.

(iii) AdH$me H$m ZH$XrH$aU (iii) Leave Encashment boIm df© Ho$ AÝV VH$ ~H$m`m AdH$me Ho$ {bE Liability for leave due upto end of the Xm{`Ëd Bg _mÝ`Vm go CnbãY H$amB© JB© h¡ {H$ accounting year has been provided boIm df© H$s g_m{á na Eogo bm^ g^r on the assumption that such benefits are payable to all employees at the H$_©Mm[a`m| H$mo Xo` hm|Jo& end of the Accounting Year. 120 (iv) ñd¡{ÀN>H$ godm{Zd¥{V `moOZm na {H$`o J`o ì`` (iv) Expenditure incurred on VRS are H$mo 5 dfmª H$s g_mZ {H$ñVm| _| An{b{IV {H$`m being written off in five years in Om ahm h¡& equal instalments.

8. ñWm`r n[agån{Îm`m§ Ed ömg 8. FIXED ASSETS AND DEPRECIATION (i) ñWmB© n[agån{Îm`m± gwg§JV AmYma na àmMrZ (i) Fixed Assets are valued at historical bmJV na Ed§ Ohm± H$ht bmJy hmo dmng àm{á cost on consistent basis and are net of `mo½` H$a Ed§ bJmZ H$mo KQ>mZo Ho$ ~mX _yë`m§{H$V refundable taxes and levies H$s JB© h¡& ñWmB© n[agån{Îm`m| Ho$ A{YJ«hU go wherever applicable. All cost gå~§{YV g^r bmJV BZ n[agån[Îm`m| Ho$ relating to acquisition of fixed assets till commissioning of such assets are ñWm{nV {H$E OmZo VH$ ny§OrJV H$s JB© h¡& capitalised.

(ii) ñWm`r n[agån{Îm`mo§ na ömg, An{b{IV _yë` (ii) Depreciation on fixed assets is being nÕ{V go H$ånZr A{Y{Z`_ 2013 H$s provided consistently on written AZwgyMr 2 _| {d{Z{X©îQ> n[agån{Îm`m| H$s down value method over useful life Cn`moJ H$s Ad{Y na àdm{hV {H$`m J`m h¡& df© of assets specified in Schedule II of the Companies Act 2013. and 100% Ho$ Xm¡amZ _yë` ` 5000/- `m H$_ H$s bmJV depreciation has been provided on H$s gån{Îm A{YJ¥hrV H$aZo na 100% ömg H$m the assets costing . ` 5,000/- or less àmdYmZ {H$`m J`m h¡& acquired during the year.

(iii) ghm`H$ H§$nZr _|, {ZXoeH$ _§S>b Ho$ (iii) In subsidiary company, depreciation 26-09-1980 Ho$ {ZU©` Ho$ AZwgma 40 dfm] on Gudha Jahapog dam has been _| JwYm Ohm§nmoJ ~m§Y na Kf©U bmBZ {d{Y charged on straight line method (SLM) in 40 years as per decision (EgEbE_) na bJm`m J`m h¡ dated 26-09-1980 of board of Directors

9. CYma bmJV 9. BORROWING COST : CYma bmJV Omo {H$ `mo½` n[agån{V`m| Ho$ CËnmXZ Borrowing costs that are attributable to {Z_m©U Ed§ A{YJ«hU H$s {deofVm Am{X Eogr acquisition, construction or production of n[agån{Îm`m§ H$s bmJV Ho$ ^mJ Ho$ ê$n _| ny§OrJV h¡& qualifying assets, are capitalised as part of the cost of such assets. A qualifying asset `mo½` n[agån{Îm`m§ Bg àH$ma H$s n[agån{V`m§ h¡ Omo is an asset that necessarily takes a dmñV{dH$ ê$n go A{V àH$ma Cn`moJ Ho$ {bE V¡`ma hmoZo substantial period of time to get ready for _| Amdí`H$ n`m©ßV g_`md{Y boVr h¡& AÝ` g^r CYma intended use. All other borrowing costs bmJV bm^ Ed§ hm{Z {ddaU _| à^m[aV H$s JB© h¡& are charged to the Statement of Profit and Loss.

121 10. A_yV© g§n{Îm`m§ 10. INTANGIBLE ASSETS

(i) àma§{^H$ _mÝ`Vm Am¡a _mn (i) INTIAL RECOGNITION AND MEASUREMENT H§$nZr Ûmam Amdí`H$ A_yV© g§n{Îm`m§, Omo Cn`moJr OrdZ H$mo n[a^m{fV H$aVr h¢, bmJV Intangible assets that are required by the company, which have define na nhMmZr OmVr h¢, ~mX _| _mn H$_ g§{MV useful life, are recognized at cost A_yV©H$aU Am¡a g§{MV hm{Z Ho$ ZwH$gmZ na subsequent measurement is done at {H$`m OmVm h¡, bmJV _| {H$gr ^r grYo c o s t i n c l u d e s a n y d i r e c t l y {Oå_oXma AmH$pñ_H$ IM© em{_b hmoVo h¢ Omo attributable incidental expenses g§n{V H$mo AnZo BpÀN>V Cn`moJ Ho$ {bE V¡`ma necessary to make the assets ready for its intended use H$aZo Ho$ {bE Amdí`H$ hmoVo h¢

(ii) DERECOGNITION (ii) DERECOGNITION EH$ A_yV© g§n{V H$mo nhMmZ Zht {b`m OmVm h¡ An intangible assets is dercognized O~ CZHo$ Cn`moJ go `m CZHo$ {ZnQ>mao na H$moB© when no future economic benefits ^{dî` Am{W©H$ bm^ Ano{jV Zht hmoVm h¡& are expected from their use or upon A_yV© g§n{Îm`m| Ho$ {H$gr AmBQ>_ Ho$ {ZnQ>mao na their disposal. Gains and losses on bm^ Am¡a hm{Z A_yV© g§n{Îm`m| Ho$ g§MmbZ Ho$ disposal of an item of intangible assets are determine by comparing gmW {ZnQ>mZ go g§gm{YV H$s VwbZm H$aHo$ the processed from disposal with the {ZYm©[aV H$s OmVr h¡ Am¡a bm^ Am¡a hm{Z ImVm| carrying of intangible assets and are Ho$ ~`mZ _§o _mÝ`Vm àmá hmoVr h¡& recognized in the statement of profit and loss accounts

(iii) n[aemoYZ (iii) AMORTIZATION A_yV© g§n{VH$o$ê$n _| nhMmZo OmZo dmbo Cost of software recognized as gm°âQ>do`a H$s bmJV H$m Cn`moJ H$aZo Ho$ intangible assets is amortized on straight line method over a period of H$mZyZr A{YH$ma H$s Ad{Y `m 3 gmb Omo H$_ legal right ot use or 3 years which h¡, na grYo bmBZ {d{Y na n[aemo{YV g§n{Îm`m| ever is less. Other intangible assets H$m Cn`moJ H$aZo Ho$ {bE H$mZyZr A{YH$ma H$s are amortized on straight line Ad{Y `m g§~§{YV g§`§Ì Ho$ OrdZ H$s Ad{Y Ho$ method over a period of legal to use Xm¡amZ grYo bmBZ {d{Y na n[aemo{YV h¡ Omo or life of the related plant which ever is less. H$^r ^r H$_ h¡&

11. ghm`Vm AZwXmZ 11. GRANT-IN-AID

df© Ho$ Xm¡amZ CnH$a {Z{Y go ghm`Vm AZwXmZ Omo {H$ Grant-in-aid received/sanctioned during nyU©/ny§OrJV/{dH$mg H$m`© Ho$ {bE àmá/ ñdrH¥$V hmoVm the year from Cess Fund against 122 h¡, AÝ`Wm d{U©V Zht h¡, Ho$ A{V[aŠV, ny§Or Ama{jV Completed/Capital/Development work {Z{Y ImVo _| A§V[aV H$a Xr OmVr h¡, Cg pñW{V _| is transferred to Capital Reserve Account Eogr Am[W©H$ ghm`Vm àmßV n[agån{Îm`m| na ömg ny§Or except as otherwise stated. In that case the depreciation on such subsidised assets is Ama{jV {Z{Y Ed§ bm^ Ed§ hm{Z {ddaU H$mo àmßV being charged to Capital Reserve and ghm`Vm AZwXmZ Am¡a H$ånZr Ûmam dhZ H$s JB© bmJV Statement of Profit and Loss in the ratio of Ho$ AZwnmV _| à^m[aV {H$`m Om ahm h¡& Grant in aid received and cost borne by the Company.

12. Z_H$ ^ÊS>mam| H$s N>rOV H$m àmdYmZ 12. PROVISION FOR WASTAGES ON SALT STOCKS

Z_H$ H$s T>o[a`m| H$m A{Z`{_V AmH$ma hmoZo Ho$ H$maU Physical verification of salt heaps on Z_H$ H$s T>o[a`m| H$m ghr Ed§ {dídeZr` AmYma na accurate and reliable basis is not feasible àË`j gË`mnZ g§^d Zht h¡& {Og df© T>o{a`m§ nyar CR>m because of the irregular shapes of salt heaps. Actual deficit/wastages are br OmVr h¢ Cgr {dÎmr` df© Ho$ boIm| _| dmñV{dH$ adjusted in the accounts of the financial N>rOV/H$_r H$m g_m`moOZ H$a {b`m OmVm h¡& `Ú{n year in which the heaps are finally {dÎmr` df© _| CËnm{XV/ ^ÊS>m[aV Z_H$ na 10 cleared. However, provision for wastages à{VeV H$s Xa go VWm df© Ho$ Xm¡amZ {OZ T>o[a`m| H$mo nyU© @10% of the quantity produced/stored ê$n go Zht CR>m`m J`m h¡ CZ_| df© Ho$ àmapå^H$ during the financial year and @ 5% on the opening stock of the year is made in eof na 5 à{VeV H$s Xa go N>rOV H$m àmdYmZ {H$`m respect of salt heaps not finally cleared OmVm h¡& during the year.

13. g§`wŠV _w»`mb` ì`` H$m A{^^mOZ 13. APPORTIONMENT OF COMMON CORPORATE OFFICE EXPENSES

(i) {hÝXþñVmZ gmëQ²>g {b{_Q>oS> (YmaH$ H$ånZr) (i) There is a common Chairman & Am¡a gm§â gmëQ²>g {b{_Q>oS> (ghm`H$ H$ånZr) Managing Director for Hindustan Ho$ {bE AÜ`j Ed§ à~§Y {ZXoeH$ EH$ hr h¢& Salts Ltd. (Holding Company) and Sambhar Salts Ltd (Subsidiary nm[al{_H$ {d^mOZ Ho$ g§~§Y _| {Z`wpŠV eVm] _| Company). In the absence of any H$moB© {d{eîQ> dU©Z Z hmoZo go Bgo XmoZm| H$ån{Z`m| specific mention in the terms of his Ho$ _Ü` H«$_e… 25% d 75% Ho$ AZwnmV _| appointment as regards sharing of A{^^m{OV {H$`m J`m h¡& the remuneration the same is apportioned between the two Companies in the ratio of 25% and 75% respectively. (ii) àYmZ H$m`m©b` g§`wŠV ì``, ömg Am¡a ã`mO (ii) The Corporate Office common (AÜ`j Ed§ à~ÝY {ZXoeH$ Ho$ nm[al{_H$ expenses, depreciation and interest g{hV) Am¡a àm{á`m| H$mo 25% YmaH$ H$ånZr (including Chairman and Managing 123 Ed§ 75% BgH$s ghm`H$ H$ånZr (gm§â Director's remuneration) and gmëQ²>g {b{_Q>oS>) _| {d^m{OV {H$`m J`m h¡& receipts have been apportioned 25% between the holding Company and 75% in its subsidiary Company (Sambhar Salts Ltd.). 14. nydm©d{Y g_m`moOZ 14. PRIOR PERIOD ADJUSTMENTS Mmby boIm df© go nyd© H$s Ad{Y go g§~§{YV gm¡Xm| Ho$ In respect of the transactions pertaining to g§~§Y _| H$ånZr boIm _mZH$m| Ho$ AZwê$n à{H«$`m the period prior to the current accounting year, the Company follows the practice in AnZmVr h¡& the conformity with the Accounting Standards. 15. AZwg§YmZ Ed§ {dH$mg 15. RESEARCH AND DEVELOPMENT AZwg§YmZ Ed§ {dH$mg bmJV (A{O©V ñWm`r Research and development cost (other n[agån{V`m| H$s bmJV Ho$ Abmdm) df© Ho$ ì`` Ho$ ê$n than cost of fixed Assets acquired) are _| {Og df© _| ì`` {H$ò OmVo h¢, à^m[aV H$a {Xò OmVo charged as an expense in the year in which they are incurred. h¢&

16. H$amamonU 16. TAXATION (i) Mmby Am` H$a H$m {ZYm©aU Am`H$a A{Y{Z`_ (i) Current Income Tax is determined 1961 Ho$ àmdYmZm| Ho$ AZwgma H$a `mo½` Am` on the basis of taxable income H$s JUZm Ho$ AmYma na {H$`m OmVm h¡& computed in accordance with the provision of the Income Tax Act, 1961. (ii) AmñW{JV H$a, H$a `mo½` Ed§ boIr` Am`/ì`` (ii) Deferred tax is recognised on timing _| g_`md{Y AÝVa na hmoVo h¡& Ad{Y _| hþE differences between taxable and ì`` Omo EH$ Ad{Y _| hmoVo h¡ VWm AmJo H$s EH$ accounting income/expenditure that originates in one period and are `m A{YH$ Ad{Y`m| _| n[adV©Z `mo½` Ho$ capable of reversal in one or more gm_{`H$ AÝVa Ho$ AmYma na _mZo OmVo h¢& subsequent period(s). Deferred Tax ñW{JV H$a ny§Or, `w{ŠV`wŠV/Ag§{X½Y Ho$ ~mao Asset is recognised on the basis of _| dmñV{dH$Vm Ho$ AmYma na _mÝ` hmoZo na bmJy virtual/reasonable certainty about h¡& its realisability as applicable. 17. àmdYmZ, AmH${ñ_H$ Xo`VmE§ d AmH${ñ_H$ gån{V`m§ 17. P R O V I S I O N S , C O N T I N G E N T LIABILITIES AND CONTINGENT ASSETS AZw_mZ Ed§ _mn H$s n`m©ßV _mÌ Ho$ àmdYmZ _| Provisions involving substantial degree nyd© KQ>ZmAm| Ho$ n[aUm_ Ho$ ê$n _| dV©_mZ à^md of estimation and measurement are Ed§ gmYZm| Ho$ ~«mh` àdmh H$s g§^mdZm {Z{hV recognised when there is present

124 h¡& {dÎmr` {ddaUm| _| AmH${ñ_H$ n[agån{Îm`m| obligation as a result of past events and it H$mo Z Vmo {MpÝhV Am¡a Z hr Xem©`m J`m h¡& is probable that there will be an outflow of AmH${ñ_H$ Xo`mVmAm| `{X _hËdnyU© hmo, H$mo resources. Contingent Assets are neither recognised nor disclosed in the financial {Q>ßnUr Ho$ ê$n _| Xem©`m J`m h¡& statements. Contingent liabilities, if material, are disclosed by way of notes.

18. amoH$‹S> àdmh {ddaU 18. CASH FLOW STATEMENT amoH$‹S> àdmh {ddaU na boIm _mZH$ (EEg-3) _| Cash Flow Statement is prepared in Xem©`m J`m ""amoH$‹S> àdmh {ddaU'' AàË`j nÕ{V Ho$ accordance with the indirect method AZwgma V¡`ma {H$`m J`m h¡& prescribed in Accounting Standard on 'Cash Flow Statement" (AS-3).

19. n[agån{Îm`m| _| j{V 19. IMPAIRMENT OF ASSETS n[agån{V`m| H$s bmB© JB© am{e H$s àË`oH$ {dÎmr` {ñW{V The carrying amounts of assets are {ddaU H$s VmarI na g_rjm H$s JB© h¡& `{X H$ht reviewed at each Balance Sheet date. In case there is any indication of impairment AmÝV[aH$ `m ~mø H$maUm| go n[agån{V`m| _| H$_r B§{JV based on Internal / External factors, an hmoVr h¡ Vmo Bg hm{Z H$mo Ohm§ H$ht n[agån{Îm`m| H$m impairment loss is recognized wherever bm`m J`m _yë` BZH$s dgybr `mo½` am{e go A{YH$ Ho$ the carrying amount of an asset exceeds ê$n _| ñdrH$m`© {H$`m OmVm h¡& its recoverable amount. 20. AmñW{JV amOñd ì`` H$m AnboIZ 20. WRITE OFF OF DEFERRED REVENUE EXPENDITURE àM{bV Aä`mg Ho$ AZwgma AmñW{JV amOñd ì`` As per practice in vogue, the deferred nm§M g_mZ {H$ñVm| _| {Og df© _| hmoVo h¡, An{b{IV revenue expenditure is being written off in five equal annual instalments {H$`o OmZo h¡& beginning from the year in which such expenditure are incurred. 21. àma§{^H$ Am¡a n[a`moOZm ì`` 21. PRELIMINARY AND PROJECT EXPENDITURE n[a`moOZm na {H$`m J`m ì`` J¡a Mmby n[agån{Îm`m| Ho$ Expenditure incurred on projects is ê$n _| Xem©`m J`m h¡ Ed§ Cgo à~ÝYZ Ûmam {bE JE shown as other non-current assets and {ZU©` Ho$ AZwgma n[a`moOZm H$mo Mmby hmoZo Ho$ df© _| will be charged/capitalized in the year in which it is decided by the management to à^m{dV/ny§OrJV {H$`m OmVm h¡; AÝ`Wm `{X à~ÝYZ implement the project. Otherwise, in case, Ûmam n[a`moOZm H$mo ~ÝX H$aZo/bmJy Z H$aZo H$m {ZU©` the management decides not to {b`m OmVm h¡ Vmo Eogr n[a`moOZm go g§~§{YV ì`` Cg implement/close the project, expenditure df© Ho$ {Og_| Eogm {ZU©` {b`m J`m h¡, bm^ hm{Z on such project is charged to the {ddaU _| à^m{dV {H$`m OmVm h¡& Statement of Profit & Loss for the year in which such decision is taken. 125 31 _mM©, 2018 H$mo g_má df© Ho$ g_o{H$V {dÎmr` {ddaU na {Q>ßn{U`m§ Notes on Consolidated Financial Statements for the Year ended 31st March, 2018 (` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-2 A§e ny§Or H$mo$Am§H$‹S>o H$mo Am§H$‹S>o Note No. 2- SHARE CAPITAL Figures as on Figures as on 31-03-2018 31-03-2017 A{YH¥$V/Authorised

àË`oH$ ` 1000/- Ho$ 600,000 g_Vm A§e ({nN>bo df© 500,000 g_Vm A§e) 600,000 Equity Share (Previous year 6000.00 5,000.00 500,000 Equity Shares) of ` 1000/- each

6000.00 5,000.00 {ZJ©{_V, A{^XV Ed§ àXÎm Issued, Subscribed and paid up 5205.96 4,205.96

àË`oH$ ` 1000/- Ho$ nyU© àXÎm 52,0596 g_Vm A§e (JV df© 42,0596 g_Vm A§e) (Cn`wŠV A§em| _| go 15,461 A§e ZH$X _| ^wJVmZ àmá {H$`o {~Zm Amd§{Q>V) 520,596 Equity Share (Previous year 420,596 Equity Shares) of ` 1000/- each fully paid up (Out of above shares, 15,461 fully paid up shares allotted without payment being received in cash)

5205.96 4,205.96

126 {Q>ßnUr-2.1 … 5% A§e _| A{YH$ A§eYm[a`m| H$m 31.03.2018 31.03.2017 {ddaU H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 2.1 : Details of Shareholders Figures as on Figures as on holding more than 5% Shares: 31-03-2018 31-03-2017 Ym[aV A§em| H$s g§»`m YmaUm H$m à{VeV Ym[aV A§em| H$s g§»`m YmaUm H$m à{VeV No. of No. of Shares Held % of Holding Shares Held % of Holding ^maV Ho$ _mZZr` amîQ´>n{V Hon'ble President of India 520,596 100% 420,596 100%

(` bmI _|) (` In Lakh)

{Q>ßnUr-2.2 … df© Ho$ Xm¡amZ ~H$m`m A§em| _| {ddaU 31.03.2018 31.03.2017 NOTE - 2.2 : Details of number of shares H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on outstanding during the year 31-03-2018 31-03-2017 A§em| H$s g§»`m am[e A§emo H$s g§»`m am{e Number of Amount Number of Amount Shares Shares df© Ho$ àmaå^ _| ~H$m`m A§e Shares outstanding at the beginning of the year 420596 4205.96 378,796 3,787.96 df© Ho$ Xm¡amZ {ZJ©{_V A§e Shares Issued during the year 100,000 1000 41,800 418.00 df© Ho$ Xm¡amZ dmng IarXo J`o A§e Shares bought back during the year - - - - df© Ho$ AÝV _| ~H$m`m A§e Shares outstanding at the end of the year 5,20,596 5205.96 420,596 4,205.96

127 (` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-3 … Ama{jV Ed§ A{Yeof H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 3 : RESERVES & SURPLUS Figures as on Figures as on 31-03-2018 31-03-2017 ny§OrJV g§M`/Capital Reserves JV {dÎmr` pñW{V {ddaU Ho$ AZwgma As per the last Balance Sheet 1026.29 1,026.30 df© Ho$ Xm¡amZ d¥{Õ/Addition during the year - - KQ>mB`o…- df© Ho$ Xm¡amZ (ömg) g_m`mo{OV Less: Adjusted During the year (Depreciation) - 0.01 `moJ (A)/Total (A) 1026.29 1,026.29 bm^ Ed§ hm{Z {ddaU _| Am{YŠ` Surplus in Statement of Profit & Loss JV {dÎmr` pñW{V {ddaU Ho$ AZwgma As Per the last Balance Sheet (3535.07) (3,058.64) Omo{‹S>E/KQ>mB`o… bm^/(hm{Z) df© Ho$ Xm¡amZ Add/Less:- Profit/(Loss) during the year 28.68 (472.79) ghm`H$ H$ånZr _| ny§OrJV g§M` H$m A{V[aŠV A§e Share of Addition in Capital Reserves in Subsidiary Co. - - ghm`H$ H$ånZr _| ny§Or AZwXmZ _| õmg H$m A§e Share of Dep. in Capital Grant in Subsidiary Co. (2.66) (3.75) ghm`H$ H$ånZr _| C{MV _yë` H$s XþH$mZ Ho$ bm^ H$m A§e $Share of Fair Price Shop Profit in Subsidiary Company 0.08 0.11

`moJ (~)/Total (B) (3508.97) (3,535.07)

Aëng§»`H$ dJ© Ho$ {hV/Minority Interest JV {dÎmr` pñW{V {ddaU Ho$ AZwgma As per the last Balance Sheet (1224.80) (880.23) Aëng§»`H$ dJ© Ûmam Ym[aV A§em| H$m A§{H$V _yë` Face Value of Shares held by Minority - -

128 (` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-3 … Ama{jV Ed§ A{Yeof (Omar) H$mo Am§H$‹S>o H$mo$ Am§H$‹S>o NOTE - 3 : RESERVES & SURPLUS (Contd.) Figures as on Figures as on 31-03-2018 31-03-2017 Omo{‹S>E/KQ>mB`o… bm^/(hm{Z) df© Ho$ Xm¡amZ Add/Less:- Profit/(Loss) during the year (103.24) (342.14) ny§OrJV g§M` _| Aëng§»`H$ H$o Am{YŠ` H$m A§e Minority Share of Additions in Capital Reserves - - ny§OrJV AZwXmZ _| Aëng§»`H$ dJ© H$s õmg H$m A§e Minority Share of Dep. in Capital Grant (1.77) (2.51) C{MV _yë` H$s XþH$mZ Ho$ bm^ _| Aëng§»`H$ dJ© H$m A§e Minority Share in Fair Price Shop Profit 0.05 0.08

`moJ (g)/Total (C) (1329.76) (1,224.80) C{MV _yë` H$s XþH$mZ _| A{Yeof Surplus with Fair Price Shop - -

`moJ (X)/ Total (D) - -

Hw$b `moJ (A+~+g+X)/Grand Total (A+B+C+D) (3812.44) (3,733.58)

(i) Aën g§»`H$ dJ© Ho$ {hV _| ` 1,000/- àË`oH$ _yë` Ho$ 4,000 nyU© àXÎm A§e g{hV amOñWmZ gaH$ma H$mo dr.Q>r. H¥$îUm_mMmar AdmS>© H$s eVm] _| CgHo$ am`ëQ>r A{YH$ma Ho$ {déÕ Ed§ Aën g§»`H$ dJ© Ho$ àmapå^H$ {hV Ho$ ^mJ Ho$ ê$n _| Omar& The Minority Interest comprises of 4,000 Shares of ` 1,000/- each fully paid and issued to the Rajasthan Govt. against their Royalty Rights in terms of V.T. Krishnamachari Award and form the part of opening Minority Interest. (ii) C{MV _yë` H$s XþH$mZ H$s A{YH$ gånyU© am{e AbJ ApñVËd go g§~§{YV h¡ Omo {H$ ghm`H$ H$ånZr Ûmam AnZo H$_©Mm[a`m| Ho$ H$ë`mU Ho$ {bE MbmB© OmVr h¡& The whole amount of Surplus with fair price shop is related to the separate entity which is operated by the Subsidiary for the benefit of its employees.

129 (` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-4 … XrKm©d{Y G$U H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 4 : LONG TERM BORROWINGS Figures as on Figures as on 31-03-2018 31-03-2017

Agwa{jV/UN-SECURED CÚmoJ _§Ìmb`, ^maV gaH$ma go G$U Loans from Govt. of India, Ministry of Industry 280.00 65.00 280.00 65.00

^maV gaH$ma go G$U d Cg na àmoX²^yV ã`mO d ~H$m`m nwpîQ> d {_bmZ Ho$ AYrZ h¡& Loan from government of India and Interest accrued and due on loans are Subject to confirmation and reconciliations.

(` bmI _|) (` In Lakh) {Q>ßnUr-4.1 … gaH$mar G$U H$m {ddaU (5 dm{f©H$ {H$ñVm| _| ^wJVmZ `mo½`) NOTE - 4.1 : DETAILS OF GOVERNMENT LOAN (PAYABLE IN 5 YEARLY INSTALLMENT) ã`mO H$s gm_mÝ` Xa XÊS> ñdê$n ã`mO H«$.g§. G$U am{e Mmby df© JV df© (à{VeV) H$s Xa (à{VeV) S.No. Loan Amount C.Y. P.Y. Normal Rate Of Penal Rate Of Interest (%) Interest (%)

1 150.00 150.00 11.50 14.25 2 678.50 678.50 12.50 15.25 3 37.79 37.79 15.50 18.25 4 75.00 75.00 13.50 16.00 5 300.00 300.00 11.50 14.00 `moJ/Total 1241.29 1241.29

KQ>mB`o…- A{VemoÜ` Mmby n[anŠdVm 961.29 1176.29 Less: Overdue Current Maturities eof XrKm©d{Y G$U 280.00 65.00 Balance Long Term Debts

130 (` bmI _|) (` In Lakh) {Q>ßnUr-5 … XrKm©d{Y àmdYmZ 31.03.2018 31.03.2017 NOTE - 5 : LONG TERM PROVISIONS H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017

S>r gr Ama Or Ho$ {bE/FOR D C R G df© Ho$ àmaå^ _| eof/Balance at the beginning of the year 479.82 608.87 Omo{‹S>E… df© Ho$ {bE àmdYmZ/Add: Provision for the year 9.14 24.77 KQ>mBò… df© Ho$ Xm¡amZ ^wJVmZ/Less: Payment during the year 74.33 153.82 `moJ(E)/Total (A) 414.63 479.82 Nw>Q²>Q>r Ho$ ZH$XrH$aU Ho$ {bE/For Encashment of leave df© Ho$ àmaå^ _| eof/Balance at the beginning of the year 260.32 262.39 Omo{‹S>E… df© Ho$ {bE àmdYmZ/Add: Provision for the year 73.58 53.93 KQ>mBò… df© Ho$ Xm¡amZ ^wJVmZ/g_m`moOZ Less: Payments/Adjustments during the year 86.30 56.00 `moJ (~r)/Total (B) 247.60 260.32 Z_H$ Ho$ ñQ>m°H$ H$s N>rOV Ho$ {bE/For Wastage of Stock of Salt df© Ho$ àmaå^ _| eof/Balance at the beginning of the year 48.83 36.61 Omo{‹S>E… df© Ho$ {bE àmdYmZ/Add: Provision for the year 37.44 68.45 86.27 105.06 KQ>mBò… df© Ho$ Xm¡amZ T>o[a`m| H$s nyU© {ZH$mgr na N>rOV Less: Wastage on Final Clearance of heaps during the year 32.32 56.23 KQ>mBò… A{V[aŠV àmdYmZ nwZ… An{b{IV Less: Excess Provision Written Back 7.66 - 46.29 48.83 H$moÝQ´>m Ho$ AZwgma ì`mnma _| ñQ>m°H$ KQ>m`m J`m Deducted from Stock in Trade as per Contra 46.29 48.83 `moJ (gr)/Total (C) - - g§gm{YV Z_H$/Cn-CËnmX H$s N>rOV Ho$ {bE$ For Wastage of By-Product/Processed Salt df© Ho$ àmaå^ _| eof/Balance at the beginning of the year 0.56 0.56 Omo{‹S>E… df© Ho$ {bE àmdYmZ/Add: Provision for the year - - 0.56 0.56 131 (` bmI _|) (` In Lakh) {Q>ßnUr-5 … XrKm©d{Y àmdYmZ (Omar) 31.03.2018 31.03.2017 NOTE - 5 : LONG TERM PROVISIONS (Contd.) H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017

KQ>mB`o… df© Ho$ Xm¡amZ T>o[a`m| H$s nyU© {ZH$mgr na N>rOV Less: Wastage on Final Clearance of heaps during the year - - 0.56 0.56

H$moÝQ´>m Ho$ AZwgma ì`mnma _| ñQ>m°H$ KQ>m`m J`m Deducted from Stock in Trade as per Contra 0.56 0.56 `moJ (S>r)/Total (D) - - Hw$b `moJ (E+~r+gr+S>r)/Grand Total (A+B+C+D) 662.23 740.14

132 (` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-6 … Aënmd{Y G$U H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 6 : SHORT TERM BORROWINGS Figures as on Figures as on 31-03-2018 31-03-2017 gwa{jV/SECURED

A{X{dH$f© ImVm/Overdraft Account ñQ>oQ> ~¢H$ Am°\$ ~rH$mZoa EÊS> O`nwa State Bank of Bikaner & Jaipur - - ` 13.74 bmI H$s E\$.S>r.Ama. Ho$ ~§YH$ Ûmam gwa{jV (JV df© ` 13.74 bmI) Secured by Pledge of FDR of ` NIL lakh (P.Y. ` 13.74 lakh)

ñQ>oQ> ~¢H$ Am°\$ BpÊS>`m/State Bank of India 29.14 28.11 ` 84.66 bmI H$s E\$.S>r.Ama. Ho$ ~§YH$ Ûmam gwa{jV (JV df© ` 79.55 bmI) Secured by Pledge of FDR of ` 84.66 lakh (P.Y. ` 79.55 lakh) n§Om~ ZoeZb ~¢H$/Punjab National Bank 296.49 259.91 ` 380 bmI H$s E\$.S>r.Ama. Ho$ ~§YH$ Ûmam gwa{jV (JV df© ` 348.95 bmI) Secured by Pledge of FDR of ` 380 lakh (P.Y. ` 348.95 lakh)

ZH$X O_m ImVm/Cash Credit Account ñQ>oQ> ~¢H$ Am°\$ ~rH$mZoa EÊS> O`nwa State Bank of Bikaner & Jaipur 4.67 65.56

(nwñVH$s` XoZXmar Ed§ ñQ>m°H$ H$s {Jadr Ûmam ghm`H$ H$ånZr H$s ñWmB© n[agån{Îm`m| na àW_ à^ma) (Secured by hypothecation of Stock and Book debts & first charged on Fixed Assets of the Subsidiary)

`moJ/Total 330.30 353.58

133 (` bmI _|) (` In Lakh) {Q>ßnUr-6.1 … gwa{jV G$U H$m {ddaU 31.03.2018 31.03.2017 H$mo Am§H$‹So| H$mo Am§H$‹S| NOTE - 6.1 : DETAILS OF SECURED BORROWINGS Figures as on Figures as on 31-03-2018 31-03-2017 am{e ã`mO Xa am{e ã`mO Xa H«$.g§. ~¡¢H$ H$m Zm_ (` bmIm| _|) (à{VeV) (` bmIm| _|) (à{VeV) S.No. Name of Bank Amount Interest Rate Amount Interest Rate (` In Lakh) (%) (` In Lakh) (%) A{X[dH$f© ImVm OVERDRAFT ACCOUNT 1 ñQ>oQ> ~¢H$ Am°\$ BpÊS>`m (Oo.Eb.EZ. _mJ©) State Bank of India (JLN Marg) - - - - 2 ñQ>oQ> ~¢H$ Am°\$ BpÊS>`m/State Bank of India 29.14 7.90 28.11 7.90

3 n§Om~ ZoeZb ~¢H$/Punjab National Bank 296.49 7.60 259.91 8.50 ZH$X O_m ImVm CASH CREDIT ACCOUNT 4 ñQ>oQ> ~¢H$ Am°\$ BpÊS>`m (Eg.E_.Eg. hmBdo) grgr State Bank of India (SMS Highway) CC 4.67 10.50 65.56 12.30

(` bmI _|) (` In Lakh) {Q>ßnUr-7 … ì`mnma Xo` 31.03.2018 31.03.2017 NOTE - 7 : TRADE PAYABLES H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017 Amny{V© {H$`o _mb Ho$ {bE {d{dY boZXma Sundry Creditors for Goods Supplied 291.43 287.25 ì``m| Ho$ {bE {d{dY boZXma/Sundry Creditors for Expenses 223.85 169.54 AÝ` Ho$ {bE {d{dY boZXma/Sundry Creditors for Others 77.14 151.68 `moJ/Total 592.42 608.47 (i) H$ånZr Zo gyú_, bKw Ed§ _Ü`_ EÝQ>aàmBOoO S>dbn_oÝQ> EŠQ> 2006 Ho$ VhV Amny{V© H$ÎmmAm| go CZHo$ ñVa Ho$ ~mao _| Amdí`H$ gyMZm àmá Zht H$s h¡& Bg{bE CŠV A{Y{Z`_ Ho$ VhV df© Ho$ A§V _| BZH$s AXo` am{e, ã`mO Ho$ gmW/ã`mO Xo` Ho$ ~mao _| Iwbmgm Zht {H$`m J`m h¡& The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been made. (ii) Amny{V© H$Îmm©Am| go CZHo$ ñVa E_.Eg.E_.B©. BH$mB© Ho$ ~mao _| n`m©á gyMZm Ho$ A^md _| Eogr CnH«$_m| Ho$ ~H$m`m {ZYm©[aV Zht {H$`o Om gH$Vo& In view of insufficient information from the suppliers regarding their status as MSME Unit, amount overdue to such undertakings cannot be ascertained. 134 (` bmI _|) (` In Lakh) {Q>ßnUr-8 … AÝ` Mmby Xm{`Ëd 31.03.2018 31.03.2017 NOTE -8 : OTHER CURRENT LIABILITIES H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017 XrKm©d{Y G$Um| H$s Mmby n[anŠdVm Current Maturities of Long Term Debts ^maV gaH$ma go G$U (A{VemoÜ` am{e g{hV) Loan from Govt. of India (Including overdue amount) 961.29 1,176.29 G$U na Cnm{O©V Ed§ Xo` ã`mO Interest Accrued and Due on Borrowing ^maV gaH$ma go G$U na Xo` ã`mO Interest due on Loan from Govt. of India 1562.34 1,905.11 Cg _yë` Ho$ ^mJ Ho$ {bE A{J«_ àm{á`m± Omo A^r {X`m OmZm h¡ Advance receipts for the portion for which value is still to be given 159.13 163.39 gaH$mar {d^mJ H$mo Xo` ~H$m`m Dues Payable to Govt. Departments 25.14 13.53 AÝ` ^wJVmZ `mo½`/Other Payable IMm] Ho$ {bE Xm{`Ëd/Liabilities for Expenses 220.94 206.59 d¡Ym{ZH$ Xm{`Ëd/Statutory Liabilities 20.61 33.66 AÝ` Xm{`Ëd/Other Liabilities à{V^y{V O_m/Security Deposits 275.63 277.54 AÝ`/Others 35.48 22.26 `moJ/Total 3260.56 3,798.37

(` bmI _|) (` In Lakh) {Q>ßnUr-8.1 … MyH$ H$s Ad{Y Ed§ am{e NOTE -8.1 : AMOUNT AND PERIODS OF DEFAULTS G$U Ed§ ã`mO Ho$ nwZ^w©JVmZ g§~§Y _| {dÎmr` pñW{V {ddaU H$s VmarI H$mo {ZaÝVa CŠV MyH$ Ho$ g§~§Y _| … In case of Continuing default as on the balance sheet date in repayment of loans and interest with respect to above: 1. MyH$ H$s Ad{Y/Period of Default 1 go 11 df© 1 go 10 df© 1 to 11 Years 1 to 10 Years 2. MyH$ H$s am{e/Amount of Default 2523.63 3,081.40 ^maV gaH$ma go G$U Ed§ Cg na Cnm{O©V ã`mO Ed§ ~H$m`m, nwpîQ> Ed§ {_bmZ Ho$ AYrZ h¡&/Loan from Government of India and Interest accrued and due on loans are subject to confirmation and reconciliations. 135 (` bmI _|) (` In Lakh) {Q>ßnUr-8.2 … gaH$mar G$U H$m {ddaU (5 dm{f©H$ {H$íVm| _| Xo`) NOTE - 8.2 : DETAILS OF GOVERNMENT LOAN (PAYABLE IN 5 YEARLY INSTALLMENT) ã`mO H$s gm_mÝ` Xa XÊS> ñdê$n ã`mO H«$.g§. G$U H$s am{e Mmby df© JV df© (à{VeV) H$s Xa (à{VeV) S.No. Loan Amount Current Previous Normal Rate Of Penal Rate Of Year Year Interest (%) Interest (%) 1 150.00 150.00 11.50 14.25 2 678.50 678.50 12.50 15.25 3 37.79 37.79 15.50 18.25 4 75.00 75.00 13.50 16.00 5. 300.00 300.00 11.50 14.00 `moJ/Total 1241.29 1241.29 KQ>mBE… XrYm©d{Y CYma/ Less: Long term Borrowing 280 65 A{VemoÜ` eof/Mmby n[anŠdVm/ Balance Overdue/Current Maturities 961.29 1176.29

(i) _ÊS>r _| gmoë`yeZ IZZ n[a`moOZm-{h_mMb àXoe H$s gaH$ma Ho$ gmW hþE g_Pm¡Vo Ho$ AZwgma {h_mMb àXoe gaH$ma H$mo ` 43.55 bmI H$s am{e BpŠdQ>r Ho$ ê$n _| gmoë`yeZ _mBqZJ gh-H$mpñQ>H$ gmoS>m n[a`moOZm Ho$ {bE ZB© H$ånZr hoVw {h_mMb àXoe gaH$ma Ûmam ^y{_ Ed§ _yb^yV T>m±Mo Ho$ {dH$mg hoVw CnbãY H$amB© OmEJr& `Ú{n H$ånZr Ûmam ` 43.55 bmI H$s Xo`Vm àmd{hV Zht H$s JB© Š`m|{H$ Xo`Vm Ho$db ZB© H$ånZr Ho$ JR>Z na CËnÞ hmoJr& At Mandi Solution Mining Project- The amount of ` 43.55 lakh will be provided to Government of Himachal Pradesh as equity of new company for Solution Mining-cum-Caustic Soda Project on account of development of land and infrastructure by H.P. Govt. as per settlement with the Govt. of H.P. However, the Company has not provided any liability for ` 43.55 lakh since the liability will arise only at the time of formation of New Company. (ii) H$ånZr Zo CÎma nyd© aoëdo go am_ZJa _| ` 33,506 Ed§ g{d©g Q>¡Šg H$s bmBg¢g ewëH$ na ^y{_ br h¡& aoëdo Zo Bg ^y{_ Ho$ g§~§Y _| bmBg¢g \$sg H$m g_`-g_` na nwZarjU {H$`m h¡ Am¡a Bg g§~§Y _| `h ewëH$ ` 5,40,440 à{Vdf© aIZo na Omoa {X`m h¡& H$ånZr Zo Bg nwZarjU Ho$ {Ibm\$ à{V{Z{YËd {H$`m h¡ AV… ` 33,506 Ed§ g{d©g Q>¡Šg à{V df© Ho$ _yb Xa H$mo bmBg¢g ewëH$ aIZo na Omoa {X`m h¡& àH$aU Ho$ b§{~V ahZo Ho$ Xm¡amZ AÝVa H$s am{e ` 21.14 bmI (JV df© ` 88.25 bmI) H$m àmdYmZ Zht {H$`m h¡ {Og_| ` 2.02 bmI (JV df© ` 9.85 bmI) {bpŠdS>oQ>oS> hOm©Zm em{_b h¡ Am¡a df© 1995-96 Ho$ Xm¡amZ MwH$mE JE ` 2.73 bmI H$mo aoëdo go boZm Xem©`m J`m h¡& The Company had taken land at Ramnagar on licence fee of ` 33,506 plus service tax per year from N.E. Railway. The Railway has revised the rate of license fee in respect of this land from time to time and at present the rate is ` 5,40,440 per annum. The Company has represented against this revision and has insisted for keeping the license fee at the original rate of ` 33,506 plus Pending decision of the case, no provision for the differential amount of ` 28.06 lakh (previous year ` 21.14 lakh) including liquidated damages of ` 2.67 lakh (Previous Year ` 2.02 lakh) has been made by the Company and a sum of ` 2.73 lakh paid during the year 1995-96 has been shown as due from Railways. (iii) During the year the company has reconciled the amount of loan and interest on Government Loan due as on 31-03-2018 in the books of account with the ministry of heavy industry and public enterprises, Govt. of India on the basis of reconciliation and confirmation from Govt of India the amount of excess interest charged to statement of profit and loss accounts earlier year amounitng Rs 693.12 Lakh is written back as exceptional items in the statement of profit and loss account for the year

