The Directors are pleased to present Annual Report of your Company
 together with the Audited Statement of Accounts and the Auditors''
 Report of your Company for the financial year ended 31'' March, 2013.
 The summarized financial results for the year ended 31 March, 2013,
 are as under: .
 
 FINANCIAL RESULTS
 
 Particulars                               Current Year   Previous Year
                                           31-03-2013     31-03-2012 
                                           Rs. in lakhs   Rs. in lakhs
 
 Profit before Interest and Depreciation         4,151        1,866
 
 Less: Interest                                      0            0
 
 Profit Before Depreciation                      4.151        1,866
 
 Less: Depreciation                                668          681
 
 Profit before Tax                               3,483        1,185
 
 Tax                                             1,212          792 
 
 Deferred Tax Liability                            -77         -354
 
 Net Profit after Tax                            2,348          747
 
 Balance brought forward from previous year      6,354        5,607
 
 Balance available for appropriation             8,702        6,354
 
 Appropriations:
 
 Interim Dividend paid                             459            0
 
 Dividend Tax                                       74            0
 
 General Reserve                                   240            0
 
 Balance to be carried forward                   7,929        6,354
 
 OPERATIONS
 
 During the year under review, the Company achieved normalcy in
 operations after the Chlorine Gas leak which had adversely affected it
 in the previous year. Thus, production of Caustic Soda Lye in 2012-13
 was higher at 36,151 MT as against 27,661 MT during the previous year,
 an increase of 30.69%. Consequently, there was an increase in the
 volume of sales achieved to 34,695 MT, up by 32.35%, as compared to
 26,214 MT in 2011-12.This, along with the overall favourable market
 conditions, enabled the Company to achieve an all-time high PBT of
 Rs.34.83 crores in the year under review.
 
 DIVIDEND
 
 During the year under review, your Board of Directors had declared an
 interim dividend of Rs.5 per equity share (being 100 %) for the
 financial year 2012-13. Having regard to the substantial interim
 dividend paid, your Board do not recommend any final dividend for the
 year. The total amount of dividend paid for the year ended 31''
 March, 2013 amounts to Rs.4,58,58,485.
 
 FIXED DEPOSITS
 
 During the year under review, the Company did not raise funds by way of
 fixed deposits from the public and hence, no amount of principal or
 interest was outstanding as on the balance sheet date.
 
 DIRECTORS
 
 In accordance with Sections 255 and 256 of Companies Act, 1956 and the
 Company''s Articles of Association, the following Directors retire by
 rotation and being eligible, offer themselves for re-appointment at the
 ensuing Annual General Meeting: l.Shri N. Ganga Ram 2.Shri T.
 Ramabadran
 
 AUDITORS
 
 The present Auditors of the Company, M/s. Deloitte Haskins & Sells,
 hold office until the conclusion of the ensuing Annual General Meeting
 and are eligible, to be reappointed. A Certificate has been received
 from the Auditors to the effect that their re-appointment, if made,
 will be within the limits prescribed under Section 224(1B) of the
 Companies Act, 1956 and that they are not disqualified for
 reappointment within the meaning of Section 226 of the said Act. The
 Directors accordingly recommend the re-appointment of M/s Deloitte
 Haskins & Sells as Auditors of the Company for the year 2013-14.
 
 COST AUDITOR
 
 In conformity with the directives of the Central Government, the
 Company has appointed Shri A. Madhavan, Cost Accountant, No: 9. Dr.
 Ranga Road, Mylapore, Chennai - 600 004, as the Cost Auditor under
 Section 233B of the Companies Act, 1956, for the audit of cost accounts
 in respect of the chemicals manufactured by the Company for the year
 ended 31 '' March 2013.
 
 The Cost Audit report for the previous year ended 31 '' March 2012 was
 to be filed on or before 30 September 2012 and subsequently, the due
 date was extended till 28 February 2013. The Company has duly filed the
 Cost Audit Report for the year, before the extended due date, on 15
 January 2013.
 
 PERSONNEL
 
 The Company has no employees, attracting the provisions of Section
 217(2A) of the Companies Act, 1956 read with the Companies (Particulars
 of Employees) Rules, 1975.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 As required under Section 217 [2AA] of the Companies Act, 1956, the
 Board of Directors hereby confirm:-
 
 (i) That in the preparation of the Annual Accounts, the applicable
 accounting standards had been followed along with proper explanation
 relating to material departures;
 
 (ii) That the Directors had selected such accounting policies and
 applied them consistently and made judgments and estimates that are
 reasonable and prudent so as to give a true and fair view of the state
 of the affairs of the Company at the end of the financial year and of
 the profit of the Company for that period;
 
 (iii) That the Directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities; and
 
 (iv) That the Directors had prepared the Annual Accounts on a
 going-concem basis.
 
 RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORPTION AND CONSERVATION OF
 ENERGY
 
 As per Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1988, every Company shall disclose particulars about
 Conservation of energy, Technological absorption etc. In compliance
 with the said Rule, the Company has an in-house Research Development
 Department, where the main areas of focus are Energy Conservation,
 Process Upgradation and Environmental Preservation. The Ministry of
 Science and Technology, Department of Scientific and Industrial
 Research, Government of India, has recognized the Company''s in-house
 R & D facilities, and the Ministry''s renewal permission is valid upto
 31st March 2014.
 
 The Company has a sophisticated laboratory qualified by DuPont, USA,
 for the analysis of Chlor-Alkali brine. Brine from the various Chlor
 -Alkali industries in India is being analysed at your CAL-QA
 Laboratory.
 
 CORPORATE GOVERNANCE
 
 Corporate Governance involves regulatory and market mechanisms, and the
 roles and relationships between a Company''s management, its Board, its
 shareholders and other stakeholders, and the goals for which the
 company is governed.
 
 Pursuant to Clause 49 of the Listing Agreement, the Company has been
 conscientiously following the Corporate Governance norms prescribed by
 the Securities and Exchange Board of India [SEBI]. The Report on the
 status of the Compliance of Corporate Governance Guidelines of SEBI,
 together with the Auditors'' Certificate is attached as an Annexure to
 this Report.
 
 SECRETARIAL COMPLIANCE CERTIFICATE
 
 The Compliance Certificate issued by a Practicing Company Secretary is
 attached.
 
 INDUSTRIAL RELATIONS
 
 Industrial relations continue to remain cordial.
 
 ACKNOWLEDGEMENT
 
 The Directors thank all the shareholders, customers, dealers,
 suppliers, bankers, financial institutions and all the other business
 associates for their continued support to the Company and the
 confidence reposed in its Management. The Directors also thank the
 Government authorities for their understanding and co-operation.  The
 Directors wish to record their sincere appreciation of the significant
 contribution made by the employees of the Company at all levels to its
 profitable and successful operations.
 
                              For and on behalf of the Board of Directors
 
 Place : Chennai             C.S.Ramesh    Suresh Krishnamurthi Rao
 
 Dated : 11th April, 2013    Director      Chairman