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Annual Report 2009-10

Annual Report 2009-10

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Contents
Bringing More to the Table Financial Highlights Chairman’s Message Leadership Team Management Discussion & Analysis Corporate Information Directors’ Report Corporate Governance Report Standalone Financial Statements Consolidated Financial Statements 01 08 10 12 14 20 21 29 37 59

IMPACTING GLOBAL CUISINE... ...by bringing more to the table
LT Foods has been catering to the core traditional market as well as keeping up with global dietary trends. The latter are influenced by health and nutrition information, daily work and meal schedules, environmental concerns, and cultural exchange. Consumers are influenced by convenience, weight management, quickness, and easy storage and serving. What, where, and how much they eat are all getting redefined. LT Foods has the experience and is poised to tap the opportunities arising out of this. It is transitioning smoothly from a branded grain provider to a global food brand with a whole basket of convenient, ready-to-cook, heat-and-eat snacks and dishes. It has a worldwide distribution chain in place. It has many known and accepted food brands in various markets. It is acknowledged for its standards in hygiene, product quality and wholesomeness. LT Foods is now targetting the consumers worldwide and will leverage the strength of its brands to deliver new exciting products and to popularise them. It will thus impact contemporary cuisine. The products are formulated taking into account consumer data, preferences and tastes, and the demands of modern lifestyles. Even more sophisticated processes and packaging are involved in bringing these products to the table. The higher value-addition carried out in the LT Foods product portfolio will increase revenues, consolidate its brands and earn higher shareholder returns.

TODAY'S RESEARCH, tomorrow's recipe

We are what we eat. We are continuously evolving. Ditto with what we eat. We are more nutritionally informed today. We know about body mass ratio (BMR). About eating smaller meals more often. About calorie values. About organically grown. About saturated and unsaturated fats. And all this knowledge is influencing us in what we eat, when we eat, how much we eat. And we are changing and evolving towards a new diet and lifestyle. What won't change, however, is the appeal of food that looks good, natural, appetising and healthy. Taste, wholesomeness, flavour and aroma will rule as ever. At LT Foods, these are not just facts of life. These are our unfolding opportunities.

Holland. It exports foods free from artificial chemicals to Germany. Without compromising on health or taste. rice chips. Eastern Europe. and are targeting a 40% jump in 2010 in the Indian market.WHAT'S FOR LAUNCH? We are establishing and growing brands that are being savoured in homes and restaurants around the world. of which US $ 22. personal care products. fruits. Italy. France. rice chivda and more – that are in sync with today's emphasis on convenience. snack foods. corn. sales of organic products grew by 17% in 2008 to touch US $ 24 billion. We are introducing an array of new value-added rice products – rice cakes. Nature Bio Foods is a pioneer since 1997 in organic agriculture and operates currently in five states in northern India. US. Australia. Concerns about health and also the environment are driving this. flowers.with a fervour. . The world is embracing organically produced items – beverages. cheese. New Zealand and UAE. In North America alone. LT Foods is thus poised strongly to avail of the market prospects from this significant trend that has picked up momentum.9 billion was food. our new offerings are irresistible as ready snacks. We sold about 30% more volume of quality rice than in the previous year. Our wholly owned subsidiary. wool and a whole lot else .

.000 retailers across the world. it's action along several fronts for the LT Foods. . has given us a 50% share of the rice market in the US. are under consideration for the export market. which is set on emerging as a brand of stature among Global Food Majors. Yes. A diverse range of products such as pastes. premium export markets. grapeseed oil etc. where Daawat is already known. health and convenience in food. chutneys.AGGRO ON AGRO – aiming for brand leadership in foods LT Foods has also considerably improved its Supply Chain Management and its customer support. The acquisition of Kusha Inc. we'd like to have our brands relished. A competent and motivated team of about 800 people is working to make it happen. The Company has also taken initiatives in silos and warehousing. and assimilated into popular cuisine and culture.. and has commissioned new processing plants. Improved business forecasts have also helped in maintaining optimum inventory and better procurement. Ernst & Young's expertise has helped us to analyse and re-engineer several of our processes. Branded products. The Company has also launched 2 lb Jars in North America and is taking the Royal brand to Canada. With the support of nearly 300 distributors and about 38. Kusha's well-developed links with the distribution and retail networks there are being leveraged to place a good number of differentiated products in the premium segment across the US. expansion of the organic products portfolio. These have raised our reputation for timely execution of orders and also helped in cost efficiencies. and to stand for taste. sauces. Another key market in which LT Foods has a team in place is the Middle East where its subsidiary Nice International is steadily expanding its distribution and its relationships with retailers. a new value-added range.

Since 1997. The principal advantages of the organic approach are that ecological diversity is maintained and there is richer soil biology. Yes. Nature Bio Foods is actively promoting organic agriculture in a dedicated way. LT Foods and its companies are equipped and ready with their experience. The Group will leverage its strengths along the chain from the farm to the mart. As there is a discernible shift towards organic produce. and to stand for taste. are free from toxins. . our subsidiary Nature Bio Foods Ltd has been promoting Organic Agriculture and was the first company in India to export certified organic basmati rice. Organically grown foods have higher nutritive value. and have the most natural taste. there is also a huge opportunity. Both are vitally important for the future of the planet and to support human lives. from the supply base to the consumer mindshare to create quality brands internationally. . health and convenience in food. Doing things will be more useful than spreading worry. Nature Bio Foods follows complete traceability from the farm to shelf thus fulfilling stringent organic regulations such as USDA's NOP EEC 2092/91 and India's NPOP Working in close association with over eight . and assimilated into popular cuisine and culture.SHIFT IN CONSUMER BELIEFS gifts us with a healthy opportunity Sustainable lifestyle and sustainable technology are pressing quests today across the globe as we combat a situation of environmental crisis. thousand farming families. we'd like to have our brands relished.

.

. The women of the village are imparted training in stitching and embroidery which helps to augment their income. improving their livelihood arrangements. LT Group sees itself as having an even larger extended family. Its value system balances the drive to reduce costs with the need to preserve nature.HOLISTIC VALUES: a wholesome view of people Apart from our nearly thousand employees. There are about fifty thousand people of the farming community whose linkage with the Company is an enduring one. The Eco Social project is underway in many villages where Nature Bio Foods has its organic projects. our numerous retailers. Its brands blend serving convenience with taste and nutrition. At LT Foods. The Group has been contributing to the development of the community by organising training workshops. The Group's holistic approach is strengthening its presence in markets across the world and indeed building a savoury reputation for its brand offerings. and helping to implement advanced farming techniques to raise output. our several hundred distributors. the sense of responsibility is both towards the community as well as to nature.

61 69.132.097.07.874.89 379.31 15.244.02 16.89 2.86 1.51 50.09 11.06.226.380.42 3.45 3.89 367. in Lacs) 106.576.418.46 11.63 3.37 FY 10 OPERATIONAL REIVEW FY 10 Gross Sales Other income Total Revenue EBITDA PAT after exceptional items EPS 1.60 2.84 15.506.091.18 156.36 44.23 2.315.02 11.86 1.67 2.16 2.36 3.281.132.28 FY 09 1.402.08 479.020.94 107.226.95 44.42 3.99 7.416.70 0.281.24 FY 07 FY 08 FY 09 FY 10 FY 06 1.246.69 5.56 FY 08 69.85 MARGINS & RATIO EBITDA Margins(%) PAT Margins(%) Debt to Equity (times) Equity 10.Financial Highlights Total Revenue (Rs.244.37 13. in Lacs) 43.516.100.56 0.74 3.380.05.18 FY 08 FY 09 3.576.99 10.77 (Rs.94 4.89 8.866.416.17 0. in Lacs) EBITDA (Rs.246.943.46 FY 06 .100.20 69.874.943.402.61 14.516.262.288.84 50.74 FY 07 50. in Lacs) PAT after exceptional items (Rs.315.24 2.69 2.99 12.80 4.611.72 2.31 FY 07 2.69 5.418.83 0.94 16.020.24 1.09 8.84 3.06.226.18 12.40 723.74 FY 06 FY 07 FY 08 FY 09 FY 10 FY 06 3.09 0.

53 28.755.900. in Lacs) EBITDA & PAT Margins (%) Total Assets Net Worth EBITDA Margins PAT Margins 90.07 1.11 382.12 361.31 1.802.907.102.21 41.657.07 319.637.51 72.016.55 503.39 14.07 431.20 451.49 22.37 14. in Lacs) FY 06 3.66 255.79 546.42 82.927.069.637.698.87 7.95 90.907.94 24.522.679.657.867.57 417.67 273.Total Assets & Net Worth (Rs.09 365.90 6.390.751.96 FY 06 FY 07 FY 08 FY 09 FY 10 FINANCIAL STRUCTURE FY 10 Net Fixed Assets Capital Work-in-Progress Investments Net Current Assets Misc.538.74 2.51 14.90 (Rs.589. Expenditure Total Assets 22.88 18.16 56.698.776.900.802.657.82 FY 06 FY 07 FY 08 FY 09 FY 10 FY 06 FY 07 FY 08 FY 09 FY 10 6.08.901.78 17.099.816.13 17.82 12.444.43 54.775.70 2.75 183.242.37 7.63 28.996.56 4.44 7.997.54 41.867.13 FY 09 20.80 10.633.51 108.24 10.11 1.90 72.51 FY 08 13.05 33.657.32 41.83 3.07 49.814.867.69 4.44 90.102.903.39 2.23 2.804.96 12.49 2.20 1.63 72.637.17 2.41 1.460.016.32 Net Worth Term Loans Working Capital Loans Unsecured Loans Minority Interest Deffered Tax Liabilities Total Liabilities 24.059.37 1.95 100.08.66 39.421.698.48 12.49 12.069.821.26 17.84 57.82 FY 07 6.926.78 9.10 32.74 48.13 15.59 68.900.32 .77 1.627.99 425.94 28.499.785.534.77 9.09 10.33 303.24 12.

And have been deploying specific strategies to penetrate deeper in these markets. global economy returned on the path to recovery. The thrust on inducting best available professionals as employees. Indian Economy returned back on the growth path during the current year and recorded a GDP growth of 7. Aided by fiscal stimulus and policy changes across several major economies. Having crossed the revenue landmark of Rs. as indicated by the Central Statistical Office of the Government of India in its Revised Estimate. in distributing branded FMCG in the USA. your Company continued its journey forward through the fiscal year 2009-10.Dear Shareholders. The pace of recovery was varied though – moderate in many advanced economies and robust in some emerging ones including China and India. in developing a promising bouquet of organic products and brands. we have been brainstorming on what could be that effective insulation. We did seek professional assistance from renowned consultants in these areas and succeeded in not only expanding our reach but also our off-takes. We have astutely been maintaining an even balance between our domestic and exports sales. The year gone by turned out to be a year of consolidation for economies across the globe. We also transited from being a family owned family managed company to a family owned professionally managed company. consultants and/or advisors was complemented with an earnest attempt to imbibe a professional culture in the rank and file of our Company. notwithstanding the vagaries of any kind including erratic monsoon. We managed to align our key distributors in overseas markets with our corporate goals through a slew of measures and expand our presence . Over the past couple of years. With a view that monsoon’s unpredictable behavior will keep impacting the input cost in our business. but for the dismal performance of the agriculture sector. It was in this direction that we transited from being a rice company to become an integrated food company and in the process we added new revenue streams – in distributing staples in India. We have been finding answers and implementing and integrating them with the key objective of seeking ‘sustainable growth’. Your Company has inducted key stalwarts from critical domains like marketing communication and brand development and value-added product development. we continued on developing an effective insulation for our business. Our concerted efforts to revamp Sales and Distribution function and switch to best practices in Supply Chain Management brought significant results in the current year.4%. 1000 crore in the previous year. The growth could have been higher. Our Advisory Board has got a fillip with induction of few luminaries during the year and is effectively guiding the management on strategic issues.

Former Secretary of Agriculture. Company has worked on changing the corporate identity and invested on new packaging. Chairman & Managing Director. governed by a corporate objective of sustained value creation for all stakeholders. agents. Advisors and Consultants. vendors and partners. On behalf of all our stakeholders. LT Foods is ready to enter the value-added snacks business with rice chips and various namkeens. Both of them bring extensive experience. I welcome them on our Board. The robustness of our business model and its prospects on long term value creation got vindicated when a leading Agri Fund. retailers. we have maintained very stringent quality measures across our operations – from seed to paddy to processing to packaging. going forward. The new packaging is aimed at educating the consumers on diverse usage of the chosen rice varieties. We are poised to launch these product as health snacks under a new brand ‘My My’ in the second half of the fiscal year 2010-11.CHAIRMAN’S message through aggressive participation in various trade shows and fairs. GOI and Rajesh Srivastava. We will go ahead with regional launch in the initial phase and follow up with more variants and take it to more regions. We were amongst the first adopters of silos for storage of rice and did introduce silos at all our units. In the last year. With a view that our consumers deserve the best quality and/or value for money. created. Going forward. 35 crores for construction of 4 wheat silos of 12. their trust in LT Foods business vision and plan to emerge as a global rice food brand is a bigger gain in my opinion.500 MT each. distributors. These products have fat content as low as 7% and score highly over other snacks available in the market which contain fat content of 25-30%. I thank our friends in farming community for their participation in our value co-creation programs. I remain thankful to our lenders and shareholders for their continued trust in our capabilities. Such a meaningful vision could not have been furthered during the current year without valued contribution of all our stakeholders. promoted by Rabo Bank placed private equity in your Company in the current year. which will go a long way in achieving sustainable growth for your Company. Rabo Equity Advisors have joined us on the Board of Directors. With Best Regards. While the infused capital will go a long way in funding our business expansion. My vision for future of LT Foods revolves around ‘Global Food Brands’. During the year. I look forward to a brighter future for LT Foods and invite all the stakeholders to make an even greater participation and partake from our sustained value creation drive. Vijay K Arora . aided by processes that marry the consumer insight with the farmer insight successfully. We are also at advanced stage of introducing other products on health and convenience platform. Our expertise with silos opened another revenue stream in the current year with the Government of Punjab awarding us a contract worth Rs. I place on record my sincere appreciation of the contributions made by your Company’s Board of Directors. Last but not a bit least. Radha Singh. I acknowledge the valued contribution of all our employees. managed and grown by ‘Professionals’.

Surinder Arora. Chairman & Managing Director Standing left to right: Mr. Mr. Ashwani Arora.LEADERSHIP TEAM Sitting: Mr. Joint Managing Director. Mr. Joint Managing Director. Ashok Arora. Vijay Kumar Arora. Joint Managing Director .

J. Memani Former CMD E&Y India Ms. S. Chairman Punjab National Bank Mr. Rajesh Srivastava Chairman & Managing Director Rabo Equity Advisors (A subsidiary of Rabobank) Mr. C. Radha Singh Former Secretary of Agriculture. 2010 . GOI Mr. Gupta Ex. Sharma Former Secretary Ministry of External Affairs Sunil Alagh Former CEO Britannia Mr. Abhiram Seth Former Executive Director Exports & External Affairs Pepsico India Holdings (Pvt. K. Pramod Bhagat Lawyer Leadership Summit at Tarudhan valley on 26th February.Mr. C.) Ltd Mr. . N.

CMD.2%. showed a sustained growth trend quarter over quarter. released in April 2010 by International Monetary Fund estimated the world output to rise by about 4¼% in 2010. along with a notable recovery in international trade and global industrial production. An increasing number of countries have registered positive quarterly growth of gross domestic product (GDP). Rajesh Srivastava.2 5. we are proud to partner with the LT Foods Group. Since we invested in LT Foods and additionally in its subsidiary Daawat Foods Limited. LT Foods will be known as the best rice based foods company in the country within the next few years. India once again emerged as the second fastest growing economy amongst the major economies of the world.7 6. which was fueled primarily by Government’s stimulus and easing out of liquidity scenario in the first half. including on governance. 0. construction. hotel. transport & communication’ Last year when we were scouting for suitable bid in the grain sector we came across LT Foods Limited.5 Agriculture & allied sector 9. Rabo Equity Advisors contributed more than 50% to the GDP Importantly.2%. Rising public deficits and debt in some economies might lead to sovereign defaults – a risk which the current recovery can ill afford. The first interaction with the Promoters and their senior management revealed the sincerity in approach and commitment to business which are two critical attributes for any Private Equity firm. and ‘trade.MANAGEMENT DISCUSSION & ANALYSIS ECONOMIC OVERVIEW The global economy is recovering at varied pace – moderately in many advanced economies and steadily in most emerging economies. following a ½ % contraction in 2009. The revised estimate of Central Statistical Office (CSO) indicated the growth in Indian GDP to be 7. While money markets appear to stabilise with equity markets rebounding. access to credit remains difficult for small & medium size enterprises.7 4. The sectors of manufacturing. What clinched the issue for us was the receptivity for our inputs. The Governance has improved by several notches and I have no hesitation in saying that. the agriculture sector bettered its performance Indian GDP Growth vis-a-vis Agriculture Growth (%) Total GDP 9.2 3. Indian Economy Having arrested the impact of the global downturn successfully in the previous year.6 7.4%. World Economic Outlook.7 9. and an anxiety to imbibe all sustainable business ideas.7 1. There have been modest to radical improvements in all business and operating areas. The economy posted faster recovery. In summary. The deficient monsoon led to considerable pressure on the farm output and the same was reflected in food inflation touching record high during the year. Consolidating faster. In the backdrop of earlier estimates predicting a contraction of 0. Indian Economy continued on the path of consolidation during the fiscal year 2009-10.2 . and rise in private demand and coinciding acceleration in industrial output in the second half of the current year.2 FY 06 FY 07 FY 08 FY 09 FY 10 with a marginal growth of 0. all these sectors . at the current run rate. the Group has come a long way.

02 1. In India. Improvement in logistics.0% in FY 11.e. despite the overall agricultural growth slipping to 0.8 1. In contrast. With food processing gaining industry status gradually in India.35 1.The Union Budget 2010 has pinned hopes on improving upon the agricultural growth to 2. basmati is being preferred as a staple in MiddleEast markets and is increasingly finding its way on platters of European and American consumers. While the branded rice constitutes ~10% of the Indian rice market.687 crore in value terms in FY 09 in comparison to Rs. These encouraging trends.35 4. shall help Indian economy return back to the GDP growth range of 8. In FY 09.41 .79 93. India is the largest producer and exporter of basmati rice and commands premium over its traditional rivals in terms of prices and quality.2% in the next year (FY 11).000 crore. crore) 9. which is broadly divided into two segments i.5-9. The growth in exports of basmati from India is expected to have sustained in FY 10. gradual de-commoditisation of rice and accelerating pace of modern retail is likely to augment the growth of branded rice in India.2%.477. export of non-basmati rice shrunk to Rs. branded basmati constitutes less than 15% in volume terms. with its strong franchisee network and a significant export market share is poised to reap the benefits of growing penetration of branded basmati.36 Production (Million tonnes) 96.477 crore in value terms. improving per capita income and lifestyle and evolution of organised retail.6% of total exports from India. On the international front. The leading export destinations include Saudi Arabia. Kuwait.13 43.66 FY 07 FY 08 43. following the restrictions imposed by the government. Of the total basmati exports. Production of basmati has recorded a 3% CAGR in the last three years whereas domestic consumption has been increasing at over 10% for the same period. 1. 13% of overall agricultural exports and 1. LT Foods. The rice industry in India is worth around Rs.91 FY 09 45. 9.556.58 Rice is the second largest produced cereal in the world and is cultivated in over 100 countries. rice accounts for nearly one third of its agricultural production.000 Metric tonne) Value (Rs. the basmati rice exports from India recorded an impressive growth of 118% and reached Rs.15 83. basmati and non-basmati with the non-basmati constituting over 95% production by volume.91 FY 05 FY 06 43. rice is a premium rice variant grown in India and Pakistan.409 crore in FY 08.81 41. INDIAN RICE INDUSTRY Basmati Rice Exports: India Quantity (. the Indian rice industry is witnessing a gradual shift towards branded rice.045. Rice cultivation and production: India Cultivation Area (Million hectares) 91.69 99. the UAE and the US. its demand has been growing at around 15% in the domestic market and is likely to catch up with the international trend of ~25% annually. together with the prediction of a favourable southwest monsoon and accelerated spending on infrastructure development. the rice sector is expected to grow at an increasing momentum.183. 1.344.71 2. With production share of 53%. Basmati FY 07 FY 08 FY 09 With rapid urbanisation.792.00. 7.

Food plant of Daawat Foods Limited (a subsidiary Company) also got added during the year. Pulav. Mr. The advisory board consisted of luminaries like Mr. C. Biryani. 50 crores and the plant is poised to commence commercial production in the rice season 2010 (October 2010). consolidation of distribution network remained the key focus. Memani. some of which are still underway. Ex-CEO of Britannia and a leading authority on brands and marketing as a Consultant for relaunching and propagating the rice brands of LT Foods. The Company. Ex-ED. Mr. The estimated cost of this project is Rs. The Company appointed Ms. IAS (Retd. and introduction of Annual Operation Plans (AOPs) for all verticals and group companies commencing current financial year. These initiatives include the relaunch of basmati rice in different usage-based variants and new packaging. Ltd. LT Foods today has probably the most distinguished Board amongst the companies in the grain sector in India. It has undertaken several initiatives during the year in this direction. E&Y India. Abhiram Seth. a wheat processing facility in Bhopal (DFL) during the year. Rajesh Srivastava. Focus on Professional Pool: LT Foods furthered its vision of transforming as a professionally governed and managed company during the year. Yemen and Iran in the coming years. J. C. Chairman & Managing Director. and fillip to organic business under Nature Bio Foods. N. CMD. Rabo Equity Advisors. The Group has hired the services of Mr. These countries are heavy regularly on various strategic issues. On course to emerge as a global rice food company offering a diverse bouquet of basmati rice and rice based value-added products. The Company commenced the setting up of grain silos in Punjab for PUNGRAIN. Former Secretary of Agriculture. K. Sharma. Rajesh Srivastava. combined with the existing Director. developing and further strengthening our market penetration in India and abroad. on its Board of Directors during the year. We continued expanding and diversifying our value-added product portfolio. Former CMD. Infrastructure Development: The construction work on ‘fully automated parboiling mill’ commenced at Amritsar during the year. we stayed focused on creating future growth foundations. With the induction of these new Directors. IFS (Retd. Mr. Mr. the Company introduced a range of new products for specific usage like Original Aroma. Former Chairman. He has already demonstrated his superior knowledge by forcing radical changes in the product design and positioning. Hutchison. Subsequently. this mega facility will deploy new parboiling technology that guarantees odour-free parboiled rice. . Punjab National Bank. Initiatives in exports: During the year under review. DAAWAT Pulav Basmati Rice. Former CEO. The Company concentrated its Middle East focus in Dubai & Qatar during the year and intends to replicate the learning and success in Saudi Arabia. Business Process Engineering across the Company under the advice of Accenture. Radha Singh.). At LT Foods. GoI and Mr. launch of rice based snack foods on the health/ nutrition platform under the brand ‘My-My’. infrastructure and people.SDCL and Nature Bio will also have Independent Directors. These include revamping of Sales and Distribution chains through the advice of Ernst n Young. Kuwait. S. Sunil Alagh. DAAWAT Biryani Basmati Rice. and investing in brands. Kheer and even everyday cooking. Pepsico has been inducted on the Board of Daawat Foods Limited. He brings with him rich experience of F&B business and is adding value to the current and future operations.REVIEW OF OPERATIONS LT Foods entered the fiscal year 2009-10 with tremendous optimism despite the uncertainties of global downturn of the previous year still hovering around. we continued balancing our focus between harvesting today and investing on tomorrow. has created an advisory board which meets Improving Operational Efficiencies: The Company has effected significant changes in its operating infrastructure by undertaking various steps including seeking external help from experts. Gupta. Ashwani Windlas. With installed capacity of 12T/hr. Rabo Equity Advisors Pvt. The Group remained focused on diversification into related areas. led by its promoters’ vision to leverage strategic value of eminent professionals. and DAAWAT Rozana. DAAWAT Super Basmati Rice. In due course of time the Board of other subsidiary companies . and Mr. The statutory auditor for the company and its subsidiary ‘Daawat Foods Limited’ is being changed to Grant Thornton from the fiscal year 2010-11. the Company’s brand portfolio got enriched with DAAWAT Traditional Basmati Rice. New Products: During the year.).