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137 (i) ñWmB© n[agån{V`m| H$m a{OñQ>a g§Mm[aV {H$`m OmVm h¡ Am¡a Omo eof {dËVr` ImVm| _| X{e©V h¡ do a{OñQ>a _| X{e©V eofm| go {_bmZ Ho$ AYrZ h¡& Fixed Asset Register is being maintained and the balances as appearing in the financial books are under reconciliation with the balances as appearing in the Block Registers. (ii) boIm _mZH$-28 Ho$ AZwgma dm§{N>V hm{Z _| H$_r Ho$ àmdYmZ Ho$ g§~§Y _| H$ånZr à~ÝYZ Ho$ _VmZwgma n[agånpËV`m| _| H$_r Amdí`H$ Zht h¡& boIm _mZH$ 28 Ho$ AZwgma H$ånZr H$s n[agån{Îm`m| _| H$_r Zht hþB© h¡& Provision for impairment of loss as required under Accounting Standard-28 on impairment of Assets is not necessary as in the opinion of management there is no impairment of the Company's Assets in terms of AS-28. (iii) g§MmbH$ _ÊS>b Ho$ {ZU©` {XZm§H$ 26.9.80 H$o AZwgma JwT>m PnmoJ S>¡_ na ömg 40 dfm] _| bJm`m J`m h¡& As per decision dt. 26.9.80 of Board of Directors Depreciation on Gudha Jhapog Dam has been charged in 40 years. (iv) H$m`© àJ{V _| Ho$ _X Ho$ AÝVJ©V ã`mO ê$. eyÝ` (JV df© eyÝ` bmI) df© Ho$ Xm¡amZ ny§OrJV {H$`m J`m& Interest Rs. Nil lacs (Previous year NIL Lacs ) has been capitalised during the year under the head Work-in-progress. (v) gm§â _| Am`moS>rZ à{H«$`m g§`§Ì Ho$ n§yOrJV IM} Omo ñdmñÏ` _§Ìmb` ^maV gaH$ma Ûmam dhZ {H$E h¢ do ghm`H$ H$ånZr H$s n[agån{Îm`m| _| Zht Xem©ò Jò h¢, {ddaU {ZåZ àH$ma h¡…- Capital Expenditure towards Iodisation Processing Plant at Sambhar Lake borne by the Ministry of Health, Govt. of India is not appearing in Subsidiary Company's Assets. Details as under:-

31.3.2018 H$mo 31.3.2018 ewÕ IÊS>/Net Block H«$_. 31.3.2018 31.3.2017 g§. {ddaU gH$b IÊS> _yë` VH$ ömg Gross Block Depreciation S. Particulars H$mo H$mo No. Value AS AT UP TO AS AT AS AT 31.3.2018 31.3.2018 31.3.2018 31.3.2017 1. ^dZ/Buildings 2.07 1.98 0.09 0.09 2. {dÚw{VH$aU/Electrification 0.29 0.28 0.01 0.01 3. Ob nmBn bmBZ/Water Pipe Line 0.04 0.03 0.01 0.01 4. g§`§Ì Ed§ _erZar/Plant & Machinery 1.94 1.90 0.04 0.04 5. aob nW/P.Way 0.25 0.24 0.01 0.01 4.59 4.43 0.16 0.16 {nN>bo df© Ho$ Am§H$‹S>o/Previous year Figures 4.59 4.43 0.16 0.15 ^y{_ H$m {ddaU {ZåZmZwgma/The details of Land as under:- (` bmI _|)/(` In Lakh) O`nwa/JAIPUR ImamKmo‹S>m/KHARAGHODA _ÊS>r/MANDI am_ZJa/RAMNAGAR _yë` _yë` _yë` _yë` joÌ/AREA VALUE joÌ/AREA VALUE joÌ/AREA VALUE joÌ/AREA VALUE 1. nyU© ñdm{_Ëd dmbr ^y{_ - - 23596 EH$S> 24.54 7 0 2 . 7 5 d J © _rQ>a 37.92 - - Free Hold Land Acres /Sq. Mtr. 2. nQ²>Q>o na ^y{_ 2048 dJ© _rQ>a/ 5.53 - - 133.116 EH$S> - 4712.61 dJ© _rQ>a/ - Leased Hold Land Sq. Mtr. Acres Sq. Mtr. (bmBg|g \$sg na)(On licence Fee)

138 (` bmI _|) (` In Lakh) {Q>ßnUr-10 … XrKm©d{Y {Zdoe 31.03.2018 31.03.2017 NOTE - 10 : LONG TERM INVESTMENTS H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017 ghm`H$ H$ånZr _| {Zdoe/Investment in Subsidiary Company 60.00 60.00 KQ>mBò… bm^ Ed§ hm{Z Ho$ {ddaU _| g§M` Ed§ Am{YŠ` go g_m`mo{OV Less: Adjusted from Reserves & Surplus in Statement of Profit & Loss (60.00) (60.00) `moJ/Total - - H$ånZr Ho$ A{YH$ CÀM ewÕ _yë` {OgH$s ~mOma _yë` Ho$ AZwgma JUZm H$s JB© h¡ Am¡a Omo df© 2001 _| g{Q>©\$mBS> _yë`m§H$H$$ Ûmam H$s JB© h¡ Ho$ _ÔoZOa gm§â gmëQ²>g {b{_Q>oS> (ghm`H$ H$ånZr) _| {H$ò Jò ` 60.00 bmI Ho$ {d{Z`moOZ Ho$ gå~ÝY _| hm{Z`m| Ho$ {bò àmdYmZ Zht {H$`m J`m h¡& No provision for loss has been made in respect of the investment of ` 60.00 Lakh made in Subsidiary Company, Sambhar Salts Ltd. in the Books of Accounts in view of much higher net worth of the Subsidiary Company calculated on the basis of the market value of Fixed Assets which was last assessed by the Certified Assets Valuer in the year 2001. (` bmI _|) (` In Lakh) {Q>ßnUr-11 … XrK©H$mbrZ G$U Ed§ A{J«_ 31.03.2018 31.03.2017 NOTE - 11 : LONG TERM LOANS AND ADVANCES H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017 à{V^y{V O_m/Security Deposits gwa{jV, AÀN>r g_Pr J`r Secured, Considered Good - - Agwa{jV, AÀN>r g_Pr J`r Unsecured, Considered Good 39.42 38.59 g§[X½Y Doubtful - - KQ>mBò… g§{X½Y G$U Ed§ A{J«_ Ho$ {bE àmdYmZ Less: Provision for doubtful Loans and Advances - - `moJ (E)/Total (A) 39.42 38.59 AÝ` G$U Ed§ A{J«_ Other Loans and Advances gwa{jV, AÀN>r g_Pr J`r/Secured, considered good - - Agwa{jV, AÀN>r g_Pr J`r Unsecured, considered good - - g§{X½Y/Doubtful - - KQ>mBò… g§{X½Y G$U Ed§ A{J«_ Ho$ {bE àmdYmZ Less: Provision for doubtful Loans and Advances - - `moJ (~r)/Total (B) - - `moJ (E+~r)/Total (A+B) 39.42 38.59 139 (` bmI _|) (` In Lakh) {Q>ßnUr-12 … AÝ` J¡a Mmby n[agån{Îm`m§ 31.03.2018 31.03.2017 NOTE - 12 : OTHER NON-CURRENT ASSETS H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017 AmñW{JV amOñd ì`` (Ohm± VH$ An{b{IV Zht {H$E JE) Deferred Revenue Expenditure (to the extent not written off) A§e nyOr _| d¥{Õ Ho$ {bE {H$E JE ì`` Expenses incurred for increasing the share capital - - {~Q>Z© [aOadmà H$s g\$mB© Desilting of Bittern Reservoir - 4.21 AÝ` ì``/Other Expenditure 200.01 229.65 n[a`moOZm ì`` Project Expenditure 96.90 96.56 àmapå^H$ Ed§ n[a`moOZm ì`` Preliminary and Project Expenditure n[a`moOZm ì`` H$m {d^mOZ/ny§OrH$aU bpå~V Project expenditure Pending Allocation/Capitalisation 200.88 200.88 `moJ/Total 497.79 531.30

{Q>ßnUr-12.1 … àmapå^H$ Ed§ n[a`moOZm ì`` NOTE - 12.1 : PRELIMINARY & PROJECTS EXPENDITURE

H$ånZr Zo ZB© n[a`moOZm H$s {dñV¥V n[a`moOZm [anmoQ>© (S>rnrAma) ~ZmZo VWm àmapå^H$ Ed§ n[a`moOZm go g§~§{YV IM} na ` 200.88 bmI (JV df© ` 215.09 bmI) ì`` {H$E {OÝh| J¡a Mmby n[agån{Îm _| àmapå^H$ Ed§ n[a`moOZm ì`` Ho$ ê$n _| Xem©`m J`m h¡ VWm Cgo à~ÝYZ Ûmam {bE JE {ZU©` Ho$ AZwgma n[a`moOZm Ho$ Mmby hmoZo Ho$ df© _| à^m{aV/ny±OrJV {H$`m OmEJm AÝ`Wm `{X à~ÝYZ Ûmam n[a`moOZm Ho$ ~ÝX H$aZo/bmJy Z H$aZo H$m {ZU©` {H$`m OmVm h¡ Vmo Eogr n[a`moOZm go g§~§{YV ì`` Cg df© Ho$ {Og_| Eogm {ZU©` {H$`m OmVm h¡, Ho$ bm^ hm{Z {ddaU _| à^m{aV {H$`m OmVm h¡&

The Company has incurred total expenditure of ` 200.88 lakhs (Previous Year ` 200.88 lakhs) on the preparation of Detailed Project Report (DPR) and other preliminary and project related expenditure on new projects (Detailed Below) and shown under preliminary and project expenditure under other non current assets and will be charged/capitalized in the year in which it is decided by the management to implement the project. Otherwise, in case, the management decides not to implement/close the project, expenditure on such project is charged to the Statement of Profit & Loss for the year in which such decision is taken.

140 (` bmI _|) (` In Lakh) H«$. n[a`moOZm H$m Zm_ 31.03.2018 31.03.2017 g§. Name of the Project H$mo Am§H$‹S>o H$mo Am§H$‹S>o S. Figures as on Figures as on No. 31-03-2018 31-03-2017 1. gmoë`yeZ _mBqZJ n[a`moOZm-gh-Z_H$ n[aîH$aU n[a`moOZm Solution Mining Project Cum Salt Refinery Project 152.27 152.27 2. AmB©.Q>r.S>r.gr. n[a`moOZm ITDC Project 9.43 9.43 3. nmoQ>o{e`_ gë\o$Q> n[a`moOZm Potassium Sulphate Project 0.37 0.37 4. gm¡a D$Om© n[a`moOZm Solar Energy Project 9.38 9.38 5. Z_H$ YwbmB© n[a`moOZm Salt washery Project 28.63 28.63 6. `moOZm n[a`moOZm/Plan Project 0.80 0.80 `moJ/Total 200.88 200.88

(` bmI _|) (` In Lakh) {Q>ßnUr-13 … ñH$ÝY 31.03.2018 31.03.2017 NOTE - 13 : INVENTORIES H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017 (à~§YZ Ûmam à_m{UV Ed§ _yë`m§H$Z Ho$ AZwgma {b`m J`m&) (As taken valued & certified by the Management) ñH$ÝY$ d ^ÊS>ma (bmJV na AWdm ewÕ dgybr `mo½` _yë` Omo H$_ hmo) STOCK & STORES (At Cost or Net Realisable value whichever is less) A a. ^ÊS>ma, ñQ>oeZar d H$bnwO} Stores, stationary & Spare Parts 139.32 190.19 ~ b. H$ÀMm _mb/Raw Material 51.78 43.73 g c. Omar gm_J«r/Release Material 10.81 24.79 X d. ~maXmZm/Packing Material 13.10 13.83 ` e. Iwbo Am¡Oma /Loose Tools 0.04 0.05 a f. ì`mnma _| ñQ>m°H$/Stock in Trade (Refer Note No. 13.1) 1075.07 935.92 `moJ/Total 1290.12 1,208.51

141 (` bmI _|) (` In Lakh) {Q>ßnUr-13.1 … ñH$ÝY 31.03.2018 31.03.2017 NOTE - 13.1 : INVENTORIES H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017 ì`mnma _| ñQ>m°H$ (bmJV na AWdm ewÕ dgybr `mo½` _yë` Omo H$_ hmo) Stock in Trade (At cost or Net Realisable value whichever is less) A a. ~«mo_rZ (bmJV na)/Bromine (At Cost) 32.33 10.98 KQ>mBò… N>rOV Ho$ {bE àmdYmZ/Less :Provision for wastage - - `moJ (A)/Total (A) 32.33 10.98 ~ b. Z_H$/Salt 601.72 641.95 KQ>mBò… N>rOV Ho$ {bE àmdYmZ/Less :Provision for wastage 53.95 48.83 A{ÝV_ ñQ>m°H$ _| Aàmß` bm^ H$m g_m`moOZ Adj of Unrealised Profit in Closing Stock - - `moJ (~)/Total (B) 547.77 593.12 g c. g§gm{YV Z_H$/Processed Salt 34.32 71.37 KQ>mBò… N>rOV Ho$ {bE àmdYmZ/Less :Provision for wastage 0.28 0.28 `moJ (g)/Total (C) 34.04 71.09 X d. Cn-CËnmX E_OrgrEb/Bye-Product MGCL 10.51 12.04 KQ>mBò… N>rOV Ho$ {bE àmdYmZ/Less :Provision for wastage 0.28 0.28 `moJ (X)/Total (D) 10.23 11.76 ` e. H$m`© àJ{V _|/Work in Progress 450.68 248.93 KQ>mBò… N>rOV Ho$ {bE àmdYmZ/Less :Provision for wastage - - `moJ (`)/Total (E) 450.68 248.93 f. C{MV _yë` H$s XþH$mZ H$m ñQ>m°H$/Stock of Fair Price Shop 0.02 0.04 KQ>mBò… àmdYmZ/Less :Provision - - `moJ (a)/Total (F) 0.02 0.04 `moJ (A+~+g+X+`+a$)/Total (A+B+C+D+E+F) 1075.07 935.92

142 (i) Omar _mb _| ñQ>moa, ñno`g© Ed§ AÝ` ñWmB© n[agån{Îm`m± gpå_{bV h¡ Omo {H$ bå~r Ad{Y _| Cn`moJr Zht h¡ VWm CÝh| Cgr df© _| aX²Xr/Omar Xem©Vo hþE nwñVH$ _yë` na Omar _mb _| AmÝV[aV {H$`m OmVm h¡& df© Ho$ Xm¡amZ ` 0.13 bmI H$s nwñVH$ _yë` H$s aX²Xr gån{Îm H$mo hñVJV Omar _mb _| A§V[aV {H$`m J`m& Omar _mb H$s {~H«$s go àmá am{e H$mo bm^ hm{Z {ddaU _| AÝ` Am` Ho$ AÝVJ©V aX²Xr H$s {~H«$s _| Xem©`m J`m h¡ VWm Bg_| ` 0.76 bmI H$s dgybr `mo½` am{e Omo {H$ ImamKmo‹S>m Ho$ ñQ>moa _| AZwn`moJr aIo _mb/aX²Xr Ho$ g§~§Y _| h¡ {OgH$m nwñVH$ _yë` {ZYm©aU `mo½` Zht h¡& O~ {H$ BZ _Xm| H$s {~H«$s/Cn`moJ {H$`m OmEJm V~ BZHo$ g§~§Y _| Amdí`H$ g_m`moOZ {H$`m OmEJm&

Release Material includes stores, spares and other fixed assets which are no longer usable and are released/scraped in respective years and transferred to release material at book value. During the year Assets Scraps having book value of ` 0.13 lakh are transferred to Release Material in Hand. Sale Proceeds of disposal of release material are shown as sale of scraps under the head other income in the Statement of Profit and Loss. Further, its also includes a sum of ` 0.76 lakh being the estimated realisable value in respect of unserviceable material/Scrap lying in stores at Kharaghoda as the book value of these items are not ascertainable. The necessary adjustment will be made as and when these items are disposed off/utilised. (ii) gm_mÝ` ^ÊS>ma, ñWb na gm_J«r, Omar gm_J«r H$m df© Ho$ Xm¡amZ ^m¡{VH$ gË`mnZ H$a {b`m J`m h¡ Am¡a Omo AÝVa (A{YH$$ `m H$_) nm`m J`m h¡ dh AmJo {_bmZ Ho$ AYrZ h¡ Am¡a g_már Ho$ g_` g_m`moOZ {H$`m Om`oJm&

Physical Verification of General Stores, Materials at Site, Released Materials was carried out during the year and variation (Excess & Shortages) found are under further reconciliation and will be adjusted on finalisation. (iii) ghm`H$ _| … ` 29.10 bmI (JV df© ` 19.24 bmI) H$s H$_ Cn`moJr _Xm| (AmBQ>_) Ho$ {bE hm{Z`m| H$m àmdYmZ Zht {H$`m J`m h¡, Omo gm_mÝ` ^ÊS>ma _| h¡ Am¡a boIm nwñVH$m| _| bmJV na ñQ>m°H$ Ho$ ê$n _| Xem©`o J`o h¡& à~ÝYZ Ho$ _V _| H$_ Cn`moJr _Xm| H$m _yë` Cg _yë` go Á`mXm h¡, {Og _yë` na BÝh| Xem©`m J`m h¡&

In Subsidiary : No provision for losses if any on the slow moving items amounting to ` 19.24 lakh (previous year ` 29.10 lakh) lying in General Store has been made in the books and the same was shown in the Inventories at cost. In the opinion of management the current value of slow moving items is more than the value taken. (iv) ghm`H$ _| … hñVJV Omar {H$E JE _mb _| eyÝ` bmI (JV df© ` 7.01 bmI) _yë` H$m aX²Xr _mb gpå_{bV h¡, {Ogo {Z{dXm àmá à{VdoXZ Ho$ AmYma na ewÕ dgybr `mo½` _yë` na {b`m J`m h¡&

In Subsidiary : Released stores in hand including the value of Scrap amounting of NIL lakh (previous year ` 7.01 Lakh ) taken at the Net Realizable Value on the basis of tender received report.

143 (` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-14 … ì`mnm[aH$ àmpßV`m± H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 14 : TRADE RECEIVABLES Figures as on Figures as on 31-03-2018 31-03-2017 {Og {XZm§H$ na {OZH$m ^wJVmZ àmß` Wm Cggo N>… _mh go H$_ Ho$ ì`mnma àmß` Trade Receivables outstanding for a period less than six months from the date they are due for payment gwa{jV, AÀN>o$ g_Po Jò/Secured, Considered Good - - Agwa{jV, AÀN>o g_Po Jò/Unsecured, Considered Good 31.30 31.61 Agwa{jV, g§{X½Y g_Po Jò/Unsecured, Considered Doubtful - - 31.30 31.61 KQ>mBò… g{X½Y XoZXm[a`m| Ho$ {bE àmdYmZ Less: Provision for Doubtful Debts - - `moJ (E)/Total (A) 31.30 31.61 {Og {XZm§H$ na {OZH$m ^wJVmZ àmß` Wm Cggo N>… _mh go A{YH$ Ho$ ì`mnma àmß` Trade Receivables outstanding for a period exceeding six months form the date they are due for payment gwa{jV, AÀN>o g_Po Jò/Secured, Considered Good - - Agwa{jV, AÀN>o g_Po Jò/Unsecured, Considered Good 58.75 57.91 Agwa{jV, g§{X½Y g_Po Jò/Unsecured, Considered Doubtful 6.45 5.31 65.20 63.22 KQ>mBò… g§{X½Y XoZXm[a`m| Ho$ {bE àmdYmZ Less: Provision for Doubtful Debts 6.45 5.31 `moJ (~r)/Total (B) 58.75 57.91 `moJ (E+~r)/Total (A+B) 90.05 89.52

df© Ho$ Xm¡amZ ` eyÝ` bmI (JV df© ` eyÝ` bmI) nwamZr àmß` am{e H$mo H$ånZr Ûmam àmdYmZ Ho$ {dê$Õ g_m`mo{OV {H$`m J`m `Ú{n `h am{e H$ånZr à~ÝYZ Ho$ AZwgma g~go AÀN>o à`mgm| Ho$ ~mdOyX ^r dgyb Zht hmo nm`r& During the year the Company has adjusted the amount of old receivables amounting to ` Nil lakh (Previous Year ` Nil lakh) against the provision, as these amount could not be recovered in spite of best efforts in the opinion of the management of the company.

144 (` bmI _|) (` In Lakh) {Q>ßnUr-15 … ZH$X> d ZH$X Ho$ g_H$j 31.03.2018 31.03.2017 NOTE - 15 : CASH & CASH EQUIVALENTS H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017

~¢H$ _| eof/Balance with Bank:- Mmby ImVo _| eof/Balance in Current Account 90.01 49.39 gmd{YH$ O_m ImVo _o| eof/Balance in Term Deposits* 1.00 - hñVJV ZH$X>/Cash on Hand 1.12 1.13 Other Term Deposit more than 3 Months 974.72 666.40 AÝ` gmd{Y O_m 3 _hrZo go A{YH$ _mJ©> _| MoH$/Cheque in Transit - - AÝ` (H$_©Mmar, R>oHo$Xma d AÝ` H$s$à{V^y{V) Other (Securities of Staff, Contractors & Others) 12.73 8.21 `moJ/Total 1079.58 725.13

* Eg~rAmB©, O`nwa ImamKmo‹S>m Am¡a _§S>r (Eg.~r.AmB© O`nwa Ho$ gmW {nN>bo df© 1374 bmI énò Am¡a Eg~rAmB© Ho$ gmW 72.25 bmI énò) Am¡a E\$S>rAma Ho$ E\$S>rAma Ho$ gmW 76.8 9 bmI énò H$m E\$S>r énò& Eg~rAmB© g§^ma Prb Ho$ gmW {nN>br df© é& 7.37 bmI) nrEZ~r ({nN>bm df© 348.9 5 énò Am¡a 7.77 bmI énò H$m E\$S>rAma {nN>bo df© 7.30 bmI) gwajm ~moa F$U Ho$ à{V dMZ~Õ h¡& * *FDRs of Rs 76.89 Lakh Pledged with SBI, Jaipur Kharaghoda and mandi (Previous year Rs. 13.74 Lakh with SBI jaipur and Rs. 72.25 Lakh with SBI) and FDR of Rs. 380.00 Lakh Pledged with PNB (Previous Year Rs. 348.95 and FDR of Rs. 7.77 Lakhs with SBI Sambhar Lake Previous Year Rs. 7.30 Lakhs) towards Security For OD Loans (` bmI _|) (` In lakh) {Q>ßnUr-16 … Aënmd{Y G$U Ed§ A{J«_ 31.03.2018 31.03.2017 NOTE - 16 : SHORT TERM LOANS AND ADVANCES H$mo Am§H$‹S>o H$mo Am§H$‹S>o (ZH$X _| AWdm dñVw go AWdm àm{á `mo½` _yë` d dgybr `mo½`) Figures as on Figures as on (Recoverable in Cash or in Kind or for value to be received) 31-03-2018 31-03-2017 AÝ`/Other gwa{jV, AÀN>o g_Po Jò/Secured, considered good - - Agwa{jV, AÀN>o g_Po Jò (XoI| {Q>ßnUr 16.1) Unsecured, considered good (Refer Note 16.1) 1337.33 1,173.73 g§{X½Y/Doubtful 30.29 30.37 1367.62 1,204.10 KQ>mBò… g§{X½Y G$Um| Ed§ A{J«_m| Ho$ {bE n«mdYmZ Less: Provision for doubtful Loans and Advances 30.29 30.37 `moJ/Total 1337.33 1,173.73

145 (` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-16.1 … AÝ` G$U Ed§ A{J«_ (Agwa{jV, AÀN>o g_Po JE) H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 16.1 : Other Loans & Advance Figures as on Figures as on (Unsecured, Considered good) 31-03-2018 31-03-2017

AÝ`/Others ñQ>m°\$ H$mo A{J«_/Advance to Staff 1.36 1.95 gaH$mar d AÕ© gaH$mar {ZH$m`m| _| O_m Deposit with Govt. Semi Govt. Bodies 0.53 0.55 òmoV na Am`H$a H$s H$Q>m¡Vr (Mmby df©) Income Tax Deducted at Source (C.Y.) 6.84 7.23 òmoV na Am`H$a H$s H$Q>m¡Vr (JV df©) Income Tax Deducted at Source (P.Y.) 27.80 27.80 CnH$a H$m A{J«_ ^wJVmZ/Advance Payment of Cess - - A_mZV am{e/Security Deposits 90.64 64.76 n|eZ \$ÊS> Q´>ñQ> H$mo G$U/Loan to Pension Fund Trust - - n|eZ \$ÊS> Q´>ñQ> go dgybr `mo½` ì`mO Interest recoverable from Pension Fund Trust - - AÝ`/Others 1240.45 1,101.81 `moJ/Total 1367.62 1,204.10

(i) AÝ` G$U Ed§ A{J«_ _| ` 3.49 bmI (JV df© ` 3.16 bmI) ñQ>m°\$, R>oHo$Xma Ed§ AÝ` go A_mZV am{e Ho$ {dê$Õ H$ånZr Ho$ Zm_ go àmá gmd{Y O_m gpå_{bV h¡& Other Loans and Advances includes ` 3.49 lakh (Previous Year ` 3.16 lakh) against Security of Staff, Contractors and Other Received in the form of Term Deposits in Company's name. (ii) n|eZ {Z{Y Ho$ g_má hmo OmZo, n[aUm_ ñdê$n H$ånZr Zo Z_H$ {d^mJ, ^maV gaH$ma Ho$ ^yVnyd© H$_©Mm[a`m| H$mo {dÎmr` H${R>ZmB`m| go ~MmZo d n|eZ H$m ^wJVmZ H$aZo hoVw df© 2005-06 go 2009-10 Ho$ Xm¡amZ ` 300.00 bmI Ho$ Hw$b G$U àmá {H$E& H$ånZr Zo ^maV gaH$ma go Bg Xo`Vm H$mo ^yVbjr à^md go dhZ Ho$ {bE `m G$Um| H$mo AZwXmZ ghm`Vm AWdm ã`mO _wŠV G$U _mZo OmZo Ho$ {bE AZwamoY {H$`m h¡& {XZm§H$ 18.5.2005 Ho$ nÌ Ûmam ^maV gaH$ma Zo n|eZ {Z{Y Ý`mg H$s n[agån{Îm`m| Ed§ Xo`VmAm| H$mo 1.4.2005 go A{YJ¥hU H$aZo `m n|eZ ^wJVmZ Ho$ {bE H$ånZr H$mo AZwXmZ ghm`Vm CnbãY H$amZo Ho$ {bE ñdrH$ma H$a {b`m h¡& ^maV gaH$ma Zo 31 _mM© 2005 H$mo ~H$m`m XÊS>Zr` ã`mO, ã`mO Ed§ G$U _m\$ H$a {X`m h¡ VWm VËníMmV nÌ g§»`m 19-09/2005 nrB©-V {XZm§H$ 1.2.2012 Ho$ Ûmam n|eZ H$m ^wJVmZ H$aZo Ho$ {bE H$ånZr H$mo AZwXmZ ghm`Vm XoZo H$m {ZU©` {H$`m J`m& df© Ho$ Xm¡amZ H$ånZr H$mo `192.00 bmI ({nN>bo gmb 100 bmI én`o) H$s AZwXmZ ghm`Vm àmá hþB©& Bg H$mo$Ü`mZ _| aIVo hþE Z_H$ {d^mJ Ho$ ^yVnyd© H$_©Mm[a`m| H$mo ^wJVmZ `mo½` n|eZ H$s am{e H$m àmdYmZ boIm| _| Zht {H$`m J`m& Consequent to the depletion of the Pension Fund the Company has received total loans of ` 300.00 lakh during the year 2005-06 to 2009-10 for pension payments to ex-Employees of Salt Department, Government of India. In order to avoid any financial hardship to them, the Company has requested to Govt. of India for taking over this liability with retrospective effect or to treat the loans as grant-in-aid

146 {Q>ßnUr-16.1 (Omar) NOTE - 16.1 (Contd.) or at least interest free loan. The Government of India vide letter dated 18.5.2005 has agreed to take over the assets and liabilities of Pension Fund Trust as on 1.4.2005 or to provide grant-in-aid to the Company for payment of pension. The loan along with interest, penal interest as on 31st March, 2005 have already been waived off by the Government of India. Later on it was decided to provided Grant- in-Aid to the company vide letter no. 19-09/2005-PE-V dt. 01.02.2012 for disbursement of pension. During the current year Company has received `192.00 lakh (Previous year Rs. 100 Lakh) as grant-in- aid. In view of this the amount of pension payable to Ex-employees of Salt Deptt. has not been provided in the accounts.

(` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-17 … AÝ` Mmby n[agån{Îm`m§ H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 17 : OTHER CURRENT ASSETS Figures as on Figures as on 31-03-2018 31-03-2017 nyd©XÎm ì``/Prepaid Expenses 7.70 6.09 gmd{Y O_m na A{O©V ã`mO Interest Accrued on Term Deposits 28.97 31.15 AÝ` O_mAm| na A{O©V ã`mO Interest Accrued on Other Deposits - - `moJ/Total 36.67 37.24 ì`mnm[aH$ àm{á`m|, ì`mnm[aH$ Xo`VmAm|, G$U Ed§ A{J«_ Z_H$ {d^mJ Ed§ AÝ` gaH$mar {d^mJm| Ho$ eof nwpîQ> Ed§ {_bmZ Ho$ AYrZ h¡& The balance of Trade Receivable, Trade Payable, Loans and Advances, Salt Department and Other Government Departments are subject to confirmation and reconciliation if any.

CËnmXm| H$s {~H«$s (XoI| {Q>ßnUr g§. 18.1) Sale of Products (Refer Note No. 18.1) 2707.91 2,533.26 KQ>mB`o…/Less: CËnmX ewëH$/Excise Duty 102.18 62.72 AÝV© H$ånZr {~H«$s/Inter Company Sale 3.05 19.77 `moJ/Total 2602.68 2,450.77

(` bmI _|) (` In Lakh) df© 2017-18 df© 2016-17 {Q>ßnUr-18.1 … CËnmXm| H$s {~H«$s Ho$ {bE Ho$ {bE NOTE - 18.1 : SALE OF PRODUCTS For the year For the year 2017-18 2016-17 gm_mÝ` Z_H$/Common Salt ñdXoer/Indigenous 1748.76 1,661.09 E_OrgrEb/MGCL 124.50 57.44 g§gm{YV Z_H$/Processed Salt ñdXoer/Indigenous 274.81 303.15 ~«mo_rZ/Bromine 454.57 443.68 ~«mo_rZ AbJ {H$`m hþAm {~Q>Z©/De-Brominated Bittern 3.09 5.18 {Oßg_/Gypsum - `moJ/Total 2605.73 2,470.54

gmd{Y O_m na ã`mO/Interest Received on FDR 52.47 72.12

AÝ` go àmá ã`mO/Interest Received on Others 29.83 1.79 Am`H$a {d^mJ go àmá ã`mO Interest Received from Income Tax Deptt. 0.28 0.25 ghm`H$ H$ånZr (ny§OrH¥$V) go àmá ì`mO Interest Received from Subsidiary Co. (Capitalised) - - AÝ` Ag§MmbZ Am` (ewÕ)/Other Non-Operation Income (Net)

{d{dY àm{á`m§/Misc. Receipts 27.33 128.26

^y AZwkm ewëH$/Land Licence Fees 0.53 0.80 {d{dY CYma ImVo An{b{IV {H$E Sundry Cr. Balance Written Off 35.06 7.70 {dÚwV d epŠV (nmda) go dgybr >Recovery on Account of Electricity and Power 32.16 11.73 T>o[a`m| Ho$ ApÝV_ {ZñVmaU H$s N>rOV An{b{IV Wastages on Final Clearance of heaps Written Back 47.43 56.24 Omar _mb/aX²Xr H$s {~H«$s VWm g§n{Îm na bm^ Sale of Scraps/Released material and profit on assets 4.31 43.83 `moJ/Total 229.40 322.72

(i) ghm`H$ _| … {d{dY àm{ßV`m§ _| ` 4.47 bmI H$s emñVr Ed§ A_mZV O_m H$s OãVr Ho$ d$ ` eyÝ` bmI aX²Xr gån{Îm`m| Am¡a Omar _mb H$s {~H«$s Ho$ em{_b h¡& (JV df© H«$_e… ` 4.36 bmI Ed§ ` 7.09 bmI) In Subsidiary : Other income/adjustment includes ` 4.47 lakh on account of penalty & forfeiture of Security Deposit and ` NIL lakh on account of sale of scrap, assets and released material (Previous years ` 4.36 lakh and ` 7.09 lakh). (ii) ghm`H$ _| … {d{dY àm{á`m| (ñWmB© gån{Îm`m| H$m {dH«$`, hñVm§VaU, g_m`moOZ Am{YŠ`, AZwn`moJr Ed§ S>¡S> ñQ>m°H$, gm_J«r Am{X gpå_{bV h¡&) In Subsidiary : Misc. Receipts (Includes Sales, Transfer and Adjustment of Fixed assets, Surplus, Unserviceable and Dead Stock articles etc.)

{Z_m©U ì``/Manufacturing Expenses Z_H$ Ho$ CËnmXZ d CËIZZ Ho$ ì`` Manufacture & Excavation Expenses of Salt 593.38 548.96 ~«mo_rZ H$m CËnmXZ/Manufacture of Bromine 356.11 305.13 Am`moS>mBOoeZ g{hV g§gm{YV Z_H$ H$m CËnmXZ Manufacture of Processed Salt including iodisation 28.25 34.63 emo{YV Z_H$ H$m CËnmXZ (OrEgAma) Manufacture of Refined Salt (GSR) 93.14 85.59 j{Vny{V© Ed§ ^y{_ amOñd Compensation & Land Revenue 0.16 - E_OrgrEb H$m CËnmXZ Manufacture of MGCL 87.20 57.99 _erZm| H$s _aå_V/Repair to Machinery 33.04 35.65

A{VH«$_U hQ>mZm/Removal of Encroachments - -

nQ²>Q>m {H$am`m (brO aoÝQ>)/Lease Rent 5.50 5.50

{dÚwV d epŠV (nmda) ì``/Electricity & Power Charges 230.04 249.39 bmoH$mo Ed§ S>rOb B§OZ H$m aIaImd d g§MmbZ Running & Mtc of Loco and Diesel Shunter 33.79 40.13 `moJ/Total 1460.61 1,362.97

150 (` bmI _|) (` In Lakh) df© 2017-18 df© 2016-17 {Q>ßnUr-21 … V¡`ma _mb d H$m`© àJ{V Ho$ Xm¡amZ _mb _| ~Xbmd Ho$ {bE Ho$ {bE NOTE - 21 : CHANGES IN INVENTORY OF For the year For the year FINISHED GOODS & W.I.P. 2017-18 2016-17

àmapå^H$ ñQ>m°H$/Opening Stock Z_H$/Salt gm_mÝ` Z_H$/Common Salt 641.95 453.29 g§gm{YV Z_H$/Processed Salt 71.37 78.51 Cn-CËnmX/Bye-Products 0.28 0.37 ~«mo_rZ/Bromine 10.98 25.87 MGCL/E_.Or.gr.Eb 11.76 - H$m`© àJ{V _|/Work-in-Progress 248.93 265.57 `moJ /Total 985.27 823.61 ApÝV_ ñQ>m°H$/Closing Stock Z_H$/Salt gm_mÝ` Z_H$/Common Salt 601.85 641.95 g§gm{YV Z_H$/Processed Salt 34.32 71.37 E_OrEgEb Ed§ Cn-CËnmX/MGCL & By Products 0.28 12.04 MGCL/E_.Or.gr.Eb 10.23 - ~«mo_rZ/Bromine 32.21 10.98 H$m`© àJ{V _|/Work in Progress 450.68 248.93 `moJ /Total 1129.57 985.27 Hw$b `moJ /Grand Total (144.30) (161.66)

doVZ, ^ËVo d AÝ` bm^/Salaries, Allowances & Other Benefits

doVZ d ^ËVo/Salaries & Allowances 753.72 620.19 _¥Ë`w `m godm{Zd¥{V CnXmZ/Death Cum Retirement Gratuity 44.51 68.19 {Z`moOH$ H$m A§eXmZ (nrE\$ d S>rEbAmB©) Employer's Contribution (PF & DLI) 127.48 124.13 g_yh CnXmZ ~r_m àr{_`_/Group Gratuity Insurance Premium 48.46 57.74 ~moZg/Bonus 20.80 55.00 H$_©Mmar H$ë`mU ì``/Staff Welfare Expenses 12.19 10.39 H$m`©H$Vm© _wAmdOm/Workman Compensation 0.81 - AÝ` ì``/Other Expenses 0.37 1.17

`moJ/Total 1008.34 936.81

(` bmI _|) (` In Lakh) df© 2017-18 df© 2016-17 {Q>ßnUr-23 … {dËVr` cmJV Ho$ {bE Ho$ {bE NOTE - 23 : FINANCE COSTS For the year For the year 2017-18 2016-17 ^maV gaH$ma H$mo ã`mO Interest To Government of India 350.35 382.92 ~¢H$ H$mo ã`mO/Interest To Bank 26.90 18.18 AÝ`$ H$mo ã`mO/Interest To Others 0.02 0.03 `moJ/Total 377.27 401.13

152 (` bmI _|) (` In Lakh) df© 2017-18 df© 2016-17 {Q>ßnUr-24 … AÝ` ì`` Ho$ {bE Ho$ {bE NOTE - 24 : OTHER EXPENSES For the year For the year 2017-18 2016-17 àemg{ZH$ ì`` (XoI| {Q>ßnUr g§. 24.1) Administrative Expenses (Refer Note No. 24.1) 265.92 267.21 ZJar` ì`` d AÝ` gm_m{OH$ D$nar ì`` (XoI| {Q>ßnUr g§. 24.2) Township Expenses and Other Social Overheads (Refer Note No. 24.2) 83.32 92.03 {dH«$` d {dVaU ì`` (XoI| {Q>ßnUr g§. 24.3) Selling & Distribution Expenses (Refer Note No. 24.3) 115.68 163.77 am{e`m§/^ÊS>ma An{b{IV (ewÕ) Amounts/Stores Written Off (Net) 2.48 16.00 N>rOV Ed§ àmdYmZ (XoI| {Q>ßnUr 24.4) Provision & Wastage (Refer Note No. 24.4) 52.86 68.45 ñWmB© n[agån{Îm`m| H$m {dH«$` Sale of Fixed Assets - 0.07 Sy>~V Ed§ g§Xp½Y G$U Ed§ A{J«_ Ho$ {bE àmdYmZ Provision for Bad & Doubtful Debts and Advances 1.30 4.43 n[agån[Îm/ny§OrJV H$m`© An{b{IV Assests/capital Works written off - - XÊS>/Ow_m©Zm-hOm©Zm g{hV Penalties/Fine Including demurrage - -

AZwg§YmZ Ed§ {dH$mg/Research & Development 10.39 8.83

`moJ/Total 531.95 620.79

`mÌm Ed§ dmhZ ì``/Travelling & Conveyance Expenses 16.49 23.58 S>mH$ Vma Ed§ Q>obr\$moZ/Postage Telegram & Telephones 9.72 10.45 {H$am`m IM©/Rent Expenses 4.05 5.01 Xa Ed§ H$a/Rates & Taxes 2.05 4.58 ~r_m à^ma/Insurance Charges 4.73 4.16 boIm narjH$m| H$mo ^wJVmZ/Payment to Auditor boIm narjm ewëH$ Ho$ ê$n _|/As Audit Fee 1.89 1.67 H$a boIm narjm ewëH$ Ho$ ê$n _|/As Tax audit fee 0.72 0.58 `mÌm/X¡{ZH$ ^ËVm ì`` Ho$ ê$n _|/As TA/DA Expenses 1.36 0.95 AÝ` j_Vm Ho$ ê$n _|/As Other Capacity 0.24 0.47 AmÝV[aH$ boIm narjH$ H$mo nm[al{_H$ Internal Auditor Remuneration boIm narjm ewëH$ Ho$ ê$n _|/As Audit Fee 0.47 0.46 `mÌm/X¡{ZH$ ^ËVo Ho$ ê$n _|/As TA/DA Expenses 0.49 0.22 Ý`mg boIm narjH$ ewëH$/Trust Audit Fees - - A{V{WJ¥h ì``/Guest House Expenses 1.94 4.68 {ZXoeH$m| H$mo `mÌm ^ËVm/T.A. to Directors 4.07 5.04 H$m`m©b` ì``/Office Expenses 48.56 42.72 dmhZm| H$m MmbZ Ed§ AZwajU ì``/Running & Mtc. of Vehicle 18.55 22.02 ^dZm| H$r _aå_V Ed§ aIaImd Repair & Maintenance of Buildings 8.34 2.26 g§`§Ì Ed§ _erZar H$s _aå_V Ed§ aIaImd Repair & Maintenance of Plant & Machinery 51.38 59.01 aob nW H$m aIaImd/Maintenance of P. Way 39.73 26.46 AÝ` _aå_V/Other Repairs 51.14 52.89 `moJ/Total 265.92 267.21

154 (` bmI _|) (` In Lakh) df© 2017-18 df© 2016-17 {Q>ßnUr-24.2 … ZJar` ì`` d AÝ` gm_m{OH$ D$nar ì`` Ho$ {bE Ho$ {bE NOTE - 24.2 : TOWNSHIP EXP AND OTHER SOCIAL For the year For the year OVERHEADS 2017-18 2016-17

ZJar` ì``/Township Expenses ^dZ/g‹S>H$m| H$m AZwajU/Maintenance of Building/Roads 14.18 10.98 nwñVH$mb` H$m AZwajU/Maintenance of Library - - g\$mB©/Sanitation 17.57 18.63 Ob Amny{V©/Water Supply 15.49 13.37 {dÚwV AZwajU/Mtc. Of Electricity 10.00 11.53 ömg/Depreciation 2.58 4.08 `moJ (E)/Total (A) 59.82 58.59 KQ>mB`o… àm{á`m§/Less : Receipts J¥h {H$am`m/House Rent 13.07 8.83 ^y {H$am`m/Ground Rent 2.16 0.61 {dÚwV/Electricity - - Ob Amny{V©/Water Supply 0.52 0.58 `moJ (~r)/Total (B) 15.75 10.02 AÝ` gm_m{OH$ D$nar ì`` Other Social Overheads AñnVmb ñQ>m°\$ Ho$ doVZ d ^ËVo Salaries & Allowance of Hospital Staff 29.82 30.65 {M{H$Ëgm ì`` d XdmB`m| H$s bmJV {M{H$ËgH$s` AmH$pñ_H$Vm Ho$ IMm] H$s à{Vny{V© Reim. Of Medical Exp. And Cost of Medicines & Medical contingencies 10.58 10.94 ömg/Depreciation 0.15 0.17 npãbH$ ñHy$b, AñnVmb, gm§ñH¥${VH$ J{V{d{Y`m§ Am¡a _mVm Ho$ _pÝXa Ho$ {bE XmZ Donation to the Public School, Hospital, Cultural Activity and Repair to Mata Temple - 0.06 AÝ`/Others 3.63 3.02 KQ>mB`o… AñnVmb àm{á`m§ Less : Hospital Receipts (4.93) (1.38) 39.25 43.46 `moJ (E-~r+gr)/Total (A-B+C) 83.32 92.03

155 (` bmI _|) (` In Lakh) df© 2017-18 df© 2016-17 {Q>ßnUr-24.3 … {dH«$` Ed§ {dVaU ì`` Ho$ {bE Ho$ {bE NOTE - 24.3 : SELLING & DISTRIBUTION EXPENSES For the year For the year 2017-18 2016-17 n¡qH$J Ed§ AJ«ofU à^ma Packing & Forwarding/Dispatch Charges 64.70 111.45 CnH$a à^ma/Cess Charges - 1.14 {dkmnZ d àMma/Advertisement & Publicity 6.12 7.72 àofU gmB{S>§J H$m AZwajU/Maintenance of Dispatch Siding - - Ny>>Q> d H$_reZ/Discount & Commission 44.85 42.25 ì`dgm` g§dY©Z ì``/Business Promotion Expenses - - {Z`m©V g§dY©Z ì``/Export Promotion Expenses - 0.39 AÝ` ì``/Other Expenses 0.01 0.55 _wâV Z_wZm/Free Sample - 0.27 `moJ/TOTAL 115.68 163.77

Z_H$ Ho$ ñQ>m°H$ Ho$ N>rOV Ho$ {bE/For Wastages on Stock of Salt Ano{jV Z_H$ ñQ>m°H$ na gm_mÝ` àmdYmZ Normal Provision on Salt Stock Required 67.75 48.83 Omo{‹S>E… T>o[a`m| Ho$ {ZñVmaU na V` H$s JB© N>rOV Add: Wastages determined on clearance of heaps 28.12 56.23 Omo{‹S>E… T>o[a`m| Ho$ A§{V_ {ZñVmaU na nm`m J`m A{YH$ àmdYmZ Add: Excess Provision found on final clearance of heap - - 95.87 105.06 KQ>mB`o… àmapå^H$ eof/Less : Opening Balance 43.01 36.61 52.86 68.45 Sy>~V Ed§ g§{X½Y G$U Ho$ {bE àmdYmZ Provision for Bad & Doubtful Debts - - AÝ` XÊS>/j{V/Other Penalty/Damages - - `moJ/TOTAL 52.86 68.45 ghm`H$ _| … df© Ho$ Xm¡amZ ghm`H$ H$ånZr _| ` 28.11 bmI Ho$ _yë` H$m 2781.881 _¡.Q>Z nmB© JB© H$s N>rOV H$mo Om§M Ho$ AYrZ/gj_ àm{YH$mar Ho$ AZw_moXZ na g_m`mo{OV {H$`m J`m&/ In Subsidiary : Wastages of 2781.881 MT salt valuing ` 28.11 lakh found during the year has been adjusted subject to investigation/approval of Appropriate Authority.

