The Members of

ECO RECYCLING LIMITED

The Directors are pleased to present the Twenty Sixth Annual Report along with theAudited Financial Statements of your Company for the Financial Year ended 31st March2020.

1. THE STATE OF THE COMPANY'S AFFAIRS

The period under discussion was quite satisfactory in terms of overall performance ofthe Company. This year your Company focused on fee-based services and we are pleased toshare that this approach has resulted into higher profits. With the implementation ofE-waste Management Rules along with Extended Producers' Responsibility & Targets forthe Producers we envisage a quantum jump in the business of the Company in the comingyears. It is very pleasant to inform that during the period under review your Companybrought working capital facilities extended by Catholic Syrian Bank to nil and preferredto plough back its internal resources for working capital requirement. In view of theabove this year also the Company would like to focus on value added services datasanitization and remarketing of refurbished IT Equipment.

1.1 KEY FINANCIAL HIGHLIGHTS (' in Lacs)

During the year under review the Company has reported a total income of Rs. 1321 lakhsas against Rs. 1303 lakhs.

1.2 Change in nature of Business

The Company is engaged in the business of e-waste management and recycling. There wasno change in nature of business activity during the year.

1.3 Change in Share Capital

During the Financial Year 2019-20 the share capital of the company has increased fromRs. 1754 lakhs to Rs. 1930 lakhs because of issue of bonus shares in the ratio of 1 sharefor every 10 shares held.

1.4 Revision of Annual Financial Statement

There was no case of revision in financial statement during the year.

2. DIVIDEND

To conserve the resources for business expansion your Directors have not recommendedany dividend for the financial year ended March 312020.

3. TRANSFERS TO RESERVES During the year the Company has not transferred any amount tothe reserves.

4. MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANYOCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIALSTATEMENT RELATE AND THE DATE OF THE REPORT

There are no material changes and commitments affecting the financial position of thecompany which have occurred between the end of the financial year of the company to whichthe financial statements relate and the date of the report.

5. CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION

Since Recycling is the core activity of your Company Section 134(3) of the CompaniesAct 2013 read with the rules made thereunder the clause relating to Conservation ofEnergy and Technology absorption is not applicable to your Company.

6. FOREIGN EXCHANGE EARNINGS AND OUTGO

The Foreign Exchange earned in terms of actual inflows during the year and the ForeignExchange outgo in terms of actual outflows during the year is as follows:

7. EXTRACTS OF ANNUAL RETURN

In accordance with Section 134(3) (a) read with Section 92(3) of the

Act an extract of the Annual Return in Form MGT-9 is placed on the website of theCompany and same can be downloaded by clicking on the following link: http://ecoreco.com/investor-annual-reports.aspx

8. DEPOSITS

During the year under review your Company did not accept any deposits within themeaning of provisions of Chapter V - Acceptance of Deposits by Companies of the CompaniesAct 2013 read with the Companies (Acceptance of Deposits) Rules 2014.

9. THE DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TOTHE FINANCIAL STATEMENTS

The Company has adopted the policies and procedures for ensuring the orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information.

The Company has adequate internal financial controls with reference to financialstatements. The Company's internal control systems including internal financial controlsare commensurate with the nature of its business and the size and complexity of itsoperations and same are adequate and operating effectively. These systems are periodicallytested and no reportable material weakness in the design or operation was observed. TheAudit Committee reviews adequacy and effectiveness of the Company's internal controlsystem including internal financial controls.

10. BOARD MEETINGS

The Board of Directors (herein after called as "the Board") met for 6 (Six)times during the Year under review:

11. CHANGE IN DIRECTORS AND KEY MANAGERIAL PERSONNEL:

As on the date of this Report your Company has 6 (Six) Directors consisting of 3(Three) Independent Directors and 3 (Three) Executive Directors including a WomanDirector.

In pursuance of the provisions of Section 152(6) of the Act and Articles of Associationof the Company Mrs. Aruna Soni (DIN: 01502649) retires by rotation from the Board in theensuing AGM and being eligible for re-appointment has offered herself forre-appointment. The Board of Directors recommends her re-appointment to the Members of theCompany.

