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OUR VISION

T o be the leader in our business which is so vital to people's lives and the environment

At Ion Exchange, we specialise in environment management, with particular focus on water and waste management. Apart from our vast expertise in drinking water purification and process water treatment, we have developed important new markets related to environmental engineering, for the treatment and recycle of waste water and sewage, and recovery of by-products, for reuse. We keenly advocate alternative renewable energy, by undertaking waste to energy projects for industry and municipalities to convert biomass and solid waste into energy. We also, a few years ago, entered the infrastructure sector to participate in urban and rural developmental projects for water supply, sewage treatment, disposal & recycle, and sea water desalination. We believe that our industry must not limit itself to just treatment, but that we must also concern ourselves with the sustainability of water and other natural non-renewable resources. In doing so, we will be working to meet the basic needs of people – our market, and protecting the environment on which life and business depend. Future generations depend on us to help promote the wise use and the good management of our planet’s resources. We are proud of our role in this vital mission.

ANNUAL REPORT 2008-09 BOARD
OF DIRECTORS

REGISTERED OFFICE
Ion House, Dr. E. Moses Road, Mahalaxmi, Mumbai - 400 011.

Mr. G. S. Ranganathan ....... Chairman Mr. R. Sharma ..................... Vice Chairman & Managing Director Mr. Dinesh Sharma ............. Executive Director Mr. Aankur Patni .................. Executive Director Mr. M. R. Menon .................. Director Dr. V. N. Gupchup ............... Director Mr. M. P. Patni ..................... Director Mr. T. M. M. Nambiar ........... Director Mr. A. K. Marfatia ................. Director Mr. P. Sampathkumar .......... Director Mr. Abhiram Seth ................. Director

BANKERS
Bank of India Canara Bank State Bank of India AXIS Bank Ltd. Punjab National Bank Export-Import Bank of India Indian Overseas Bank

SENIOR MANAGEMENT
Mr. R. Sharma ..................... Vice Chairman & Managing Director Mr. A. Popat ......................... Sr. Vice President-Corporate Marketing Mr. L. V. Keshav .................. Sr. Vice President-R&D, Corporate Quality & Systems Mr. R. S. Rajan .................... Sr. Vice President-Community and Commercial Water Solutions Mr. N. M. Ranadive ............. Vice President-Finance Dr. S. V. Mehendale ............. Vice President-Operations, Resin & Standard Systems Division Mr. S. N. Iyengar ................. Vice President-Medium Industry Segment Mr. Anil Khera ...................... Vice President-Chemicals Division Mr. J. P. Pathare .................. Vice President-International Division Mr. Jayant Pimpale ............. Vice President-Materials Mr. Prashant K. Chitnis ....... Vice President-Technology Mr. Sridharan Mahadevan .. Vice President-Human Resources Mr. Manoj G. Shivdasani ..... Vice President-Projects Mr. Souvik Ghosh ................. Vice President-Heavy Industry Segement

AUDITORS
M/s. S. R. Batliboi & Co.

ADVOCATE & SOLICITORS
Crawford Bayley & Co.

CONTENTS
Notice ....................................................... Director’s Report ..................................... 3 9

COMPANY SECRETARY
Mr. Milind Puranik

REGISTRAR & SHARE

TRANSFER AGENT

M/s. TSR Darashaw Ltd. (Formerly known as M/s. Tata Share Registry Ltd.) 6-10, Haji Moosa Patrawala Industrial Estate, 20, Dr. E. Moses Road, Mahalaxmi, Mumbai - 400 011. Tel. No. : 6656 8484/94 e-mail : csg-unit@tsrdarashaw.com Website : www.tsrdarashaw.com

Management Discussion and Analysis Report ....................................... Report of Corporate Governance ........... Auditor’s Report ...................................... Balance Sheet ......................................... Profit and Loss Account .......................... Schedules to Accounts ........................... Cash Flow Statement .............................. Consolidated Financial Statement .........

16 19 28 32 33 34 64 67

REGISTRAR FOR FIXED

DEPOSITS

M/s. TSR Darashaw Ltd. (Formerly known as M/s. Tata Share Registry Ltd.) 6-10, Haji Moosa Patrawala Industrial Estate, 20, Dr. E. Moses Road, Mahalaxmi, Mumbai - 400 011. Tel. No. : 6656 8484/94 e-mail : csg-unit@tsrdarashaw.com Website : www.tsrdarashaw.com

Kindly bring your copy of the Annual Report to the AGM as copies will not be distributed at the meeting in view of the high cost of paper and printing
2

NOTICE
NOTICE is hereby given that the Forty Fifth Annual General Meeting of the members of Ion Exchange (India) Limited will be held on Thursday, 24th September, 2009 at 11.00 a.m. at Amar Gian Grover Auditorium, Lala Lajpatrai Memorial Trust, Lala Lajpatrai Marg, Haji Ali, Mumbai - 400 034 to transact the following business: ORDINARY BUSINESS 1. To receive, consider and adopt the Balance Sheet as at 31st March, 2009, the Profit and Loss Account for the year ended on that date and the Reports of the Directors and the Auditors thereon. To declare Dividend on equity shares. To appoint a Director in place of Mr. M.R. Menon who retires by rotation and being eligible, offers himself for re-appointment. To appoint a Director in place of Mr. Akhil Marfatia who retires by rotation and being eligible, offers himself for re-appointment. To appoint a Director in place of Dr. V.N. Gupchup who retires by rotation and being eligible, offers himself for re-appointment. To appoint Auditors to hold office from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting and to authorize the Board of Directors to fix their remuneration. Government in accordance with any provision under the Act, for the time being in force (including any statutory modification(s) or re-enactment(s) thereof). RESOLVED FURTHER THAT in the event of absence or inadequacy of profits in any financial year during the tenure of the Executive Director, Mr. Dinesh Sharma, the Company shall pay him remuneration by way of salary and perquisite as set out in the explanatory statement annexed to this Notice. RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized to vary or increase the remuneration payable to the Executive Director, Mr.Dinesh Sharma, to the extent the Board may consider appropriate and as permitted in accordance with any provision under the Act read with Schedule XIII, as amended from time to time and the Company will not have to take further approvals as long as the remuneration payable to the Executive Director, Mr. Dinesh Sharma does not exceed the maximum permissible under the relevant Act, rules and regulations that are for the time being in force including any statutory modification or re-enactment thereof. 8. To consider and if thought fit, to pass with or without modification(s) the following resolution as a Special Resolution : “RESOLVED THAT pursuant to the provisions of Sections 198, 269, 309 and other applicable provisions, if any of the Companies Act, 1956 read with Schedule XIII of the said Act (including any statutory modification(s) or re-enactment(s) thereof for the time being in force) and subject to the approval of Central Government, consent of the members be and is hereby accorded to the appointment of Mr. Aankur Patni as Executive Director for a period of 5 years commencing from 1st April, 2009 and to the payment of remuneration as set out in the agreement to be entered into by the Company with Mr. Aankur Patni. RESOLVED FURTHER THAT the Board of Directors (hereinafter referred to as ‘the Board’ which term shall be deemed to include the Remuneration Committee constituted by the Board) of the Company be and is hereby authorized to make modification to the terms of the appointment and / or remuneration and / or agreement with Mr. Aankur Patni, as it considers appropriate and / or as may be required by the Central Government in accordance with any provision under the Act, for the time being in force (including any statutory modification(s) or re-enactment(s) thereof). RESOLVED FURTHER THAT in the event of absence or inadequacy of profits in any financial year during the tenure of the Executive Director, Mr. Aankur Patni, the Company shall pay him remuneration by way of salary
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SPECIAL BUSINESS 7. To consider and if thought fit, to pass with or without modification(s) the following resolution as a Special Resolution : “RESOLVED THAT pursuant to the provisions of Sections 198, 269, 309 and other applicable provisions, if any of the Companies Act, 1956 read with Schedule XIII of the said Act (including any statutory modification(s) or re-enactment(s) thereof for the time being in force) and subject to the approval of Central Government, consent of the members be and is hereby accorded to the appointment of Mr. Dinesh Sharma as Executive Director for a period of 5 years commencing from 1st April, 2009 and to the payment of remuneration as set out in the agreement to be entered into by the Company with Mr.Dinesh Sharma. RESOLVED FURTHER THAT the Board of Directors (hereinafter referred to as ‘the Board’ which term shall be deemed to include the Remuneration Committee constituted by the Board) of the Company be and is hereby authorized to make modification to the terms of the appointment and / or remuneration and / or agreement with Mr.Dinesh Sharma, as it considers appropriate and / or as may be required by the Central

ANNUAL REPORT 2008-09
and perquisite as set out in the explanatory statement annexed to this Notice. RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized to vary or increase the remuneration payable to the Executive Director, Mr. Aankur Patni, to the extent the Board may consider appropriate and as permitted in accordance with any provision under the Act read with Schedule XIII, as amended from time to time and the Company will not have to take further approvals as long as the remuneration payable to the Executive Director, Mr. Aankur Patni does not exceed the maximum permissible under the relevant Act, rules and regulations that are for the time being in force including any statutory modification or re-enactment thereof. By Order of the Board Milind Puranik Company Secretary Registered Office: Ion House Dr. E. Moses Road Mahalaxmi, Mumbai 400 011 Mumbai, 19th June, 2009

NOTES : 1. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of himself and the proxy need not be a member. Proxies, in order to be effective, must be received by the Company not less than 48 hours before the time fixed for holding the meeting. The Explanatory Statement pursuant to Section 173(2) of the Companies Act, 1956 is annexed hereto. The Register of Members and the Share Transfer Books of the Company will remain closed from Thursday, 17th September, 2009 to Thursday, 24th September, 2009 (both days inclusive). Details of Directors seeking appointment / re-appointment as required under clause 49(VI)(A) of the listing agreement entered with The Stock Exchange, Mumbai, are as below:
Dr.V.N.Gupchup 08.01.1937 17.07.1995 B.E.(Civil), S.M., SC.D. Dr Gupchup has been active in the field of technical education for more than 40 years and has provided leadership in this field in the state of Maharashtra. He has contributed to various aspects of the development of technical education at the National level. He has been the Principal of the VJTI and Pro Vice Chancellor of the University of Mumbai. Presently he is the Chairman of Civil Engineering Safety Committee of the Atomic Energy Regulatory Board and also of the Structural Engineering Research Centre of CSIR in Chennai. 4 Mr. M.R.Menon 08.10.1924 23.03.1990 B.Sc., [Engineering] Mr.M.R.Menon in his previous position as Managing Director and subsequently Chairman of M/s. Davy Powergas India Limited has been closely associates with the growth of Davy Powergas operation in India in the field of engineering contracting for the chemical process industries. Presently Mr.Menon is Corporate Advisor to Indo British D e v e l o p m e n t Consortium and is actively involved in the operations of Total Water Management Services (India) Ltd. Mr. Akhil Marfatia 10.12.1938 05.05.2003 B.Sc. [Economics] Mr. Marfatia has about 46 years of rich and varied professional experience in the field of Marketing and Management. Mr.Aankur Patni 14.03.1971 24.01.2006 B.Com., ACA,CISA Mr. Patni has experience in Finance Management & I n f o r m a t i o n Technology. He was earlier associated with SBI Capital Market as AVP and currently is director on board of various other companies. Mr.Dinesh Sharma 20.11.1964 24.01.2006 B.Sc. Mr. Sharma has varied experience in the field of Marketing and M a n a g e m e n t . Presently he is the Chairman of M/s. Ultrapure Technology & Appliances India Ltd., specialised in manufacture and marketing of kitchen appliances. Besides being on the Board of various other Companies.

2. 3. 4.

Name Date of Birth Date of Appointment Qualification Expertise

Chairman/Director of Other Companies

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TSRDL. Mumbai 400 011 Mumbai.000 1.Dinesh Sharma 1 1. non receipt of dividend or interest. holding shares in physical mode.Menon 4 Mr.100 5. Requests to R&T will not be entertained. 2009 5 . Shareholders. All correspondence relating to holdings. should be addressed to our R&T. pursuant to Sections 205A and 205C of the Companies act. holding in dematerialized form. TSR Darashaw Ltd. This form will have to be used by only those shareholders.Gupchup 5 Mr. By Order of the Board Milind Puranik Company Secretary 6. Registered Office: Ion House Dr. This facility will have to be availed by only those shareholders.TSRDL.00. E.N. bank particulars. Dividend. 7. the nomination form prescribed by the Depository will have to be used and submitted with the Depository Participant.34.000 20. For shareholders. 19th June. Shareholders who have not claimed Dividend for the period 2001-2002 and subsequent years are advised to write to our R&T. change of address.336 1. Members are requested to produce the enclosed attendance slip duly signed as per the specimen signature(s) registered with the Company for admission to the meeting venue. 2009 and to those beneficial owners (holding shares in electronic form) whose names appear in the Beneficiary report furnished by the depositories. M/s. Moses Road Mahalaxmi. Nomination form can be obtained from our R&T. 2009 to those members (holding shares in physical form) whose names appear on the Register of members as on 24th September.07.(TSRDL) and those holding shares in dematerialized form should inform their respective Depository Participants of any change in their bank particulars. etc. if declared at the meeting will be paid on or before 29th September. The ECS form is printed towards the end of this Annual report. Unclaimed Dividend for the period 1999-2000 has been transferred to Investors Education and Protection Fund. M/s. may please inform any change in their bank particulars to our Registrar & Transfer Agents (R&T).V.Aankur Patni none Mr. 9. 10. holding in physical mode. The facility for remitting dividend through Electronic Clearing System (ECS) is provided by the Company.75. M.668 2. 8. Akhil Marfatia none Mr.R. holding in physical form & the same should be submitted to our R&T for registration.Name Chairman/Member of the committees of the Company and other Company(s) Number of shares held in the Company Dr. 1956.

This will not include admission and life membership fees. spouse and dependant children. On the expiry of every 12 months from the effective date of this Agreement (i. : Reimbursement of medical expenses for the Executive Director. 2009 appointed Mr. Commission The Expenditure incurred by the Company on gas. 2009. Dinesh Sharma shall belong to the Company. Provision of car with driver and telephone at residence will not be considered as perquisites. 3. 4. in case the accommodation is owned by the Company. The Remuneration Committee and the Board approved the terms of remuneration payment at its meeting held on 25th March. expenditure by the Company on hiring furnished accommodation for the Executive Director will be subject to the ceiling of 60% of the salary over and above 10% payable by the Executive Director.000/. 5. 1962 and shall not exceed Rs.e. Contribution to the provident fund. In case when in any financial year during the current tenure of the Executive Director. superannuation fund or annuity fund and encashment of leave at the end of the tenure will not be included in the computation of ceiling on perquisites to the extent these either singly or put together are not taxable under the Income Tax Act. . if any. Superannuation : 15% of the Basic Salary Gratuity 6 : 15 days Basic Salary for each completed year of service. The appointment is subject to the provisions of Sections 198. 2. 7 The Board of Directors at its meeting held on 25th March. 3. electricity. 1. 269 and 309 and other applicable provisions.per month. : Payment of Commission shall be based on net profits of the company in a particular financial year. Any discovery. Dinesh Sharma shall be entrusted with powers of management of the business of the Company. as amended from time to time. : Rs. : i) Free furnished accommodation. Dinesh Sharma are as under : 1.000/. 1st April 2009) the basic salary shall stand increased by Rs. Leave Travel Allowance Educational Allowance Medical Benefits Club Fees : For the Executive Director and his family. Dinesh Sharma as Executive Director for a period of 5 years commencing from 1st April. water and furnishings shall be valued as per the Income Tax Rules. Dinesh Sharma shall not engage in any other business during the tenure of the Agreement.000 per month. Dinesh Sharma shall be posted in Mumbai. as amended from time to time.00. once a year incurred in accordance with the rules specified by the Company. 1961. in force. Mr. Mr. Housing 2. 1952 and relevant rules thereof. which put together with salary and perquisites shall be subject to the overall ceilings laid down under sections 198 and 309 of the Companies Act. the Company has no profits or profits are inadequate.50. The main terms and conditions of the appointment are as under : Basic Salary : Rs. iii) In case no accommodation is provided by the Company. The other terms and conditions of the appointment of Mr.000/. remuneration will be payable to the Executive Director as specified in Section II of Part II of Schedule XIII to the Companies Act. of the Companies Act. He shall faithfully and diligently serve the Company as Executive Director and exercise such other powers and functions as my be conferred on him by the Managing Director and/or Board. Mr. Mr. 2009. invention made by Mr. Provident Fund : 12% of the Basic Salary or as per the provisions of the Employees Provident Fund and Miscellaneous Provisions Act. 1956.00.ANNUAL REPORT 2008-09 EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE COMPANIES ACT. 1956 read with Schedule XIII and approval of the Central Government. 1956. Dinesh Sharma shall maintain secrecy in regard to the affairs of the Company. the Executive Director shall be entitled to House Rent Allowance subject to a ceiling of 60% of basic salary. ii) In case the accommodation is hired by the Company. : Fees of clubs subject to a maximum of two clubs. 1956 Item No.(Rupees Three Lacs) per month.per annum.

he shall not be interested directly or indirectly in any selling agency of the Company. 1952 and relevant rules thereof.50.Rajesh Sharma as relative and Mr. 269 and 309 and other applicable provisions. 1st April 2009) the basic salary shall stand increased by Rs. 12. 11. 3. The Remuneration Committee and the Board approved the terms of remuneration payment at its meeting held on 25th March. After the termination of Mr. 8 The Board of Directors at its meeting held on 25th March. in case the accommodation is owned by the Company. : i) Free furnished accommodation. 1961. spouse and dependant children. None of the director is concerned or interested in the said Resolution. Provident Fund : 12% of the Basic Salary or as per the provisions of the Employees Provident Fund and Miscellaneous Provisions Act. Dinesh Sharma is available for inspection at the Registered office of the company on working days between 2:00 to 4:00 p. the Company will be entitled to terminate his Agreement.m. Item No. as amended from time to time. except Mr. The Company shall be entitled to determine the Agreement. : Rs. Leave Travel Allowance Educational Allowance Medical Benefits Club Fees : For the Executive Director and his family. superannuation fund or annuity fund and encashment of leave at the end of the tenure will not be included in the computation of ceiling on perquisites to the extent these either singly or put together are not taxable under the Income Tax Act. Dinesh Sharma expenses incurred by him for traveling and entertainment in connection with the business of the Company. in force. Contribution to the provident fund. 8. The appointment is subject to the provisions of Sections 198. 7 .000 per month. ii) In case the accommodation is hired by the Company. The Company will reimburse Mr. Dinesh Sharma shall not be liable to retire by rotation. Dinesh Sharma by reason of ill-health or accident remain absent for a period of 180 days in a period of twelve consecutive months.Dinesh Sharma as the resolution is for his appointment and remuneration payment. The terms and conditions as stated above may also be treated as an abstract under Section 302 of the Companies Act. Aankur Patni as Executive Director for a period of 5 years commencing from 1st April. The draft agreement to be entered into with Mr. 1956. iii) In case no accommodation is provided by the Company. : Payment of Commission shall be based on net profits of the company in a particular financial year.00. So long as Mr. 1956. : Fees of clubs subject to a maximum of two clubs. Commission 7. which put together with salary and perquisites shall be subject to the overall ceilings laid down under sections 198 and 309 of the Companies Act. expenditure by the Company on hiring furnished accommodation for the Executive Director will be subject to the ceiling of 60% of the salary over and above 10% payable by the Executive Director.(Rupees Three Lacs ) per month.e. 2009. The main terms and conditions of the appointment are as under : Basic Salary : Rs. should Mr.6. of the Companies Act. the Executive Director shall be entitled to House Rent Allowance subject to a ceiling of 60% of basic salary. : Reimbursement of medical expenses for the Executive Director.per month. Should Mr. Either party shall be entitled to determine this Agreement by giving to the other six months’ notice in writing. Superannuation : 15% of the Basic Salary Gratuity : 15 days Basic Salary for each completed year of service.000/. Dinesh Sharma functions as the Executive Director.000/. Mr. Dinesh Sharma’s appointment he will not represent himself as being interested in the Company’s business.2. once a year incurred in accordance with the rules specified by the Company. This will not include admission and life membership fees. 1956 read with Schedule XIII and approval of the Central Government. Housing 10. On the expiry of every 12 months from the effective date of this Agreement (i. 9. 2009. if any. Dinesh Sharma be negligent in discharge of his duties. 2009 appointed Mr.