156 (` bmI _|) (` In Lakh)

{Q>ßnUr-25 … nydm©d{Y Am`/(ì``)/g_m`moOZ df© 2017-18 Ho$ {bE df© 2016-17 Ho$ {bE For the year 2017-18 For the year 2016-17 NOTE - 25 : PRIOR PERIOD INCOME/ (EXPENSES)/ADJUSTMENTS `moJ/TOTAL `moJ/TOTAL àm{á`m± ì`` àm{á`m± ì`` RECEIPTS EXPENSES RECEIPTS EXPENSES {Z_m©U Ed§ CËIZZ à^ma Manufacture & excavation charges 2.28 4.33 0.69 0.86 doVZ ^ËVo Ed§ AÝ` n[abm^ Salaries, Allowance & Other Benefits 22.62 - 0.55 1.15 àemg{ZH$ ì``/Administrative Expenses 0.83 0.72 0.48 0.46 T>o[a`m| Ho$ A§{V_ {ZñVmaU na A{YH$ àmdYmZ nwZ… An{b{IV Excess provision written back on Final Clearance of heap - - - - A{YH$ àmdYmZ H$m à{VboIZ Excess provision written back - - - - ZJar` Ed§ AÝ` gm_m{OH$ D$nar ì`` Township & other Social Overheads 0.03 0.09 - - {dH«$` Ed§ {dVaU ì``/Selling & Distribution Exp. - 2.43 - 5.63 boIm narjH$m| H$mo ^wJVmZ/Payment to Auditors - - - - AÝ` ì`` / g_m`moOZ Other Expenses/Adjustments 0.03 0.35 - - (Z_H$ _| H$_r Ho$ {bE g{hV) (Including for deficit of salt) Am`H$a/_¡Q> Ho$ {bE àmdYmZ Provision for MAT/Income Tax - - - - JV df© hmg H$_ MmO© {H$`m Depreciation less charged in Prev year - - - - {d{dY Am`/g_m`moOZ/Misc. Income/Adjustment 4.12 - - - {~H«$s/Sales - - - - Q>rS>rAma na ã`mO/Interest on TDR 0.08 - 0.01 - ndy © H$o dfm ] _ | gaH$mar G$U na à^m[aV A{YH$ ã`mO nZw … An{b{IV Excess Interest Charge on Govt. Loan in earlier years written back 693.12 - - - ewÕ Am`/ì`` NET INCOME/EXPENDITURE 723.11 7.92 1.73 8.10 KQ>mB`o … gm°^a gmëQ>²g {b{_Q>oS> H$mo g§`wŠV _w»`mb` ì`` H$m A{^^m{OV A§e Less : Share of Common HO Expenses as apportioned to Sambhar Salts Limited - - - - 723.11 7.92 1.73 8.10 ewÕ àm{á`m§/(IMo©) NET RECEIPTS/(EXPENSES) - 715.19 - (6.37) 157 df© 2017-18 df© 2016-17 {Q>ßnUr-26 … à{V A§e AO©Z _yë` Ho$ {bE Ho$ {bE NOTE - 26 : EARNING PRICE PER SHARE For the year For the year 2017-18 2016-17 bm^ (+)/hm{Z (-) bm^ Ed§ hm{Z {ddaU Ho$ AZwgma A§e Ho$ ê$n _| BñVo_mb {H$E JE

Profit (+)/Loss (-) as per statement of Profit and Loss 28.68 (472.79) usual as the Numerator g_Vm A§em| H$s ^m[aV Am¡gV g§»`m Weighted Average Number Share as denominator A§emo§ H$s _yb g§»`m Basic Number of Shares 4,45,528 420,596 VZwH¥$V A§em| H$s g§»`m Diluted Number of Shares 4,45,528 420,596 à{V g_Vm A§e Am` Face value as per Equity Share 1000 1000 à{V g_Vm A§e AO©Z

Earnings per equity share: _yb B©nrEg (` _|) Basic EPS (in `) 6.44 (112.41) VZwH¥$V> B©nrEg (` _|) Diluted EPS (in `) 6.44 (112.41)

158 {Q>ßnUr-27 … gå~pÝYV njH$mam| H$m àH$Q>rH$aU NOTE - 27 : RELATED PARTY DISCLOSURES BÝñQ>rQ²>`yQ> Am°\$ MmQ>©S>© EH$mCÝQ>oÝQ>²g Am°\$ BpÊS>`m Ûmam Omar Ho$ boIm _mZH$-18 ""g§~§{YV njH$mam| H$m àH$Q>rH$aU'' H$s AZwnmbZm Ho$ AYrZ Ano{jV àH$Q>rH$aU {ZåZmZwgma H$s JB© h¡…- Disclosure in compliance of Accounting Standard-18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India are given as under:- _w»` à~§YZ ì`pŠV/Key Management Personnel lr Eg.nr. ~§gb, AÜ`j Ed§ à~ÝY {ZXoeH$ Shri S.P. Bansal, CMD gw_moZm _Oy_Xma, H$ånZr g{dV Ms. Sumona Majumdar, Company Secretary ghm`H$ H$ånZr/Subsidiary company (` bmI _|) gm§â gmëQ²>g {b{_Q>oS>/Sambhar Salts Limited (` In Lakh) ì`dhmam| H$m _w»` à~ÝYZ gm§â gmëQ²>g {b{_Q>oS> ApÝV_ {ddaU ì`[ŠV (ghm`H$ H$ånZr) eof Key Management Sambhar Salts Ltd. Details of Personnel Closing Transactions (Subsidiary Company) Balance 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 nm[al{_H$ Remuneration 16.43 16.15 - - - - AÝ` n[abm^ Other Benefits 7.34 7.72 - - - - _mb H$s IarX Purchase of Goods - - 3.05 19.77 - - n[agån{Îm`m|/^ÊS>ma H$m hñVm§VaU Transfer of Assets/store - - 4.87 - - - G$U {X`m J`m/Loan Given - - 0.00 500.00 2,833.50 2,833.50 G$U na ã`mO/Interest on Loan - - 609.45 728.60 3466.74 3263.09 A{V{W J¥h H$m àmá A§e Share of Guest House Exp Received ------g§`wŠV _w»` gVH©$Vm A{YH$mar Ho$ doVZ Ed§ ^Îmm| H$m A§e Share of Salary and Allowance of Common CVO ------gm§â gmëQ>²g {b. H$mo _w»`mb` ì`` H$m A{^^m{OV A§e (ewÕ) Share of Corporate Office Expenses apportioned to Sambhar Salts Ltd. (Net) - - 228.40 212.79 - - A{V[aº$ ã`mO go àmá H$aZo `mo½` ghm`H$ H§$nZr Ho$ {bE nhbo gmb dmng {bIm Wm Excess interest receivable from Subsidiary company for earlier year written back - - 405.81 - - - gm§â gmëQ²>g {b. H$mo nydm©d{Y _w»`mb` ì`` H$m A{^^m{OV A§e (ewÕ) Share of Corporate Office Prior Period Expenses apportioned to Sambhar Salts Ltd (Net) - - -3.01 -0.22 - - H$ånZr Ho$ AÜ`j Ed§ à~ÝY {ZXoeH$ H$s ` 2000/- à{V_mh ^wJVmZ {H$E OmZo dmbo S´>mBda Ûmam MbmB© OmZo dmbr H$ma Ho$ à{V~pÝYV Cn`moJ H$s _X H$mo hñVJV n[abm^ _| Zht {b`m J`m h¡& The restrictive use of Company's chauffeur driven Car for the Company's Chairman & Managing Director against payment of ` 2000/- per month has not been considered as a perquisite in his hands. 159 {QßnUr 28:- NOTE 28:- AmH${ñ_H$ Xo`VmE§ Ed§ nw§Or à{V~ÕVmE§ {Og gr_m CONTINGENT LIABILITIES AND VH$ CnbãY Zht H$amE JE& COMMITMENTS TO THE EXTENT NOT PROVIDED FOR

(i) JwOamV {dÚwV _ÊS>b H$m ` 21.13 bmI (ã`mO, (i) Claim of Gujarat Electricity Board for `{X H$moB© hmo, N>mo‹S>H$a) ( JV df© ` 21.13 bmI) ` 21.13 lakhs (excluding interest if any) H$m Xmdm {dMmamYrZ h¡& (Previous year ` 21.13 lakhs) being subjudice.

(ii) C. ny. aobdo H$m am_ZJa _| ^y{_ H$s AÝVa bmBg|g (ii) Claim of N.E. Railway towards ewëH$ ` 28.06 bmI Am¡a ã`mO `{X H$moB© h¡ (JV differential License Fee of Railway df© `21.52 bmI) H$moQ>© Ho$g _| {ZU©` b§{~V hmoVo land at Ramnagar Unit ` 28.06 lakhs hþE& and interest if any (Previous year ` 21.52 lakhs) pending decision of the court case.

(iii) VmbwH$m {dH$mg A{YH$mar, nmQ>S>r (JwOamV) Ûmam (iii) In respect of Agricultural and Non- ` 85.64 bmI (ã`mO `{X H$moB© hmo, Omo‹S>Zm) H¥${f agricultural assessment demand for ` Ed§ J¡a H¥${f H$m {ZYm©aU H$s _m§J H$s h¡& àH$aU 85.64 lakhs (plus interest if any) raised by Taluka Vikas Adhikari, Patri {ddm{XV h¡ Am¡a CgHo$ níMmV² H$ånZr H$mo H$moB© _m§J (Gujarat). The matter is under dispute àmá Zht hþB© h¡& VWm{n, ~mX _o§ ` 5.51 bmI and the Company has not received any (ã`mO `{X H$moB© hmo Omo‹S>Zm h¡) H$s _m§J H$s JB© demand thereafter. However, {OgHo$ {bE H$ånZr Zo _mZZr` JwOamV CÀM subsequently demand for ` 5.51 lakhs Ý`m`mb` go ñWJZ AmXoe nm[aV H$adm`m& A~ (plus interest if any ) was raised for which the stay was obtained from the _mZZr` JwOamV CÀM Ý`m`mb` Zo àH$aU H$m Hon'ble High Court, Gujarat. The {ZñVmaU H$a {X`m Am¡a EH$ CÀMñVar` g{_{V Hon’ble High Court of Gujarat has {Og_| g§~§{YV amÁ` Am¡a Ho$ÝÐ gaH$ma Ho$ à{V{Z{Y since disposed of the case and directed em{_b hm| H$m JR>Z H$aZo H$m {ZX}e {X`m h¡& {ddmX to form a high power Committee A^r ^r CÀMñVar` g{_{V Ho$ nmg bpå~V h¡& A~ consisting of representatives of State & VmbwH$m {dH$mg, A{YH$mar nQ>S>r Zo Xmdo H$mo Central Govt. The dispute is still pending with High Power Committee ` 272.80 bmI (ã`mO g{hV) go g§emo{YV

160 {H$`m h¡ (JV df© ` 272.80 bmI) (ã`mO Now the Taluka Vikas Adhikari, Patri g{hV)& has revised the claim of ` 272.80 lakhs (plus interest) (previous year ` 272.80 lakhs (plus interest).

(iv) AÝ` Xmdo g{ñWV {H$`o J`o naÝVw H$ånZr Zo§ CZH$m (iv) Other claims lodged but not G$U H$o ê$n _| ñdrH$ma Zht {H$`m ` 32.62 bmI acknowledged as debt by the em{_b ã`mO `{X H$moB© (JV df© `45.64 bmI)& Company ` 32.62 lakhs plus interest if any (Previous year ` 45.64 lakhs).

(v) {h_mMb àXoe gaH$ma H$m _ÊS>r BH$mB© _| I{ZO (v) Claim of H.P Government towards Z_H$ H$s am`ëQ>r H$m Xmdm ` 30.29 bmI& (JV Royalty on Rack Salt in Mandi Unit df© ` 41.29 bmI) ` 30.29 lakhs (Previous year ` 41.29 lakhs).

(vi) AÝ` àH$aU {OZ_| H$ånZr H$s AmH${ñ_H$ (vi) Other cases in which the Company is {Oå_oXmar h¡ (am{e {ZYm©[aV `mo½` Zht h¡ {gdm` dhm contingently liable (amounts not Ohm§ Xem©`r J`r h¡&) ascertainable except as and where mentioned).

(vii) joÌr` {Z`§ÌH$ IXmZ, ^maVr` IXmZ ã`yamo Ho$ nj (vii)Liability if any, on account of Bank _| ñQ>oQ> ~¢H$ Am°\$ B§{S>`m O`nwa Ûmam Omar guarantee amounting to ` 11.00 lakhs ` 11.00 bmI (JV df© ` 1.00 bmI) Ho$ ~¢H$ (Previous Year ` 1.00 lakhs) issued by O_mZV Ho$ g§~§Y _| H$moB© ^r Xm{`Ëd `{X hmo& SBI Jaipur in favour of Regional Control of Mines, Indian Bureau of Mines. (viii) ZJa nm{bH$m, gm§^a Ûmam nyd© dfm] _| Mw§Jr _o§ AÝVa H$s am{e ` 26.50 bmI H$mo amOñWmZ CÀM (viii)The Municipal Board, Sambhar Ý`m`mb` Zo§ amoH$ (ñQ>o) H$a aIm h¡& (JV df© ` claimed towards difference of octroi 26.50 bmI) ` 26.50 lakhs in earlier years being stayed by the Rajasthan High Court (Previous Year ` 26.50 lacs).

161 (ix) AÝ` _m_bo Ohm§ H$ånZr H$s AmH${ñ_H$ Xo`Vm h¡ (ix) Other cases in which the Company is am{e Ohm§ H$ht Xem©`r J`r H$mo N>mo‹S>H$a {ZYm©aU contingently liable (amounts not `mo½` Zht& ascertainable except as and where mentioned).

(i) l{_H$/godm/^y{_ d AÝ` _m_bo {OZHo$ ~mao (i) Claims on account of labour/service/ _o§ Ý`m`mb`m| _| {^ÝZ-{^ÝZ ñVam| na dmX land and other matters for the suits b{å~V h¡& pending in Courts at different stages.

(ii) Am¡Úmo{JH$ _h§JmB© ^Îmm Ed§ Ho$ÝÐr` _§hmJmB© (ii) Liability, if any, on account of revision ^Îmm nX²X{V Ho$ AÝVJ©V AmZo dmbo of pay scales of employees covered H$_©Mm[a`m| Ho$ doVZ _mZ Ho$ nwZarjU, `{X under Industrial D.A. Pattern and H$moB© h¡, na Xm{`Ëd& CDA Pattern.

(~r) ny§Or à{V~ÕVm& (B.) Capital Commitments.

(i) ny§OrJV ImVm| H$mo {Zînm{XV H$aZo Ho$ {bE eof (i) Estimate amount an account of AZw~§Y H$m EH$ ImVm AZw_m{ZV H$a| contract remaining to be executed an capital accounts ` 736.65 Lakhs ` 736.65 bmI ({nN>bo df© ` 840.61 (Previous Year ` 840.61 Lakh) bmI)

(ii) Xo`Vm B{¹$Q>r H$m EH$ ImVm EMnr Ho$ gmW (ii) Liability an Account of equity ^mJrXmar _§S>r _| gm°ë`yeZ _¡qZJ gh Participation with H.P. Government H$mpñQ>H$ gmoS>m àmoOoŠQ> Ho$ {bE gaH$ma for Solution Manning Cum Caustic Soda Project at Mandi Amounting to ` 43.55 bmI ({nN>bm df© ` 43.55 ` ` bmI)& 43.55 Lakh (Previous Year 43.55 Lakh.)

162 {Q>ßnUr g§. 29…- NOTE NO. 29:- A{V[aŠV {Q>ßn{U`m§ ADDITIONAL NOTES (i) H$ånZr H$s AnZr ñWmnZm hmoZo na ^maV gaH$ma H$mo (i) In lieu of issue of shares by the Company eo`a Omar H$aZo H$s EdO _| H$ånZr Z| ImamKmo‹S>m Ed§ to the Government of India on its _ÊS>r H$s n[agån{Îm`m§ AnZo A{YH$ma _o §Admá H$a formation, possession of assets at br, Am¡nMm[aH$ g_Pm¡Vm| H$mo A{ÝV_ ê$n {X`m OmZm Kharaghoda and Mandi has been eof h¡& Bg gå~ÝY _| A^r VH$ H$moB© H$ama Zht {H$`m acquired by the Company, pending J`m h¡& finalisation of formal Agreement. No agreement has been made so far in this regard. (ii) {ZH$Q> ^{dî` _| An`m©ßV bm^ H$mo Ü`mZ _| aIVo hþE (ii) No adjustment regarding deferred tax AmñW{JV H$a Ho$ gå~ÝY _| g_m`moOZ Zht {H$`m J`m has been worked out in view of h¡ Ed§ ^{dî` H$s H$a `mo½` n`m©ßV Am` H$s H$moB© insufficient profits in near future and Cn`wŠV {Z{íMVVm ^r Zht h¡& AV… XÿaX{e©Vm Ho$ also there is no reasonable certainty for AmYma na AmñW{JV H$a na n[agån{Îm`m| H$mo _mÝ`Vm sufficient future taxable income. Therefore based on prudence, Deferred Zht Xr JB© h¡& Tax Assets have not been recognized. (iii) g§{MV hm{Z`m| Ed§ JV df© Ho$ AZdemo{fV ömg Ho$ H$maU (iii) No provision for Income-Tax or MAT Am`H$a Ed§ Ý`yZV_ d¡H$pënH$ H$a Ho$ {bE àmdYmZ Zht has been provided due to accumulated {H$`m J`m h¡& losses & unabsorbed depreciation of previous years.

(iv) bm^ Ho$ à{VeV Ho$ ê$n _| à~ÝY {ZXoeH$ g{hV (iv) No commission has been paid or payable {ZXoeH$m| Ho$ H$_reZ H$m H$moB© ^wJVmZ Z Vmo {H$`m J`m h¡ to the Directors including Managing Am¡a Z hr {H$`o OmZo `mo½` h¡& Bg{bE H$ånZr Director by way of percentage of profit. A{Y{Z`_,2013, H$s Ymam 197 Ho$ AZwgma bm^ H$m Hence, commutation of profit provided gmam§erH$aU dm§N>Zr` Zht h¡& in accordance with section 197 of the Companies Act, 2013 is not required.

(v) à~ÝYZ Ho$ _V _| , Mmby n[agån{Îm`m|, G$U Ed§ A{J«_ (v) In the opinion of the management, ì`mnma Ho$ gm_mÝ` AZwH«$_ _| àmßV hmoZo dmbo _yë` na current assets, loans and advances are AmYm[aV h¡ Ed§ Ohm§ X{e©V {H$`m J`m h¡ H$mo N>mo‹S>H$a based on the realizable value in the gånyU© Xm{`Ëdm| Ho$ {bE àmdYmZ H$a {b`m J`m h¡& ordinary course of business and provision for all liability, except as otherwise stated has been provided.

163 (vi) Aën gH$a {hV H$m {ddaU {ZåZ h¡ …- (vi) The details of minority interest are as under

am[e ê$. bmI _| am{e Aëng§»`H$ {hV 2017-18 2016-17 MINORITY INTEREST Amount Amount 2017-18 2016-17 JVdf© Ho$ pñW{V {ddaU Ho$ AZwgma

As Per the last Balance Sheet (1224.80) (880.23) Aëng§»`H$ Ûmam Ym[aV A§em| H$m A§[V_ _yë`

Face Value of Shares held by Minority (in Rs.) 1000 1000 Omo‹S>| / KQ>m`o :- df© Ho$ Xm¡amZ bm^ (hm{Z)

Add/Less :- Profit (Loss) during the year (103.24) (342.14) ny§OrJV ^§S>ma _| A{V[aº$VmAm| H$m Aëng§»`H$ {hñgm

Minority share of Additions in Capital Reserves - - Aëng§»`H$ O_m H$m {hñgm ny§Or AZwXmZ _|

Minority Share of Dep. in Capital Grant (1.77) (2.51) C{dV _yë` H$s XþH$mZ Ho$ bm^ _| Aëng§»`H ^md

Minority Share in Fair Price Shop Profit 0.05 0.08

Hw$b / Total (1329.76) (1224.80)

164 (vii)amOñWmZ gaH$ma AZwXmZ A{Y{Z`_, 1961 Ho$ (vii) Majority of the Immovable Properties àmdYmZm| Ho$ AÝVJ©V dr.Q>r. H¥$îUm_mMmar AdmS>© H$s including lease hold land of subsidiary eVm] Ho$ AZwgma ghm`H$ H$ånZr H$s nQ²>Q>o Ho$ AYrZ was transferred from Govt. of Rajasthan ^y{_ g{hV A{YH$me§ AMb gån{Îm H$mo CÎmam{YH$mar to the Subsidiary Company, in Ho$ ê$n _| amOñWmZ gaH$ma Ûmam H$ånZr H$mo h§ñVmV[aV s u c c e s s i o n , i n t e r m s o f V . T . {H$`m J`m VWm dñVw pñW{V go ^maV gaH$ma H$mo AdJV Krishnamachari's Award under the provisions of Rajasthan Government H$am {X`m J`m& Grants Act, 1961 and the position stands communicated to the Government of India. (viii)ämmaV gaH$ma go àmá G$U na nyd© Ho$ dfm©o _| A{YH$ ã`mO (viii) During the year the adjustment of bJm`m H$s am{e ê$n`o 693.12 bmI H$m Omo {H$ ^mar Interest Charged excess on Loan from CÚmoJ {d^mJ Ûmam gy{MV Ed§ nwpîQ> Ho$ AmYma na df© Ho$ Govt of India in earlier of Rs. 693.12 Lakh XmoamZ gm_m`moOZ {X`m J`m h¡& Amoa Cgo Vmoa Z§. 25 has been carried out on the basis of nydm©d{Y ì``/g_m`moOZ ewÕ _| Xem©`m J`m h¡& reconciliation and Informed by Department of Heavy Industry and Shown in note no - 25 Prior Period adjustments. (ix) boIm _mZH$-28 Ho$ AZwgma dm§{N>V hm{Z _| H$_r Ho$ (ix) Provision for impairment of loss as àmdYmZ Ho$ g§~§Y _| H$ånZr à~ÝYZ Ho$ _VmZwgma required under Accounting Standard-28 n[agånpËV`m| _| H$_r Amdí`H$ Zht h¡& boIm _mZH$ on impairment of Assets is not necessary 28 Ho$ AZwgma H$ånZr H$s n[agån{Îm`m| _| H$_r Zht as in the opinion of management there is hþB© h¡& no impairment of the Company's Assets in term of AS-28.

(x) H$ånZr Ho$ ñdm{_Ëd H$s ^y{_ H$m {ddaU {ZåZ h¡…- (x) The company is having the land as per àH$mah¡…- h¡…- detail below :

165 (` bmI _|)/(` In Lakh) O`nwa/JAIPUR ImamKmo‹S>m/KHARAGHODA _ÊS>r/MANDI am_ZJa/RAMNAGAR _yë` _yë` _yë` _yë` joÌ/AREA VALUE joÌ/AREA VALUE joÌ/AREA VALUE joÌ/AREA VALUE 1. nyU© ñdm{_Ëd dmbr ^y{_ - - 23596 EH$S> 24.54 7 0 2 . 7 5 d J © _rQ>a 37.92 - - Free Hold Land Acres /Sq. Mtr. 2. nQ²>Q>o na ^y{_ 2048 dJ© _rQ>a/ 5.53 - - 133.116 EH$‹S> - 4712.61 dJ© _rQ>a/ - Leased Hold Land Sq. Mtr. /Acres Sq. Mtr. (bmBg|g \$sg na)(On licence Fee) ImamKmo‹S>m BH$mB© (JwOamV) Ho$ aU joÌ, _ÊS>r ({h_mMb Further there is no encroachment in Run àXeo ) Ed §am_ZJa (CÎmamIÊS>) _ |H$mBo ©A{VH$«_U Zht h&¡ area in Kharaghoda unit (Gujarat), Mandi (H.P.) and Ram Nagar (Uttarakhand) _¡gg© àmoQ>moH$mob d¡ë`yAa àm.{b. g§n{Îm _yë`m§H$H$ Ûmam The value of land assessed by M/s 31.03.2014 H$mo ^y{_ H$m _yë`m§H$Z {ZåZ àH$ma Protocol Valuer Pvt. Ltd Assets Valuers {H$`m J`m& as on 31.03.2014 are as under:- 1. ImamKmo‹S>m `172900 bmI 1. Kharaghoda ` 172900 lakh 2. O`nwa ` 369 bmI 2. Jaipur ` 369 lakh 3. _ÊS>r ` 1110 bmI 3. Mandi ` 1110 lakh 4. am_ZJa _yë`m§H$Z Zht {H$`m J`m& 4. Ramnagar Not Assessed ghm`H$ H$ånZr gm§â gmëQ>²g {b{_Q>oS> Ho$ Ûmam Inspite of action for eviction of AZm{YH¥$V A{VH«$_U H$mo hQ>mZo Ho$ {bE {H$E A{^`mZ unauthorized encroachment taken by the subsidiary company i.e. SSL the encroach Ho$ ~mdOyX A{VH«${_V ^y{_ Omo {H$ 424.80 EH$S> h¡, land i.e. 424.80 acres is still under A^r ^r A{VH«$_U Ho$ AYrZ h¡& A{VH«${_V ^y{_ Ho$ encroachment. The value of encroach land _yë` H$s JUZm Zht H$s Om gH$Vr& Š`m|{H$ O_rZ cannot be ascertain as the land has been amOñWmZ gaH$ma Ûmam 99 df© Ho$ {bE nQ²>Q>o na ~r.Q>r. given by Govt of Rajasthan on lease basis H¥$îUm_mMmar AdmS>© {XZm§{H$V 29.4.1961 Ho$ AmYma for 99 years. As per V.T.Krishnaachari na Xr J`r& H$ånZr Zo A^r VH$ amOñWmZ gaH$ma Ho$ award dated 29.04.1961. Company has not executed the lease deed with the Govt. of gmW brO S>rS> {Zînm{XV Zht H$s h¡& ^y{_ H$m {dVaU Rajasthan so far. The details of land are as {ZåZ àH$ma h¡& under:- A. nQ²>Q>o na (brO ^y{_) 57600 EH$‹S> (90 dJ© A Lease Land 57600 Acres (90 _rb) SQ. Miles) ~. amOñWmZ gaH$ma Ho$ gmW B Disputed with Govt. of 2648 Acres {ddm{XV 2648 EH$‹S> Rajasthan g. A{VH«$_UmYrZ joÌ 424.80 EH$‹S> C Encroached Area 424.80 Acres X. nyU© ñdm{_Ëd dmbr ^y{_ 660.35 EH$‹S> D Free Hold Land 660.35 Acres `. {ddm{XV joÌ 58.24 EH$‹S> E Disputed Area 58.24 Acres a. amdU Q>r~m, gm§âboH$ 16.41 EH$‹S> (Ý`m`mb` _| F Rawan Tiba, 16.41 Acres (Case _m_bm b§{~V) Sambhar Lake is pending with Court) b ~¡J eoS> gm§âboH$ 18.12 EH$‹S> (aobdo OmoYnwa G Beg Shed, 18.12 Acres

166 Ho$ gmW _m_bm b§{~V) Sambhar Lake (Case is pending with Court) d em{hXnwa (Jw‹T>m gmëQ>) 23.71 EH$‹S> (Zmdm§ H Sahidpur Gudha 23.71 Acres Ý`m`mb` _| g§emoYZ Ho$ {bE (Pending for b§{~V) correction in- Nawa Court) 58.24 EH$‹S> ^y{_ Omo {H$ AÝ` Ho$ Zm_ go {ddm{XV 58.24 acres of land which is disputed in H§$nZr Ho$ H$ãOo _| h¡& 2648EH$S> ^y{_ _| go 292 EH$S> other name but possession with ^y{_ amOñWmZ gaH$ma Ûmam njH$mam| H$mo Amd§{Q>V H$s company. Out of 2648 Acres of land, 292 Acres of land was allotted to the other hþB© h¡& g§n{Îm _yë`m§H$H$ _¡gg© àmoQ>moH$mob d¡ë`yAa Ûmam parties by Govt. of Rajasthan. The value {XZm§H$ 31.03.2014 H$mo nQ²>Q>o H$s ^y{_ H$m ` of land assessed by M/s Protocol valuer 5170.18 H$amo‹S> Ed§ nyU© ñdm{_Ëd dmbr ^y{_ H$m ` pvt.ltd. Assets valuers as on 31.03.2014 is 230.59 H$amo‹S> _yë`m§H$Z {H$`m J`m& Rs 5170.18 crore in case of lease land and Rs 230.59 Crore in case of free hold land. (xi) {nN>bo df© Ho$ Am§H$‹S>m| H$mo Ohm± VH$ Amdí`H$ g_Pm (xi) Figures for the previous year have been J`m h¡, nwZ… g_y{hV/nwZ H«$_ _| {H$`m J`m h¡ Vm{H$ regrouped/rearranged wherever considered necessary so as to make these CÝh| Mmby df© Ho$ Am§H$‹S>m| go VwbZmË_H$ ~Zm`m Om gHo$& comparable with current year's figures.

(xii) Am§H$‹S>o Xmo Xe_bd ñWmZ Ho$ gmW én`o bmIm| _| (xii) Figures are rounded off to lakhs of gm_rß` h¡& rupees with two decimal place

167 ghm`H$ H$ånZr gm§^a gmëQ²>g {b{_Q>oS> go gå~§{YV H$ånZr (boIm) {Z`_ 2014 H$s Ymam 129 (3) gn{R>V {Z`_ 5 Ho$ AÝVJ©V {ddaU Statement Pursuant to Section 129 (3) With Rule 5 of Companies (Accounts) Rules 2014 Relating to the Subsidiary Company Sambhar Salts Limited ghm`H$ H$ånZr Ho$ {bE à{VdoXZ Ad{Y 1 Aàob, 2017 go 31 _mM© 2018 Reporting Period for the subsidiary company 1st April 2017 to 31st March 2018 à{Vdo{XV _wÐm ^maVr` én`o (`) Reporting Currency Indian Rupees (`) A§e ny§Or A{YH¥$V ` 200 bmI Share Capital Authorised ` 200 Lakh àXÎm ` 100 bmI Paid up ` 100 Lakh Am{YŠ` Ed§ Ama{jV ` (3424.51) bmI/Lakh Reserve & Surplus Hw$b n[agån{Îm`m± ` 4387.83 bmI/Lakh Total Assets Hw$b Xm{`Ëd ` 4387.83 bmI/Lakh Total Liability {d{Z`moOZ eyÝ` Investments Nil Hw$b {~H«$s ` 1913.01 bmI/Lakh Turnover H$a go nyd© bm^ ` (258.11) bmI/Lakh Profit Before Taxation H$a Ho$ {bE àmdYmZ eyÝ` Provision for Taxation Nil H$a Ho$ ~mX àmdYmZ ` (258.11) bmI/Lakh Profit After Taxation àñVm{dV bm^m§e eyÝ` Proposed Dividend Nil A§e Ym[aV H$m à{VeV 60% % of share holding {Q>ßnUr …- 1. ghm`H$ H$ån{Z`m| H$o Zm_, {OÝh| A^r VH$ g§MmbZ àmaå^ H$aZm h¡& eyÝ` Note:- Name of subsidiaries which are yet to commence operation. Nil 2. ghm`H$ H$ån{Z`m| Ho$ Zm_ {OZH$m df© Ho$ Xm¡amZ {dH«$` `m n[ag_mnZ hmo MwH$m h¡& eyÝ` Name of Subsidiaries which have been liquidated or sold during the year. Nil

168 {hÝXþñVmZ gm°ëQ²>g {b{_Q>oS>, O`nwa, Ho$ 31 _mM©, 2018 COMMENTS OF THE COMPTROLLER AND H$mo g_má boIm| na H$ånZr A{Y{Z`_, 2013 H$s Ymam AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(B) OF THE COMPANIES ACT, 143(6)(~r) Ho$ AÝVJ©V ^maV Ho$ {Z`§ÌH$ Ed§ _hmboIm 2013 ON THE FINANCIAL STATEMENTS OF narjH$ H$s {Q>ßn{U`m± HINDUSTAN SALTS LIMITED FOR THEYEAR ENDED 31 MARCH 2018 H$ånZr A{Y{Z`_, 2013 Ho$ VhV {ZYm©[aV {dÎmr` [anmoQ>© The preparation of financial statements of {H$E OmZo dmbo H$m`© T>m±Mo Ho$ AZwgma 31 _mM©, 2018 H$mo Hindustan Salts Limited for the year ended 31 g_má df© Ho$ {bE {hÝXþñVmZ gm°ëQ²>g {b{_Q>oS>, H$s {dÎmr` March, 2018 in accordance with the financial {dda{U`m| H$s V¡`mar H$ånZr Ho$ à~§YH$m| H$s {Oå_oXmar h¡& reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility A{Y{Z`_ H$s Ymam 143 (10) Ho$ AYrZ Cëbo{IV A§Ho$jU of the Management of the Company. The _mZH$m| Ho$ AZwgma ñdV§Ì A§Ho$jU Ho$ AmYma na, A{Y{Z`_ Statutory Auditor appointed by the H$s Ymam 143 Ho$ AYrZ {dËVr` {ddaUm| na gå_{V àñVwV Comptroller and Auditor General of India H$aZo hoVw, A[Y{Z`_ H$s Ymam 139 (5) Ho$ VhV ^maV Ho$ under Section 139(5) of the Act are responsible {Z`§ÌH$ Ed§ _hmboIm narjH$ Ûmam {Z`wŠV d¡Ym{ZH$ A§Ho$jH$ for expressing opinion on the financial {Oå_oXma h¡& CZH$s boIm narjm [anmoQ>© {XZm§H$ statements under Section 143 of the Act based 23.07.2018 _| CZHo$ Ûmam Eogm H$a boZo H$m CëboI {H$`m on independent audit in accordance with the J`m h¡& Standards on Auditing prescribed under Section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 23.07.2018.

_¢Zo ^maV H$o {Z`§ÌH$ Ed§ _hmboIm narjH$ H$s Amoa go I, on behalf of the Comptroller and Auditor A{Y{Z`_ H$s Ymam 143(6)(E) Ho$ VhV 31 _mM©, 2018 General of India, have conducted a H$mo g_má df© Ho$ {bE {hÝXþñVmZ gm°ëQ²>g {b{_Q>oS> Ho$ {dÎmr` supplementary audit of the financial {ddaUm| H$s nyaH$ boIm narjm H$s& `h nyaH$ boIm narjm statements of Hindustan Salts Limited for the ñdV§Ì ê$n go, gm§{d{YH$ boIm narjH$m| Ho$ H$m`© XñVmdoOm| Ho$ year ended 31 March, 2018 under Section {~Zm Am¡a gm§{d{YH$ A§Ho$jH$m| Am¡a H$ånZr H$m{_©H$m| H$s 143(6)(a) of the Act . This supplementary audit has been carried out independently without àma§{^H$ OmZH$mar VH$ gr{_V h¡ Am¡a Hw$N> M`{ZV boIm access to the working papers of the Statutory A{^boIm| H$s Om§M VH$ gr{_V h¡& Auditor and is limited primarily to inquiries of the Statutory Auditor and Company personnel and a selective examination of some of the accounting records. _oar boIm narjm Ho$ AmYma na _oao kmZ _| Eogm Hw$N> _hËdnyU© On the basis of my supplementary audit, Zht Am`m h¡ Omo {H$ g§d¡Ym{ZH$ A§Ho$jH$ H$s [anmoQ>© na nyaH$ nothing significant has come to my knowledge {Q>ßnUr XoZo bm`H$ h¡& which would give rise to any comment upon of supplement to statutory auditor's report under section 143(6)(b) of the Act.