During the year under reviewMr. Dilip Boralkar (DIN: 02515249) Independent &Non-Executive Director has resigned from the Board of Directors of the Company witheffect from January 24 2020 due to personal commitments and other preoccupations. TheBoard of Directors places on record their appreciation for the valuable contributions madeby Mr. Dilip Boralkar (DIN: 02515249).

Further the Board of Directors of the Company in the Board Meeting held on May 162020 has appointed Mr. Ravi Varma (DIN: 08762549) as an Additional Independent &Non-Executive Director. Pursuant to provisions of Section 160 and 161 of the CompaniesAct 2013 his term as Director is valid till the ensuing Annual General Meeting of theCompany. The Company has received notice from a Member of the Company u/s 160 of the Actproposing the candidature of Mr. Ravi Varma (DIN: 08762549) as an Independent &Non-Executive Director of the Company. The Board has considered the proposal and decidedto recommend his name to the Members in ensuing Annual General Meeting to be appointed asan Independent & Non-Executive Director of the Company.

Mr. Anand Dubey has tendered his resignation as the Whole-time Company Secretary andCompliance Officer of the Company w.e.f. May 04 2020.

Pursuant to the provisions of Section 149 of the Act the independent director havesubmitted declaration that each of them meet the criteria of independence as provided inSection 149(6) of the Act along with Rules framed thereunder and Regulation 16(1 )(b) ofthe Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 2015 ("SEBI Listing Regulations"). There has been nochange in the circumstances affecting their status as independent directors of theCompany.

According to the Amendment Regulation 17(6)(e) of SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 if the aggregate annual remuneration payableto more than one Executive Director who is a Promoter or is a Member of the PromoterGroup exceeds 5% of the net profits of the Company calculated as per Section 198 of theCompanies Act 2013 then approval of the Members by way of a Special Resolution isrequired. Such approval of the Members under this provision shall be valid only till theexpiry of the term of such Director. The approval of the Members by way of a SpecialResolution is required since the Company has more than one Promoter Executive Directorand regards to. Mr. Brijkishor Soni (DIN: 01274250) and remuneration paid to him is inexcess of 5% of the net profits of the Company calculated as per Section 198 of the Acteven though the annual remuneration payable to the Executive Directors is within the limitas specified u/s 197(1) of the Act.

The Board recommends the approval for payment of aggregate annual remuneration to thePromoter- Executive Directors/Members of the Promoter Group exceeding 5% of the netprofits of the Company.

Further at the time of the appointment of an Independent Director the Company issuesa formal letter of appointment outlining his role function duties and responsibilities.The format of the letter of appointment is available on our website at http://ecoreco.com/investor-overview.aspx.

Brief resume and other details of the Director proposed to be re-appointed at the AGMas stipulated under the Listing Regulations and Secretarial Standard-2 has been furnishedseparately in the Notice convening the AGM read with the Annexure thereto forming part ofthis Report.

Details of the number of meetings of the Board of Directors and Committees andattendance at the meetings have been furnished in the Report on Corporate Governance.

Following persons are designated as Key Managerial Personnel (KMP):

• Mr. Brijkishor Soni (DIN: 01274250) Chairman and Managing Director

• Mr. Shashank Soni Executive Director and Chief Financial Officer

• Company Secretary and Compliance officer Mr. Anand Dubey resigned on May 042020

12. STATEMENT ON DECLARATION GIVEN BY THE INDEPENDENT DIRECTORS UNDER SECTION 149(6) OFTHE COMPANIES ACT 2013 All Independent Directors of your Company have given a declarationpursuant to Section 149(7) of the Companies Act 2013 affirming compliance to the criteriaof Independence as laid down under Section 149(6) of the Companies Act 2013 andRegulation 25 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015and that they are not disqualified to become Directors under the Act.

Based on the declaration(s) of Independent Directors the Board of Directors recordedits opinion that all Independent Directors are independent of the Management and havefulfilled the conditions as specified in the Companies Act 2013 and the Rules madethereunder.