Moses Road Mahalaxmi. 11. None of the director is concerned or interested in the said Resolution.per annum. Aankur Patni functions as the Executive Director. Patni as relative and Mr. 8. 3. Mr. Aankur Patni is available for inspection at the Registered office of the company on working days between 2:00 to 4:00 p. 12. 8 . Aankur Patni be negligent in discharge of his duties. E. 19th June.ANNUAL REPORT 2008-09 The Expenditure incurred by the Company on gas. 2009 2. Mr. Mr. Aankur Patni are as under : 1.P. 4. Aankur Patni shall not engage in any other business during the tenure of the Agreement. Aankur Patni shall be entrusted with powers of management of the business of the Company. 1962 and shall not exceed Rs.000/. 1956. 9. the Company has no profits or profits are inadequate. Aankur Patni shall belong to the Company. Aankur Patni by reason of ill-health or accident remain absent for a period of 180 days in a period of twelve consecutive months. Aankur Patni shall not be liable to retire by rotation. Any discovery. Mumbai 400 011 Mumbai. 7. should Mr. After the termination of Mr. Mr. The terms and conditions as stated above may also be treated as an abstract under Section 302 of the Companies Act.m. The Company shall be entitled to determine the Agreement. he shall not be interested directly or indirectly in any selling agency of the Company. electricity.00. invention made by Mr. Mr. He shall faithfully and diligently serve the Company as Executive Director and exercise such other powers and functions as my be conferred on him by the Managing Director and/or Board. 6. By Order of the Board Milind Puranik Company Secretary Registered Office: Ion House Dr. Aankur Patni shall be posted in Kolkata. The draft agreement to be entered into with Mr. 10. Aankur Patni expenses incurred by him for traveling and entertainment in connection with the business of the Company. Either party shall be entitled to determine this Agreement by giving to the other six months’ notice in writing. 1. Aankur Patni shall maintain secrecy in regard to the affairs of the Company. water and furnishings shall be valued as per the Income Tax Rules. 5. Aankur Patni as the resolution is for his appointment and remuneration payment. remuneration will be payable to the Executive Director as specified in Section II of Part II of Schedule XIII to the Companies Act. Aankur Patni ’s appointment he will not represent himself as being interested in the Company’s business. In case when in any financial year during the current tenure of the Executive Director. Provision of car with driver and telephone at residence will not be considered as perquisites. The Company will reimburse Mr. the Company will be entitled to terminate his Agreement. Should Mr. except Mr. M. So long as Mr. 1956. The other terms and conditions of the appointment of Mr. as amended from time to time.

the challenge for your Company is to continuously explore new means and avenues to retain its edge as the premier player in the industry.000/.69. which tends to affect margins. We are sure that your Company’s focus on continuous technological upgradation.12. technological edge and wider reach. FINANCIAL RESULTS The highlights of the financial results are as follows : Year ended March 2009 (Rs.to Rs.065 1. The turnover was lower at Rs.392 262 45 80 2. The paid-up equity capital of the company increased from Rs. are beginning to pick up pace. remain till the global economy gets normalized. the net profit after tax of the company was Rs. 2009. 99. showing a marginal decrease of 11. after allotment.005 2.000 Year ended March 2008 (Rs. 2009.10. Recycle of waste water is becoming mandatory for housing complexes and industries.04. More than ever before. the prices have now stabilized.remained unclaimed. DIVIDEND The Directors are pleased to recommend a dividend of Re. while the outlook for this fiscal is undoubtedly moderated.000 equity shares [6.2005. the Employees’ Stock Option Compensation Committee (ESOCC) allotted 2. 1 [10%] per equity share for the financial year ended 31st March. 226 fixed deposits amounting to Rs.327 2. 1.5 %.144 lacs.24. Contingent on the improvement in the global economy.500 equity shares under ESOS – 2005] to the directors and employees of the Company. 374 78 40 112 144 2. in Lacs) 1. there are signs of revival in the Indian economy.000/. Increasing water scarcity and fresh water contamination due to untreated municipal sewage and industrial waste will require advanced technologies in water and waste water treatment.610/.69. Therefore. Investor and business confidence is gradually getting restored and investments that were put on hold on account of slowdown in demand. 2009. 9 . as compared to previous year’s net profit after tax of Rs. Fixed Deposits As on 31st March. however. 445 crores as compared to Rs. FINANCIAL RESOURCES Share Capital Under Employees’ Stock Option Scheme – ESOS . The water and environment industry.005 The industry continues to attract increasing competition from new entrants. 2009. The risk of another round of volatility will.149 127 22 — 2. 503 crores of the previous year. your Company should be in a better position this year to reap the benefits of our infrastructure. FUTURE OUTLOOK While major economies globally are still under recession.610/-. by its very nature of business is highly sustainable. in Lacs) Profit before taxation Less: Provision for taxation : Current tax Deferred tax Fringe benefit tax Profit after tax Balance in Profit & Loss Account brought forward from Previous Year Profit balance available for appropriation Appropriations: Dividend including Proposed Dividend Tax on dividend Transfer to General Reserve Balance in Profit & Loss Account Carried Forward to Balance Sheet OPERATIONS During the financial year ended 31st March. 63 Deposits amounting to Rs.have been renewed / claimed since then.12.567 283 52 167 1.22.DIRECTORS’ REPORT Your Directors have pleasure in presenting the 45th Annual Report and Accounts for the year ended 31st March. Volatility in raw material prices adversely affected the performance of the industry. your Company continues to be optimistic about the future of the industry and its business. improved quality and service will help it to maintain its leadership.44.065 lacs.99.

Ion Exchange Enviro Farms Limited (IEEFL) Although substantial cost effective organic farming techniques were implemented in the farms. 2009. V. Singapore The Company achieved a consolidated turnover of Rs. water chemicals.5.BHD.58 lacs for the previous year.834. The Central Government is in the process of granting approval to the Company under the said section. are given in the Report on Corporate Governance. as amended. Water care Investments (India) Ltd. Pursuing with its objectives of enhancing returns through value added products. the audited Consolidated Financial Statements of the Group are enclosed.. The manufacture and sale of organic inputs showed a steady improvement and the company is planning to launch more products to cater to specific segments through sustained R&D efforts. ESOS 2005 and ESOS 2008 as required to be given under SEBI (Employees Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines. The Company’s operations will substantially benefit and address the parent company’s needs in the US. This will help to further consolidate the company’s position in Oman.3. Mr.11 lacs compared to Rs. which affected the mango crop in the entire Konkan belt.08 lacs for the previous year. The Company has made an application to Central Government under sub-section 8 of section 212 of the Companies Act 1956.634.07 lacs of the previous year and M/s.4.1. This will benefit the Company in future for bidding in local projects. the company undertook mango Pulping and Vacuum Packing for improved shelf life and explore marketing opportunities. ESOS – 2003.73 lacs compared to Rs. 10 IEI Environmental Management [M] SDN.ANNUAL REPORT 2008-09 EMPLOYEES' STOCK OPTION SCHEMES The details of Employees’ Stock Option Schemes ESOS – 2001. The Company has been established with a view of facilitating operations in Malaysia and is a strategic investment which would be crucial for increasing the overall Exports to the country. The Company has strengthened its resources in terms of manpower and increased presence in other countries. K. Ion Exchange & Co. design. resins and taking up projects of installing water filtration plants of any nature.Aqua Investments (India) Limited posted profit of Rs. The resin business from USA is on the rise. At the Board meeting held on 25th March 2009 Mr. the Subsidiary companies M/s. Gupchup retire by rotation and being eligible offer themselves for reappointment. DIRECTORS Mr M. 1999. The Company will also provide comprehensive technical and process assistance services such as consultancy. USA This subsidiary is established to address the needs of U S market. turnkey contracting etc. Marfatia and Dr.6. Ion Exchange Environment Management (BD) Limited. The Company has started generating good business. SUBSIDIARY COMPANIES Aqua Investments (India) Ltd. The performance of the Company picked up during the year as the Company has started to cater multiple geographical areas. LLC. seeking exemption from attaching the subsidiaries annual reports with the Company’s annual report. CONSOLIDATED FINANCIAL STATEMENTS As required by Accounting Standard 21 ‘Consolidated Financial Statements’ issued by the Institute of Chartered Accountants of India. The business in Bangladesh showed a marked improvement in the year under review. During the year ended 31st March. N. and Watercare Investments (India) Ltd.032. Aankur Patni were appointed as Executive Directors with effect from 1st April 2009. There are some significant breakthroughs for specialty applications.112. The appointments .03 lacs for the year under review. IEEFL could not capitalize on the gains due to very erratic climatic conditions.13 lacs compared to Rs. Ion Exchange Asia Pacific Pte Ltd. Ion Exchange Infrastructure Limited This was the second full year of operation. 1956. Menon.3. The profit after tax was at Rs. The Company is now approved by PDO (OMAN).44 lacs of the previous year. AUDITORS' REPORT The Auditors’ observation in paragraph 4 of their report have been explained under the Notes to accounts. is attached to the Annual Report. which has encouraged the company to initiate such activities in a more professional way in future. The Company has started local assembly of Plants which will help the company to increase the business and consolidate its position in Bangladesh. Oman The Company is set up to address the needs of middle east market especially Oman. Bangladesh The Company is set up with a view to strengthen and widen the Company’s presence in the International market. A. R. However due to recessionary trends in USA the business was affected during the last three months of the year. Malaysia The Company’s main activity is trading in water filtration equipments. Ion Exchange LLC.98 lacs as compared to Rs. The product has been very well received. The Company has been established with a view to provide integrated solutions for Water treatment encompassing industrial effluent and sewage treatment and recycle etc. posted profit of Rs. detailed engineering. With right strategies and systematic approach IEEFL is expected to have a very favourable impact on company’s performance in the near future. A statement as required under Section 212 of the Companies Act. Dinesh Sharma and Mr. Central Government approval under Section 212 (8) of the Companies Act 1956. The turnover achieved was Rs.7.257.

FOREIGN EXCHANGE EARNINGS & OUTGO Information in accordance with Section 217 (1) (e) of the Companies Act 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. it is hereby confirmed that : (i) in the preparation of the annual accounts for the year ended 31st March. 2009 is given in Annexure I. CONSERVATION OF ENERGY. based on the Balanced Score Card. S. TECHNOLOGY ABSORPTION. Manufacturing locations. DIRECTORS' RESPONSIBILITY STATEMENT Pursuant to the requirement under Section 217(2AA) of the Companies Act. proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. shareholders and fixed deposit holders. AUDITORS The Statutory Auditors. Building Human Resources and capabilities to drive Internal Processes and thereby meet customer expectations. 1956. based on the structured problem solving methodology. gained momentum during the current year. PARTICULARS OF EMPLOYEES The details required to be given under Section 217(2A) of the Companies Act. MANAGEMENT DISCUSSION AND ANALYSIS REPORT Report on Management discussion and analysis as required under Clause 49(V) of the listing agreement forms part of this annual report. M/s. R.125 lakhs during the financial year 2008-09. It achieved a savings of over Rs. 1975. 1956. S. The annual accounts of the subsidiary companies will also be kept for inspection by any shareholder at the Company’s Head office and that of Subsidiary Companies concerned. would be within the limits specified under section 224(1B) of the Companies Act. 11 . implies the following: Understanding customer requirements and perceptions. ACKNOWLEDGEMENTS Your Board conveys its deep appreciation of the co-operation extended by customers. 1956. QUALITY INITIATIVES The Balanced Scorecard activities which were initiated last year. S. banks. 2009 (ii) (iii) (iv) CORPORATE GOVERNANCE A report on Corporate Governance as required under Clause 49 of the listing agreement forms part of this annual report. The Company has received letter from M/s. Aankur Patni as Executive Directors are being proposed by resolutions which form part of the Notice of Annual General Meeting. 1956 with respect to Directors’ Responsibility Statement. action plans and KRAs of individuals. the applicable accounting standards have been followed along with proper explanation given relating to material departures. in detail. hold office until the conclusion of this meeting and are eligible for reappointment. contribution made by employees for the company’s growth. to the effect that their re-appointment. as amended and forming part of this report are given in Annexure II. Note: The Company has received the Central Government’s approval dated 26th June 2009 granting exemption from attaching the subsidiaries annual reports with the Company’s Annual report. The Company undertakes that the annual accounts of the subsidiary Companies and the related detailed information will be made available to the shareholders seeking such information at any point of time. Aligning & strengthening internal processes in order to deliver to customer requirements. System audits of Regional Offices. 1988 and forming part of this Report for the year ended 31st March. read with the Companies (Particulars of Employees) Rules. Batliboi & Co. if made. O&M and Project sites was another important area which helped the organization to monitor and improve systems. Corporate Quality also worked closely with divisions to implement Quality Improvement Projects. Dinesh Sharma and Mr. Ranganathan Chairman Mumbai Date : 19th June. R. appropriate accounting policies have been selected and applied consistently and judgments and estimates were made that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period . Achieving financial objectives. suppliers. Corporate Quality continued with its other activities of detailed process mapping and establishing and tracking Quality Objectives. On behalf of the Board of Directors G. for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities have been taken to the best of their knowledge .of Mr. 2009. Corporate Quality worked closely with the various Divisions of IEI to establish their financial Goals and Objectives for the next three years. the annual accounts have been prepared for the financial year ended 31 st March. 2009 on a going concern basis. Batliboi & Co. financial institutions. Corporate Quality facilitated the entire process of establishing the Balanced Scorecard for the organizations linking divisional goals to initiatives..

if any.P. initiatives taken to increase exports. 2. TECHNOLOGY ABSORPTION (e) Efforts made in technology absorption : Details as per Form.22.5 H. 98.22. 3. S. (g) Total Foreign exchange: Used Earned Rs. development of new export markets for products and services and export plans: The Foreign Exchange earnings increased by 42. In order to strengthen the Company’s position in the international market.) in the cooling water circuit.ANNUAL REPORT 2008-09 ANNEXURE TO THE DIRECTORS’ REPORT 2009 ANNEXURE I Companies (disclosure of Particulars in the Report of Board of Directors) Rules. (b) (c) Higher plant capacity utilisation. (C) FOREIGN EXCHANGE EARNINGS AND OUTGO (f) activities relating to exports.43.59. Ranganathan Chairman Mumbai Date : 19th June 2009 12 . Additional investments and proposals. 1998 (A) CONSERVATION OF ENERGY (a) energy conservation measures taken 1. the Company has set up subsidiaries in USA and Middle East Asia The Company hopes to garner encouraging response in the coming years. (d) (B) total energy consumption and energy consumption per unit of production : Details as per Form – A of the Annexure.5 % over last year. 58.570/- G. Installation of booster pump (1.B of the Annexure.146/Rs. Installation of membrane diffuser in operation Tank of ETP. being implemented for reduction of consumption of energy : NIL Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on cost of production of goods: The above measures have resulted in variable overhead reduction.