169 ^maV Ho$ {Z`§ÌH$ Ed§ _hmboIm For and on the behalf of the narjH$ Ho$ {bE Ed§ H$s Amoa go Comptroller & Auditor General of India h./- Sd/- (amO Hw$_ma) (Raj Kumar) _hm{ZXoeH$, dm{UÁ` boIm narjm Ed§ Principal Director of Commercial nXoZ gXñ` boIm narjm _ÊS>b-III Audit & Ex-officio Member, Audit Board III, ZB© {Xëbr New Delhi

ñWmZ… ZB© {Xëbr Place: New Delhi {XZm§H$… 27 {gVå~a, 2018 Date: 27 September, 2018

170 ñdV§Ì boIm narjH$m| H$m à{VdoXZ INDEPENDENT AUDITOR'S REPORT

ào{f{V To gXñ`JU, The Members of {hÝXþñVmZ gmëQ²>g {b{_Q>o‹S> Hindustan Salts Limited EH$b {dÎmr` {ddaUm| na à{VdoXZ Report on the standalone financial statements h_Zo {hÝXþñVmZ gm°ëQ²>g {b{_Q>o‹S> H$m gpå_{bV EH$b {dÎmr` We have audited the accompanying {ddaUm| H$m A§Ho$jU {H$`m h¡& {OZ_| 31 _mM©, 2018 H$m standalone financial statements of Hindustan {dÎmr` pñW{V {ddaU VWm V~ g_má df© Ho$ {bE bm^ Ed§ Salts Limited(“the company”) which comprise hm{Z H$m {ddaU, amoH$‹S> àdmh {ddaU Ed§ _hËdnyU© boIm the Balance Sheet as at 31st March, 2018, the Zr{V`m± d AÝ` {ddaUmË_H$ gyMZmE§ gpå_{bV h¢& Statement of Profit and Loss and the cash flow statement for the year then ended, and a summary of the significant accounting policies and other explanatory information. EH$b {dÎmr` {ddaUm| Ho$ {bE à~§YZ H$m Xm{`Ëd Management’s Responsibility for the Standalone Financial Statements {dÎmr` {ddaU H$mo V¡`ma H$aZo Ho$ g§~§Y _| H$ånZr A{Y{Z`_, The Company’s Board of Directors is 2013 (A{Y{Z`_) H$s Ymam 134(5) _| H${WV _m_bm| H$m responsible for the matters stated in section Xm{`Ëd {ZXoeH$ _ÊS>b H$m h¡ Omo H$ånZr A{Y{Z`_ H$s Ymam 134(5) of the Companies Act ,2013 (“the Act”) 133 n{R>V H$ånZr (boIm) {Z`_ 2014 Ho$ {Z`_ 7 Ho$ with respect to the preparation of these AÝVJ©V Xem©Eo& boIm _mZH$m| g{hV, ^maV _| ñdrH$ma {H$E JE standalone financial statements that give a true boIm {Z`_m| Ho$ AZwgma H$ånZr H$s EH$b {dÎmr` pñW{V, and fair view of the financial position, financial {dÎmr` {ZînmXZ Ed§ amoH$‹S> àdmh H$m ghr Ed§ C{MV Ñí` performance and cash flows of the Company àñVwV H$a|& H$ånZr Ho$ gå~pÝYV {ZXoeH$ _ÊS>b H$m Xm{`Ëd in accordance with the Accounting principles h¡ {H$ do A{Y{Z`_ Ho$ àmdYmZm| Ho$ AZwgma n`m©á boIm generally accepted in India, including the XñVmdoOm| H$m aIaImd H$a|, H$ånZr H$s n[agån{Îm`m| H$mo Accounting Standards specified under section gwa{jV aI|, H$nQ> H$mo amoH$Zo d nVm bJmZo Ed§ AÝ` 133 of the Act, read with Rule 7 of the A{Z`{_VVmAm| hoVw Cn`wŠV boIm Zr{V`m| H$m M`Z Ed§ Companies (Accounts) Rules 2014, as CZH$mo bmJy H$aZo hoVw C{MV Ed§ {ddoH$s AZw_mZ H$m {ZU©` applicable. This responsibility also includes H$ao& n`m©á Am§V[aH$ {dÎmr` {Z`§ÌU nÕ{V V¡`ma H$a maintenance of adequate accounting records {H«$`mpÝdV H$a aIaImd H$ao {Oggo boIm XñVmdoOm| H$mo ghr in accordance with provision of the Act for Ed§ nyU© hmoZm gw{ZpíMV H$aZo Ho$ {bE à^mdr VarHo$ go bmJy safeguarding the assets of the company and for {H$`m OmE Ed§ Omo _w»` JbV H$WZ go _wŠV hmo Mmho H$nQ> `m preventing and detecting frauds and other

171 JbVr go hr hmo Omo A§Ho$jH$m| H$o Xm{`Ëd _| BZ {dÎmr` {ddaUm| irregularities; the selection and application of H$mo V¡`ma H$aZo hoVw Cn^moJ {H$E JE Ed§ {dÎmr` {ddaU Omo appropriate accounting policies; making gË` d ñnîQ> Ñí` àH$Q> H$ao, H$mo àñVwV H$ao& judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of the adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. boIm narjH$m| H$m Xm{`Ëd Auditors’ Responsibility h_mam H$Îm©ì` EH$b {dÎmr` {ddaUm| na AnZr am` àH$Q> H$aZm Our responsibility is to express an opinion on h¡& these standalone financial statements based on our audit. h_Zo A{Y{Z`_ Ho$ àmdYmZm| Ed§ Bg_| {Z{hV {Z`_m| Omo We have taken into account the provisions of A§Ho$jU à{VdoXZ _| g§b½Z hmoZm dm§{N>V h¡, _m_bm| Ed§ boIm|, the Act, the accounting and auditing standards boIm _mZH$m| VWm A{Y{Z`_ Ho$ àmdYmZm| H$mo ImVm| _| XO© and matters which are require to be included in {H$`m h¡& the audit report under the provision of the Act and the Rules made there under. A{Y{Z`_ H$s Ymam 143 (10) _| {Z{X©îQ> A§Ho$jU _mZH$m| Ho$ We conducted our audit in accordance with AZwgma h_Zo AnZm A§Ho$jU {H$`m h¡& BZ _mZH$m| _| h_go the Standards on Auditing specified under A§Ho$jU H$m {ZînmXZ Ed§ H$m`©H«$_ {dÎmr` {ddaU go _wŠV hmoZo Section 143(10) of the Act. Those Standards H$m C{MV AmídmgZ {XE OmZo H$s Z¡{VH$ AnojmAm| H$s nmbZm require that we comply with the ethical H$aZm Ano{jV h¡& requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement. A§Ho$jU _| am{e Ed§ {dÎmr` {ddaUm| Ho$ àH$Q>rH$aU Ho$ ~mao _| An audit involves performing procedures to A§Ho$jU gmú` àH$Q> H$aZo H$s {Zînj à{H«$`m gpå_{bV h¡& obtain audit evidence about the amounts and A§Ho$jH$m| Ho$ {ZU©` na EH$b {dÎmr` {ddaUm| _| _hËdnyU© JbV the disclosures in the standalone financial OmZH$mar H$s Omo{I_ Ho$ _yë`m§H$Z g{hV à{H«$`m H$m M`Z statements. The procedures selected depend {H$`m J`m h¡ Mmho BZ Omo{I_m| H$m _yë`m§H$Z H$aZo _| H$nQ> Ed§ on the auditor’s judgment, including the assessment of the risks of material 172 JbVr Ho$ H$maU A§Ho$jU Zo EH$b {dÎmr` {ddaUm| H$s V¡`mar misstatement of the standalone financial Ed§ ghr àñVwVrH$aU Ho$ {bE AmÝV[aH$ {dÎmr` {Z`§ÌU H$mo statements, whether due to fraud or error. In Ü`mZ _| aIm h¡, bo{H$Z `h am` Bg CÔoí` go Zhr h¡ {H$ making those risk assessments, the auditor H$ånZr _| n`m©á Am§V[aH$ {dÎmr` [anmoQ>© na Am§V[aH$ {Z`§ÌU considers the internal financial control H$s nÕ{V h¡, A§Ho$jU _| à~§YZ Ûmam ~ZmE JE boIm AZw_mZm| relevant to the Company’s preparation of the H$s Cn`wŠVVm Ed§ Cn`moJ H$s JB© boIm Zr{V`m| H$s Cn`wŠVm standalone financial statements that give a true Ho$ _yë`m§H$Z Ho$ gmW-gmW EH$b {dÎmr` {ddaUm| H$m gånyU© and fair view in order to design audit àñVwVrH$aU H$m ghr Ed§ C{MV _yë`m§H$Z gpå_{bV h¡& procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the standalone financial statements. h_ {dídmg H$aVo h¢ {H$ h_Zo Omo A§Ho$jU gmú` {bE h¢ do We believe that the audit evidence we have h_mar ñdMm{bV EH$b {dÎmr` {ddaUm| na _`m©{XV A§Ho$jU obtained is sufficient and appropriate to am` XoZo Ho$ {bE Cn`wŠV Ed§ n`m©á AmYma h¡& provide a basis for our qualified audit opinion on the standalone financial statements. _`m©{XV am` H$m AmYma Basis for Qualified Opinion

(i) EH$b {dÎmr` {ddaU H$s${Q>ßnUr g§»`m 16 _| {X`o J`o (i) As details in Note No.16 of standalone AÝ` G$U Ed§ A{J«_ {ddaU Ho$ eof _| ^y{_ AZwkm ewëH$ Financial statement balances carried in other Loans & advances includes Land ` 54.83 bmI 2009 go àmß` `mo½` h¢& Bg ImVo _| H$moB© dgybr Zht h¡ Am¡a `h am{e dgybr `mo½` Zht h¡ Omo Licence fee recoverable ` 54.93 Lakh since {H$ Xo` AmYma na 2009 _| XO© Am`, Omo {H$ [ZOr 2009. There is no recovery in such account njH$mam| H$mo Z_H$ Ho$ CËnmXZ Ho$ {bE Xr J`r ^y{_ H$s and its amount is unrecoverable as income was booked on due basis in 2009 brO am{e h¡& Bg{bE ` 54.93 bmI dgybr `mo½` Zht hmoZo Ho$ H$maU àmdYmZ hmoZm Mm{hE& for the lease money on land allotted to private parties to manufacturing of salt. Hence provision should be made for the

173 unrecoverable amount of ` 54.93 lakh. (ii) O¡gm {H$ bm^ Ed§ hm{Z boIm _| d{U©V {H$`m J`m h¡ df© (ii) As details in Profit & Loss account Ho$ Xm¡amZ ` 15.00 bmI AmñW{JV ì`` An{b{IV includes deferred expenses write off {H$E JE gpå_{bV h¢ Omo {H$ nydm©d{Y _Xm| _| during the year ` 15.00 lakh which should ñWmZmÝV[aV {H$E OmZo Mm{hE& be transferred to Prior Period Items. CnamoŠVmZwgma ewÕ bm^ g§M` Ed§ Am{YŠ` H$s am{e Accordingly Net Profit and Reserve & ` 54.93 bmI go A{YH$ h¡& AÝ` G$U Ed§ A{J«_ ` Surplus have been Overstated by ` 54.93 54.93 bmI A{YH$ h¡& g§{X½Y G$U Ed§ A{J«_ ` Lakh. Other Loans & Advances have been 54.93 bmI go H$_ h¡& overstated by ` 54.93 Lakh. Doubtful Loan & Advances have been understated by ` 54.93 Lakh. _`m©{XV am` Qualified Opinion h_mar gå_{V _| Ed§ {XE JE ñnîQ>rH$aU VWm h_mar gdm}Îm_ In our opinion and to the best of our gyMZm d {dÎmr` {ddaUm| na {Q>ßnUr Ho$ AZwgma CŠV d{U©V information and according to the explanations {ddaU A{Y{Z`_ Ûmam dm§{N>V ar{V go Ano{jV gyMZm XoVo h¢ given to us, except for the effects and possible {gdm` Omo {H$ _`m©{XV am` Ho$ AZwÀN>oX Xem©`o _m_bo H$m effects of the matter described above in the à^md Am¡a g§^m{dV à^md 31 _mM©, 2018 VH$ H$ånZr Ho$ basis for qualified opinion on paragraph, the ì`dhmam| H$s pñW{V Ed§ BgHo$ bm^ Ed§ Bg {XZm§H$ H$mo g_má standalone financial statement give the hmoZo dmbo df© Ho$ {bE BgHo$ amoH$‹S> àdmh H$m ^maV _§o information required by the Act in the manner gm_mÝ`V`m ñdrH¥$V boIm {gÕm§Vm| H$m nwpîQ>H$aU H$aVo hþE so required and give a true and fair view in gË` Ed§ Cn`wŠV Ñí` àñVwV H$aZm h¡& conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018 and its profit and its cash flow for the year ended on that date. _hËd Ho$ _m_bo Emphasis of Matter h_mar am` H$mo `mo½`Vm Ho$ {~Zm Z _mZVo hþE, CnXmZ Without qualifying our opinion, attention is (godm{Zd¥{Îm bm^) Ho$ g§~§Y _| {Q>ßnUr g§»`m 1.7 Ed§ 5 H$s drawn to Note No 1.7 and 5 regarding Gratuity Amoa Ü`mZ {XbmVo hþE, nwñVH$m| _| 31.03.2018 H$mo CnXmZ (Retirement Benefit), which is not in Xm{`Ëd ` 227.73 bmI Xem©`m J`m bo{H$Z boIm _mZH$- conformity of AS-15. The liability of Gratuity 15 Ho$ A§VJ©V dm§{N>V H$moB© {Zdoe Zht {H$`m J`m& as on 31.03.2018 was provided for ` 227.73 Lakhs in the books, but no investment was made as required under AS-15.

174 AÝ` {d{YH$ Ed§ {Z`m_H$ AnojmAm| na à{VdoXZ Report on Other Legal and Regulatory Requirements 1. A{Y{Z`_ H$s Ymam 143(11) H$s eVm] Ho$ AZwgma 1. As required by the Companies (Auditor’s Ho$ÝÐr` gaH$ma Ûmam Omar A{YgyMZm Ûmam `Wm Report) Order, 2016(“the Order”) issued g§emo{YV AmXoe H$s eVm] Ho$ AZwgma gaH$ma Ûmam Omar by the Central Government of India in H$ånZr (boIm narjH$m| H$m à{VdoXZ) AmXoe 2016 terms of Section 143(11) of the Act, we (AmXoe) H$s AnojmZwgma h_ AmXoe Ho$ n¡am 3 d 4 _| give in the Annexure “A” a statement on {d{Z©{XîQ> _m_bm| na AZw~Õ "A'> _| {ddaU n«ñVwV H$a the matters specified in paragraphs 3 and aho h¡& 4 of the Order. 2. A{Y{Z`_ H$s Ymam 143(5) _| Mmho AZwgma ^maV Ho$ 2. As required by section 143(5) of the Act, {Z`§ÌH$ Ed§ _hmboIm narjH$ Ûmam Omar {ZX}em| na consider the direction issued by the {dMma H$aHo$ CZ na H$s JB© H$m`©dmhr Ed§ H$ånZr Ho$ Comptroller and Auditor General of {dÎmr` {ddaUm| na n‹S>Zo dmbo à^md gå~ÝYr {ddaU India, the action taken thereon and its (AZwÀN>oX ~) _| {X`m J`m h¡& impact on the accounts and financial statements of the Company (Annexure “B”). 3. A{Y{Z`_ H$s Ymam 143(3) Ûmam Ano{jV h_ 3. As required by Section 143(3) of the Act, à{VdoXZ H$aVo h¢ {H$ … we report that: A) h_Zo, Ohm± VH$ h_mao kmZ Ed§ {dídmg h¡, h_mar (a) We have sought and obtained all the boIm narjm Ho$ CÔo` Ho$ {bE Amdí`H$ Wr, do information and explanations which to g^r gyMZmE§ Ed§ ñnîQ>rH$aU àmá {H$E h¢& the best of our knowledge and belief were necessary for the purposes of our audit. ~) Ohm± VH$ CZ nwñVH$m| H$s Om§M go àVrV hmoVm h¡, (b) In our opinion, proper books of account as H$ånZr Zo h_mar gå_{V _| {dÎmr` {ddaU H$mo required by law relating to preparation of V¡`ma H$aZo _| g§~§{YV H$mZyZ Ûmam Ano{jV the standalone financial statements have boIm-nwñVH|$ aIr h¢& been kept by the company so far as it appears from our examination of those books. g) {dÎmr` pñW{V {ddaU, bm^ Ed§ hm{Z {ddaU (c) The Balance Sheet, Statement of Profit and VWm amoH$‹S> àdmh {ddaU, {OZH$m CëboI Bg Loss and the Cash Flow Statement dealt à{VdoXZ _| {H$`m J`m h¡, {dÎmr` {ddaUm| Ho$ {bE with by this Report are in agreement with bmB© JB© boIm-nwñVH$m| Ho$ AZwgma h¡& the books of account maintained for the purpose of preparation of these standalone financial statements.

175 X) h_mar gå_{V _|, A{Y{Z`_ H$s Ymam 133 (d) In our opinion, the aforesaid standalone gn{R>V H$ånZr (boIm) {Z`_ 2014 Ho$ {Z`_ Financial Statements comply with the 7 Ho$ AÝVJ©V dm§{N>V boIm _mZH$m|, EH$b Accounting Standards specified under {dÎmr` {ddaU AZwnmbZm H$aVo h¢& Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, as applicable. `) gaH$mar H$ånZr hmoZo Ho$ ZmVo, H$mnm}aoQ> _m_bmV (e) In terms of Notification No. G.S.R. 463(E) _§Ìmb` Ûmam Omar A{YgyMZm g§»`m dated 05.06.2015 issued by the Ministry of Or.Eg.Ama. 463 (B©) {XZm§H$ 05.06.2015 Corporate Affairs, the company being Ho$ AZwgma, {ZXoeH$m| H$s A`mo½`Vm go gå~§{YV Government Company , is exempt from H$ånZr A{Y{Z`_, 2013 H$s Ymam 164(2) provisions of section 164(2) of the Ho$ àmdYmZmo§ go _wŠV h¡& Companies Act, 2013 regarding disqualification of Director. a) {dÎmr` [anm]qQ>J na Am§V[aH$ {dÎmr` {Z`§ÌU H$s (f) With respect to adequacy of the internal n`m©áVm Ho$ g§X^© _| Am¡a Eogo {Z`§ÌU na M{bV financial controls over financial reporting à^md Ho$ g§~§Y _| AbJ go h_mar [anmoQ>© AZw~Õ of the company and operating "g' _| Xr J`r h¡& effectiveness of such controls, refer to our separate report in annexure “C”. b) H$ånZr (A§Ho$jU Ed§ A§Ho$jH$) {Z`_ 2014 Ho$ (g) With respect to the other matters to be {Z`_ 11 Ho$ AZwgma A§Ho$jH$m| Ho$ à{VdoXZ _| included in the Independent Auditor’s AÝ` {df`m| H$mo gpå_{bV H$aZo Ho$ gå~§Y _| Report in accordance with rule 11 of the h_mar gå_{V, h_mar A{YH$V_ gyMZm Ed§ h_| Companies (Audit and Auditors) Rules Xr JB© ì`m»`mAm| Ho$ AZwgma…- 2014, in our opinion and to best of our i n f o r m a t i o n a n d a c c o r d i n g t o explanations given to us: i) H$ånZr Zo 31 _mM©, 2018 H$s {Q>ßnUr g§»`m i) The company has disclosed the impact of 27 (i) (ii) (iii) Ed§ (Viii) _| g§X{^©V AnZo pending litigations on its financial {dÎmr` {ddaU _| AnZr EH$b {dÎmr` pñW{V na position in its standalone financial bpå~V _wH$X_o~mOr Ho$ à^md H$mo àH$Q> {H$`m h¡& statements as referred to in Note No. 27 (i), (ii) ,(iii) & (Viii) of 31 March 2018. ii) H$ånZr Ho$ nmg ì`wËnÞ AZw~§Y, Omo {H$gr ^r ii) The Company did not have any long term {ZH$Q> ZwH$gmZ H$s Amoa bo OmZo g{hV H$moB© ^r contract including derivative contracts XrK©H$mbrZ AZw~§Y Zht h¡& for which there were any material foreseeable losses.

176 iii) H$ånZr na H$moB© ~H$m`m Zht h¡ Omo {ZdoeH$ {ejm iii) The Company does not have any dues Am¡a g§ajU ñWmZmÝV[aV H$aZm Ano{jV hmo& that are required to be transferred to the Investor Education and Protection Fund.

iv) {d{eîQ> ~¢H$ ZmoQ> na àH$Q>rH$aU H$s {Q>ßnUr H$s iv) The reporting on disclosures relating to 31 _mM© 2018 H$mo g_má hþE df© na bmJy Zht Specified bank notes is not applicable to h¢& the company for the year ended march 2018

dmñVo EM.gr. ~moWam EÊS> Egmo{gEQ²>g For H.C. Bothra & Associates MmQ>©S> boImH$ma Chartered Accountants g§ñWm n§Or`Z g§»`m… 008950 gr Firm Registration No: 008950C ({Xbrn M§X AJ«dmb) (Dilip Chand Agarwal) gmPoXma Partner gXñ`Vm g§»`m…- 079983 Membership No: - 079983 ñWmZ … O`nwa Place: JAIPUR {XZm§H$ … 23.07.2018 Date: 23.07.2018

177 ñdV§Ì boIm narjH$m| Ho$ Annexure-'A' To The à{VdoXZ H$m AZw~Õ-"A' Independent Auditor' Report

(AÝ` H$mZyZr Am¡a {d{Z`m_H$ Anojm erf©H$ na h_mar Bgr (Referred to in paragraph 1 under the heading {XZm§H$ H$s [anmoQ>© Ho$ n¡am 1 _| {Z{X©îQ> [anmoQ>©) “Report on Other Legal & Regulatory Requirement’ of our report of even date) {hÝXþñVmZ gmëQ²>g {b{_Q>o‹S> (H$ånZr) Ho$ g§~§Õ _| H§$nZr Report on Companies (Auditor’s report) A{Y{Z`_ 2013 (A{Y{Z`_) H$s Ymam 143 (11) Ho$ Order, 2016 (“the Order”) issued by the Central Government in terms of Section AZwgma ^maV gaH$ma Ûmam H§$n{Z`m| na [anmoQ>© (boIm 143(11) of the Companies Act, 2013 (“the Act”) narjH$m| H$s [anmoQ>©) AmXoe 2016 (AmXoe) of the Hindustan Salts Limited (“the Company”) 1. H$ånZr H$s AMb gån{Îm`m| Ho$ g§~§Y _|… 1. In respect of Company’s Fixed Assets: (A) h_| Xr JB© gyMZm Ed§ ñnîQ>rH$aU Ho$ AZwgma (a) According to the information and H§$nZr Ûmam AMb g§n{Îm`m| H$s pñW{V Ed§ explanation given to us, the _mÌmË_H$ {ddaU g{hV, {gdm` _ÊS>r _| pñWV Company has maintained proper ^y{_ H$m g§nyU© {ddaU Xem©Vo C{MV [aH$m°S>© aIm records showing full particulars including quantitative details and J`m h¡& situation of the fixed assets except land situated at Mandi. (~) h_| {X`o J`o ñnîQ>rH$aU Ho$ AZwgma df© Ho$ Xm¡amZ (b) As explained to us, during the year ^m¡{VH$ gË`mnZ Zht {H$`m J`m h¡ Bg{bE `{X physical verification has not been H$moB© H$_r h¡ Vmo Cg na {Q>ßnUr Zht H$s J`r& conducted by the company. Hence not commented on discrepancies if any. (g) h_| Xr JB© gyMZm Ed§ ñnîQ>rH$aU Ho$ AZwgma Ed§ (c) According to the information and h_mao Ûmam [aH$m°S>m] H$s Om±M H$aZo na {ZåZ explanation given to us and the {ddaUmZwgma H${_`m± nmB© JB© …- records examined by us we found the discrepancy details are as follows:-

i) ImamKmo‹S>m, Jm±d, {Obm gwaoÝÐZJa (JwOamV) _| i) Freehold property at Kharagodha nyU© ñdm{_Ëd dmbr g§n{Îm H$m joÌ\$b 23596 Village, District Surendar Nagar, (Gujarat) Area 23596 Acres 178 EH$‹S> am{e$ ` 24.54 bmI H$ånZr Ûmam Bg amounting ` 24.54 lakh There is no g§~§Y _| _yb XñVmdoO Zht CnbãY H$amE JE original paper provided by the Ho$db N>m`mà{V H$m EH$ goQ> CnbãY H$am`m company only a set of photocopy J`m Omo {H$ nyU©V… n‹T>Zo `mo½` Zht hmoZo Ho$ H$maU provided which was not visible H§$nZr Ho$ ñdm{_Ëd Ho$ hH$ H$mo C{MV à_m{UV properly to verify the title in the Zht H$aVm h¡ Am¡a `h nyU© Zht h¡ VWm CnamoŠV name of the Company, which is not sufficient and the Govt. of Gujarat nyU© ñdm{_Ëd dmbr ^y{_ Ho$ hH$ H$mo JwOamV has disputed the above free hold gaH$ma Ûmam nQ²>Q>o na ^y{_ _mZo OmZo H$m {ddmX title of land as Lease Hold. The h¡& `h {ddmX A^r ^r CƒñVar` g{_{V Ho$ nmg dispute is still pending with High bpå~V h¡, VmbwH$m {dH$mg A{YH$mar , nmQ>‹S>r Zo Power Committee, now the Taluka ^r ` 272.80 bmI (Ed§ ã`mO) H$s am{e H¥${f Vikas Adhikari, Patri has raised a Ed§ J¡a H¥${f {ZYm©aU Ho$ dmñVo Xmdm {H$`m h¡& claim for Rs.272.80 Lakh (plus interest) on account of agricultural and non-agricultural assessment. ii) _mohb, I{b`ma, _ÊS>r _| nyU© ñdm{_Ëd dmbr ii) Freehold property at Mohal g§n{Îm joÌ\$b 702.25 dJ©_rQ>a am{e Khaliyar, Mandi Area 702.25 Sq.Mtr. Value ` 37.92 Lakh ` 37.92 bmI& H$ånZr Zo AnZo Zm_ Ho$ hH$ H$mo à_m{UV H$aZo hoVw H$moB© There is no document provided by the ^r XñVmdoO CnbãY Zht H$amE h¢& company to verify the title in the name of the Company. iii) nQ²>Q>o na g§n{Îm Omo {H$ Or-229, grVmnwam iii) Leasehold Property at G-229, Am¡Úmo{JH$ joÌ, O`nwa joÌ\$b 2048 dJ©_rQ>a Sitapura Industrial Area, Jaipur Area 2048 Sq.Mtr ` 5.53 Lakh am{e ` 5.53 bmI& Ho$db {hÝXþñVmZ gm°ëQ²>g {b{_Q>o‹S> Ho$ Zm_ go {XZm§H$ There is Lease deeds executed in the name 15 _B©, 1996 H$mo {Zînm{XV nQ²>Q>m {dboI 99 df© H$m of Hindustan Salts Limited on 15th May h¡& 1996 for 99 years. iv) _oJb gm°ëQ>dŠg©$, Jwå_m _mBZ, Ð±J _mBZ, iv) Leasehold Property at Maigal Salt {h_mMb àXoe _| pñWV nQ²>Q>o na g§n{Îm H$m Works, Gum Mines, Drang Mines, joÌ\$b 113.116 EH$‹S>& Himachal Pradesh Area 133.116 Acres

H$ånZr Ho$ Zm_ go 31 AJñV 2007 H$mo {Zînm{XV There is only photo copy of Lease deed nQ²>Q>m {dboI H$s N>m`m à{V h¡ Hw$b 113.116 EH$‹S> executed in the name of Hindustan Salts

179 (369 ~rKm) ^y{_ H$mo 31 _mM© 2018 H$r H§$nZr Ho$ Limited on 31st August 2007. Out of the boIm nwñVH$m| _| Xem©B© JB©, _| go Jwå^m _| 74.086 total 133.116 acres (369 bigha ) land shown EH$‹S> ^y{_ A^r VH$ H$ånZr H$o$Zm_ Zht h¡ Ed§ Bg in the books of Account of the company as g§~§Y _| H$ånZr Zo H$moB© XñVmdoO H$ånZr Ho$ Zm_ Ho$ on 31st March 2018 in Mandi (HP) 74.086 ñdm{_Ëd H$mo à_m{UV H$aZo Ho$ {bE Zht CnbãY H$am`o acres of land at Guma still remain Bg{bE H§$nZr Ho$ ñdm{_Ëd H$s ^y{_ na H$moB© {Q>ßnUr unmatated in the name of the no document provided by the company to Zht H$s JB©& verify the title in the name of the Company, Hence not commented on title in the name of the company.

v) am_ZJa, {Obm Z¡ZrVmb, CÎmam§Mb amÁ` _| v) Leasehold Property at Ramnagar, pñWV nQ²>Q>o na g§n{Îm joÌ\$b 4712.61 District Nanital, State Utranchal dJ©_rQ>a am{e$ é. eyÝ` Area 4712.61 Sq.Mtr ` NIL. 25 AJñV 1984 H$mo {hÝXþñVmZ gm°ëQ²>g {b{_Q>o‹S> Ho$ There is only photo copy of lease deeds Zm_ go {Zînm{XV nQ²>Q>m {dboI H$s N>m`mà{V h¡ {Og_| executed in the name of Hindustan Salts Hw$b joÌ\$b 12123.47 dJ©_rQ>a A§{H$V h¡, O~{H$ Limited on 25th August 1984 which CÎma nydu aobdo, BÁOVZJa {S>drOZ (nQ²>Q>m XoZo dmbm) contains total Area 12123.47 sq.mtr. While Yearly Claim lodged by N.E.Railway, Ho$ dm{f©H$ àñVwV Xmdo _| Ho$db 4712.61 dJ©_rQ>a Izajat Nagar Division (Lessor) Contains d{U©V h¡ h¡& only 4712.61Sq.Mtr.

2. h_| {X`o J`o ñnîQ>rH$aU Ho$ AZwgma H§$nZr ñH$ÝY Ho$ 2. As explained to us, the company has no ^m¡{VH$ gË`mnZ ImamKmoS>m Ed§ _ÊS>r BH$mB© H$m Ho$ g§~§Y written policy and procedures for _| H$moB© {b{IV Zr{V Ed§ à{H«$`m Zhr h¡ VWm df© Ho$ physical verification of the inventory and Xm¡amZ EH$ ~ma ^m¡{VH$ gË`mnZ {H$`m J`m VWm ^m¡{VH$ during the year physical verification has gË`mnZ Ho$ Xm¡amZ H$moB© _hËdnyU© H${_`m§ Zht nmB© JB©& been conducted by the company only for one time at Kharaghoda unit & mandi bo{H$Z am_ZJa BH$mB© H$m ^m¡{VH$ gË`mnZ Zht {H$`m unit and no material discrepancies were J`m& noticed on physical verification. But no Physical Verification was conducted at Ram Nagar Unit

3. H$ånZr Ûmam G$Um| Ho$ g§~§Y _| H$ånZr A{Y{Z`_ H$s 3. In respect of the Loans, secured or Ymam 189 Ho$ AÝVJ©V aIo JE a{OñQ>a _| Cpëb{IV unsecured granted by the company to H$ån{Z`m/| \$_ © d AÝ` njH$mam | H$m o H$ånZr Ûmam Omar companies, firms or other parties in the {H$E JE gwa{jV `m Agwa{jV G$U Zht {bE d Omar register maintained under section 189 of

180 {H$E JE& the Companies Act.

(A) (i) h_| Xr JB© gyMZm Ed§ ñnîQ>rH$aU Ho$ AmYma (a) (i) According to the information & na H$ånZr A{Y{Z`_ H$s Ymam 189 Ho$ AÝVJ©V explanations given to us, the aIo JE a{OñQ>a _| gyMr~Õ njH$mam| H$mo company has not granted any loan ghm`H$ H$ånZr Ho$ A{V[aŠV H$moB© G$U Zht to the parties listed in the register {X`m& maintained under section 189 of the Act, except subsidiary company.

(ii) H$ånZr Ûmam AnZr ghm`H$ H$ånZr gm§^a (ii) The Company has granted gmëQ²>g {b. H$mo ` 2,833.50 bmI H$m Unsecured Loans of ` 2833.50 lakh Agwa{jV G$U {X`m J`m& to its subsidiary company, Sambhar Salts Limited.

(~) ghm`H$ H$ånZr gm§^a gmëQ²>g {b{_Q>oS> go (b) In respect of loans of ` 2833.50 lakh ` 2,833.50 Ho$ G$U Ho$ g§~§Y _| _yb am{e to Subsidiary Company, Sambhar VWm ã`mO H$s H$moB© {Z`{_V dgybr Zht H$s JB©& Salts Limited, no regular recoveries {XZm§H$ 31.3.2017 H$mo _yb am{e Ed§ ã`mO have been made of principal or of interest. The total overdue amount ` 6,096.59 bmI (_yb ` 2,833.50 bmI of principal and interest as on Ed§ ã`mO ` 3,263.09 bmI) Hw$b A{VemoÜ` 31.03.2018 is amounting ` 6300.24 h¡& H$ånZr Ûmam AnZo H$_©Mm[a`m| H$mo ^r G$U H$s lakh (principal ` 2833.50 lakh and àH¥${V H$m A{J«_ {X`m hþAm h¡, {OgH$r dgybr interest ` 3466.74 lakh). The `{X bmJy hmo Vmo H$ånZr H$s Zr{V`m| Ho$ AZwgma company has also given advances in ã`mO g{hV H$s Om ahr h¡& nature of loans to its employees which are recovered regularly together with interest if applicable as per company policy.

(g) H$ånZr Zo AnZr ghm`H$ H$ånZr gm§^a gmëQ²g> (c) The Company has not taken any {b{_Q>o‹S> go ã`mO g{hV G$U H$s dgybr Ho$ steps for recovery of loan along with {bE H$moB© R>mog H$X_ Zht CR>mE& interest from its subsidiary company, Sambhar Salts Ltd. 4. h_mar am` Ed§ h_| Xr JB© gyMZm Ed§ ñnîQ>rH$aU Ho$ 4. In our opinion and according to AZwgma H$ånZr Zo A{Y{Z`_ H$s Ymam 185 Ed§ 186 information and explanations given to us Ho$ àmdYmZm| H$s nmbZm H$s h¡ Omo {H$ G$U H$s ñdrH¥${V, the company has complied with the

181 {d{Z`moJ H$aZo Am¡a JmaÊQ>r Ed§ à{V^y{V XoZo Ho$ g§~§Y _| provisions of section 185 and 186 of the Ohm± bmJy h¡& Act in respect of grants of loans, making investments and providing guarantees and securities as applicable.

5. H$ånZr Ûmam H$ånZr A{Y{Z`_ H$s Ymam 73 go 76 VH$ 5. The company has not accepted any Ho$ àmdYmZm| `m AÝ` gå~§{YV àmdYmZm| Ho$ VhV O_m deposits under the provisions of section am{e àmá Zht H$s h¡ Bg{bE BgHo$ AYrZ AZwnmbZm `m 73 to 76 or any other relevant provisions of H$moB© AÝ` {ZX}e `m AmXoe H$m gdmb hr Zht CR>Vm& the Companies Act and the rules framed there under, and as such the question of compliance under the Companies Act or any other directives or orders does not arise. 6. h_mar am`, h_| Xr JB© gyMZm Ed§ ñnîQ>rH$aU Ho$ AZwgma 6. In our opinion and according to H§$nZr _| bmJV boIm| H$m aIaImd A{Y{Z`_ Ho$ information and explanations given to us àmdYmZm| Ho$ AZwgma bmJy Zht h¡& the company the maintenance of cost records is not applicable to the company as per the provisions of the Act. 7. (A) h_§o Xr J`r gyMZm, Ho$ AZwgma Am¡a boIm 7. (a) According to information and nwñVH$m| Ed§ [aH$m°S>© H$s h_mao Ûmam Om±M Ho$ AmYma explanations given to us and on the na H$ånZr A{ddm{XV d¡Ym{ZH$ Xo`VmAm| {OZ_| basis of our examination of books of ^{dî` {Z{Y, H$_©Mmar amÁ` ~r_m, Am`H$a, accounts, records, the Company has been generally regular in depositing {~H«$sH$a, godmH$a, _yë`d{Y©V H$a, gr_m ewëH$, u n d i s p u t e d s t a t u t o r y d u e s CËnmX ewëH$ Ed§ AÝ` H$moB© d¡Ym{ZH$ Xo`Vm H$mo i n c l u d i n g p r o v i d e n t f u n d , C{MV àm{YH$mar Ho$ nmg {Z`{_V ê$n go O_m employees' state insurance, income- H$am ahr h¡& h_| Xr J`r gyMZm Ed§ ñnîQ>rH$aU Ho$ tax, sales-tax, service tax, value AZwgma 31 _mM© 2018 H$mo Xo` VmarI go 6 added Tax, duty of customs, duty of _mh go A{YH$ A{ddm{XV am{e ~H$m`m Zht h¡& excise and any other statutory dues with the appropriate authority. According to the information and explanation given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31st, 2018 for a period of

182 more than six months from the date on when they become payable.

(~) h_| Xr J`r gyMZm Ed§ ñnîQ>rH$aU Ho$ AZwgma (b) According to the information and Am`H$a, {~H«$sH$a, godmH$a, gr_m ewëH$, explanation given to us there no CËnmX ewëH$ `m _yë`d{Y©V H$a H$s am{e {ddmX dues of income tax, sales tax, service Ho$ H$maU ~H$m`m Zht h¡& tax, custom duty, excise duty or value added tax outstanding on account of any dispute.

8. h_mar am`, h_| Xr JB© gyMZm Ed§ ñnîQ>rH$aU Ho$ AZwgma 8. In our opinion and according to the H$ånZr Ûmam ~¢H$ go {b`o J`o G$U Ed§ CYma Ho$ information and explanations given to us, nwZ^w©JVmZ _| H$moB© MyH$ Zht H$s h¡& {gdm` ^maV gaH$ma the company has not defaulted in the repayment of loans or borrowings from go àmá G$U ` 2523.63 bmI (ã`mO ` 1562.34 bmI g{hV) Ho$ nwZ^w©JVmZ Ho$& H§$nZr Zo {dÎmr` Bank except default in repayment of loans to Government of India ` 2523.63 Lakh g§ñWmZ go H$moB© G$U Ed§ CYma Zht {b`m h¡ VWm H$moB© (including interest ` 1562.34Lakh). The G$U nÌ Omar Zht {H$E h&¢ Company does not have any loans or borrowings from financial institutions and has not issued any debentures. ^maV gaH$ma Ho$ G$U Ho$ nwZ^wJ©VmZ _| MyH$ H$m {dVaU Details of default in repayment of Loan to {ZåZmZwgma h¡…- Government of India are as follows:- {ddaU {dÎmr` pñW{V {ddaU Ho$ MyH$ H$s Ad{Y Particulars Amount of Loan Period defaults as at the of H$s {V{W H$mo G$U balance sheet date default MyH$ H$s am{e ^mar CÚmoJ `876.29 bmI 2006-07 ` 55.50 bmI Department of ` 876.29 Lakh 2006-07 ` 55.50Lakh {d^mJ, ^maV 2007-08 ` 63.04 bmI Heavy Industry, 2007-08 `63.04Lakh ` gaH$ma& 2008-09 ` 63.08 bmI Government of 2008-09 63.08Lakh ` 2009-10 `103.25 bmI India 2009-10 103.25Lakh 2010-11 `163.25 bmI 2010-11`163.25Lakh 2011-12 `107.77 bmI 2011-12 `107.77Lakh 2012-13 `100.20 bmI 2012-13 `100.20Lakh 2013-14 `100.20 bmI 2013-14 `100.20Lakh 2014-15 ` 70.00 bmI 2014-15 `70.00 Lakh 2015-16 ` 25.00 bmI 2015-16` 25.00 Lakh 2016-17 ` 25.00 bmI 2016-17 `25.00 Lakh 2017-18 ` 85.00 bmI 2016-17 `85.00 Lakh 183 9. H$ånZr Zo àma§{^H$ gmd©O{ZH$ àñVmd AWdm A{V[aŠV 9. The company has not raised moneys by gmd©O{ZH$ àñVmd (G$UnÌ g{hV XñVmdoO) `m way of initial public offer or further public gmd{YH$ G$U Ho$ Ûmam am{e Omar Zht H$s h¡& AV… offer (including debt instruments) or term loans and hence reporting under clause AmXoe Ho$ AZwÀN>oX 3(ix) Ho$ AÝVJ©V [anmo{Q>ªJ H$aZm 3(ix) of the order is not applicable. bmJy Zht h¡& 10. h_mar gdm}Îm_ OmZH$mar, à~§YH$m| Ûmam Xr J`r gyMZm 10. To the best of our knowledge and Ed§ ñnîQ>rH$aU Ho$ AZwgma df© Ho$ Xm¡amZ H$ånZr Ûmam according to the information and H$moB© N>b-H$nQ> Ed§ H$ånZr Ho$ A{YH$mar Ed§ H$_©Mmar explanation given by the management, no fraud by the company and no fraud on the Ho$ Ûmam H$ånZr na N>b H$nQ> Ü`mZ _| Zht Am`m& company by its officers or employees has been noticed or reported during the year.

11. AmXoe Ho$ AZwÀN>oX 3(xi) Ho$ VhV H$s OmZo dmbr 11. As the company is Government Company [anmo{Q>ªJ H$ånZr na, EH$ gaH$mar H$ånZr hmoZo Ho$ ZmVo and specific exemption has been given Ed§ A{Y{Z`_ H$s Ymam 197 _| Xr J`r {deof Ny>Q> Ho$ from Section 197 of the Act, hence H$maU bmJy Zht h¡& reporting under clause 3(xi) of the order is not applicable

12. AmXoe Ho$ AZwÀN>oX 3(xii) Ho$ VhV [anmo{Q>ªJ, H$ånZr Ho$ 12. As the company is not Nidhi Company, {Z{Y H$ånZr, Zht hmoZo Ho$ H$maU bmJy Zht h¡& hence reporting under clause 3(xii) of the order is not applicable 13. h_mar am`, h_| Xr J`r gyMZm Ed§ ñnîQ>rH$aU Ho$ 13. In our opinion and according to the AZwgma A{Y{Z`_ H$s Ymam 177 Ed§ 188 H$s information and explanation given to us, AZwnmbZm _| Ohm§ H$ht bmJy hmo, g§~§{YV njH$mam| Ho$ the company is in compliance with gmW g^r ì`dhmam| Ed§ g§~§{YV njH$mam| Ho$ gmW [H$E section 177 and 188 of the Act, where applicable, for all transaction with the JE ì`dhmam| H$m EH$b {dÎmr` {ddaUm| _| boIm _mZH$m| related parties and the details of related Ho$ VhV Ano{jV àH$Q>Z {H$`m J`m h¡& parties transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards. 14. df© Ho$ Xm¡amZ H$ånZr Ûmam Z Vmo H$moB© nydm©{YH$ma Amd§Q>Z 14. During the year the company has not AWdm A§em| H$m [ZOr ßbog_|Q> AWdm nyU©V… AWdm made any preferential allotment or Am§{eH$ n[adV©Zr` G$UnÌ Omar {H$E JE h&¢ private placement of shares or fully or partly convertible debentures.

184 15. h_mar am`, h_| Xr J`r gyMZm Ed§ ñnîQ>rH$aU Ho$ 15. In our opinion and according to the AZwgma H$ånZr Ûmam AnZo {ZXoeH$m| AWdm CZgo information and explanation given to us, g§~§{YV ì`pŠV`m| Ho$ gmW ZH$X _| H$moB© ì`dhma Zht during the year the company has not {H$E JE h¡& AV… A{Y{Z`_ H$s Ymam 192 Ho$ àmdYmZm| entered into any non-cash transactions H$s nmbZm bmJy Zht h¡& with its directors or persons connected to its directors and hence the provisions for compliance under section 192 of the Act are not applicable.