13. Board Familiarization Program At the time of appointment of a new Director throughthe induction process he/she is familiarized with the Company the Director's rolesrights responsibilities in the Company nature of the industry in which the Companyoperates business model of the Company etc. Detailed presentations are made before theBoard Members at the Board and its Committee Meetings covering various areas includingbusiness strategy financial performance and forecast compliances/regulatory updatesaudit reports risk assessment and mitigation industry roles rights responsibilitiesof Independent Directors etc.

Familiarization Program for Independent Directors:

The Familiarization Program aims to provide insights into the Company to enable theIndependent Directors to understand its business in depth and contribute significantly tothe Company. All Independent Directors attended the orientation and familiarizationprograms held during the financial year 2019-20.

The details of training and familiarization programs are available on our website at: http://ecoreco.com/Uploads/Downloads/ Familarization_Programme.pdf

14. CODE OF CONDUCT

The Company has laid down a code of conduct for all Board members and senior managementand Independent Directors of the Company. All the Board members including independentdirectors and senior management personnel have affirmed compliance with the code ofconduct.

15. NOMINATION & REMUNERATION COMMITTEE AND STAKEHOLDERS RELATIONSHIP COMMITTEE

As per the requirement of Section 178 of the Companies Act 2013 and Regulation 19 and20 of SEBI (LODR) Regulations 2015 the Company has constituted Nomination andRemuneration Committee and Stakeholders Relationship Committee. The Composition of theabove Committees their terms of reference detailed in the Corporate Governance report.

16. AUDIT COMMITTEE

The Audit Committee comprises of Mr. Srikrishna Bhamidipati as Chairman Mr. DattatrayaDevale and Mrs. Aruna Soni as members. The Internal Auditors of the Company reportdirectly to the Audit Committee. All the recommendations made by the Audit Committee wereaccepted by the Board. The details of meetings of Audit Committee held during the yearits composition terms of reference are given in the Report on Corporate Governance.

17. REMUNERATION POLICY

The Board on the recommendation of the Nomination and Remuneration Committee hasapproved and adopted a Remuneration Policy for selection and appointment of DirectorsSenior Management personnel and their remuneration. The Remuneration Policy of the Companyforms part of this report as Annexure I.

18. VIGIL MECHANISM/WHISTLE BLOWER POLICY

The Company has a 'Whistle Blower Policy'/'Vigil Mechanism' in place. The objective ofthe Vigil Mechanism is to provide the employees Directors customers contractors andother stakeholders of/in the Company an impartial and fair avenue to raise concerns andseek their redressal in line with the Company's commitment to the highest possiblestandards of ethical moral and legal business conduct and fair dealings with all itsstakeholders and constituents and its commitment to open communication channels. TheCompany is also committed to provide requisite safeguards for the protection of thepersons who raise such concerns from reprisals or victimization for whistle blowing ingood faith. The Board of Directors affirms and confirms that no personnel have been deniedaccess to the Audit Committee. The Policy contains the provision for direct access to theChairman of the Audit Committee in appropriate or exceptional cases. The Whistle BlowerPolicy has been disclosed on the Company's website www.ecoreco. com and circulatedto all the Directors and employees.

19. DIRECTORS' RESPONSIBILITY STATEMENT

As stipulated under section 134(3) (c) read with Section 134(5) of the Act yourDirectors hereby state and confirm that:

(a) in the preparation of the annual accounts for the financial year ended on March 312020 the applicable accounting standards have been followed and that there are nomaterial departures from the same;

(b) they have selected such accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the Company at the end of the financial year ended on March 312020 and of the profit and loss of the Company for that period;

(c) they have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;

(d) they have prepared the annual accounts on a going concern basis;

(e) they have laid down internal financial controls for the Company and such internalfinancial controls are adequate and operating effectively during the financial year endedMarch 312020;and

(f) they have devised proper systems to ensure compliance with the provisions of allapplicable laws and such systems are adequate and operating effectively during thefinancial year ended March 31 2020.

20. COMMISSION RECEIVED BY DIRECTORS FROM HOLDING/ SUBSIDIARY COMPANY

None of director is in receipt of any commission from the company and commission fromany holding company or subsidiary company of company. Hence provisions of section 197(14) of Companies Act 2013 are not applicable to the Company.

