Dear Shareholders,
 
 I am glad to welcome you to the 30th Annual General Meeting of your
 Company. At the outset, I thank you for your continued trust,
 encouragement and support. This is the second AGM being held in the
 absence of our beloved Founder Chairman, Dr. C. H. Krishnamurthi Rao. I
 would like to affirm that your Company is committed to follow the
 ideals enshrined by him and he continues to guide us as a beacon of
 light in all our endeavors.
 
 It gives me immense pleasure to address you after yet another year of
 successful operation of your plant. A successful year if I may add,
 despite a tough external environment as alongside the successful
 performance, your Company also experienced unprecedented challenges.
 The relentless focus and dedicated teamwork by our CALmates ensured
 that we navigated these difficult times successfully.
 
 COMPANY PERFORMANCE
 
 I am sure, all of you are aware that the performance of any
 Chlor-Alkali industry is dependent upon the following key factors,
 
 a.  Consistent power supply
 
 b.  Reasonable powertariff
 
 c.  Good domestic market
 
 I am glad to inform you that your Company has performed reasonably well
 during this financial year following the consistency in the grid power
 supply from the Puducherry Electricity Department (PED), Government of
 Puducherry, especially during the second half of the year, thanks to
 the diligent efforts of the PED and your Company.
 
 Moreover with the strong market trend that prevailed during the year,
 your Company could sustain a very good realisation from the domestic
 market throughout the year.
 
 The relief, by way of Power Factor Incentive, had partly offset the
 burden on the annual increase in power tariff along with additional
 quarterly burden of power-purchase adjustment cost.
 
 Further, with the Salt Division also achieving higher production during
 the year, the dependence on outside salt at a higher cost, was much
 less during the year, resulting in considerable reduced material cost.
 
 RESULTS
 
 All the above, have resulted in an all-time high PBT of Rs.34.83
 Croresand PAT of Rs.23.48 Crores.
 
 UPGRADATION
 
 Identifying the need for upgrading the technology and modernisation of
 plant operations, your Company has taken pro-active steps to replace
 the existing CEC mono-polar electrolysers, which are operating for well
 over 25 years, with the latest CEC''s bi-polar BiTAC® technology along
 with complete electrical installations, other critical equipment and
 accessories.
 
 The existing Caustic-soda Concentration Plant is also due for
 replacement and hence your Company is going in for a state-of-the-art
 caustic concentration plant coupled with Flaker unit.
 
 FUTURE OUTLOOK
 
 I look ahead with guarded optimism. Studies indicate that Companies
 across the world focus on innovation to resurrect growth and profit.
 Trends in technology, demographics, markets and regulations always
 provide new and exciting opportunities for innovation, strategy and
 growth.
 
 In line with the above thinking, your Company, with its remarkable
 capabilities has set ambitious future targets to achieve, and our
 vision is to expand our business volume. Your Company is pursuing and
 scouting for investment opportunities.
 
 As part of our strategic business plan, your Company is in the process
 of acquiring salt land in the deep South of Tamilnadu, to enhance salt
 production, in orderto be self-reliant.
 
 It was the firm belief of our beloved Founder Chairman that growth must
 always walk hand in hand with responsibility. Your company is committed
 to conserve energy and protect the environment.
 
 As a part of green environment initiative, your Company has embarked on
 a Corporate sustainability plan by venturing into Carbon foot-
 printing, water foot-printing and energy audit.
 
 MILESTONE IN SAFETY AND POLLUTION ABATEMENT
 
 Since the establishment of CAL in 1 985 with the then
 latest-state-of-the-art, membrane cell technology for the manufacture
 of Chlor-alkali products, your Company has ventured into many areas to
 sustain the operations with utmost safety, commitment to conserve the
 natural resources and save energy.
 
 Modern thinking, creativity and innovations are the most important
 factors, on which CAL has been established. In line with the above,
 
 a) Your Company has further improved safety systems by installing the
 Fully Enclosed Negative Pressure Operated Scrubbing System in all the
 critical areas of chlorine operation in order to enhance the safety in
 handling, thereby providing a safer work environment for its employees
 and also to protect the environment.
 
 b) Your Company''s in-house R&D has developed innovative process for
 the manufacture of Sodium Sulphate and Soda Ash for the reduction of
 solid waste and the green house gases respectively which are extremely
 significant contributions on the environment protection front.
 
 c) Your Company has also completely replaced the existing Fire Hydrant
 System, which had pipes running under-ground with a new fully automatic
 system along with the hydrant pipes, above the ground level, to prevent
 corrosion of pipes and water leakages.
 
 CHALLENGES IN THE ENSUING YEAR
 
 EXPANSION
 
 It is a harsh reality of these times that all businesses are forced to
 face some constraints or the other. I firmly believe it is better for a
 business to face its constraints openly and boldly and work resolutely
 to deal with each of them when they surface before us. It is in this
 spirit that we had handled the NOCforourexpansion project.
 
 Due to inordinate delay in granting the NOC for the expansion proposal,
 your Company was constrained to approach the National Green Tribunal
 for legal remedy and after hearing our well documented points, the
 Hon''ble forum was kind enough to issue time-bound directions to the
 Appellate Authority to dispose our case.
 
 As mentioned earlier, I look forward to the future with guarded
 optimism and the challenges ahead must be identified and tackled
 systematically. To begin with, there is an urgent need for upgradation
 of critical equipment during the current year.
 
 EB TARIFF
 
 We also need to monitor and control costs, especially the Raw Material
 and Power costs, as the Puducherry Electricity Department (PED) had
 recently announced a substantial increase in the power tariff to be
 effective from 1''April 201 3. This approximately works out to 35% over
 and above the existing power cost. Your Company is confident that these
 challenges would be met with diligent care and we shall work towards a
 healthy bottom line for the Company.
 
 DIVIDEND
 
 Considering all the above aspects, your Directors have felt the need to
 conserve the funds to address the critical areas, and hence the Interim
 Dividend of 100% declared during the last quarter, shall be treated as
 the Final Dividend for the year.
 
 We value the importance of our relationships and will continue to
 remain fair and true in our dealings with all stakeholders.
 
 Our human-capital is the biggest asset. Their commitment has enabled
 your Company to succeed. On your behalf and on behalf of the Board of
 Directors, I congratulate them on yet another year of achievements. We
 also place, on record, our appreciation for our clients, vendor
 partners, investors, bankers, the Government of India and the
 Government of Puducherry for their continued support.
 
 The journey to success is possible only with qualities of foresight,
 strategy and preparedness. But for all these to function, trust is
 paramount and the core foundation of all our operations. Our
 inspiration comes from the trust that all you Shareholders have reposed
 in us, and on behalf of all my other Directors, CALmates, I personally
 thank all you Shareholders.
 
 I must acknowledge the dedicated work put in by CALmates, at all levels
 for their whole-hearted efforts and support.
 
 On this occasion, CAL pledges to continue in the path and ideals set by
 our beloved Founder Chairman and achieve all his cherished dreams and
 steer the Company to greater heights with many more achievements and
 laurels in the years to come.
 
 Thank you
 
                                              Suresh Krishnamurthi Rao
 
 Place: Chennai
                                              Chairman
 Date: 11th April 2013