16. H$ånZr, ^maVr` [aOd© ~¢H$ A{Y{Z`_ 1934 H$s Ymam 16. The company is not required to be registered under section 45-lA of the 45-1A Ho$ AÝVJ©V n§OrH$aU Ho$ {bE Ano{jV Zht Reserve bank of India Act, 1934. h¡&

For H.C. Bothra & Associates dmñVo EM.gr. ~moWam EÊS> Egmo{gEQ²>g Chartered Accountants MmQ>©S>© boImH$ma (Firm Registration No. 008950C) (\$_© n§OrH$aU g§. 008950gr) (Dilip Chand Agarwal) ({Xbrn MÝX AJ«dmb) Partner gmPoXma (M. No. 079983) (gXñ` g§. 079983) ñWmZ… O`nwa Place: JAIPUR {XZm§H$… 23.07.2018 Date: 23.07.2018

185 ñdV§Ì A§Ho$jU à{VdoXZ H$s AZwgyMr-~ Annexure-B to the Indenpendebnt Auditor's Report 31 _mM©, 2018 H$mo g_má hþE df© Ho$ {bE boIm| na {hÝXþñVmZ gmëQ²>g {b{_Q>o‹S> Ho$ gXñ`m| H$mo Cgr VmarI VH$ h_mao à{VdoXZ _| AZwgyMr Cëbo{IV h¡& Annexure referred in our report of even date to the member of Hindustan Salts Limited on the accounts for the year ended 31st March 2018

H«$. {dÎmr` {ddaU g§. {ZX}e/Cn {ZX}e H$s JB© H$m`©dmhr na à^md S. Directions / Sub Directions Action Taken Impact on No. financial Statement (A) {ZX}e {ddaU {ZåZ àH$ma h¡& am{e 1. Š`m H$ånZr Ho$ nmg H«$_mZwgma nyU© ñdm{_Ëd dmbr i) ImamKmo‹S>m, J«m_ {Obm gwaoÝÐZJa (JwOamV) _| {ZYm©aU AWdm nQ²>Q>o na ^y{_ H$m ñnîQ> ñdm{_Ëd/nQ²>Q>m nyU© ñdm{_Ëd dmbr g§n{Îm H$m joÌ\$b 23596 EH$‹S> `mo½` {dboI h¡& `{X Zht Vmo H¥$n`m nyU© ñdm{_Ëd dmbr am{e$ ` 24.54 bmI H$ånZr Ûmam Bg g§~§Y _| _yb Zht h¡& AWdm nQ²>Q>o dmbr ^y{_ {OgH$s {H$ ñdm{_Ëd XñVmdoO Zht CnbãY H$am`o J`o Ho$db N>m`mà{V H$m Not brOS>rS> CnbãY Zht h¡ CgH$m joÌ ñnîQ> H$a|& EH$ goQ> CnbãY H$am`m J`m Omo {H$ nyU©V… n‹T>Zo ascer- `mo½` Zht hmoZo Ho$ H$maU H$ånZr Ho$ ñdm{_Ëd Ho$ hH$ tainable H$mo C{MV à_m{UV Zht H$aVm h¡ Am¡a `h n`m©á Zht h¡ VWm CnamoŠV nyU© ñdm{_Ëd dmbr ^y{_ Ho$ hH$ H$mo JwOamV gaH$ma Ûmam nQ²>Q>o na ^y{_ _mZr OmZo H$m {ddmX h¡& `h {ddmX A^r ^r Cƒ ñVar` g{_{V Ho$ nmg bpå~V h¡, VmbwH$m {dH$mg A{YH$mar, nmQ>‹S>r Zo ^r ` 272.80 bmI Ed§ ã`mO H$s am{e H¥${f Ed§ J¡a H¥${f {ZYm©aU Ho$ dmñVo Xmdm {H$`m h¡& A-Direction The details are as follows:- i) Whether the Company has clear i) Freehold property at Kharagodha title/lease deeds for freehold and leasehold Village, District Surendar Nagar, land respectively? If not, please state the area (Gujarat) Area 23596 Acres amounting ` of freehold and leasehold land for which 24.54 lakh There is no original paper title/lease deeds are not available. provided by the company only a set of photocopy provided which was not visible properly to verify the title in the name of the Company, which is not sufficient and the Govt. of Gujarat has disputed the above free hold title of land as Lease Hold. The dispute is still pending with High Power Committee, now the Taluka Vikas Adhikari, Patri has raised a claim for ` 272.80 Lakh (plus

186 interest) on account of agricultural and non-agricultural assessment. ii) _mohb, I{b`ma, _ÊS>r _| nyU© ñdm{_Ëd dmbr g§n{Îm joÌ\$b 702.25 dJ© _rQ>a am{e A§Ho$ ` 37.92 bmI& ii) Freehold property at Mohal Khaliyar, Mandi Area 702.25 Sq.Mtr. Value ` 37.92 Lakh H$ånZr Zo AnZo Zm_ Ho$ hH$ H$mo à_m{UV H$aZo hoVw H$moB© ^r XñVmdoO CnbãY Zht H$am`o h¢& There is no document provided by the company to verify the title in the name of the Company. nQ²>Q>o na g§n{Îm Omo {H$ Or-229, grVmnwam Am¡Úmo{JH$ joÌ, O`nwa, joÌ\$b 2048 dJ©_rQ>a am{e$ ` 5.53 bmI& Leasehold Property at G-229, Sitapura Industrial Area, Jaipur Area 2048 Sq.Mtr. ` 5.53 Lakh Bg g§~§Y _| Ho$db {hÝXþñVmZ gmëQ²>g {b{_Q>o‹S> Ho$ Zm_ 15 _B©, 1996 H$mo {Zînm{XV nQ²>Q>m {dboI 99 df© Ho$ {bE CnbãY H$am`m J`m h¡& There is Lease deeds executed in the name of Hindustan Salts Limited on 15th May 1996 for 99 years. iii) _oJb gmëQ> dŠg© Jwå_ _mBÝg, Ð§J _mBZ, {h_mMb àXoe _| pñWV nQ²>Q>o na g§n{Îm joÌ\$b 113.116 EH$‹S> iii) Leasehold Property at Maigal Salt Works, Gum Mines, Drang Mines, Himachal Pradesh Area 133.116 Acres H$ånZr Ho$ Zm_ go 31 AJñV 2007 H$mo {Zînm{XV nQ²>Q>m {dboI H$s N>m`m à{V h¡, Hw$b 113.116 EH$‹S> (369 ~rKm) ^y{_ H$mo 31 _mM© 2018 H$mo H$ånZr H$s$boIm nwñVH$m| _| Xem©B© JB© _| go Jwå_m _| 74.086 EH$‹S> ^y{_ A^r VH$ H$ånZr Ho$ Zm_ Zht h¡ Ed§ Bg g§~§Y _| H$ånZr Zo H$moB© XñVmdoO H$ånZr Ho$ Zm_ H$o ñdm{_Ëd H$mo à_m{UV H$aZo Ho$ {bE Zht CnbãY H$amE Bg{bE H$ånZr H$s ñdm{_Ëd H$s ^y{_ na H$moB© {Q>ßnUr Zht H$s J`r& There is only Photo copy of Lease deed executed in the name of Hindustan Salts Limited on 31st August 2007. Out of the

187 Vide Letter No. PAO/HI total 133.116 acres (369 bigha ) land /HSL/REC/2018-19/1046 shown in the books of Accounts of the - 47 Dated 29.06.2017 company as on 31st March 2018 in Mandi (HP) 74.086 acres of land at Guma still remain unmatated in the name of the no document provided by the company to verify the title in the name of the Company, Hence not commented on title in the name of the company. iv) am_ZJa, {Obm Z¡ZrVmb amÁ` CÎmam§Mb _| pñWV nQ²>Q>o na g§n{Îm joÌ\$b 4712.61 dJ©_rQ>a am{e$ ` eyÝ` iv) Leasehold Property at Ramnagar, District Nanital, State Utranchal Area 4712.61 Sq.Mtr ` NIL. 25 AJñV 1984 H$mo {hÝXþñVmZ gmëQ²>g {b{_Q>o‹S> Ho$ Zm_ go {Zînm{XV nQ²>Q>m {dboI H$s N>m`mà{V h¡ {Og_| Hw$b joÌ\$b 12123.47 dJ©_rQ>a A§{H$V h¡ O~{H$ CÎma nydu aobdo, BÁOV ZJa {S>drOZ, (nQ²>Q>m XoZo dmbm) Ho$ dm{f©H$ Xmdo _| Ho$db 4712.61 Xem©B© JB© h¡& There is only photo copy of lease deeds executed in the name of Hindustan Salts Limited on 25th August 1984 which contains total Area 12123.47 sq.mtr. While Yearly Claim lodged by N.E.Railway, Izajat Nagar Division (Lessor) Contains only 4712.61Sq.Mtr.

2. Š`m H$moB© _m_bm Ny>Q>, Im[aO H$O©, G$U/ã`mO Am{X df© Ho$ Xm¡amZ boIm| _| H$moB© _m_bm Ny>Q>, Im[aO H$O©, eyÝ` H$m h¡ `{X hm§ Vmo CgH$m H$maU Ed§ Cg_| {Z{hV G$U/ã`mO Am{X H$m Zht nm`m J`m& Nil YZam{e

Whether there are any cases of During the year no case of waiver/write waiver/write off of debts/loans/interest off of debts/loans/interest etc. has been etc. If yes, the reasons thereof and amount considered in the accounts. involved. However during the year Excess Interest debited in books in earlier years of Rs. 693.12 Lakha on Loan Taken Back in heavy Industry & Public Enterprises was Written bank in view of recon Collation/Balance Confirmation letter received from Heavy Industry & Public Enterprises

188 3. Š`m Vrgao njH$ma Ho$ nmg aIo ñQ>m°H$ Ed§ gaH$ma `m H$ånZr Ûmam gaH$ma `m AÝ` go H$moB© g§n{Îm Cnhma eyÝ` AÝ` àm{YH$mar go Cnhma Ho$ ê$n _§o àmá n[agån{Îm Ho$ ê$n _| àmá Zht H$s J`r h¡ Bg{bE H§$nZr Ûmam Nil H$m C{MV [aH$mS>© aIm OmVm h¡? g§n{Îm Cnhmam| H$m H$moB© [aH$m°S>© Zht aIm J`m h¡& Bg Ho$ A{V[aŠV df© Ho$ Xm¡amZ Vrgao njH$ma Ho$ nmg H$moB© ñQ>mH$ Zht aIm J`m h¡& Whether proper records are maintained The company has not received the any for inventories lying with third parties Assets as Gift from Govt. or other and assets received as gift/grant(s) from authorities. Hence no record of gift the Government or other authorities. assets has been maintained by the company, further no inventory was laying with third parties during the year. (~) Cn{ZX}e eyÝ` Nil 1. Š`m H$ånZr H$s Z_H$ CËnmXZ Ho$ {bE CnbãY nyÊm© 1. ImamKmo‹S>m H$s Hw$b ^y{_ 23595.31 EH$‹S> _| go ^y{_ H$m Cn`moJ Z_H$ Ho$ CËnmXZ _| hmo ahm h¡? `{X 22768 EH$‹S> ^y{_ Z_H$ CËnmXZ joÌ _| Z_H$ Zht Vmo BgHo$ H$maU, A{VH«$_U _m_bm§o g{hV `{X CËnmXZ Ho$ {bE h¡, Cg_| go 8500 EH$‹S> ^y{_ df© Ho$ H$moB© hmo, Cn`wŠV ê$n go narjU {H$`m OmH$a {dÎmr` Xm¡amZ Z_H$ CËnmXZ _| H$m_ _| br JB© Š`m§o{H$ à^mdm| Ho$ gmW {dVaU {X`m Om`o& H$ånZr nyU© j_Vm go Z_H$ H$m CËnmXZ Zht H$a ahr h¡& (B) Sub Direction Whether salt producing land of the L a n d o f S a l t w o r k s f o r s a l t company is fully available and utilized manufacturing Area 22768.00 acres are for production of salt? If not, reasons for available out of total area 23595.31 acres the same along with encroachment at Kharagodha and Land area 8500 acres issues, if any, may be examined and are utilized for production of salt during suitably commented upon along with the year as company are not producing financial implication. the salt at full capacity. 2. _ÊS>r _| nQ²>Q>o na ^y{_ 113.116 EH$‹S> CËnmXZ Ho$ {bE CnbãY h¡ O~{H$ IZZ H$m`© OZdar 2011 go ~ÝX h¡& Lease hold at Mandi area 113.116 acres are available for production but mining operation closed since January, 2011.

189 ñdVÝÌ boIm narjH$ H$s [anmoQ>© H$m AZw~§Y-gr ANNEXURE “C” TO THE INDEPENDENT AUDITORS’ REPORT

Am§V[aH$ {dÎmr` {Z`§ÌU na H$ånZr A{Y{Z`_ 2013 Report on the Internal Financial Controls (A{Y{Z`_) H$s Ymam 143 H$s CnYmam 3 Ho$ IÊS> (i) Ho$ under Clause (i) of Sub-section 3 of Section VhV [anmoQ>© 143 of the Companies Act, 2013 (‘the Act’) h_mao Ûmam 31 _mM©, 2017 H$mo g_má hþE df© H$o EH$b {dÎmr` We have audited the internal financial {ddaU na h_mar boIm narjm Ho$ gmW {hÝXþñVmZ gmëQ>²g controls over financial reporting of {b{_Q>o‹S> (H$ånZr) H$s {dÎmr` [anmo{Q>ªJ na Am§V[aH$ boIm Hindustan Salts Limited (“the Company”) as n[a{jV {dÎmr` {Z`§ÌU na H$s J`r h¡& at 31stMarch 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended and as on that date. Am§V[aH$ {dÎmr` {Z`§ÌU Ho$ {bE à~§YZ H$s {Oå_oXmar Management’s Responsibility for Internal Financial Controls H$ånZr Ho$ g§MmbH$ _ÊS>b, {dÎmr` [anmo{Q>ªJ _mnXÊS> {Z`§ÌU The Board of Directors of the Company is H$ånZr Am§V[aH$ {dÎmr` H$s boIm narjm na ^maV Ho$ MmQ>©S> responsible for establishing and maintaining AH$mCÝQ>|Q> gXñ` (AmB© gr E AmB©) Ûmam Omar _mJ©X{e©H$m Ho$ internal financial controls based on the internal AZwgma Am§V[aH$ {dÎmr` {Z`§ÌU Ho$ Amdí`H$ KQ>H$m| na control over financial reporting criteria {dMma H$aHo$ Am§V[aH$ {dÎmr` {Z`§ÌU H$s ñWm{nV Ed§ {Z`§ÌU established by the Company considering the essential components of internal control stated ~ZmE aIZo Ho$ {bE {Oå_oXma h¢& BZ {Oå_oXm[a`m| _| {S>OmBZ, in the Guidance Note on Audit of Internal H$m`m©Ýd`Z Am¡a n`m©á Am§V[aH$ {dÎmr` {Z`§ÌU em{_b h¡ Omo Financial Controls over Financial Reporting {H$ AnZo ì`mnma Ho$ gm_mÝ`V… Am¡a Hw$eb g§MmbZ H$mo issued by the Institute of Chartered gw{ZpíMV H$aZo, H§$nZr H$s Zr{V`m| H$s nmbZm g{hV, Ho$ {bE Accountants of India (‘ICAI’). These à^mdr T>§J go H$m_ Ed§ aIaImd H$a aho Wo& AnZr g§n{Îm H$s responsibilities include the design, gwajm, amoH$Wm_, YmoImY‹S>r H$m nVm bJmZo, gQ>rH$Vm Am¡a implementation and maintenance of adequate boIm A{^boIm| H$s nyU©Vm Am¡a {dídgZr` {dÎmr` OmZH$mar internal financial controls that were operating H$s g_` na V¡`mar, {OgH$s H§$nZr A{Y{Z`_ 2013 Ho$ effectively for ensuring the orderly and VhV Amdí`H$Vm h¡& efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. boIm narjH$m| H$s {Oå_oXmar Auditors’ Responsibility h_mar {Oå_oXmar h_mao boIm narjm Ho$ AmYma na {dÎmr` Our responsibility is to express an opinion on the Company's internal financial controls over 190 [anmo{Q>ªJ na H$ånZr Ho$ {dÎmr` Am§V[aH$ [anmo{Q>ªJ na am` ì`ŠV financial reporting based on our audit. We H$aZo Ho$ {bE h¡& h_ EH$ hX VH$ {dÎmr` [anmo{Q>ªJ na Am§V[aH$ conducted our audit in accordance with the {dÎmr` {Z`§ÌU H$m boIm narjm Ho$ {bE bmJy H$aZo Ho$ {bE, Standards on Auditing, prescribed under boIm narjm na _mZH$ Ho$ AZwgma h_mar boIm narjm, H$ånZr section 143(10) of the Companies Act, 2013, A{Y{Z`_ 2013 H$s Ymam 143 (10) Ho$ VhV {ZYm©[aV h¡ and the Guidance Note, to the extent Am¡a _mJ©Xe©Z {Q>ßnUr H$m Am`moOZ {H$`m J`m& CZ _mZH$m| applicable to an audit of internal financial Am¡a _mJ©Xe©H$ {Q>ßnUr H$s, Amdí`H$VmZwgma h_Zo Z¡{VH$ controls over financial reporting. Those Amdí`H$VmAm| Am¡a `moOZm Ho$ AZwê$n nmbZm H$s h¡ Am¡a boIm Standards and the Guidance Note require that we comply with the ethical requirements and narjH$ H$m H$m`© {dÎmr` [anmo{Q>ªJ na n`m©á Am§V[aH$ {dÎmr` plan and perform the audit to obtain {Z`§ÌU ñWm{nV {H$`o OmZo Ho$ {bE C{MV AmídmgZ àmá reasonable assurance about whether adequate {H$`m, Omo {H$ g^r _hËdnyU© _m_bm| _| à^mdr T>§J go h_mar internal financial controls over financial boIm narjm H$s {dÎmr` [anmo{Q>ªJ na Am§V[aH$ {Z`§ÌU àUmbr reporting was established and maintained and H$s n`m©áVm Am¡a CZHo$ n[aMmbZ à^md Ho$ ~mao _| boIm narjm if such controls operated effectively in all gmú` àmá H$aZo H$s à{H«$`m _| em{_b h¡& material respects. {dÎmr` [anmo©{Q>§J na {dÎmr` Am§V[aH$ {Z`§ÌU H$s h_mar boIm Our audit involves performing procedures to narjm {dÎmr` [anm}qQ>J na {dÎmr` Am§V[aH$ qZÌU H$s EH$ obtain audit evidence about the adequacy of g_P àmá H$aZm Omo{I_ h¡ {H$ EH$ gm_J«r H$_Omoar go _m¡OyX the internal financial controls system over h¡ Am¡a narjU H$m Am§H$bZ H$aZo Am¡a {S>OmBZ Ho$ _yë`mH§$Z financial reporting and their operating effectiveness. Our audit of internal financial Am¡a g§MmbZ H$m _yë`m§H$Z Omo{I_ Ho$ AmYma na Am§V[aH$ controls over financial reporting included {Z`§ÌU H$s à^mderbVm em{_b, à{H«$`mAm| go M`{ZV boIm obtaining an understanding of internal narjH$ Ho$ \¡$gbo na {Z^©a H$aVr h¡ {dÎmr` ~`mZ H$s gm_J«r financial controls over financial reporting, JbV ~`mZ Ho$ Omo{I_ Ho$ Am§H$bZ Mmho H$maU YmoImY‹S>r `m assessing the risk that a material weakness Ìw{Q> Ho$ {bE ^r em{_b h¡& exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. h_ _mZVo h¡ {H$ boIm narjm gmú` h_Zo àmá H$s h¡ {dÎmr` We believe that the audit evidence we have [anmoqQ>J na H$ånZr Ho$ Am§V[aH$ {dÎmr` {Z`§ÌU àUmbr na obtained is sufficient and appropriate to h_mar boIm narjm H$s am` Ho$ {bE EH$ AmYma àXmZ H$aZo Ho$ provide a basis for our audit opinion on the {bE n`m©á Am¡a C{MV h¡& Company’s internal financial controls system over financial reporting. {dÎmr` [anm©oqQ>J na Am§V[aH$ {dÎmr` {Z`Ì§U H$m VmËn`© Meaning of Internal Financial Controls over Financial Reporting {dÎmr` [anm©oqQ>J na H$ånZr H$s Am§V[aH$ {dÎmr` {Z`§ÌU Ed§ A company's internal financial control over à{H«$`m {dÎmr` [anm}{Q>§J H$s {dídgZr`Vm Am¡a Am_Vm¡a na financial reporting is a process designed to provide reasonable assurance regarding the

191 ñdrH$m`© boIm§H$Z {gÕm§Vm| Ho$ AZwgma ~mhar à`moOZm| Ho$ {bE reliability of financial reporting and the {dÎmr` dŠVì` H$s V¡`mar Ho$ g§~§Y _| C{MV AmídmgZ àXmZ preparation of financial statements for external H$aZo Ho$ {bE ~Zm`m J`m h¡& {dÎmr` [anmo{Q>ªJ na H$ånZr H$s purposes in accordance with generally Am§V[aH$ {dÎmr` {Z`§ÌU CZ Zr{V`m| Am¡a à{H«$`mAm| H$s h¡& accepted accounting principles. A company's (1) A{^boIm| Ho$ aIaImd go g§~§{YV h¡, Omo {H$ C{MV internal financial control over financial {dñVma, go ghr Am¡a H$m\$s boZXoZ Ed§ H$ånZr H$s g§n{Îm Ho$ reporting includes those policies and ñd^md H$mo à{V{~på~V em{_b h¡& (2) C{MV AmídmgZ {X`m procedures that (1) pertain to the maintenance h¡ {H$ boZXoZ H$mo ñdrH$m`© boIm§H$Z {gÕm§Vm| Ho$ AZwgma of records that, in reasonable detail, accurately {dÎmr` dŠVì`m| H$s V¡`mar H$s AZw_{V Ho$ {bE XO© H$a aho h¢ and fairly reflect the transactions and Ed§ H$ånZr H$s àm{á`m± Ed§ ì`` H$mo à~§YZ Ed§ H$ånZr Ho$ dispositions of the assets of the company; (2) {ZX}eH$m| Ho$ Ûmam A{YH¥$V H$aZo Ho$ ~mX {H$`m OmVm h¡& (3) provide reasonable assurance that transactions are recorded as necessary to H§$nZr H$s g§n{Îm Ho$ ~mao _| Z`m AmídmgZ {X`m J`m h¡ {H$ permit preparation of financial statements in AZm{YH¥$V A{YJ«hU Ho$ {bE C{MV amoH$Wm_, Cn`moJ `m accordance with generally accepted g§n{Îm Ho$ ñd^md Omo {H$ {dÎmr` {ddaU na _hËdnyU© à^md accounting principles, and that receipts and S>mbVm hmo& expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. {dÎmr` [anmo©{Q>§J na Am§V[aH$ {dÎmr` {Z`§ÌU H$s {Z{hV Inherent Limitations of Internal Financial gr_mE§…- Controls over Financial Reporting {dÎmr` [anm©o{Q>§J na Am§V[aH$ {dÎmr` {Z`§ÌU, {_br^JV `m Because of the inherent limitations of internal {Z`§ÌU Ho$ AZw{MV à~§YZ KQ>Zm _hËdnyU© JbV {ddaU financial controls over financial reporting, {Oggo YmoImY‹S>r H$s g§^mdZm hmoVr h¡ Am¡a Zht hmo gH$Vr h¡, including the possibility of collusion or em{_b h¡& H$s {Z{hV gr_mAm| H$m nVm bJmZo hoVw Ed§ BgHo$ improper management override of controls, Abmdm ^{dî` Ad{Y Ho$ {bE {dÎmr` [anmo©{Q>§J na Am§V[aH$ material misstatements due to error or fraud may occur and not be detected. Also, {dÎmr` {Z`§ÌU Ho$ {H$gr ^r _yë`m§H$Z Ho$ {bE AZw_mZm| Ho$ projections of any evaluation of the internal Omo{I_ Ho$ AYrZ h¡ Š`m|{H$ {dÎmr` [anmo{Q>ªJ na Am§V[aH$ financial controls over financial reporting to {dÎmr` {Z`§ÌU H$s pñW{V`m| _| ~Xbmd An`m©á hmo gH$Vm h¡ future periods are subject to the risk that the `m Zr{V`m| Ed§ à{H«$`mAm| H$s AZwnmbZm H$s pñW{V Iam~ hmo internal financial control over financial gH$Vr h¡& reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. _`m©{XV am` Qualified Opinion h_| Xr J`r OmZH$mar, ñnîQ>rH$aU Ho$ AZwgma Am¡a h_mao boIm According to the information and

192 narjm Ho$ AmYma na {ZåZ{b{IV _hËdnyU© H${_`m± 31 _mM©, explanations given to us and based on our 2017 H$mo {M[•V H$s JB© h¡& audit, the following material weaknesses have been identified as at March 31, 2017: H$) H$ånZr _| AMb gån{Îm`m| Am¡a ñH$ÝY H$o Amd{YH$ a) The company has no written policies ^m¡{VH$ gË`mnZ Ho$ {bE H$moB© {b{IV Zr{V`m| Am¡a and procedures for periodical physical à{H«$`mE± Zht h¢& df© Ho$ Xm¡amZ AMb g§n{Îm`m| Ed§ verification of fixed assets and ñH$ÝY H$m ^m¡{VH$ gË`mnZ Zht {H$`m J`m h¡& inventories and also during the year ñH$Ýhm H$m ^m¡{VH$ ñË`mnZ am_ZJa, BH$mB© H$m under consideration no physical verification of fixed assets has been H$ånZr Ûmam Zht {H$`m J`m h¢& conducted by us. and further on physical verification of Inventory of Ram Nagar unit is not conducted by the company h_mar am` _| CnamoŠV à^md Ho$ Abmdm _hËdnyU© H$_Omo[a`m| In our opinion, except for the effects/possible Ho$ {Z`§ÌU _mnXÊS> Ho$ CÔoí`m| H$s àm{á na CnamoŠV d{U©V Ho$ effects of the material weaknesses described gå^m{dV à^mdr, H$ånZr Ho$ g^r _hËdnyU© _m_bm|, {dÎmr` above on the achievement of the objectives of [anmo{Q>ªJ Am¡a Bg Vah Ho$ Am§V[aH$ {dÎmr` {Z`§ÌU na n`m©á the control criteria, the Company has maintained, in all material respects, adequate {Z`§ÌU ~Zm`o aIm J`m h¡& {dÎmr` [anmo{Q>ªJ na _mJ©X{e©H$m _| internal financial controls over financial ~VmE JE _mnXÊS> na H$ånZr _| Am§V[aH$ {Z`§ÌU Ho$ reporting and such internal financial controls Amdí`H$ KQ>H$m| na {dMma H$aHo$ Cgo 31 _mM©, 2018 H$mo over financial reporting were operating à^mdr T>§J go H$m_ H$a aho Wo& effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note. h_Zo _hËdnyU© H${_`m| H$s nhMmZ Am¡a Cggo D$na H$s gyMZm We have considered the material weaknesses H$s àH¥${V g_` H$m {ZYm©aU H$aHo$ hr 31 _mM©, 2018 Ho$ identified and reported above in determining H$ånZr Ho$ {dÎmr` {ddaUm| H$s boIm narjU H$s Om±M H$mo bmJy the nature, timing, and extent of audit tests H$aVo hþE H$s h¡ Am¡a BZ _hËdnyU© H${_`m| H$m H§$nZr Ho$ EH$b applied in our audit of the March 31, 2018 {dÎmr` {ddaUm| na Xr J`r am` na H$moB© à^md Zht n‹S>m h¡& standalone financial statements of the Company, and these material weaknesses does not affect our opinion on the standalone financial statements of the Company. dmñVo EM.gr. ~moWam EÊS> Egmo{gEQ²>g For H.C. Bothra & Associates MmQ>©S>© boImH$ma Chartered Accountants \$_© n§OrH$aU g§»`m 008950 gr Firm Registration No: 008950C ({Xbrn MÝX AJ«dmb) (Dilip Chand Agarwal) gmPoXma Partner Membership No: - 079983 gXñ` g§»`m 079983 ñWmZ … O`nwa Place: JAIPUR {XZm§H$ … 23.07.2018 Date: 23.07.2018 193

HINDUSTAN SALTS LIMITEDL

2017-18

195 31 _mM©, 2018 H$mo g_má df© H$m {dÎmr` pñW{V {ddaU BALANCE SHEET AS AT 31ST MARCH, 2018 (` bmI _|) (` In Lakh) {ddaU {Q>ßnUr 31.03.2018 31.03.2017 PARTICULARS g§. H$mo Am§H$‹S>o H$mo Am§H$‹S>o Note Figures as on Figures as on No. 31-03-2018 31-03-2017 A. g_Vm d Xm{`Ëd A.EQUITY AND LIABILITIES 1. A§e YmaH$ {Z{Y/SHARE HOLDER'S FUND (A)A A§e ny§Or/Share Capital 2 5,205.96 4,205.96 (~)B Ama{jV Ed§ A{Yeof/Reserve & Surplus 3 (427.94) (611.49) 2. A§e AmdoXZ am{e {OgH$m Amd§Q>Z ~mH$s h¡ SHARE APPLICATION MONEY PENDING ALLOTMENT - - - 3. J¡a Mmby Xm{`Ëd/NON CURRENT LIABILITIES (A)A XrKm©d{Y CYma/Long Term Borrowings 4 280.00 65.00 (~)B AmñW{JV H$a Xm{`Ëd (eÕw )/Deferred Tax Liabilities (Net) - - - (g)C AÝ` XrKm©d{Y Xm{`Ëd/Other Long Term Liabilities - - - (X)D XrKm©d{Y àmdYmZ/Long Term Provisions 5 354.40 410.37 4. Mmby Xm{`Ëd CURRENT LIABILITIES (A)A Aënmd{Y CYma/Short Term Borrowings 6 33.82 80.47 (~)B ì`mnma Xo`VmE§/Trade Payables 7 212.34 213.83 (g)C AÝ` Mmby Xm{`Ëd/Other Current Liabilities 8 3039.54 3,574.19 (X)D Aënmd{Y àmdYmZ/Short Term Provisions - - - `moJ/TOTAL 8,698.12 7,938.33 ~. n[agån{V`m§ B. ASSETS 1. J¡a Mmby n[agån{Îm`m§/NON-CURRENT ASSETS (A)A ñWm`r$n[agån{Îm`m§/Fixed Assets 9 (i) _yV©$n[agån{Îm`m§/Tangible Assets 713.65 510.56 (ii) A_yV©$n[agån{Îm`m§/Intangible Assets 1.75 2.16 (iii) ny§Or H$m`© àJ{V _|/Capital Work-In- Progress 23.05 164.18 (iv) A_yV© n[agån{Îm`m§ {dH$mgmYrZ Intangible Assets under Development - - (~)B J¡a Mmby {Zdoe/Non Current Investments 10 60.00 60.00 (g)C AmñW{JV H$a n[agån{Îm`m § (eÕw )/Deferred Tax Assets (net) - - - (X)D XrKm©d{Y G$U Ed§ A{J«_ Long term Loans and Advances 11 799.42 1,038.59 (`)E AÝ` J¡a Mmby n[agån{Îm`m§ Other Non Current Assets 12 200.88 205.09 1,798.75 1,980.58 196 {dÎmr` pñW{V {ddaU (Omar) BALANCE SHEET (Contd.) (` bmI _|) (` In Lakh) {ddaU {Q>ßnUr 31.03.2018 31.03.2017 PARTICULARS g§. H$mo Am§H$‹S>o H$mo Am§H$‹S>o Note Figures as on Figures as on No. 31-03-2018 31-03-2017 2. Mmby n[agån{V`m§ CURRENT ASSETS (A)A Mmby {Zdoe/Current Investments - - - (~)B ñH§$Y$/Inventories 13 196.48 222.38 (g)C ì`mnma àm{á`m±/Trade Receivables 14 42.06 37.74 (X)D ZH$X d ZH$X g_H$j/Cash & Cash Equivalents 15 600.81 317.38 (`)E Aënmd{Y G$U Ed§ A{J«_ Short Term Loans and Advances 16 6,033.80 5,356.05 (a)F AÝ` Mmby n[agån{Îm`m§/Other Current Assets 17 26.22 24.20 6,899.37 5,957.75 `moJ/TOTAL 8,698.12 7,938.33 _hËdnyU© boIm Zr{V`m§ Ed§ boIm| na {Q>ßn{U`m§ 1 to 29 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON FINANCIAL STATEMENTS

gw_moZm _Oy_Xma Eg.Ho$. Q>mH$ gVre garZ Eg.nr. ~§gb (Sumona Majumdar) (S.K. Tak) (Satish Sareen) (S.P. Bansal) H$ånZr g{Md _hmà~§YH$ ({d. Ed§ bo.) {ZXoeH$$ AÜ`j Ed§ à~ÝY {ZXoeH$ Company Secretary General Manager (F & A) Director Chairman and DIN-01874068 Managing Director DIN-07239609 h_mao Bgr {XZm§H$ Ho$ g§b½Z à{VdoXZ Ho$ AZwgma in terms of our report of even date annexed hereto H¥$Vo EM.gr. ~moWam EÊS> Egmo{gEQ²>g/For H.C. Bothra & Associates MmQ>©S>© boImH$ma/Chartered Accountants g§ñWm n§OrH$aU g§./Firm Registration No. 008950C

ñWmZ : O`nwa ({Xbrn MÝX AJ«dmb) Place : Jaipur (Dilip Chand Agarwal) {XZm§H$ : 23 OwbmB©, 2018 gmPoXma/Partner Dated : 23 July, 2018 gXñ`Vm g§./Membership No. 079983

197 31 _mM©, 2018 H$mo g_mßV df© H$m bm^ Ed§ hm{Z H$m {ddaU STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2018 (` bmI _|) (` In Lakh) {ddaU {Q>ßnUr 2017-18 2016-17 PARTICULARS g§»`m df© Ho$ Am§H$‹S>o df© Ho$ Am§H$‹S>o Note Figures for the Figures for the No. Year 2017-18 Year 2016-17 amOñd/REVENUE :- n[aMmbZ go àm{á`m§/Revenue from Operations 18 692.72 595.66 AÝ` Am`/Other Income 19 694.98 828.47 KQ>mB`o…- ghm`H$ H$ånZr gm±^a gmëQ²>g {b. H$mo g§`wŠV _w»`mb` Am` H$m A{^^m{OV A§e Less: Share of common H.O. receipts as apportioned to Subsidiary Company, Sambhar Salts Limited (0.28) (1.85) Hw$b Am`/Total Income 1,387.42 1,422.28 ì``/EXPENSES - Cn`moJ H$s J`r gm_J«r H$s bmJV/Cost of Materials Consumed 20 525.51 426.17 ì`mnm[aH$ ñQ>m°H$ H$m H«$`/Purchases of Stock-in-Trade - 54.05 75.97 H$m`© àJ{V _|, V¡`ma _mb d ì`mnma _| ñQ>m°H$ H$m n[adV©Z Changes in Inventories of Finished Goods, Work-in- Progress and Stock-in-Trade 21 5.18 14.02 H$_©Mmar H$ë`mU IM}/Employee Benefits Expense 22 541.53 449.64 {dÎmr` bmJV/Finance Costs 23 358.30 387.64 ömg d n[aemoYZ ì``/Depreciation and Amortization Expense 70.57 75.33 AÝ` ì``/Other Expenses 24 169.21 167.08 1,724.35 1,595.85 KQ>mB`…o ghm`H$ H$ånZr gm^± a gmëQ>²g {b. H$m o g`§ Šw V _»w `mb` ì`` H$m A{^^m{OV Ae§ Less: Share of common H.O. expenses as apportioned to Subsidiary Company, Sambhar Salts Limited 228.68 214.64 Hw$b ì``/Total Expenses 1,495.67 1,381.21 Andm{XV _Xm| go nyd© bm^ PROFIT BEFORE EXCEPTIONAL ITEMS (108.25) 41.07 Andm{XV _X| EXCEPTIONAL ITEMS nydm©d{Y Am`/(ì``)/g_m`moOZ (ewÕ) Prior Period Income /(Expenses)/ Adjustment (Net) 25 291.80 -0.65 H$am| go nyd© bm^ PROFIT BEFORE TAX 183.55 40.42

198 bm^ Ed§ hm{Z boIm (Omar) PROFIT AND LOSS ACCOUNT (Contd.) (` bmI _|) (` In Lakh) {ddaU {Q>ßnUr 2017-18 2016-17 PARTICULARS g§»`m df© Ho$ Am§H$‹S>o df© Ho$ Am§H$‹S>o Note Figures for the Figures for the No. Year 2017-18 Year 2016-17

H$a ì``/Tax Expenses

Mmby H$a/Current Tax - -

AmñW{JV H$a/Deferred Tax - - df© H$m bm^ PROFIT FOR THE YEAR 183.55 40.42 à{V g_Vm A§e AO©Z EARNINGS PER EQUITY SHARE: 26

_yb BnrEg (` _|)/Basic EPS (in `) 41.20 9.61

VZwH¥$V B©nrEg (` _|)/Diluted EPS (in `) 41.20 9.61 _hËdnyU© boIm Zr{V`m§ Am¡a boIm| H$s {Q>ßn{U`m§ SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON FINANCIAL STATEMENTS 1 to 29

gw_moZm _Oy_Xma Eg.Ho$. Q>mH$ gVre garZ Eg.nr. ~§gb (Sumona Majumdar) (S.K. Tak) (Satish Sareen) (S.P. Bansal) H$ånZr g{Md _hmà~§YH$ ({d. Ed§ bo.) {ZXoeH$$ AÜ`j Ed§ à~ÝY {ZXoeH$ Company Secretary General Manager (F & A) Director Chairman and DIN-01874068 Managing Director DIN-07239609 h_mao Bgr {XZm§H$ Ho$ g§b½Z à{VdoXZ Ho$ AZwgma in terms of our report of even date annexed hereto H¥$Vo EM.gr. ~moWam EÊS> Egmo{gEQ²>g/For H.C. Bothra & Associates MmQ>©S>© boImH$ma/Chartered Accountants g§ñWm n§OrH$aU g§./Firm Registration No. 008950C

ñWmZ : O`nwa ({Xbrn MÝX AJ«dmb) Place : Jaipur (Dilip Chand Agarwal) {XZm§H$ : 23 OwbmB©, 2018 gmPoXma/Partner Dated : 23 July, 2018 gXñ`Vm g§./Membership No. 079983

199 amoH$‹S> àdmh {ddaU 31 _mM©, 2018 H$mo g_má df© H$o${bE CASH FLOW STATEMENT FOR THE YEAR ENDING 31ST MARCH, 2018 (` bmI _|) (` In Lakh) {ddaU PARTICULARS 2017-18 2016-17 n[aMmbZ J{V{d{Y`m| go amoH$‹S> àdmh Cash Flow from Operating Activities H$a go nyd© bm^/(hm{Z)/Profit/(Loss) before Tax 183.55 40.42 g_m`moOZ Ho$ {bE/Adjustments for (A)A ömg/Depreciation 73.40 79.39 g§{X½Y XoZXmam| Ho$ {bE àmdYmZ/Provision for doubtful debts - - ^wZmZo `mo½` AdH$me Ed§ S>r.gr.Ama.Or. Ho$ {bE àmdYmZ Provision for Leave Encashment & D.C.R.G. (55.97) (70.23) ã`mO ì``/Interest Expenses 358.30 387.64 gmd{Y O_m àmpßV`m±/ghm`H$ H$ånZr go ã`mO H$s Am` Interest Income from TDR/Subsidiary Company (667.54) (774.16) df© Ho$ Xm¡amZ ny§OrJV g§M` H$m g_m`moOZ Capital Reserve adjusted during the year (0.00) (291.81) (0.01) (377.37) (~)B H$m`©erb ny§Or Ho$ n[adV©Z go nyd© n[aMmbZ bm^ Operating Profit before working capital changes (108.26) (336.95) (g)C H$m`©erb ny§Or _|$n[adV©Z/Change in Working Capital Aënmd{Y CYma/Short Term Borrowings (46.65) 69.04 ì`dgm` Xo`Vm/Trade Payables (1.49) 4.29 AÝ` Mmby Xm{`Ëd/Other Current Liabilities (534.64) 687.56 _mb/Inventories 25.90 (47.09) ì`dgm` àm{á`m±/Trade Receivables (4.32) 23.96 Aënmd{Y G$U Ed§ A{J«_/Short Term Loans and Advances (677.75) (653.10) AÝ` Mmby n[agån{Îm`m§/Other Current Assets (2.02) (0.12) AÝ` {d{dY IM}/Other Misc Expenses 4.21 (1,236.76) 33.63 118.17 (X)D n[aMmbZ go CËnm{XV amoH$‹S>/Cash generated from operations (1,345.02) (218.78) (`)E ^wJVmZ {H$`o J`o àË`j H$a Ho$ {bE g_m`moOZ Adjustments for direct tax paid - - (a)F n[aMmbZ J{V{d{Y`m| go ewÕ amoH$‹S> àdmh Net Cash Flow from Operative Activities (D-E) (1,345.02) (218.78) (b)G {Zdoe J{V{d{Y`m| go amoH$‹S> àdmh Cash Flow from Investing Activities H$m`© àJ{V na Am¡a ñWmB© n[agån{V`m§o H$s IarX Purchase of Fixed Assets & Capital W.I.P. (134.96) (222.12) ã`mO go Am`/Interest income 667.54 774.16

200 amoH$‹S>> àdmh {ddaU (Omar) CASH FLOW STATEMENT (Contd.) (` bmI _|) (` In Lakh) {ddaU 2017-18 PARTICULARS 2016-17 ghm`H$ H$ånZr gm§^a gmëQ²>g {b./n|eZ \§$S> H$mo {X`m J`m A{J«_ Loan given to Subsidiary Company, Sambhar Salts Limited/Pension Fund 239.17 771.75 (379.52) 172.52 (d)H {dÎmr` J{V{d{Y`m| go ewÕ amoH$‹S> àdmh Net Cash Flow from Financing Activities XrKm©d{Y CYm[a`m| go ewÕ àm{á`m± Net proceeds from long term borrowing 215.00 (25.00) àmá A§e ny±Or/Share Capital Received 1,000.00 - O_mE§/Deposits - - ã`mO ì``/Interest Expenses (358.30) 856.70 (387.64) (412.64) (e)I amoH$‹S> g_H$j Am¡a amoH$‹S> _| ewÕ n[adV©Z Net changes in Cash and Cash equivalent 283.43 (458.90) (g)J {dÎmr` df© Ho$ ewê$ _| amoH$‹S> g_H$j Am¡a amoH$‹S> Cash and Cash equivalent at the beginning of Fin. Year 317.38 776.28 (f)K {dÎmr` df© Ho$ AÝV _| amoH$‹S> g_H$j Am¡a amoH$‹S> Cash and Cash equivalent at the end of the Fin. Year 600.81 317.38

EEg -3 Ho$ AZwgma AàË`j {d{Y na ZH$X àdmh {ddaU V¡`ma {H$E JE h¢& Cash flow statements has been prepared on indirect method as per AS-3. *E\$S>rAma H$m é& gwajm AmoS>r F$U H$s Amoa Eg~rAmB©, O`nwa, IaJmoXm Am¡a _§S>r (Eg~r~rOo O`nwa Ho$ gmW {nN>bo df© 13.74 bmI én`o Am¡a Eg~rAmB© Ho$ gmW 72.25 bmI) Ho$ gmW 76.8 9 bmI à{Vkm H$s JB©&/*FDR's Rs. 76.89 Lakh pledged with SBI, Jaipur, Kharaghoda and Mandi (Previous Year Rs. Rs. 13.74 Lakh with SBBJ Jaipur and Rs. 72.25 Lakh with SBI) towards security For OD Loan.

gw_moZm _Oy_Xma Eg.Ho$. Q>mH$ gVre garZ Eg.nr. ~§gb (Sumona Majumdar) (S.K. Tak) (Satish Sareen) (S.P. Bansal) H$ånZr g{Md _hmà~§YH$ ({d. Ed§ bo.) {ZXoeH$$ AÜ`j Ed§ à~ÝY {ZXoeH$ Company Secretary General Manager (F & A) Director Chairman and DIN-01874068 Managing Director DIN-07239609 h_mao Bgr {XZm§H$ Ho$ g§b½Z à{VdoXZ Ho$ AZwgma in terms of our report of even date annexed hereto H¥$Vo EM.gr. ~moWam EÊS> Egmo{gEQ²>g/For H.C. Bothra & Associates MmQ>©S>© boImH$ma/Chartered Accountants g§ñWm n§OrH$aU g§./Firm Registration No. 008950C

ñWmZ : O`nwa ({Xbrn MÝX AJ«dmb) Place : Jaipur (Dilip Chand Agarwal) {XZm§H$ : 23 OwbmB©, 2018 gmPoXma/Partner Dated : 23 July, 2018 gXñ`Vm g§./Membership No. 079983

201 {Q>ßnÊmr g§.- 1…- 31 _mM©, 2018 H$mo g_má NOTE NO. – 1: - SIGNIFICANT ACCOUNTING POLICIES FOR THE df© Ho$ {bE _hËdnyU© boIm Zr{V`m§ YEAR ENDED ON 31ST MARCH, 2018

1.1. boIm| H$m AmYma 1.1. BASIS OF ACCOUNTING

ò {dÎmr` {dda{U`m± àmMrZ bmJV àWm Ho$ AZwgma The Financial Statements have been {ZaÝVa gå~Õ, amOñd _mÝ`Vm Ed§ ì`` CÕÎm H$aZo prepared in accordance with the historical H$s boIm Ho$ CnmO©Z H$s nÕ{V Ho$ AmYma na$V¡`ma {H$ò cost convention on the basis of going Jò h¡& concern, with revenue recognised and expenses accounted for on accrual system of accounting. 1.2. AZw_mZm| H$m Cn`moJ 1.2. USE OF ESTIMATES {dÎmr` {ddaUm| H$mo V¡`ma H$aZo _| AZw_mZ Ed§ nydm©Zw_mZ The preparation of Financial Statements Ano{jV hmoVo h¢, Omo km{nV Ad{Y _| n[agån{Îm`m|, requires estimates and assumptions Xo`VmAm|, amOñd VWm IMm} H$s km{nV am{e H$mo which affected the reported amounts of assets, liabilities, revenues and expenses à^m{dV H$aVo h¡§& dmñV{dH$ n[aUm_m| Am¡a AZw_mZm| Ho$ of the reporting period. The difference A§Va H$mo Cgr Ad{Y _| _mÝ`Vm Xr OmVr h¡ {Og_| between the actual results and estimates n[aUm_ kmV hmoVo h¢ AWdm dmñV{dH$ _yV© ê$n boVo h¡§& are recognised in the period in which the results are known or materialised.