21. RISK MANAGEMENT

The Company's Risk Management process focuses on ensuring that these risks areidentified on a timely basis and addressed.

The Audit Committee oversees enterprise risk management framework to ensure executionof decided strategies with focus on action and monitoring risks arising out of unintendedconsequences of decisions or actions and related to performance operations complianceincidents processes systems and transactions are managed appropriately. The Companybelieves that the overall risk exposure of present and future risks remains within riskcapacity.

22. AUDITORS:

22.1 STATUTORY AUDITOR

On the recommendation of the Audit Committee and the Board the Members in theirTwenty- Third Annual General Meeting has appointed M/s. Talati & Talati CharteredAccountants (Firm Registration No.110758W) as the Statutory Auditors of the Company for aperiod of five consecutive years from the conclusion of the Twenty- Third AGM of theCompany till the conclusion of the Twenty- Eighth AGM to be held for the financial year2021-22. In view of provisions of proviso to Section 139(1) of the Act the saidappointment was made subject to ratification of their appointment in subsequent AGMs.Pursuant to the Companies (Amendment) Act 2017 the said proviso was omitted with effectfrom May 7 2018. In view of the same no ratification of appointment of Auditors will berequired every year. However as at the time of appointment i.e. as at the Twenty-ThirdAGM it was decided to ratify appointment of the Statutory Auditors in subsequent AGMs.Accordingly it is recommended to ratify their appointment in this AGM for their remainingtenure and payment of remuneration.

M/s. Talati & Talati Chartered Accountants has furnished a certificate in termsof the Act and the Companies (Audit and Auditors) Rules 2014 and confirmed theireligibility in terms of the provisions of Section 141 and all other applicable provisionsof the Act read with the applicable Rules thereto.

Explanation to Auditor's Remark

The Board has duly reviewed the statutory Auditors Report on the Accounts. The notesforming part of the accounts referred to in the Auditors Report of the Company areself-explanatory and do not call for any further explanation.

22.2 SECRETARIAL AUDITOR

Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment andRemuneration of ManagerialPersonnel) Rules 2014 the Board had appointed M/s. Mehta &Mehta Practicing Company Secretary to conduct Secretarial Audit for the financial year2019-20. The Secretarial Audit Report for the financial year ended March 31 2020 isannexed herewith marked as Annexure IV to this Report. The Secretarial Audit Report doesnot contain any qualification reservation or adverse remark.

22.3 COST RECORD AND COST AUDIT

Your com pany does not fall within the provisions of Section 148 of Company's Act 2013read with the Companies (Cost records & Audit) Rules 2014 therefore no such recordsrequired to be maintained.

22.4 INTERNAL AUDITORS

Pursuant to the provisions of Section 138 of the Act read with Rule 13 of Companies(Accounts) Rules 2014 and on the basis of the recommendation of Audit Committee theBoard of Directors in their meeting held on July 18 2020 had appointed M/s. AnitaChoudhari & Company Chartered Accountants Mumbai (Membership Number: 102992) as theInternal Auditors of the Company for the financial year ended March 31 2021.

23. REPORT ON PERFORMANCE OF SUBSIDIARIES JOINT VENTURES AND ASSOCIATE COMPANIES:

Your Company has made investment in 849999 equity shares having face value of Rs. 10/-each in Ecoreco Enviro Education Private Limited which constitute 99.99% of totalshareholding of the aforesaid Company. Pursuant to section 2(87)

(ii) of Companies Act 2013 Ecoreco Enviro Education Private Limited is a SubsidiaryCompany. Further Company along with its Audited standalone financial statements have alsoproduced Audited Consolidated Financial results for the year 2019-20 in order to enableits Shareholders to have insight in the working of its Subsidiary Company.

There has been no material change in the nature of the business of the subsidiarycompany. Pursuant to Rule 5(1) of the Companies (Accounts) Rules 2014 the performance andfinancial position of the subsidiary company and associate company is included for thefinancial year ended March 31 2020 as per Form AOC - 1 attached to the this report asAnnexure II. Further during the year of report no Subsidiary/Joint Ventures/Associatewere ceased to operate.