2008) 52.2009) 49. ELECTRICITY : a) Purchase SL.) 3674318 21044400 5.FORM . NO.) NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL 2.92 551540 2400148 4.36 OWN GENERATION : Through diesel generator : SL.88 392 NIL NIL NIL STANDARDS (IF ANY) ELECTRICITY (Units / MT) (Units / M ) 3 FURNACE OIL COAL (SPECIFY QUALITY) OTHERS (SPECIFY) 13 . CONSUMPTION PER UNIT OF PRODUCTION : Products unit of production : : chemicals MT resins M3 Current Year (2008 .68 PREVIOUS YEAR ( 2007. POWER AND FUEL CONSUMPTION : 1.08 18. Coal : Furnace Oil Others / internal generation : B. 3. TOTAL UNITS(Kwh) TOTAL AMOUNT(Rs.75 PATANCHERU 47100 2.54 15. Thro' steam turbine / generator : 1 2 3 TOTAL UNITS(Kwh) UNITS / LTRS OF FUEL(Kwh) COST / UNIT(Rs.) ANKLESHWAR 158240 2.45 II.A (FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY) A.10 16.) RATE / UNIT(Rs.87 24879 2.20 ANKLESHWAR PATANCHERU 102993 2. ITEMS CURRENT YEAR ( 2008 .51 354 NIL NIL NIL Previous Year (2007.73 PATANCHERU 433222 2021696 4. ITEMS 1 2 3 TOTAL UNITS(Kwh) UNITS / LTRS OF FUEL(Kwh) COST / UNIT(Rs.71 13.2009 ) ANKLESHWAR 1 2 3 b) I.2008 ) ANKLESHWAR PATANCHERU 2983486 14675342 4. NO. 4.

a) Zero-B Intello is premium product with built-in unique Elecronic System Sanitizer (ESS) which prevents slime formation in entire system components. c. Reduction of cost of Ion exchange resin synthesis process. product development. product improvement. enhances RO membrane life and keeps purified water tank bacteria free. It prevents foul smell of water. Validation of Indion test kits. b. 11. a) b) c) 2.g. Expenditure on R&D a. Specific areas in which Chemical R&D has been carried out by the company are as follows: a) b) c) d) e) f) g) 2. The process improvements have been helpful in reducing the production cost. ensures fresh water at all time and give high shelf life to water. Development of new ranges of specialty resin for biotechnology application opened up the international market. d. a.42. Application studies of resins for biodiesel application.998/Rs. Pilot plant trials for BSR resin. In addition to germ free water. 2. adaptation and innovation. The validation of test kits improves the technical specification of the product. 2. in specific areas thereby providing a competitive edge. Benefits derived as a result of the above R&D work. b. Application studies proved that our resin can be utilized for the bio-diesel production application. Development and seed marketing of Organic Input for Plants. 3. d.ANNUAL REPORT 2008-09 FORM B (Form for Disclosure of Particulars with respect to Absorption) RESEARCH AND DEVELOPMENT (R&D) 1. etc. The Organic Inputs could open up new market in the agricultural sector. Option for online dispensing of water through diverter valve is available. Development of Specialty Resins for Specific applications. It has an unique electronic life indicator which indicates purifier’s life.34. b) 14 .588/Rs. Zero-B Intello – Electronic Sanitizing System Zero-B Solar Indion ASM (Arsenic Selective Media) Benefits derived as a result of above efforts. It avoids use of sanitizing chemicals.586/- Total R&D Expenditure as a percentage of turnover : 0.91. e.84.69% TECHNOLOGY ABSORPTION. ADAPTATION AND INNOVATION: 1. Efforts in brief made towards technology absorption. e. import substitution. cost reduction. c. thus creating a new market area for this speciality resins in Bio-Diesel production. Capital Revenue Total : : : Rs. These kits can be marketed effectively against other international test kits. ESS is an international breakthrough in drinking water system which gives an edge over other RO based water purifiers. Development of specialty resin for biotech application. Zero B Solar is a non-electric online wall mounted storage water purifier with solar powered functions. it also removes heavy metals from water.96.

2. Gross Remuneration includes Salary.A.S. LL.A. Dinesh Sharma.A. It is an eco-friendly product as it avoids use of electricity. Name Mr. Leave travel allowance and Medical reimbursement.1974 Previous Designation Employment - B.II ANNEXURE TO THE DIRECTORS’ REPORT. This technology is robust and can handle greater arsenic load per cubic feet of media at high concentration of arsenic (Max. 3.. 2009. Notes : 1. G. 2009 Information as per Section 217(2A) read with the Companies (Particulars of Employees) Rules. N. 1975 and forming part of the Directors’ Report for the year ended 31st March. : : : : None N. 3. Director of the Company. In case of imported technology (imported during the last 5 years reckon from the beginning of the financial year) Technology imported Year of import Has technology been fully absorbed If not fully absorbed. 4. N.) 99.01. Allowances.Sharma is related to Mr.Sc. Gratuity. Sharma Rajesh is contractual. Sharma Rajesh Designation/ naturme of duties Vice Chairman & Managing Director Remuneration Received Gross (Rs. The appointment is subject to the rules and regulations of the Company in force from time to time. Nature of employment of Mr. coffeemaker. reasons therefore and future plans of action ANNEXURE . c) Indion ASM can selectively remove arsenic from ground water without affecting other water quality parameters. etc. Its superiority ensures tremendous potential in global market.330 Qualifications Experience (years) 35 Age (years) 54 Date of commencement of Employment 08..91.B. 3000ppb) The media has extremely high static adsorption capacity 30 mg/g of resin. Exhausted media is safe for disposal as it has passed TCLP test as per EPA 1311. areas where this has not taken place.Purified water also goes online through diverter valve for external use such as a refrigerator. Employer’s contribution to Provident fund. Ranganathan Chairman Mumbai Date : 19th June 2009 15 . Mr.

131 crores compared to Rs. Stimulus packages for infrastructure projects announced by Government include initiatives to augment the water infrastructure in the country. its wide range of technologies that enable total solutions. Swajaldhara.these are all are factors that will stand your Company in good stead to maintain the premier position it enjoys in the water & environment industry. institutional and residential. including those your Company operates in. development and strategic technology tie-ups . and also to the water 16 . Your Company’s continual intrinsic focus on technological innovation through research. Rural India is emerging as a major market. Engineering Chemicals Consumer Products ENGINEERING The segment designs. The focus on water infrastructure along with increased demand from the industrial and retail segments has generated an unprecedented interest from entrepreneurs – big. we expect an improved performance for this segment in the coming year. with growth slowing down from 9% to 7%. its operations across all segments – municipal.321 crores for the previous year. but exports got adversely affected due to slow down in North America and Europe. All this offers promising business prospects for your Company. Industry Structure and development The global economic meltdown during the financial year under review has been unprecedented in our times. Fiscal initiatives by Government have played a key role in restoring business confidence in India. 144 lakhs as compared to Rs. Margins were badly eroded due to steep rise in raw material cost in the first half of the year. Segmentwise Operational Performance The business of your company can be segmented into: 1. Ion exchange resins manufactured by your Company are being well accepted in these markets. achieving a turnover of Rs. 1065 lakhs in the previous year. Europe and Japan experiencing severe contraction.5 to 7%. 265 crores as compared to Rs. which resulted in loss of profits. this affected the performance of the Engineering Segment which achieved turnover of Rs. the Company continues to develop new customers in Asia and East European countries. affected business of this segment which nevertheless was able to maintain its performance. The overall economic environment of India is now showing signs of relative improvement with the Reserve Bank of India revising the forecasted GDP growth rate upwards from 6. Various application related studies are being jointly conducted with several customers and the full potential of the same is likely to be realised in the next two years. with major economies of US. Profits could have been much higher but for steep rise in the raw material costs in first half of the year and sudden slow down of the business in third quarter. 445 crores. The Indian economy too was impacted. despite country-wise stimulus packages and G-20 agreement to inject an additional $1 trillion to prevent deeper depression. manufactures and sells medium and large size equipment for water & waste water treatment plants. water. infrastructure. Highlights of Performance Gross turnover for the year 2008-2009 was Rs. b. 2. With the revival of projects evident in many sectors. Prestigious international certification of some of the products is further facilitating business overseas. its geographical expansion and increased resin & engineering manufacturing capacities. with a huge consumer base. c. Profit after tax was Rs. CHEMICALS The economic slump particularly in the global markets. 68 crores as compared to Rs. sanitation. and the growing awareness and demand worldwide for safe drinking water and a cleaner environment . 3. The coming months are expected to show improved demand from the industrial sector also. However. The economic downturn resulted in decelaration of projects by most business sectors. Participation in Government programmes such as Jalmani. Sales in the domestic market increased. The outlook for this segment is positive.ANNUAL REPORT 2008-09 MANAGEMENT DISCUSSION AND ANALYSIS REPORT a. This division caters to the urban consumers as well as rural homes and communities. Large investments are planned in power. The business environment has therefore become increasingly more competitive and margins are under pressure in quite a few areas. creating an uncertain macro economic environment for almost all business sectors. small and micro. CONSUMER PRODUCTS The segment achieved a turnover of Rs. 130 crores of the previous year. ports & aviation. urban and rural. The capacity expansion project has been completed and the benefits of the same will be seen in the coming years. 72 crores of the previous year. industrial. JNRUM and Rajiv Gandhi Drinking Water Mission offer scope to expand our presence in the vast rural market.

retail and channels. evolving a mitigation plan and continuous monitoring of performance against the plan is operational. With changing macro–economic scenario and changes in the water treatment industry. At Ion Exchange we believe that the success of our Company is dependent on dedicated and loyal performers. value engineering without compromising the quality and tying up with the vendors for assured supplies at competitive prices on back to back payment terms wherever possible. your Company remains vigilant of its market share with continued focus & reinforcement on credibility. while participating in a vast rural market. Your Company being a technology driven company is continuously on the look out for reputed and reliable new alliances and international partners to capitalise on the gains of technological innovations. cost. In doing this. etc.6 % from Rs. At IEI. This has led to significant adverse impact across a large segment of industries including the water industry. The management has pursued timely action to curtail the impact but still due to unprecedented volatility of prices some adverse effect on the margins could not be prevented. However. By successfully adapting many of our technologies and products to suit rural needs in terms of appropriateness. The year under review saw a transformation in the domestic water purifier category which continues to generate great interest and is seeing a large number of entrants. The operating structure of the division is being continuously synchronised with market demand and opportunities to ensure consumer needs are met with utmost satisfaction. Company has conservative forex management policy and does not speculate in forex market. we are able to address the needs of rural India with respect to safe drinking water and sewage treatment. Threats . Significant investment is also planned on research and development. building competencies. During the year the Company has successfully penetrated the Middle East market through its facility in UAE. The thrust is on Balance Score Card implementation. technology upgradation and adoption to new technologies. Concerns and Risk Mitigation Risk mitigation has been a priority of the Management’s agenda. The brand was conferred the “Best Domestic Water Purifier” award in the RO water purifier category by Water Digest in association with UNESCO. Mitigation plan includes undertaking cost reduction. High performers are identified and groomed to take up challenging responsibilities. petroleum products. Human Resources & Training Companies are built on the strength of people who work for it. with point-of-use units. develop and retain talent. the global recession which started during the latter part of the year 2008-09. team work and employee satisfaction to attract. though completely beyond the control of the Company. 17 . In keeping with our commitment to provide safe drinking water to every segment and income strata. your Company is also working concurrently contributing to the upliftment of the rural populace through providing safe water and sanitation. affect the business operations. Fluctuations in exchange rate has been also identified as one of the risks which could impact the export earnings as well as raw material imports. A structured method of evaluating risk and impact.treatment requirements of the institutional segment. we practice career progression. Your Company continues to invest in its Zero B brand. performance management. d. Employees are thus motivated to work with dedication as there is tangible proof of recognition of outstanding performance. Industry as a whole has witnessed volatility in prices of both global as well as local raw materials such as steel. operation and maintenance. cement. quality. 97 crores largely due to engineering projects. Employees are regularly given training to improve and excel in their jobs and to develop new skills that open up opportunities for growth. the company has adequate hedging methods in place to mitigate this risk. caused mainly due to e. service and technology to ensure competitiveness vis-à-vis major Indian and global players. hand pump attachments to community level systems for drinking water purification & disinfection. through direct. EXPORTS Exports grew by 40. A periodic internal certification process to provide regulatory compliance assurance has been evolved to mitigate the regulation related risks. 69 crores to Rs. thus throwing up new challenges and opportunities. the thrust will be on increasing market share with enhanced customer services and innovative products to meet evolving needs of customers This segment also offers a wide range of solutions for the rural market. for the third consecutive year. In the current year. the division launched several products like Suraksha Plus for lower income consumers. Regulatory policies and changes in the law of the land. The Company has started focusing on other unexplored markets which will help further improve its export performance in the current year. which is firmly established as a key player in the domestic water purification market. Risks. Many of our top managers have risen from the ranks.

we offer regular technical training in all aspects of environment management. g.comprising employees. The Audit committee meets at regular intervals to review the audit observations and the progress of implementation of recommendations agreed by the Senior Management personnel. for Bihar flood victims. The audit plan takes into account the risk priorities assigned by the management. CSR measures in the area of safe drinking water include the donation. On behalf of the Board of Directors G. Ranganathan Chairman Mumbai Date : 19th June 2009 18 . Hence. The management cannot guarantee the accuracy of the assumptions and expected performance of the Company in future. f. Our understanding of customer needs and expectations has led us to a major change in our customer approach. The statutory auditors too review the audit observations and make suitable recommendations. your Company continues to engage in various corporate socially and environmentally responsible initiatives. a Zero B Water Vending Station and 500 units of Zero B Suraksha drinking water purifiers to the Nargis Dutt Memorial Trust. Other initiatives in this area continue such as adapting technology for safe drinking water to rural needs. Cautionary Statement The statements or explanations given in this report may contain some forward looking statements based on assumptions having regard to the government policies. economic conditions etc. developing low cost water purification devices for lower income strata to make drinking water increasing available to the masses. stakeholders. service companies and suppliers. Emphasis on team work has resulted in synergy and better understanding the importance of satisfying internal and external customers and increased productivity. The Audit plan for the year is presented to the Audit committee and is also approved on presentation. The company has an in-house internal audit department staffed with qualified and experienced professionals.ANNUAL REPORT 2008-09 Our strength lies in the fact that we still work like a family – an extended family . besides general and executive development programmes.S. to add more value to them. The Company has also started this year two water treatment operator diploma courses in association with Mars Trust in Chennai. Social responsibility initiatives In keeping with its vision “To be the leader in our business which is so vital to people’s lives and the environment. Internal controls Control framework within the company is adequate and comprehensive. by our Consumer Products division. and assisting technically qualified unemployed rural candidates to develop a career in water and waste water management. We are now into understanding the business processes of our customer. The existing review mechanism provides reasonable assurance of the efficacy of the Internal control framework within the Company. the actual results may substantially differ from those expressed or implied herein. Being a technology-driven organization. of 5000 Jal Shudhi disinfectant tablets. CSR activities include facilitating under privileged schoolgoing children in the pursuit of education and the Company is supporting two such centres in Mumbai and Bangalore. Trinity College of Education in Pune besides on-going diploma course in water management in collaboration with Babasaheb Ambedkar College to provide practical and theoretical training and employment generation to students. dealers.

Independent Executive Executive Non-Executive. integrity. Board Meetings. 24.2008. The Company will continue to focus its resources. Your Company confirms the compliance of Corporate Governance as contained in Clause 49 of the Listing Agreement. Rajesh Sharma Mr.com . P Sampath Kumar Mr. the matters specified under clause 49(IV). G. Gupchup Mr.03. A. M.2008. Dinesh Sharma Mr. Aankur Patni Mr.2009. Rajesh Sharma Mr.2008. the details of which are given below: 2. N. Annexure 1 of the Listing Agreement were placed and discussed. Independent Mr. The attendance of directors at the Board meeting. Patni Mr. Marfatia Mr. 2009] The Board comprises of Eleven Directors. At the heart of Company’s Corporate Governance policy is the ideology of transparency and openness in the effective working of the management and Board. M. T. Abhiram Seth* Category Executive . Aankur Patni Mr. V. Akhil Marfatia. The Company adheres to good corporate practices and is constantly striving to better them and adopt the emerging best practices. Code of Conduct The Board of Directors has laid down code of conduct for all Board members and senior Management of the Company.S.07. P. Marfatia Mr. It is believed that the imperative for a good corporate governance lies not merely in drafting a code of Corporate Governance but in practicing it. At every board meeting.Vice Chairman & Managing Director Non-Executive Non-Executive. M.06. M. Abhiram Seth 6 6 6 6 6 6 5 4 5 5 5 3 (includes 1 Chairmanship) 12 3 (includes 1 Chairmanship) 4 12 2 2 1 13 (includes 1 Chairmanship) 9 4 iii. Abhiram Seth was appointed as additional director at the Board meeting held on 25th July 2008 and the members approved his appointment as director at the Annual General Meeting held on 26th September 2008. Independent Non-Executive Non-Executive. 25. The Company does not have a Nominee Director on the Board. Board of Directors (The Board) i. . Dinesh Sharma Mr. their Directorships in other Companies and Membership / Chairmanship in the Committees constituted by other Companies are given below: Name Number of Board Meetings Attended Directorships in other Company(s) (as on 31/3/09) Member/ Chairman of the committees of other company(s) (as on 31/3/09) 3(includes 1 Chairmanship) 1(chairman) Mr.2008.REPORT ON CORPORATE GOVERNANCE 1. Menon Dr. 26. Independent Non-Executive. affirmation that they have complied with the code of conduct in respect of the Financial Year 2008-09. A copy of the code has been put on the Company’s website www. V. T.09. S. Gupchup Mr. honesty and accountability. The Composition of Board is given below: Name Mr.ionindia. M. M. Annual general meeting and Attendance of each Director The Company held Six Board Meetings on 17. Rajesh Sharma Vice Chairman & Managing Director 19 *Mr. G. Nambiar Mr.10. M. Menon Dr. Patni Mr. A declaration signed by the Managing Director is given below: I hereby confirm that: The Company has obtained from all the members of the Board and Senior Management. M. A. R. Nambiar Mr. Ranganathan Non-Executive Chairman (Promoter) ii. Ranganathan Mr.R. N. The previous Annual General Meeting (AGM) of the Company held on 26th September. Composition & Category of Directors [as on 31st March. Sampath Kumar Mr. strengths and strategies to achieve its vision of becoming a truly global water treatment company while upholding the core values of transparency.2009 and 25. Company's Philosophy On Code Of Corporate Governance Company’s philosophy on corporate governance is aimed at assisting the top management of your Company in conducting its business in an efficient transparent manner and in meeting its obligations to shareholder and other stake holders.01. of whom Eight Directors including Chairman are non-executive and Five directors are independent. 21. 2008 was attended by all the Directors except Mr. P. Independent Non-Executive.