1.3. {d{Z`moOZ 1.3. INVESTMENTS {d{Z`moOZ, Mmby E§d J¡a Mmby {d{Z`moOZm| _| dJuH¥$V h¡& Investments are classified into Current Mmby {d{Z`moOZ, bmJV d ~mOma _yë` Ho$ Ý`yZV_ na and Non-CurrentInvestments. Current Investments are stated at lower of cost or h¡& J¡a Mmby {d{Z`moOZ bmJV na h¡ Ed§ à~ÝYZ Ho$ market value. Non-CurrentInvestments _VmZwgma AñWmB© Ho$ A{V[aŠV `{X _yë`m| _| H$_r hmo are stated at cost and provision for Vmo Bg H$_r Ho$ {bE àmdYmZ {H$`m J`m h¡& diminution in value is made only if such decline is other than temporary in the opinion of the management. 1.4. à{H«$`m _o| Z_H$/_mb H$m _yë`m§H$Z /Omar _mb 1.4. VALUATION OF INVENTORIES/ SALT IN PROCESS

(i) ^ÊS>mamo§ VWm A{V[aŠV nwOm] H$m _yë`m§H$Z (i) Stores & Spares are valued at cost or Net AÝ`Wm Xem©`o J`o Ho$ A{V[aŠV bmJV AWdm Realisable Value whichever is lower ewÕ dgybr `mo½` _yë` _| go Omo ^r H$_ hmo na except otherwise mentioned. {H$`m J`m h¡& 202 (ii) H$ÀMm _mb Ed§ n¡qH$J gm_J«r H$m _yë`m§H$Z (ii) Raw Materials and Packing Materials are bmJV AWdm ewÕ dgybr `mo½` _yë` _| go Omo ^r valued at cost or Net Realisable Value H$_ hmo, Cg na {H$`m J`m h¡& whichever is lower except otherwise mentioned.

(iii) aÔr _mb Ed§ AZwn`moJr gm_J«r H$mo CZHo$ (iii) Released material and scrap is valued at AZw_m{ZV dgybr `mo½` _yë` na _yë`m§{H$V estimated realisable value and Assets {H$`m J`m h¡ Am¡a n[agån{Îm`m§ (aÔr) H$m (Scraped) is valued at book value. _yë`m§H$Z CZHo$ nwñVH$s` _yë` na {H$`m J`m h¡&

(iv) Am¡Omam| H$m _yë`m§H$Z àmapå^H$ eof (nwñVH$m| Ho$ (iv) Loose tools are valued after writing off AZwgma) 20 à{VeV An{b{IV {H$`o OmZo Ho$ 20% of opening balance (as per books) and those exceeding Rs. 750/- added during ~mX {H$`m J`m h¡ VWm `{X Omo ` 750/- go the year. Loose tools costing Rs. 750/- or A{YH$ hmo Vmo CÝh| df© Ho$ Xm¡amZ OmoS>m J`m h¡& less purchased during the year are df© Ho$ Xm¡amZ ` 750/-d H$_ H$s_V Ho$ IarXo charged to the revenue under respective hþE Am¡Omam| H$mo amOñd ImVm| Ho$ gå~{ÝYV erfm] heads. _| à^m{aV {H$`m J`m h¡&

(v) Z_H$, ~«mo_rZ Ho$ ñQ>m°H$ Ed§ H$m`© àJ{V _| H$m (v) Salt, Bromine stocks and Work in _yë`m§H$Z bmJV ewÕ dgybr `mo½` _yë`, Omo H$_ Progress are valued at cost/Net hmo, na {H$`m J`m h¡& Realisable Value whichever is lower. 1.5 ZH$X Am¡a ZH$X n[aemoYZ 1.5 CASH & CASH EQUIVALENTS ~¡b|g erQ> _| ZH$Xr Am¡a ZH$X g_H$jm| _| ~¢H$ Am¡a hmW Cash and Cash Equivalents in the balance na ZH$X Am¡a AënH$m{bH$ O_m Am¡a 3 _hrZo `m Cggo sheet comprise cash at bank and on hand H$_ H$s _yb n[aŠd Ad{Y em{_b h¡, Omo _yë` _| and short term deposit with and Original Maturity of 3 months or less, which are n[adV©Z Ho$ _hËdhrZ OmopI_ Ho$ AYrZ h¢& subject to an insignificant risk of changes in value. 1.6 Sy>~V Ed§ g§{X½Y ì`mnm[aH$ àm{á`m| Ed§ A{J«_ Ho$ {bE 1.6 P R O V I S I O N F O R B A D A N D àmdYmZ DOUBTFUL TRADE RECEIVABLES AND ADVANCES

3 df© go A{YH$ H$s ~H$m`m ì`mnm[aH$ àm{á`m| Ed§ A{J«_ Trade Receivables and Advances H$m df© Ho$ AÝV _| nwZarjU {H$`m J`m VWm à~ÝYZ Ho$ Outstanding for more than 3 years are reviewed at the close of the year and _VmZwgma ~H$m`m am{e H$s dgybr H$s A{ZpíMVVm Ho$ provision made on case to case basis in _m_bo _| _Xdma àmdYmZ {H$`m J`m h¡& case of uncertainty in the realisation of outstanding amount, in the opinion of the management. 203 1.7 godm{Zd¥{V bm^ 1.7 RETIREMENT BENEFITS

(i) n|eZ (i) Pension Z_H$ {d^mJ go H$ånZr H$s godm _| Am`o hþE Liability with regard to pensionary H$_©Mm[a`m| H$s n|eZ à^ma g§~§Yr Xo`VmE§ charges (Company share) for the staff absorbed in the company from Salt (H$ånZr H$m A§e) no§eZ {Z{Y Ý`mg _| O_m Department is being provided by H$aVo hþ`o àmd{hV H$s Om ahr h¡& H$ånZr _| crediting to Pension fund Trust. The {db` go nyd© H$s Ad{Y H$s n|eZ Ho$ gm§am{eH¥$V commuted value of Pension in respect of _yë` (Z_H$ {d^mJ H$m A§e) H$_©Mmar H$s the period prior to absorption (Salt godm{Zd¥{Îm/_¥Ë`wnam§V Z_H$ {d^mJ go àmá hmoZo Department's share) is accounted for on retirement/death of incumbents, when na boIm~Õ {H$`m OmVm h¡& received from Salt Deptt.

(ii) CnXmZ (ii) Gratuity

CnXmZ H$m à~ÝY EH$ AbJ AIÊS>Zr` Ý`mg Gratuity is administered by a separate Ho$ _mÜ`_ go {H$`m Om ahm h¡, {OgH$m OrdZ irrevocable Trust which has taken a L.I.C. ~r_m {ZJ_ go g_ñV nmÌ H$_©Mm[a`m|, {gdm` Policy covering all the eligible employees AJm[a`mAm|-H$ånZr Ho$ H$m`©Xa (nrg aoQ>) except Agarias - Company's piece-rate l{_H$m| Am¡a nmÌ X¡{ZH$ ^wJVmZ H$m_Jma H$s workers, and eligible daily paid workers in whose case the liability is provided as Xo`VmAm| H$m àmdYmZ CnXmZ A{Y{Z`_, per the payment of Gratuity Act-1972. No 1972 Ho$ AÝV©JV {H$`m J`m h¡, Ho$ {bE H$m`© liability is provided for gratuity in respect nm°{bgr bo aIr h¡& H$ånZr H$s ñWmnZm go nyd© of work charged staff for the period prior H$s Ad{Y Ho$ {bE H$m`© à^m[aV l{_H$m| Ho$ {bE to the formation of the Company. CnmXmZ hVo þ H$mBo © àmdYmZ Zht aIm J`m h&¡ Ý`mg Demands made by the Trust including the Ûmam H$s JB © _mJ§ OrdZ ~r_m {ZJ_ H$s nm{° bgr H$o Annual Renewal Premium of the L.I.C. dm{fH© $s ZdrZrH$aU eëw H$$ g{hV df © H$o 1 Policy after taking 1st October of the year are charged to Statement of Profit & Loss. AŠQ>y~a H$m o [b` o OmZ o H$o níMmV ² g o bm^ Ed § hm{Z {ddaU H$m o à^m[aV {H$`m OmVm h&¡

(iii) AdH$me H$m ZH$XrH$aU (iii) Leave Encashment

boIm df© Ho$ AÝV VH$ ~H$m`m AdH$me Ho$ {bE Liability for leave due upto end of the Xm{`Ëd Bg _mÝ`Vm go CnbãY H$amB© JB© h¡ {H$ accounting year has been provided on the boIm df© H$s g_m{á na Eogo bm^ g^r assumption that such benefits are payable H$_©Mm[a`m| H$mo Xo` hm|Jo& to all employees at the end of the Accounting Year.

204 (iv) ñd¡{ÀN>H$ godm{Zd¥{V `moOZm na {H$`o J`o ì`` (iv) Expenditure incurred on VRS are being H$mo 5 dfmª H$s g_mZ {H$ñVm| _| An{b{IV {H$`m written off in five years in equal Om ahm h¡& instalments. 1.8 ñWm`r n[agån{Îm`m§ Ed ömg 1.8 FIXED ASSETS AND DEPRECIATION

(i) ñWmB© n[agån{Îm`m± gwg§JV AmYma na àmMrZ (i) Fixed Assets are valued at historical cost bmJV na Ed§ Ohm± H$ht bmJy hmo dmng àm{á on consistent basis and are net of `mo½` H$a Ed§ bJmZ H$mo KQ>mZo Ho$ ~mX _yë`m§{H$V refundable taxes and levies wherever H$s JB© h¡& ñWmB© n[agån{Îm`m| Ho$ A{YJ«hU go applicable. All cost relating to acquisition of fixed assets till commissioning of such gå~§{YV g^r bmJV BZ n[agån[Îm`m| Ho$ assets are capitalised. ñWm{nV {H$E OmZo VH$ ny§OrJV H$s JB© h¡&

(ii) ñWm`r n[agån{Îm`mo§ na ömg, An{b{IV _yë` (ii) Depreciation on fixed assets is being nÕ{V go H$ånZr A{Y{Z`_ 2013 H$s provided consistently on written down value method over useful life of assets AZwgyMr II _| {d{Z{X©îQ> n[agån{Îm`m| H$s specified in Schedule II of the Companies Cn`moJ H$s Ad{Y na àdm{hV {H$`m J`m h¡& df© Act 2013. and 100% depreciation has been Ho$ Xm¡amZ _yë` ` 5000/- `m H$_ H$s bmJV provided on the assets costing Rs. 5,000/- H$s gån{Îm A{YJ¥hrV H$aZo na 100% ömg H$m or less acquired during the year. àmdYmZ {H$`m J`m h¡& 1.9 A_yV© g§n{Îm`m± 1.9 INTANGIBLE ASSET (i) INITIAL RECOGNITION AND (i) àma§{^H$ _mÝ`Vm Am¡a _mn MEASUREMENT H$ånZr Ûmam Amdí`H$ A_yV© g§n{Îm`m±, Omo Intangible assets that are required by Cn`moJr OrdZ H$mo n[a^m{fV H$aVr h¢, bmJV the company, which have define na nhMmZr OmVr h¢, ~mX _| _mn H$_ g§{MV useful life, are recognized at cost subsequent measurement is done at A_yV©H$aU Am¡a g§{MV hm{Z Ho$ ZwH$gmZ na cost less accumulated amortization {H$`m OmVm h¡, bmJV _| {H$gr ^r grYo {Oå_oXma and accumulated impairement AmH$pñ_H$ IM© em{_b hmoVo h¢ Omo g§n{Îm H$mo losses, cost includes any directly AnZo BpÀN>V Cn`moJ Ho$ {bE V¡`ma H$aZo Ho$ attributable incidental expenses {bE Amdí`H$ em{_b hmoVo h¢& necessary to make the assets ready for its intended use. (ii) (ii) DERECOGNITION A_yV© g§n{Îm nhMmZ Zht {b`m OmVm h¡ O~ An intangible assets is derecognized BZHo$ Cn`moJ go `m CZHo$ {ZnQ>mao na H$moB© when no future economic benefits ^{dî` _| Am{W©H$ bm^ Cno{jV Zht hmoVm h¡& are expected from their use of upon their disposal. Gains and losses on

205 A_y{V© g§n{Îm`m| Ho$ {H$gr _X Ho$ {ZnQ>mao na disposal of an item of intangible bm^ Am¡a hm{Z A_yV© g§n{Îm`m| Ho$ g§MmbZ Ho$ assets are determine by compairing gmW {ZnQ>mZo go g§gm{YV H$s VwbZm H$aHo$ the processed from disposal with the {ZYm©[aV H$s OmVr h¡ Am¡a bm^ Am¡a hm{Z ImVm| carrying of intangible assets and are Ho$ ~`mZ _| _mÝ`Vm àmá hmoVr h¡& recognized in the statement of profit and loss accounts. (iii) n[aemoYZ (iii) AMORTIZATION A_yV© g§n{Îm Ho$ ê$n _| nhMmZo OmZo dmbo Cost of software recognized as gm°âQ>do`a H$s bmJV H$m Cn`moJ H$aZo Ho$ intangible assets is amortized on straight line method over a period of H$mZyZr A{YH$ma H$s Ad{Y `m 3 gmb Omo H$_ legal right to use of 3 years which h¡, na grYo bmBZ {d{Y na n[aemo{YV h¡& AÝ` ever is less. Other intangible assets A_yV© g§n{Îm`m| H$m Cn`moJ H$aZo Ho$ {bE H$mZyZr are amortized on straight line A{YH$ma H$s Ad{Y `m g§~§{YV g§`§Ì Ho$ OrdZ method over a period of legal right to H$s Ad{Y Ho$ Xm¡amZ grYo bmBZ {d{Y na use of life of the related plant which n[aemo{YV h¡ Omo H$^r ^r H$_ h¡& ever is less.

1.10CYma bmJV 1.10 BORROWING COST : CYma bmJV Omo {H$ `mo½` n[agån{V`m| Ho$ CËnmXZ Borrowing costs that are attributable to {Z_m©U Ed§ A{YJ«hU H$s {deofVm Am{X Eogr acquisition, construction or production of qualifying assets, are capitalised as part of n[agån{Îm`m§ H$s bmJV Ho$ ^mJ Ho$ ê$n _| ny§OrJV h¡& the cost of such assets. A qualifying asset `mo½` n[agån{Îm`m§ Bg àH$ma H$s n[agån{V`m§ h¡ Omo is an asset that necessarily takes a dmñV{dH$ ê$n go A{V àH$ma Cn`moJ Ho$ {bE V¡`ma hmoZo substantial period of time to get ready for _| Amdí`H$ n`m©ßV g_`md{Y boVr h¡& AÝ` g^r CYma intended use. All other borrowing costs bmJV bm^ Ed§ hm{Z {ddaU _| à^m[aV H$s JB© h¡& are charged to the Statement of Profit and Loss.

1.11 ghm`Vm _| AZwXmZ 1.11 GRANT-IN-AID

df© Ho$ Xm¡amZ CnH$a {Z{Y go ghm`Vm _| AZwXmZ Omo {H$ Grant-in-aid received/sanctioned during nyU©/ny§OrJV/{dH$mg H$m`© Ho$ {bE àmá/ ñdrH¥$V hmoVm the year from Cess Fund against h¡, AÝ`Wm d{U©V Zht h¡, Ho$ A{V[aŠV, ny§Or Ama{jV Completed/Capital/Development work is transferred to Capital Reserve Account {Z{Y ImVo _| A§V[aV H$a Xr OmVr h¡, Cg pñW{V _| except as otherwise stated. In that case the Eogr Am[W©H$ ghm`Vm àmßV n[agån{Îm`m| na ömg ny§Or depreciation on such subsidised assets is Ama{jV {Z{Y Ed§ bm^ Ed§ hm{Z {ddaU H$mo àmßV being charged to Capital Reserve and ghm`Vm _| AZwXmZ Am¡a H$ånZr Ûmam dhZ H$s JB© Statement of Profit and Loss in the ratio of bmJV Ho$ AZwnmV _| à^m[aV {H$`m Om ahm h¡& Grant in aid received and cost borne by the Company.

206 1.12 Z_H$ ^ÊS>mam| H$s N>rOV H$m àmdYmZ 1.12 PROVISION FOR WASTAGES ON SALT STOCKS

Z_H$ H$s T>o[a`m| H$m A{Z`{_V AmH$ma hmoZo Ho$ H$maU Physical verification of salt heaps on Z_H$ H$s T>o[a`m| H$m ghr Ed§ {dídeZr` AmYma na accurate and reliable basis is not feasible àË`j gË`mnZ g§^d Zht h¡& {Og df© T>o{a`m§ nyar CR>m because of the irregular shapes of salt heaps. Actual deficit/wastages are br OmVr h¢ Cgr {dÎmr` df© Ho$ boIm| _| dmñV{dH$ adjusted in the accounts of the financial N>rOV/H$_r H$m g_m`moOZ H$a {b`m OmVm h¡& `Ú{n year in which the heaps are finally {dÎmr` df© _| CËnm{XV/ ^ÊS>m[aV Z_H$ na 10 cleared. However, provision for wastages à{VeV H$s Xa go VWm df© Ho$ Xm¡amZ {OZ T>o[a`m| H$mo nyU© @10% of the quantity produced/stored ê$n go Zht CR>m`m J`m h¡ CZ_| df© Ho$ àmapå^H$ during the financial year and @ 5%on the opening stock of the year is made in eof na 5 à{VeV H$s Xa go N>rOV H$m àmdYmZ {H$`m respect of salt heaps not finally cleared OmVm h¡& during the year. 1.13 g§`wŠV _w»`mb` ì`` H$m A{^^mOZ 1.13 APPORTIONMENT OF COMMON CORPORATE OFFICE EXPENSES

(i) {hÝXþñVmZ gmëQ²>g {b{_Q>oS> (YmaH$ H$ånZr) (i) There is a common Chairman & Am¡a gm§^a gmëQ²>g {b{_Q>oS> (ghm`H$ H$ånZr) Managing Director for Hindustan Salts Ltd. (Holding Company) and Sambhar Ho$ {bE AÜ`j Ed§ à~§Y {ZXoeH$ EH$ hr h¢& Salts Ltd (Subsidiary Company). In the nm[al{_H$ {d^mOZ Ho$ g§~§Y _| {Z`wpŠV eVm] _| absence of any specific mention in the H$moB© {d{eîQ> dU©Z Z hmoZo go Bgo XmoZm| H$ån{Z`m| terms of his appointment as regards Ho$ _Ü` H«$_e… 25% d 75% Ho$ AZwnmV _| sharing of the remuneration the same is A{^^m{OV {H$`m J`m h¡& apportioned between the two Companies in the ratio of 25% and 75% respectively.

(ii) àYmZ H$m`m©b` g§`wŠV ì``, ömg Am¡a ã`mO (ii) The Corporate Office common expenses, (AÜ`j Ed§ à~ÝY {ZXoeH$ Ho$ nm[al{_H$ depreciation and interest (including g{hV) Am¡a àm{á`m| H$mo 25% YmaH$ H$ånZr Chairman and Managing Director's remuneration) and receipts have been Ed§ 75% BgH$s ghm`H$ H$ånZr (gm§^a apportioned 25% between the holding gmëQ²>g {b{_Q>oS>) _| {d^m{OV {H$`m J`m h¡& Company and 75% in its subsidiary Company (Sambhar Salts Ltd.). 1.14 nydm©d{Y g_m`moOZ 1.14 PRIOR PERIOD ADJUSTMENTS Mmby boIm df© go nyd© H$s Ad{Y go g§~§{YV gm¡Xm| Ho$ In respect of the transactions pertaining to g§~§Y _| H$ånZr boIm _mZH$m| Ho$ AZwê$n à{H«$`m the period prior to the current accounting AnZmVr h¡& year, the Company follows the practice in the conformity with the Accounting Standards. 207 1.15 AZwg§YmZ Ed§ {dH$mg 1.15 RESEARCH AND DEVELOPMENT AZwg§YmZ Ed§ {dH$mg bmJV (A{O©V ñWm`r Research and development cost (other n[agån{V`m | H$s bmJV H$o Abmdm) df © H$o ì`` H$o ê$n _ | than cost of fixed Assets acquired) are {Og df © _ | ì`` {H$` o OmV o h,¢ à^m[aV H$a {X` o OmV o h&¢ charged as an expense in the year in which they are incurred.

1.16 H$amamonU 1.16 TAXATION

(i) Mmby Am` H$a H$m {ZYm©aU Am`H$a A{Y{Z`_ (i) Current Income Tax is determined on the 1961 Ho$ àmdYmZm| Ho$ AZwgma H$a `mo½` Am` basis of taxable income computed in accordance with the provision of the H$s JUZm Ho$ AmYma na {H$`m OmVm h¡& Income Tax Act, 1961.

(ii) AmñW{JV H$a, H$a `mo½` Ed§ boIr` Am`/ì`` (ii) Deferred tax is recognised on timing _| g_`md{Y AÝVa na hmoVo h¢& Ad{Y _| hþE differences between taxable and ì`` Omo EH$ Ad{Y _| hmoVo h¢ VWm AmJo H$s EH$ accounting income/expenditure that originates in one period and are capable `m A{YH$ Ad{Y`m| _| n[adV©Z `mo½` Ho$ of reversal in one or more subsequent gm_{`H$ AÝVa Ho$ AmYma na _mZo OmVo h¢& period (s). Deferred Tax Asset is ñW{JV H$a ny§Or, `w{ŠV`wŠV/Ag§{X½Y Ho$ ~mao recognised on the basis of virtual/ _| dmñV{dH$Vm Ho$ AmYma na _mÝ` hmoZo na bmJy reasonable certainty about its realisability h¡& as applicable. 1.17 àmdYmZ, AmH${ñ_H$ Xo`VmE§ d AmH${ñ_H$ gån{V`m§ 1.17 P R O V I S I O N S , C O N T I N G E N T LIABILITIES AND CONTINGENT ASSETS

AZw_mZ Ed§ _mn H$s n`m©ßV _mÌ Ho$ àmdYmZ _| nyd© Provisions involving substantial degree KQ>ZmAm| Ho$ n[aUm_ Ho$ ê$n _| dV©_mZ à^md Ed§ gmYZm| of estimation and measurement are Ho$ ~mø àdmh H$s g§^mdZm {Z{hV h¡& {dÎmr` {ddaUm| _| recognised when there is present obligation as a result of past events and it AmH${ñ_H$ n[agån{Îm`m| H$mo Z Vmo {MpÝhV Am¡a Z hr is probable that there will be an outflow of Xem©`m J`m h¡& AmH${ñ_H$ Xo`mVmAm| `{X _hËdnyU© hmo, resources. Contingent Assets are neither H$mo {Q>ßnUr Ho$ ê$n _| Xem©`m J`m h¡& recognised nor disclosed in the financial statements. Contingent liabilities, if material, are disclosed by way of notes.

1.18 amoH$‹S> àdmh {ddaU 1.18 CASH FLOW STATEMENT amoH$‹S> àdmh {ddaU na boIm _mZH$ (EEg-3) _| Cash Flow Statement is prepared in Xem©`m J`m ""amoH$‹S> àdmh {ddaU'' AàË`j nÕ{V Ho$ accordance with the indirect method AZwgma V¡`ma {H$`m J`m h¡&

208 prescribed in Accounting Standard on 'Cash Flow Statement"(AS-3). 1.19 n[agån{Îm`m| _| j{V 1.19 IMPAIRMENT OF ASSETS n[agån{V`m| H$s bmB© JB© am{e H$s àË`oH$ {dÎmr` {ñW{V The carrying amounts of assets are {ddaU H$s VmarI na g_rjm H$s JB© h¡& `{X H$ht reviewed at each Balance Sheet date. In case there is any indication of impairment AmÝV[aH$ `m ~mø H$maUm| go n[agån{V`m| _| H$_r B§{JV based on Internal / External factors, an hmoVr h¡ Vmo Bg hm{Z H$mo Ohm§ H$ht n[agån{Îm`m| H$m impairment loss is recognized wherever bm`m J`m _yë` BZH$s dgybr `mo½` am{e go A{YH$ Ho$ the carrying amount of an asset exceeds ê$n _| ñdrH$m`© {H$`m OmVm h¡& its recoverable amount. 1.20 AmñW{JV amOñd ì`` H$m AnboIZ 1.20 WRITE OFF OF DEFFERED REVENUE EXPENDITURE

àM{bV Aä`mg Ho$ AZwgma AmñW{JV amOñd ì`` As per practice in vogue, the deferred revenue expenditure is being written off nm§M g_mZ {H$ñVm| _| {Og df© _| hmoVo h¡, An{b{IV in five equal annual instalments {H$`o OmZo h¡& beginning from the year in which such expenditure are incurred.

1.21 àma§{^H$ Am¡a n[a`moOZm ì`` 1.21 PRELIMINARY AND PROJECT EXPENDITURE

n[a`moOZm na {H$`m J`m ì`` J¡a Mmby n[agån{Îm`m| Ho$ Expenditure incurred on project is shown ê$n _| Xem©`m J`m h¡ Ed§ Cgo à~ÝYZ Ûmam {bE JE as other non-current assets and will be charged/capitalized in the year in which {ZU©` Ho$ AZwgma n[a`moOZm H$mo Mmby hmoZo Ho$ df© _| it is decided by the management to à^m{dV/ny§OrJV {H$`m OmVm h¡; AÝ`Wm `{X à~ÝYZ implement the project. Otherwise, in case, Ûmam n[a`moOZm H$mo ~ÝX H$aZo/bmJy Z H$aZo H$m {ZU©` the management decides not to {b`m OmVm h¡ Vmo Eogr n[a`moOZm go g§~§{YV ì`` Cg implement/close the project, expenditure df© Ho$ {Og_| Eogm {ZU©` {b`m J`m h¡, bm^ hm{Z on such project is charged to the Statement of Profit & Loss for the year in {ddaU _| à^m{dV {H$`m OmVm h¡& which such decision is taken.

209 31 _mM©, 2018 H$mo g_má df© Ho$ {dÎmr` {ddaUm| na {Q>ßn{U`m§ Notes on Financial Statements for the Year ended 31st March, 2018

(` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-2 : A§e ny§Or H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE-2 : SHARE CAPITAL Figures as on Figures as on 31-03-2018 31-03-2017 A{YH¥$V/Authorised

àË`oH$ ` 1000/- Ho$ 6,00,000 g_Vm A§e ({nN>bo df© 5,00,000 g_Vm A§e) 6,00,000 Equity Share (Previous year 6,000.00 5,000.00 5,00,000 Equity Shares) of ` 1000/- each

6,000.00 5,000.00 {ZJ©{_V, A{^XV Ed§ àXÎm Issued, Subscribed and Paid up 5,205.96 4,205.96

àË`oH$ ` 1000/- Ho$ nyU© àXÎm 520596 g_Vm A§e (JV df© 420596 g_Vm A§e) (Cn`©wŠV A§em| _| go 15,461 A§e ZH$X _| ^wJVmZ àmá {H$`o {~Zm Amd§{Q>V) 520596 Equity Share (Previous year 420596 Equity Shares) of ` 1000/- each fully paid up (Out of above shares, 15,461 fully paid up shares allotted without payment being received in cash)

5,205.96 4,205.96

210 {Q>ßnUr-2.1 … 5% A§em| go A{YH$ A§e YmaH$m| H$m 31.03.2018 31.03.2017 {ddaU H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 2.1 : DETAILS OF SHAREHOLDERS Figures as on Figures as on HOLDING MORE THAN 5% SHARES: 31-03-2018 31-03-2017 Ym[aV A§em| H$s g§»`m YmaUm H$m à{VeV Ym[aV A§em| H$s g§»`m YmaUm H$m à{VeV No. of No. of Shares Held % of Holding Shares Held % of Holding ^maV Ho$ _hm_{h_ amîQ´>n{V Hon'ble President of India 5,20,596 100% 4,20,596 100%

(` bmI _|) (` In Lakh) {Q>ßnUr-2.2 … df© Ho$ Xm¡amZ ~H$m`m A§em| H$s g§»`m H$m {ddaU 31.03.2018 31.03.2017 NOTE - 2.2 : DETAILS OF NUMBER OF SHARES H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on OUTSTANDING DURING THE YEAR 31-03-2018 31-03-2017 A§em| H$s g§»`m am[e A§emo H$s g§»`m am{e Number of Amount Number of Amount Shares Shares df© Ho$ àmaå^ _| ~H$m`m A§e Shares outstanding at the beginning of the year 4,20,596 4,205.96 3,78,796 3,787.96 df© Ho$ Xm¡amZ {ZJ©{_V A§e Shares Issued during the year 1,00,000 1000 41,800 418 df© Ho$ Xm¡amZ nwZ… H«$` {H$E JE A§e Shares bought back during the year - - - - df© Ho$ A§V _| ~H$m`m A§e Shares outstanding at the end of the year 5,20,596 5205.96 4,20,596 4,205.96

211 (` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-3 … Ama{jV Ed§ Am{YŠ` H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 3 : RESERVES & SURPLUS Figures as on Figures as on 31-03-2018 31-03-2017

ny§OrJV g§M`/Capital Reserve JV {dÎmr` pñW{V {ddaU Ho$ AZwgma As per the last Balance Sheet 1,026.29 1,026.30 df© Ho$ Xm¡amZ d¥{Õ Addition during the year - - KQ>mB`o…- df© Ho$ Xm¡amZ (ömg) g_m`mo{OV Less: Adjusted During the year (Depreciation) 0.00 0.01 `moJ (E)/Total (A) 1,026.29 1,026.29 bm^ Ed§ hm{Z {ddaU _| Am{YŠ` Surplus in Statement of Profit & Loss JV {dÎmr` pñW{V {ddaU Ho$ AZwgma As per the last Balance Sheet (1,637.78) (1,678.20) Omo{S>`o…- df© Ho$ Xm¡amZ bm^/(hm{Z) Add:- Profit/(Loss) during the year 183.55 40.42 `moJ (~r)/Total (B) (1,454.23) (1,637.78) `moJ (E+~r)/Total (A+B) (427.94) (611.49)

(i) ` 1454.23 bmI (JV df© ` 1,637.78 bmI) g§M`r hm{Z`m| Ho$ _ÔoZOa H$ånZr Ûmam df© Ho$ Xm¡amZ H$moB© bm^m§e H$s KmofUm Zht H$s JB© h¡& In view of cumulative losses amounting to ` 1454.23 lakh (Previous Year ` 1,637.78lakh), no dividend has been declared during the year by the Company.

(ii) ` 4,490.12 bmI (JV df© ` 4,232.01 bmI) H$s g§M`r hm{Z`m| Ho$ _ÔoZOa ghm`H$ H$ånZr, gm§^a gmëQ²>g {b{_Q>oS> Zo H$moB© bm^m§e H$s KmofUm Zht H$s h¡& In view of cumulative losses amounting to ` 4,490.12 lakh (Previous Year ` 4232.01 lakh), no dividend has been declared by the Subsidiary Company, Sambhar Salts Limited.

212 (` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-4 … XrKm©d{Y G$U H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 4 : LONG TERM BORROWINGS Figures as on Figures as on 31-03-2018 31-03-2017

Agwa{jV/UN-SECURED ^maV gaH$ma, ^mar CÚmoJ _§Ìmb` go G$U Loans from Govt. of India, Ministry of Heavy Industry 280 65 G$Um| na Cnm{O©V d ~H$m`m ã`mO Interest Accrued & due on Loans - - 280 65

^maV gaH$ma go G$U d Cg na Cnm{O©V d ~H$m`m ã`mO nwpîQ> d {_bmZ Ho$ AYrZ h¡& Loan from Government of India and Interest accrued and due on loans are subject to reconciliations.

(` bmI _|) (` In Lakh) {Q>ßnUr-4.1 … gaH$mar G$U H$m {ddaU (5 dm{f©H$ {H$ñVm| _| ^wJVmZ `mo½`) NOTE - 4.1 : DETAILS OF GOVERNMENT LOAN (PAYABLE IN 5 YEARLY INSTALLMENT) G$U am{e ã`mO H$s gm_Ý` Xa XÊS> ñdê$n ã`mO H«$.g§. Loan Amount Mmby df© JV df© (à{VeV) H$s Xa (à{VeV) S.No. Current Previous Normal Rate Of Penal Rate Of Year Year Interest (%) Interest (%) 1 150.00 150.00 11.50 14.25 2 678.50 678.50 12.50 15.25 3 37.79 37.79 15.50 18.25 4 75.00 75.00 13.50 16.00 5 300.00 300.00 11.50 14.00 `moJ/Total 1241.29 1241.29 KQ>mB`o…- A{VemoÜ` Mmby n[anŠdVm Less: Overdue Current Maturities 961.29 1176.29 eof XrKm©d{Y G$U Balance Long Term Debts 280 65

213 (` bmI _|) (` In Lakh) {Q>ßnUr-5 … XrKm©d{Y àmdYmZ 31.03.2018 31.03.2017 NOTE - 5 : LONG TERM PROVISIONS H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017

S>rgrAmaOr Ho$ {bE/For D C R G df© Ho$ àmaå^ _| eof/Balance at the beginning of the year 277.07 335.41 Omo{‹S>E… df© Ho$ {bE àmdYmZ/Add: Provision for the year 5.15 20.10 KQ>mBò… df© Ho$ Xm¡amZ ^wJVmZ/Less: Payment during the year 54.49 78.44 `moJ(E)/Total (A) 227.73 277.07 AdH$me Ho$ ZH$XrH$aU Ho$ {bE/For Encashment of leave df© Ho$ àmaå^ _| eof/Balance at the beginning of the year 133.30 145.19 Omo{‹S>E… df© Ho$ {bE àmdYmZ/Add: Provision for the year 40.80 19.01 KQ>mBò… df© Ho$ Xm¡amZ ^wJVmZ/g_m`moOZ Less: Payments/Adjustments during the year 47.43 30.90 `moJ (~r)/Total (B) 126.67 133.30 Z_H$ Ho$ ñQ>m°H$ H$s N>rOV Ho$ {bE/For Wastage of Stock of Salt df© Ho$ àmaå^ _| eof/Balance at the beginning of the year 10.01 11.27 Omo{‹S>E… df© Ho$ {bE àmdYmZ/Add: Provision for the year 1.85 4.97 11.86 16.24 KQ>mBò… df© Ho$ Xm¡amZ ‹T>oa H$s A§{V_ {ZH$mgr na N>rOV Less: Wastage on Final Clearance of heaps during the year 4.20 6.23 7.66 10.01 H$moÝQ´>m Ho$ AZwgma ì`mnma _| ñQ>m°H$ KQ>m`m J`m& Deducted from Stock in Trade as per Contra 7.66 10.01 `moJ (gr)/Total (C) - - `moJ (E+~r+gr)/Total (A+B+C) 354.40 410.37 df© Ho$ Xm¡amZ boIm _mZH$ g§»`m-15 _| dm§{N>V CnXmZ Xm{`Ëd H$mo H$ånZr Zo dmñV{dH$ AmYma na àmdYmZ Zht [H$`m h¡& The Company has not provided gratuity liability on the basis of actuarial valuation as is required in terms of Accounting Standard No. 15.

214 (` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-6 … Aënmd{Y G$U H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 6 : SHORT TERM BORROWINGS Figures as on Figures as on 31-03-2018 31-03-2017

gwa{jV/SECURED

Amoda S´>mâQ> ImVm/Overdraft Account ñQ>oQ> ~¢H$ Am°\$ ~rH$mZoa EÊS> O`nwa State Bank of Bikaner & Jaipur - - ` eyÝ` bmI H$s E\$.S>r.Ama. Ho$ ~§YH$ Ûmam gwa{jV (JV df© ` eyÝ` bmI) Secured by pledge of FDR of ` NIL Lakh (P.Y. ` NIL Lakh)

ñQ>oQ> ~¢H$ Am°\$ BpÊS>`m/State Bank of India 29.15 28.11 ` 76.89 bmI H$s E\$.S>r.Ama. Ho$ ~§YH$ Ûmam gwa{jV (JV df© ` 85.99 bmI) Secured by pledge of FDR of ` 76.89 Lakh (P.Y. ` 85.99 Lakh)

ZH$X O_m ImVm/Cash Credit Account ñQ>oQ> ~¢H$ Am°\$ ~rH$mZoa EÊS> O`nwa State Bank of Bikaner & Jaipur 4.67 52.36 (nwñVH$s` XoZXmar Ed§ ñQ>m°H$ H$s {Jadr Ûmam) (Secured by hypothecation of Stock and Book debts) `moJ/Total 33.82 80.47

215 31.03.2018 31.03.2017 {Q>ßnUr-6.1 … gwa{jV G$U H$m {ddaU H$mo Am§H$‹So| H$mo Am§H$‹S| NOTE - 6.1 : DETAILS OF SECURED BORROWINGS Figures as on Figures as on 31-03-2018 31-03-2017 am{e ã`mO Xa am{e ã`mO Xa H«$.g§. ~¡¢H$ H$m Zm_ (` bmIm| _|) (à{VeV) (` bmIm| _|) (à{VeV) S.No. NAME OF BANK Amount Interest Rate Amount Interest Rate (` In Lakh) (%) (` In Lakh) (%) A{X{dH$f© ImVm OVERDRAFT ACCOUNT 1 ñQ>oQ> ~¢H$ Am°\$ BpÊS>`m (Oo.Eb.EZ. _mJ©) State Bank of India (JLN Marg) - - - -

2 ñQ>oQ> ~¢H$ Am°\$ BpÊS>`m State Bank of India 29.15 7.90 28.11 7.90 ZH$X O_m ImVm CASH CREDIT ACCOUNT 3 ñQ>oQ> ~¢H$ Am°\$ BpÊS>`m (Eg.E_.Eg. hmBdo) grgr State Bank of India (SMS Highway) CC 4.67 9.65 52.36 12.30

(` bmI _|) (` In Lakh) {Q>ßnUr-7 … ì`mnma Xo`VmE§ 31.03.2018 31.03.2017 NOTE - 7 : TRADE PAYABLES H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017 Amny{V© {H$`o _mb Ho$ {bE {d{dY boZXma Sundry Creditors for Goods Supplied 212.34 213.83 `moJ/Total 212.34 213.83

(i) H$ånZr Zo gyú_, bKw Ed§ _Ü`_ EÝQ>aàmBOoO S>dbn_oÝQ> EŠQ> 2006 Ho$ VhV Amny{V©H$Vm©Am| go CZHo$ ñVa Ho$ ~mao _| Amdí`H$ gyMZm àmá Zht H$s h¡& H${WV A{Y{Z`_ Ho$ VhV df© Ho$ A§V _| BZH$s AXo` am{e, ã`mO Ho$ gmW/ã`mO Xo` Ho$ ~mao _| `{X H$moB© hmo, H$WZ Zht {H$`m J`m h¡& The company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been made. (ii) Amny{V© H$Îmm©Am| go CZHo$ E_.Eg.E_.B©. BH$mB© Ho$ ñVa Ho$ ~mao _| n`m©á gyMZm Ho$ A^md _| Eogr CnH«$_m| Ho$ ~H$m`m {ZYm©[aV Zht {H$`o Om gH$Vo& In view of insufficient information from the suppliers regarding their status as MSME Unit, amount overdue to such undertaking cannot be ascertained.