24. CONTRACT OR ARRANGEMENT WITH RELATED PARTIES:

During the financial year under review the Company has not entered into anycontracts/arrangements/ transactions with related parties which could be consideredmaterial in accordance with the Company's Policy on materiality of related partytransactions. All contracts/ arrangements/transactions entered into by the Company duringthe financial year under review with related parties were in the ordinary course ofbusiness and on an arm's length basis. Accordingly the disclosure of related partytransactions to be provided under section 134(3)(h) of the Act in Form AOC-2 is appendedas Annexure III.

The Policy on materiality of related party transactions and dealing with related partytransactions as approved by the Board may be accessed on the Company's website at http://ecoreco.com/Uploads/Downloads/Materiality- Policies.pdf

25. PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS:

The Company has not given any loan or provided securities but given guarantee on behalfof its subsibiary as covered under section 186 of the Act. Further the Company has notmade any fresh investment falling within the meaning of Section 186 of the Act.

26. CORPORATE SOCIAL RESPONSBILITY

Your company does not fall under the requirements of Section 135 of Companies Act 2013for establishing Corporate Social responsibility (CSR) committee; therefore no suchcommittee was established by the Board.

27. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There are no significant or material orders passed by the Regulators / Courts whichwould impact the future operations / going concern status of the Company.

28. ANNUAL EVALUATION BY THE BOARD OF ITS OWN PERFORMANCE AND THAT OF ITS COMMITTEESAND INDIVIDUAL DIRECTORS

The Board of Directors is committed to continued improvement in its effectiveness.Accordingly the Board participated in the annual formal evaluation of its performance.This was designed to ensure amongst other things that the Board its Committees and eachDirector continue to contribute effectively.

As per Section 134(3)(p) of the Act a statement indicating the manner in which formalannual evaluation was made by the Board of their performance and that of its Committeesand individual Directors has to be furnished to the Members as part of the Board'sReport. Further the Independent Directors as part of their mandate under Schedule IV ofthe Act need to make an evaluation of performance of the constituents of the Board apartfrom their self evaluation. Under this process a structured questionnaire was preparedafter taking into consideration inputs received from the Directors setting out parametersof evaluation; the questionnaire for evaluation are to be filled in consolidated anddiscussed with the Chairman. The evaluation by the Independent Directors has beenundertaken at their meeting held on January 24 2020.The Board of Directors undertookevaluation of Independent Directors at their meeting held on January 24 2020 and placed onits record that the Independent Directors have the requisite qualification expertise andtrack record for performing their duties as envisaged under the Law and they add value inthe decision making process of the Board.

The criteria for evaluation of performance of Directors the Board as a whole and theBoard's Committee are summarized in the table given below:

29. EQUITY SHARES WITH DIFFERENTIAL RIGHTS

The Company has not issued any equity shares with deferential voting rights.

30. DISCLOSURE OF REMUNERATION PAID TO DIRECTOR KEY MANAGERIAL PERSONNEL AND EMPLOYEES

a. None of the employees of the Company is drawing remuneration in excess of the limitsprescribed under Rule (5)(2) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014.

b. Details of remuneration of each Director to the median remuneration of the employeespursuant to Section 197 read with Rule 5 of the Companies Act 2013 are attached to thisreport as Annexure I.

31. VOTING RIGHTS OF EMPLOYEES

During the year under review the company has not given loan to any employee forpurchase of its own shares as per section 67(3)(c) of Companies Act 2013.

32. DISCLOSURE REGARDING ISSUE OF EMPLOYEE STOCK OPTIONS

The Company has not issued shares under employee's stock options scheme pursuant toprovisions of Section 62 read with Rule 12(9) of Companies (Share Capital and Debenture)Rules 2014.

33. DISCLOSURE REGARDING ISSUE OF SWEAT EQUITY SHARES

The Company has not issued sweat equity shares pursuant to provisions of Section 54read with Rule 8 of Companies (Share Capital and Debenture) Rules 2014 during theFinancial Year.