M. The details are given below: Name Mr.12. Menon and Dr. The Remuneration Committee is headed by Dr.04.2002) Third grant – 3. preceding the date of grant of option or the closing market price prior to the date of grant. T. M.000 (13. P.2008. Menon and Mr.60.6.M.2004) Second grant – 3.3.2009 and 25. Pricing formula First grant @ Rs.100 (08. Options granted First grant .60. Aankur Patni Amount paid (Rs.00.00 Computed on the average of two weeks high and low price of the shares traded on The Stock Exchange. Exercise price First grant @ Rs. S. The remuneration paid to Managing Director Mr. Gupchup are independent and non-executive except Mr. V.R. A.58.21.780/11.Rajesh Sharma during the financial year 2008-2009 is given hereunder.550/.40.000 The Audit Committee is headed by Mr. Gupchup (Non-executive and independent) along with the members of the Committee are Mr.2009. Mumbai during the 13 weeks prior to the date of grant or the closing price on the date of ESOS-2003 ESOS .50 Second grant @ Rs. 2009) ESOS-2001 A.each to Mr. All the members of the Committee.19. Mumbai.10.06.03.000 90000 1.) (Rs.000/. M R Menon.M. a chartered accountant. Mr. 25.99. Exercise price shall be at a discount not exceeding 25% on 20 . P.20 Computed on the average of two weeks high and low price of the share traded on The Stock Exchange.50.00.000 2.00 Third grant @ Rs. V. Patni Mr.19. Marfatia Mr.000 (29. the Company paid Rs. preceding the date of grant of option or the closing market price prior to the date of grant. Name Mr.000 (02.Gupchup Number of Audit Committee meetings attended 5 5 5 Mr. Sampathkumar Mr. 94. Gupchup Mr. M. M. M.82.91. Ranganathan Mr.55. R.000 1.000 1. T.) 67.16.000 (05.2001) Second grant 5. V. Mr. N.000 (05.M.01. M.08. The Company Secretary acts as the Secretary to the Committee. Dinesh Sharma Mr.08. Rajesh Sharma during the financial year 2007-2008 is given hereunder. T.000/.2005 First grant . who is not independent.03. Mumbai. V.00.50 Computed on the average of two weeks high and low price of the share traded on The Stock Exchange.10.2007) B.000 2.07.000/. 24.M.) &other funds (Rs. Remuneration Committee The remuneration policy of the company determines the remuneration package of the directors (executive and non-executive) and statutory compensation payment. 21.06.06.67.12. Name Salary & Contribution Perquisites Total Allowances to Provident (Rs. G.000 2.00.00.500 (20. During the year.000 16.20. T.2008.84.07.ANNUAL REPORT 2008-09 3. M.00. The remuneration paid to Managing Director EMPLOYEES' STOCK OPTION SCHEMES (As on 31st March. preceding the date of grant of option or the closing price on the date of the grant whichever is lower or First grant @ Rs. M.2006) ESOS . Audit Committee The Audit Committee regularly reviews and analyses the adequacy of internal control system.00. 4.2007) First grant @ Rs. P. 19. M.60.2006) Second grant 5.60.00 Computed on the average of the weekly closing prices on The Stock Exchange. N.Nambiar Mr.N. The Committee held five meetings during the year on 17.as sitting fees to the non-executive Directors for attending the Board and Committee Meetings. Aankur Patni.Menon Dr.07.00.2008) First grant . Nambiar. The Internal Auditor submits reports periodically to the Committee and suggestions are given for effective functioning of the internal control system.36. Patni (Non-executive).00 Second grant @ Rs.00. Mumbai.00 Second grant @ Rs. R.Dinesh Sharma and Mr. Nambiar Mr.08. Nambiar.) (Rs.55. Abhiram Seth Mr.2008 First grant . Menon Dr. R.) 2.000 1. N.000 1.54. M.50.5. the financial and risk management policies of the Company and other matters as laid down under clause 49(II) of the Listing Agreement with the Stock Exchange. 94.330/- Mr.Rajesh Sharma During the year pursuant to Shareholders’ and Central Government approval the Company has paid remuneration of Rs.000 (24.

70.77.400 Third grant – 17.83.89.ESOS-2001 the grant whichever is lower or with a discount not exceeding 25% on the price as computed by the above formula as may be decided by the ESOS Compensation Committee.65) First Grant .000 Nil D.125. 29.000 Second grant – 3.100 First grant – 2.84.78.50.000 Pursuant to the approval of shareholders at 44th Annual General Meeting.000 First Grant – 3.000 Second grant – 3.89. ii) Pursuant to the approval of shareholders at 44th Annual General Meeting.44.18.18. Options exercised First Grant – 5. Second grants Rs.675 Nil E.83. Third grant Rs.10) ESOS .77.075 Second grant – 11.2005 shall be at a discount not exceeding 25% on the average price or the closing market price as computed by the above formula as may be decided by the ESOS Compensation Committee.07.72.80.10) C. of shares arising as a result of exercise of option F. Variation of terms of options i)Pursuant to the approval of shareholders at 42nd Annual General Meeting the Employees’ Stock Option Compensation Committee has decided to advance the date of vesting of options so that options not vested as yet be vested immediately.65.2008 the average price or the closing market price as computed by the above formula as may be decided by the ESOS Compensation Committee.000 ESOS .000 None G.500 Second Grant – 3. (The closing market price on BSE as on the date of grant – First grant Rs.4. Options lapsed First Grant – 5.00.000 Second Grant 5. Second grant Rs. 125.000 First Grant – 3.700 First grant – 2.000 Second grant – 8. The total no. 24.675 Nil First Grant – 58. (The closing market price on BSE as on the date of grant – First grant Rs.000 First Grant – 30.78.500 Second Grant – 3.500 Second grant – 1. (The closing market price on BSE as on the date of grant First grant Rs.77.500 Second grant – 5.700 First grant – 1.65.50.36. the Employees’ Stock Option Compensation Committee has decided to amend the vesting period for the None None 21 . 96. (The Closing market price on BSE as on the date of grant – First grant Rs. the Employees’ Stock Option Compensation Committee has decided to amend the vesting period for the options granted so that the date of vesting of all the options granted which were to be vested in tranches be advanced and all the options not vested as yet be vested simultaneously ESOS-2003 with a discount not exceeding 25% on the price as computed by the above formula as may be decided by the ESOS Compensation Committee. Options vested First grant – 3. Second grant Rs. 13.55) First Grant – 6.

V.Rajadhyaksha – Mr.P.R.000 Patni – Mr.12.39.M.94.V.00.000 Mr.22.500 Second Grant – 1.000 First Grant – Rs.500/Second grant Rs.000 To Vice presidents : Mr.000 Mr.SampathKumar – 20.40.24.G.Patni .000 Mr.000 Mr.Ajay Popat –15.500/Second grant Rs.Patni – 50.N.000 Mr.P. Marfatia – 10.R.000 Dr.000 Mr.Pathare .000 To Directors: Mr.N.25. R.000 Mr.G.20.000 Mr.Abhiram Seth 25.N.000 (Vice Chairman 75.600/First Grant – 1.N.Rajan – 25.000 25.S.S.M.2008 I.62.Nambiar – Mr.000 Mr.S. P.51.Ranadive – Mr.Rao-50.74.M.V.000 (Vice Chairman & Managing Director) Mr.2005 ESOS .00.39. M.M.000 50.P.T.000 Mr.M.000 To Sr.13. K.Rajan – 15.000 20.Patni – 45.Aankur 50.N.Keshav .000 Mr.000 Mr.300/Second grant – 2. Dinesh Sharma 1.Iyengar. Rajan .L.P.825/First grantRs.000 Mr.Rajesh Sharma – 50.000 To Directors of Subsidiary : Mr.25. Vice Presidents: Mr.M.Jayant Pimpale 15.R. Ajay Popat .000 Mr.Menon .M.T.Ranadive 25.S.V.000 J.S.Nitin Samant – 20. Akhil Marfatia 25.1.Abhiram Seth – 25.Mehendale 5.000 Mr.ANNUAL REPORT 2008-09 ESOS-2001 ESOS-2003 options granted so that the date of vesting of all the options granted which were to be vested in tranches be advanced and all the options not vested as yet be vested simultaneously H.V.000 Mr.Rao-25.Anil Khera .Ajay Popat – 25.20.Nambiar 25.Menon-50.Keshav –15.73.P.M.000 Mr.25.M.SampathKumar 25.M.G.000 Mr.000 Mr.M.M.000 Dr.22.000 None ESOS .000 Mr.N.Nambiar – Mr.09.22.000 40.34.000 Mr.A.000 First Grant .00.250 Second Grant – 3.D.000 Mr.Anil Manocha.T.2. Money realised by exercise of options First grant – Rs.000 Mr.Gupchup-25.000 Mr.Gupchup 50. Menon .D.M.Ranadive – 10.000 Mr.000 (Vice Chairman & Managing Director) & Managing Director) Mr. Total number of options in force First Grant – 13.R.000 Dr.J.000 Third grant – 2.Rajesh Sharma – 75. Rajesh Sharma 1.000 To Vice Presidents: Mr.000 Mr.000 To Vice presidents : Mr.Dinesh Sharma 25.Ajay Popat – 15.08.000 To Vice presidents : Mr.M.2.M.83.000 Mr.Rajesh Sharma – Mr.L.V.R. Aankur Patni 1.Menon-25.04.09.000 (Vice Chairman & Managing Director) To Directors : Mr.90. Employee wise details of options granted to : i) Senior managerial personnel First grant : To Directors: First grant First grant : To Directors : Mr.000 Mr.000 22 .R.

Patni – 50.R.000 Mr.000 Third Grant: To Vice Presidents: To Directors: To Vice presidents : Mr.000 10.M.000 Mr.S. Nambiar – Mr.R. K. Ajay Popat – 15.000 Mr. P SampathKumar – 25.000 Mr.M.000 57.000 ESOS-2003 Second Grant : To Directors: ESOS .000 20.000 To Vice Presidents: Mr.000 45.Nambiar – 15.ESOS-2001 Second grant : To Directors : Mr. iii) I d e n t i f i e d employees who were granted option.V.Menon – 40.Ranadive – 10.000 20.M. None None None None None None None None 23 .M. Aankur Patni – Subsidiary : 45.R.V.000 Dr. R. Rajan – 12.000 Mr.25.000 Mr.Ajay Popat – 25. Dinesh Sharma – 25. P.000 To Directors of Mr.M.000 20.25. equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the company at the time of grant.P.M.000 Mr. S.K.Ranadive – 45.Ranadive – Mr.Rao .000 Mr.Gupchup – 25.Abhiram Seth – Mr.000 5.000 Mr. R. A.T. Nambiar – Mr.M.Rajan – 25.Rajesh Sharma – 25.000 Mr.2008 To Directors : Mr.P. Keshav – Mr.Rajadhyaksha – Mr. Dinesh Sharma – Mr.D.000 Mr.000 Mr.N.P. during any one year.000 Mr.000 Mr. L.M.000 10.000 45.000 Mr.G.M.V.P.N.Rajesh Sharma – 90.K. Ajay Popat – 5. Rajan – 8.S.G.R.000 57.M.Patni – 51. V.000 Mr.Sampathkumar – Mr.M.Menon .000 Mr.N.000 Mr.000 Mr.M.M.V.Patni – 50.40.S. Aankur Patni – Mr. R.A.000 (Vice Chairman & Managing Director) To Vice Presidents: Mr.000 Mr.T. L.000 45.Marfatia – 5. Keshav – 10.000 ii) Any other employee who receives a grant in any one year of option amounting to 5% or more of option granted during that year. Keshav – 5.Sampathkumar – 10.Marfatia – 5. Marfatia – 25. A.M.000 Mr.Menon .000 Mr.Dinesh Sharma – Mr. Aankur Patni – Mr.N M.T. L. Ajay Popat – 15.2005 Second Grant: ESOS .000 (Vice Chairman & Managing Director) Mr. Rajan – 18.

The impact of this difference on profits and on EPS of the Company shall also be disclosed.A. Expected life iii.11/L. E x p e c t e d dividends. Diluted earnings per share (EPS) pursuant to issue of shares on exercise of option calculated in accordance with Accounting Standard (AS) 20 earning per share – Rs. M. N. N. The price of the underlying share in market at the time of option granted. Please refer Schedule 17. 24 N. the difference between the employee compensation cost so computed and the e m p l o y e e compensation cost that shall have been recognized if it had used the fair value of the options.A.ANNUAL REPORT 2008-09 ESOS-2001 ESOS-2003 ESOS . Note 2 N.A.A. shall be disclosed. including the following weighted average information: i. Risk-free interest rate ii.2008 K.A. N.2005 ESOS . where the company has calculated the e m p l o y e e compensation cost using the intrinsic value of the stock options. E x p e c t e d volatility iv. N. A description of the method and s i g n i f i c a n t assumptions used during the year to estimate the fair values of options. Note 2 N.A. Weighted average exercise prices and weighted average fair value of options shall be disclosed separately for options whose exercise price either equals or exceeds or is less than the market price of the stock. Note 2 .A.A. Please refer Schedule 17. N. N. and v.1. N.A. Please refer Schedule 17.

Amar Gian Grover Auditorium. Menon (Non Executive) and Mr. 137 xi. ii) The Company has complied with all the Statutory requirements and no penalties or strictures have been imposed on the Company by the Stock Exchanges or SEBI or any other authority on any matter related to capital markets during the last three years. Gupchup (Non. The meeting of share transfer committee is held once in a fortnight. Transmission of Securities: : xiii. Enquiry on dematerialisation: of shares iv. Non receipt of Dividend / : Interest warrants 01 04 05 02 01 01 04 05 02 01 Year 2005-2006 Date 04. G.2007 2007-2008 26. V. Exchange/ Sub Division of shares : : : vii. 6.m.400 034 2006-2007 26. No complaint received through SEBI/NSDL/CDSL/ Department of Company Affairs during the financial year. Details of the aforesaid special resolution passed through postal ballot are as under: i) Person who conducted the postal ballot exercise: The Board appointed Mr. Ranganathan (Non Executive). Number of Queries / Complaints / Requests received during the financial year from shareholders / investors: Received Resolved i. The Audit Committee and the Board of Directors review these procedures periodically. Practising Company Secretary. the scrutinizer reported that the shareholders representing 99. Split/Consolidation/ Renewal/Duplicate/ Subdivision/ Exchange of Shares x. Virendra Bhatt. S. Lala Lajpat Rai Marg. Mumbai. Details of voting pattern: After scrutinizing all the ballot forms received. ECS Mandate registration : 62 41 53 02 62 41 53 02 ii) ii) : 01 10 10 137 01 10 10 7. V.000 options granted to employees on 5th June 2007 under ESOS 2001 and ESOS .08. Request for Nomination Forms xii. their relatives and subsidiaries with the Company were not in conflict with the interests of the Company.09. A calender of events was submitted to the Registrar of Companies. Amar Gian Grover Auditorium. The Committee is headed by Dr. Name Correction : v. 6. Means of Communication As per the requirements of listing agreement with The Stock Exchange. regarding non receipt of dividend has been replied to. Mumbai .m.50. the quarterly.00 a. iii) The Company had laid down procedures to inform the Board of Directors about the Risk Management and its minimization procedures. Lala Lajpat Rai Marg. The transactions with related parties are disclosed in the Notes to Accounts under Item no.00 a.executive and Independent). Dr. Gupchup and Company Secretary is the Compliance Officer. Rajesh Sharma. based on which the results were declared and the resolution was carried with majority. Procedure followed: The Postal Ballot Notice and accompanying documents were dispatched to shareholders under certificate of posting.m. Enquiry on non-receipt of : shares sent for transfer iii. N.400 034 11. Mumbai .2008 Special Resolution Passed Through Postal Ballot: During the year a special resolution was passed on 15th January 2009 by the Company's members through Postal Ballot under SEBI (Employee stock option scheme and employee stock purchase scheme) guidelines 1999 for re-pricing the 6. Haji Ali. half yearly and 25 8.09. Mr. All complaints are resolved to the satisfaction of investors / shareholders and there are no complaints pending for more than 30 days. as scrutinizer to conduct postal ballot voting process. Mumbai. Shareholders / Investors Grievance Committee The members of the Committee are Mr.2003.2006 Time Location 11. Haji Ali. Annual General Meetings Location and Time where last three Annual General Meetings were held: Disclosures i) The financial and commercial transactions entered into by Directors. . N. Lala Lajpat Rai Marg.5. Amar Gian Grover Auditorium. Change of address viii Loss of Shares ix.00 a.71% of the total voting strength voted in favour of the resolution. Letters received from : SEBI and other statutory bodies vi. Mr. M. R. Haji Ali.Bhatt conducted the process and submitted his report to the Chairman.400 034 11. Mumbai . ii. Dividend / Interest queries : including request for changes in live warrants xiv Document Registration xv Redemption xvi Others (Miscellaneous) : : : 11 01 44 11 01 44 One Complaint received from Gunvantrai Bhaichand Mehta through Bombay Stock Exchange Ltd. Maharashtra.