315 lacs. 1. 5. 1.490. Its subsidiary in the USA – Kusha Inc.82 lacs as at 31.201. it participated in Anuga – a leading fair on food & beverages organised at Cologne. Moreover. REVIEW OF FINANCIALS (Consolidated Accounts) (Amount in Rs. majority of which is dependent of rain.51 3. 4. .77 (16.03. as raw material constitutes a major At Rs.648.52 lacs to reach Rs.143.020.56 Change (%) 0.43 lacs from Rs. 21. Earnings per Share. Reserves and surplus increased to Rs.764.33 lacs as at 31. in a short supply situation the yield goes up with rising prices and sets off the impact of fall in stocks to some extent.81% due to induction of Private Equity in November 2009.07. Current liabilities and provisions decreased to Rs.37 13. our approach to risk management is a preventive and preemptive one. During the year under review.177.94 3.81) Financial Condition (Amount in Rs.813.77% to reach Rs. loans and advances increased to Rs.85 lacs to reach Rs. wholesale and institutional sales and restructured manpower deployment to suit the specific needs of each channel.44 lacs in the previous year.30 lacs a year ago.97 During the year.226. recording an increase of Rs.59 lacs in the previous year.84 lacs on account of issuance of fresh equity shares including bonus shares – by capitalisation of profits and fully paid up shares issued for considerations other than cash.56 lacs over the previous year. recording a growth of Rs.. Profit before tax grew by 14.07. Adoption of information technology at distributor level was done during the year to facilitate daily billing updates and demand forecasting. lacs) Fiscal Year 2009-10 Share Capital Reserves and Surplus 2. 2.99 15. social and environmental factors. The Company successfully furthered its twin objectives of launching new products and brands to the consumers as well as soliciting and identifying new distributors for respective regions/countries.57 lacs in the previous year.10.03 lacs from Rs.29 lacs in the previous year.401. lacs except for EPS) Fiscal Year 2009-10 Total Revenue Profit Before Tax Profit After Tax Earnings per Share (Rs.05 lacs a year ago. 48.695.) 1. The Company maintains a healthy stock to counter shortage in supply. 4.242. In order to enthuse distributors.50% to reach Rs.03. 14. 384.46 11.315.800. contracted by 16. 16. Environmental factors like excess or deficient monsoon may impact the quality and quantity of raw material procured.380 lacs.03.50 9.490. total revenue recorded a growth of 0.611. The Company expects to deploy the parboiling capability of its upcoming plant at Amritsar to meet the future demand from these countries. We stay alert and attentive to the set of prevalent and potential risks that might affect our business and have put in place a robust risk management framework for identification.575.14 lacs from Rs.42 3.611. 68. Sundry debtors increased to Rs. Leading tomorrow’ and ‘Rising Star’ with Cruise to Hong Kong and Trip to Thailand as respective rewards for achievers.10 from Rs. Procurement Risk The procure of right quantity of quality raw material at the right price is imperative for our business.177 lacs during the year. assessment and management of risk.68 lacs as at 31.03. 59. in turn impacting our business. The Company has established the ground for the launch of value-added products in this region in the second half of the coming fiscal year.84 21.10 from Rs. 1.380. 68.28 Fiscal Year 2008-09 1. 16.576. Profit after tax grew by 9. At LT Foods. Environmental Risk Our raw material is largely sourced from agricultural produce of India. 4. 63.785.471. The Company has been furthering its brand promotion and distribution network in the overseas markets through participation in key trade-fairs across potential geographies. though. It is gearing up for handling sales of other cereals and food products in the US. Inventory increased by Rs.consumers of parboiled rice.10 from Rs. Strengthening Distribution Network: The Company continued to strengthen its distribution network with customised strategy for various channels like retail.02 4. and Gulfood – Middle East’s leading exhibition on food service and hospitality sectors.092.02 lacs as at 31. Company’s storage capacities too are well equipped to counter heavy rains. 3.626. The Company is successfully leveraging of its domestic distribution channel for distribution of other food products under its subsidiary ‘Staple Distribution Company Limited’. various incentive trips were formulated during the year including ‘Leaders today. 9. During the year.53 Fiscal Year 2008-09 2. Net current assets increased to Rs.75 14.547.53 lacs during the year. Germany every alternate year. – got strengthened with the induction of a stalwart as Vice Chairman.75% over previous year. The reward structure was recast to include the range of company brands/products sold to form another judging criterion besides turnover. Other current assets including Cash and Bank Balance reached Rs.14. 82. RISK MANAGEMENT Our business may be impacted by numerous macroeconomic.06. our share capital increased by Rs.

integrated pest control management. Export Risk A substantial portion of our revenues come from exports to the US and other overseas markets.’ handles ~52% of the rice exports to the US market. we have entered into contract farming. 850 people were employed by the Company and its subsidiaries. Having attained significant scale in our business and vibrancy in our brands. any change in government policies to export it may also impact our business. In order to ensure the cost competitiveness of funds vis-a-vis that of competition. three fourth of the total cost. We are also increasing our exports to other countries Canada. We are consistently strengthening our market presence by restructuring and realigning our sales and distribution methodology with the help of professionals/experts. In order to understand the fast changing and evolving expectations of consumers from our brand. Interest Rate Risk With material cost alone constituting approx. Australia. maintaining product superiority and making significant investment towards raising our brand equity. As at March 31. In order to mitigate this risk to the extent possible. A team of highly experienced professionals guides on the steps to be taken to mitigate the exchange risk. . supervise through the growing season till cultivation to ensure the quality and quantity of the paddy procured. component and is critical to our brands too. Farmers being a key stakeholder in our business. Presently Company is exporting its product to more than 45 countries. We deploy a pool of diverse professionals as advisors in order to stay ahead of competition and counter this risk. the Company is introducing various talent attraction and retention measures. These initiatives are aimed at not only increasing our brands’ market-share but also MATERIAL DEVELOPMENT IN HR The Company has traditionally had low attrition rate. Currency Risk With exports contributing almost half of our total revenues. Our Company together with its US based subsidiary. Instead of being complacent with it. Foreign Exchange position is reviewed on going basis by the management. Any change in the socio-economic environment in those markets may impact our business. The spirit of collaboration and commitment to create enduring value for stakeholders holds the Company’s HR Pool together. Contract farming also reduces our dependence upto some extent on purchase from open market. ‘Kusha Inc. Rice being a primary staple in the country. Middle Eastern countries to reduce our dependence on a small base. It is in the process of engaging an HR Firm for mapping the HR needs of the Group over the next 5 years in furtherance of the business vision set by the Group. designations. We counter this risk by operating in the premium branded rice segment. grades. ranks. Domestic Market Risk Increasing competition in the domestic market coupled with customers’ rising expectations of value for money may adversely impact our business. pay-scales and career progression planning. our business is working capital intensive and any rise in the cost of funds may impact our business. we continue making significant investments towards tracking consumer’s behavior and respond with their expectations from the brand. We lay special emphasis on utilising low-cost funds. we have consistently been working towards increasing their and their farm’s productivity. It has created proper HR architecture with job profiles. These initiatives help farmers with better and higher yields and also make farming cost-effective. And help us achieve on our social agenda of bettering the lives of farmers alongside meeting our business objectives. New Zealand. Our strategy of evenly balancing the revenue mix between exports and domestic sales is also aimed at mitigating the export risk in adverse times. curing and grading techniques. top management evaluates the comparative details on going basis. We deploy our sophisticated testing machines for ascertaining the quality of paddy being procured. the Company manages to raise adequate funds/debts at competitive rates. It is proposing to introduce Employee Stock Option Plan (ESOP) for the middle and senior management personnel across the Group during the year 2010-11. We supply quality seeds. and post harvest product management. We proactively educate them on modern farming practices.enhance the productivity of our existing distribution network. We mitigate this risk with a well defined policy for hedging of exports. any adverse fluctuation in the exchange rate may impact our business. We regularly undertake several initiatives to penetrate in new geographies to diversify the risk. 2010. It introduced fixed and variable pay structures for the middle and senior management personnel in phase I where the ratio between the fixed and variable will steadily become 60:40.

it has contrasting business avenues like domestic and exports market. Going forward. It has operational and capital expenditures. organic and health/nutrition appeal. significant changes in political and economic policies in India. It has stayed focused on deploying and leveraging best professional talent from within and outside in shaping up its long-term growth platform. The Internal audit process continuously monitors the status of operating systems and policies and their compliances and any deviation thereof and the quality of management decision making process. which is staffed with professionally qualified people. brands business and distribution business.Internal Control Systems and their adequacy Our Company believes that internal control is a necessary concomitant of the principles of governance and freedom of management should be exercised within a framework of appropriate checks and balances. The adequacy and effectiveness of the Internal Control Department is reviewed by the Audit Committee of the Board which recommends control measures from time to time. In our effort to build a robust internal audit and control system. it is likely to record twin benefits of increasing revenues on account of its capacity and market expansion and increasing profitability on account of its improved product quality/brands. and suitable control activities are designed to address and mitigate the significant risk. Under the framework. Tax Laws. basmati rice and value-added rice products. Standard operating procedures in line with global practices have been laid along with authority control. CAUTIONARY STATEMENT Statements in this Management Discussion and Analysis describing the Company's objectives. various risk facing the Company are identified and assessed across all levels and functions. projection estimates and expectations may be "forward looking statements" within the meaning of applicable laws and regulations. the Company will be able to smoothly face the challenges of sustainable growth in future. enhanced operational efficiencies and the addition of high margin value-added products in the snacks segments. It is on the basis of all these parameters that LT Foods’ outlook remains very bright and promising. Planned monthly periodic reviews are carried on resulting in identification of control deficiencies and formulation of successfully balanced between a narrow business focus and diverse business view simultaneously. . As a result of its sustained endeavours. litigation and other costs. It has successfully managed to infuse capital for its time bound action plan to improve efficiency and business performance. We believe that by building a strong foundation of the internal control systems. Actual results may differ substantially or materially from those expressed or implied. we have built an independent internal audit function. Important developments that could affect the Company's operations include a downward trend in food industry. whose experience and expertise will help the Company to build and execute adequate checks and balances in a systematic manner. Future Outlook LT Foods has consciously and tirelessly built a robust business foundation that transcends the traditional grains business.

3055160. Sector . Bahalgarh.: 0124 . Amritsar Punjab .3055100. Haryana . Nominee Director Ms. Fax: 011 . Fax: 0124 . Aurobindo Marg New Delhi . GT Road. Sonepat . Vijay Kumar Arora.110017 Tel. Joint Managing Director Mr. Chairman & Managing Director Mr. N. Madhya Pradesh . Radha Singh. Delhi Bankers Oriental Bank of Commerce (Lead Consortium) IDBI Bank Limited HDFC Bank Limited Bank of India Registrar & Transfer Agent Bigshare Services (P) Limited E. Joint Managing Director Mr. Green Park. Joint Managing Director Mr. Surinder Arora. Independent Director Mr.26857099. Fax: 022-28475207 Email: ipo@bigshareonline. Pramod Bhagat. Independent Director Compliance Officer & Company Secretary Mrs. Jagdish Chandra Sharma.com Contact person: Mr.143022 Auditors M/s TU & Co Chartered Accountants. Institutional Area Gurgaon.2/3. Sonepat . Bhopal.462046 Kamaspur.: 011 .131001 Varpal. 119.400072 Ph: 022-28470652.44. Mumbai . Independent Director Mr.K. . Bahalgarh.143303 Mandideep. Saki Naka Andheri (East). Punjab .V. Distt. Tel. Ansa Industrial Estate Saki Vihar Road. Mohan Registered Office A-21. Monika Chawla Jaggia Plants 43Km Stone.26859344 Corporate Office Plot No.131001 Phoola Road. Ashok Arora.CORPORATE INFORMATION Board of Directors Mr.122002. Rajesh Srivastava. Ashwani Arora.

70 57. TRANSFER TO RESERVES Subsequently.05 3. 10 each) for the year 2009-10. OVERVIEW Agriculture together with the Food Processing Sector forms an important constituent of the Indian Economy and holds key to the overall GDP growth agenda of India. financial year 2009-10 proved to be a challenging year. an amount of Rs.5% ( Rs. 37. Numerous new channel partners were enrolled and existing ones were made more efficient. Methodical approach to forecasting demand improved our capability of procuring the requisite raw materials on time.020.04 lacs and DFL also has recommended a final dividend of 12. Your Directors are pleased to present the 20th Annual Report of your Company together with the Audited Statement of Accounts for the Financial Year ended on March 31.177. 2010 have recommended a final dividend of 15% (Rs 1. synergising all levers.DIRECTORS’ REPORT Dear Members. 2010.50 per Share of Rs.16 lacs and PBDIT of Rs 1. 2010 are as follows: ( Rs. 4. The dividend payout by the Company.05 3.02 4.648. The dividend payout by DFL would be Rs.275. DIVIDEND Your Company is pursuing sustainable growth through numerous expansions & diversifications in the food sector. including distribution. 11. from a long term perspective.28 1.391.10 2008-09 1. Our flagship brand. 1. our supply FINANCIAL REVIEW FOR THE YEAR Coming on the back of the global meltdown and financial crisis of the previous year.28.21 lacs inclusive of Dividend Tax. which forms part of this report. The Company will continue to focus on channel initiatives. 279. the Company achieved Sales Turnover of Rs. will total Rs. During the year under review. visionary entrepreneurial leadership. Your Board of Directors. More importantly. ‘Daawat’ has increased its presence across the length and breadth of the Country.94 3.06. best available advisors and consultants. market activation and advertising. 21 . your Company managed to achieve a modest growth in the domestic market during the year. It will continue to sharpen its edge through service. 10 each) for the financial year 2009-10.) 11.11 distribution tax of Rs.05.42 628.00 Company stayed focused on overcoming two key challenges of improving operational efficiency and cost rationalisation. The Company’s healthy growth over recent years shall be attributed to a set of key factors like a focused business strategy. 1.50 billion fund based facilities of chain got revamped and we achieved noteworthy cost savings.51 862.50 2008-09 13.(pronounced as triple B minus) rating to 0. at their meeting held on May 26. processes and human capital management.315. in Lacs ) Particulars Sales and Other Income Profit before Tax Tax on Profit Profit after Tax Dividend* Tax on Proposed Dividend Transfer to General Reserves 2009-10 1.78 lacs including the dividend CREDIT RATING ICRA has reaffirmed the LBBB. FINANCIAL RESULTS The performance highlights of the Company for the year ended on March 31.576.77 lacs.10 lacs is proposed to be transferred to the General Reserves. subject to the approval of shareholders’ in the ensuing Annual General Meeting 2009-10 Earning per Share (Rs.56 1. The Company undertook proactive initiatives to create an efficient and robust supply chain. the * Proposed. The Company is currently working on revamping its identity and introducing new packaging for its key brands.07.25 per share of Rs. highly motivated and committed talent pool and best-in-class practices across technology. The details of the Company’s operations have been provided separately in the Management Discussion Analysis Report. A slew of initiatives were rolled out during the year to improve productivity through effective application of technology towards improving the manufacturing process and leveraging the sequential cost and quality advantages. trade marketing. At the same time. As a result. which brings its inherent cost advantages. It assumes greater significance for its ability to fillip the inclusive growth aspirations of a country with a billion plus people.46 462.5 billion term loans and Rs. which is subject to the approval of shareholders at the ensuing Annual General Meeting.288.) Dividend per Share (Rs. it is responsive to the dividend expectation of its shareholders. when approved. which requires the Company to make qualitative investments on continuing basis.47 76.24.85. BUSINESS OVERVIEW Amidst difficult macro-economic environment.315. The Company’s Profit after Tax was Rs. 2010 also forms part of this report. Audited Consolidated Financial Statement for the year ended on March 31.46 lacs and Earning per Share stood at Rs.35 305.81 275. where it employs more than 50% of country’s workforce. 3.380. quality and customer insight.37 222.

reducing the cost of logistics. Together with our subsidiary companies. Rice Noodles etc. During the year. Rice Chips and several rice based snacks. 3. packing and dispatch of Rice” in accordance with the requirements of the international standard ISO 22000 -2005 by SGS. proven track-record in basmati rice business and long standing relationships with clients in domestic and export markets. Quality Management System of Company’s Bhopal plant is certified for “Paddy receiving. and insertion of Article 125(c) in the Articles of Association of the Company and the results were declared on December 5. the Company has bagged the ‘Wheat Silos Project’ on Build-Own-Operate (BOO) basis for a period of 30 years from Punjab State Grains Procurement Corporation Limited of Government of Punjab for storage and handling of 50. Mauritius and Real Trust. The Company’s core strategy will be to strengthen current brands through product design.500 lacs to Rs. we are embarking on new food products like Fast Cooking Brown Rice. modernization and diversification. Rice Chips. approval of the shareholders was obtained by means of a Postal Ballot for alteration of Articles of Association by insertion of Article 60A with respect to right of minority shareholders and the results were declared on January 15. 2010. CAPITAL AND PREFERENTIAL ALLOTMENT OF SHARES The authorized capital of the Company has been increased from Rs. SUBSIDIARIES Indian Subsidiaries Daawat Foods Limited (DFL) This value added arm of the Company was set up in Mandideep. approval of the shareholders was obtained by means of a Postal Ballot for alteration of clause 3 and 4 of the Main object of the Company to include the provision that the activities of the Company will be in compliance with applicable laws. it was recertified for International Accreditations of SQF. 2001. DFL has procured Foreign Investment in the form of Equity Capital from Indian Agri Business Funds of Mauritius. 2009. exploring virgin markets and expanding our customer-base during the year. 2001.000 lacs in order to meet its growth objectives during the year. delivery and introduction of new and differentiated products. DFL is a majority owned subsidiary of your Company. an arm of the Dutch based Rabo Bank. AAA rated bank which is also a key contributor to the Fund. going forward. 1956 (the Act) and in terms of Section 192A of the Act read with Clause 4(f) of the Companies (Passing of the Resolution by Postal Ballot) Rules.5 billion non fund based facilities of the Company. Your Company is also exploring other segments in the food industry in addition to contemplating line extensions in order to pursue sustainable growth. Subsequent to the approval of shareholders. EXPORTS As a fallout of recent slowdown. Company’s ensuing line of healthy snacks and other products shall further strengthen its prospects. The Company has successfully procured finance for its operations at competitive rates on the strength of its excellent track record. and financial strength and discipline. Indian Agri Business Fund is managed by Rabo Equity Advisors. 2.e Rice Cakes. 2009. Your Company is geared up to participate in the growth of this sector and leverage its pioneering leadership towards greater value creation from the sector. POSTAL BALLOT FOR ALTERATON OF MEMORANDUM AND ARTICLES OF ASSOCIATION During the year under review. 0. The above reaffirmations takes into account our experienced management. the Company decided to bring in Country’s leading business process consultants to tread the path of success in domestic operations. the business scenario in overseas markets remained highly competitive and challenging during the year. At present. We opted to consolidate on the gains made in the earlier years and relook at enhancing efficiency. Equity was inducted by way of preferential allotment of shares to the strategic investors in the Extra Ordinary General Meeting held on October 26. BUSINESS OUTLOOK The Government’s continued thrust on Food Processing Sector and development of its requisite infrastructure will continue propelling the sector on healthy growth over long term. BRC. in terms of Section 31 of the Companies Act. We remain committed to respond to consumer needs and expectations with products of highest quality. RECOGNITIONS AND ACCREDITIONS The biggest plant of the Company situated at Bahalgarh bears a true testimony to our quality standards with ISO 14000 certification by SGS.the Company. UK. As a policy. Rice Cakes.485 equity shares were issued to India Agri Business Fund Limited. In terms of Section 17 and 31 of the Companies Act. processing. ICRA has also reaffirmed the “A3” (pronounced as A three) rating to Rs. During the year. . Aided by a series of such initiatives and led by a farsighted and forward planning management team. DOMESTIC OPERATIONS As a part of our never ending endeavor to improve our systems and processes. FINANCE Being in a working capital intensive business. The outlook on the rating remains stable. The systems and approach suggested by them has resulted in improved operations and reduced cost of operations.000 MT of wheat. Bhopal in December 2007 for production of parboiled rice and other value added rice products i. the Company avails large working capital facilities from a consortium of banks. OU (Orthodox Union) and EIA. the Company introduced private equity from India Agri Business Fund for funding expansion. UK. During the year under review. Its focus on understanding and responding to consumers’ needs and expectations shall drive increased takeoff of its products. A total of 38. the Company hedges forex risk for the pending export orders in hand. 1956 (the Act) and in terms of Section 192A of the Act read with Clause 4(f) of the Companies (Passing of the Resolution by Postal Ballot) Rules. QUALITY Quality has long been our effective differentiator in domestic as well as overseas markets. the Company had sought approval of the members vide postal ballot for alteration of the Memorandum and Articles of Association of the Company. Again.48. the Company will continue exploring and implementing value-creating steps to enhance its market position.

Certificate of CEO/CFO. Tea and Dried Mangoes. The Company is poised to launch its organic brand ‘Ecolife’ in the domestic market soon. The statement relating to subsidiaries pursuant to Section 212(1) (e) of the Companies Act. your Directors provide the Audited Consolidated Financial Statements as a part of this Annual Report. inter alias.. is engaged in furthering the cause of DFL in the farming community.USA Kusha Inc. Madhya Pradesh. It also offers other products including Jasmine Rice. Kusha’s core competency lies in marketing and selling high quality Indian Basmati Rice and other authentic imported grains. In its practice of Good Corporate Governance over the years. Company has incorporated a subsidiary ‘Expo Services (P) Limited’ to strengthen its distribution network across length and breadth of India. It exports organically grown products including basmati and non-basmati rice and other value-added products like brown rice flour. In accordance with the Accounting Standards (AS-21) on Consolidated Financial Statements. adequacy of the internal control measures and reporting of matters to the Audit Committee in terms of the said clause. In terms of such sub clause (v) of Clause 49 of Listing Agreement. Punjab and Haryana. Grape seed Oil. The domestic market too has witnessed increasing off-take of the organic products in recent times. LT Agri Services Private Limited. Couscous. it helps DFL procure quality paddy from the farmers. Arborio Rice. under the brand name of ’SDC Pure’ during the year. It has devised end-to-end sourcing and supply chain solutions for distribution of fortified Atta for APL card holders through Public Distribution Supply outlets in Punjab. Pune. A certificate from the Auditors to this effect forms part of this Report. confirming the correctness of the financial statements. During the year. a subsidiary of the Company is engaged in trading of varied merchandise. To maximize from the growing demand of organic products. the Company has been granted exemption by the Ministry of Company Affairs. MANAGEMENT DISCUSSION AND ANALYSIS Management Discussion and Analysis Report for the year under review. Staple Distribution Company Limited (SDCL) This modern retail subsidiary of the Company has posted a strong sales growth of over 75% during the year. pastes and chutneys. It is currently number one Basmati Rice seller in America with brand names Royal and Daawat. The Company is exploring various opportunities for growth under this unit. In return. 1956. In the belief of strengthening the governance practices. Tamil Nadu. National Capital Region. brown flax seeds and cashew nuts. CORPORATE GOVERNANCE Your Company has been complying with all the conditions of Corporate Governance as stipulated in Clause 49 of the Listing Agreement with Stock Exchanges.DFL has expanded its business operations and has set up a food plant for manufacturing of rice based products during the year. Sona Global Limited & Nice International FZE. 1956. is also enclosed as a part of said Report. Pursuant to the provisions of Section 212(8) of the Companies Act. from attaching the individual accounts of the each of the subsidiaries. while granting exemption from attaching the individual accounts of each of the subsidiaries. 23 .A. Nature Bio Foods Limited (NBFL) As a dedicated subsidiary. These Companies were incorporated in Middle East for setting up the platform for selling rice and rice products. Dubai is a fellow subsidiary of your Company and wholly owned subsidiary of Sona Global Limited. The Company is exploring other food products like sauces. the Company has constituted a Committee of Directors known as ‘Governance Committee’. Nature Bio Foods Limited is your Company’s answer to modern lifestyle and its fascination with the organically grown products.000 lacs Company. The accounts of the subsidiary companies and the related detailed information will be made available to any shareholder seeking such information at any point of time. The commercial production will start in the financial year 2010-11. Dubai Nice International FZE. it made direct exports to Germany. a nodal agency of the Government of Punjab. During the year under review. The accounts of the subsidiary companies are also available for inspection by any shareholder at the registered office of the Company or at the registered office of the subsidiary. sesame. with presence in key markets of India including Mumbai. The Company is expanding its brand footprint in more stores with more items with a special focus to expand footprint of ‘Royal’ in more ethnic stores. A grain clearing plant was set up and commenced during the year. Australia and New Zealand. Holland. LT International Limited LT International Ltd. as stipulated under Clause 49 of the Listing Agreement with the Stock Exchange is presented as a separate Section forming part of this Report. Middle East and the Saudi countries have a great potential for parboiled rice. the USA. SDCL has launched its own label in two food categories namely Wheat Flour & Basmati Rice. SDCL has also bagged a food supply chain management assignment from Pungrain. SDCL is grown to become a Rs 5. Gujarat. a one page financial summary for the subsidiaries is disclosed as a part of this Annual Report. Overseas subsidiaries LTO NA and Kusha Inc. PARTICULARS REQUIRED UNDER SECTION 212 OF THE COMPANIES ACT. 1956 is also attached as a part of this Annual Report. In accordance with the conditions stipulated by the Ministry of Company Affairs. It helps farmers with quality inputs including seeds and agricultural know-how. West Bengal. it is further diversifying its product bouquet. a wholly owned subsidiary of DFL. is a fellow subsidiary of your Company and wholly owned subsidiary of LTO N. accountability and integrity. the Board lays strong emphasis on transparency.

the particulars of which are contained in the Notice of the Annual General Meeting. Pramod Bhagat. 1956.2007 22. 2010 for a period of five years. Your Directors recommend approval of his appointment. N. 2. the particulars of which are contained in the Notice of the Annual General Meeting. Further.09. would be within the prescribed limits as per the said Section. Employed throughout the year under review and were in receipt of remuneration for the year which.000/. N. 1956. .09.00. 1956. signifying his intention to propose Mr. subject to approval of the shareholders.Accounts and Taxation VP. 24. Mr. Jagdish Chandra Sharma and Mr. read with Companies (Particulars of employees) Rules. as recommended by the Audit Committee. Directors of your Company are retiring by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment. The Board. She is an Independent Director on the Board of the Company. Mr. During the period under review. in view of the increasing international operations of your Company. 1956. is provided in the report on Corporate Governance annexed to the Directors’ Report. The brief resume of the said directors as required in terms of Clause 49 of the Listing Agreement with the stock exchanges. were not less than Rs. AUDITORS TU & Co. Ashwani Kumar Arora and Mr. A. 1975: a. A. 1956) Information as per Section 217(2A) of the Companies Act.000/. 1956. the particulars of which are contained in the Notice of the Annual General Meeting. as Statutory Auditors of the Company for the Financial Year 2010-11. Chartered Accountants.00. at a remuneration to be decided by the Board of Directors. if made. EMPLOYEES (Disclosure under Section 217(2A) of the Companies Act. 1956.06. the Company did not accept any deposits from the public within the meaning of Section 58A of the Companies Act. Vijay Kumar Arora. opines to recommend the appointment of an international accounting firm M/s Walker and Chandiok. Mr. Mr.2007 1. A. Ms.Sales and Sr. Your Directors recommend approval of her appointment. m.per annum: Age (Years) 52 43 48 42 51 Designation Remuneration Date of Commencement of employment 29. International Accountants & Business Advisors. Your Directors recommend their re-appointment. 1956 to the effect that their appointment. signifying his intention to propose Ms. New Delhi – the Statutory Auditors of the Company shall hold office till the conclusion of this ensuing Annual General Meeting. The Company has received a Notice from a Member under Section 257 of The Companies Act. The Company has received a Notice from a Member under Section 257 of the Companies Act. 2009.DIRECTORS Mr. Ashok Arora has been appointed as Additional Director in the meeting of the Board on May 26. Srivastava for the office of Director.2000 Particulars of last employment N. He is a Nominee Director of the strategic investors India Agri Business Fund Limited and Real Trust on the Board of the Company.06. He has been actively involved in the activities of the Company and was independently taking care of operations of the group in Punjab. Private Practice United Riceland Limited Name Vijay Kumar Arora Ashwani Kumar Arora Surinder Arora Som Nath Chopra Vijay Malik Chairman and Managing Director Joint Managing Director Joint Managing Director VP. 2010. The members are requested to consider their appointment as statutory auditors for the financial year 2010-11. There were no other employees who were in the Company’s employment for a part of the year under review and were in receipt of remuneration for any part of the financial year at a rate in aggregate.2004 22. The Company has received a certificate from the said Auditors under Section 224(1B) of the Companies Act. Radha Singh for the office of Director.09. Your Directors recommended his appointment. The Company has received a special notice from a member pursuant to Section 225 of the Companies Act.. proposing appointment of M/s Walker and Chandiok as Statutory Auditors to hold office from the conclusion of the forthcoming Annual General Meeting till the conclusion of the following Annual General Meeting of the Company. Manager (Commercial) Mentioned in CG report -do-do31 lacs 28 lacs b. Rajesh Kumar Srivastava was appointed as Additional Director of the Company on November 09.2006 4. 2010 and he has been further appointed as Joint Managing Director of your Company by the Board of Directors on May 26. in aggregate was not less than Rs. DEPOSITS During the year. Radha Singh was appointed as Additional Director of the Company on January 29.p. Surinder Arora are relatives within the meaning of Section 6 of the Companies Act. Paragraph B (10) of schedule 18 in the notes on accounts referred to in the Auditors Report are self-explanatory and therefore do not call for any further comments.