216 (` bmI _|) (` In Lakh) {Q>ßnUr-8 … AÝ` Mmby Xm{`Ëd 31.03.2018 31.03.2017 NOTE -8 : OTHER CURRENT LIABILITIES H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017 XrKm©d{Y G$Um| H$s Mmby n[anŠdVm Current Maturities of Long Term Debts ^maV gaH$ma go G$U (A{VemoÜ` am{e g{hV) Loan from Govt. of India (Including overdue amount) 961.29 1,176.29 G$U na Cnm{O©V Ed§ Xo` ã`mO Interest Accrued and Due on Borrowing ^maV gaH$ma go G$U na Xo` ã`mO Interest due on Loan from Govt. of India 1,562.34 1,905.11 Cg _yë` Ho$ ^mJ Ho$ {bE A{J«_ àm{á`m± Omo A^r {X`m OmZm h¡ Advance receipts for the portion for which value is still to be given 49.22 60.18 gaH$mar {d^mJ H$mo Xo` ~H$m`m Dues Payable to Govt. Departments 25.14 13.53 AÝ` ^wJVmZ `mo½`/Other Payable IMm] Ho$ {bE Xm{`Ëd/Liabilities for Expenses 220.94 206.59 d¡Ym{ZH$ Xm{`Ëd/Statutory Liabilities 27.98 33.66 AÝ` Xm{`Ëd/Other Liabilities à{V^y{V O_m/Security Deposits 157.16 156.57 AÝ`/Others 35.47 22.26 `moJ/Total 3,039.54 3,574.19

(` bmI _|) (` In Lakh) {Q>ßnUr-8.1 … MyH$ H$s Ad{Y Ed§ am{e 31.03.2018 31.03.2017 NOTE -8.1 : AMOUNT AND PERIODS OF DEFAULTS H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017 CŠV Ho$ gå~§Y _| G$U Ed§ ã`mO Ho$ nwZ©^wJVmZ _| pñW{V {ddaU H$s {XZm§H$ na {ZaÝVa MyH$ hmoZo na … In case of Continuing default as on the balance sheet date in repayment of loans and interest with respect to above: 1 go 11 df© 1 go 10 df© 1. MyH$ H$s Ad{Y/Period of Default 1 to 11 Years 1 to 10 Years 2. MyH$ H$s am{e/Amount of Default 2523.63 3,081.40 ^maV gaH$ma go G$U Ed§ Cg na Cnm{O©V d ~H$m`m ã`mO nwpîQ> Ed§ {_bmZ Ho$ AYrZ h¡&/Loan from Government of India and Interest accrued and due on loans subject to confirmation and reconciliations. 217 (` bmI _|) (` In Lakh) {Q>ßnUr-8.2 … gaH$mar G$U H$m {ddaU (5 dm{f©H$ {H$íVm| _| Xo`) NOTE - 8.2 : DETAILS OF GOVERNMENT LOAN (PAYABLE IN 5 YEARLY INSTALLMENT)

Mmby df© JV df© ã`mO H$s gm_mÝ` Xa XÊS> ñdê$n ã`mO H«$.g§. Loan Amount Current Previous (à{VeV) H$s Xa (à{VeV) S.No. Year Year Normal Rate Of Penal Rate Of Interest (%) Interest (%) 1 150.00 150.00 11.50 14.25 2 678.50 678.50 12.50 15.25 3 37.79 37.79 15.50 18.25 4 75.00 75.00 13.50 16.00 5 300.00 300.00 11.50 14.00 `moJ/Total 1,241.29 1,241.29 KQ>mB`o… XrKm©d{Y G$U Less : Long Term Debts 280 65.00 A{VemoÜ` Mmby n[anŠdVm H$m eof Balance Overdue Current Maturities 961.29 1,176.29

(i) _ÊS>r _| gmoë`yeZ IZZ n[a`moOZm-{h_mMb àXoe H$s gaH$ma Ho$ gmW hþE g_Pm¡Vo Ho$ AZwgma {h_mMb àXoe gaH$ma H$mo ` 43.55 bmI H$s am{e BpŠdQ>r Ho$ ê$n _| gmoë`yeZ _mBqZJ gh-H$mpñQ>H$ gmoS>m n[a`moOZm Ho$ {bE ZB© H$ånZr hoVw {h_mMb àXoe gaH$ma Ûmam ^y{_ Ed§ _yb^yV T>m±Mo Ho$ {dH$mg hoVw CnbãY H$amB© OmEJr& `Ú{n H$ånZr Ûmam ` 43.55 bmI H$s Xo`Vm àmd{hV Zht H$s JB© Š`m|{H$ Xo`Vm Ho$db ZB© H$ånZr Ho$ JR>Z na CËnÞ hmoJr& At Mandi Solution Mining Project- The amount of ` 43.55 lakh will be provided to Government of Himachal Pradesh as equity of new company for Solution Mining-cum-Caustic Soda Project on account of development of land and infrastructure by H.P. Govt. as per settlement with the Govt. of H.P. However, the Company has not provided any liability for ` 43.55 lakh since the liability will arise only at the time of formation of New Company. (ii) H$ånZr Zo CÎma nyd© aoëdo go am_ZJa _| ` 33,506 Ed§ g{d©g Q>¡Šg à{Vdf© H$s bmBg¢g ewëH$ na ^y{_ br h¡& aoëdo Zo Bg ^y{_ Ho$ g§~§Y _| bmBg¢g \$sg H$m g_`-g_` na nwZarjU {H$`m h¡ Am¡a dV©_mZ _| `h ewëH$ ` 5,40,440 à{Vdf© h¡& H$ånZr Zo Bg nwZarjU Ho$ {Ibm\$ à{VdoXZ àñVwV H$a ` 33,506 Ed§ g{d©g Q>¡Šg à{V df© Ho$ _yb Xa H$mo bmBg¢g ewëH$ aIZo na Omoa {X`m h¡& àH$aU Ho$ b§{~V ahZo Ho$ Xm¡amZ AÝVa H$s am{e ` 28.06 bmI (JV df© ` 21.52 bmI) H$m àmdYmZ Zht {H$`m h¡ {Og_| ` 2.67 bmI (JV df© ` 2.02 bmI) {bpŠdS>oQ>oS> hOm©Zm em{_b h¡ Am¡a df© 1995-96 Ho$ Xm¡amZ MwH$mE JE ` 2.73 bmI H$mo aoëdo go boZm Xem©`m J`m h¡& The Company had taken land at Ramnagar on licence fee of ` 33,506 plus service tax per year from N.E. Railway. The Railway has revised the rate of license fee in respect of this land from time to time and at present the rate is ` 5,40,440 /- per annum. The Company has represented against this revision and has insisted for keeping the license fee at the original rate of Rs. 33,506 plus service tax- per year. Pending decision of the case, no provision for the differential amount of ` 28.06 lakhs (previous year 21.52 lakhs) including liquidated damages of ` 2.67 lakhs (Previous Year 2.02 lakhs) has been made by the Company and a sum of ` 2.73 lakhs paid during the year 1995-96 has been shown as due from Railways. (iii) df© Ho$ Xm¡amZ H§$nZr Zo ^mar CÚmoJ Am¡a gmd©O{ZH$ CÚ_ _§Ìmb`, gaH$ma Ho$ gmW ImVo H$s {H$Vm~m| _| 31.03.2018 H$mo gaH$mar F$U na F$U Am¡a ã`mO H$s am{e H$m nwZJ©R>Z {H$`m h¡& gaH$ma go gwbh Am¡a nw{ï> Ho$ AmYma na ^maV H$m& ^maV Ho$ bm^ Am¡a hm{Z ImVm| Ho$ ~`mZ Ho$ {bE bJmE JE A{V[aº$ ã`mO H$s am{e {nN>bo df© é& gmb Ho$ {bE bm^ Am¡a hm{Z ImVo Ho$ ~`mZ _| AgmYmaU Ho$ ê$n _| 693.12 bmI dmng {bIm J`m h¡& During the year the company has reconcited the amount of loan and interest on government loan due as on 31.03.2018 in the books of account with the ministry of heavy industry and public enterprises, Govt. of india on the basis of reconciliation and confirmation from govt. of India the amount of excess interest charged to statement of profit & loss accounts earlier year amounting Rs. 693.12 lakh is written back as exceptional Items in the statement of profit and loss account for the year. 218

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219 {Q>ßnUr-9 (Omar)/NOTE-9 (Contd.) ^y{_ H$m {ddaU {ZåZmZwgma/The details of Land as under:- (` bmI _|)/(` In Lakh) O`nwa/JAIPUR ImamKmo‹S>m/KHARAGHODA _ÊS>r/MANDI am_ZJa/RAMNAGAR _yë` _yë` _yë` _yë` joÌ/AREA VALUE joÌ/AREA VALUE joÌ/AREA VALUE joÌ/AREA VALUE 1. nyU© ñdm{_Ëd dmbr ^y{_ - - 23596 EH$S> 24.54 7 0 2 . 7 5 d J © _rQ>a 37.92 - - Free Hold Land Acres /Sq. Mtr. 2. nQ²>Q>o na ^y{_ 2048 dJ© _rQ>a/ 5.53 - - 133.116 EH$‹S> - 4712.61 dJ© _rQ>a/ - Leased Hold Land Sq. Mtr. /Acres Sq. Mtr. (bmBg|g \$sg na)(On licence Fee) (` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-10 … J¡a Mmby {Zdoe H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 10 : Non current investments Figures as on Figures as on 31-03-2018 31-03-2017 ì`mnm[aH$ {Zdeo H$o A{V[aŠV/OTHER THAN TRADE INVESTMENTS AZwÕV (bmJV na)/UN-QUOTED (AT COST) ghm`H$ H$ånZr gm§â gmëQ²>g {b{_Q>oS> _| ` 1000/- àËòH$ Ho$ 6000/- (JV df© 6000 g_Vm A§e) nyU© àXV g_Vm A§e Investment in subsidiary company, Sambhar Salts Limited 6000 Eq. Shares (Previous Year 6000 Eq. Share) of ` 1000/- each, fully paid up 60.00 60.00 `moJ/Total 60.00 60.00 ghm`H$ H$ånZr Ho$ A{YH$ CÀM ewÕ _yë` {OgH$s ~mOma _yë` Ho$ AZwgma JUZm H$s JB© h¡ Am¡a Omo df© 2001 _| g{Q>©\$mBS> _yë`m§H$H$ Ûmam H$s JB© h¡ Ho$ _ÔoZOa ghm`H$ H$ånZr gm§â gmëQ²>g {b{_Q>oS> _| {H$E Jò ` 60.00 bmI Ho$ {d{Z`moOZ Ho$ gå~ÝY _| hm{Z`m| Ho$ {bE àmdYmZ Zht {H$`m J`m h¡&/No provision for loss has been made in respect of the investment of ` 60.00 Lakh made in subsidiary company, Sambhar Salts Ltd. in the Book of Accounts in view of much higher net worth of the Subsidiary Company calculated on the basis of the market value of Fixed Assets which was last assessed by the Certified Assets value in the year 2001. (` bmI _|) (` In Lakh) {Q>ßnUr-10.1 … AÝ` {Zdoem| H$m {ddaU NOTE - 10.1 : Details of Other Investments ghm`H$/gh`moJr/ A§em|/`y{ZQ²>g CÕV/ A§ímV… àXÎm& YmaUm H$s am{e Š`m bmJV na `{X H$m°b_ (9) H«$. H$m°nm}aoQ g§ñWm> Oodr/H$ÝQ´>moëS> H$s g§»`m AZwÕV nyU©V… àXÎm gr_m (à{VeV) Amount Xem©`r h¡ H$m CÎma Zht h¡ EpÝQ>Q>r/AÝ` hm±/Zht Vmo _yë`m§H$Z g§. H$m Zm_ No. of Quoted/ Partly Paid/ Extent of Subsidiary/ Shares/ Unquoted Fully paid Holding(%) Whether H$m AmYma S. Name of Associate Units stated at If Answer to No. the Body JV/Controlled Cost Yes/No Column (9) is 'No'- Basis of Corporate Entity/Others Valuation 2018 2017 2018 2017 2018 2017 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (A) gm§â gmëQ²>g ghm`H$ AZwÕV nyU©V… àXÎm hm± bmJy Zht (a) {b{_Q>oS> Subsidiary 6000 6000 Unquoted Fully 60% 60% 60.00 60.00 Yes N.A. Paid Up SAMBHAR SALTS LIMITED

`moJ/Total 6000 6000 60.00 60.00 220 (` bmI _|) (` In Lakh) {Q>ßnUr-11 … XrKm©d{Y G$U Ed§ A{J«_ 31.03.2018 31.03.2017 NOTE - 11 : LONG TERM LOANS AND ADVANCES H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017

à{V^y{V O_m/Security Deposits gwa{jV, AÀN>o g_Po Jò Secured, considered good - - Agwa{jV, AÀN>o g_Po Jò Unsecured, considered good 39.42 38.59 g§{X½Y Doubtful - - KQ>mBò… g§{X½Y G$U Ed§ A{J«_ Ho$ {bE àmdYmZ Less: Provision for doubtful Loans and Advances - - `moJ (E)/Total (A) 39.42 38.59 AÝ` G$U Ed§ A{J«_ Other Loans and Advances gwa{jV, AÀN>o g_Po Jò/Secured, considered good - - Agwa{jV, AÀN>o g_Po Jò (XoI| {Q>ßnUr 11.1)/ Unsecured, considered good (Refer Note 11.1) 760.00 1,000.00 g§{X½Y/Doubtful - - KQ>mBò… g§{X½Y G$U Ed§ A{J«_ Ho$ {bE àmdYmZ Less: Provision for doubtful Loans and Advances - - `moJ (~r)/Total (B) 760.00 1,000.00 `moJ (E+~r)/Total (A+B) 799.42 1,038.59 (` bmI _|) (` In Lakh) {Q>ßnUr-11.1 … AÝ` XrKm©d{Y G$U Ed§ A{J«_ 31.03.2018 31.03.2017 NOTE - 11.1 : Other Long Term Loans & Advances H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017 ghm`H$ H$ånZr H$mo G$U Ed§ A{J«_ Loans and Advances to Subsidiary Co. ghm`H$ H$ånZr (gm§â gmëQ>²g {b.) H$mo G$U Loan to Subsidiary Co. (Sambhar Salts Ltd.) 760.00 1,000.00 `moJ/Total 760.00 1,000.00 221 (` bmI _|) (` In Lakh) {Q>ßnUr-12 … AÝ` J¡a Mmby n[agån{Îm`m§ 31.03.2018 31.03.2017 NOTE - 12 : OTHER NON-CURRENT ASSETS H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017 AmñW{JV amOñd ì`` (Ohm± VH$ An{b{IV Zht {H$E JE) Deferred Revenue Expenditure (to the extent not written off) A§e nyOr _| d¥{Õ Ho$ {bE {H$E JE ì`` Expenses incurred for increasing the share capital - - {~Q>Z© [aOadmà H$s g\$mB© Desilting of Bittern Reservoir - 4.21 ñdopÀN>H$ godm{Zd¥{Îm `moOZm na ì`` Expenditure of V.R.S. - - àmapå^H$ Ed§ n[a`moOZm ì`` Preliminary and Project Expenditure n[a`moOZm ì`` H$m {d^mOZ/ny§OrH$aU bpå~V Project expenditure Pending Allocation/Capitalisation 200.88 200.88 `moJ/Total 200.88 205.09

{Q>ßnUr-12.1 … àmapå^H$ Ed§ n[a`moOZm ì`` NOTE - 12.1 : PRELIMINARY & PROJECTS EXPENDITURE

H$ånZr Zo ZB© n[a`moOZm H$s {dñV¥V n[a`moOZm [anmoQ>© (S>rnrAma) ~ZmZo VWm àmapå^H$ Ed§ n[a`moOZm go g§~§{YV IM} na ` 200.88 bmI (JV df© ` 200.88 bmI) ì`` {H$E {OÝh| J¡a Mmby n[agån{Îm _| àmapå^H$ Ed§ n[a`moOZm ì`` Ho$ ê$n _| Xem©`m J`m h¡ VWm Cgo à~ÝYZ Ûmam {bE JE {ZU©` Ho$ AZwgma n[a`moOZm Ho$ Mmby hmoZo Ho$ df© _| à^m{dV/ny±OrJV {H$`m OmEJm AÝ`Wm `{X à~ÝYZ Ûmam n[a`moOZm Ho$ ~ÝX H$aZo/bmJy Z H$aZo H$m {ZU©` {H$`m OmVm h¡ Vmo Eogr n[a`moOZm go g§~§{YV ì`` Cg df© Ho$ {Og_| Eogm {ZU©` {H$`m OmVm h¡, Ho$ bm^ hm{Z {ddaU _| à^m{dV {H$`m OmVm h¡& The Company has incurred total expenditure of ` 200.88 lakh (Previous Year ` 200.88lakh) on the preparation of Detailed Project Report (DPR) and other preliminary and project related expenditure on new projects (Detailed Below) and shown under preliminary and project expenditure under other non current assets and will be charged/capitalized in the year in which it is decided by the management to implement the project. Otherwise, in case, the management decides not to implement/close the project, expenditure on such project is charged to the Statement of Profit & Loss for the year in which such decision is taken.

222 {Q>ßnUr-12.1 … (Omar) Note 12.1 (Contd.) (` bmI _|) (` In Lakh) H«$. n[a`moOZm H$m Zm_ 31.03.2018 31.03.2017 g§. Name of the Project H$mo Am§H$‹S>o H$mo Am§H$‹S>o S. Figures as on Figures as on No. 31-03-2018 31-03-2017 1. gmoë`yeZ _mBqZJ n[a`moOZm-gh-Z_H$ n[aîH$aU n[a`moOZm Solution Mining Project Cum Salt Refinery Project 152.27 152.27 2. AmB©.Q>r.S>r.gr. n[a`moOZm ITDC Project 9.43 9.43 3. nmoQ>o{e`_ gë\o$Q> n[a`moOZm Potassium Sulphate Project 0.37 0.37 4. gm¡a D$Om© n[a`moOZm Solar Energy Project 9.38 9.38 5. Z_H$ YwbmB© n[a`moOZm Salt Washry Project 28.63 28.63 6. `moOZm n[a`moOZm/Plan Projects 0.80 0.80 200.88 200.88

(` bmI _|) (` In Lakh) {Q>ßnUr-13 … ñH$ÝY 31.03.2018 31.03.2017 NOTE - 13 : INVENTORIES H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017 (à~ÝYZ Ûmam {b`m J`m Ed§ à_m{UV {H$`m J`m _yë`) (As taken valued & certified by the Management) ñQ>m°H$ d ^ÊS>ma/STOCK & STORES (bmJV AWdm ewÕ dgybr `mo½` _yë` na Omo H$_ hmo) (At cost or Net Realisable value whichever is less) (A)A ^ÊS>ma, ñQ>oeZar d H$bnwO} Stores, stationary & Spare Parts 38.00 68.50 (~)B H$ÀMm _mb/Raw Material 51.78 43.73 (g)C Omar _mb (AZw_m{ZV dgybr _yë` na) Release Material (At estimated relisable value) 0.76 0.63 (X)D n¡qH$J _mb/Packing Material 13.10 13.84 (`)E ì`mnma _| ñQ>m°H$ ({Q>ßnUr g§»`m 13.1 XoIo)/ Stock in Trade (Refer Note No. 13.1) 92.84 95.68 `moJ/Total 196.48 222.38

223 (` bmI _|) (` In Lakh) {Q>ßnUr-13.1 … ñH$ÝY 31.03.2018 31.03.2017 NOTE - 13.1 : INVENTORIES H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017

ì`mnma _| ñQ>m°H$/Stock in Trade (bmJV AWdm ewÕ dgybr `mo½` _yë` na Omo, H$_ hmo) (At cost or Net Realisable value whichever is less) ~«mo_rZ/Bromine 32.33 10.98 KQ>mBò… j{V Ho$ {bE àmdYmZ/Less: Provision for wastage - - `moJ (A)Total (A) 32.33 10.98 Z_H$/Salt 57.94 82.95 KQ>mBò… Z_H$ H$s j{V Ho$ {bE àmdYmZ/ Less: Provision for wastage of Salt 7.66 10.01 `moJ (~)Total (B) 50.28 72.94 _¡½Zo{e`_ ŠbmoamBS>/MGCL 10.23 11.76 KQ>mBò… j{V Ho$ {bE àmdYmZ/Less: Provision for wastage - - `moJ (g)Total (C) 10.23 11.76 `moJ (A+~+g)/Total (A+B+C) 92.84 95.68 (i) Omar _mb _| ñQ>moa, ñn¡è© Ed§ AÝ` ñWmB© n[agån{Îm`m± gpå_{bV h¡ Omo {H$ bå~r Ad{Y _| Cn`moJr Zht h¡ VWm CÝh| Cgr df© _| ahXr/Omar Xem©Vo hþE nwñVH$ _yë` na Omar _mb _| ñWmZmÝV[aV {H$`m OmVm h¡& df© Ho$ Xm¡amZ ` 0.13 bmI (JV df© ` eyÝ` bmI) H$s nwñVH$ _yë` H$s aX²Xr gån{Îm H$mo hñVJV Omar _mb _| ñWmZmÝV[aV {H$`m J`m& Omar _mb H$s {~H«$s go àmá am{e H$mo bm^ hm{Z {ddaU _| AÝ` Am` Ho$ AÝVJ©V aX²Xr H$s {~H«$s _| Xem©`m J`m h¡ VWm Bg_| ` 0.76 bmI (JV df© ` 0.63 bmI)H$s AZw_m{ZV dgybr `mo½` am{e Omo {H$ ImamKmo‹S>m Ho$ ñQ>moa _| AZwn`moJr aIo _mb/aX²Xr Ho$ g§~§Y _| h¡ {OgH$m nwñVH$ _yë` {ZYm©aU `mo½` Zht h¡& O~ {H$ BZ _Xm| H$s {~H«$s/Cn`moJ {H$`m OmEJm V~ BZHo$ g§~§Y _| Amdí`H$ g_m`moOZ {H$`m OmEJm&/Release Material includes stores, spares and other fixed assets which are no longer usable and are released/scraped in respective years and transferred to release material at book value. During the year Assets Scraps having book value of Rs. 0.13 lacs ( previous year ` NIL lakhs) are transferred to Release Material in Hand. Sale Proceeds of disposal of release material are shown as sale of scraps under the head other income in the Statement of Profit and Loss. Further, its also includes a sum of ` 0.76 lakhs( previous year ` 0.63 lakhs) being the estimated realisable value in respect of unserviceable material/Scrap lying in stores at Kharaghoda as the book value of these items are not ascertainable. The necessary adjustment will be made as and when these items are disposed off/utilised. (ii) df© Ho$ Xm¡amZ gm_mÝ` ^ÊS>ma, gmBQ> na gm_J«r Ed§ Omar _mb H$m ^m¡{VH$ gË`mnZ {H$`m J`m&/Physical Verification of General Stores, materials at site, released materials was carried out during the year. (iii) OZab ñQ>moa _| aIr JB© H$_ Cn`moJr _Xm| na ZwH$gmZ Ho$ {bò H$moB© àmdYmZ, `{X H$moB© hmo, nwñVH$m| _| Zht {H$`m J`m h¢ Am¡a Cgo EH$ hr gyMr _| {XIm`m J`m Wm (am{e A{ZYm©[aV)& à~§YZ H$s am` _| H$_ Cn`moJr _Xm| H$m dV©_mZ _yë` {bò Jò _yë` H$s VwbZm _| A{YH$ h¡&/No provision for losses, if any, on the slow moving items laying in General Store has been made in the books and the same was shown in the inventory (Amount undetermined). In the opinion of the management the current value of slow moving item is more than the value taken.

224 (` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-14 … ì`mnm[aH$ àmpßV`m± H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 14 : TRADE RECEIVABLES Figures as on Figures as on 31-03-2018 31-03-2017 {Og {XZm§H$ na {OZH$m ^wJVmZ àmß` Wm Cg {XZm§H$ go N>… _mh go H$_ Ho$ ì`mnma àmß` Trade Receivables outstanding for a period less than six months from the date they are due for payment gwa{jV, AÀN>o$ g_Po Jò/Secured, Considered Good - - Agwa{jV, AÀN>o g_Po Jò/Unsecured, Considered Good 6.24 2.75 Agwa{jV, g§{X½Y g_Po Jò/Unsecured, Considered Doubtful - - 6.24 2.75 KQ>mBò… g{X½Y XoZXm[a`m| Ho$ {bE àmdYmZ Less: Provision for Doubtful Debts - - `moJ (E)/Total (A) 6.24 2.75 {Og {XZm§H$ na {OZH$m ^wJVmZ àmß` Wm Cg {XZm§H$ go N>… _mh go A{YH$ Ho$ ì`mnma àmß` Trade Receivables outstanding for a period exceeding six months form the date they are due for payment gwa{jV, AÀN>o g_Po Jò/Secured, Considered Good - - Agwa{jV, AÀN>o g_Po Jò/Unsecured, Considered Good 35.82 34.99 Agwa{jV, g§{X½Y g_Po Jò/Unsecured, Considered Doubtful 1.14 - 36.96 34.99 KQ>mBò… g§{X½Y XoZXm[a`m| Ho$ {bE àmdYmZ Less: Provision for Doubtful Debts 1.14 - `moJ (~r)/Total (B) 35.82 34.99 `moJ (E+~r)/Total (A+B) 42.06 37.74

df© Ho$ Xm¡amZ ` eyÝ` bmI (JV df© ` eyÝ` bmI) nwamZr àmß` am{e H$mo H$ånZr Ûmam àmdYmZ Ho$ {dê$Õ g_m`mo{OV {H$`m J`m `Ú{n `h am{e H$ånZr à~ÝYZ Ho$ AZwgma g~go AÀN>o à`mgm| Ho$ ~mdOyX ^r dgyb Zht hmo nm`r& During the year the Company has adjusted the amount of old receivables amounting to ` Nil Lakh (Previous Year ` Nil Lakh) against the provision, as these amount could not recovered in spite of best efforts in the opinion of the management of the company.

225 (` bmI _|) (` In Lakh) {Q>ßnUr-15 … ZH$X> d ZH$X g_H$j 31.03.2018 31.03.2017 NOTE - 15 : CASH & CASH EQUIVALENTS H$mo Am§H$‹S>o H$mo Am§H$‹S>o Figures as on Figures as on 31-03-2018 31-03-2017

~¢H$ _| eof/Balance with Bank:- Mmby ImVo _| eof/Balance in Current Account 14.12 4.76 gmd{YH$ O_m ImVo _o| eof/Balance in Term Deposits* 1.00 - hñVJV ZH$X>/Cash on Hand 0.63 0.42 AÝ`/Others 585.06 312.20 `moJ/Total 600.81 317.38

*E\$S>rAma H$m AmoS>r F$U H$s gwajm Ho$ {bE Eg~rAmB©, O`nwa, ImamKmo‹S>m Am¡a _§S>r (Eg.~r.AmB© O`nwa Ho$ gmW ` 13.74 bmI én`o Am¡a Eg~rAmB© Ho$ gmW ` 72.25 bmI én`o) Ho$ gmW ` 76.8 9 bmI à{Vkm **FDR's of ` 76.89 Lakh pledged with SBI, Jaipur, kharaghoda and Mandi (Previous year ` 13.74 lakh with SBI Jaipur and ` 72.25 lakh with SBI) towards security for OD loan

(` bmIm| _|) (` In Lakh) {Q>ßnUr-16 … Aënmd{Y G$U Ed§ A{J«_ 31.03.2018 31.03.2017 NOTE - 16 : SHORT TERM LOANS AND ADVANCES H$mo Am§H$‹S>o H$mo Am§H$‹S>o (ZH$X _| AWdm dñVw go AWdm àm{á `mo½` _yë` d dgybr `mo½`) Figures as on Figures as on (Recoverable in Cash or in Kind or for value to be received) 31-03-2018 31-03-2017 AÝ`/Other gwa{jV, AÀN>o g_Po Jò/Secured, Considered Good - - Agwa{jV, AÀN>o g_Po Jò (XoI| {Q>ßnUr 16.1) Unsecured, Considered Good (Refer Note 16.1) 6,033.80 5,356.05 g§{X½Y/Doubtful 27.39 27.39 6061.19 5,383.44 KQ>mBò… g§{X½Y G$Um| Ed§ A{J«_m| Ho$ {bE n«mdYmZ Less: Provision for doubtful Loans and Advances 27.39 27.39 `moJ/Total 6,033.80 5,356.05

226 (` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-16.1 … AÝ` G$U Ed§ A{J«_ (Agwa{jV) H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 16.1 : Other Loans & Advances Figures as on Figures as on (Unsecured) 31-03-2018 31-03-2017 gå~§{YV njH$mam| H$mo G$U Ed§ A{J«_ Loans and Advances to related Parties ghm`H$ H$ånZr H$mo G$U/Loan to Subsidiary Co. 2,073.50 1,833.50 ghm`H$ H$ånZr go àmß` ã`mO Interest Recoverable from Subsidiary co. 3,466.74 3,263.09 ghm`H$ H$ånZr go AÝ` Xo`VmE§ Other Dues from Subsidiary Co. 199.32 31.17 `moJ (A)/Total (A) 5,739.56 5,127.76 AÝ`/Others ñQ>m°\$ H$mo A{J«_/Advance to Staff 0.91 1.40 gaH$mar d AÕ© gaH$mar {ZH$m`m| _| O_m Deposit with Govt. Semi Govt. Bodies 0.53 0.55 òmoV na Am`H$a H$s H$Q>m¡Vr (Mmby df©) Income Tax Deducted at Source (C.Y.) 3.01 4.60 òmoV na Am`H$a H$s H$Q>m¡Vr (JV df©) Income Tax Deducted at Source (P.Y.) 5.68 5.68 CnH$a H$m A{J«_ ^wJVmZ/Advance Payment of Cess - - A_mZV am{e/Security Deposits* 10.74 16.21 n|eZ \$ÊS> Q´>ñQ> H$mo G$U/Loan to Pension Fund Trust - - n|eZ \$ÊS> Q´>ñQ> go dgybr `mo½` ã`mO Interest recoverable from Pension Fund Trust - - AÝ`/Others 300.76 227.24 `moJ (~)/Total (B) 321.63 255.68 `moJ (A+~)/Total (A+B) 6,061.19 5,383.44

(i) AÝ` G$U Ed§ A{J«_ _| ` 3.49 bmI (JV df© ` 3.16 bmI) ñQ>m°\$, R>oHo$Xma Ed§ AÝ` go A_mZV am{e Ho$ {dê$Õ H$ånZr Ho$ Zm_ go àmá gmd{Y O_m gpå_{bV h¡& Other Loans and Advances includes ` 3.49 Lakh (Previous Year ` 3.16 Lakh) against Security of Staff, Contractors and Other Received in the form of Term Deposits in Company's name. (ii) n|eZ {Z{Y Ho$ g_má hmo OmZo, n[aUm_ ñdê$n H$ånZr Zo Z_H$ {d^mJ, ^maV gaH$ma Ho$ ^yVnyd© H$_©Mm[a`m| H$mo {dÎmr` H${R>ZmB`m| go ~MmZo d n|eZ H$m ^wJVmZ H$aZo hoVw df© 2005-06 go 2009-10 Ho$ Xm¡amZ ` 300.00 bmI Ho$ Hw$b G$U àmá {H$E& H$ånZr Zo ^maV gaH$ma go Bg Xo`Vm H$mo ^yVbjr à^md go dhZ Ho$ {bE `m G$Um| H$mo AZwXmZ ghm`Vm AWdm ã`mO _wŠV G$U _mZo OmZo Ho$ {bE AZwamoY {H$`m h¡& {XZm§H$ 18.5.2005 Ho$ nÌ Ûmam ^maV gaH$ma Zo n|eZ {Z{Y Ý`mg H$s n[agån{Îm`m| Ed§ Xo`VmAm| H$mo 227 {Q>ßnUr-16.1 (Omar)/ NOTE-16.1 (Contd.) 1.4.2005 go A{YJ¥hU H$aZo `m n|eZ ^wJVmZ Ho$ {bE H$ånZr H$mo AZwXmZ ghm`Vm CnbãY H$amZo Ho$ {bE ñdrH$ma H$a {b`m h¡& ^maV gaH$ma Zo 31 _mM© 2005 H$mo ~H$m`m XÊS>Zr` ã`mO, ã`mO Ed§ G$U _m\$ H$a {X`m h¡ VWm VËníMmV nÌ g§»`m 19-09/2005 nrB©-V {XZm§H$ 1.2.2012 Ho$ Ûmam n|eZ H$m ^wJVmZ H$aZo Ho$ {bE H$ånZr H$mo AZwXmZ ghm`Vm XoZo H$m {ZU©` {H$`m J`m& df© Ho$ Xm¡amZ H$ånZr H$mo ` 192.00 bmI (JV df© ` 100.00 bmI) H$s AZwXmZ ghm`Vm àmá hþB©& Bg H$mo$Ü`mZ _| aIVo hþE Z_H$ {d^mJ Ho$ ^yVnyd© H$_©Mm[a`m| H$mo ^wJVmZ `mo½` n|eZ H$s am{e H$m àmdYmZ boIm| _| Zht {H$`m J`m&

Consequent to the depletion of the Pension Fund the Company has received total loans of ` 300.00 lacs during the year 2005-06 to 2009-10 for pension payments to ex-Employees of Salt Department, Government of India. In order to avoid any financial hardship to them, the Company has requested to Govt. of India for taking over this liability with retrospective effect or to treat the loans as grant-in-aid or at least interest free loan. The Government of India vide letter dated 18.5.2005 has agreed to take over the assets and liabilities of Pension Fund Trust as on 1.4.2005 or to provide grant-in-aid to the Company for payment of pension. The loan along with interest, penal interest as on 31st March, 2005 have already been waived off by the Government of India. Later on it was decided to provided Grant- in-Aid to the company vide letter no. 19-09/2005-PE-V dt. 01.02.2012 for disbursement of pension. During the current year Company has received ` 192.00 lakh (Previous year ` 100.00 lakhas) grant-in- aid. In view of this the amount of pension payable to Ex-employees of Salt Deptt. has not been provided in the accounts. (ii) df© Ho$ Xm¡amZ H§$nZr Zo 2005 go nhbo {XE JE F$U na ã`mO na ã`mO Am¡a B{¹$Q>r Ho$ ê$n _| àmá `moOZm {Z{Y go {XE JE F$U Am¡a {nN>bo df© Ho$ {bE 405.81 bmI én`o H$m ^wJVmZ ^r Zht {H$`m h¡&

During the year company has not charged the interest on interest on loan given prior to 2005 and loan given out from the plan funds received as equity and also write back the same of Rs 405.81 lakh for earlier year. (` bmI _|) (` In Lakh) 31.03.2018 31.03.2017 {Q>ßnUr-17 … AÝ` Mmby n[agån{Îm`m§ H$mo Am§H$‹S>o H$mo Am§H$‹S>o NOTE - 17 : OTHER CURRENT ASSETS Figures as on Figures as on 31-03-2018 31-03-2017

`moJ/Total 26.22 24.20 ì`mnm[aH$ àm{á`m|, ì`mnm[aH$ Xo`VmAm|, G$U Ed§ A{J«_ Z_H$ {d^mJ Ed§ AÝ` gaH$mar {d^mJm| Ho$ eof nwpîQ> Ed§ {_bmZ Ho$ AYrZ h¡&

The balance of Trade Receivable, Trade Payable, Loans and Advances, Salt Department and Other Government Departments are subject to confirmation and reconciliation if any.

(` bmI _|) (` In Lakh) df© 2017-18 df© 2016-17 {Q>ßnUr-18 … àMmbZ go amOñd Ho$ {bE Ho$ {bE NOTE - 18 : REVENUE FROM OPERATIONS For The Year For The Year 2017-18 2016-17 CËnmXm| H$s {~H«$s (XoI| {Q>ßnUr g§. 18.1) Sale of Products (Refer Note No. 18.1) 794.90 658.38

KQ>mB`o/Less:

CËnmX ewëH$/Excise Duty 102.18 62.72

`moJ/Total 692.72 595.66

_¡½Zo{e`_ ŠbmoamBS>/MGCL 124.50 57.44

~«mo_rZ/Bromine 454.57 443.68

{Oßg_/Gypsum - -

`moJ/Total 692.72 595.66

ã`mO H$s Am`/Interest Income gmd{Y O_m na ã`mO/Interest on FDR 29.44 44.97 ghm`H$ H$ånZr go ã`mO Interest from Subsidiary Co. 609.45 728.60 AÝ` na ã`mO/Interest on Others 28.37 0.34 Am`H$a {d^mJ go ã`mO Interest from Income Tax Deptt. 0.28 0.25 AÝ` AàMmbZ Am` (ewÕ) Other non-operation income (Net) {d{dY àm{á`m§/Misc. Receipts 2.68 3.30 ^y{_ bmBg|g ewëH$/Land Licence Fees 0.53 0.80 aX²Xr H$s {~H«$s/Omar _mb Sale of Scraps/Released Material 4.31 43.83 {d{dY O_m eof An{b{IV Sundry Cr. Balance Written Off 0.32 0.14 Z_H$ _| N>rOV H$m g_m`moOZ Adjustment of defecit of salt 19.60 6.24 `moJ/Total 694.98 828.47

CËnmXZ ì``/Manufacturing Expenses Z_H$ Ho$ CËnmXZ d CËIZZ Ho$ ì`` Manufacture & Excavation Expenses of Salt 49.00 27.40 ~«mo_rZ H$m CËnmXZ Manufacture of Bromine 356.11 305.13 _¡½Zr{e`_ ŠbmoamBS> H$m CËnmXZ Manufacture of MGCL 87.20 57.99 ^y{_ amOñd H$m _wAmdOm/Compensation of land revenue 0.16 - Cn`moJ {H$E JE Am¡Oma/An{b{IV Tools consumed/Written Off - - _erZm| H$s _aå_V Repair of Machinery 33.04 35.65 `moJ/Total 525.51 426.17 (` bmI _|) (` In Lakh) df© 2017-18 df© 2016-17 {Q>ßnUr-21 … V¡`ma _mb d H$m`© àJ{V na _| n[adV©Z Ho$ {bE Ho$ {bE NOTE - 21 : CHANGES IN INVENTORY OF For the Year For The Year FINISHED GOODS & W.I.P. 2017-18 2016-17

àmapå^H$ ñQ>m°H$/Opening Stock Z_H$/Salt 82.95 93.84 ~«mo_rZ/Bromine 10.98 25.87 _¡½Zo{e`_ ŠbmoamBS>/MGCL 11.76 - H$m`© àJ{V na/Work-in-Progress - - `moJ/Total 105.69 119.71 ApÝV_ ñQ>m°H$/Closing Stock Z_H$/Salt 58.07 82.95 ~«mo_rZ/Bromine 32.21 10.98 _¡½Zo{e`_ ŠbmoamBS>/MGCL 10.23 11.76 `moJ/Total 100.51 105.69 Hw$b `moJ/Grand Total 5.18 14.02

doVZ, ^ËVo d AÝ` bm^/Salaries, Allowances & Other Benefits doVZ d ^ËVo/Salaries & Allowances 406.66 290.83 _¥Ë`w gh godm{Zd¥{V CnXmZ nyd© Ho$ Xm{`Ëd g{hV Death Cum Retirement Gratuity including liability for earlier 5.15 20.10 {Z`moOH$ H$m A§eXmZ (nrE\$ d S>rEbAmB©) Employer's Contribution (PF & DLI) 59.83 54.91 g_yh CnXmZ ~r_m àr{_`_/Group Gratuity Insurance Premium 48.46 57.74 ~moZg/Bonus 8.28 15.48 H$_©Mmar H$ë`mU ì``/Staff Welfare Expenses 12.19 10.39 H$m`©H$Vm© _wAmdOm/Workman Compensation 0.81 - AÝ` ì``/Other Expenses 0.15 0.19 `moJ/Total 541.53 449.64

(` bmI _|) (` In Lakh) df© 2017-18 df© 2016-17 {Q>ßnUr-23 … {dËVr` cmJVo§ Ho$ {bE Ho$ {bE NOTE - 23 : FINANCE COSTS For The Year For The Year 2017-18 2016-17 ^maV gaH$ma H$mo ã`mO Interest To Government of India 350.35 382.92 ~¢H$m| H$mo ã`mO/Interest To Bank 7.93 4.69 AÝ` H$mo ã`mO/Interest To Others 0.02 0.03 `moJ/Total 358.30 387.64

232 (` bmI _|) (` In Lakh) df© 2017-18 df© 2016-17 {Q>ßnUr-24 … AÝ` ì`` Ho$ {bE Ho$ {bE NOTE - 24 : OTHER EXPENSES For The Year For The Year 2017-18 2016-17 àemg{ZH$ ì`` (XoI| {Q>ßnUr g§. 24.1) Administrative Expenses (Refer Note No. 24.1) 98.16 96.31 ZJar` ì`` d AÝ` gm_m{OH$ D$n[aì`` (XoI| {Q>ßnUr g§. 24.2) Township Expenses and Other Social Overheads (Refer Note No. 24.2) 23.56 21.86

{dH«$` d {dVaU ì`` (XoI| {Q>ßnUr g§. 24.3) Selling & Distribution Expenses (Refer Note No. 24.3) 22.36 24.80 am{e`m§/^ÊS>ma An{b{IV (ewÕ) Amounts/Stores Written Off (Net) 2.48 16.00 Iam~ Am¡a {dMmaerb F$U / A{J«_ Ho$ {bE àmdYmZ Provision for bad & Doughtful debts/Advances 1.15 - ñWmB© n[agån{Îm`m| H$s {~H«$s H$s hm{Z Loss of Sale of Fixed Assests - 0.07

AZwg§YmZ Ed§ {dH$mg/Research & Development 4.24 3.07 KQ>mB`o… ewÕ {dH$mg AZwg§YmZ g§M` Less: Net from Development Research Reserve - - Z_H$ ñQ>m°H$ H$s j{V Ho$ {bE àmdYmZ Provision for Wastage on Salt Stocks 1.85 4.97 Omo{S>E … ‹T>oa Ho$ A§{V_ {ZñVmaU na Z_H$ Ho$ ñQ>m°H$ _| H$_r Add : Deficit of Stock of Salt on Final Clearance of heaps 19.60 6.24 KQ>mBE … àmdYmZ _| An{b{IV Z_H$ Ho$ ñQ>m°H$ H$s H$_r Less : Deficit of Stock of Salt Written Off Out of Provision 4.19 6.24