2008 June. 2008 December.) 130. vi) Stock code and ISIN Number The Stock Exchange. Compliance: Compliance with applicable laws and regulations. 2009 to Thursday 24thSeptember. Risks/ controls and mitigation measures are uploaded on Company’s intranet for regular review and updation by process owners.ANNUAL REPORT 2008-09 annual financial results of the Company are faxed & sent to the Stock Exchange immediately after the same are approved by the Board. 2009 Quarter ending September 30. The Management Discussion and Analysis forms part of this annual report. iv) Dividend payment date Dividend. 2008 October.00 117. 2008 September.INE570A01014.00 65.45 160.00 140.00 97. 9. 2008 November. 2008 July.m. Amar Gian Grover Auditorium. TSR Darashaw Ltd.50 91.N.sebiedifar. The approval for transfers in physical mode and confirmation to the depositories on Demat requests are given within 15 days of receipt.com).00 a. 2009 Last week of October. within 48 hours of approval by the Board and uploaded on SEBI (Securities & Exchange Board of India)’s EDIFAR (Electronic Data Information File and Retrieval) website www. if declared shall be paid on or before 29th September. if declared at the Annual general meeting. 2009 Market Price v/s. The same is published in English (Free press journal) and regional language (Navshakti) newspapers.in and our company’s website (www. 2010 Share Transfer System All activities relating to processing of share transfers in physical mode & dematerialization activities are undertaken at the Company’s Registrar & Transfer Agents. G. General Shareholder Information i) Annual General Meeting Date Time Venue : : : 24thSeptember 2009 11.00 86. Operations: Effective and efficient use of its resources Reporting: Reliability of financial reporting. 2009 Last week of January. Lala Lajpat Rai Marg. M/s. 2009 26 . Gupchup (non-executive) and Mr. BSE Sensex High (Rs.500214.00 55. During the financial year 2008-2009 the share transfer committee held 24 meetings. 2009 Year ending March 31.) High (Rs.nic.400 034 1st April to 31st March Last week of July.15 166.R.60 124.85 158.80 195. 2008 May. Risk are assessed and ranked according to the likelihood and impact of them occurring. Mumbai .ionindia. iii) Book closure date The Register of Members and the Share Transfer Books of the Company will remain closed from Thursday. Ranganathan (non-executive). Dr.S.50 58. 2009 March. provided the documents are clear in all respects.) 193. aligned with and supporting its mission. 2009.15 66. Haji Ali. Risks and concerns and their management The Company has successfully implemented risk management framework to achieve the following objectives. 2010 v) Listing on Stock Exchange The Company’s equity shares are listed at The Stock Exchange.00 113.00 79. Mr. 10.00 65. Rajesh Sharma are the members of the Committee. The Stock Exchange.) Low (Rs. V. 2009 February. Mumbai. The Company Secretary is the compliance officer.30 ii) Financial calendar year 2009-10 Financial year Quarter ending June 30. M. Menon (non executive). 2008 August. ISIN Number .25 157. 2009 (both days inclusive) for determining the entitlement of shareholders to receive dividend for the year ended 31st March. Mumbai .00 112.95 Low (Rs.90 233. Existing controls are assessed and mitigation measures discussed. 2009 Quarter ending December 31. 17th September.10 138. Mumbai Market Price Data: High/Low during each month of the Financial Year Month Month April. 2010 Last week of June. Mr.25 65. Strategic: High – level goals. 2008 January.

Medak Andhra Pradesh Patancheru .30 0.04 4. The compliance of conditions of Corporate Governance is the responsibility of the management. 2009 27 . Mahalaxmi.789 55. as stipulated in Clause 49 of the listing Agreement of the Company with the Stock Exchange in India.41.96.Not applicable as not issued.5811-12-13.393 002 Bharuch.00 1.3000 3001 .com website: www.887 2. Verna.887 % 87.99. Gujarat Assembly Centre for Local : R-14.876 49. CHAKRADEO & CO.10000 10001 & above TOTAL No.33 1. Tamilnadu Hosur .e.635 126 Water Treatment Chemicals. M/s.15 70. In our opinion and to the best of our information and explanations given to us.P. of Shareholders 11.28 2.548 1. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.81 1. Our examination was limited to the procedures and implementation thereof. we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above-mentioned Listing Agreement. 20. : 19/A.31% of the equity capital were held in dematerialised form. No.42 1.42.00 Dematerialisation of Shares and Liquidity The Company's Equity Shares are in compulsory demat i. of Shares Less than 500 501 – 1000 1001 .12 1. Thane Belapur Road Treatment Plants Rabale.407 6.61. Company Secretaries V.95 4.307 1.19. We state that no investor grievances are pending for a period exceeding one month against the Company as per the records maintained by the Company. electronic mode and as on 31st March.502 319 Consumer Products : Plot nos.30.915 6. Chakradeo Proprietor (C.975 1. 2009 Category Promoter & Promoter Group Mutual Funds & UTI Banks.90.32 0.com 100.50 5.53. Industrial Development Polymer products Area. Phase II Sugar Treatment Chemicals. L48 & L49 Verna Electronics City Phase II.2000 2001 .92 4.39 3. GIDC Ankleshwar Industrial Estate Ankleshwar . Salcette Goa . TSR Darashaw Ltd.Distribution of Shareholding as on 31st March.47.400 701 Manufacture & Assembly : 105. MIDC and Export of Water Nr.03 43.54. 2009.03 0.39 100.12 Plant Locations Resin manufacturing plant : Unit II . 2009 No.581 2. SIPCOT Industrial of Standard Plants Complex. adopted by the Company for ensuring the compliance of the conditions of Corporate Governance.77 0.: 6656 8484 Fax No.211 10.) Unit : Ion Exchange (India) Ltd. CORPORATE GOVERNANCE COMPLIANCE CERTIFICATE To the Members of Ion Exchange (India) Limited We have examined the compliance of the conditions of Corporate Governance by Ion Exchange (India) Limited for the year ended 31st March.284 823 391 91 39 41 90 128 12. Navi Mumbai .70 0. 68.90.92. Financial Institutions & Insurance Companies FIIs Domestic Companies Public NRIs/OCBs TOTAL Holdings 50.461 % 40.5000 5001 .00 Shareholding Pattern as on 31st March.1705) Place: Mumbai Date: June 19.V.99 Holdings 13.461 100. Haji Moosa Patrawala Industrial Estate. Dharmapuri. V.tsrdarashaw. E. Moses Road. TTC. It is neither an audit nor an expression of the opinion on the financial statements of the company.26.260 88.92.400 011 Tel No.81.141 5. Dr.26.: 6656 8494 email: csg-unit@tsrdarashaw. 2009. V.853 % 10. Tata Share Registry Ltd.403 722 Address for correspondence: All investor related queries should be addressed to our Registrar & Transfer Agent.24.71 0. 6-10.843 5. GDR / ADR / Warrants .329 1.16 8.56 6. (Formerly Known as M/s. Mumbai .4000 4001 .

We have obtained all the information and explanations. 2. we report that none of the directors is disqualified as on 31st March 2009 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act. on a test basis. 1956.70 lacs) in and advances of Rs.668. vi.451. the Management has not considered any provision in respect of Investments of Rs. 1956. 2003 (as amended) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act. Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act. In our opinion. In view of the factors discussed in Note 10 in Schedule 17 to the financial statements. Batliboi & Co. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. v. Further to our comments in the Annexure referred to above. Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. b) c) 5. we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. of the state of affairs of the Company as at 31st March 2009. On the basis of the written representations received from the directors.04 lacs (Previous Year Rs. in the case of the Profit and Loss Account. the Balance Sheet. R. and taken on record by the Board of Directors. Our audit report on the Financial Statements for the year ended 31st March 2008 was also modified in respect of the matter stated above. the effect of which is currently unascertainable. An audit includes examining. We have audited the attached Balance Sheet of Ion Exchange (India) Limited ('the Company') as at 31st March 2009 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. a) in the case of the Balance Sheet. as well as evaluating the overall financial statement presentation. The Balance Sheet. a subsidiary company. An audit also includes assessing the accounting principles used and significant estimates made by Management. in our opinion and to the best of our information and according to the explanations given to us. which to the best of our knowledge and belief were necessary for the purposes of our audit.86 lacs) to Ion Exchange Enviro Farms Limited. We believe that our audit provides a reasonable basis for our opinion.1.1. and in the case of Cash Flow Statement. iii. 4. 54. Our responsibility is to express an opinion on these financial statements based on our audit.ANNUAL REPORT 2008-09 Auditors’ Report To The Members of Ion Exchange (India) Limited 1. iv. of the cash flows for the year ended on that date. Chartered Accountants per Vijay Maniar Partner Membership No. we report that: i. if any. 54.70 lacs (Previous Year Rs. Subject to the matter stated in paragraph 4 above. 1956. Consequently. For S. the said accounts give the information required by the Companies Act. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India. As required by the Companies (Auditor's Report) Order. 1956. 3.:36738 Place : Mumbai Date : 19th June 2009 28 . as on 31st March 2009. evidence supporting the amounts and disclosures in the financial statements. the effect. proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. In our opinion. on the carrying value of investments and advances given are currently unascertainable. ii. We conducted our audit in accordance with auditing standards generally accepted in India. These financial statements are the responsibility of the Company's management. of the profit for the year ended on that date.

we are unable to comment whether the transactions were made at prevailing market prices at the relevant time. where applicable (Refer Note 10 in Schedule 17). thus. We are informed by the Management that no order has been passed by the Company Law Board. 16. 58AA or any other relevant provisions of the Companies Act. having regard to the explanation that certain items purchased are of special nature for which suitable alternative sources do not exist for obtaining comparative quotations. 16.68. In our opinion. The Management has conducted physical verification of inventory at reasonable intervals during the year.68. The loan granted is re-payable on demand. The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification. in our opinion and according to the information and explanations given to us. we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under section 301 have been so entered. In our opinion and according to the information and explanations given to us. National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal. directives issued by the Reserve Bank of India and the provisions of sections 58A.04. Hence clause (f) & (g) of the order are not applicable to the Company. The procedures of physical verification of inventory followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business. During the course of our audit. because of the unique and specialized nature of the items involved and absence of any comparable prices. to the extent applicable. As informed. the Company has not demanded repayment of the said loan during the year. there is an adequate internal control system commensurate with the size of the Company and the nature of its business. 1956 and the rules framed there under.04. for the purchase of inventory and fixed assets and for the sale of goods and services. There is no overdue amount of loan granted to companies. There was no substantial disposal of fixed assets during the year. firms (vi) (iv) or other parties covered in the register maintained under section 301 of the Companies Act. 1956 for the products of the Company. (a) According to the information and explanations provided by the Management. In respect of transactions made in pursuance of such contracts or arrangements exceeding value of Rupees five lacs entered into during the financial year. (b) (c) (ii) (a) (v) (b) (c) (b) (iii) (a) (b) (c) In respect of deposits accepted. To the best of our knowledge and as explained. 1956. no material discrepancies were noticed on such verification. The Company has granted unsecured loan to a company covered in the register maintained under section 301 of the Companies Act. in our opinion. All fixed assets have not been physically verified by the Management during the year but there is a regular programme of verification which. is reasonable having regard to the size of the Company and the nature of its assets. In our opinion and according to the information and explanations given to us. the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Companies Act. the rate of interest and other terms and conditions for such loan are not prima facie prejudicial to the interest of the Company. there has been no default on the part of the party to whom the money has been lent. the Company has an internal audit system commensurate with the size and nature of its business.Annexure referred to in paragraph [3] of our report of even date Re: Ion Exchange (India) Limited (i) (a) The Company has maintained proper records showing full particulars. firms or other parties listed in the register maintained under section 301 of the Companies Act. The Company has not taken any loans.270.270 and the year end balance of loans granted to such party was Rs. The payment of interest has not been regular. 1956. As informed. including quantitative details and situation of fixed assets. have been complied with. 1956. 29 (vii) (d) (viii) (e) . secured or unsecured from companies. The maximum amount involved during the year was Rs. no major weakness has been noticed in the internal control system in respect of these areas.

customs duty. for a period of more than six months from the date they became payable. interest and difference in valuation ( to the extent ascertainable) 24.550 4.15.ANNUAL REPORT 2008-09 (ix) (a) Undisputed statutory dues including provident fund.382 7.502 23.46.48. Gujarat Period to which the amount relates 2004-05 1991-92 41. excise duty. we are of the opinion that the Company has not defaulted in repayment of dues to a financial institution or bank or debenture holders.15.84. securities.413 14.58. or employees' state insurance.495 13.816 The Customs Act. at the year end. sales-tax. customs duty.28.682 and protection fund.217 3.435 57.05. Based on our audit procedures and as per the information and explanations given by the Management. customs duty.447 24. excise duty and cess on account of any dispute. the dues outstanding of income tax.1962 Liability on account of additional duty.79. excise duty. wealth-tax.172 8. In our opinion. the Company is not dealing in or trading in shares. (c) According to the records of the Company.) 30.11. the provisions of clause (xi) (xiv) (xii) 30 . income-tax. the Company has not granted loans and advances on the basis of security by way of pledge of shares.36.990 4. debentures and other investments. income-tax. Accordingly. sales-tax.136 3. Therefore.Commissioner Appeals Sales Tax Tribunal Sales Tax Tribunal Assistant Commissioner Appeals Sales Tax Tribunal Assistant Commissioner Appeals Sales Tax Tribunal Assistant Commissioner Appeals Sales Tax Tribunal Assistant Commissioner Appeals Joint Commissioner of Sales Tax Sales Tax Tribunal Assistant Commissioner Appeals Assistant Commissioner Appeals Custom.070 9.117 1993-94 and 1994-95 1995-96 1996-97 1997-98 1997-98 1998-99 1998-99 1999-00 1999-00 2000-01 2000-01 2000-01 2001-02 2001-02 2003-04 1998.11. service tax. wealth-tax.71. 2002 and 2005 Sales Tax Tribunal Dy. (xiii) In our opinion. cess have generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases. the provisions of clause 4(xiii) of the Companies (Auditor's Report) Order. debentures and other securities. According to the information and explanations given to us. service tax.000 2. are as follows: Forum where the dispute is pending Commissioner of Central Excise Sales Tax Tribunal (b) Name of the statute Central Excise Act.602 1. investor education and protection fund. 1944 Sales Tax Act for the following statesMaharashtra.09. Excise and Service Tax Appellate Tribunal. investor education Nature of dues Excise duty and Penalty Disallowance on account of non submission of required forms Amount (Rs. the Company is not a chit fund or a nidhi / mutual benefit fund / society.52. employees' state insurance. According to the information and explanations given to us and based on the documents and records produced to us.94. no undisputed amounts payable in respect of provident fund. cess and other undisputed statutory dues were outstanding.53. 2003 (as amended) are not applicable to the Company.99.10.690 33. sales-tax. (x) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

we report that no fraud on or by the Company has been noticed or reported during the course of our audit.4(xiv) of the Companies (Auditor's Report) Order. Batliboi & Co. 1956. For S. R. (xv) According to the information and explanations given to us. the Company has given guarantees for loans taken by subsidiaries and a joint venture from banks. Chartered Accountants per Vijay Maniar Partner Membership No. 2003 (as amended) 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. Based on information and explanations given to us by the Management. (xix) (xx) (xxi) The Company did not have any outstanding debentures during the year. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the Management.:36738 (xvi) (xvii) (xviii) The Company has not made any preferential allotment of shares to parties or Companies covered in the register maintained under section 301 of the Companies Act. term loans were applied for the purpose for which they were obtained. Place : Mumbai Date : 19th June 2009 31 . The Company has not raised any money through a public issue during the year. the terms and conditions whereof in our opinion are not prima-facie prejudicial to the interest of the Company. we report that no funds raised on short-term basis have been used for long-term investment.

557 24.12.793 1.08. APPLICATION OF FUNDS FIXED ASSETS Gross Block Less: Accumulated Depreciation Net Block Capital Work-in-Progress.44.855 61. SOURCES OF FUNDS SHAREHOLDERS’ FUNDS Share Capital Stock Options Outstanding Reserves and Surplus LOAN FUNDS Secured Loans Unsecured Loans DEFERRED TAX LIABILITY (NET) (Refer Note 3 on Schedule 17) TOTAL II.37. R.286 10.95.825 56.24.10.69.567 2.784 12.36.60.19.689 1.27.31.06.908 1.83.489 47.310 2.74.95.48.703 5 4 1.75.51.213 2.93. RANGANATHAN Chairman RAJESH SHARMA Vice Chairman & Managing Director MILIND PURANIK Company Secretary Place : Mumbai Date : 19th June 2009 32 Place : Mumbai Date : 19th June 2009 .839 2.63. : 36738 For and on behalf of the Board of Directors of ION EXCHANGE (INDIA) LIMITED G.67.459 Rupees 31st March 2008 Rupees Rupees The schedules referred to above forms an integral part of the Balance Sheet.33.58.90. As per our report of even date For S.89.311 1.81.485 1.650 1.95.08.29.088 1.40.299 5.84.574 3.85.000 74.43.769 2.340 5.01.541 65.955 15.574 23.461 64.567 13.82. BATLIBOI & CO.74.213 1.44.14.21.26. including capital advances INVESTMENTS CURRENT ASSETS.62.81.83.62.000 78.68.12.04.98.60.30.86.59.60.87.12.93.75.38.05.04.95.27.15.07.34.557 63.69.53.12. Chartered Accountants per VIJAY MANIAR Partner Membership No.824 1.29.12.441 1.110 1. S.68.28.24.86.93.294 3.73.61.852 9.79.954 2.02.62.93.94.ANNUAL REPORT 2008-09 BALANCE SHEET as at 31st March 2009 Schedules Rupees I.81.79.48.136 6.691 3.610 3.73. LOANS AND ADVANCES Inventories Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances (A) Less: CURRENT LIABILITIES AND PROVISIONS Current Liabilities Provisions (B) NET CURRENT ASSETS TOTAL Notes to Accounts 17 (A .24.688 1.17.48.500 1a 1b 2 3 54.02.56.19.29.90.95.026 7.52.04.26.12.32.86.39.94.63.500 6 7 8 9 10 37.28.732 63.635 70.65.77.00.583 63.B) 11 1.69.96.92.62.68.80.474 12.24.01.879 2.894 57.10.58.988 81.61.