94 832.13 10.286. With these consumer insights.86 2009-10 2008-09 consumer needs as well as business requirements of introducing new and consistent products with better quality.72) Others 982. our R&D activities aim at developing innovative and exciting new products.35 740.76 (11. As elsewhere.81 (53.12) Total 49. flavors were finalized and we await the launch of snack products in the second quarter of financial year 2010-11. products development.00 (44. Some research ideas were developed into prototype products in the new R&D kitchen with the help of Research Scientists and Technologists. we have made strides in improving our overall infrastructure. convenience and wellness to consumers. Convenience and Health.30 9. 1956. Deatils of Foreign Exchange Transactions (Rs. At the rice milling unit by adding new rice silos.91 (147.16 (21.44 179. Indian consumers are demanding greater choices in Foods. sophisticated. Company has derived the benefits as a result of the above said efforts.250.647. In lacs) Rate /Unit (Rs. 1956 read with the Companies (Disclosure of particulars in the report of the Board of Directors) Rules.RESEARCH & DEVELOPMENT LT Research provides solutions for good tasting rice that brings nutrition. Company’s continued efforts reduce and optimize the use of energy consumption have shown positive results. the applicable accounting standards have been followed and that no material departures have been made from the same.19) Capital Goods 546. in lacs) Consolidated Amount Import on CIF Basis Packing Material 15. Power & fuel Consumption Particulars Electricity Through Purchases Units (in lacs) Total Amount (Rs. cost reduction.05) Interest & Other Charges to Banks 744.g. (b) the Directors have 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 affairs of the Company as at March 31. 2.27 (975. the corner Kirana shops are converting themselves into modern retail outlets.66 16.99) Spare Parts & Consumables 43.30 4. this is in addition to the paddy silos we have in place. The said efforts also helped in satisfying 25 .72 (53.26) Seasame Seed 28. To meet this new gap in the market. During the year. These products were consumer tested to determine both acceptability and directions for improvement.07) Total 1.84) Earning in Foreign Exchange FOB Value of Export Rice 49.689. Imported technology The Company is importing machinery for the projects time to time. adaptation and innovation: 1. Better controls are planned to achieve further reduction in energy consumption.20) DIRECTORS RESPOSIBILITY STATEMENT Pursuant to Section 217(2AA) of the Companies Act. product improvement. Indian market place is rapidly changing. We are additionally adding new packaging lines with new re-closable small packs for the mainstream stores across the world.82) Packing Material 13.95) Total 605. 1988 are set out hereunder: Conservation of energy Energy conservation is a priority area for the Company. In lacs) Cost /Unit (Rs. health.) Through Diesel Generator Units generated (in lacs) Total Amount (Rs.48 (431.90 174. educated and well-traveled Indian consumers are also placing high importance to Taste. Technology absorption.736.76 152.94 231. Daawat brand is very well placed and a highly trusted all over India. the Directors confirm that: (a) In preparation of the Annual Accounts.92 (14. e.) 23.45 (4. 2010 and of the profits of the Company for the year ended on that date.84 (582.99 4.13) Expense in Foreign Exchange Legal fees 9. etc.51 (918. PARTICULARS OF CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE AND OUTGO Information as required under Section 217(1) (e) of the Companies Act. All the new manufacturing facilities of the Company are equipped with hitech energy monitoring and conservation systems to monitor usage.

ACKNOWLEDGEMENT Your Directors take this opportunity to thank all investors. TRADE RELATIONS The Board desires to place its appreciation for the support and cooperation that the Company received from suppliers. For and on behalf of the Board of Directors Place : Gurgaon Date : 09. The detailed information for the scheme as per applicable provisions of law has been provided in the notice to the Annual General Meeting. 1999 to offer securities to the employees (including employees of the subsidiary companies) under the “LT Foods Employee Stock Option Plan – 2010”. With a view to solicit their greater participation in the sustainable growth of the Company. the Company runs few stitching training centers in villages surrounding its place of operations. The enthusiasm and unstinting efforts of the employees have enabled the Company to remain at the forefront of the industry despite increased competition from several existing and new players. dedication and commitment. EMPLOYEES STOCK OPTION SCHEME The Board recognizes the contributions of the permanent employees of the Company and its subsidiary companies.08. the Board has proposed that a Scheme be formulated in accordance with the ESOP Guidelines. (d) the Directors have prepared the annual accounts on a going concern basis. for their continued support. clients. CORPORATE SOCIAL RESPONSIBILITY The foundation of your Company’s business lay on co-creating value with and for the farming community. Your Directors also wish to place on record their appreciation of the Contribution made by our business partners/associated at all levels. With a view to further woman empowerment.(c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act.2010 Ashwani Arora Joint Managing Director . The Company has always looked upon them as partners in its progress and has happily shared with them the rewards of growth. The Board has accordingly decided to seek approval of the shareholders of the Company. vendors. distributors and others associated with the Company as its trading partners. respect and co-operation with each other and consistent with customer interest. APPRECIATION Your Directors wish to place on record their appreciation to employees at all levels for their hard work. It will be Company’s endeavor to build and nurture strong links with the trade partners based on mutuality. regulatory and government authorities and stock exchanges. The Company also provides rice to various NGOs. banks. The Company helps farmers to improve yield from their farms by sharing quality seeds and know-how on best farming practices. 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

00% 3. (Subsidiary) 31.10 each 17. of Equity shares of Rs.03.91 1.25] 27 . are based on the exchange rates as on 31. 12.61) 33.A.03.000 Nos. Financial year of the subsidiary ended on 31. LT International Limited (Subsidiary) Name of the Subsidiary Companies Sona Global Ltd.03. (a) Number and face value 50. NIL NIL 80.2010 1.10 each of Rs.000 Nos.2010 31. UAE (Wholly Owned Sub) Nice International UAE (Fellow Subsidiary) LTO North America Inc.48% -29.10 each 80.476 Nos.03.2010 Expo Services Pvt.Statement Pursuant to Section 212 of the Companies Act.03.48% N.99.581 Nos.52% (b) Extent of holding 100.44) (413. Change if any in the holding Company's interest in the subsidiary NIL 4.98% 100.91) 458. Material changes between the end of Subsidiaries financial year and the end of Holding Company's financial year NIL INR INR NIL NIL NIL INR NIL INR NIL INR NIL AED NIL AED NIL US$ NIL US$ 7.28) 11. of Equity shares of Rs.75 337. of Equity shares of Equity shares of Rs.10 each 70.092.2010 31. Ltd.000 100.94) (28.68 (510.09) 7.A.10 133.000 Nos. 1. USA (Wholly Owned Sub) Nature Bio Foods Limited (Wholly Owned Sub) Kusha Corporation USA (Fellow Subsidiary) 31.2010 31.2010 31.000.2010 [1US$ = Rs. lacs) Daawat Foods Limited (Subsidiary) 31. of shares of AED 1.10 each 10. 1956 relating to the Subsidiary Companies (Amount in Rs.56 i) For the financial year 51.000 Nos.000 100. 45. of Equity shares of Rs. Reporting Currency INR Note: Indian Rupee equivalent of the figures in foreign currencies in the accounts of the subsidiary companies.78 924.82 NIL (1.99. of shares of US$ 50 Each 100. 2.2010 2. its follows: 721.50 NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL i) For the financial year NIL ii) For the previous financial years NIL 6. which has been dealt with in accounts of The L T Foods Limited is as follows: 168.85 ii) For the previous financial years 162. A.03.97 (0.00.46) (18.2010 (Fellow Subsidiary) (Fellow Subsidiary) LT Agri Services Pvt. of Equity shares of Rs.03. NIL N.2010 31.03.000 Nos.00% NIL Common Stock of US$ 100.69 5. Ltd.14 and 1AED = Rs.03.00% 8.00% N.2010 31.00% N.00% 89.994 Nos. The net aggregate amount of Profits / (Losses) as far as it concerns the member of the L T Foods Limited and is not dealt within the accounts. Share of the subsidiary held by the Company on the above date: 70.03.71 NIL 8.10 each 70. of shares of AED 100 Each 1 Nos.34. The aggregate amount of Profit /(Loss) of the subsidiary Company .03. Staple Distribution Company Ltd. A.00% 80.45 (18.

44 17. INR 1.85 239.018.2010 [1US$ = Rs.024.61 525.03.78) (25.54 7.43 31.92 (690.29) 15.34) 1.66 245.97 Note: Indian Rupee equivalent of the figures in foreign currencies in the accounts of the subsidiary companies.53 1.75 (2.82 70.79 4.71 12.00 100.23 28.94) 14. 2010 (Amount in Rs.48 Nice International FZE AED 12. 12.49 (0.32) (0.218.345.436.14 and 1AED = Rs.00 18.061.002. 45.00 Staple Distribution Company Limited INR 1.69 206.00 5.98 3.00 L T International Limited INR 1.67) 702.583.76 (175.56 275.01 (18.246.95 848.25] .458.44) 458.10 5.25 (180.00 1.91 6.87 (1.142.10 152.238.94) 7.82 100.00 1.25 119. INR 1.14 1.53 LT Agri Services Pvt. US$ 45.44 3.73 (18.00 1.03) (2.85 Reporting Exchange Currency Rate Capital Nature Bio Foods Limited INR 1.34) 12.29) 53.14 39.912.87) 111.00 Sona Global Limited AED 12.92) 2.87 LTO North America Inc.12 (2.06 7. 1956 relating to Subsidiary Companies] Name of the Subsidiary Company 214.915.064.10 2.39 15.00 200.91 1.31 6.881.34) (7.64 5. lacs) Reserves Total Assets 2.00 India India India India India India UAE UAE USA USA Daawat Foods Limited INR 1.10 (510.54 4.44 Total Liabilities Investments other than investment in Subsidiaries Turnover (including Other Income) Profit before Taxation Provision for Taxation Profit after Taxation Dividend Paid Country [Statement pursuant to exemption received under Section 212(8) of the Companies Act.00 Expo Service Pvt. Ltd.65 11.71 Kusha Corporation US$ 45.97 42.37 51. are based on the exchange rates as on 31.12 11.297.25 9.25 137.69 80.592.04 (0.36 46.503.47 (0.46 21.22) 243. Ltd.331.34) 1.Financial Summary of the subsidiaries of the Company for the year ending 31st March.622.

11. Gurucharan Dass Arora. 2001 issued by the Ministry of Corporate Affairs.Executive/ Independent Non.e.30. of Shares) Number of Board meetings during 2009-10 Held Mr.06. India Agro Business Fund Limited. The Corporate Governance framework adopted by the Company already encompasses a significant portion of the recommendations contained in the Corporate Governance Voluntary Guidelines. Rajesh Kumar Srivastava* Director Ms.Executive Nil 7 2 No 3 0 6 Non.10. The Board functions either as a full Board or through its Committees constituted to oversee specific operational areas.01. Whistle Blower Policy LT Foods has formulated a Whistle Blower Policy. Audit Committee.40. knowledge and experience. The Board has formed six Committees viz. Joint Managing Director Executive Mr.2009). Mr. Surinder Arora Managing Director.CORPORATE GOVERNANCE REPORT PHILOSOPHY OF CORPORATE GOVERNANCE Corporate Governance signifies acceptance by Management of the inalienable rights of Shareholders as the true owners of the Organization and of their own role as trustees on behalf of the Shareholders.e. The composition of the Board is in conformity with Clause 49 of the Listing Agreements entered into with Stock Exchanges. Shareholder’s Grievance Committee.2010. ** Ms. Radha Singh** Director Mr. Mauritius and Real Trust. Pramod Bhagat Director Mr.320 Equity in joint holding with Mr. None of the Directors on the Board are members of more than ten committees or Chairman of more than five Committees. Out of theses eight directors. Suneet Gupta*** Director * 22. employees of LT Foods are free to raise issues. a) Board of your Company comprises of Eight (8) Directors as on March 31. Surinder Arora also holds 11.Executive/ Independent Non. 2010 representing the optimum combination of professionalism. Remuneration Committee.033 7 Attended 5 Yes Whether attended last AGM Number of Number of Committee Directorships positions held in in other Public Public Companies Companies Chairman Member 9 3 4 Mr.343 Nil Nil Nil 7 7 7 7 7 5 2 5 5 7 Yes No No Yes Yes 10 2 1 1 1 1 1 0 0 0 5 0 3 3 3 Non-Executive/ Independent Non.441 22. In terms of this policy.Executive/ Non. Jagdish Chandra Sharma Director Mr. 09. statue or regulation by the Company and on the accounting policies and procedures adopted for any area or item and report them to Audit Committee through specified channels. constituted incompliance with the Companies Act. Governance Committee and Selection Committee . 2010 have been made by the Directors.f. Vijay Kumar Arora Chairman & Managing Director Chairman Executive 22. if any. Suparas Bhandari Director Mr. The names and categories of the Directors on the Board. Ashwani Arora. Mr. This mechanism has been communicated to all members and employees of the Company. on breach of any law. Management Committee. their attendance at the Board Meetings held during the year and number of Directorships and Committee Chairmanships/ Memberships held by them in other Companies are given herein below. 29. Necessary disclosures regarding Committee positions in other Public Companies as on March 31.e.09. Rajesh Kumar Srivastava appointed as Additional/Nominee Director on behalf of Investors (i.Independent Non. BOARD OF DIRECTORS LT Foods has a broad based Board of Directors. Joint Managing Director Executive Mr. 1956 and Listing Agreements entered with Stock Exchanges and in accordance with Good Corporate Governance practices. *** @ Mr. Suneet Gupta ceased to be an Alternate Director to Mr.520 Equity in joint holding with Mr. Ashwani Arora Managing Director. three are Executive Directors and five are Non Executive Directors. # 29 . b) c) The Composition of the Board and attendance record of Directors for 2009-10: Name Category Shareholding in Company (No. Delhi w. Radha Singh appointed as Additional Director w. Rajesh Srivastava . Vijay Kumar Arora also holds 16.f.Executive Nil Nil 7 7 0 0 No No 2 2 0 0 0 0 Mr.

Jagdish Chandra Sharma (Chairman). November 9.00 Perquisites Nil 6. Pramod Bhagat (Chairman). Suparas Bhandari (Member) and Mr. September 30. None of the Non Executive Directors have any material pecuniary relationship or transactions with the Company. however.500.00 90. 2009. 2009 and January 29. June 30. 2009. 2009. Shareholders’ Grievance Committee IV. All the members of the Audit Committee are financially literate. Mr. 2009 and January 29. Rajesh Kumar Srivastava (Member) who are the members of this committee. SHAREHOLDER’S GREIVANCE COMMITTEE Brief Description & Terms of reference: There are three Independent Directors viz Mr. The details of sitting fees paid to the Non . October 29. Member of the Audit Committee was present to answer the query of shareholders in his place.e. Mr. Ashwani Arora Mr. 2010. II. Members of the Committee Category Number of Meetings held during the year 2009. The Remuneration Committee frames company’s policies on the Board of Directors with the approval of the Board.) Sitting Fee 1.11. seven meetings were held and the gap between two meetings did not exceed four months. 2009. Pramod Bhagat Mr.d) During the year.00.00 9.000. 2009. Mr. 2010. 2009. The terms of reference and Role of the Audit Committee includes the matters as stated in Clause 49 (II) (D) of the Listing Agreement. The dates on which the said meeting were held: May 26. Jagdish Chandra Sharma Mr.00 39. Internal Auditors on the financial reporting process and the safeguards employed by them. Rajesh Kumar Srivastava. Suparas Bhandari. Non Executive Nominee. except sitting fees @ 10. Rajesh Kumar Srivastava* Independent. Mr. Suparas Bhandari (Chairman). Jagdish Chandra Sharma Ms. representatives of the Statutory Auditors and representatives of the Internal Auditor to be present at its meetings. Jagdish Chandra Sharma (Member) and one Non – Executive Nominee Director viz Mr. 1956 and Clause 49 of the Listing Agreement. Pramod Bhagat (Member).) Name of the Director Mr. Chairman of the Committee has got accounting and financial management expertise. Non Executive Independent.2009. July 28. Vijay Kumar Arora Mr.20. The Committee oversees the work carried out by the Management.00 9. Governance Committee VI.f. BOARD COMMITTEES There are Six Committees of the Board of Directors. Meetings & Attendance The Audit Committee comprises of three Non . Pramod Bhagat (Member).000/. October 29. July 28. five Audit Committee Meetings were held. The primary objective of the Audit Committee is to monitor and provide effective supervision of the management’s financial reporting progress with a view to ensure accurate. Suparas Bhandari Mr.667. The dates and other details of the said meetings are as follows: May 26. Chairman of the Audit Committee couldn’t make himself available at the Nineteenth Annual General Meeting of the Company on health grounds. The Audit committee invites such of the executives as it considers appropriate (particularly the head of finance function).for attending meetings of the Board/ Audit Committee(s). Suparas Bhandari Chairman Mr.Executive & Independent Directors and one Non – Executive Nominee Director viz Mr. .11. The details of remuneration paid to the Executive Directors for the financial year ending 31st March 2010.000. Jagdish Chandra Sharma.00. Audit Committee II.00 Nil e) f) g) All departments of the Company schedule their wok plans in advance.000. Mr. Mr. During the year. Composition. Scheduling and selection of Agenda items for Board Meetings. 2009.Executive Directors for attending the meetings of the Board(s)/Audit Committee(s) during the financial year ending 31st March 2010 are as under: (Amount in Rs.360.000. particularly with regard to matters requiring consideration at the Board/Committee meetings. Selection Committee I. The Company Secretary acts as the Secretary of the Audit Committee. non-receipt of *Mr.000. Srivastava was inducted to the Committee w. Mr. which have been delegated requisite powers to discharge their functions and they meet as often as required.00 1.360. 09. Suparas Bhandari. Details of Remuneration paid to Non – Executive Directors No remuneration was paid to Non-Executive Directors during the financial year ended 31st March 2010. All such matters are communicated to the Company Secretary in advance so that the same could be included in Agenda for the Board/Committee Meetings.00 III. 09. Srivastava was inducted as Member of the Committee w.2009. Mr. timely and proper disclosures and transparency.f.e. AUDIT COMMITTEE The Audit Committee of the Board has been constituted in accordance with the requirements prescribed under Section 292A of the Companies Act. Remuneration Committee III. Mr. Non Executive Independent. Jagdish Chandra Sharma (Member) and Mr.2009. Rajesh Kumar Srivastava (Member). integrity and quality of financial reporting. The Shareholders Grievance Committee looks into the redressal of investor requests/ complaints pertaining to transfer/transmission/demat/remat/split of shares.11.667. During the Financial year.65. Pramod Bhagat Mr. information as mentioned in Annexure . Rajesh Kumar Srivastava appointed as Member of the Audit Committee w.e.11. are as under: (Amount in Rs. 09. Suparas Bhandari (Member).360.00 8.00 Retirement benefits 9.1A to clause 49 of the Listing Agreement has been placed before the Board for its consideration.00 39. Mr. Surinder Arora Salary & Allowances 60. Radha Singh Details of Remuneration paid to Executive Directors The Executive Directors have been appointed for a period of five years from their respective date of appointment. Management Committee V. These Committees are: I. Mr. Non Executive 5 5 5 5 Attended 5 4 5 1 Name of Directors Mr.11.f. REMUNERATION COMMITTEE Brief Description & Terms of reference: The Committee comprises of three Independent Directors and one Non Executive Nominee Director viz: Mr.10 Held Mr.32. to recommend compensation payable to the Executive Directors. 2009. June 30.

