The Directors take pleasure in presenting their Annual Report together
 with the Audited Statements of Accounts for the year ended 31st March,
 2012.
 
 FINANCIAL RESULTS
 
 The financial results of the Company for the year 2011-12 are
 summarized below :
 
                                                       (Rs. in lakhs)
 
                                        31-03-2012         31-03-2011
 Sales and other revenue                  2,560.42           1,886.51
 
 Profit before Finance charges,             258.40            (27.86)
 Depreciation, Tax & other adj''s
 
 Less: Finance charges                        0.55               1.81
 
 Profit before Depreciation, 
 Tax & other adj''s                          257.85            (29.67)
 
 Less: Depreciation                          80.19              78.40
 
 Profit before Tax & other adj''s            177.66           (108.07)
 
 Less: Provision for current tax             55.80                 --
 
 Taxes of earlier years                     (0.29)               0.16
 
 Deferred Tax Asset/Liability adj''s        (10.58)            (26.43)
 
 Profit before appropriations and           132.73            (81.80)
 
 carried to Balance Sheet
 
 
 
 OPERATIONS
 
 Your Directors are to report that, with the improved supply of
 Hydrofluosilicic Acid, a major raw material for producing Aluminium
 Fluoride (AIF3), the Company produced 4,436 MT of AIF3 during the year
 under review as against 3,894 MT during 2010-11. During the year the
 Company sold 4,451 MTAIF3 as against 3,963 MT in 2010-11. With the
 increased sale price of AIF3, Sales and other Income during the year
 under review, reported at Rs.  2,560.42 lakhs as against Rs. 1,886.51
 lakhs during 2010-11. With efficient working capital management,
 planned other income and with effective cost control measures, the
 Company posted a net profit of Rs. 132.73 lakhs for the year under
 review as against net loss of Rs. 81.80 lakhs in 2010-11.
 
 DIVIDEND
 
 In view of the proposed shifting of the Plant to the place where the
 Company will get assured acid supplies, your Directors are not
 recommending any Dividend.
 
 OUTLOOK FOR THE CURRENT YEAR
 
 The sale price of Aluminium Fluoride for the current year has
 increased. However, the Company has a huge pending export order, which
 is to be executed at the 2009 recession price levels. To improve the
 profitability levels compared to the last year, the Company requested
 and obtained the overseas client''s permission for executing part
 pending order in 2012-13 and agreed to complete the balance in 2013-14.
 Though the adjacent fertilizer complex supplied record low supplies of
 742 MT acid in 2011-12, the Company is confident of getting its
 required acid supplies from long distance suppliers, to maintain the
 last year''s (2011-12) AIF3 Production & Sales levels and to post good
 returns.
 
 EXPORTS
 
 During the year under review, the Company registered an Export sale of
 Rs. 85.78 lakhs as against Rs.410.18 lakhs during 2010-11.
 
 ENVIRONMENT & SAFETY MEASURES
 
 Following the ISO Certifications of 9001,14001 and OHSAS 18001 the
 Company will continue taking all the necessary measures to maintain
 high standards of Environment, Clean and Green Belt, Water Harvesting,
 Pollution Control, Health and '' Safety Precautions. The Company
 proposes an energy audit during the current year.
 
 INSURANCE
 
 All the properties of the Company including Buildings, Plant and
 Machinery and Stocks have been adequately insured.
 
 DIRECTORS
 
 In accordance with the provisions of the Companies Act, 1956 and the
 Articles of Association of the Company, Dr. T.R.  Ramachandran and Sri
 Ashok Vemulapalli, Directors will be retiring by rotation at the Annual
 General Meeting and are eligible for re-appointment.
 
 AUDITORS
 
 M/s Rao & Kumar, Chartered Accountants, Visakhapatnam, the Auditors of
 the Company will be retiring at the conclusion of this Annual General
 Meeting and have conveyed their consent for re-appointment.
 
 COST AUDIT
 
 M/s D.V.J. Rao & Associates, Cost Accountants, Visakhapatnam as Cost
 Auditors have been appointed to conduct Cost Audit for the year ended
 31 March, 2012. They will submit their report to the Board of Directors
 before filing it to the Ministry of Corporate Affairs, New Delhi.
 
 RESPONSIBILITY STATEMENT
 
 As per the provisions of Section 217 (2AA) of the Companies Act, 1956,
 Directors state:
 
 i.  In the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures.
 
 ii.  The Directors have selected such accounting policies and applied
 them consistently and made judgements and estimates that are reasonable
 and prudent so as to give true and fair view of the state of affairs of
 the Company at the end of the financial year and of the Profit and Loss
 of the Company for that period.
 
 iii. The Directors have takers proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of this Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities.
 
 iv.  The Directors have prepared the accounts on a going concern basis.
 
 PARTICULARS OF EMPLOYEES
 
 There are no employees falling within the purview of the Section
 217(2A) of the Companies Act, 1956 read with Company''s (Particulars
 of Employees) Rules, 1975.
 
 ADDITIONAL INFORMATION
 
 Additional information on conservation of energy, technology absorption
 and foreign exchange earnings and outgo as required to be disclosed in
 terms of Section 217(1)(e) of the Companies Act, 1956 read with the
 Companies (Disclosure of particulars in the Report of the Board of
 Directors) Rules, 1988 is given in Annexure -1 and forms part of this
 report.
 
 CORPORATE GOVERNANCE
 
 Pursuant to Clause 49 of the Listing Agreement, your Company has to
 mandatorily comply with the requirements of Corporate Governance. A
 report of compliance of Corporate Governance is annexed together with a
 Certificate from the Auditors of the Company on compliance.
 
 ACKNOWLEDGEMENTS
 
 The Board of Directors of the Company take this opportunity to place on
 record their appreciation of the cooperation and support extended by
 State Bank of India, IDBI Bank Ltd., HDFC Bank Ltd., Axis Bank Ltd. and
 Punjab National Bank. Your Directors also appreciate the sincere and
 efficient services rendered by the Employees of the Company at all
 levels towards successful working of the Company.
 
                                         For and on behalf of the Board
 
                                                        VENKAT AKKINENI
 
                                                     Managing Director
 
 Visakhapatnam                                   Dr. T.R. RAMACHANDRAN
 
 30   July, 2012                                              Director