357 4.61.66.103 3.540 4.687 28.000 20.000 52.786 27.63.381 1.906 80.66.084 1.470 4.42.74.45.44.34.040 4.89.78.99.696 10.381 1.26.29.21. 10 (2007-2008 : Rs.00.15.48.11 17 8.442 6.210 20.72.076 23.58.359 1.32.470 5.99.00.825 67.23.82.95.799 15.36. : 36738 For and on behalf of the Board of Directors of ION EXCHANGE (INDIA) LIMITED G.49.615 13 14 15 16 4 1.02.13.03.92.04.050 1.776 Rupees 2007 .05.26.37. As per our report of even date For S.02.05.27.404 78.608 13.163 2.113 10.83.00.100 11.26.000 39.37.12 The schedules referred to above forms an integral part of the Profit and Loss Account.057 10.05.59.04.891 4.72.PROFIT AND LOSS ACCOUNT for the year ended 31st March 2009 Schedules Rupees INCOME Sales and Services (Gross) Less: Excise Duty Recovered on Sales (Refer Note 17 on Schedule 17) Sales and Services (Net) Other Income TOTAL EXPENDITURE Cost of Goods Sold Operation and Other Expenses Interest Depreciation Less: Transfer from Revaluation Reserve TOTAL PROFIT BEFORE TAX Provision for Taxation Current Tax Deferred Tax charge (Refer Note 3 on Schedule 17) Fringe Benefit Tax PROFIT AFTER TAX Balance brought forward from Previous Year PROFIT AVAILABLE FOR APPROPRIATION APPROPRIATIONS Dividend (Refer Note 19 on Schedule 17) Tax on Dividend Proposed Final Dividend Tax on Proposed Dividend Transfer to General Reserve SURPLUS CARRIED FORWARD TO BALANCE SHEET EARNINGS PER SHARE [Nominal value of shares Rs.00.50.48.95.084 2.35.09.359 4.26.64.00.67.696 1.942 28.13 1. R.23.14.154 2.461 21.746 6.04.47.000 5. Chartered Accountants per VIJAY MANIAR Partner Membership No.52.41.30.66.76.82.684 8.95.822 43.96.545 20.00.49.67.795 9.10.472 4.2008 Rupees 5.91.57.615 21.07.50.98.98.35.79.63 8. RANGANATHAN Chairman RAJESH SHARMA Vice Chairman & Managing Director MILIND PURANIK Company Secretary Place : Mumbai Date : 19th June 2009 Place : Mumbai Date : 19th June 2009 33 .75.50.87.02.84.47.47.345 1.000 2.26.48. 10)] (Refer Note 8 on Schedule 17) Basic Diluted Notes to Accounts 12 4.686 18.90.35.48.563 3.73.26.53.504 1.591 78.930 5.56. S.12.25. BATLIBOI & CO.18.09.44.29.217 4.304 2.

210 28.600 (2007-2008 : 9.908 13.660 74.00.98.62.184 (2007-2008 : 20.13.46.65.000 15.740 4. 6.ANNUAL REPORT 2008-09 Schedules forming part of the Balance Sheet as at 31st March 2009 SCHEDULE .00.69.00.745 16.364 13. 31st March 2008 SCHEDULE . 4.914 20.914 22.878 3.000 (2007-2008 : 1.461 (2007-2008 : 1.24.950) Equity Shares have been allotted to the directors and employees under Employees Stock Options Scheme – ESOS .00.700 (2007-2008 : 6.680 28. pursuant to the Scheme of Amalgamation of the erstwhile HMIL with the Company.00.610 12. for consideration other than cash. 10 each.060 26.66.000 (2007-2008 : 10.15.2005 respectively upto 31st March 2009. fully paid-up.65.1a SHARE CAPITAL Authorised: 1.000 Rupees 31st March 2008 Rupees Of the above: 1.98.67.675) Equity Shares and 7.776 1.46.51. 20.19.1C of the Reserve Bank of India Act) Revaluation Reserve (Refer Note 1(i) on Schedule 17) Balance as at 1st April Less: Transfer to Profit and Loss Account Contingency Reserve General Reserve Balance as at 1st April Add: Transfer from Profit and Loss Account Security Premium Account Balance as at 1st April Add: Received on account of Employee Stock Option Plan Profit and Loss Account 74.69.090 74. 10 each are allotted as fully paid-up Bonus Shares by capitalisation of Revenue Reserve/ Share Premium.00.98.24.110 12.57.00.19.911) Equity Shares of Rs.610 12.004 20.65.51.76.66.364 12.56.02.68.66.485 SCHEDULE .00.50.441 Rupees Rupees Rupees 34 . Subscribed and Paid-up: 1.470 11.700) Equity Shares.07.2 RESERVES AND SURPLUS Capital Reserve Special Reserve (As per Section 45 . pursuant to a contract. 10 each.92.00.00. 12.97.69. Issued.51.1b STOCK OPTIONS OUTSTANDING (Refer Notes 1(x) and 2 on Schedule 17) Employee Stock Options Outstanding Less: Deferred Employee Compensation Outstanding 4.79.26.90.500 (2007-2008 : 6. 10.12. ESOS .364 80.57.26.01.86.582 1.00. 10 each.060 2.254 4.71.000 12.83.13. 2. Also.023 1.65. have been allotted to the shareholders of erstwhile Hydranautics Membranes India Limited (HMIL) at the meeting of Board of Directors held on 15th May 2000.110 15.2003 and ESOS .50.000 13.00.04. 3.000) Equity Shares of Rs.62.184) Equity Shares of Rs.67.600) Equity Shares of Rs.00.69.83.000) Equity Shares of Rs.364 11.2001.363 1.91. 10 each are allotted as fully paid-up.91.12.470 11. Refer Note 2 on Schedule 17.69.98.615 1.210 4.51. 5.98. fully paid-up. 9.79.689 69.65.675 (2007-2008 : 5.73.000 26.745 16.88.00.78.78.06.36.56.

85.18. 1. Goa and Ankleshwar.000 13.000 1.48.66.755)] 54. Vashi and Goa.84.62.00. 28.25.000 16. 16.000 1.000)] E. Further.05. Cash Credit from Banks Secured by hypothecation of Book Debts and Stocks pertaining to a project. Cash Credit from Banks (including working capital demand loan) Primary Security: Secured by joint hypothecation of Book Debts and Stocks. UNSECURED LOANS A.946 1. 1.09.000 (2007-2008 : Rs.67. 2.00.62.000 2. 24.35.00.93.66.95.000 61. 4.567 1.000 (2007-2008 : Rs.37.50.58.00.255 7.58.000 (2007-2008 : Rs.33.24.20. Loan from a Bank Secured by First Charge by way of mortgage of immovable property situated at Mumbai [Due within one year Rs.000)] G.000 4. Packing Credit Loan from Banks Primary Security: Secured by joint hypothecation of Book Debts and Stocks.000 14.35.00. [Due within one year Rs. 1. Fixed Deposits [Due within one year Rs.77.96. Term Loan from a Bank Secured by First Charge by way of mortgage and hypothecation of all movable and immovable properties situated at Vashi. Term Loan from a Bank Secured by First Charge by way of mortgage and hypothecation of all movable and immovable properties situated at Vashi. Vashi and Goa. 4.679 31. by way of second charge on movable and immovable properties situated at Mumbai (Office Premises). D.73. 1. [Due within one year Rs.000)] C. Goa and Ankleshwar.19. 2.10.000 3.000)] F.00.00.92. both present and future.20.825 Rupees 31st March 2008 Rupees 35 .000 (2007-2008 : Rs. Further.00. Collateral Security: By way of first charge on all immovable and movable properties and plant and machinery situated at Hosur and Patancheru.000 9.50.00.66. by way of second charge on movable and immovable properties situated at Mumbai (Office Premises).00.05.66.14. 1. [Due within one year Rs. Collateral Security: By way of first charge on all immovable and movable properties and plant and machinery situated at Hosur and Patancheru.000 6.94.Schedules forming part of the Balance Sheet as at 31st March 2009 SCHEDULE .808 2. Loan from Banks [Due within one year Rs.13. 1.87.87. C.50.3 LOAN FUNDS 1.46.000)] 23.000)] B.07.186 19.90.56.85.330 (2007-2008 : Rs.66. Inter Corporate Deposit [Due within one year Rs. Nil (2007-2008 : Rs.442 19. Vehicle finance from Banks Secured by hypothecation of vehicles.000 4.16.66.96.41.000 (2007-2008 : Rs.01.76. SECURED LOANS A.87.05.76.574 2.000 6. both present and future. B.05.00.96.

11.07.19.45.48.48.34.442 2.593 1. - Rs.39.12.51.88.71.09.500) being the value of 70 Shares (unquoted) of Rs.00.00. 2. 3.942 5.593 1.16.069 14. Fixture and Office Equipments Previous Year Capital Work-In-Progress (Refer Note 4 below) (Including advance on capital account Rs.12.48.53.09.353 7.011 21.89. Nil (2007-2008 : Rs.60. B-14) at Hosur. 4.188 1.44.583 56.794 13. 67.772 35.ANNUAL REPORT 2008-09 36 (in Rupees) Gross Block As at 1st April 2008 87.83.91.08.25. 25.18.91.08.150 21.21.98.277 30.22.58.179 32.40.000) in respect of premise at Mumbai.87.046 1.372 87.210 3.236 16.923 2.538 38.14.68.63.81.594 (2007-2008 : Rs.85.99.62.05.41.87.93.30.52.569 22.130 13.189 24.72.20.62.825 Additions during the year Deductions/ Adjustments during the year As at 31st March 2009 As at 1st April 2008 Depreciation during the year Deductions/ Adjustments during the year As at 31st March 2009 As at 31st March 2009 Depreciation Net Block As at 31st March 2008 87.990 23.56.208 (2007-2008 : Rs.08.80.399 69.767 14.04.79.21.787) Depreciation for the year Rs.283 1.47.133 1.19. 2 and 3 below) Plant and Machinery (including Electrical Installation) Vehicles Furniture.44.4 FIXED ASSETS Particulars Land (Freehold) Land (Leasehold) Buildings on Leasehold Land Buildings on Freehold Land (Refer Notes 1.33.55. B-16 and B-17) and 1 MIG flat (No.88.992 52.32.92.54.68.88.49.40.095 63.32.137 2. 250) being the value of 5 Shares (unquoted) of Rs.593 2. 250 (2007-2008 : Rs.78.38.39. Includes Ownership blocks.87. 2.15.26.838 14.10.48.01.610) Notes: 1.06. 50 each.62.66.33.03.481) paid for acquiring furnished office premises.44.08.77.89.158 (2007-2008 : Rs. 73.27.55.81.23.968 3.821 21.797 23.541 65.55.057 6.629 15. Includes Ownership blocks comprising of 2 LIG flats (Nos. fully paid up in Usha Milan Co-operative Society Limited.01.400 58.30.807 23.03.63. 50 each.106 66.789 17. 20.286 1.430 2. Capital Work-in-Progress includes amount of Rs.752) .01.479 4.26.88.36.318 2.37. the Society formation of which is in progress. 3.492 1.539) Accumulated depreciation Rs.19.80.62.44.311 Schedules forming part of the Balance Sheet as at 31st March 2009 SCHEDULE .256 26. 25.23.290 28.396 15.852 39.583 5.481 (2007-2008 : Rs.96.61. the cost of which includes: - Rs.902 2.54.539 (2007-2008 : Rs.84.894 96.62.62.88.461 64.184 7. 3.179 55.130 72.89.67. the ownership of which is under legal dispute and Rs.142 63. 2.08.61.66. for which transfer formalities are in progress.87.43. 22.652 63.02.519 1.158) Net book value Rs.03.92.39.98.61.894 53.945 (2007-2008 : Rs. 5.15.72.441 49.01.01.42.557 57.16.73. 3.610 2.33.95.77. Buildings on Freehold Land includes buildings given on operating lease : Gross Book Value Rs.33. fully paid up in Sunrise Co-operative Housing Society Limited. 6.67. 60. Includes Ownership blocks acquired at Mumbai.91.04. 3.593 87.062 1.00.74.030 2.33.109 1.380 3.15.129 7.732 57.77.687 1.80.83.525 96.83.43.500 (2007-2008 : Rs.80.66. the title deeds of which are awaited from authorities.108 19.400 35.631 14. 6.

500) Equity Shares of Rs.76.000)] Shares in IEI Mansel Services Limited 15.95.63.89.20. 1.000 1.000 6. 10 each. fully paid-up Shares in Ion Exchange Enviro Farms Limited (Refer Note 10 on Schedule 17) 5.50.000 10.50. TRADE AND UNQUOTED Shares in Ion Exchange Services Limited 2.000 2.000) Equity Shares of Rs.948 20.000 (2007-2008 : 1.000 (2007-2008 : 15.111 43.000) Equity Shares of Rs.000 (2007-2008 : 2. fully paid-up [Net of provision for diminution in the value: Rs.000 (2007-2008 : 62.76.40.000 (2007-2008 : 1. fully paid-up Shares in Global Composites & Structurals Limited 2.79.38.000 (2007-2008 : Rs.00.33.000 13.000 (2007-2008 : 2.000 51.24.94.Long Term (at cost) A. 10 each.76. fully paid-up Shares in IEK Plastics Limited 6.000 6.000 23. 10 each.79. fully paid-up [Certificates for 3.19.30. 10 each.10. 60.00. 10 each.800 7.60.000 Rupees 31st March 2008 Rupees 1.000) Equity Shares are physically not available] Shares in Ion Exchange Asia Pacific Pte.000 (2007-2008 : 6.20. Oman 90.000 (2007-2008 : 5.00.10.875 (2007-2008 : 2.000) Equity Shares of Bangladeshi Taka 100 each. fully paid-up Shares in Ion Exchange Infrastructure Limited 5.60.00.000 (2007-2008 : 90.77.000 10. 1. 10 each.000 1.000) Equity Shares of Singapore Dollar 1 each. fully paid-up B.70.000) Equity Shares of Rs.00.000 23.70. fully paid-up Share in Aquanomics Systems Limited 2. 10 each. 10 each.000) Equity Shares of Rs.948 37 .37.545 - - 2. fully paid-up Shares in Ion Exchange & Company LLC. 10 each.70.875) Equity Shares of Rs.000) Equity Shares of Malaysian Ringgit 1 each.634 18.000 1.Schedules forming part of the Balance Sheet as at 31st March 2009 SCHEDULE . fully paid-up Shares in Ion Exchange Environment Management (BD) Limited 10. NON-TRADE AND UNQUOTED 6 Year National Savings Certificates C.06.50.30.853 18.000 10.76.948 1. fully paid-up Shares in Astha Technical Services Limited 1. 10 each.50. 60. fully paid-up Shares in IEI Environmental Management (M) Sdn. USA 1.000) Equity Shares of Rs.00.00.000 (2007-2008 : 1.500 (2007-2008 : 13.95. fully paid-up Shares in Watercare Investments (India) Limited 17.94.000 (2007-2008 : 3.764 42.00.000 (2007-2008 : 10.800 7.000) Equity Shares of Rs.60.00. Bhd.000 54.38. fully paid-up Shares in Total Water Management Services (India) Limited 24.70.5 INVESTMENTS .05.000 25.89. IN SUBSIDIARY COMPANIES (UNQUOTED) Shares in Aqua Investments (India) Limited 17.77. 1.00.000 7.000 1.000 2.000 1.111 43.000 (2007-2008 : Rs.05.00.00.000 54.10. fully paid-up Shares in Ion Exchange LLC. fully paid-up [Net of provision for diminution in the value: Rs.000 (2007-2008 : 17.000) Equity Shares of Rs.000 (2007-2008 : 2.948 20.00.55.000 (2007-2008 : 17.000 9.50.000 (2007-2008 : 24.000) Equity Shares of Rs.000 1.00.55.73.000) Equity Shares of Rs.000) Equity Shares of United State Dollar 1 each. fully paid-up Shares in Ion Exchange Waterleau Limited 13.40.000 10.000) Equity Shares of Omani Rial 1 each.00.400) Equity Shares of Rs.50.60. 10 each.70.00.30. Limited 4.000 1.000)] Carried Forward 9.33.47.000 1.47. 10 each.99.

000) Equity Shares of Rs.04.500 (2007-2008 : 2.55.500 37.10. 100 each. fully paid-up [Net of provision for diminution in the value Rs.88.948 1.47.000 35.738 1.000 36.175 (2007-2008 : 1.25% Preference Shares of Rs.056 47. fully paid-up Rupees 2.17.60.40. 3.84.83.50.299) Bonds of Rs.832 7.08. 40.927 1. fully paid-up Shares of Jain Irrigation Systems Limited 14 (2007-2008 : 14) Equity Shares of Rs.77. 10 each.37.50. 54.25.500 (2007-2008 : 10.000 50.27.98.81.954 30.241) SCHEDULE .088 2. fully paid-up Shares in HMG Industries Limited 75. 10 each.200 2.40.948 1.000 each (2007-2008 : Rs. 10 each.000 2.500 2.82.6 INVENTORIES (Refer Notes 1 (iv) and (v) on Schedule 17) Raw Materials and Components Raw Material-in-Transit Work-in-Progress Finished Goods Finished Goods-in-Transit Stores and Spare Parts Contract Work-in-Progress 10.000 2.605 10.29.500) Equity Shares of Rs.000) Units of Rs.000 (2007-2008 : 20.80.99.24.500 4.20. 10 each.078 8.50.05.14.800 (2007-2008 : Rs.16.05.175) Equity Shares of Rs.178 (2007-2008 : Rs. 100 each. 1. fully paid-up Shares in Bharuch Enviro Infrastructure Limited 10.00.800)] Shares of Sterlite Technologies Limited 1. 5 each. 10 each.79.66.793 38 .06.200 75. fully paid-up [All Units earmarked under Rule 3A of Companies (Acceptance of Deposits) Rules.00.80.06. 10 each. 70.73.000) Equity Shares of Rs.) Brought Forward Shares in Patancheru Enviro-tech Limited 113 (2007-2008 : 113) Equity Shares of Rs.02.60. fully paid-up Shares of Global Procurement Consultants Limited 20.000 2.938 3.5 (Contd.000 (2007-2008 : 75.706 6.94.900 Aggregate value of Unquoted Investments (A+B+C) D.146 9.45. NON-TRADE AND QUOTED 6.25% Bonds of Gujarat Urja Vikas Nigam Limited 6 (2007-2008 : 6) Bonds of Rs.23.000 2.246 10.100 (2007-2008 : 8.15.05.623 26.52. fully paid-up Aggregate value of Quoted Investments (D) TOTAL (A+B+C+D) Market value of Quoted Investments as on 31st March 2009 is Rs.000) 14. 3.000 50.842 - 75.64 Bonds Nil (2007-2008 : 26.130 1.097 (2007-2008 : Rs.130 1.19.942 1.10.29.00. 74.769 17.000 546 2.52.000 (2007-2008 : 5. fully paid-up [Net of provision for diminution in the value Rs.74.86.000 8.15.30.078 27.000)] Shares in Bharuch Eco-Aqua Infrastructure Limited 3.43.17.055 2.64.000 (2007-2008 : Rs.75.05.16.75% Tax Free US . 1. 74.178)] Shares of Canara Bank 8. 18. fully paid-up 11.ANNUAL REPORT 2008-09 Schedules forming part of the Balance Sheet as at 31st March 2009 SCHEDULE .489 1.100) Equity Shares of Rs.47.000 each).966 1.000 546 2.61. fully paid-up [Net of provision for diminution in the value Rs.83. 1975] Units of Master Plus of Unit Trust of India 5.51. 10 each.81.757 2.000 31st March 2008 Rupees 1.236 3.