Vijay Kumar Arora (Chairman). the Shareholders of the Company have approved the Special Resolutions as provided in the notice of the respective Annual General Meetings.Executive Director) During the last three Annual General Meetings. VI. the 26th day of October. approval of the Members of the LT Foods Limited was sought by means of Postal Ballot vide notice dated 29.2008 3.30 A. 2009.M. passed 2008-09 19th AGM 2007-08 18 AGM 1 th No Special Resolution was passed. for passing of special resolutions under section 17 and Section 31 of the Companies Act. 31 . the members of the Company approved the following resolutions by way of Postal Ballot: Pursuant to Section 192A of the Companies Act. the Board has constituted Selection Committee comprising three members viz Mr. New Delhi. New Delhi. Surinder Arora (Member).M. Date and Time where last three Extra . 2009 at 12.09. Shareholder’s Complaints: Investor’s complaints received and resolved during the last three years: DETAILS OF ANNUAL GENERAL MEETING Location. Rajesh Kumar Srivastava (Member) (Executive Director) (Executive Director) (Non -Executive Director) 2006-07 17th AGM 1 Location. .08. Khel Gaon Marg. the Board has constituted a Governance Committee comprising three members viz Mr. Alteration in the Object Clause by shifting some of the objects mentioned in the “Main Objects” clause to “Other Objects” clause of the memorandum of Association of the Company. 1956.2009 3. INVESTORS COMPLAINT TREND Received Resolved 26. Mr. Carry on the business mentioned in Clause III (C) 29. POSTAL BALLOT During the financial year under review. Subroto Park. Mr.2009.00 P . V. Particulars of Special Resolution(s) Year Meeting No. The Committee also monitors the implementation and compliance of the company’s Code of Conduct for Prohibition of Insider Trading in pursuance of the SEBI (Prohibition of Insider Trading) Regulations. 1992. 2 3 Committee was formed to consider. Ashwani Arora (Member) and. Mr. Ashwani Arora (Member) and.M. The procedures are periodically reviewed to ensure that executive management controls risk through means of a properly defined framework. for altering of the Object clause of the Memorandum of Association and Articles of Association of the Company. 2006-07 17th AGM NCUI Auditorium. New Delhi. RISK MANAGEMENT The Company has laid down procedures to inform Board Members about the risk assessment and minimization procedures. Mr. Mr.06.10. read with the Companies (Passing of the Resolution by Postal Ballot) Rules 2001.M. Vijay Kumar Arora (Chairman). the The ‘Selection Committee’ of the Board of Directors was formed to take decision on the appointment. Alteration of Articles of Association of the Company. 2007-08 18th AGM Air Force Auditorium. Rajesh Kumar Srivastava (Member) (Executive Director) (Executive Director) (Non . GOVERNANCE COMMITTEE Brief Description & Terms of reference: During the years. Vijay Kumar Arora (Chairman). 30 2007-08 30 26 26 2008-09 2009-10 IV. SELECTION COMMITTEE Brief Description & Terms of reference: During the year. New Delhi. Subroto Park. date and time where the Annual General Meetings (AGM) were held: Financial General Year Meeting Location Date Time 2008-09 19th AGM Air Force Auditorium.dividend and annual accounts etc and oversees the performance of Registrar and Transfer Agent of the Company.00 P at Air Force Auditorium. Ashwani Arora (Member) and Mr. 30 and 31 of Memorandum of Association of the Company. MANAGEMENT COMMITTEE Brief Description & Terms of reference: Management Committee comprises three directors viz Mr. Dhaula Kuan. Change the name of the Company from “LT OVERSEAS LIMITED” to “LT FOODS LIMITED”. Dhaula Kuan. 1956. discuss certain matters listed in Annexure IA of Clause 49 of the Listing Agreement and further recommend to the Board for their consideration and approval. Subroto Park.Ordinary General Meetings were held: Extra-Ordinary General Meeting of the Shareholders of the Company was held on Monday. terms of appointment including remuneration and termination of the identified ‘Key Men’ positions and further apprise the same to Board of Directors. 24. Brief details of such resolutions are as under: Financial General Sl. 163 163 22. Based on the Scrutinizer’s Report Dated 4th December. The Board has delegated some of its powers to Management Committee for the smooth functioning of day to day business of the Company.00 P .2007 9.

the management. of No. Resolution No. read with Companies (Passing of the resolution by Postal Ballot) Rules. 2001.1956 seeking Members’ consent for alteration in Object Clause of Memorandum of Association Special Resolution under Resolution 31 of the Companies Act. SEBI or any statutory authority on accounts of non – . for passing of special resolution under Section 31 of the Companies Act. 2) No penalty or stricture was imposed on the Company by any Stock Exchange. i. 1956 seeking consent of shareholders for alteration of Articles of Association. 1956.11. A copy of the code has been put on the Company’s website.ltoverseas. 5) The Company follows closure of Trading Window prior to the publication of price sensitive information. 3) The CEO/CFO Certificates in terms of Clause 49 (V) has been placed before the Board.2009. staff and relevant business associates.410 Equity shares Nil 4 Pursuant to Section 192A of the Companies Act. as amended till date. of No.17. that may have a potential conflict with the interest of the Company at large. The code has been circulated to all members of the Board and senior management personnel who have confirmed compliance with the code of conduct for the year under review. The Company is in the process of complying with the non. Resolution No. b) The Quarterly results are also displayed on the website of the Company. • TU & Co.Chairman of the Company had declared the result of Postal Ballot as under: Sl. the Chairman had declared the result of Postal Ballot on 15th January 2010 at the corporate office of the Company as under: Sl. 1956. The required disclosures on related parties and transactions with them is appearing in the Notes to the Accounts (Schedule-21).. DISCLOSURES 1) During the financial year ended on 31st March 2010.com. 1956 read with the Companies (Passing of the resolution by Postal Ballot) Rules 2001. on prevention of Insider trading.48. New Delhi were appointed as Scrutinizer for conducting both the above mentioned postal ballot exercise. the Company has a comprehensive code of conduct and the same being strictly adhered by its management.17. 1 Special Resolution under Section 17 of the Companies Act. of No. 4) In Compliance with the Securities and Exchange Board of India (Prevention of Insider Trading) Regulations 1992. A DECLARATION SIGNED BY THE CHAIRMAN AND THE MANAGING DIRECTOR IS GIVEN BELOW: I hereby confirm that: The Company has obtained from all members of the Board and Senior Management personnel. relatives. which requires to be passed through Postal Ballot process. approval of the shareholders of the LT Foods Limited was sought by means of Postal Ballot vide notice dated 09. 2 53 1.mandatory requirements of Listing Agreement on ‘Corporate Governance’. The Secretarial Audit report confirms that the total issued/paid up capital is in agreement with the total number of shares in physical form and the total number of dematerialized shared held with NSDL and CDSL. Practicing Chartered Accountants. subsidiaries etc. affirmation that they have complied with the code of conduct and ethics for Directors and senior management personnel for the financial year 2009-10 (Vijay Kumar Arora) Chairman and Managing Director MEANS OF COMMUNICATION a) The Quarterly and Annual results were generally published in the Business Standard.48.e. of Invalid Ballots/ Votes 8 1 Special Resolution under Resolution 31 of the Companies Act. During this period. 7) Secretarial Audit A qualified Company Secretary carried out secretarial audit to reconcile the total admitted equity capital with National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL) and the total issued and listed equity capital. Company has set up a mechanism where the management and relevant staff & business associates of the company are informed the same and are advised not to trade in Company’s securities.12.435 Equity shares Nil No. No Resolution is proposed at the ensuing Annual General Meeting. for insertion of Article 60A of the Articles of Association of the Company. 6) The Company is complying with all the mandatory requirements of Clause 49 on ‘Corporate Governance’. • All the above resolutions were approved by the shareholders with overwhelming majority. of No. • The Postal Ballot process was conducted in accordance with Section 192A of the Companies Act. 1956 seeking consent for alteration of the Articles of Association. while dealing with shares of the company and cautioning them on the consequences of the non-compliance thereof. www. there were no materially significant transactions with related parties viz promoters. Particulars of No. Based on the Scrutinizer’s Report. Particulars of No. of Invalid Ballots/ Votes 4 compliance by the Company on any matter related to Capital markets during the financial year ended 31st March 2010. c) The Management Discussion and Analysis (MD & A) report covering the operations of the Company forms part of the Annual Report. The Code expressly lays down the guidelines and the procedure to be followed and disclosures to be made. of valid Ballots/ Ballots/ Ballot Votes cast Votes cast Papers in favour against 53 1. CODE OF CONDUCT The Company has adopted a Code of Conduct and ethics for Directors and Senior Management personnel vide Board meeting held on 12. of valid Ballots/ Ballots/ Ballot Votes cast Votes cast Papers in favour against 30 29 Nil No.2006.

11.110016.14. Bandra (E).667 17.00 60. ISIN No. 30 September.824 86. Stock Market Data: (Amount in Rs.00 58.05 38.GENERAL SHAREHOLDER’S INFORMATION Twentieth Annual General Meeting: Date & Time Venue Thursday.04. both days inclusive.each fully paid up (@15%) for the financial year ended on 31st March 2010.94.896 16.662 5.35 63.20 46.791 3.450 27.525 National Stock Exchange of India Limited High 34. August Kranti Marg.20.00 63.524 66.849 24.00 P .70 74.636 3.: 022.80 84.26598110.358 16.636 4.) Bombay Stock Exchange Limited Month April’09 May’09 June’09 July’09 August’09 September’09 October’09 November’09 December’09 January’10 February’10 March’10 High 34. 022.00 42. Siri Institutional Area.30 59.922 5.85.90 74.525 Sensex 11.249 Sources: BSE & NSE website PRICE MOVEMENT AT BSE 80 60 40 20 0 Ap ril09 M ay -0 9 Ju ne -0 Ju 9 ly09 Au g09 Se pt -0 9 O ct -0 9 N ov -0 9 De c09 Ja n10 Fe b10 M ar -1 0 PRICE MOVEMENT AT NSE 20.50 Low 28. Mumbai – 400051.96.70 56.018 5.00 66. The dividend.29. will be paid within 30 days from the date of declaration.65 57. 2010 to Thursday.90 53.20 43.811 2. PHD House.494 15.80 Volume S&P CNX Nifty 86. Main Aurobindo Marg. Gurgaon-122002.646 36.22721233/34 Fax: 022.90 71.75 34.168 2.000 15.15 59.66.033 5.299 42.119.60 40.35 76.50 49.10/.22721919 Security Code:532783 National Stock Exchange of India Limited Exchange Plaza.20 55. G.201 4.97.M.50 Low 28.85 49.712 5.65 58.10 38.44.30 84.50 63.674 10.127 15.00 56.30 58.855 1.57.514 5. Green Park.11 : The annual listing fee has been paid to BSE and NSE and also annual custodial fee has been paid to NSDL & CDSL for the financial year 2010 .65 34.461 96.400001 Tel.133 4.74.430 17.000 10.80 72.449 4. if approved.93.37.000 1.85 40.625 14.500 3. Book Closure The Register of Members and Share Transfer Books of the Company will remain closed from Saturday.00 63.00 Close 31. for NSDL & CDSL : INE818H01012 Listing Fee / Custodial Fee for 2010 . st st Registered Office & Corporate Office: Registered Office Corporate Office A-21.30 55.96. 4/2.26598120 Security Code: DAAWAT Dividend The Board of Directors have recommended Payment Date payment of final dividend at the rate of Rs. Sector. Plot No . New Delhi – 110 016.95 53.50 per equity share of Rs.85 72. No.35 57.670 15. Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers Dalal Street.85 30. Listing on Stock Exchanges: The Equity shares of the Company are listed on Bombay Stock Exchange Ltd (BSE) & National Stock Exchange of India Limited (NSE) since 18th December 2006. Institutional Area.525 27.500 0 SENSEX DAAWAT DAAWAT NIFTY 33 .25 82.75 38.440 85.55 68. Financial Calendar for the Year 2009-10: Financial Year 1 April 2009 to 31 March 2010. subject to the approval of the shareholders at the Twentieth Annual General Meeting .65 76.43.30 56.205 62. 1.65 50. the 30th September 2010 at 3. Bandra Kurla Complex.60 82.98.10 Close 31.474 4.05 51.Block.221 11.30 58.000 0 80 60 40 20 0 ril09 ay -0 9 Ju ne -0 Ju 9 ly09 Au g09 Se pt -0 9 O ct -0 9 N ov -0 9 De c09 Ja n10 Fe b10 M ar -1 0 M Ap 6. Tel.465 16.90 71.05 31. C-1.10 49.75 68.15 55.75 56.000 4.926 17.10 46.09.000 5.80 57. 25 September.80 58. 5th Floor. New Delhi . Mumbai .882 4.084 4.291 4.25 42.45 43.047 3.403 14.80 56. Plot No.00 55.90 64. 2010.05 38.817 8.059 11.5 42.90 Volume 8.14 Fax: 022.75 51.22.80 49.

68318 0.00000 12.34.59.000 38.66821 2. transmission.11.963 42.) 1.06392 1.18. issue of duplicate share certificate. Indian Promoters 5. In case of remat.K. Private Equity Fund/FII 9. Non Resident Individuals (NRIs) 7. of Shareholders 11. the Registrar will request National Securities Depository Ltd.773 % of Total Shareholders 88.14639 8.86.03. 022-28470652 Fax No. the Registrars and Share transfer Agent (“the Registrar”) of the Company. of Folios 12.59.614 81.160 % to Total 5.65039 0.640 84.25000 26.61. as notified by the SEBI through the Stock Exchanges. As required under clause 47 (c) of Listing Agreement of Stock Exchanges. Upon receipt of the request and share certificate.48433 2.99. Distribution of Shareholding as on dated 31. Resident Indians 2.1.99402 0. the Company obtains a certificate on half yearly basis from a company Secretary –in-practice.90. of Registrar & Share Transfer Agent are as follows: Bigshare Services Private Limited E-2/3. In case of rejection of the request. (CDSL) to confirm the demat request.620 26. Clearing members Total No. of Shares 1.46974 0. Saki Naka. The share certificates are dispatched within one month from the date of issue of shares.773 2. Share Transfer System & Registrar & Share Transfer Agent All request for dematerialization. the Registrar will verify the same. Employees 4.210 61.523 18.574 66. Number of Outstanding GDRs/ADRs/Warrants or any other convertible Instrument No GDRs/ADRs/warrants or any convertible instruments have been issued by the Company.16281 100. Upon verification. Dematerialization of Shares & Liquidity Procedure for dematerialization/ dematerialization of shares Shareholders seeking demat/remat of their shares need to approach their Depository Participants (DP) with whom they maintain a demat account.092 5 20 16 446 101 1 1 6 85 Shares Voting Held Strength (%) 47. Overseas Corporate Body (OCB) 8.80. Unclaimed Dividends The shareholders who have not encased their dividend warrants for the year 2008-09 are requested to claim the amount from Registrar & Transfer Agent (in case.040 75.05346 0.20. subject to the share transfer documents being valid and complete in all respects.49323 0.38957 5.140 .47. SakiVihar Road. Accordingly. 10/each. upon receipt of the request from the shareholder.50 /. any money transferred by the Company to the Unpaid Dividend Account and remaining unclaimed for a period of seven years from the date of such transfer shall be transferred to a fund called ‘The Investor Education and Protection Fund’ set up by the Central Government. the DP generate a request and verification of the same is done by the Registrar.68112 Share Amount (Rs.79797 1.414 Distribution of shareholding by size : No.2010: (A) Distribution of shareholding by Ownership : Sl Category No 1. As per Section 205 of the Companies Act.180 29. Trust 10.16316 31. The demat account of the respective shareholder will be credited with equivalent number of shares. is being handled by Registrar & Transfer Agent and registered within 15days of receipt of documents. rematerialization transfer. Directors 3.84.86119 0.37621 25.com The Board has authorized the Investors’ Grievance Committee to subdelegate its power to the officers of the Company.1956.57895 0.530 20.24.621 50. (NSDL)/ Central Depository Services Ltd. copy of which is filed with the Stock Exchanges. Ansa Industrial Estate.943 22. if found in order.92. shares are held in physical form).344 2. issue of demand drafts in lieu of dividend warrants etc. Address & Contact No.290 724 336 110 60 63 103 87 12. Mumbai Pin code-400072.87926 22. Contact Person: Mr.63055 0. sub-division. 022-28475207 Email id: mohan@bigshareonline.00.Dividend Payment The Board has proposed final dividend Rs.35.43. The DP will generate an electronic request and will send the physical shares certificate.760 53. approved by the Company secretary between two intervening meetings of the Committee is placed at the subsequent meeting of the committee. A summary of requests for transfer/demat/remat etc.5000 5001-10000 10001-20000 20001-30000 30001-40000 40001-50000 50001-100000 100001 and above Total No. the same shall be communicated to the shareholder. Andheri (East). for prompt redressal of investor requests/complaints.80639 0. the Committee has subdelegated its power to approve transfer/demat/remat/subdivision/consolidation of share certificates etc. shares are held in demat form) /Corporate Office (in case. Approval of the company is being sought and equivalent number of shares are issued in Physical form to the shareholder.Mohan Tel No.19144 14. Payment of Dividend Dividend will be paid by account payee non – negotiable instruments or through the electronic clearing service (ECS). regarding share transfer compliances. to the Company secretary.02860 0.015 13.84.37103 2.V.12489 2. The registrar then request NSDL and CDSL to confirm the same.per share of Rs. All requests for transfer of shares in physical form are processed and the duly transferred share certificates are returned to the transferee within the time prescribed by the law in this behalf. Bodies Corporate 6.817 42.38. N. No claim shall lie against the fund or the Company in respect of amount so transferred.

5.081 11.33. 8. Ashwani Arora Category (as per depository) Private Equity Fund Promoter Promoter Promoter Group Promoter Promoter Promoter Promoter Group Promoter Promoter Shares % Shareholding Pattern As on 31st March. Sector-44.08. GT Road. 3. Distt.119. Company Secretary & Compliance Officer Name Address Mrs.96027 3. Main Aurobindo Marg. Punjab.Top Ten Shareholders as on 31st March 2010 : Sl Name(s) of No Shareholders 1. Phoola Road.30.06.15014 5. 6.19095 18% 9% 15% 57% Private Equity Fund Body Corporate Promoter & Promoters Grp. 2.640 20.426 8. Sector – 44. 2010 38.24804 3.in 35 . 5. Sonepat.06.07. Bhopal.033 21. 4.360 8. 7. Amritsar. India Agri Business Fund Limited Vijay Kumar Arora Mr.06956 7.119. Varpal. Ashok Arora Gurucharan Dass Arora Vijay Kumar Arora with Ashwani Arora Surinder Kumar Arora Ashwani Arora Gurucharan Dass Arora with Surinder Arora Mr.53816 8. 2.80142 6. 3.68318 1% 22. 43 K.2010 (Ashwani Arora) Joint Managing Director Mail id: ipo@ ltgroup. Bahalgarh.in Contact Details On behalf of the Board of Directors Place: Gurgaon Date: 09. Madhya Pradesh.015 14. Haryana – 122002.520 10.in Alternate mail id: ir@ltgroup.34.50288 4. 9. Mandideep.38669 4. 4. Bahalgarh. Institutional Area Gurgaon.917 11.320 14. Individiuals NRI 10. Kamaspur. Gurgaon – 122002. Sonepat. Green Park. Surinder Arora Plant Locations: Presently Company has five plants including its Subsidiaries: 1.09. Monika Chawla Jaggia Plot No. Stone. Punjab. New Delhi – 110016.35. Corporate Office & Investor Cell: Plot No.606 16. Ph:91-124-3055101 Fax:91-124-3055199 Mail Id: monika@ltgroup.76. Investors Correspondence: Registered office A-21.37.

no transactions entered into by the Company during the year which are fraudulent. Our examination was limited to procedures and implementation thereof. Main Aurobindo Marg. II. M-18/DEL/TU/2010-11/07 To The Members of LT Foods Limited We have examined the compliance of conditions of Corporate Governance by LT Foods Limited.CEO/CFO CERTIFICATION PURSUANT TO CLAUSE 49 (V) OF THE FINANCIAL YEAR ENDING 2009-10. New Delhi This is to certify that a. Significant changes in internal control over financial reporting during the year.2010 Place: Delhi . if any. of the management or an employee having a significant role in the Company's internal control system over financial reporting. d. adopted by the Company for ensuring the compliance of the conditions of the corporate governance. The compliance of the conditions of Corporate Governance is the responsibility of the Management.04. c. Thanking you For LT Foods Limited Vijay Kumar Arora Chairman and Managing Director Date : 01. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting and we have disclosed to the auditors and the Audit Committee. It is neither an audit nor an expression of opinion on the financial statements of the Company.K. For TU & Co. of which we are aware and the steps we have taken or propose to rectify these deficiencies.Salhorta Chief Financial Controller COMPLIANCE CERTIFICATE FROM THE STATUTORY AUDITORS OF THE COMPANY No. for the year ended 31st March 2010 as stipulated in clause 49 of the Listing Agreement of the said Company with the Stock Exchanges. applicable laws and regulations. We have indicated to the auditors and the Audit committee. to the best of our knowledge and belief. These statements together present a true and fair view of the Company's affairs and are in compliance with the existing accounting standards.2010 Place : New Delhi S. I. II. To The Board of Directors LT Foods Limited A-21. Green Park. if any. There are.05. we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement. deficiencies in the design or operation of such internal controls. In our opinion and to the best of our information and according to the explanations given to us. Significant change in accounting policies during the year that the same have been disclosed in the notes to the financial statements. and III.: 082382 Date : 26. We have reviewed financial statements and cash flow statement for the year 2009-10 and that to the best of our knowledge and belief: I. illegal or violative of the Company's code of conduct. b. Chartered Accountants Tilak Chandna (Partner) Membership No. Instances of significant fraud of which we have become aware and the involvement therein. These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading.

(ii) 37 . Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account and with the returns from the branches. 1956 of India (the Act). and in the case of the Cash Flow Statement. (a) (b) (c) in the case of the Balance Sheet. These financial statements are the responsibility of the Company’s management. As required by the Companies (Auditor’s Report) Order.2010 Place : Gurgaon (iii) The Balance Sheet. give the information required by the Companies Act. of the profit for the year ended on that date. Chartered Accountants Tilak Chandna Partner M. Further to our comments in the Annexure referred to in paragraph 3 above.05. which to the best of our knowledge and belief were necessary for the purpose of our audit. evidence supporting the amounts and disclosures in the financial statements. we report that none of the directors is disqualified as on 31st March 2010 from being appointed as a director in terms of clause (g) of subsection (1) of section 274 of the Act. Our responsibility is to express an opinion on these financial statements based on our audit. In our opinion. and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us.. 1956. proper books of account as required by law have been kept by the company so far as appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the branches not visited by us. of the state of affairs of the company as at 31st March 2010. as well as evaluating the overall financial statement presentation. on a test basis. An audit includes examining. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. of the cash flows for the year ended on that date. the Balance Sheet. An audit also includes assessing the accounting principles used and significant estimates made by management. we give in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said Order. We have audited the attached Balance Sheet of M/s LT Foods Limited (formerly known as LT Overseas Limited) as at 31st March 2010 and related Profit & Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto. On the basis of written representations received from the directors.082382 Date: 26. For T U & Co. we report that:(i) We have obtained all the information and explanations. in the case of the Profit & Loss Account. 4.AUDITORS’ REPORT AUDITORS’ REPORT TO THE MEMBERS OF L T FOODS LIMITED 1.No. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India. (iv) 2. as on 31st March 2010 and taken on record by the Board of Directors. We believe that our audit provides a reasonable basis for our opinion. Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in subsection (3C) of section 211 of the Act. In our opinion and to the best of our information and according to the explanations given to us. We conducted our audit in accordance with the auditing standards generally accepted in India. In our opinion. (v) (vi) 3. the said accounts read with notes to accounts in schedule 17 to the financial accounts. 2003 as amended by Companies (Auditor’s Report) (Amendment) Order 2004 (together ‘the Order’) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act.

1956: (a) The Company has given unsecured loans to nine parties covered in the register maintained under Sec. The Company has taken unsecured loans from one party covered in the register maintained under Sec. The discrepancies noticed on verification between the physical stocks and the book records were not material. In respect of loans. there are following dues of sales tax. firms or other parties covered in the register maintained under section 301 of the Companies act. In our opinion and according to the information and explanations given to us. investor education protection fund. as at 31. there are adequate internal control procedures commensurate with the size of the company and nature of its business with regard to purchase of inventories and fixed assets . According to the information and explanation given to us. secured or unsecured. 9. In lacs) 5. which is overdue for recovery. 5.2010 is Rupees 101.ANNEXURE TO THE AUDITOR’S REPORT [Referred to in the Auditors’ Report of even date to the members of L. sales tax. the frequency of verification is reasonable. the Company has not charged interest from three parties. 4. except a sum of Rupees thirty five lacs ninety two thousand four hundred and seventy one only.03. In respect of Statutory dues: (a) According to the information & explanations given to us and on the basis of our examination of the books of accounts. On the basis of our examination of the inventory records. 3.T. the Central Government has not prescribed the maintenance of cost records under section 209(1) (d) of the Companies Act.03. (b) (c) (b) 2. Act Forum before which Matter is pending ITAT CIT (Appeals) ITAT ITAT CIT(Appeals) Commissioner Appeals Sales Tax Amount (Rs. wealth tax. custom duty. the Company has not accepted any deposits from the public. Assessment No Year 1.70 lacs.91 (c) 7. no substantial part of fixed assets has been disposed off by the Company during the year. 3. sales tax. 1956 in respect of the products manufactured by the Company. (The maximum amount outstanding from those parties during the year is Rs.90 lacs). the transactions made in pursuance of contracts or arrangement entered in the register maintained under section 301 of the Act and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.65 41. the Company has been generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund. 1999-00 2000-01 2002-03 2003-04 2006-07 2002-03 & 2003-04 (f) Income Tax Income Tax Income Tax Income Tax Income Tax Sales Tax (g) 4 In our opinion and according to the information and explanations given to us.03.81 lacs (The maximum amount outstanding during the year is Rupees 101.) Out of the above. (the Company) for the year ended March 31. 8. 2. During the course of our audit we have not observed any continuing major weakness in such internal controls.66 44.771.51 216. are not. The loans taken by the Company are demand loans and no repayment terms are stipulated for the principal or interest. In respect of Fixed Assets: (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The inventory has been physically verified during the year by the management. income tax (except some delay in advance tax payments and income tax dues).51 lacs. According to the information and explanation given to us. In our opinion. exceeding Rupees one lakh. which in our opinion.301 of the Companies Act.The amount outstanding as on 31. In respect of the contracts or arrangements referred to in section 301 of the companies act. is reasonable having regard to the size of the company and the nature of its assets. 1956. In respect of its inventories: (a) (b) 6. In our opinion. 2010] 1. The amount outstanding from those parties as on 31-03-2010 is Rs. income tax which have not been deposited on account of dispute. The loans given by the company are demand loans and no repayment terms are stipulated for the principal or interest. secured or unsecured. 6.2010 for a period of more than six months from the date they became payable. prejudicial to the interest of the Company. No material discrepancies were noticed on such verification.2010 is Rupees 1.55 12. custom duty. (b) (b) (c) (d) (e) (c) S.74 lacs (The maximum amount outstanding during the year is Rupees 6. 217. cess and other material statutory dues applicable to it. employees’ state insurance. Therefore. the Company has an internal audit system commensurate with the size and nature of its business. the provisions of clause (vi) of paragraph 4 of the order are not applicable to the Company. 5. 217.301 of the Companies Act. and with regard to sales of goods and services. All the assets have not been physically verified by the management during the period but there is a regular programme of verification. the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section. the company is maintaining proper records of inventory. 1956: (a) In our opinion and according to the information and explanations given to us.28 33. prima facie. granted or taken by the Company to/from companies. In our opinion. According to the information and explanations given to us. In our opinion and according to the information and explanation given to us. the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. excise duty and cess were in arrears. According to information and explanation give to us. no undisputed amounts payable in respect of income tax. 1956. excise duty. There is no amount. wealth tax. Foods Ltd. The amount outstanding as on 31.385.81 lacs) The rates of interest and other terms and conditions of loans taken by the company.

debentures and other investments.No. Accordingly. The company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the financial year immediately preceding such financial year. According to information and explanations given to us. As per books and records maintained by the Company. nor we have been informed of such case by the management. 11. the term loans have been applied for the purpose for which they were raised. securities.082382 Firm No. The Company has not raised any monies by way of public issues during the year. nidhi. As per information & explanations given to us.05. prima facie. prejudicial to the interest of the Company. According to the information and explanations given to us..2010 Place : Gurgaon ANNUAL REPORT 39 .10.] 16. Accordingly. Chartered Accountants Tilak Chandna (Partner) M. the company had not issued debentures. Accordingly. we have neither come across any instances of material fraud on or by the Company. According to the information & explanation given to us. the Company has not granted any loans and advances on the basis of security by way of pledge of shares.004555N Date: 26. The Company is not a chit fund. 13. the Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act. the terms and conditions whereof are not. the Company is not dealing in or trading in shares.56 lacs for loans taken by subsidiaries/ enterprises controlled by the company and (ii) a sum of Rupees 3. According to the information & explanation given to us. and according to the information and explanations given to us. According to the information and explanations given to us. the provisions of clause 4(xiv) of the Companies (Auditor’s Report) order. carried out in accordance with the generally accepted auditing practices in India. 15. During the course of our examination of the books and records of the Company. For T U & Co. during the period covered by our audit report. mutual benefit fund or a society. Accordingly clause 4(xiii) of the Companies (Auditor’s Report) order. the company has given Guarantees of (i) a sum of Rupees 34. 19. clause 4(xii) of the order is not applicable.000 lacs for loans taken by others from banks or financial institutions. and according to the information and explanations made available to us. 21. we report that the no funds raised on short-term basis have been used for long-term investment.009. 2003 is not applicable to the Company. clause 4(x viii) of the order is not applicable. 14. debentures and other securities. the Company has not defaulted in repayment of any dues to financial institutions or banks. 12. 18. clause 4(xix) of the order is not applicable. Accordingly. 2003 are not applicable to the company. According to the information and explanations given to us and on an overall examination of the balance sheet of the Company. No long-term funds have been used to finance short-term assets except working capital. 20. noticed or reported during the year. 17.