`moJ/Total 169.21 167.08

`mÌm Ed§ dmhZ ì``/Travelling & Conveyance Expenses 10.92 13.76 S>mH$ Vma Ed§ Q>obr\$moZ/Postage Telegram & Telephones 5.77 6.36 {H$am`m ì``/Rent Expenses 4.05 5.01 Xa Ed§ H$a/Rates & Taxes 0.92 0.44 ~r_m à^ma/Insurance Charges 2.80 1.90 boIm narjH$m| H$mo ^wJVmZ/Payment to Auditor boIm narjm ewëH$ Ho$ ê$n _|/As Audit Fee 0.97 0.92 H$a boIm narjm ewëH$ Ho$ ê$n _|/As Tax audit fee 0.40 0.27 `mÌm/X¡{ZH$ ^ËVm ì`` Ho$ ê$n _|/As TA/DA Expenses 0.92 0.49 AÝ` j_Vm Ho$ ê$n _|/As Other Capacity 0.24 0.47 AmÝV[aH$ boIm narjH$m| H$m nm[al{_H$ Internal Auditor Remuneration boIm narjm ewëH$ Ho$ ê$n _|/As Audit Fee 0.24 0.23 `mÌm/X¡{ZH$ ^ËVo Ho$ ê$n _|/As TA/DA Expenses 0.44 0.21 AÝ` j_Vm Ho$ ê$n _|/As Other Capacity - - A{V{WJ¥h ì``/Guest House Expenses 2.23 1.38 {ZXoeH$m| H$mo `mÌm ^ËVm/T.A. to Directors 3.40 4.11

Ý`mg A§Ho$jU ewëH$/Trust Audit Fee - - AÝ` H$m`m©b` ì``/Other Office Expenses 39.75 32.30 dmhZm| H$m MmbZ Ed§ AZwajU Running & Mtc. of Vehicle 18.55 22.02 AÝ` _aå_V/Other Repairs 6.56 6.44 `moJ/Total 98.16 96.31

234 (` bmI _|) (` In Lakh) df© 2017-18 df© 2016-17 {Q>ßnUr-24.2 … ZJar` ì`` d AÝ` gm_m{OH$ D$nar ì`` Ho$ {bE Ho$ {bE NOTE - 24.2 : TOWNSHIP EXPENSES AND OTHER For The Year For The Year SOCIAL OVERHEADS 2017-18 2016-17

ZJar` ì``/Township Expenses ^dZ/g‹S>H$m| H$m AZwajU/ Maintenance of Building/Roads 8.68 3.65 nwñVH$mb` H$m AZwajU/Maintenance of Library - - g\$mB©/Sanitation 4.95 4.78 Ob Amny{V©/Water Supply 1.06 0.74 {dÚwV AZwajU/Mtc. Of Electricity 10.00 11.53 ömg/Depreciation 2.55 4.05 `moJ (A)/Total (A) 27.24 24.75 KQ>mB`o… àm{á`m§/Less : Receipts _H$mZ {H$am`m/House Rent 6.15 5.79 ^y{_ {H$am`m/Ground Rent 2.16 0.61 {dÚwV/Electricity - - `moJ (~)/Total (B) 8.31 6.40 {M{H$Ëgm ì`` H$s à{Vny{V©, XdmAm| H$s bmJV Ed§ {M{H$Ëgm AmH$pñ_H$VmE§ Reim. Of Medical Exp. And Cost of Medicines & Medical contingencies 1.00 0.49 AÝ` ì``/Other Expenses 3.63 3.02 `moJ (g)/Total (C) 4.63 3.51 `moJ (A+~+g)/Total (A-B+C) 23.56 21.86

235 (` bmI _|) (` In Lakh) df© 2017-18 df© 2016-17 {Q>ßnUr-24.3 … {dH«$` Ed§ {dVaU ì`` Ho$ {bE Ho$ {bE NOTE - 24.3 : SELLING & DISTRIBUTION EXPENSES For The Year For The Year 2017-18 2016-17 n¡qH$J Ed§ AJ«ofU àofU à^ma Packing & Forwarding Despatch Charges 15.80 11.60 {dkmnZ d àMma Advertisement & Publicity 4.24 4.73 àofU gmB{S>§J H$m AZwajU Maintenance of Despatch Siding - - Ny>>Q> d H$_reZ Discount & Commission 2.31 7.53 ì`dgm` g§dÕ©Z ì`` Business Promotion Expenses - 0.39 {Z`m©V g§dÕ©Z ì`` Export Promotion Expenses - - AÝ` ì``/Other Expenses 0.01 0.55

`moJ/TOTAL 22.36 24.80

236 (` bmI _|) (` In Lakh)

237 df© 2017-18 df© 2016-17 {Q>ßnUr-26 … à{V A§e AO©Z Ho$ {bE Ho$ {bE NOTE - 26 : EARNINGS PER SHARE For The Year For The Year 2017-18 2016-17 bm^ (+)/hm{Z (-) bm^ Ed§ hm{Z {ddaU Ho$ AZwgma A§e Ho$ ê$n _o BñVo_mb {H$E JE

Profit (+)/Loss(-) as per statement of Profit and Loss 183.55 40.42 usual as the numerator g_Vm A§em| H$s ^m[aV Am¡gV g§»`m {d^mOH$ Ho$ ê$n _| Weighted Average Number of Equity Shares usual a denominator A§emo§ H$s _yb g§»`m Basic Number of Shares 4,45,528 4,20,596 VZwH¥$V A§em| H$s g§»`m Diluted Number of Shares 4,45,528 4,20,596 g_Vm A§e Ho$ AZwgma A§{H$V _yë` 1000 1000 Face value as per Equity share (in ` ) à{V g_Vm A§e AO©Z Earnings per equity share: _yb B©nrEg (` _|) Basic EPS (in `) 41.20 9.61 VZwH¥$V B©nrEg (` _|) Diluted EPS (in `) 41.20 9.61

238 {QßnUr 27:- NOTE 27:- AmH${ñ_H$ Xo`VmE§ Ed§ ny§Or à{V~ÕVmE§ CONTINGENT LIABILITIES AND gr_m VH$ CnbãY Zht H$amE JE& CAPITAL COMMITMENTS TO THE EXTENT NOT PROVIDED FOR (i) JwOamV {dÚwV _ÊS>b Ho$ ` 21.13 bmI (ã`mO g{hV (i) Claim of Gujarat Electricity Board for ` 21.13 `{X H$moB© hmo) (JV df© ` 21.13 bmI) H$m Xmdm lakhs (excluding interest if any) (Previous Ý`m`mYrZ h¡& year ` 21.13 lakhs) being subjudice.

(ii) am_ZJa BH$mB© _| aoëdo H$s ^y{_ Ho$ AÝVar` bmBg|g (ii) Claim of N.E. Railway towards differential ewëH$ Ho$ CÎma nydu aoëdo Ho$ Xmdo Ho$ ` 28.06 bmI Am¡a License Fee of Railway land at Ramnagar Unit ` 28.06 lakhs and interest if any (Previous year ã`mO `{X H$moB© h¡& (JV df© ` 21.52 bmI) H$moQ>© Ho$g ` 21.52 lakhs) pending decision of the court _| {ZU©` b§{~V h¡& case.

(iii) H¥${f Ed§ J¡a H¥${f _yë`m§H$Z Ho$ gå~ÝY _| VmbwH$m (iii) In respect of Agricultural and Non- {dH$mg A{YH$mar, nmQ>S>r (JwOamV) Ûmam ` 85.64 agricultural assessment demand for ` 85.64 bmI (`{X H$moB© ã`mO hmo g{hV) H$s _m§J CR>mB© JB© h¡& lakhs (plus interest if any) raised by Taluka Vikas Adhikari, Patri (Gujarat). The matter is _m_bm {ddmXmñnX h¡ VWm CgHo$ ~mX H$ånZr Ho$ nmg under dispute and the Company has not H$moB© _m§J àmá Zht hþB©& VWm{n ~mX _| ` 5.51 bmI received any demand thereafter. However, (ã`mO g{hV `{X H$moB© hmo) H$s _m§J H$s JB© {OgHo$ {bE subsequently demand for ` 5.51 lakhs (plus _mZZr` JwOamV CÀM Ý`m`mb` go ñQ>o {b`m J`m& interest if any ) was raised for which the stay _mZZr` JwOamV CÀM Ý`m`mb` Ûmam àH$aU H$m was obtained from the Hon'ble High Court, Gujarat. The Hon’ble High Court of Gujarat {ZñVmaU H$a {X`m J`m Ed§ amÁ` Ed§ Ho$ÝÐ gaH$ma Ho$ has since disposed of the case and directed to à{V{Z{Y`m|, H$s EH$ CÀMm{YH$ma g{_{V J{R>V H$aZo Ho$ form a high power Committee consisting of {ZX}e {X`o& {ddmX A^r CÀMm{YH$ma g{_{V Ho$ nmg representatives of State & Central Govt. The bpå~V h¡& A~ VmbwH$m {dH$mg A{YH$mar nmQ>S>r Zo dispute is still pending with High Power ` 272.80 bmI Ed§ ã`mO H$m Xmdm g§emo{YV {H$`m h¡& Committee Now the Taluka Vikas Adhikari, Patri has revised the claim of ` 272.80 lakhs (JV df© ` 272.80 bmI) (ã`mO A{V[aŠV)& (plus interest) (previous year ` 272.80 lakhs (plus interest).

(iv) grS>rE Am¡a AmB©.S>r.S>r.E. Ho$ VhV H$da H$_©Mm[a`m| Ho$ (iv) Liability on account of revision of pay scales doVZ_mZm| Ho$ g§emoYZ Ho$ H$maU Xo`Vm n¡Q>Z©& (am{e of employees covered under CDA and I.D.A. A^r VH$ A§{V_ ê$n Zht V` H$s JB© h¡)& pattern. (Amount not ascertainable as not yet finalized).

(v) AÝ` _m_bm| Ho$ Xmdo Xmà {H$ò Jò bo{H$Z H$ånZr Ho$ (v) Other claims lodged but not acknowledged as debt by the Company ` 20.87 lakh plus CÝh| G$U Ho$ ê$n _| Zht _mZm h¡& ` 20.87 bmI Am¡a interest if any (Previous year ` 33.89 lakh). ã`mO `{X H$moB© hmo (JV df© ` 33.89 bmI)

239 (vi) {h_mMb àXoe gaH$ma H$m _ÊS>r BH$mB© _| I{ZO Z_H$ (vi) Claim of H.P Government towards Royalty H$s am°`ëQ>r na ` 30.29 bmI H$m Xmdm& (JV df© on Rack Salt in Mandi Unit ` 30.29 lakhs (Previous year ` 41.29 lakhs). ` 41.29 bmI)

(vii) joÌr` {Z`§ÌH$ IXmZ, ^maVr` IXmZ ã`yamo Ho$ nj _| (vii) Liability if any, on account of Bank guarantee Eg.~r.AmB© Ûmam Omar ` 11.00 bmI (JV df© ` amounting to ` 11.00 lakhs (Previous Year ` 1.00 bmI) Ho$ ~¢H$ O_mZV Ho$ g§~§Y _| H$moB© ^r 1.00 lakhs) issued by SBI Jaipur in favour of Regional Control of Mines, Indian Bureau of Xm{`Ëd `{X hmo& Mines.

(viii)l{_H$mo§, godm, ^y{_ Ed§ AÝ` _m_bm| Ho$ Xmdo {OZHo$ ~mao (viii) Claims on account of labour, service, land and _| {d{^Þ Ý`m`mb`m| _| àH$aU {dMmaYrZ h¡- am{e other matters for the suits pending in {ZYm©aU `mo½` Zht h¡& different Courts - Amount indeterminate.

(ix) AÝ` àH$aU {OZ_| H$ånZr H$s AmH${ñ_H$ {Oå_oXmar (ix) Other cases in which the Company is h¡& (Ohm§ H$ht Xem©`m J`m h¡ Ho$ Abmdm am{e {ZpíMV c o n t i n g e n t l y l i a b l e ( a m o u n t s n o t H$aZo `mo½` Zht h¡&) ascertainable except as and where specified).

~r ny§Or à{V~ÕVm B. Capital Commitments i. ny§OrJV ImVm| ` 710.30 bmI ({nN>bo df© ` i. Estimated amount on account of contract 826.20 bmI) na àXÎm eof AZw~§Y Ho$ H$maU remaining to be excuted on Capital accounts A{V[aº$ am{e ` 710.30 lakhs (Previous year ` 826.20 lakh) ii. {h_mMb àXoe gaH$ma Ho$ gmW B{¹$Q>r ^mJrXmar Ho$ ii. Liability on Account of Equity participation ImVo na Xo`Vm _§S>r _| g_mYmZ IZZ gh H$mpñQ>H$ with H.P. Government for solution Mining Cum Caustic Soda project at Mandi gmoS>m n[a`moOZm ` 43.55 bmI ({nN>bo df© ` 43.55 amounting to ` 43.55 lakh (Previous year bmI) Ho$ {bE gaH$ma& ` 43.55 lakh.)

240 {Q>ßnUr-28 … gå~pÝYV njH$mam| H$m àH$Q>rH$aU NOTE - 28 : RELATED PARTY DISCLOSURES BÝñQ>rQ²>`yQ> Am°\$ MmQ>©S>© AH$mCÝQ>oÝQ>²g Am°\$ BpÊS>`m Ûmam Omar boIm _mZH$-18 ""g§~§{YV njH$mam| H$m àH$Q>rH$aU'' H$s AZwnmbZm Ho$ AYrZ Ano{jV àH$Q>rH$aU {ZåZmZwgma H$s JB© h¡…- Disclosure in compliance of Accounting Standard-18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India are given as under:- _w»` à~§YZ ì`pŠV/Key Management Personnel lr Eg.nr. ~§gb, AÜ`j Ed§ à~ÝY {ZXoeH$ /Shri S-P. Bansal, CMD gwlr gw_moZm _Oy_Xma, H$ånZr g{Md /Ms. Sumona Majumdar, Company Secratery ghm`H$ H$ånZr/Subsidiary company / gm§â gmëQ²>g {b{_Q>oS>/Sambhar Salts Limited (` bmI _|) (` In Lakh) ì`dhmam| H$m _w»` à~ÝYZ gm§â gmëQ²>g {b{_Q>oS> ApÝV_ {ddaU ì`[ŠV (ghm`H$ H$ånZr) eof Details of Key Management Sambhar Salts Ltd. Closing Transactions Personnel (Subsidiary Company) Balance 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 nm[al{_H$/Remuneration 16.43 16.15 - - - - AÝ` n[abm^/Other Benefits 7.34 7.72 - - - - _mb H$s IarX Purchase of Goods - - 3.05 19.77 - - n[agån{Îm`m|/ñQ>moa H$m hñVm§VaU Transfer of Assets/Stores - - 4.87 - - - G$U {X`m J`m/Loan Given - - 500.00 2,833.50 2,833.50 G$U na ã`mO/Interest on Loan - - 609.45 728.60 3,466.74 3,263.09 H$m°nm}aoQ> H$m`m©b` Ho$ IM© H$m {hñgm g§^ma gmëQ²g {b{_Q>oS> (ZoQ>) Ho$ {bE Cn`wº$ Share of corporate office expenses opportioned to Sambhar Salts Ltd. (Net) - - 228.40 212.79 - - ghm`H$ go àmá A{V[aº$ ã`mO {nN>bo gmb Ho$ {bE H§$nZr dmng {bIr JB© Excess interest receivable from subsidiary company for earlier year written back 405.81 - gm§â gmëQ²>g {b. H$mo nydm©d{Y _w»`mb` ì`` H$m A{^^m{OV A§e (ewÕ) Share of Corporate Office Prior Period Expenses apportioned to Sambhar Salts Ltd (Net) - - -3.01 -0.22 - - H$ånZr Ho$ AÜ`j Ed§ à~ÝY {ZXoeH$ H$s ` 2,000/- à{V_mh ^wJVmZ {H$E OmZo dmbo S´>mBda Ûmam MbmB© OmZo dmbr H$ma Ho$ à{V~pÝYV Cn`moJ H$s _X H$mo hñVJV n[abm^ _| Zht {b`m J`m h¡& The restrictive use of Company's chauffeur driven Car for the Company's Chairman & Managing Director against payment of ` 2,000/- per month has not been considered as a perquisite in his hands.

241 {Q>ßnUr 29…- NOTE 29:- A{V[aŠV {Q>ßn{U`m± ADDITIONAL NOTES

(i) H$ånZr H$s ñWmnZm hmoZo na ^maV gaH$ma H$mo eo`a (i) In lieu of issue of shares by the Company Omar H$aZo H$s EdO _| H$ånZr Zo ImamKmo‹S>m d _ÊS>r H$s to the Government of India on its n[agån{V`m± AnZo A{YH$ma _o§ Admá H$a br, formation, possession of assets at Am¡nMm[aH$ g_Pm¡Vm| H$mo A{ÝV_$ê$n {X`m OmZm eof h¡& Kharaghoda and Mandi has been acquired by the Company pending Bg gå~ÝY _| A^r VH$ H$moB© H$ama Zht {H$`m J`m h¡& finalization of formal Agreement. No agreement has been made so far in this regard. (ii) Mmby df© Ed§ {ZH$Q> ^{dî` _| An`m©ßV bm^ H$mo Ü`mZ _| (ii) No adjustment regarding deferred tax aIVo hþ`o AmñW{JV H$a Ho$ gå~ÝY _| g_m`moOZ Zht has been worked out in view of {H$`m J`m h¡ Ed§ ^{dî` H$s H$a `mo½` n`m©ßV Am` H$s insufficient profits in current year and near future and also there is no H$moB© Cn`wŠV {Z{íMVVm ^r Zht h¡& AV… XÿaX{e©Vm Ho$ reasonable certainty for sufficient future AmYma na AmñW{JV H$a na AmYm[aV gån{V`m| H$s taxable income. Therefore based on nhMmZ Zht H$s JB© h¡& prudence Deferred Tax Assets have not been recognized. (iii) H$ånZr H$mo 13.6.2000 H$mo ê$½U Am¡Úmo{JH$ H$ånZr (iii) Company was declared Sick Company A{Y{Z`_ H$s Ymam 3 (1) (O) Ho$ AYrZ é½U H$ånZr under Section 3(1)(O) of the SICA Act on Kmo{fV H$a {X`m J`m Wm& Am¡Úmo{JH$ Ed§ {dÎmr` 13.6.2000. The BIFR had appointed nwZ{Z©_m©U _ÊS>b (~rAmB©E\$Ama) Zo Am¡Úmo{JH$ {dH$mg Industrial Development Bank of India (IDBI) as the operating agency u/s 17(2) ~¢H$ Am°\$ BpÊS>`m (AmB©S>r~rAmB©) H$mo A{Y{Z`_ H$s of the Act to examine the viability of the Ymam 17(2) Ho$ AYrZ n[aMmbZ A{^H$Vm© Ho$ ê$n _| C o m p a n y a n d t o f o r m u l a t e a H$ånZr H$s ì`dhm`©Vm H$s Om§M Am¡a BgHo$ nwZê$ËWmZ rehabilitation scheme for its revival. Ho$ {bE nwZ… ñWmnZm `moOZm H$mo AZw~Õ H$aZo Ho$ {bE IDBI had submitted the viability report {Z`wŠV {H$`m h¡& Am¡Úmo{JH$ {dH$mg ~¢H$ Am°\$ BpÊS>`m to the BIFR on 22.8.2005. Z o AmÚ¡ m{o JH$ Ed § {dÎmr` nZw {Z_© mU© _ÊS>b Ûmam ì`dhm`V© m [anmoQ>© {XZm§H$ 22.8.2005 H$mo àñVwV H$a Xr JB©&

22.8.2005 H$mo n[aMmbZ A{^H$Vm© Ûmam àñVwV H$s BIFR had sanctioned the Revival Scheme JB© àmê$n nwZdm©g `moOZm (S>rAmaEg) Ho$ AmYma na on the basis of Draft Rehabilitation ~r.AmB©. E\$.Ama. Zo$ nwZê$ËWmZ `moOZm H$mo ñdrH¥$V Scheme (DRS) submitted by the H$a {X`m h¡& gmd©O{ZH$ joÌ Ho$ CnH«$_m| Ho$ nwZ{Z_m©U Operating Agency on 22.8.2005. The Govt. of India, DHI approved the Draft _ÊS>b (~rAmanrEgB©) H$s {g\$m[agm| Ho$ AmYma na Rehabilitation Scheme (DRS) on the

242 nwZ©dmg `moOZm (S>rAmaEg) Ho$ àmê$n H$m ^maV gaH$ma basis of the recommendation Board of ^mar CÚmoJ {d^mJ Ûmam AZw_moXZ H$a {X`m J`m& reconstruction of Public Sector Enterprises (BRPSE).

AmXoe {XZm§H$ 15.12.2008 Ho$ Ûmam gH$mamË_H$ ewÕ In view of the positive net worth, BIFR ny§Or H$mo Ü`mZ _| aIVo hþE ~rAmB©E\$Ama Ûmam H$ånZr has delisted the Company from the H$mo ê$½U Am¡Úmo{JH$ H$ånZr A{Y{Z`_ H$s n[a{Y go hQ>m purview of SICA Act vide Order dated 15.12.2008. {X`m h¡&

(iv) df© Ho$ Xm¡amZ g§{MV hm{Z`m| Ed§ JV df© Ho$ H$ånZr H$s (iv) No provision for Income-Tax and MAT nwñVH$m| _| AmJo bmB© JB© JV df© H$s g§{MV hm{Z`m| Ed§ has been made during the year due to Ademo{fV õmg Ho$ H$maU df© Ho$ Xm¡amZ Am`H$a `m accumulated book losses & unabsorbed Ý`yZV_ d¡H$pënH$ H$a (E_EQ>r) Ho$ {bE H$moB© àmdYmZ depreciation of previous year brought forwarded in the books of Company. Zht {H$`m J`m h¡&

(v) H$ånZr Ho$db EH$ CËnmX/ì`dgm` Omo {H$ Z_H$ Am¡a (v) The company operates the single line of Bggo g§~§{YV J{V{d{Y`m§ h¡ H$m n[aMmbZ H$aVr h¡& business/product viz. Salt and its AV… EH$ EH$b IÊS> AmYm[aV IÊS> [anmoQ>© H$s h¡& related activities as such segment reporting is done on a single segment basis.

(vi) df© Ho$ Xm¡amZ ImamKmo‹S>m _| Z_H$ H$s N>rOV A§Ho$ ê$nò (vi) During the year deficit of salt at 19.60 bmI {OgHo$ noQ>o Z_H$ H$s N>rOV H$m àmdYmZ Kharaghoda Found on final Clearance of ê$nò 4.19 bmI H$mo nwñVH$mo _| gj_ A{YH$mar H$s Salt heap of Rs. 19.60 Lakh against the ñdrH¥${V Ho$ AYrZ g_m`mo{OV {H$`m J`m h¡ Š`m|{H$ `h Provision for wastage of Salt of Rs. 4.19 _m_bm Om±M Ho$ AÝXa AmVm h¡& Lakh adjusted in the books Subject to Approval of Competent authority as the matter under examination. (vii) df© Ho$ Xm¡amZ ^mar CÚmoJ {d^mJ Ho$ Ûmam gw{MV Ed§ (vii) During the Year the adjustment of ^maV gaH$ma go àmá ã`mO am{e Ho$ G$U na ê$nò Interest charged excess on Loan from Govt. of India in earlier of Rs. 693.12 693.12 bmI H$mo g_`mo{OV {H$`m J`m Ed§ ZmoQ> Z§. Lakh has been carried out on the basis of 25 nwdm©d{Y g_m`moOZ _| {XIm`m J`m& reconciliation and Informed by Department of Heavy Industry and shown in note No. - 25 Prior Period adjustment

(viii)n[a`moOZm IM© ì`` é. gm¡a D$Om© n[a`moOZm na (viii) P r o j e c t E x p e n d i t u r e I n c l u d e s é. eyÝ` ({nN>bm df© 1.85 bmI) Expenditure on Solar Energy Project of Rs. NIL (Previous Year Rs. 1.85 Lakh) 243 (ix) H$ånZr Ho$ ñdm{_Ëd H$s ^y{_ H$m {ddaU {ZåZ àH$ma (ix) The company is having the land as per h¡…- detail below :- (` bmI _|)/(` In Lakh) O`nwa/JAIPUR ImamKmo‹S>m/KHARAGHODA _ÊS>r/MANDI am_ZJa/RAMNAGAR _yë` _yë` _yë` _yë` joÌ/AREA VALUE joÌ/AREA VALUE joÌ/AREA VALUE joÌ/AREA VALUE 1. nyU© ñdm{_Ëd dmbr ^y{_ - - 23596 EH$S> 24.54 7 0 2 . 7 5 d J © _rQ>a 37.92 - - Free Hold Land Acres /Sq. Mtr. 2. nQ²>Q>o na ^y{_ 2048 dJ© 5.53 - - 133.116 EH$‹S> - 4712.61 dJ© _rQ>a/ - Leased Hold Land _rQ>a/Sq. Mtr. /Acres Sq. Mtr. (bmBg|g \$sg na)(On licence Fee)

ImamKmo‹S>m BH$mB© (JwOamV) Ho$ aU joÌ, _ÊS>r ({h_mMb Further there is no encroachment in Run àXoe) Ed§ am_ZJa (CÎmamIÊS>) _| H$moB© A{VH«$_U Zht area in Kharaghoda unit (Gujarat), h¡& Mand (H.P. ) and Ram Nagar (Uttrakhand).

(x) bm^ Ho$ à{VeV Ho$ ê$n _| AÜ`j Ed§ à~ÝY {ZXoeH$ (x) No commission has been paid or payable g{hV {ZXoeH$m| H$mo H$_reZ H$m H$moB© ^wJVmZ Z Vmo to the Directors including Chairman & {H$`m J`m h¡ Am¡a Z hr {H$`o OmZo `mo½` h¡& AV… Managing Director by way of H$ånZr A{Y{Z`_, 2013 H$s Ymam 197 Ho$ AZwgma p e r c e n t a g e o f p r o f i t . H e n c e , bm^ H$s JUZm dm§{N>V Zht h¡& computation of profit provided in accordance with section 197 of the Companies Act, 2013 is not required. (xi) à~ÝYH$m| H$s gå_{V _| Mmby n[agån{V`m|, G$Um| VWm (xi) In the opinion of the management, A{J«_m|, `{X do ì`mnma H$s gm_mÝ` pñW{V _| dgyb current assets, loans and advances are {H$E OmE§ Vmo bJ^J d{U©V _yë` H$ o h,¢ Am¡a g^r based on the realizable value in the Xo`VmAm| Ho$ {bE AÝ`Wm Z H$hm J`m, Ho$ A{V[aŠV ordinary course of business and H$m àmdYmZ H$a {b`m J`m h¡& provision for all liability, except as otherwise stated has been provided.

(xii) ì`mnm[aH$ àm{á`m|, ì`mnm[aH$ Xo`VmAm|, G$U Ed§ (xii) The balance of Trade Receivable, Trade A{J«_, Z_H$ {d^mJ Ed§ AÝ` gaH$mar {d^mJm| Ho$ eof Payable, Loans and Advances, Salt nwpîQ> Ed§ {_bmZ Ho$ AYrZ h¡& Department and Other Government Departments are subject to confirmation and reconciliation if any.

(xiii) (` bmI _|) (xiii) (` in Lakhs) (i) Am`mV H$m gr.AmB©.E\$. 2017-18 2016-17 (i) C.I.F. Value of 2017-18 2016-17 _yë` Imports

244 i(A) H$ÀMm _mb eyÝ` eyÝ` i(a) Raw Materials Nil Nil i(~) H$bnwO} Ed§ KQ>H$ eyÝ` eyÝ` i(b) Components & Spare PartsNil Nil i(g) ny§OrJV _mb eyÝ` eyÝ` i(c) Capital goods Nil Nil ii. {dXoer _Ðm _| ì`` eyÝ` eyÝ` ii. Expenditure in Foreign Nil Nil Currency iii. {dXoer {d{Z`_ _| Am` eyÝ` eyÝ` iii. Earnings in Foreign Nil Nil Exchange iv(i) bm^m§e Ho$ ê$n _| Omar H$s iv(i) Remittances in foreign Nil Nil JB© {dXoer _wÐm eyÝ` eyÝ` currencies on account of dividends iv(ii) A{Zdmgr Ae§YmaH$m| H$s iv(ii) Number of Non-Resident Nil Nil g§»`m eyÝ` eyÝ` Shareholders

V Cn`moJ {H$E JE ñdXoer Ed§ V Value of imported and Am`m{VV H$ÀMm _mb, ñQ>moa, indigenous raw materials, H$bnwO} Ed§ KQ>H$ H$m _yë` stores, spares and components consumed

H$ÀMm_mb ñQ>moa H$bnwO} Raw- Stores, Ed§ KQ>H$) material Spares and Components

à{VeV (` bmI à{VeV (` bmI % (` in % (` in _|) _|) Lakh) Lakh) (A) Am`m{VV eyÝ` eyÝ` eyÝ` eyÝ` (a) Imported Nil (Nil) Nil (Nil) (eyÝ`) (eyÝ`) (eyÝ`) (eyÝ`) Nil (Nil) Nil (Nil) (~) ñdXoer 100% 142.01 100% 72.22 (b) Indigenous 100% 142.01 100% 72.22 (100%)(81.34)(100%)(14.23) (100%)(125.99) (100%)(28.04)

(xiv) A{V[aŠV _mÌmË_H$ gyMZm AZw~Õ "A' _| g§b½Z h¡ (xiv) Additional quantitative information is Am¡a H$ÀMm _mb, _OXÿar, epŠV, B©YZ Ed§ ^ÊS>ma H$m placed at Annexure-A and details of {dñV¥V {ddaU AZw~Õ "~' _| g§b½Z h¡& expenditure incurred on raw materials, wages, power & fuel and stores is placed at Annexure –B. (xv) Ohm§ Amdí`H$ g_Pm J`m h¡ dhm§ JV df© Ho$ Am§H$‹S>m§o H$mo (xv) Figures for the previous year have been nwZ… loUr~Õ/nwZ… ì`dpñWV J`m h¡ Vm{H$ BÝh| Bg df© regrouped/rearranged wherever Ho$ Am§H$S>m| go VwbZm `mo½` {H$`m Om gHo$& considered necessary so as to make these comparable with current year's figures.

245 (xvi) Figures are rounded off to lakhs of (xvi) Am§H$‹S>| Xmo Xe_bd ñWmZ Ho$ gmW én`o bmImo§ Ho$ rupees with two decimal place. gm_rß` _| h¡&

gw_moZm _Oy_Xma Eg.Ho$. Q>mH$ gVre garZ Eg.nr. ~§gb (Sumona Majumdar) (S.K. Tak) (Satish Sareen) (S.P. Bansal) H$ånZr g{Md _hmà~§YH$ ({d. Ed§ bo.) {ZXoeH$$ AÜ`j Ed§ à~ÝY {ZXoeH$ Company Secretary General Manager (F & A) Director Chairman and DIN-01874068 Managing Director DIN-07239609 h_mao Bgr {XZm§H$ Ho$ g§b½Z à{VdoXZ Ho$ AZwgma in terms of our report of even date annexed hereto H¥$Vo EM.gr. ~moWam EÊS> Egmo{gEQ²>g/For H.C. Bothra & Associates MmQ>©S>© boImH$ma/Chartered Accountants g§ñWm n§OrH$aU g§./Firm Registration No. 008950C

ñWmZ : O`nwa ({Xbrn MÝX AJ«dmb) Place : Jaipur (Dilip Chand Agarwal) {XZm§H$ : 23 OwbmB©, 2018 gmPoXma/Partner Dated : 23 July, 2018 gXñ`Vm g§./Membership No. 079983

246 AZw~Õ ""A''/Annexure “A” A{V[aŠV _mÌmË_H$ gyMZm Additional Quantitative Information (_mÌm _¡. Q>Zm| _|) (` bmI _|) (Quantity in MTs) (` In Lakh) 2017-18 2016-17 H«$.g§. {ddaU ImamKmo‹S>m _ÊS>r am_ZJa H$m `moJ H$m `moJ S.No. Particulars Kharaghoda Mandi Ramnagar Total for Total for 2017-18 2016-17 1. AZwkßV j_Vm (_¡. Q>Zm| _|) Licenced Capacity (in M.T.) gm_mÝ` Z_H$ bmJy Zht bmJy Zht 0 bmJy Zht bmJy Zht Common Salt N.A. N.A. 0 N.A. N.A. ~«mo_rZ Bromine 900 0 0 900 900 E_OrgrEb/MGCL 7500 0 0 7500 7500 2. g§ñWm{nV j_Vm (_¡. Q>Zm| _|) Installed Capacity (in M.T.) gm_mÝ` Z_H$ bmJy Zht bmJy Zht 0 bmJy Zht bmJy Zht Common Salt N.A. N.A. 0 N.A. N.A. ~«mo_rZ Bromine 900 0 0 900 900 Am`moS>rZH$aU g§`§Ì lodisation Plants 96,000 0 0 96,000 96,000 E_OrgrEb/MGCL 7500 0 0 7500 7500 3. dmñV{dH$ CËnmXZ (_¡. Q>Zm| _|) Actual Production (in M.T.) gm_mÝ` Z_H$ Common Salt 12374 0 0 12374 2414 ~«mo_rZ Bromine 330 0 0 330 329 Cn-CËnmX/g§gm{YV Z_H$ Bye-Products/Proc. Salt 0 0 0 0 0 g|Ym Z_H$/Rock Salt 0 47 0 47 0 Am`moS>rZH$aU lodisation 0 0 0 0 0 E_OrgrEb/MGCL 3600 0 0 3600 2059

247 AZw~Õ ""A''(Omar)/Annexure "A" (Contd.) (_mÌm _¡. Q>Zm| _|) (` bmI _|) (Quantity in MTs) (` In Lakh) 2017-18 2016-17 H«$.g§. {ddaU ImamKmo‹S>m _ÊS>r am_ZJa H$m `moJ H$m `moJ S.No. Particulars Kharaghoda Mandi Ram- Total for Total for nagar 2017-18 2016-17 _mÌm am{e _mÌm am{e _mÌm am{e _mÌm am{e _mÌm am{e Qty. Amt. Qty. Amt. Qty. Amt. Qty. Amt. Qty. Amt.

4. àmapå^H$ ñQ>m°H$ Opening Stock gm_mÝ` Z_H$ Common Salt 10,162 55.07 1 0.04 625 13.18 10,788 68.29 13,706 79.19 ~«mo_rZ Bromine 8 10.98 - - - - 8 10.98 23 25.87 Cn-CËnmX/g§gm{YV Z_H$ Bye-Products/Proc. Salt - - - - 375 14.65 375 14.65 350 14.69

E_OrgrEb/MGCL 350 11.77 - - - - 350 11.77 - -

5. Z_H$ H$s IarX Purchase of Salt gm_mÝ` Z_H$ Common Salt 20,400 51.00 1 - 119 3.05 20,520 54.05 28,547 68.23 g§gm{YV Z_H$ Proc. Salt ------210 7.75

E_OrgrEb/MGCL ------

6. {~H«$s/N>rOV Sales/Wastages gm_mÝ` Z_H$ Common Salt 31,474 110.56 - - 374 11.20 31,848 121.76 32,862 82.49

g|Ym Z_H$/Rock Salt 46 4.12 46 4.12 ~«mo_rZ/Bromine 309 454.57 - - - - 309 454.57 344 443.68 Cn-CËnmX/g§gm{YV Z_H$ Bye-Products/Proc. Salt - - - - 80 2.48 80 2.48 169 6.87 {Z`m©{VV Z_H$ Export Salt ------

248 AZw~Õ ""A''(Omar)/Annexure "A" (Contd.) (_mÌm _¡. Q>Zm| _|) (` bmI _|) (Quantity in MTs)(` in Lakh) 2017-18 2016-17 H«$.g§. {ddaU ImamKmo‹S>m _ÊS>r am_ZJa H$m `moJ H$m `moJ S.No. Particulars Kharaghoda Mandi Ram- Total for Total for nagar 2017-18 2016-17 _mÌm am{e _mÌm am{e _mÌm am{e _mÌm am{e _mÌm am{e Qty. Amt. Qty. Amt. Qty. Amt. Qty. Amt. Qty. Amt. N>rOV Wastages 4,028 20.14 - 0.01 - - 4,028 20.15 1,033 6.24

E_OrgrEb/MGCL 3,650 124.50 - - - - 3,650 124.50 1,709 57.43

7. ApÝV_ ñQ>m°H$ Closing Stock gm_mÝ` Z_H$ Common Salt 7,434 57.94 1 0.03 370 9.40 7,805 67.37 10,772 68.29

g|Ym Z_H$/Rock Salt 1 0.09 1 0.09 ~«mo_rZ Bromine 29 32.33 - - - - 29 32.33 8 10.98 Cn-CËnmX/g§gm{YV Z_H$ Bye-Products/Proc. Salt - - - - 295 11.43 295 11.43 391 14.65

E_OrgrEb/MGCL 300 10.23 - - - - 300 10.23 350 11.77

8. Cn`moJ _| {b`m J`m H$ÀMm _mb Raw Material Consumed Z_H$ {~Q>Z© (E_3) Salt Bittern(M3) 1,37,736 192.84 - - - - 1,37,736 192.84 1,39,748 179.76

ŠbmoarZ (_¡. Q>Z) Chlorine(MT) 2,14,728 2.49 - - - - 2,14,728 2.49 2,03,805 3.44 gëâ`w[aH$/hmB©S´>moŠbmo[aH$ Aåb (_r.Q>Z) Sulphuric/ Hydrochloric Acid (MT) 2,32,901 1.97 - - - - 2,23,901 1.97 2,32,211 2.79 [S>~moa{_ZoQ>oS> {~Q>Z© Debromineted Bittern 14,605 20.45 14,605 20.45

249 AZw~Õ ""~''/Annexure- "B" 31 _mM© 2018 H$mo g_mßV df© Ho$ {bE H$ÀMo _mb, _OXyar, ^ÊS>ma Ed§ A{V[aŠV nwO} VWm {dYwV Ed§ BªYZ na ì`` H$m {dñV¥V {ddaU O¡gm {H$ g§~§{YV erfm] _| gpå_{bV {H$E JE h¡& Detail of Expenditure Incurred on Raw Material, Wages, Stores & Spares, Power & Fuel as included in respective Heads for the year ended on 31st March, 2018 (` bmI _|) (` In Lakh)

{ddaU H$ÀMm _mb _OXyar ^ÊS>ma Ed§ {dÚwV Ed§ AÝ` 2017-18 2016-17 A{V[aŠV nwO} BªYZ (ewÕ) H$m `moJ H$m `moJ Particulars Raw Wages Stores & Power Others Total for Total for Material Spares & Fuel (Net) 2017-18 2016-17 {Z_m©U/Am`moS>rZH¥$V H$aZo H$m ì`` Manufacturing/ Iodisation Expenses 142.01 113.59 60.97 96.99 111.95 525.51 426.17 àemg{ZH$ ì`` Administrative Expenses - 6.26 8.22 12.63 71.05 98.16 96.31 gm_m{OH$ D$nar ì`` Social Overheads - 17.33 2.32 7.95 4.14 31.74 28.26 {dH«$` Ed§ {dVaU Selling & Distribution - 15.53 - - 6.83 22.36 24.80 AÝ` {d{dY ì``/g_m`moOZ Other Misc. Expenses/ - 3.11 0.71 - 2.90 6.72 24.11 Adjustments JV df© Ho$ ì`` Previous Year Expenses - 0.01 - - 0.66 0.67 0.98

`moJ/Total 142.01 155.83 72.22 117.57 197.53 685.16 600.63 JV df© Ho$ Am±H$‹S>o Previous Year's Figures 125.99 171.40 28.04 124.12 151.08 600.63 512.22

250 ghm`H$ H$ånZr gm§^a gmëQ²>g {b{_Q>oS> go gå~§{YV H$ånZr (boIm) {Z`_ 2014 H$s Ymam 129 (3) gn{R>V {Z`_ 5 Ho$ AÝVJ©V {ddaU Statement Pursuant to Section 129 (3) With Rule 5 of Companies (Accounts) Rules 2014 Relating to the Subsidiary Company Sambhar Salts Limited ghm`H$ H$ånZr Ho$ {bE à{VdoXZ Ad{Y 1 Aàob, 2017 go 31 _mM© 2018 Reporting Period for the subsidiary company 1st April 2017 to 31st March 2018 à{Vdo{XV _wÐm ^maVr` én`o (`) Reporting Currency Indian Rupees (`) A§e ny§Or A{YH¥$V ` 200 bmI Share Capital Authorised ` 200 Lakh àXÎm ` 100 bmI Paid up ` 100 Lakh Am{YŠ` Ed§ Ama{jV ` (3424.51) bmI/Lakh Reserve & Surplus Hw$b n[agån{Îm`m± ` 4387.83 bmI/Lakh Total Assets Hw$b Xm{`Ëd ` 4387.83 bmI/Lakh Total Liability {d{Z`moOZ eyÝ` Investments Nil Hw$b {~H«$s ` 1913.01 bmI/Lakh Turnover H$a go nyd© bm^ ` (258.11) bmI/Lakh Profit Before Taxation H$a Ho$ {bE àmdYmZ eyÝ` Provision for Taxation Nil H$a Ho$ ~mX àmdYmZ ` (258.11) bmI/Lakh Profit After Taxation àñVm{dV bm^m§e eyÝ` Proposed Dividend Nil A§e Ym[aV H$m à{VeV 60% % of share holding {Q>ßnUr …- 1. ghm`H$ H$ån{Z`m| H$o Zm_, {OÝh| A^r VH$ g§MmbZ àmaå^ H$aZm h¡& eyÝ` Note:- Name of subsidiaries which are yet to commence operation. Nil 2. ghm`H$ H$ån{Z`m| Ho$ Zm_ {OZH$m df© Ho$ Xm¡amZ {dH«$` `m n[ag_mnZ hmo MwH$m h¡& eyÝ` Name of Subsidiaries which have been liquidated or sold during the year. Nil 251

2017-20185 6

253