Includes Rs.59.53. 26. considered doubtful: Debts outstanding over six months Less: Provision for Doubtful Debts 59.299 86. Includes Rs.421 86.11.95.29.321) Retention Money not due.119 4.299 (Refer Note 7 on Schedule 17 for dues from Companies under the same Management) Notes: 1.29.75.416 31.77.67.60.87.450) SCHEDULE .586 5.02.267 1.026 1.92.01.05.720 1.58.7 SUNDRY DEBTORS Unsecured.988 17.61.667 (2007-2008 : Rs.64.11.95.54.042 15.21.Schedules forming part of the Balance Sheet as at 31st March 2009 31st March 2008 SCHEDULE .84.635 11.24.994 59.12.9 OTHER CURRENT ASSETS Interest accrued but not due Rent receivable Considered doubtful Less: Provision for Doubtful Rent 17.23.61.077 2.37.09. 20. 4.87.12.53.36.65. considered good: Debts outstanding over six months (Refer Note 1 below) Other Debts (Refer Note 2 below) Unsecured. 5.93.895 (2007-2008 : USD 3. 5.18.868 1. 4.945 46.59.011 24.03.233 4.931 22.05.453 1.929 (2007-2008 : Rs.408 3.70.96.16.500 7. 8.35.05.988 15.05.053) Retention Money not due. 59.95.98.011 17.15. 1975] On Margin Money Account On Unclaimed Dividend Account On Unclaimed Interest on Fixed Deposits Balance with Non-Scheduled Bank: On Current Account (*) (*) Balance with Non-Scheduled Bank maintained with National Bank of Dubai: Rs.59.026 Rupees Rupees Rupees SCHEDULE .994 1.846 2. 2.158 1.92.011 17.30.000 11.88.70.10.137 (2007-2008 : Rs.994 59.12.49.586 (2007-2008 : Rs.500) Maximum amount outstanding during the year Rs.61.635 24.011 15.00.95.16.63.58.8 CASH AND BANK BALANCES Cash on Hand Balance with Scheduled Banks: On Current Accounts On Exchange Earner’s Foreign Currency Accounts [USD 4.000 2.426)] On Deposit Account [Earmarked under Rule 3A of Companies (Acceptances of Deposits) Rules.955 39 .00.06.02.98.05.43.05.79.74.994 2.847 11.61.48.557 3.

989 Balances with Excise Authorities Inter Corporate Deposits Considered doubtful 57.737 4.500 (2007-2008 : Rs.58.500 (2007-2008 : Rs.94.21.73. 24.50.63.37.01.15.336 3.714 2.07.500 20.66.000 5.488 47.31.ANNUAL REPORT 2008-09 Schedules forming part of the Balance Sheet as at 31st March 2009 31st March 2008 SCHEDULE .73.73.07.032 2.54.714 2. Considered good: Advances recoverable in cash or in kind or for value to be received B.290 57.73.94. 24.714 44.05.07.37.336 47.290 57.58.65.53.73.936 (2007-2008 : Rs. 17.27.28.934 6.61. Unsecured.68.42.07.73.119 3.346 3.82.000)] 40 .290 81.73.15.78.26.500 3.82.54.000 4. 24.714 44.50.71.832 3.27.346 53.989 44.47.964 2.09. Considered good.691 57.002 16.53.81.65.936)] Share Application Money (towards investment in subsidiary company) Unamortized Premium on Forward Contracts Tender.26.89.94.488 Advance Tax and Tax Deducted at Source [Net of provision for taxation aggregating Rs.462 2.53.71.78. Security and other Deposits Considered good Considered doubtful 2.770 Rupees Rupees Rupees Less: Provision for Doubtful Advances Less: Provision for Doubtful Deposits Less: Provision for Doubtful Inter Corporate Deposits Note: Advances recoverable in cash or kind or for value to be received include: Loans due from IEI Shareholding Trusts Rs.934 44.31.294 2.45. 24.81.93.290 70.93. Secured.26.47.489 53.94. 18.500) [Maximum amount outstanding Rs.82.42.10 LOANS AND ADVANCES A. unless otherwise stated: Loans and Advances to subsidiaries (Refer Notes 6 (IV) and 10 on Schedule 17) Advances recoverable in cash or in kind or for value to be received Considered good (Refer Note below and Note 9 on Schedule 17) Considered doubtful 3.667 3.04.

084 5.29.44.73.39. Current Liabilities: Sundry Creditors From Subsidiary Companies Micro and Small Enterprises (Refer Note 23 on Schedule 17) Other than Micro and Small Enterprises 28.95.822 43.68.29.45.093 (2007-2008 : Rs.858 1.38.26.94.37.21.907 3.76.25.73.87.396 1.53.42.62.92.164 Acceptances Deposits Commitment Deposit Under Employees Stock Option Scheme (Refer Note 2 on Schedule 17) Advance from Customers and Progress Claims [Includes advances in respect of engineering contracts Rs.931 22.12.282 (2007-2008 : Rs.535 16.650 1.642 4. 41 .35.048 25.68.82.003 1.597 1. 18.45.91.70.824 16.600 Other Liabilities Interest accrued but not due Investor Education and Protection Fund shall be credited by the following amounts namely * Unclaimed Dividends Unclaimed Interest on Fixed Deposits Unclaimed Matured Deposits 15.34.57.61.87. Provisions: Provision for Fringe Benefit Tax [Net of Advance Tax Rs. 2.44.70.42.38.416 31.000 81.02. 4.76.07.813)] TOTAL (A) B.84.340 1.935 36.089 5.14.04.012 24.80.084 6.88.Schedules forming part of the Balance Sheet as at 31st March 2009 31st March 2008 SCHEDULE .11 CURRENT LIABILITIES AND PROVISIONS A.56.45.393 Rupees Rupees Rupees 1.13.46.28.15.80.93.52.00.081 30.12.61.52.40. there are no amounts due to be credited to Investor Education and Protection Fund.25.11.598 1.447)] Provision for Leave Encashment Proposed Dividend Tax on Proposed Dividend TOTAL (B) TOTAL (A + B) 67.56.22.310 2.553 2.33.461 21.27.119 36.43.783 6.85.66.136 * As at 31st March 2009.74.688 1.63.548 20. 21.233 44.396 1.000 79.75.60.33.38.95.229 2.328 11.53.01.324 1.40.

40.16.446 4.80.421)] Interest from Banks [Tax deducted at source Rs.64.102)] Dividend Income (Refer Note below) Amount set aside for liabilities.17.75.83.76.72.86. 4.30.32.80.941 9.908 39.13. 12.015 6.31.918 (2007-2008 : Rs.459 10.02.36.20.50. 6.942 2.54.93. 9.39.81. written back Interest from Subsidiary [Tax deducted at source Rs.23. 3.14 COST OF GOODS SOLD A.42.314 70.00.375)] Commission Management Fees [Tax deducted at source Rs.98.48.90.396 17.65. 19.44.96.81.985)] 4.33.12 SALES AND SERVICES Sales (Refer Note 17 on Schedule 17) [Tax deducted at source Rs.41.71.605 10.746 11.052 19.02. no longer required.04.19.942 2.27.482 31.38.23.803 16.47.67.109 2. 15.23.150 69.72.675 1.357 5.04.832 7.47.72.36.30.651 3.213 2.95.64.706 6.14.00.900 17.10.693 3.876 (2007-2008 : Rs.97. 1.625 (2007-2008 : Rs.756 (2007-2008 : Rs. 36.066 2.25.52.44.599 4.80.33.05.073 9.03.88.927 1.536 2.41.2008 Rupees SCHEDULE .20.500 14. 50. 5.52.91.706 6.345 2.932 2.917 5.786 Rupees 2007 .16.19.98. C.98.738 2.16.08.686 SCHEDULE .234 Cost of Goods Sold (A + B .682)] Interest from Others [Tax deducted at source Rs.17. 51.88.269 .40.77.504 (2007-2008 : Rs.50.82. 14.69.02.862 3. B.61.34.81.75.028 4.113 (2007-2008 : Rs.13 OTHER INCOME Scrap Sales Rent [Tax deducted at source Rs.81.730) 42 2.788 17.75.536 91.45.070 (2007-2008 : Rs.86.78.938 20. 69.59.020 60.77.52.750) received from trade investments.21.C) * Includes direct expenses incurred on contracts Rs.770 1.22.32.343 69. 31.359 1.81.065 (2007-2008 : Rs.88.66.832 7.878 21.190 16.89.00.359 55.056)] Exchange Gain (Net) Miscellaneous Income Write-back of diminution in value of Investments (Net) Note: Includes Rs.40. 8.34.056 12.179 3.35.82.489 6. Raw Materials and Components Consumed* Purchase of Traded Goods Increase/(Decrease) in Stocks: Closing Stocks: Work-in-Progress Finished Goods Finished Goods-in-Transit Contract Work-in-Progress Less: Opening Stocks: Work-in-Progress Finished Goods Finished Goods-in-Transit Contract Work-in-Progress 1.41.27.056 12.674 82. 56.31.85.47.39.50.12.62.ANNUAL REPORT 2008-09 Schedules forming part of the Profit and Loss Account for the year ended 31st March 2009 SCHEDULE .

807 1.66.06.10.930 2.58.000 2.71.60.18.42.78.59.29.945 1.79.20.158 6.94.14.47.521 1.18. Wages and Bonus Contribution to Provident and Other Funds Staff Welfare Employee Compensation Expense 34.69.Plant and Machinery .60.65.Buildings .10.01.173 9.62.23.23.43.736 2.98.37.12.41.17.06.63.907 5.61.209 24.83.074 6.158 3.67.34.000 2.84.540 43 .374 Stores and Spare Parts consumed Power and Fuel Repairs and Maintenance .32.649 16.70.79.684 1.447 9.556 22.006 3.78.16 INTEREST On Fixed Loans On Others 3.074 10.60.969 1.98.24.05.89.593 1.96.539 1.16.23.24.92.511 12.016 1.32.58.26.07.19.968 6.99.667 1.61.908 6.16.04.87.56.02.21.28.31.37.022 10.04.969 1.54.557 51.15 OPERATION AND OTHER EXPENSES (Refer Note 11 on Schedule 17) Employee costs (Refer Note 22 on Schedule 17) Salaries.89.67.15.77.708 8.99.698 1.11.337 22.850 13.26.25.Schedules forming part of the Profit and Loss Account for the year ended 31st March 2009 2007 .79.77.72.870 1.585 2.66.240 11.68.26.382 4.612 12.17.341 3.2008 SCHEDULE .01.249 16.77.52.47.92.072 28.71.248 2.Others Rent (Net of recoveries) Rates and Taxes Insurance (Net of recoveries) Travelling and Conveyance Excise Duty (Net of recoveries) (Refer Note 17 on Schedule 17) Freight (Net of recoveries) Packing (Net of recoveries) Advertisement and Publicity Commission to Agents and Discount Legal and Professional Charges Telephone and Telex Bad Debts written off Provision for doubtful advances and deposits Auditors’ Remuneration (Refer Note 16 on Schedule 17) Directors’ Fees Bank Charges Loss on Assets sold/discarded (Net) Backcharges on Contracts (Refer Note 20 on Schedule 17) Establishment and Other Miscellaneous Expenses 40.98.925 21.74.96.442 Rupees Rupees Rupees SCHEDULE .162 1.715 1.50.91.98.42.61.34.03.89.213 3.121 1.161 6.27.62.288 3.133 4.64.390 3.817 38.284 41.594 5.36.69.67.087 45.23.35.95.000 24.813 28.26.000 2.68.092 2.58.29.10.246 1.057 32.57.

Significant Accounting Policies: The financial statements have been prepared under historical cost convention on accrual basis except in case of assets for which revaluation is carried out. 44 . Foreign currency monetary items are reported at the year end rates. 1956 of India (the “Act”). The incremental depreciation attributable to the revalued amount is transferred from the Revaluation Reserve to the Profit and Loss Account. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change.17 NOTES TO ACCOUNTS 1. The accounting policies have been consistently applied by the Company. or reported in previous financial statements. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. is provided to the extent the carrying amount of assets exceeds their recoverable amount. 2006 (as amended) and the relevant provisions of the Companies Act. The financial statements comply in all material respects with the Notified Accounting Standards by Companies Accounting Standard Rules. willing parties. Leasehold land are amortized over the period of lease.ANNUAL REPORT 2008-09 Schedules forming part of the Balance Sheet as at 31st March 2009 and Profit and Loss Account for the year ended on that date SCHEDULE . Cost comprises of the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. None of the forward exchange contracts are taken for trading or speculation purpose.5 20 20 10 15 20 Depreciation on additions made since April 1994 has been made on a pro-rata basis at the rates as prescribed in Schedule XIV to the Act on straight-line basis or as per the useful lives estimated by the Management. on straight-line basis for assets acquired upto 31st March 1994: Assets Buildings – Other than Factory Buildings – Factory Buildings Plant and Machinery Effluent Treatment Plants Moulds and Dies Furniture and Fixtures Office Equipments Vehicles Depreciation rate applied % 5 5 10/12. Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year. Depreciation is provided at the following rates which is the useful lives estimated by the Management. are recognized as income or as expenses in the year in which they arise. Exchange differences arising on reinstatement of foreign currency monetary items are recognized as income or expense in the Profit and Loss Account. Recoverable amount is the higher of an asset’s net selling price and its value in use. less the costs of disposal. Site equipments are depreciated over 3 years. (i) Fixed Assets.000 are depreciated at 100% in the year of acquisition. Impairment loss. All assets individually costing less than Rs. Depreciation and Impairment: Fixed assets acquired before 30th April 1986 are stated at revalued amounts while assets acquired subsequent to that date are stated at historical cost of acquisition less accumulated depreciation and impairment losses. 5. Borrowing Cost relating to acquisition of fixed assets which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year. if any. Carrying amount of assets are reviewed at each Balance Sheet date for any indication of impairment. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at end of its useful life. Net selling price is the amount obtainable from sale of an asset in an arm’s length transaction between knowledgeable. whichever is higher. The premium or discount arising at the inception of forward exchange contracts is amortized as income or expense over the life of the contract. (ii) Foreign Currency Transaction: Transactions in foreign currencies are recognized at exchange rates prevailing on the transaction dates. if any.

Foreseeable losses. execution of which is spread over different accounting periods is recognized as revenue and expense respectively by reference to the basis of percentage of completion method of the project at the Balance Sheet date. if any. Cost for Raw Materials. The actuarial valuation is done as per Projected Unit Credit method made at the end of each financial year. Net realizable value is the estimated selling price in the ordinary course of business. Sales are accounted for inclusive of Excise duty but excluding Sales tax. Determination of revenues under the percentage of completion method by the Company is based on estimates (some of which are technical in nature) concerning the percentage of completion.17 (Contd. Research Costs are expensed as incurred. The Company does not have outflow on account of warranty given to customers as all the outsourced work has a back to back guarantee. provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. cost of conversion. Short Term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered. (iv) Inventories: Inventories are valued at lower of Cost and Net Realisable Value. (vii) Retirement & Other Employee Benefits : a) Retirement Benefits in the form of Provident Fund and Superannuation Fund are defined contribution schemes and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due. materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost for Finished Goods includes raw material cost. Long Term compensated absences are provided for based on actuarial valuation. Contract cost that has been incurred and relates to the future activity of the contract are recognized as Contract Work-in-Progress as it is probable that it will be recovered from the customer. Contract Revenue and Contract Costs in respect of construction contracts.) (iii) Investments: Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. (v) Accounting for CENVAT: The Company follows on a consistent basis. Development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be regarded as assured. Costs of traded goods is computed on First-in-First-out basis. which are based on technical estimates. However. less estimated costs of completion and estimated costs necessary to make the sale. Actuarial gains/losses are immediately taken to Profit and Loss Account and are not deferred. expected revenue from the contract and the foreseeable losses of completion.SCHEDULE . There are no other obligations other than the contribution payable to the respective Trusts. cost of conversion and other costs incurred in bringing the inventories to their present location and condition. are provided in the accounts irrespective of the work done. Sale of goods is recognized when the property and all significant risks and reward of ownership is transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. costs to completion. (vi) Research and Development: Capital expenditure on Research and Development is treated in the same manner as fixed assets. Long-term investments are carried at cost. Income from commission and management fees is recognized on completion of services. However. 45 . purchases and consumption. Gratuity Liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on Projected Unit Credit method made at the end of each financial year. other costs incurred in bringing the inventories to their present location/condition and excise duty. Cost for Work-in-Progress includes raw material cost. Income from Services: Revenue from maintenance contracts are recognized pro-rata over the period of the contract as and when services are rendered. Stores and Spares are computed on a weighted average basis. b) c) d) (viii) Revenue Recognition: Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. All other investments are classified as long-term investments. the “non-inclusive” method of accounting for CENVAT under Central Excise Act with regard to its inventories.

that sufficient future taxable income will be available against which such deferred tax assets can be realized. on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits. the differing risks and returns. 1999 and guidance note on Accounting for Employee Share-based Payments. (xi) Provisions and Contingent Liabilities: Provisions are recognized when the Company has a present obligation as a result of past event for which it is probable that an outflow of resources will be required and a reliable estimate can be made of the amount of obligation. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates (without discounting to its present value). Deferred tax is recognized. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. subject to the consideration of prudence. issued by the Institute of Chartered Accountants of India. the organization structure and the internal financial reporting system. Dividend from subsidiaries is recognized even if same are declared after the Balance Sheet date but pertains to period on or before the date of Balance Sheet as per the requirement of schedule VI of the Companies Act. Deferred tax is measured on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. The unamortized portion of the cost is shown under Stock Options Outstanding. or a reliable estimate of the amount of the obligation cannot be made. (ix) Taxation: a) b) Provision for current taxation and Fringe Benefit tax has been made in accordance with the Indian Income tax laws prevailing for the relevant assessment years.) Interest: Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. Compensation expense is amortized over the vesting period of the option on a straight-line basis. that sufficient future taxable income will be available against which deferred tax asset can be realized. (xiii) Earnings Per Share: Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain. The analysis of geographical segments is based on the areas in which major operating divisions of the Company operate. (x) Employee Stock Option Scheme: Measurement and disclosure of the employee share-based payment plans is done in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines. 46 . (xii) Derivative Instruments: The Company uses derivative financial instruments such as forward exchange contracts to hedge its risk associated with foreign currency fluctuations. 1956. (xiv) Segments Reporting Policis: Identification of segments: Segments are identified and reported taking into account the nature of products and services. At each Balance Sheet date. Accounting policy for forward exchange contracts is given in 1(ii). If the Company has unabsorbed depreciation or carry forward losses. The Company measures compensation cost relating to employee stock options using the Intrinsic Value method. Contingent liability is disclosed for a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Dividends: Revenue is recognized when the shareholders’ right to receive payment is established by the Balance Sheet date. as the case may be.17 (Contd. For the purpose of calculating diluted earnings per share. The carrying amount of deferred tax assets is reviewed at each Balance Sheet date.ANNUAL REPORT 2008-09 SCHEDULE . The Company writes down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain. as the case may be. the Company re-assesses unrecognized deferred tax assets.