397.41 2.84 17.818. in Lacs) PARTICULARS SOURCES OF FUNDS SHAREHOLDERS' FUNDS Share Capital Reserves & Surplus LOAN FUNDS Secured Loans Unsecured Loans DEFERRED TAX LIABILITY TOTAL APPLICATION OF FUNDS FIXED ASSETS Gross Block Less: Depreciation Net Block Capital Work-in-Progress INVESTMENTS CURRENT ASSETS.10 62.41 3.BALANCE SHEET AS AT MARCH 31.Accounts & Taxation . No.13 2.762.33 226.996.25 8.691.611.51 387.663.54 13.221.04 178. : 082382 DATED : 26.17 231.59 1.621.18 8.68 8.07 8.276.733.12 6.567.41 61.848.76 6.05.440.75 248.588.469.733.160. LOANS & ADVANCES Inventories Sundry Debtors Cash & Bank Balances Other Current Assets Loans & Advances LESS: CURRENT LIABILITIES & PROVISIONS Current Liabilities Provisions NET CURRENT ASSETS Miscellaneous Expenditure (to the extent not written off) TOTAL Significant Accounting policies Notes to accounts The schedules referred to above form an integral part of Balance Sheet 16 17 71.38 10.97 6.582.929.160.94 2.41 61.26 5 6 44.08 470.94 7.427.551.00 11.825. 2010 (Rs.29 42.48 1 2 3 41. Chartered Accountants ASHWANI ARORA Joint Managing Director By TILAK CHANDNA (PARTNER) M.17 47.83 314.13 61.226.59 466.25 55.748. 2010 March 31.67 1.99 13.822.689.27 5.63 4.614.13 37.934.02 14.25 4.848.931. 2009 For and on behalf of the Board This is the Balance sheet referred to in our report of even date For T U & Co.88 71.66 SCHEDULE March 31.763.044.2010 PLACE : Gurgaon MONIKA CHAWLA JAGGIA Company Secretary SURINDER ARORA Joint Managing Director SOM CHOPRA Vice President.153.41 8 7 3.574.00 4 17.171.96 9.823.

23 4.41 (1.342.PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.95 3.617. in Lacs) PARTICULARS INCOMES Sales Other Incomes Accretion/Decretion to Stock TOTAL EXPENDITURES Material Consumed Purchases Manufacturing Expenses Administrative.77) 50.660.42 1.791.96 2.21 71.577.47 2.04 222.70 249.000.50 107.41 9.23) 1.70 1.082.069.55 773.37 69.75 8. 2010 March 31.49 13 14 15 4 12 36.494. 2009 NET PROFIT AFTER TAX FOR THE YEAR Significant Accounting policies Notes to accounts The schedules referred to above form an integral part of Profit & Loss Account For and on behalf of the Board This is the profit and loss referred to in our report of even date For T U & Co.714. Chartered Accountants ASHWANI ARORA Joint Managing Director By TILAK CHANDNA (PARTNER) M.03 651.00 51.859.439.14 9.11 2.88 32.912.314.01 19.05.80 2. Selling & Other Expenses Financial Cost Depreciation TOTAL PROFIT BEFORE EXTRAORDINARY INCOME/ ADJUSTMENT/EXPENSE Mark To market Adjustment on Outstanding Derivative Transaction Prior Period Items PROFIT BEFORE TAXES Less : Tax Expense a) b) c) d) e) Income Tax-Current Year Fringe Benefit Tax-Current Year Deferred Tax Liability/(Asset) Income Tax/FBT Earlier Years MAT Credit Receivables Earlier Year Balance brought down from previous year AMOUNT AVAILABLE FOR APPROPRIATION APPROPRIATIONS a) b) General Reserve Dividend (Not Subject to TDS) .239.06 1.412.835 4. Weighted Average of Share 16 17 10.420.96 1.71 34.12 2.866.070.14 SCHEDULE March 31.269.779.777.Dividend Distribution Tax Earlier Year BALANCE CARRIED TO BALANCE SHEET EARNINGS PER SHARE Basic & Diluted Earnings per Share in Rs.90 69.48 73.891.302.422.98 9 10 11 69. No.44 156.Dividend Distribution Tax current Year .35 8.263.32 5.147.42) 5.30 1.281.082.2010 PLACE : Gurgaon MONIKA CHAWLA JAGGIA Company Secretary SURINDER ARORA Joint Managing Director SOM CHOPRA Vice President.590.41 7.899. : 082382 DATED : 26.49 23.188.929 10.97 9.81 22.267.778.Accounts & Taxation ANNUAL REPORT 41 .27 (265.51 73.76 391.37 (54.74 1.Dividend on Equity Shares .73 60.329.78 37.45 19. 2010 (Rs.02 3.76 11.975.683.

87 9.From Subsidiaries 9.500.543.35 lacs) is secured by Properties under Development for office Block.18 10.000 (Previous year 4.082.611. 4.00 March 31.000 Equity Shares of Rs. 10 each) ISSUED SUBSCRIBED & PAID UP 26.269. 8056. c) The Balance of Rs. in Lacs) PARTICULARS SCHEDULE : 1 SHARE CAPITAL AUTHORISED 30. b) Secured by mortgage & Hypothecation of fixed assets of the Company.84 2.61 108.611.1035.40 lacs) is secured by Equitable Mortgage/Hypothecation/ 1st charge on fixed assets of the Company.691.000) equity shares of Rs. Finished goods.74 13.99 2.421. 2010 March 31.791.09 24. 3) Secured Working Capital Loans & Term Loans other than Vehicles Loans are also personally guaranteed by Directors.155.172.62 lacs (Previous Year 203.90 3.91 2.600.000.85 4. 2684.04 5. 2009 SCHEDULE : 2 RESERVES & SURPLUS Capital Reserve/Subsidy Share Premium As per last account Addition during the year Less: Expenses for issue of Shares General Reserves As per last account Addition during the year Profit & Loss A/c As per Profit & Loss account TOTAL SCHEDULE : 3 LOAN FUNDS A) SECURED LOANS a) b) c) Rupee Working Capital Loans .505 (Previous Year 8.560.SCHEDULES FORMING PART OF THE BALANCE SHEET (Rs. 5) The Term Loans repayable within next one year Rs.00 2.226. 2.934.000. 4) Short term loans are personally guaranteed by the Directors.41 108.52 3.51 lacs).90 249.69 119.66 464.64 205.48 8. 10 each fully paid up issued for consideration other than cash.374.000.From Banks (Refer Note 2 & 3) Foreign Currency Working Capital Loans .11 41.044. 117.414 Equity Shares of Rs 10 each fully paid up (Previous Year 22.000 Equity Shares of Rs.388.098.82 lacs (Previous Year 4271.87 107.96 30. NIL (Previous Year 85.From Banks .40 357.388.From Banks (Refer Note 1. 10 each (Previous year 25.663.221.728.374.118.33 lacs) is secured by Hypothecation of Vehicles.15 44. 10 each as fully paid up by way of bonus shares by capitalisation of Profits.499.03 464.84 2.61 TOTAL B) UNSECURED LOANS a) Short Term Loan .33 37.17 TOTAL Note: 1 a) A sum of Rs.50 714. 10 each fully paid up) TOTAL Note: The above includes: 1) 2) 8.33 25.388.95 Lacs (Previous year Rs.From Banks (refer to Note 2 & 3) Rupee term Loans . stores & spares and Receivables.94 9.567.899.929 Equity Shares of Rs.99 3. 2 a) Secured by Hypothecation of stock of Raw Material.505) equity shares issued of Rs.600.41 2.41 3. 2(b) & 3) . .226.From Others 8.51 8.52 8.190.41 17. b) A Sum of Rs.

875.929.68 188.69 1.80 76.32 10.00 Goodwill 149.34 Office Equipment 371.00 38.60 Sub-total 14.97 5.52 277.89 223.57 8.621.23 109.26 2. Tangible Assets 19.766.18 261. 134. 43 ANNUAL REPORT .281.551.42 5.2010 NET BLOCK As at 31.85 300.86 Total 14.SCHEDULES FORMING PART OF THE BALANCE SHEET (Rs.2009 During the Year Written Back/ Adjustment Upto 31.598.31 5.166.95 802.818.2010 Upto 31.91 Land 1.23 3.72 47.670.68 2.52 134.04.399.137.095.86 166.88 417.81 2.185.807.54 Plant & Machinery 9.68 1.422.65 13.07 68.22 519.98 251.60 30.49 149.86 31.040.63 1.996. in Lacs) SCHEDULE : 4 FIXED ASSETS AS AT 31ST MARCH 2010 DEPRECIATION As on 31.21 449.621.79 10.58 165.03.551.402.49 3.411.66 35.67 8.58 6.27 4.09 6.06 7.03.19 * Includes Building Worth Rs 51.765.37 Furniture & Fixtures 130.38 Vehicle 770.51 83.98 101.27 3.095.929.91 1.44 11.67 305.02 5.101.11 5. which belongs to subsidiary company Daawat Foods Ltd.40 395.68 4.03 1.98 Building* 2.492.70 113.90 17.423.402.70 1.70 1.52 17.21 148.88 61.03.21 B.28 704.00 118.766.37 154.86 Brand Equity 300.561.21 Previous Year 10.59 8.38 12.822.18 10.369.575.00 15.95 60.95 13.13 353.41 14.69 69.44 22.67 283.87 45.455.20 405.49 47.690.645.68 150.2009 GROSS BLOCK Written Back/ Adjustment Particulars Cost as at 01.19 22.19 7.2009 Addition During the Year A.116.82 40.00 111.00 135.50 1.86 Sub-total 449.09 10.68 6.03.41 1.41 3.97 Lacs Constructed on Lease hold land taken.00 - Intangible Assets 150.529.2010 As at 31.953.30 26.38 5.03.51 824.615.

82 Lacs) .01 80.02 Note: 1) 19. Year 13. 13.000) Shares fully paid up M/s Raghunath Agro Industries (Refer Note 1) 42.Emmsons Intl.055 Units of Reliance Vision Fund (c) Fully Paid-up Equity Shares (Unquoted) 500 Equity Shares of India International Marketing Ltd.25 4.249. Ltd. Year 1. Year 250. International Ltd.300 (Pr.999.855 Units of Templeton India Equity Income Fund Growth 12.944 (Pr. of Rs.324.000) Shares fully paid up of AED 100 each Daawat Foods Ltd.99 25.48 1. Year 49.324.931.46 4. 2010 Book Value Aggregate value of quoted Investment Trade Investments Other Investments Trade Investments Other Investments 12.000 (Pr.440.71 32.00 119.994 (Pr.96 5. Year 100. Year 800..03.000 (Pr.99 25.01 80. 0.799.10 each Sona Global Ltd.T.931.23 1.33 19.22 3.440.LONG TERM (i) Subsidiary Companies Equity Shares (Unqoted) L.10 each 250. 2.33 13.LONG TERM (a) Fully Paid-up Equity Shares (Quoted) Nil (Pr.881.50 0.02 March 31.48 13.00 119. 811.300) Equity Shares .581 (Pr.48 1.96 5.2010 is Rs. Year 10. and LT Foods Ltd.00 1.48 March 31. (Pr. Infotech (P) Ltd.00 1.71 558.43 3. INC CALIFORNIA 100.22 4.174.000) Equity Shares fully paid up of Rs. 2009 (ii) Investment in Partnership Firm (iii) Investment in Associates 4. Year 2.648.10 each fully paid up Staple Distribution Company Ltd.40 5.619 Units of HDFC MIP Long Term Dividend Fund 2.50 0.944) Equity Shares fully paid up of Rs.500) Equity Shares of L. 2009 Book Value Market Value (d) Keyman Insurance Policies (e) Investment in Immovable Properties 5.74 March 31. 800.32 Lacs.89 252. having profit sharing ratio of 96% and 4% respectively.00 1.00 5.050) Non voting Equity Shares of Rs.23 Aggregate value of unquoted Investment The Partnership firm comprises of two partners namely Daawat Foods Ltd.45 179.30 0.60 269. Year 607. 1.SCHEDULES FORMING PART OF THE BALANCE SHEET (Rs.000 (Pr.DUBAI 10. Year 10.Andhra Bank (b) Investment in Mutual Funds (Quoted) 50.050 (Pr. 2010 March 31.30 0.875.05 190.72 13. Plan 894.10 each LT OVERSEAS NA.326) Equity Shares .99 3.05 172.799.03 0. The capital of the firm as on 31.10 each Nature Bio Foods Ltd.249.25 OTHER INVESTMENT .023. Year 42.00 5. in Lacs) PARTICULARS SCHEDULE : 5 INVESTMENTS TRADE INVESTMENTS . T.61 75.10 each 179.881.994) Equity Shares fully paid up of Rs.636 Units of Sundram BNP Paribas Select Midcap Div. 49.47 75.000 Units of Principal PNB Long Term Equity Fund 48.72 Market Value 0.40 0.00 1.13 4.581) Fully paid up Equity Shares of Rs.500 (Pr.

10 62.748.36 464. 2010 March 31.TOTAL OTHER CURRENT ASSETS SUB.SCHEDULES FORMING PART OF THE BALANCE SHEET (Rs.76 1.10 20.94 226. CASH & BANK BALANCE a) Cash On Hand i) In Indian Currency ii) In Foreign Currency b) With Scheduled Banks i) In Current Account ii) In Deposits/Margin Money SUB.86 11.Considered Good Others 387. 96. Nil (Prev.92 1.357.26 122.41 1.341.85 136.76 248.96 8.56 178.00 March 31.11 - 25.551.614.61 18.71 8.75 1. in Lacs) PARTICULARS SCHEDULE : 6 CURRENT ASSETS.TOTAL *Due from Companies under Same Management within the meaning of sub section (1B) of section 370 Kusha Corporation Staples Distribution Co. Nature Bio Foods Ltd.36 189.160.94 38.41 61.427.276.533.81 385.80 5.932.22 lacs) ANNUAL REPORT 45 Loans and advances to subsidiary companies 4.73 157.94 630. Ltd.083.28 470.766.TOTAL TOTAL * Refer to Note No.228.79 44.22 10.10 6.29 858. Year Rs.469.49 1.643.75 248.67 1.25 23.160.02 211.139.00 Maximum amount outstanding during the period to whole time directors is Rs.10 320.08 SUB. CURRENT ASSETS INVENTORIES As verified.50 2.70 309. taken and valued by Management a) b) c) Raw Material Finished Goods Consumable Stores & Spares 23.25 7.171. LOANS & ADVANCES A.12 502.33 226.05 59.47 4.51 0.689.54 42.628. 13 of Notes to accounts 2.TOTAL B.85 53.492.390. 2009 SUB-TOTAL SUNDRY DEBTORS * (Unsecured Considered good unless stated otherwise) a) b) Debts Outstanding for a period exceeding Six Months .081.86 1.19 .910. LOANS AND ADVANCES (Unsecured Considered Good unless stated Otherwise) Firms in which Company is a partner* Advances Recoverable in Cash or in kind or value to be received Security Deposit Income Tax MAT credit Entilement Others SUB.

032.12 6.54 4.373.73 824.99 3.26 SCHEDULES FORMING PART OF THE PROFIT & LOSS ACCOUNT PARTICULARS SCHEDULE : 9 SALES EXPORT SALES Rice Other Items Add: Export Incentives Add: Exchange Fluctuation DOMESTIC SALES Rice Other Items TOTAL 36.39 7. Yr.56 2. 108.17 382.374.24 114.069.762.SCHEDULES FORMING PART OF THE BALANCE SHEET (Rs.397.00 lacs (Pr.67 16.58 543. 6048.172.21 (2.26 34.74 854.00 222.70 14.588.727.07 943. Tax on Dividend) MTM Adjustment on Outstanding Derivatives Leave Encashment Others TOTAL * ** SUB-TOTAL Acceptances are against Letter of Credits opened by Banks and it includes a sum of Rs.24 901.67 178.07 1. Creditors include a sum of Rs. 2009 Due to Firm in which Company is a partner Security Deposits from Suppliers/ Distributor Other Liabilities Unclaimed Dividend Exchange loss accrued on Forward Contracts SUB-TOTAL PROVISIONS Gratuity Income Tax-Current Year Income Tax.82 7. 2010 March 31.43 8.574.995.378.55 30. 2009 .20 34.12 38.27 60.54 13.96) 32.82 74.34 69.889.24 2.20 24.Earlier Years Fringe Benefit Tax Dividend (Incl. Rs.25 March 31.82 795.24 lacs) due to Capital Goods Suppliers.88 lacs (Pr.43 8.86 69.22 42.13 13.617.74 2.71 841.74 718.56 1.78 37. SCHEDULE : 8 MISCELLANEOUS EXPENDITURE (To the extent not written off or adjusted) Deferred Revenue Expenditure Opening Balance Less: Amount Amortised to date TOTAL 1. in Lacs) PARTICULARS SCHEDULE : 7 CURRENT LIABILITIES & PROVISIONS Acceptances * Sundry Creditors Small Scale Industries Others ** 367.88 108.94 30.34 13.920.48 314.87 9.21 March 31.42 lacs) for which company has given gurantee to banks.00 428.92 16. 1500.97 24.065.305.92 540. 2010 March 31.70 3.621.11 74.382.63 46.06 34.516.439.295.825.25 444.032.823.75 42. Yr.

010.24 23.45 8.95 66.975.09 0.04 72.68 1.31) (351.76 595.83 275. in Lacs) PARTICULARS SCHEDULE : 10 OTHER INCOME Profit from Sale of Shares Dividend from Non Trade Investments Profit from Sales of Fixed Assets Income from Long term & Trade Investment Interest on Fixed Deposits Profit From Exchange Difference Other Receipts TOTAL SCHEDULE : 11 ACCRETION/(DECRETION) TO STOCK OPENING STOCK CLOSING STOCK Accretion/(Decretion) to stock SCHEDULE : 12 MATERIAL CONSUMED OPENING STOCK Bardana Packing Material Paddy PURCHASES Paddy Bardana Packing Material CLOSING STOCK Bardana Packing Material Paddy TOTAL SCHEDULE : 13 MANUFACTURING & TRADING EXPENSES Ware House/Factory Rent Wages Job Work Factory Insurance Power and Fuel Security Services Research & Development Packing Expenses Repair & Maintenance Repair to Machinery Repair to Building Repair (Others) Other Manufacturing Expenses CONSUMABLES.910.SCHEDULES FORMING PART OF THE PROFIT & LOSS ACCOUNT (Rs.780.32 37.05 2.83 192.68) (23.492.12 329.61) 32.228.16 209.05 31.11 18.70 36.62 696.51 15.084.54) 1.41 122.61 52.56 0.83 35.61 33.590.91 13.94 (495.719.97) (23.779.253.778.84 27.791.205.263.78 0.91 50.21 19.08 105.40 459.24) (23.45 642.79 (357.48 357.18 376.891.10) 36.69) (347.75 ANNUAL REPORT 47 83.33 773.31 134.82) (23.59 17.11 2.62 (189.57 59.31 90.701.53 274.910.68 23.459.30 18.85 20.932.51 31.25 1.245. 2009 8.37 18.36 523. 2010 March 31.19 695.69 347.36 2.79) 1.94 .645.94 0.43 (136. STORES & SPARES CONSUMED Opening Stock Add: Purchases Less: Closing Stock TOTAL March 31.80 0.01 86.40 102.23 136.94 375.85 2.228.799.205.45 189.19 9.79 21.247.54 380.

62 2.97 307.30 3.56 997.258.96 19.267.089.967.03 55.32 0.65 321.65 1.63 75.43 5.32 855.84 80.54 2. Wages and Bonus Contribution to Provident and Other Fund Staff Welfare Expenses Advertisement Insurance Legal & Professional Charges Rates & Taxes Donation & Charity Payment to Directors Directors’ Remuneration Directors’ Sitting Fees Directors’ Perquisites Contribution to Provident Fund Payment to Auditor Fines & penalties Rent Vehicle Running & Maintenance Other Administrative Expenses Travelling & Conveyance Expenses (including Directors' Foreign Travelling) Rebate & Discount Commission to Selling Agents Clearing.48 865.17 275.866.83 36.36 March 31.81 29.03 4.01 8.24 68.057.89 315.68 3.16 22.95 2.10 1.40 60.00 114.853.78 22.46 291.114.66 136.18 242.54 2.28 19.68 564.355.45 45.172.431.65 204.45 176.SCHEDULES FORMING PART OF THE PROFIT & LOSS ACCOUNT (Rs.64 54.96 2.046. 2009 SCHEDULE : 15 FINANCIAL COST Interest on Working Capital Loans Interest on Fixed Loans 2.44 707.10 14.57 1.919.38 28.51 Bank Charges Premium on Forward Contract Loss on Exchange Fluctuation TOTAL 206.46 49.77 1.66 639.28 16.42 296.147.71 336.80 78.20 18.60 113.74 372.23 100.19 7.03 57.73 346.91 400.86 4. Forwarding & Freight Charges Export Duty Market Development Expenses Business Promotion Expenses Freight Outward Other Selling Expenses Amount/Assets Written Off/ Back Deffered Revenue Expenses W/o TOTAL 130.78 Less: Capitalised 48. SELLING & OTHER EXPENSES Salaries.66 4.74 .27 3.24 368.262.45 26. in Lacs) PARTICULARS SCHEDULE : 14 ADMINISTRATIVE.95 208.99 127.31 219. 2010 March 31.683.70 3.98 0.41 172.