34. CORPORATE GOVERNANCE REPORT

Your Company and its Board has been complying with Corporate Governance practices asset out in a separate report in pursuance of requirement of para C of Schedule V SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 as Annexure V.Practising Company Secretary M/s. Mehta & Mehta certificate confirming compliance ofthe Corporate Governance as stipulated under the said Regulations is also attached to thisReport.

35. MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis Report for the financial year under review asstipulated under regulation 34 of the Listing Regulations is set out in a separate Sectionforming part of this Report.

36. LISTING AT STOCK EXCHANGE

The Equity shares of the Company are listed with BSE Ltd Mumbai and the listing feefor the year 2019-20 has been duly paid.

37. INSURANCE

The Company's assets are adequately insured against the loss of fire and other risksas consider necessary by the Management from time to time.

38. BUSINESS RESPONSIBILITY REPORT

The Business Responsibility Reporting as required by Regulation 34(2) (f) of the SEBI(Listing Obligations & Disclosure Requirements) Regulations 2015 is not applicableto your Company for the financial year ending March 31 2020.

39. DEPOSITORY SYSTEM

Your Company's shares are compulsorily tradable in electronic form and your Company hasconnectivity with both the Depositories i.e. National Securities Depository Limited (NSDL)and Central Depository Service (India) Limited (CDSL). In view of the numerous advantagesoffered by the Depository System members are requested to avail the facility ofDematerialization of the Company's shares on either of the Depositories mentioned above.

40. ENVIRONMENT AND SAFETY

The Company is conscious of the importance of environmentally clean and safeoperations. The Company's policy requires conduct of operations in such a manner so as toensure safety of all concerned compliances environmental regulations and preservation ofnatural resources.

41. INDUSTRIAL RELATIONS

Industrial relations remained cordial throughout the year. Your Directors recognize andappreciate the sincere hard work loyal dedicated efforts and contribution of all theemployees in the growth and performance of the Company during the year.

42. SEXUAL HARASSMENT

Your Company has always believed in providing a safe and harassment free workplace forevery individual through various interventions and practices. The Company always endeavorsto create and provide an environment that is free from discrimination and harassmentincluding sexual harassment. During the year ended March 31 2020 no complaints have beenreceived pertaining to sexual harassment.

43. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTIONPROHIBITION AND REDRESSAL)

ACT 2013

The Company has zero tolerance for sexual harassment at workplace and has adopted aPolicy on Prevention Prohibition and Redressal of Sexual Harassment at the Workplace inline with the provisions of the Sexual Harassment of Women at Workplace (PreventionProhibition and Redressal) Act 2013 and the Rules made there under. The Policy aims toprovide protection to employees at the workplace and prevent and redress complaints ofsexual harassment and for matters connected or incidental thereto with the objective ofproviding a safe working environment where employees feel secure. Internal ComplaintsCommittee has been set up to redress complaints received regarding sexual harassment. Itmay be noted that during the year 201920 no grievance / complaint from any women employeewas reported.

44. INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENT:

The Company has adopted the policies and procedures for ensuring the orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information.

The Company has in place adequate internal financial controls with reference tofinancial statements. The Company's internal control systems including internal financialcontrols are commensurate with the nature of its business and the size and complexity ofits operations and same are adequate and operating effectively. These systems areperiodically tested and no reportable material weakness in the design or operation wasobserved. The Audit Committee reviews adequacy and effectiveness of the Company's internalcontrol system including internal financial controls.

45. SECRETARIAL STANDARDS

The Company has complied with all the applicable secretarial standards issued by TheInstitute of Company Secretaries of India and notified by the Central Government.

46. ACKNOWLEDGEMENTS

Your Directors place on record their special gratitude to all the Governments andGovernment Departments Company's Bankers and all other stakeholders for extending theirassistance and co-operation and encouragement to the Company. Your Directors also wish toplace on record their sincere thanks and appreciation for the continuing support andunstinting efforts of Customer Vendors Employees and all other stakeholders in ensuringan excellent all round operational performance.