Examples of such estimates include useful life of fixed assets. Management evaluates the effect of accounting standards issued on an on-going basis and ensures they are adopted as mandated by the ICAI. being not material.16 SIGNIFICANT ACCOUNTING POLICIES 1. INVENTORIES The inventories are measured at lower of cost or net realizable value. such contributions to the plan undertaken by the Company will take care of its liability on account of gratuity payable under the payment of Gratuity Act. if any. Goodwill and Brand Equity . EARNING PER SHARE In determining earning per share. jute bags. are amortized over a period of 20 years. BASIS OF PREPARATION OF FINANCIAL STATEMENTS The accompanying financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India under the historical cost convention on the accrual basis. USE OF ESTIMATES The preparation of the financial statements in conformity with Accounting Standards & GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. packing materials. and the amount can be reasonably estimated. Cost of accumulating compensated absences that has accumulated on the balance sheet date is measured and recognized as short term benefits. write-off of deferred revenue expenditures and intangible assets. 3. 2. Depreciation on fixed assets is provided on written down value method at the rates and in the manner prescribed in schedule XIV of the Companies Act. The number of shares used in computing earning per share is the weighted average number of shares outstanding during the period. income taxes. Cost of Finished Goods is determined on Absorption costing method. Intangible Assets i. 8. after deducting amount already paid. The cash flows from regular revenue generating. 1956. 7.Trade mark. in accordance with the Accounting Standard on “Intangible Assets” (AS-26) issued by the Institute of Chartered Accountants of India. FOREIGN CURRENCY TRANSACTION Foreign currency transactions (1) transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the date of transaction (2) monetary items denominated in foreign currencies at the year end are reinstated at year end rates (3) non monetary foreign currency items are carried at cost (4) any income or expense on account of exchange difference either on settlement or translation is recognized in the profit and loss account. Post Employment Benefits (I) GRATUITY: Company is recognizing liability of gratuity payable to its employees to the extent of contribution is determined to be paid by contribution plan undertaken by the Company with Life Insurance Corporation of India. FORWARD EXCHANGE CONTRACT: Forward exchange contracts (1) entered into to hedge an existing asset/liability (i) the premium or discount arising at the inception of such forward contract is amortized as expense or income over the life of the contract (ii) forward exchange contract is recorded as an asset / liability and (2) entered into to hedge a firm commitment or highly probable forecast transaction. (b) (c) 5. provisions for doubtful debts. Current Investments are carried at the lower of cost and fair value. as the license is for the indefinite period. Cost of overseas investments comprises the Indian Rupee Value of the consideration paid for the investment. thereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. in the carrying value of each investment. The number of shares used in computing diluted earning per share comprises the weighted average shares considered for deriving basic earning per share. except where newly issued accounting standard is initially adopted by the Company. REVENUE RECOGNITION The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. CASH FLOW STATEMENT Cash flow are reported using the indirect method. other than temporary. Investments are either classified as Current or Long Term. stores and spares. conversion and other costs incurred in bringing them to their respective present location and condition. Intangible Asset acquired are amortized over a period of 10 years. is recognized as a liability in the balance sheet and expensed in the profit and loss account unless another accounting standard requires or permits the inclusion of the benefits in the cost of an asset. acquired from outside. financing. Dividends. the loss or gain is recognized in the profit and loss account. and investing activities of the Company are segregated. 4. cost of ANNUAL REPORT 49 (d) . the Company considers the net profit after tax. Contingencies are recorded when it is probable that a liability will be incurred. GAAP Comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of Companies Act. FIXED ASSETS AND DEPRECIATION (a) Fixed assets are stated at cost less accumulated depreciation/amortization/impairment Loss. Cost of the Raw Material. In the view of the Company. Company has not undertaken the exercise 6. 1956. EMPLOYEES BENEFITS Short Term Benefits The undiscounted amount of short term employee benefits expected to be paid in exchange for services employees services rendered. Cost of inventories comprises cost of purchase. By Products are valued at net realizable value. These accounting policies have been consistently applied. trading and other products are determined on FIFO basis.e. 9. and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. are recorded as income in the Profit & Loss Account. is taken as part of raw materials and measured accordingly. Long Term Investments are carried at cost and provisions recorded to recognize any decline. The amounts paid under Key man Insurance Policies are considered as Investment. Accordingly. Borrowing cost is included in the cost of inventory as inventory generally held by the Company is an asset that necessarily takes a substantial period of time to get ready.SCHEDULES FORMING PART OF THE BALANCE SHEET AND PROFIT & LOSS ACCOUNT SCHEDULE . 10. Actual results could differ from those estimates. Material in process. based on management intention at the time of purchase. All costs including financing cost till commencement of commercial production attributable to the fixed assets are capitalized. INVESTMENT Trade Investments are the investment made to enhance the Company business interest.

of measuring and recognizing gratuity liability under defined benefit plan in accordance with The Payment of Gratuity Act, 1972. The amount for defined contribution plan is recognized as an expense in the profit and loss account, unless another accounting standard requires or permits the inclusion of the benefits in the cost of an asset. (II) PENSIONS: The pension benefits are recognized in the form of defined contribution plan required to be made by the Company in accordance with and under The Employees Provident Fund and Miscellaneous Provisions Act, 1952 and rules made there-under.

originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period, based on prevailing enacted or substantially enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. 12. BORROWING COSTS Borrowing Costs attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset. Borrowing costs, which are not relatable to qualifying assets, are recognized as an expense in the period in which they are incurred. The basis of determination of qualifying assets for the purpose of AS-16 is those assets which are not put to use immediately on acquisition but take time for construction/assembly before these are put to use. 13. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS All known liabilities are provided for in the accounts except liabilities of a contingent nature, which have been adequately disclosed in the accounts. 14. ACCOUNTING FOR DERIVATIVES Pending compliance with AS 30 “Financial Instruments Recognition and Measurement” issued by the Institute of Chartered Accountants of India, premium paid, gains and losses on derivatives are recognized in Profit & Loss account in accordance with announcement of Institute of Chartered Accountants of India. 15. OTHER ACCOUNTING POLICIES These are consistent with the generally accepted accounting principles and practices.

(III) OTHER LIABILITIES: Company is not measuring and recognizing any other liability. Other Long Term Employee Benefits Company has not determined and recognized liability and expense on account of other long term benefits to employees as in its opinion no reliable estimate of the obligation can be made at present. The Company, though, may have such liability on account of long term compensated absences and long term disability benefits. 11. INCOME TAX Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period in which the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable. The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that
SCHEDULE NO. 17 NOTES TO ACCOUNTS 1. CONTINGENT LIABILITIES :

(Rs. in Lacs) 2009-10 2008-09

(a) Claims against the Company not acknowledged as debts which in the opinion of the Management are not tenable/under appeal at various stages: (Figures as per demand notice received by the Company exclusive of interest thereafter)# (i) Income-Tax Demands Assessment Year 1999 – 00** Assessment Year 2000 – 01 * Assessment Year 2000 – 01 (Penalty) Assessment Year 2002 – 03 ** Assessment Year 2002 – 03 (Penalty) Assessment Year 2003 – 04 Assessment Year 2003 – 04 (Penalty) Assessment Year 2004 – 05 (Penalty) Assessment Year 2005 – 06 (Penalty) Assessment Year 2006 – 07 Assessment Year 2006 – 07 (Penalty) Sales Tax Demand – Ghaziabad HRDF Demand of Market Committee, Sonepat FCI Demand for Differential Price / Freight / Taxes Labour Related Claims Trademark Related Claims 5.51 135.18 81.10 33.66 NIL 44.55 NIL NIL NIL 11.70 0.95 41.91 91.75 339.00 9.62 NIL 123.92 1011.33 1027.33 34009.56 14.68 451.40 5.51 135.18 81.10 33.66 4.39 44.55 4.05 5.27 8.17 11.70 NIL 41.91 166.75 339.00 9.62 20.00 93.26 108.53 1008.42 23025.50 14.67 509.50

(ii) (iii) (iv) (v) (vi) (c)

(b) Guarantees given by Banks on behalf of the Company Letter of credits opened with bankers and remaining outstanding (d) Liability against Duty Saved under EPCG Licenses Issued (e) Guarantee given by Company to Bank on behalf of Subsidiary/ Firm in which the Company is a Partner (f) Guarantee given by Company to subsidiary for export obligation under EPCG scheme (g) Guarantee given by Company to other Company on behalf of Subsidiary

Notes: * The demand is disputed and the matter is subjudice with CIT who has directed the AO to provide Remand Report. The Company has deposited Rs. 45.00 Lacs against this disputed demand. ** These are departmental appeals with ITAT and ITAT has redirected the AO to recomputed the deduction under section 80IA and 8OHHC. # Future cash outflows in respect of (a) above can be determined only on receipt of Judgment/ Decisions pending with various Forums/ Authorities.

2.

CAPITAL COMMITMENTS (NET OF ADVANCES) NOT PROVIDED FOR: (Rs. in Lacs) Capital Contract remaining to be executed 1321.93 (34.76)

9.

List of Small Scale Industrial Undertakings to whom payment is outstanding for more than 30 days as on 31st March, 2010 to the extent available to the Company, is as under: Adishri Marketing & Packaging Co, Ashmit Packaging Co, Avon Containners Pvt Limited, Bag Poly International Pvt. Ltd., Bharat Hosiery Factory, Box & Carton India Pvt. Ltd, Daawat Foods Pvt. Ltd., Bhopal, G.R.M. Plastic, Golden Rolls Pvt.Ltd, Indo Pack Industries, Jhaveri Flexo India Ltd., JBL Saks Pvt. Ltd., Jets Inks Private Limited, Kris Flexipacks Pvt. Ltd., Leotronic Scales Pvt. Ltd, Montage Enterprises Pvt. Ltd., Mheshwari Printpack, Nanak Chand Bhagwan Dass Jain, New Sales Corporation, Neel Kanth Packaging Industries, Nichrome India Limited, Nirmal Packaging Systems, Orient Press Limited, Packaging India Pvt. Ltd, Pearl Polymers Limited, Rajesh Die Cutting Works, Rajeev Enterprises, Reed Midway Packaging Company of, Sanmati Printo Graphics, Shri Radhey Enterprises, Shree Ram Corg Pack, S R S Engg. Co., S.R. Agro Engineering, The Paper Products Ltd., Unique Corrugated Containers, Visitech Engineers Pvt. Ltd.

3.

The Company has been advised that the computation of net profit for the Directors’ remuneration under section 349 of the Companies Act, 1956 need not be set out since no commission has been paid to the Directors. Fixed monthly remuneration has been paid to the Managing Director and to the Directors as per term of their appointment
REMUNERATION PAID OR PAYABLE TO DIRECTORS (Rs. in Lacs) FUNCTIONAL DIRECTORS CHAIRMAN CUM MANAGING DIRECTOR’S REMUNERATION - Salary - Perquisites OTHER WHOLE-TIME DIRECTORS’ REMUNERATION - Salary - Perquisites* INDEPENDENT DIRECTORS Sitting Fees 3.10 (2.20) 78.23 (69.36) 14.98 (18.32) 60.00 (31.18) NIL (NIL) 10.

DEFERRED TAX LIABILITY The Company has provided the Deferred Tax Liability as per AS-22 issued by ICAI, the details of which are as under:(Rs. in Lacs) AS AT 31.03.2010 Deferred Tax Liabilities on account of WDV of Fixed Assets Keyman Insurance Policy Deferred Revenue Expenditure Total Deferred Tax Liabilities Net DTL credited to P & L Account 262.62 64.74 60.52 387.88 156.47 231.41 0.00 0.00 231.41 51.27 AS AT 31.03.2009

*Excludes free telephone at the residence and car with chauffeur for personal use of which monetary values are not ascertained.

4.

PAYMENTS TO STATUTORY AUDITORS (inclusive of Service Tax) (Rs. in Lacs) 17.65 (15.56) 0.00 (0.30)

(a) As Auditor (b) As advisor, or any other capacity, in respect of(i) Management services (c) in any other manner Total 5. 6. 7.

11. DISCLOSURE AS REQUIRED BY THE CLAUSE 32 OF THE LISTING AGREEMENT Loans and Advances includes following sums due from:(Rs. in Lacs)
Outstanding Maximum Balance Amount as on Outstanding 31.03.10 during the year

i.

Subsidiaries / fellow subsidiaries of the company Nature Bio Foods Ltd. Daawat Foods Ltd. Staple Distribution Company Ltd. Sona Global Ltd., Dubai, UAE LT Overseas North America Inc., California, USA L. T. International Ltd. Kusha Inc., California, USA Nice International FZE, Dubai, UAE Raghunath Agro Industries, Amritsar 392.15 (1225.39) 620.04 (1020.00) 0.00 (10.18) 150.68 (124.34) 133.13 (133.13) 5.36 (1.69) 2793.79 (36.45) -101.81 (NIL) NIL (-52.05) 67.97 (55.69) 16.41 (4.08) 1225.64 (1233.79) 4116.89 (4689.86)

1.90 (1.10) 19.55 (16.96)

Travelling Expenses include foreign travelling expenses of Rs.104.14 Lacs (Previous Year - Rs. 106.46 Lacs). As required by Accounting Standard 28 “Impairment of Assets” issued by the Institute of Chartered Accountants of India, the company has carried out the assessment of impairment of assets. There has been no impairment loss during the year.
PROVISIONS (Rs. in Lacs) As at 01.04.09 Provision made during the year 651.44 13.58 0.00 Adjust Payment As at -ments made 31.03.10 during the year 108.20 NIL 0.00 0.00 46.26 0.02 1519.06 13.58 24.22

150.68 (124.34) 133.13 (133.13) 5.36 (691.64) 2793.79 (40.77) N.A. (N.A.) 1033.29 (NIL) 68.34 (148.05) 16.43 (4.08)

8.

ii.

Associates LT Infotech Private Ltd.* Cordia LT Communications Pvt. Ltd.*

Income Tax (includes FBT) Gratuity Leave Encashment

975.82 46.27 24.24

*Interest free advances given by the Company to its Associates.

ANNUAL REPORT
51

Some of the receivables, loans & advances and payables are subject to confirmation from the parties.

21.94 (75.55)

12. The details of Raghunath Agro Industries, Phoola Road, Bhikiwind, Amritsar, Punjab, in which the Company is a partner are as under: (Rs. in Lacs) Sl. Name No. 1. 2. L.T. Foods Ltd. Daawat Foods Ltd. TOTAL Profit Capital Profit Sharing as on Sharing Ratio ** 31.03.10 Ratio 4% 96% 32.45 778.87 811.32 96% 4% Capital as on 31.03.09 558.74 49.08 607.82

13. Related Party Disclosure A. Related Parties and their Relationship I. Subsidiary Companies Sona Global Ltd., Dubai,UAE L T Overseas North America Inc., California,USA Daawat Foods Ltd. L T International Ltd. Nature Bio Foods Ltd. Staple Distribution Company Ltd. II. Fellow Subsidiaries Nice International FZE, Dubai, UAE Kusha Corporation, California, USA Enterprises controlled by Company Raghunath Agro Industries, Bhikiwind, Amritsar (PUNJAB) Associate Enterprises LT Infotech (Pvt.) Ltd. Cordia LT Communications Pvt. Ltd. Key Management Personnel Mr. Vijay Kumar Arora (Chairman & Managing Director) Mr. Surinder Arora (Joint Managing Director) Mr. Ashwani Arora (Joint Managing Director) Mr. Ashok Arora (President – Punjab Operations)

** The share of profits of LT FOODS Limited in the said partnership firm changed from 96% to 4% and the share of profits of Daawat Foods Limited in the said partnership firm changed from 4% to 96% w.e.f. 30.09.2009

Financial statement of Partnership firm as at 31.03.2010 is as under: (Rs. in Lacs) Assets Liabilities Revenues Expenditure 6485.86 (5766.04) 5674.54 (5158.22) 12607.74 (12134.72) 12273.75 (11934.71)

III.

IV.

V.

VI. Relatives of Key Management Personnel Key Management Personnel V.K.Arora Mother Parvesh Rani Wife Ranju Arora Brother Ashok Arora Ashwani Arora Surinder Arora Ashok Arora V.K.Arora Surinder Arora Ashok Arora V.K.Arora Ashwani Arora Ashwani Arora V.K.Arora Surinder Arora Sister Neelu Grover Son Abhinav Arora Daughter Sona Arora

Ashwani Arora

Parvesh Rani

Vandana Arora

Neelu Grover

Ritesh Arora

Sanjana Arora

Surinder Arora

Parvesh Rani

Sakshi Arora

Neelu Grover

Anmol Arora

Isha Arora Purva Arora

Ashok Arora

Parvesh Rani

Anita Arora

Neelu Grover

Aditya Arora Gursajjan Arora

VII. Enterprise owned or significantly influenced by group of individuals or their relatives having control or significant influence over the Company 1. Swami Freight Brokers 2. R S Rice & General Mills Transactions with Related Parties (Rs. in Lacs) Particulars Subsidiaries Fellow Subsidiaries Enterprises controlled by Company / Joint Ventures 280.98 (307.81) 176.59 (450.25) 137.67 (-10.52) (0.00) (0.00) (0.00) 0.00 (-4.25) 0.00 (0.00) (0.00) Key Management Personnel (KMP) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) 138.23 (118.86) Relat.ives of KMP Enterprises Total

Sales (Including Fixed Assets) Purchase of raw materials, intermediaries & finished goods Loans & Advances (Net of repayments) Purchase of Investment Sale of Investment Inter Corporate Deposits Received Interest (Expense)/ Income Rent (Expenses)/ Income Remuneration

5840.49 (3361.87) 5641.50 (8869.27) 49.79 (-1019.00) (75.00) 631.73 (0.85) (0.00) 105.33 (227.92) 43.02 (55.67) (0.00)

18105.51 (18971.77) 1.09 (3.66) 46.26 (0.00) (0.00) (0.00) (0.00) 0.00 (0.00) 0.00 (0.00) (0.00)

(0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) 0.00 (7.31) (0.00)

(0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)

24226.98 (22641.44) 5819.19 (9323.18) 233.73 (-1029.52) (75.00) 631.73 (0.85) (0.00) 105.33 (223.67) 43.02 (62.98) 138.23 (118.86)

(Rs. in Lacs) Particulars Subsidiaries Fellow Subsidiaries Enterprises controlled by Company / Joint Ventures 0.00 (0.00) 0.00 (17.05) 41.01 (-175.54) 0.00 (0.00) Key Management Personnel (KMP) 82.87 (149.31) 0.00 (0.00) 0.00 (0.00) 0.00 (0.00) Relatives of KMP Enterprises Total

Dividend Reimbursement of Expenses Balance Outstanding as at the year-end Misc Income

168.75 (337.50) 10.69 (0.00) 1677.50 (1854.71) 0.19 (0.51)

0.00 (0.00) 303.37 (0.00) 5284.66 (5456.35) 0.00 (0.00)

52.75 (14.68) 0.00 (0.00) 0.00 (0.00) 0.00 (0.00)

(0.00) 0.00 (0.00) 0.00 (0.00) 0.00 (0.00)

304.37 (501.49) 314.07 (17.05) 7003.17 (7127.52) 0.19 (0.51)

DISCLOSURE OF TRANSACTIONS WITH RELATED PARTIES (Rs. in Lacs) Purchase/(-) Sale of Investments Daawat Foods Ltd. Staple Distribution Company Ltd. LT Infotech Private Ltd. -631.73 (0.00) 0.00 (75.00) Cordia LT Communications Pvt. Ltd.

(Rs. in Lacs) 12.28 (92.36) 12.33 (77.89)

Revenues Daawat Foods Ltd. Nature Bio Foods Ltd. Staple Distribution Company Ltd. Nice International FZE, Dubai Kusha Corporation, California Raghunath Agro Industries

Remuneration to Key Management Personnel Vijay Kumar Arora 2375.79 (1618.13) 32.58 (483.75) 3432.12 (1259.99) 252.38 (77.39) 15581.69 (18894.38) 280.98 (307.81) Surinder Arora Ashwani Arora

60.00 (31.18) 39.11 (43.72) 39.11 (44.26)

Interest Received Sona Global Ltd. Daawat Foods Ltd. L T International Ltd. Nature Bio Foods Ltd.

Purchase of goods, services & facilities Daawat Foods Ltd. L T International Ltd. Raghunath Agro Industries Kusha Inc., USA Staple Distribution Co. Ltd. Nature Bio Foods

Debtors, Loans & Advances Sona Global Ltd., Dubai LTO North America Inc., California Daawat Foods Ltd. L T International Ltd. Nature Bio Foods Ltd. Staple Distribution Company Ltd. Nice International FZE, Dubai Raghunath Agro Industries Kusha Inc., USA

Reimbursement of Expenses/ (Incomes) Cordia LT Communications Pvt. Ltd. Nature Bio Foods Ltd. Staple Distribution Company Ltd. Raghunath Agro Industries Kusha Inc. Nice International Fze

9.41 (0.00) 0.00 (133.13) 922.56 (-1793.00) 3.27 (0.00) -875.27 (763.90) -10.18 (10.09) 17.67 (0.00) 113.06 (0.00) 28.59 (0.00)

15.21 (17.05) 4.61 (0.00) 8.85 (0.00) 0.04 (0.00) 279.17 (0.00) 24.20 (0.00)

Dividend Received Daawat Foods Ltd.

168.75 (337.50)

Miscellaneous Incomes Nature Bio Foods Ltd.

0.19 (0.00)

ANNUAL REPORT
53

5484.35 (7984.77) 0.00 (683.51) 176.59 (450.25) 1.09 (3.66) 0.00 (99.03) 157.16 (101.96)

Staple Distribution Co. Ltd.

16.92 (16.22) 37.62 (120.00) 0.39 (14.07) 45.39 (77.63) 33.42 (0.00)

Rent Paid Dawat Foods Ltd.

43.02 (55.67)

Rent Received Staple Distribution Co. Ltd.

0.00 (0.05)

96) 15.706.498.26) 281.) 1.72) 968.022.87% (91.181) 13758.392) 35.79 (2129. Percentage IV.360 (25.065.96) 396. This being the technical matter.26) 9.00 (46.45 (4.74 (20.45 (31813.374.42 (3875.86 (36.34) 69071. I.57) Paddy (Raw Material) Rice (Finished Good) Rice Bran (By Product) Paddy Husk (By Product) III.678.00) 50.32 (123.317.641.048) 37287.61.22 (396.31%) 12.879.02 (69.26 (37.99) 6.813.954 (35. VALUE OF IMPORTS ON CIF BASIS .51) 2476.598) 1.264 (1.00 MT PER HOUR (4.19) NIL (NIL) 91.118.38 (75.12%) 0.656) 37302.52%) NIL (NIL) V.21) Nil (Nil) 38884.94 (32.861 (1.724.482.67.45) Closing Stock (Qty in MT. Segment Reporting Information about Secondary Business Segments (Rs.61.36) Sales/ Consp.26) 87.439.443) 1.86 (36.110) 40.0 MT PER HOUR (33.886.509.878) 15. 15. in Lacs) (Rs.0 MT PER HOUR) 5.98 (660.492. 2439.FOB Value of Exports Rice Corn Packing Materials 29959.Capital Goods EXPENSES IN FOREIGN EXCHANGE .975.33%) NIL (NIL) VI.53 (11.26) 1306.26 (37.99) 39.70) (Rs.72% (90.34) Nil (Nil) 30186.76 (11.) 95.60) 67230.72) Purchases/ Production (Qty in MT.69%) 532.374. (Qty in MT.617.92 (14. the auditors have relied upon.529.36) NIL (NIL) 1.549 (86.32 (808.05) 744.81) Sales Value (Rs. QUANTITATIVE DETAILS Items Opening Stock (Qty in MT) 86.03%) 33765.5 MT PER HOUR) The installed capacity given above is based on the information provided by the management.18) 15.879 (36. in Lacs) Value Paddy Indigenous Imported Packing Material Indigenous Imported Bardana Indigenous Imported Consumables & Spares Parts Indigenous Imported 284. II. in Lacs) 43.41.879.245.40) 0.52.065.Others EARNINGS IN FOREIGN EXCHANGE .439.21) 30186.58.422 (1.823.19) Outside India Total *The Assets used for earning revenue from geographical locations above are not maintained separately as the same is impractical and not feasible. Information pursuant to provisions of paragraph 3 & 4 of part II of Schedule VI of the Companies Act.590 (1.61) NIL (NIL) 13.724. in Lacs) India REVENUE: External Inter segment Total Carrying amount of Segment Assets* Addition to fixed assets 38884.20 (69.Spare Parts & Consumables .48 (431.) 1.Interest & Other Charges to Banks .943 (32.98 (1160.761 (31. MATERIALS CONSUMED .81) 39. Trf.45% (2.14.37.55) 78.789 (0.63 (337.64% (6. 1956. To Prod.349 (32.76 (11.987) 13742.28% (9.42.Trading Items Packing Materials .319 (11.659.04% (0.99 (34194.Legal Fees .892.20 (69.110 (66.55) Nil (Nil) 69071.955) 31.94 (32. CAPACITY – PADDY MILLING (INSTALLED) OWNED ON LEASE 33.

enters into foreign currency forward contracts and currency option contracts to manage its exposure in foreign exchange rates and interest costs. 10 each 10.05. For and on behalf of the Board For T U & Co. Derivative Financial Instruments The Company. Company proposes to account for this liability on occurrence of triggering events. The counter party is generally a bank.For Diluted EPS iii) Earning per Share after Extraordinary Items . As per the exit rights agreement between company. 19. 48. Daawat Foods Limited. in Lacs) Gain / (-Loss) (-48.81) 23.Accounts & Taxation ANNUAL REPORT 55 . India Agri. Previous year figures have been regrouped. 110. S. The Company has following outstanding derivative instruments as on March 31. These contracts are generally for a period between one day and eight years.81) 10. Earning Per Share i) Net Profit /Loss (-) after Extra Ordinary Items & Provision for Taxes (Used as numerator for calculating E.2010 PLACE : Gurgaon MONIKA CHAWLA JAGGIA Company Secretary SURINDER ARORA Joint Managing Director SOM CHOPRA Vice President.42 Lacs ( Previous Year .P .Diluted EPS Equity Share of face value of Rs. -2912. No.341 equity share of rupees ten each.929) 23.00.Rs.11 Lacs) is recognized under Exchange Fluctuation in the Profit & Loss Account.P .Basic EPS .28) (-110.42 (2912. contingent upon trigger events. For the purpose of the agreement put option price shall mean an amount which gives investors an IRR of fifteen percent per annum on the investment or the fair market value whichever is higher. of Equity Shares outstanding (Used as denominator for calculating E. recast and rearranged wherever necessary.S.16.49 (4.55.business Fund Limited and Real Trust (the last two parties termed as investors in the agreement). which has been designated 18.050/-.Rs.S. 1069.) . 17. of Contracts 9 (6) Notional Amount 2138. investors shall have the right but not the obligation to require the company to acquire all( but not less than all) of the subscription shares held by investors at the put option price on spot delivery basis.835 (22. Chartered Accountants ASHWANI ARORA Joint Managing Director By TILAK CHANDNA (PARTNER) M. (i) The following are outstanding Foreign Exchange Forward Contracts.11) Loss of Rs. in Lacs) 1069. (ii) The following are outstanding Currency Option Contracts.81 (3140.49 (4. Investors are holding 56.777. in accordance with its risk / interest management policies and procedures. Figures are rounded off nearest to the Rupees in lacs. which have been designated as cash flow Hedges: (Rs.38) No.35Lacs) as cash flow Hedges: Foreign Currency U.30. of Contracts 3 (5) Gain / (-Loss) Profit of Rs.For Basic EPS . 2010.28 Lacs (Previous year . : 082382 DATED : 26. fully paid up of Daawat foods Limited at an investment price of rupees 23. 20.38 Lacs) is recognized in the Profit & Loss Account under “Mark to Market Adjustment on outstanding Derivatives Transactions”.777.269. Dollar No.835 (22.97 Lacs (1070.) ii) Weighted overage No.56) (Rs.929) 2494.269.

90) 275.09) 55.683.26) (1.92 558.74 2.82) 3.683. 2010 March 31.58) (415.536.124.063.271.61) 1.173.93 5. in Lacs) PARTICULARS CASH FLOWS FROM OPERATING ACTIVITIES Profit before Tax Adjustments to reconcile profit before tax to cash provided by operating activities (Profit)/ loss on sale of fixed assets Depreciation and amortiazation Interest and Dividend income Income from Investment (Profit)/ loss on sale of investment Provisions for doubtful debts/ recoveries Provision for Expenses Interest Paid Provision for Loss/Damages Changes in current assets and liabilities Sundry Debtors Inventory Loans and Advances Other Current Assets Trade Payable Preliminary expenses NET CASH GENERATED BY OPERATING ACTIVITES CASH FLOW FROM FINANCING ACTIVITIES Dividends paid during the year.87 (52.226.53) 1.54 (5.76) (8.495.495.338.16) (459.994.41 (2.96 4.000.69) (8.19) 3.44 (390.173.38 March 31.83 948.589.302.61) (274.28 549.94 1.34 (4.21 (0.68) (486.96 (209.64 3.261.422.40) 1.CASH FLOW STATEMENT FOR THE PERIOD ENDED MARCH 31.83 4.94) 3.70) 2.45 138.457.44) (808.19) (8.912. including Dividend Tax Proceeds from issuance of Share Capital Proceeds from borrowing secured Proceeds from borrowing unsecured Interest Paid NET CASH USED IN FINANCING ACTIVITIES (222.78 1.278.92 (0.168. 2009 .82 3. 2010 (Rs.74) (1.

72 470.64 (248.16 459.71) 0. No. 2009 This is the Cash Flow referred to in our report of even date For T U & Co.47 1.73) 137.950.72 March 31.30) 58.08 509.05.691.69) 70.334.68) 1. : 082382 DATED : 26.86 529.96 346.77 529. 2010 March 31.05 346. Chartered Accountants ASHWANI ARORA Joint Managing Director By TILAK CHANDNA (PARTNER) M.145.160.021.61 274.19 8.70 470.90 (2.76 275.77 124.09 (3.(Rs.46 0. in Lacs) PARTICULARS CASH FLOWS FROM INVESTING ACTIVITIES Purchases of Fixed Assets and changes in Capital Work-in-progress Proceeds from Disposals of Fixed Assets Investment Deferred Revenue Expenditure Interest and dividend Income Income from investment Profit from Sale of Investment NET CASH USED IN INVESTING ACTIVITIES Effect of exchange Differences on translation of foreign currency cash and cash equivalents Excess provision for earlier years Net(decrease)/increase in cash equivalents during the year CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD Cash & Bank Balance Less: Deposits/Margin with Banks CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (3.Accounts & Taxation ANNUAL REPORT 57 .33 630.47 (3.2010 PLACE : Gurgaon MONIKA CHAWLA JAGGIA Company Secretary SURINDER ARORA Joint Managing Director SOM CHOPRA Vice President.

Thousand) PUBLIC ISSUE BONUS ISSUE NIL NIL RIGHT ISSUE PRIVATE PLACEMENT NIL 38485 (III) POSTION OF MOBILISATION AND DEPLOYEMENT OF FUNDS (Amt. BALANCE SHEET DATE 41790 31.600 5.169.538 TOTAL ASSETS 7. PRODUCT DESCRIPTION 100610 RICE For and on behalf of the Board ASHWANI ARORA Joint Managing Director MONIKA CHAWLA JAGGIA Company Secretary SURINDER ARORA Joint Managing Director SOM CHOPRA Vice President.Accounts & Taxation . in Rs.807 Nil 261.2010 STATE CODE 55 (II) CAPITAL RAISED DURING THE YEAR (Amt.824.) 7.194 993.809. in Rs.03.722. EXPENDITURE DEFFERRED TAX ASSETS 393.197. Thousand) TOTAL LIABILITIES SOURCES OF FUNDS PAID UP CAPITAL SECURED LOANS DEFERRED TAX LIABILITY APPLICATION OF FUNDS NET FIXED ASSETS NET CURRENT ASSETS ACCUMULATED LOSSES 1.538 (IV) PERFORMANCE OF COMPANY (Amt.451 7.686 330.497 15% (V) GENERIC NAME OF THREE PRINCIPAL PRODUCT SERVICES OF COMPANY (As per Monetory terms) ITEM CODE NO.304 Nil INVESTMENTS MISC.196 38.49 TOTAL EXPENDITURE PROFIT/ LOSS AFTER TAX DIVIDEND RATE 6.788 RESERVES & SURPLUS UNSECURED LOANS 1.102 17.288 10.184 4.139.824. Thousand) TURNOVER (GROSS REVENUE) PROFIT/ LOSS (BEFORE TAX) EARNING PER SHARE (in Rs.398 249.BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE (I) REGISTRATION DETAILS REGISTRATION NO. in Rs.576.

We did not audit the financial statements of the subsidiaries. Our responsibility is to express an opinion on these financial statements based on our audit. 2010. An audit also includes assessing the accounting principles used and significant estimates made by the management. of the state of affairs of LT Group as at March 31. of the profit for the year ended on that date. ANNUAL REPORT 59 . total revenue of Rs.05. of the cash flow for the year ended on that date.AUDITORS’ REPORT Auditors’ Report to the Board of Directors of the Company on the Consolidated Financial Statements To The Board of Directors of LT Foods Limited 1. 3. and also the related consolidated Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed hereto. 15 regarding different accounting policies followed by the subsidiaries. as at 31st March. An audit also includes examining. 2010.643.52 lacs as on 31st March.. 51.50 lacs for the year then ended. evidence supporting the amounts and disclosures in the financial statements. give a true and fair view in conformity with the accounting principles generally accepted in India: a) b) c) In the case the consolidated balance sheet. total expenditure (including taxes) of Rs. For T U & Co.72. whose financial statements together reflect total assets of Rs. Consolidated Financial Statements issued by the Institute of Chartered Accountants of India. and our opinion is based solely on the reports of the other auditors. Based on our audit and consideration of the reports of other auditors on separate financial statements and on the other information of the subsidiaries. and to the best of our information and explanations given to us.797. We report that the consolidated financial statements have been prepared by the company’s management in accordance with the requirements of Accounting Standard (AS) 21. In the case the consolidated cash flow statement. We have audited the attached Consolidated Balance Sheet of M/s LT Foods Limited (“the company”) and its subsidiaries (collectively called “LT Group”). We believe that our audit provides a reasonable basis for our opinion.43 lacs. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. as well as evaluating the overall financial statement presentation.73. we are of the opinion that the attached consolidated financial statements read with notes to accounts in schedule 18 and subject to note no. 5. 004555N Date: 26. We conducted our audit in accordance with the auditing standards generally accepted in India. on a test basis.082382 Firm Regn No.2010 In the case the consolidated profit and loss account. 2.2010 Place : Gurgaon 4.526. Chartered Accountants Tilak Chandna Partner M.No. The financial statements are the responsibility of the company’s management and have been prepared by the management on the basis of separate financial statements and other financial information regarding components. These financial statements and other financial information have been audited by the other auditors whose reports have been furnished to us.

695.84 21.257.36 5.59 1 2 3 72.82 16.34 82.Accounts & Taxation .20 10.556.575.534.201.66 255.143.996.672.798.31 1.30 14.61 9.57 417. No.28 6.679.611.05 68.637.11 1. in Lacs) PARTICULARS SOURCES OF FUNDS SHAREHOLDERS' FUNDS Share capital Reserves and surplus LOAN FUNDS Secured loans Unsecured loans MINORITY INTEREST DEFERRED TAX LIABILITY APPLICATION OF FUNDS FIXED ASSETS Gross block Less: Accumulated depreciation Capital work-in-progress INVESTMENTS CURRENT ASSETS.800.97 20.127.471.51 2.2010 PLACE : Gurgaon MONIKA CHAWLA JAGGIA Company Secretary SURINDER ARORA Joint Managing Director SOM CHOPRA Vice President.67 273.99 5.97 SCHEDULE March 31.547.099.490.900.450.334.44 84.69 16.56 904.092.11 382.09 365.775.627.31 10.637.05 33.42 9.226.564.785.626.51 8 7 5.14 92.03 1. Chartered Accountants ASHWANI ARORA Joint Managing Director By TILAK CHANDNA (PARTNER) M.68 22.37 108.02 248.00 63.57 9.77 3.74 2.44 90.03 4.62 4 31. : 082382 DATED : 26.29 860.13 Significant Accounting policies Notes to accounts The schedules referred to above form an integral part of consolidated balance sheet 17 18 90. 2009 For and on behalf of the Board This is the Consolidated Balance sheet referred to in our report of even date For T U & Co.95 5 6 68.42 27.814.99 15.390.851. LOANS & ADVANCES Inventories Sundry debtors Cash and bank balances Other current assets Loans and advances LESS: CURRENT LIABILITIES & PROVISIONS Current liabilities Provisions NET CURRENT ASSETS Miscellaneous Expenditure (to the extent not written off) 108.13 62.53 2. 2010 March 31.900.CONSOLIDATED BALANCE SHEET (Rs.535.75 183.242.662.490.05.

86 9.43 3.56 22.03 (1.777.59 275.854. 2010 March 31.Dividend on Equity Shares .15 106.53 28.16 2.61 47.356.929 462.11 12 13 14 15 16 4 57.41 113.091.81 13.59 305.05 NET PROFIT AFTER TAX FOR THE YEAR Balance brought down from previous year Less: Share of minority AMOUNT AVAILABLE FOR APPROPRIATION a) b) General Reserve Dividend .138.Accounts & Taxation ANNUAL REPORT 61 .86 850.427. : 082382 DATED : 26.33 11.177.45 2.269.38 35.692.79 16.269.28 23.51 49.835.06) 4.65 3.31 107. Chartered Accountants ASHWANI ARORA Joint Managing Director By TILAK CHANDNA (PARTNER) M.288.42 628.99 (123.990.12 3.93 (261.73 100.43 632.536.21 222.63 7.10 708.35 82. in Lacs) PARTICULARS INCOMES Sales Other Incomes Accretion/Decretion to Stock EXPENDITURES Material Consumed Purchases Manufacturing & trading expenses Administrative and selling expenses Finance cost Depreciation PROFIT BEFORE EXTRAORDINARY INCOME/ ADJUSTMENT/ EXPENSES Mark To market adjustment on outstanding derivative transactions Prior period items PROFIT BEFORE TAXES Less : Provisions for tax a) b) c) d) e) f) Income tax-current year Fringe benefit tax-current year Deferred tax liability/ (asset) Income tax/FBT earlier years MAT credit receivables current year MAT credit receivables earlier year 1.430.89 1.70 57.952.05 3.489.912.42) (7.25 SCHEDULE March 31.05 89.26) 50.37 8.43 17.58) 862.55 1. 2009 Significant Accounting policies Notes to accounts The schedules referred to above form an integral part of consolidated profit & loss account For and on behalf of the Board This is the consolidated profit and loss referred to in our report of even date For T U & Co.234.34) (210.315.2010 PLACE : Gurgaon MONIKA CHAWLA JAGGIA Company Secretary SURINDER ARORA Joint Managing Director SOM CHOPRA Vice President.648.CONSOLIDATED PROFIT & LOSS ACCOUNT (Rs.101.069.269.68 2.830.736.00 3.635.08 479. No.020.44 21.13 116.93 54.30 13.690.80 6.835 13.42 9 10 11 105.46 11.Dividend Distribution Tax Current Year BALANCE CARRIED TO BALANCE SHEET EARNINGS PER SHARE Basic & Diluted Earnings per Share Weighted Average of Share 17 18 11.53 5.097.616.596.933.47 76.374.86 2.116.051.359.35 11.05.

000 (Previous year 4.000) equity shares of Rs.490.500.From Banks .522.64 242.11 662.41 108.SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET (Rs.04 13.41 520.74 24.84 2.61 B) UNSECURED LOANS a) Short Term Loan .600.10 each fully paid up issued for consideration other than cash.575.10 872.00 March 31.From Banks Rupee term loans .225.41 3.390.10 each as fully paid up by way of bonus shares by capitalization of profits.505) equity shares issued of Rs.From Others .49 6.From Directors 9.87 305.00 2.505 (Previous Year 8.450.99 3.511.84 2.21 656.61 108.10 each ISSUED.715. SUBSCRIBED AND PAID UP CAPITAL 26.70 10.53 357.98 11.67 74.226.490.388.414 (previous year 22.83 40.93 24.84 72.269.61 SCHEDULE : 3 LOAN FUNDS A) SECURED LOANS a) b) c) Rupee working capital loans . 2009 SCHEDULE : 2 RESERVES & SURPLUS Capital Reserve/Subsidy Share Premium As per last account Less: Share of Minority Addition during the year Less: Expenses on issue of shares General Reserves As per last account Less: Share of minority Addition during the year Surplus as per Profit and loss account Foreign exchange fluctuation reserve 662.54 15.929) equity shares of Rs. 4.000.98 66.138. 2010 March 31.10 each fully paid up TOTAL Note: The above includes: 1) 2) 8.701.000.06 21.From Banks .374.26 22.876.000 (Previous year 25.From Banks Foreign currency working capital loans .62 71.374.919.From Others 14.94 9.077.226.11 10.97 3.61 3.54 9.31 35.43 146.611.388.98 .04 275.728.000.118. in Lacs) PARTICULARS SCHEDULE : 1 SHARE CAPITAL AUTHORISED 30.99 2.05 12.68 27.93 3.611.388.269.600.287. 2.000) Equity Shares of Rs.33 62.996.

315.SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET (Rs.92 8.22 90.97 2.66 7.851.839.76 35.509.510.65 BUILDING * 3.2010 Upto 31.60 4.22 8.990.2009 During the Year Written Back/ Adjustment Upto 31.48 PREVIOUS YEAR 18.301.87 145.35 269.62 INTANGIBLE ASSETS 150.95 7.2009 Addition During the Year A.34 23.00 GOODWILL 7.00 98.02 32.61 486.98 280.034.68 7.18 PLANT & MACHINERY 12.68 6.00 15.496.851.51 109.97 150.36 1.75 98.03.81 7.58 20.534.94 lacs) constructed on lease hold land.00 135.50 VEHICLE 961.76 616.2010 As at 31.358.066.616.35 OFFICE EQUIPMENT 509.94 lacs (Pr.879.07 239.42 6.64 25.25 4.00 466.28 4.723.374.46 2.31 165.03.192.70 18.775.51 6.68 TOTAL 27.27 9. 280.20 13.76 9.509.92 22.127.42 474.932.167.07 132.874.817.627.341.20 14.852.443.41 7. The Original Cost Pertaining to Fixed Assets owned by Partnership Firm namely Raghunath Agro Industries is not available and therefore the opening WDV as on 01-04-2009 has been taken in Gross Value.84 14.76 134.68 286.565.627.00 7.659.52 19.19 83.2010 NET BLOCK As at 31.03.18 624.86 21.10 315.00 862.735.87 2.04.66 300.523.45 318.92 7. 63 ANNUAL REPORT .63 111.46 1.38 207.00 7.74 6.58 7.23 14.09 28.196.862.196.92 225.475.809.82 106.421. Yr.662.73 LAND 2.338. 51.28 FURNITURE & FIXTURES 194. in Lacs) SCHEDULE : 4 FIXED ASSETS AS AT 31ST MARCH 2010 DEPRECIATION As on 31.48 B.754.74 26.31 13.19 3.68 151.03.606.74 20.82 2.11 2.33 619.49 3.41 BRAND EQUITY 300.93 62.39 15.57 587.40 442.03.23 * Includes building worth Rs.34 170.315. 51.11 3.775.73 31.809.28 4.043. TANGIBLE ASSETS 83.22 27.99 1.70 1.58 270.86 1.95 1.40 62.042.2009 GROSS BLOCK Written Back/ Adjustment Particulars Cost as at 01.10 330.251.932.

00 1.22 382.875.05 172.05 190. Year 500) Equity shares of India International Marketing Ltd.23 1.619 (Pr.10 each OTHER INVESTMENT . of Rs.T.61 75. Year 2.000. Year 50.25 4. Year 10. Plan 894.855) Units of Templeton India Equity Income Fund 12.000 (Pr.42 0. Year 1.59 100.300) Equity Shares of Andhra Bank of Rs.875.000) Units of Principal PNB Long Term Equity Fund 48.023.22 365.50 0.23 4.023.000. (e) Keyman Insurance Policies (f) Investment in immovable properties 0.40 0.47 75.10 each fully paid up (b) Investment in Mutual Funds (Quoted) 50.619) Units of HDFC MIP Long Term Dividend Fund 2.50 0.00 5.636 (Pr.055) Units of Reliance Vision Fund (c) Investment in Mutual Funds (Unquoted) 1.Y.00 1. Infotech (P) Ltd.03 0. in Lacs) PARTICULARS SCHEDULE : 5 INVESTMENTS TRADE INVESTMENTS .LONG TERM (a) Investment in Associates 42.300 (Pr. Year 48.000 (Pr.999.999. Year 12.636) Units of Sundram BNP Paribas Select Midcap Div.855 (Pr.500 (P 42.500) Equity shares of . 2009 . Ltd.30 0.LONG TERM (a) Fully Paid-up Equity Shares (Quoted) Nil (Pr.055 (Pr.10 each fully paid up 2.000) Units of CIG Realty Fund (d) Fully Paid-up Equity Shares (Unquoted) 500 (Pr. Of Rs.00 100. Year 894.25 March 31. L.00 5. 2010 March 31.30 0.40 5. Year 2.00 5.326) Equity Shares of Emmsons Intl.SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET (Rs.

209.12 63.55 68.63 .680.14 92.91 744.232.257.624.65 860.77 3.99 248.30 March 31.201.800.998.41 2.08 1.360.21 19.SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET (Rs.10 15.837.18 16.695.65 4.62 591.03 CASH & BANK BALANCE a) Cash in hand i) In Indian currency ii) In Foreign currency b) Balance with scheduled banks i) Current account ii) Deposits/ Margin money 767.143.207.70 1.56 904.16 212.79 320.65 14.00 150.04 232.56 545.99 B.07 3.44 28.05 1.143.289.70 5.77 277.44 84.29 709.547.64 34.82 SUNDRY DEBTORS (Unsecured considered good unless otherwise stated) Debts outstanding for a period exceeding six months Considered good Considered doubtful Others debts Considered good Considered doubtful Less : Provision for doubtful debts 15. 2009 ANNUAL REPORT 65 Advances Recoverable in Cash or in kind for value to be received 2.566.02 OTHER CURRENT ASSETS 248. 2010 March 31. LOANS AND ADVANCES (Unsecured considered Good unless otherwise stated) Security deposits Income Tax Minimum alternative tax credit receivable Others* 429.03 904. LOANS & ADVANCES A.93 4.03 48.413.29 14.564.26 53.18 2.626. in Lacs) PARTICULARS SCHEDULE : 6 CURRENT ASSETS.32 1.729.587.00 16. CURRENT ASSETS INVENTORIES As verified. taken and valued by Management Raw Material Finished Goods / Traded Goods Consumable Stores & Spares 35.23 32.334.68 11.74 177.

99 65.42 254.398.92 57.27 1.39 8.236.869.904.86 222. 2009 .85 7.352.85 415.17 47.36 382.25 March 31.43 10.21 417.559.300. tax on dividend) MTM Adjustment on outstanding derivatives Others TOTAL SCHEDULE : 8 MISCELLANEOUS EXPENDITURE (To the extent not written off or adjusted) Deferred Revenue Expenditure Opening balance Less: Amount amortised to date Preliminary Expenses Opening balance Add: Additions Less: Written off during the year 2.535.49 2.59 11.097.05 367.59 708.11 93.551.207.21 0.17 105.75) 64.42 814.70 1.079.159.08 59.59 9.67 1.523.505.50 4.12 94.59 743.94 3.556.77 444.65 40.67 42.earlier years Fringe benefit tax Dividend (Incl.378.57 9. in Lacs) PARTICULARS SCHEDULE : 7 CURRENT LIABILITIES & PROVISIONS Acceptances * Sundry Creditors Small Scale Industries Others ** Security deposits from suppliers/ distributor Other liabilities Unclaimed dividend Forward payable (net) PROVISIONS Employee benefits Income tax-current year Income tax.56 3.55 5.92 41. 2010 March 31.471.16 37.798.60 (2.33 4.93 1.20 11.83 March 31.159.60 2.70 1.69 16.27 1.SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET (Rs.40 62.291.04 8.95 1.288.796.28 101.34 79.99 670.03 795.79 5.03 255.59 905.383.28 841.25 106.317.97 114.88 108.274.70 3. 2010 March 31.672. 2009 SCHEDULES FORMING PART OF THE CONSOLIDATED PROFIT & LOSS ACCOUNT PARTICULARS SCHEDULE : 9 SALES EXPORT Rice Other Items Add: Export incentives Add (less): Exchange fluctuation DOMESTIC Rice Other Items 38.118.22 805.20 51.74 60.17 1.092.38 2.

01 3.37 21.53 20.037.690.31 681.13 22.536.67 4.43 6.55 19.83 36.43 ANNUAL REPORT 67 SCHEDULE : 13 PURCHASES Rice Other Items 25.00 15.356.00 344.23 37.31 2.082.86 SCHEDULE : 11 ACCRETION/(DECRETION) TO STOCK Opening Stock Closing Stock Accretion/(Decretion) to stock SCHEDULE : 12 MATERIAL CONSUMED Opening Stock Bardana Packing material Paddy Purchases Paddy Bardana Packing material Less: Closing Stock Bardana Packing material Paddy 22.443.82 496.03 3.69 34.251.234. in Lacs) PARTICULARS SCHEDULE : 10 OTHER INCOME Profit from Sale of Shares Dividend from Non Trade Investments Profit from Sales of Fixed Assets Interest on Fixed Deposits Service Charges received Other Receipts Profit on Exchange Fluctuation March 31.70 1.79 63.93 424.22 57.32 3.61 52.16 202.37 27.68 28.116.078.52 417.35 448.72 8.86 49. 2010 March 31.452.09 0.92 232.337.89 879.620.86 0.63 33.78 567.88 681.68 .39 324.489.49 34.064.03 60.680.98 1.86 53.87 27.60 22.54 432.585.289.SCHEDULES FORMING PART OF THE CONSOLIDATED PROFIT & LOSS ACCOUNT (Rs.359.506.53 896.62 2.932.44 SCHEDULE : 14 MANUFACTURING & TRADING EXPENSES Ware House/Factory Rent Wages Job Work Factory Insurance Power and Fuel Security Services Research & Development Packing Expenses Repair to Machinery Repair to Building Repair (Others) Other Manufacturing/Direct Expenses Stores and spares consumed 479.01 395.02 848.62 1.281.418.02 173.63 33.14 150.51 38.66 108.26 937.91 32.091.80 35.380.930.90 257.375.96 31.04 9.96 58.25 479.20 28.00 1.43 79.78 101.932.06 59.506.30 86.76 919.25 21.42 51.620.69 34.91 850.037.83 55.54 432.152. 2009 8.

84 3.49 456.57 379. SELLING & OTHER EXPENSES Salaries.93 17.933.55 Bank charges Premium on forward contract Loss on exchange fluctuation 330.15 511.77 3.832.62 651.23 27.13 87.27 5.692. forwarding and freight charges Export duty Market development expenses Business Promotion Expenses Freight outward Other selling expenses Loss on sales of fixed assets Amount/assets written off/ back Provision for dobtful recoveries Deffered revenue expenses w/o Preliminary expenses written off 2.416.67 16.97 275.68 167.38 171.32 0.267.41 588.07 22. in Lacs) PARTICULARS SCHEDULE : 15 ADMINISTRATIVE.53 1.71 645.12 5.72 928.37 36.56 1.83 324.43 6.43 7.95 416.111.658.20 18.01 114.10 589.31 408.00 0. 2010 March 31.08 3.82 Less: Capitalised 48.82 27.18 161.50 201.500.04 251.83 128.63 March 31.56 997.186.65 126.89 3.38 0.SCHEDULES FORMING PART OF THE CONSOLIDATED PROFIT & LOSS ACCOUNT (Rs.89 .10 138.50 17.04 2.05 104.318.743.616.52 995.79 129.83 98.89 65.430.66 6.57 111.85 4.52 566.44 648.94 571.45 77.43 567.69 56. wages and bonus Contribution to provident and other fund Staff welfare expenses Advertisement Insurance Legal & professional Charges Rates & taxes Donation and charity Directors’ remuneration Directors’ sitting fees Directors’ perquisites Contribution to provident fund Payment to auditor Fines & penalties Rent Vehicle running and maintenance Other administrative expenses Travelling and conveyance expenses (including Directors' Foreign Travelling) Rebate and discount Commission to selling agents Clearing.07 1.65 62.60 2.15 111.768.83 430.242.49 75.40 19.539.72 6.06 818.401.75 5. 2009 SCHEDULE : 16 FINANCE COST Interest on working capital loans Interest on fixed loans 4.16 119.91 2.37 41.28 23.86 5.21 71.587.

00% 100. make good the losses. income taxes. b) The financial statements of the Company and the subsidiary companies have been consolidated on a line by line basis by adding together the book value of like item of f) assets. These accounting policies have been consistently applied.00% 89.03. The consolidated financial statements relate to L T Foods Limited and its subsidiary companies. If the subsidiary subsequently reports profits.2010 31.2010 31. e) Minority interest in the net assets of consolidated subsidiaries consists of the amount of equity attributable to the minority share holders at the dates on which investments are made by the Company in the subsidiaries companies and further movements in their share in the equity. except where newly issued accounting standard is initially adopted by the company. Use of Estimates The preparation of the consolidated financial statements in conformity with Accounting Standards & GAAP requires LT Foods’ management (Management) to make estimates and assumptions that affect the reported balances of assets 4. Ltd. Principles of Consolidation.00% 100.2009.66% Year ending of Subsidiary Considered for consolidation 31. 1956. the amount of losses applicable to the minority on consolidation exceeds the minority interest in the equity of the subsidiary. Examples of such estimates include useful life of fixed assets. 2. Staple Distribution Company Ltd. in the same manner as the Company’s separate financial statements except for transactions and events which are disclosed separately. Chandiok & Co. Sona Global Ltd.2010 31.03. provisions for doubtful debts.2010 31.00% 70.00% 100. LT Overseas NA Inc*.2010 31. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountant of India (ICAI) and the provisions of Companies Act. Basis of preparation of Financial Statements The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. Subsidiary (Held Indirectly) Nice International FZE Kusha Corporation* LT Agriservices Pvt. Contingencies are recorded when it is probable that a liability will be incurred.00% 80.00% 71.08.03. ANNUAL REPORT 69 .03. The consolidated financial statements have been prepared on the following basis: a) The Consolidated Financial Statements have been prepared in accordance with Accounting Standard 21 – “Consolidated Financial Statements”. Management evaluates the effect of accounting standard issued on an-on-going basis and ensures they are adopted as mandated by the ICAI.03.2010 31. the excess and any further losses applicable to the minority are adjusted against the majority interest except to the extent that minority has a binding obligation to.03. the consolidated financial statements have been prepared using uniform accounting policies. LT International Ltd. and liabilities and disclosure relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Vishal G. Nature Bio Foods Ltd. intra group transactions and unrealized profits. incomes and expenses and thereafter eliminating intra group balances. and is able to. and the amount can be reasonably estimated.48% 100. subsequent to the dates of investments as stated above. *Reporting date of these companies is year ending 31.03. d) The excess of cost to the Company of its investment in the subsidiary companies is recognized in the consolidated financial statements as goodwill and the excess of Company’s portion of equity of the subsidiary over the cost of the investments therein is treated as capital reserve.03.03.SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AND PROFIT & LOSS ACCOUNT SCHEDULE .03.2010 31.10 70.17 SIGNIFICANT ACCOUNTING POLICIES 1. India India India India Dubai USA Dubai USA India India Walker. Name of Partnership Firm Raghunath Agro Industries India Raman Arora & Co. Revenue Recognition The Company and its subsidiaries generally follow mercantile system of accounting and recognize significant items of income and expenditure on accrual basis. liabilities. write-off of deferred revenue expenditures and intangible assets. If. Expo Services Pvt. Jain & Associates Nager Goel & Chawla UHY Saxena Limited review by The Chugh Firm UHY Saxena Limited review by The Chugh Firm T U & Co. Accounting Standard 23 – “Accounting for Investment in Associates in Consolidated Financial Statements” and Accounting Standard 27 – “Financial Reporting of Interest in Joint Ventures” issued by the Institute of Chartered Accountants of India. Jain & Associates 3. for like transactions and events in similar circumstances and are presented to the extent possible.2010 31.03.2010 31. all such profits are allocated to the majority interest until the minority’s share of losses previously absorbed by the majority has been recovered. c) As far as possible.98% 100. The following subsidiary companies and / or partnership concerns are considered in the consolidated financial statements: Country of Incorporation Percentage of Voting Power as on 31.48% 80. Ltd. Actual results could differ from those estimates.03. Nager Goel & Chawla Vishal G.2010 31.2010 Audited By Name of Subsidiary Subsidiary (Held Directly) Daawat Foods Ltd.

Raghunath Agro Industries. 9. is recognized as a liability in the balance sheet and expensed in the profit and loss account unless another accounting standard requires or permits the inclusion of the benefits in the cost of an asset. the subsidiary Company namely Daawat Foods Limited is amortizing such intangible assets over a period of 5 years only. Accordingly. In the view of the Company. after deducting amount already paid. is taken part of raw materials and measured accordingly. Intangible Asset like right/license to use software acquired.5. the partnership firm. 1956. b. (b) Depreciation on fixed assets is provided on written down value method at the rates and in the manner prescribed in schedule XIV of the Companies Act. By Products are valued at net realizable value. provides the depreciation on their fixed assets on written down value method.e. 10. Investment Trade Investments are the investment made to enhance the Company business interest. LT Overseas. Dividends. North America and Kusha Inc. Retirement benefits to employee Short Term Benefits The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered. LT Overseas. follow weighted average method for the valuation of their inventories. Cost of raw materials. having indefinite life. and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The amount for defined contribution plan is recognizes as an expense in the profit and loss account. provides the depreciation on straight line method and amortize its fixed assets over a period of 4 years. Cost of overseas investments comprises the Indian Rupee Value of the consideration paid for the investment. (c) Intangible Assets i. the amounts appearing in foreign currencies in the financial statements of the foreign subsidiaries are translated at the following rates of exchange: a. The number of shares used in computing diluted earning per share comprises the weighted average shares considered for deriving basic earning per share. 1972. being not material. 8. 7. the provisions for leave encashment have not been made by the group companies except the two companies of the group namely LT Foods Limited and Daawat Foods Limited. other than temporary. financing. trading and other products are determined on FIFO basis. Foreign Currency Transaction Foreign currency transactions (1) transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the date of transaction (2) monetary items denominated in foreign currencies at the year end are reinstated at year end rates (3) non (d) Earning Per Share In determining earning per share. based on management intention at the time of purchase. North America and Kusha Inc. Translation of Foreign Operations For the purpose of Consolidation. Nice International FZE. packing materials. Other intangible assets are amortized over the expected useful life of the asset. in the carrying value of each investment. Trade mark and assets similar in nature. are recorded as income in the Profit & Loss Account. 11. However. Current Investments are carried at the lower of cost and fair value. Fixed Assets and Depreciation (a) Fixed assets are stated at cost less accumulated depreciation/amortization and impairment loss. Company has not undertaken the exercise of measuring and recognizing gratuity liability under defined benefit plan in accordance with the Payment of Gratuity Act. The number of shares used in computing earning per share is the weighted average number of shares outstanding during the period. Cost of accumulating compensated absences that has accumulated on the balance sheet date is measured and recognized as short term benefits. 1961 iv. at the rates given in the Income Tax Act. Cash Flow Statement Cash flow are reported using the indirect method. However. Goodwill. All costs including financing cost till the respective asset is put to use and attributable to the fixed assets are capitalized. iii. and investing activities of the company are segregated. the company considers the net profit after tax. except the following differences i. 6. jute bags. 5. if any. monetary foreign currency items are carried at cost (4) any income or expense on account of exchange difference either on settlement or translation is recognized in the profit and loss account. Borrowing cost is included in the cost of inventory as inventory generally held by the company is an asset that necessarily takes a substantial period of time to get ready. provide the depreciation on Straight Line Method and amortize the assets over the useful life of respective assets as per the estimates of the management of such companies. The amounts paid under Keyman Insurance Policies are considered as Investment. are amortized over a period of 20 years. Average rates for Incomes and Expenditures Year end rates for Assets and Liabilities ii. acquired from outside. the provisions for gratuity have not been made by the group companies except the two companies of the group namely LT Foods Limited and Daawat Foods Limited.000. are amortized over a period of 10 years. cost of conversion and other costs incurred in bringing them to their respective present location and condition. Investments are either classified as Current or Long Term. unless another accounting standard requires or permits the inclusion of the benefits in the cost of an asset. Cost of finished goods is determined on absorption costing method. stores and spares. Post Employment Benefits (i) GRATUITY: Company is recognizing liability of gratuity payable to its employees to the extent of contribution is determined to be paid by contribution plan undertaken by the Company with Life Insurance Corporation of India. Brand Equity. The cash flows from regular revenue generating. Material in process. Inventories Items of inventories are measured at lower of cost or net realizable value. the loss or gain is recognized in the profit and loss account. Forward Exchange Contract Forward exchange contracts (1) entered into to hedge an existing asset/liability (i) the premium or discount arising at the inception of such forward contract is amortized as expense or income over the life of the contract (ii) forward exchange contract is recorded as an asset / liability and (2) entered into to hedge a firm commitment or highly probable forecast transaction. Staple Distribution Company Limited is providing depreciation at a rate of 100% per annum in case of items of fixed assets costing less than Rs. However. . However. such contributions to the plan undertaken by the Company will take care of its liability on account of gratuity payable under the payment of Gratuity Act. Long Term Investments are carried at cost and provisions recorded to recognize any decline. Cost of inventories comprises of cost of purchase. thereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

12. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. Other Accounting Policies These are consistent with the generally accepted accounting principles and practices. 45. ANNUAL REPORT 71 4.10 33. in Lacs) 2009-10 2008-09 (a) Claims against the Company not acknowledged as debts which in the opinion of the Management are not tenable/under appeal at various stages: (Figures as per demand notice received by the Company exclusive of interest thereafter)# (i) Income-Tax Demands Assessment Year 1999 – 00** Assessment Year 2000 – 01 * Assessment Year 2000 – 01 (Penalty) Assessment Year 2002 – 03 ** Assessment Year 2002 – 03 (Penalty) Assessment Year 2003 – 04 Assessment Year 2003 – 04 (Penalty) Assessment Year 2004 – 05 (Penalty) Assessment Year 2005 – 06 (Penalty) Assessment Year 2006 – 07 Assessment Year 2006 – 07 (Penalty) (ii) (iii) (iv) (v) (vi) Sales Tax Demand – Gaziabad HRDF Demand of Market Committee.51 135.33 1. A provision is made for income tax annually. which have been adequately disclosed in the accounts. The Company has deposited Rs. Contingent Liabilities: (Rs.70 NIL 41. are recognized as an expense in the period in which they are incurred. after considering tax allowances and exemptions.267.39 44. based on the tax effect of the aggregate amount SCHEDULE-18 NOTES ON ACCOUNTS 1. (iii) being considered.00 9. OTHER LIABILITIES: Company is not measuring and recognizing any other liability. namely the differences that originate in one accounting period and reverse in another.011. Sonepat FCI Demand for Differential Price / Freight / Taxes Labour Related Claims Trademark Related Claims 5.91 91.10 33. ** These are departmental appeals with ITAT and ITAT has redirected the AO to recompute the deduction under section 80IA and 8OHHC.18 81.91 166.00 172.75 339. Borrowing Costs Borrowing Costs attributable to the acquisition. which are not relatable to qualifying assets. based on prevailing enacted or substantially enacted regulations. 14.216.70 0. where taxes are accrued in the same period in which the related revenue and expenses arise.51 135. The tax effect is calculated on the accumulated timing differences at the end of an accounting period.17 11. # Future cash outflows in respect of (a) above can be determined only on receipt of Judgment/ Decisions pending with various Forums/ Authorities. Other Long Term Employee Benefits Company has not determined and recognized liability and expense on account of other long term benefits to employees as in its opinion no reliable estimate of the obligation can be made at present. though.55 5.62 NIL 213.05 .94 1. 16.18 81.66 4. Contingent Liabilities and Contingent Assets All known liabilities are provided for in the accounts except liabilities of a contingent nature. 1952 and rules made there-under. premium paid. based on the tax liability computed.95 41. gains and losses on derivatives are recognized in the Profit & Loss account in accordance with announcement of the Institute of Chartered Accountants of India.66 NIL 44. Income Tax Income taxes are computed using the tax effect accounting method. Provisions. The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified. Accounting for Derivatives Pending compliance with AS 30 “Financial Instruments Recognition and Measurement” issued by the Institute of Chartered Accountants of India.00 9. 13.00 Lacs against this disputed demand.54 5.75 339.27 8. The Company. 15.62 20.55 NIL NIL NIL 11. and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences.82 (b) (c) (d) Guarantees given by Banks on behalf of the company Letter of credits opened with bankers and remaining outstanding Liability against Duty Saved under EPCG Licenses Issued Notes: * The demand is disputed and the matter is subjudice with CIT(A) who has directed the AO to provide Remand Report.(ii) PENSIONS: The pension benefits are recognized in the form of defined contribution plan required to be made by the Company in accordance with and under The Employees Provident Fund and Miscellaneous Provisions Act.81 1.95 397. may have such liability on account of long term compensated absences and long term disability benefits. construction or production of qualifying assets are capitalized as part of the cost of that asset. Borrowing costs.

II. or in any other capacity.K.20) 111.Salary . the details of which are as under:Deferred Tax Liabilities Depreciation Keyman Insurance Policy Deferred Revenue Expenditure Total Deferred Tax Liability Deferred Tax Assets Carry Forward Losses Depreciation Preliminary Expenses Total Deferred Tax Assets Net Deferred Tax Liability / (-Assets) Net Deferred Tax Liability / (-Assets) charged / (-credited) to P & L Account 121.2.09 (31.00 (0.74 (NIL) 60. a. Surinder Arora (Joint Managing Director) Mr.35) 0. in Lacs) Capital Contract remaining to be executed 1.59) 8.Perquisites* Directors Remuneration .32) 60. REMUNERATION PAID OR PAYABLE TO DIRECTORS (Rs.05) 17. 7. Related Parties and their Relationship I.46 (56. in Lacs) As auditor As advisor.38 (183.21 (239. Ashok Arora (President – Punjab Operations) Mr.38 (20. Related Party Disclosure A.04.Arora Mother Parvesh Rani Wife Ranju Arora Brother Ashok Arora Ashwani Arora Surinder Arora Ashok Arora V.Perquisites* Independent Directors Sitting Fees 3.Salary . 4.K.27 27.83 (56.79) 64.93) 269. loans and advances and payables are subject to confirmation. Traveling Expenses include foreign traveling expenses of Rs. Provisions As at 01.98 33.740. Rajinder Wadhawan (Director – Daawat Foods Ltd.55 46.69) 41.16 (0.09 Provision Provision As at made Reversed / 31.30) 0.85 27. There has been no impairment loss during the year. Manoj Satia (Managing Director – Staple Distribution Company Ltd.00 (18. Ashwani Arora (Joint Managing Director) Mr.K.18 3. Some of the receivables.10 during Utilized during the year the year 814. Vijay Kumar Arora (Chairman & Managing Director) Mr.65 0.11). Income Tax (includes FBT) Gratuity 1.26 (135.35) 273.) Mr. Fixed monthly remuneration has been paid to the Managing Director and to the Directors as per term of their appointment.20) (ii) Company law matters (iii) Management services c.113.33) 4.37 (0. the Relatives of Key Management Personnel Key Management Personnel V.26 51. in Lacs) Functional Directors Managing Director’s Remuneration . in any other manner 10.36 (83.Arora Surinder Arora Sister Neelu Grover Son Abhinav Arora Daughter Aditi Arora Ashwani Arora Parvesh Rani Vandana Arora Neelu Grover Ritesh Arora Sanjana Arora Surinder Arora Parvesh Rani Sakshi Arora Neelu Grover Anmol Arora Isha Arora Purva Arora - Ashok Arora Parvesh Rani Anita Arora Neelu Grover Aditya Arora Gursajjan Arora .00 (5.27) NIL (NIL) 9.24 27. in respect of(i) Taxation matters 0.19 2. 1956 need not be set out since no commission has been paid to the Directors.91 (26.52) 37.00 371.52 (NIL) 395. Capital Commitments (Net of Advances) not provided for: (Rs.K.357.03. Tapan Ray (Managing Director – Nature Bio Foods Ltd.02 (NIL) 121.94 (82.Arora Surinder Arora Ashok Arora V. As required by Accounting Standard (AS 28) “Impairment of Assets” issued by the Institute of Chartered Accountants of India.00) 0.Arora Ashwani Arora Ashwani Arora V. The Company has been advised that the computation of net profit for the Directors’ remuneration under section 349 of the Companies Act.10 (2.95 (239. b. Company has carried out the assessment of impairment of assets.37 Leave Encashment Deferred Tax Liability The Company has provided the Deferred tax liability as per AS-22 issued by ICAI.79) *Free Telephone at the residence and car with chauffeur for personal use of which monetary value not ascertained.41 (Previous year: Rs.) Mr. Key Management Personnel Mr. Payments to Statutory Auditors (Rs.182.26 0.44) 89.) 5. 123.35 (NIL) 0. 6.

11) (0.80) NIL (4.25) 0.269. B.31) (-) (-) Total 171. Disclosure of Material Transactions with Related Parties Particulars Remuneration to Key Management Personnel Vijay Kumar Arora Surinder Arora Ashwani Arora Rajinder Wadhawan Tapan Ray Manoj Satia Perquisites to Key Management Personnel Surinder Arora Ashwani Arora Manoj Satia Interest Paid Cordia L T Communications Pvt.08 (114. Ltd. Cordia L T Communications Pvt.04 (1. in Lacs) India REVENUE: External Inter Segment Total Carrying Amount of Segment Assets* Addition to Fixed Assets 42.496.00 (0.90) 2.835 (22.33) 135. of Equity Shares outstanding (Used as denominator for calculating E.00 (0.89) 2.80 (7.00) 63.56) .00 (18.25) (-) (0. manufacturing and sale of rice and therefore segment reporting is not required under AS – 17 issued by the Institute ANNUAL REPORT 73 0.70) (17.08) Nil (Nil) Nil (Nil) Outside India Total 63.08) 0.80 (7.) Weighted overage No.00) 4.05.47 1.00 (9.00) 0. Associates L T Infotech (Pvt.00) (106.S.48 (9. Segment Reporting The company is having only one reportable primary segment i.33) 82.796.75 (14.288.156.683.097.156.89) 8.992.25) 2.For Diluted EPS 23.131.16 (64. Enterprise owned or significantly influenced by group of individuals or their relatives having control or significant influence over the Company Swami Freight Brokers R S Rice & General Mills IV.) .42) 39.269. Transactions with Related Parties (Rs.835 (22.68) (-) (7.03 (NIL) 60.P .83) (1.32 (7.777.14) 7.11 (43.P . Ltd.65 (10.08 (114.05.47 1.00) (Rs.19 (0.300.04) 17.18) 39.05) Key Management Personnel 171.69 (41.11 (44.00 (18.80) (-) (-) Relatives of KMP (-) (-) 52. 12.929) 2.26) 12.16 (64.03) ii) 11.929) 23.80 (15.e.796.15 (3.62 (163.83) (1.315.23) *The Assets used for earning revenue from geographical locations above are not maintained separately as the same is impractical and not feasible.131.944. Ashok Arora Rent Paid Manoj Satia 7.04) 17.87 (149.019.25) Nil (Nil) 42.04 (1.42) 6.00) 12. in Lacs) of Chartered Accountants of India.13 (4.288.89) 7.00 1.50) 8.05) C.For Basic EPS .70) (17.00 (0.73 (24.04 (6. The information about secondary business segment is given below: Information about Secondary Business Segments (Rs.777.300.06.69 (41. Earning Per Share i) Net Profit /Loss (-) after Extra Ordinary Items & Provision for Taxes (Used as numerator for calculating E. in Lacs) Particulars Remuneration Perquisites Dividend Interest Paid Rent Paid Other Expenses Reimbursement of Expenses Enterprises controlled by Company / Joint Ventures (-) (-) (-) (4.17.III.097.06.31) 2.00 (31.S.) Ltd.

Dollar No.2010 PLACE : Gurgaon MONIKA CHAWLA JAGGIA Company Secretary SURINDER ARORA Joint Managing Director SOM CHOPRA Vice President.56) 6. 110. enters into foreign currency forward contracts and currency option contracts to manage its exposure in foreign exchange rates and interest costs. The counter party is generally a bank.iii) Earning per Share after Extraordinary Items . Company proposes to account for this liability on occurrence of triggering events. As per the exit rights agreement between company. Loss of Rs. which have been designated as cash flow Hedges: (Rs. Derivative Financial Instruments The company.38) No.Diluted EPS Equity Share of face value of Rs. 16. -2912.76 (26. contingent upon trigger events.00. 1069. 48. Investors are holding 56.38 Lacs) is recognized in the Profit & Loss Account under “Mark to Market Adjustment on outstanding Derivatives Transactions”.42 Lacs ( Previous Year . which have been designated as cash flow Hedges: Gain / (-Loss) 1069. 13. Previous year figures have been regrouped. fully paid up of Daawat foods Limited at an investment price of rupees 23. These contracts are generally for a period between one day and eight years. 15. of Contracts 3 (5) iv) Earning per Share before Extra Ordinary Items Profit of Rs.Accounts & Taxation . The Company has following outstanding derivative instruments as on March 31.42 (2912. 10 each 11.050/-.11) 14.56) 11. India Agri.Basic EPS . For and on behalf of the Board For T U & Co. (i) The following are outstanding Foreign Exchange Forward Contracts.Rs. Daawat Foods Limited.28) (-110. in Lacs) Foreign Currency U. For the purpose of the agreement put option price shall mean an amount which gives investors an IRR of fifteen percent per annum on the investment or the fair market value whichever is higher. investors shall have the right but not the obligation to require the Company to acquire all (but not less than all) of the subscription shares held by investors at the put option price on spot delivery basis.28 Lacs (Previous year – Rs. (b) Retirement benefits to employees and (c) Inventories are different than the policies adopted by the company. 2010.56) Gain / (-Loss) (-48.81 (3140.341 equity share of rupees ten each. the impact of which on the Consolidated Profit and Loss Account and the Consolidated Balance Sheet has not been ascertained. Some of the accounting policies adopted by the subsidiaries in respect of (a) Fixed Assets and depreciation thereon.11 Lacs) is recognized under Exchange Fluctuation in the Profit & Loss Account. recast and rearranged wherever necessary.64) (ii) The following are outstanding Currency Option Contracts. in accordance with its risk / interest management policies and procedures. of Contracts 9 (6) Notional Amount 2138.28 (13. Chartered Accountants ASHWANI ARORA Joint Managing Director By TILAK CHANDNA (PARTNER) DATED : 26.business Fund Limited and Real Trust (the last two parties termed as investors in the agreement). S.30.55.05.28 (13.

648.60 (6.912.430.55 2.CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD ENDED MARCH 31.513.574.62 (2.29) 12.52) (1.51 4.422.24 7.177.401.341.01 (184.67 3. 2009 ANNUAL REPORT 75 .93) (4.29) (2. 2010 March 31.09) 19.42) 1.04) (12.18 509.93 March 31.36) 123.069.55) 2. in Lacs) PARTICULARS Cash Flows From Operating Activities Net Profit before taxation Adjustments to reconcile profit before tax to cash provided by operating activities (Profit)/ loss on sale of fixed assets Depreciation and amortiazation Interest and Dividend income Income from Investment (Profit)/ loss on sale of investment Provisions for doubtful debts/ recoveries Exchange difference on translation of forreign currency cash and cash equivalents Provision for Expenses Finance Charges Provision for Loss/Damages loss from subsidiary before relationship Preliminary expenses Changes in current assets and liabilites (Increase)/ decrease in sundry debtors (Increase)/ decrease in inventory (Increase)/ decrease in loans and advances (Increase)/ decrease in other current assets (Increase)/ decrease in trade and other payables Minority Interest Cash (used in)/ generated from operations (2.192.38 0.51 12.535.60) 7.340. 2010 (Rs.53) (8.205.768.798.982.97 (21.62 2.229.12 (1.52 (81.06) 146.46 1.88) 2.11 (20.53 235.39) 5.03) (2.43 (202.

55) 6.09 819.02 647. 2009 This is the Consolidated Cash Flow referred to in our report of even date For and on behalf of the Board of Directors For T U & Co.94) (5.589.57 (116.92 860.714.768.986.05.03 744.49) 21.65 647.21 2.54) 1. 2010 March 31.82) 555. Chartered Accountants ASHWANI ARORA Joint Managing Director By TILAK CHANDNA (PARTNER) DATED : 26.32 (393.Accounts & Taxation .(Rs.53 8.877.982.57 (7.05 March 31.73 65.613.09) (406.12) 8.258.48 (16.16) 172.495.291.92 (280.92 819.94 1.09 (5. in Lacs) PARTICULARS Cash flow from financing activities: Dividends paid during the year.05 2.63) 20.94 (9. including dividend tax Proceeds from minority Proceeds from issuance of share capital Proceeds from borrowing secured loans Proceeds from borrowing unsecured loans Finance charges paid Net cash generated from financing activities: Cash flow from investing activities: Purchases of fixed assets and changes in capital Work-in-progress Proceeds from sale of fixed assets Investments made Miscellaneous Expenditure Interest and dividend Income Profit from Sale of Investment Net cash used in investing activities Net(decrease)/increase in cash equivalents during the year Opening cash and cash equivalents Closing cash and cash equivalents Cash & Bank Balance Less: Deposits/Margin with Banks Closing cash and cash equivalents (5.83) (0.564.56 212.2010 PLACE : Gurgaon MONIKA CHAWLA JAGGIA Company Secretary SURINDER ARORA Joint Managing Director SOM CHOPRA Vice President.960.18) 12.06 (8.06) 2.091.96 9.734.46 647.21 (448.054.94) 151.

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