As in the case of First grant. As in the case of First and Second grant. Pursuant to this. Allocation of common costs: Common allocable costs are allocated to each segment according to the turnover of the respective segments. Pursuant to this. Under the scheme 25% of these options shall vest and become exercisable in April every year. are recognized as an expense in the Profit and Loss Account. Under the scheme. granted 3. 25% of the granted options shall vest and become exercisable in July every year. the Company has introduced ESOS for its directors and employees. Mumbai for 13 weeks prior to the date of the grant.84. actual results could differ from these estimates. 19. further granted 5. The vested options are exercisable upto 8th August 2010.00 per share. the Third and Fourth 25% (in all 50%) of the options vested in October 2006. brokerage costs. The vested options are exercisable upto 20th July 2009. Although these estimates are based upon Management’s best knowledge of current events and actions.SCHEDULE . Mumbai for 13 weeks prior to the date of the grant. The ESOS Compensation Committee formed for implementation of the scheme.36. The Employee Stock Compensation Committee in its meeting on 8th August 2002. Employee Stock Option Scheme (ESOS): ESOS 2001 Pursuant to the resolution passed by the shareholders at the Annual General Meeting held on 27th September 2000.) Inter-segment Transfers: The Company accounts for inter-segment sales and transfers at competitive prices.00 per share. 94. Mumbai prior to the date of the grant. 25% of these options shall vest and become exercisable in June every year. ESOS 2003 Pursuant to the resolution passed by the shareholders at the Annual General Meeting held on 25th September 2003. Costs.500 options to eligible directors and employees of the Company at a price of Rs.000 options to directors and other employees at a price of Rs. Lease income is recognized in the Profit and Loss Account on a straight-line basis over the lease term. which constituted a discount of approximately 25% to the price as calculated on the basis of average of two weeks high and low of the share traded on The Stock Exchange. The Employee Stock Compensation Committee in its meeting held on 5th June 2007. Segment policies: The Company prepares its segment information in conformity with the Accounting policies adopted for preparing and presenting the financial statements of the Company as a whole. Fourth 25% of the options will vest in June 2012. in its meeting held on 20th July 2001. which constituted a discount of approximately 25% to the price as calculated on the basis of average of weekly closing price on The Stock Exchange. 47 . 19. which constituted a discount of approximately 25% to the price as calculated on the basis of average of weekly closing price on The Stock Exchange. Pursuant to this. including depreciation. pursuant to Shareholders’ approval at the Annual General Meeting held on 4th August 2006. Further. 12. the Employee Stock Compensation Committee decided to advance the date of vesting of balance 50% option. 25% of these options shall vest and become exercisable in August every year. The vested options are exercisable upto 5th June 2016. Unallocated costs: The unallocated segment includes general corporate income and expense items which are not allocated to any business segment. (xvi) Leases: Assets given on operating leases by the Company are included in fixed assets. Mumbai for 13 weeks prior to the date of the grant. (xv) Cash and Cash Equivalents : Cash and Cash equivalents in the Balance Sheet comprise Cash at Bank and in Hand and short-term investments with an original maturity of three months or less. Fourth 25% of the options vested in July 2005.50. Pursuant to this. Pursuant to this. the Employee Stock Compensation Committee in its meeting on 2nd April 2004 implemented the Second Employees Stock Options Scheme (ESOS 2003) and granted 6. Initial direct costs such as legal costs. are classified as operating leases. Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item.00. the Fourth 25% of the options vested in August 2006. Operating lease payments are recognized as an expense in the Profit and Loss Account on a straight-line basis over the lease term. 2. further granted 3. The vested options are exercisable upto 26th October 2010. etc.000 options to directors and other employees at a price of Rs. the Second 25% of the options vested in April 2006.50 per share which constituted a discount of approximately 25% to the price as calculated on the basis of average of weekly closing price on The Stock Exchange.100 options to directors and other employees at a price of Rs. (xvii) Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end.17 (Contd.00 per share. are recognized immediately in the Profit and Loss Account.

650 (800) 2.950) 2. the options shall vest after one year from the date of the grant.85.9% 1 2 7.750 3. the options shall vest after one year from the date of the grant. the Fourth 25% of the options will vest in June 2012. 58.50. further granted 3. As in the case of First grant.250) 4.050) 2.950 (3.79. 48 .048 (2007–2008: Rs.000) 17.00. 2nd & 3rd Grant) (1st & 2nd Grant) (1st & 2nd Grant) Options outstanding as at 31st March 2008 Granted during the year Lapsed during the year Exercised/ Allotted during the year Outstanding as at 31st March 2009 Exercisable as at 31st March 2009 Figures in bracket denote previous year figures.000 (6. Under the scheme.550) 98.00.5% 20% ESOS Scheme 2003 2nd Grant 94 117. As at 31st March 2009.14.550 (6. The Black Scholes valuation model has been used for computing the weighted average fair value considering the following inputs : Particulars Exercise Price Weighted Average Share Price Expected Volatility * Life of the options granted (Vesting and exercise period) in years Expected Dividends Average risk-free interest rate Expected dividend rate ESOS Scheme 2001 3rd Grant 94 117.00 per share.000 options to directors and others employees at a price of Rs.82 63.500 (3.) The Employee Stock Compensation Committee in its meeting held on 5th June 2007.750 (9.00.550 (16.000 12.81.000 35.300 (2.17 (Contd.00.5% 20% ESOS Scheme 2008 1st Grant 58. The method of settlement of the above options is equity settled.65.82 63.65. historical volatility includes early years of the Company’s life.325) 3. which constituted a discount of approximately 25% of the closing market price prior to the date of the grant.5% 20% 3.000 options to directors and other employees at a price of Rs.60. which constituted a discount of approximately 25% of the closing market price prior to the date of the grant. 11.000 3.64.82 63. As in the case of the First grant. 54.450) (3.ANNUAL REPORT 2008-09 SCHEDULE .02. ESOS 2003 and ESOS 2005. Details of options granted are as follows: Particulars ESOS Schemes 2001 2003 2005 (1st.250 (3.000 options to directors and other employees at a price of Rs.00. 4. further granted 5. The Employee Stock Compensation Committee in its meeting held on 24th July 2006.64. The vested options are exercisable upto 29th March 2011. The vested options are exercisable upto 5th June 2016.550 (6. 25% of these options shall vest and become exercisable in June every year.650) 72.00 per share.97.50 per share. the Company expects the volatility of its share price to reduce as it matures. Under the scheme.00.000) 12.250 * The expected volatility was determined based on historical volatility data. Mumbai for 13 weeks prior to the date of the grant.81.950) 20.20 per share which constituted a discount of approximately 25% of the closing market price prior to the date of the grant.000 Total 9.60. the Employee Stock Compensation Committee at its meeting on 29th March 2006 implemented the Third Employees Stock Options Scheme (ESOS 2005) and granted 5.250 (10.00.9% 4 2 7.325) 12.000 (3. 94. The vested options are exercisable upto 24th July 2011. the Employee Stock Compensation Committee at its meeting held on 13th October 2008 implemented the Fourth Employees Stock Options Scheme (ESOS 2008) and granted 12.11.14. Stock Option granted: The weighted average fair value of stock options granted during the year was Rs.50. The vested options are exercisable upto 13th October 2013. 67. the options shall vest after one year from the date of the grant.72. which constituted a discount of approximately 25% to the price as calculated on the basis of average of weekly closing price on The Stock Exchange.52.125) 35. 30.02.9% 4 2 7. ESOS 2005 Pursuant to the resolution passed by the shareholders at the Annual General Meeting held on 29th September 2005. the Company has received Commitment Deposit of Rs. Pursuant to this. ESOS 2008 Pursuant to the resolution passed by the shareholders at the Annual General Meeting held on 26th September 2008.50.650 (3.20 117.050 (9.31.875) (3.000) 47.000.00.000 options to directors and other employees at a price of Rs.548) from its directors and employees under ESOS 2001.500 2008 (1st Grant) 12.000) 18.80.

Contracts in Progress (CIP): Amount (in Rupees) Sr.491 1.) Since the Company used the Intrinsic Value method. B.45.382 (14.49.05.61.284 3.482 1.00. Particulars Aggregate amount recognized as Contract Revenue In respect of Contracts in Progress as on 31st March : 1) Aggregate amount of Costs incurred and recognized profits (less recognized losses) 2) Amount of Customer Advance received 3) Amount of Retentions C.000 31.26.388 3.45.888) 3.58.25.Pro forma .10.210 1.94.68.00.30.388 7.02.47. Deferred Tax Liability (Net): The break up of Deferred Tax Liability/Assets is as under: Amount (in Rupees) As at 31st March 2009 Particulars Difference between book and tax depreciation Provision for doubtful debts Provision for doubtful advances Effect of expenditure allowable for the Tax Purposes in following years Total Deferred Tax Liability (Net) Deferred Tax Liability 7.11 (0.61.86.94.49.67.86.11) 1.11) Amount (in Rupees) 1.13 (0.474 Deferred Tax Asset 20.210 2007-2008 1. A.506 2.855 Deferred Tax Asset 20.33.17 (Contd.71.26.62.40.157 29.39.560 4.294 49 .034 6.06.32. No.37.545 4.As reported .07.09.33.053 8.89.74.24.57. Gross amount due from customers for contract work 1.41.As reported . the impact on the reported net profit and earnings per share by applying the fair value method: Particulars Profit as reported Add : Employee stock compensation under intrinsic value method Less : Employee stock compensation under fair value method Pro forma profit Earnings Per Share Basic Diluted .000 20.64.93.Pro forma 1.482 1.SCHEDULE .63.01.480 1.587 3.20.13.034 2.000 2008-2009 1.32.00.533 As at 31st March 2008 Deferred Tax Liability 6.80.78.90.480 12.63.267 6.40.44.57.38.93.96.

spares and services in connection with the plants.09.49.04.079 5.22.48.05.95.773 4.23.2009 2.69.092 87.37.098 3.05.917 4.13.26.03.51.28.07.442 4.858 (22.591 4.25.09.65.43.03.) (in Rupees) Chemicals 31.886) – – (18.419 1.892 1.492 12.154 2.29.03.11.251 29.15.00.304 3.563 2.77.87.699) 2.32.26.51.91.63.84.47.22.99.84.72. Chemicals – comprising of resins.25.18.42.01.91.457 97.56.780 7.442 (12.58.29.568 (3.47.03.171 12.43.81.872 1.237 1.03.49.328 (80.53.795 4.103 22.324 26.25.09.84.25.28.52.03.133 7.442 3.05.25.25.58.35.83.22.406 4.54.16.10.2009 31.46.47.03.615 91.80.26.123 2.974 2.40.687 6.965 1.39.396 (21.539 42.03.47.17.088 1.92.980 33.795 21.95.023 (11.71.16.73.930) 1.324 2.43.380 75.325 4.04.28.67.90.83.37.00.63.56.57.930) 1.953) (10. sugar chemicals and paper chemicals.38.513) 81.10.05.12.16.03.610) (6.696 3.76.14.58.44.638 (6.06.60.2008 31.29.75.80.2009 31.99.746 ANNUAL REPORT 2008-09 50 Engineering 31.552 – – – – 1.97.819 64.2009 Consumer Products Unallocated Total 31.47.52.770 1.040) 4.540) 86.45.34.05.265 1.42.42.19.06. Notes: (a) (b) The Company organised its operations into three business segments.888 7.70.442 86.87.23.94.25.870 (6.25.37.790) 2.02.45.03.953) (10.63.51.562 1.35.38.66.26.97.77.91.393 5.133 63.89.551 4.89.00.575 17.10.58.84.120 16.99.45.514) 1.58.917 4.80.20.478 1.30.917 4.12.90.29.95.746 3.95.03.60.37.032 (3.638 4.2008 3.96.15.673 (11.686 31.88.802 3.40.78.2008 5.684) 1.445 6.116 11.551 2.29.772 (in Rupees) 2007-2008 4.28.918 19.03.91.63.58.57.47.161 5.74.2009 31.610) (6.786 (27.87.42.489 95.044 68.62.12. Segment Information for the year ended 31st March 2009 I.461 74.130 4.SCHEDULE .13.01.008 1.99.94.20.87. Consumer Products – comprising of domestic water purifiers.119 80.046 47.87.233 14.72.26.78.03.12.843 5.47. India 2008-2009 3.46.85.17 (Contd.66.45.53.41.75.87.82.03.638 15.99.68.31.37.18.01.779 5.94.638 1.670 85.05.04.45.61.44.73.169 68.09.30. water treatment chemicals.22.06.25.26.75.89.54.270 14.062 2.869 71.843 71.48.54.05.58.87.05.28.60.393) 86.77.43.91.51.56.06.84.2008 31.217 10.39.03.99.20.56.11.43.48.85.03.020 18.03.22.73.75.40.472 9.32.99.90.91.29.75.863 5.75.82.25.77. .01.54.465 1.18.100 42.72.2008 31.75.45.978 17.719 5.22.863 2.20.20.23.626 95.49.816 (34.12.551 2007-2008 Information about Secondary Geographical Segments Outside India 2008-2009 97.23.219 4.130 External Revenue (Net) Carrying amount of segment assets Additions to fixed assets III.90.05.03.59.63.76.33.49.445) (15.441) 2.36.603 1.76.439 2. Revenue outside India includes sales to customers located outside India and earnings outside India.746 22.03.096 70.43.13.12.218 – – (34.72.42.24.46.78.08.72.06.540) 86.03.37.203 34.841 44.98.01.410 1.58.805 67.70.747) (99.98.684 8.865 26.864 33.95.80.03.348 8.84.242 26.988 2.677 3.47.891) 1.59.04.530 2007-2008 68.364) (40.72.99. Information about Primary Business Segments Revenue External Sales (Gross) Less: Excise duty recovered External Sales (Net) Inter-segmental Sales Other Income Total Revenue Less: Eliminations Add: Interest Income Total Enterprise Revenue Result Segment Results Unallocated Expenditure net of unallocated Income Interest Expenses Interest Income Profit before Taxation Other Information Segment Assets Segment Liabilities Capital Expenditure Depreciation Non Cash Expenditure other than Depreciation II.12.07.772 5.791 3.57.15.133 1.55.563 2.99.33.256 3.87.35.72.99.766 36.195 29. The Segment Revenue in the geographical segments considered for disclosure are as follows : Revenue within India includes sales to customers located within India and earnings in India. namely: Engineering Division – comprising of water treatment plants.032 Total 2008-2009 4.12.48.912 56.

88.01.877 2.46. Aruna Sharma .04.24. Related Party Disclosures (As identified by the Management) : Where control exists a) Subsidiary Companies Ion Exchange Enviro Farms Limited Watercare Investments (India) Limited Aqua Investments (India) Limited Ion Exchange Asia Pacific Pte. USA Ion Exchange & Company LLC.734 6.) 6.17.734 - 28. Ltd.223 40.183 1.708 1. Rajesh Sharma .38.22..09.76..508 10.30. Malaysia Ion Exchange Environment Management (BD) Limited.17..191 37.50.418 .25. Pallavi Sharma – Daughter * Associate Companies of Subsidiaries I.10.752 5.10.515 6.69.67.83.68.26.372 57.24.551 .05.02. Bhd.71.17.262 37.950 1.93.910 . Malaysia Ion Exchange LLC.34.24.05.Vice Chairman & Managing Director f) Relatives of Key Management Personnel Mrs.13.01.288 3. Dinesh Sharma .13.11.11. Poonam Sharma .565 1.551 10.54.50.10. Singapore Ion Exchange Asia Pacific (Thailand) Limited IEI Environmental Management (M) Sdn.46. Limited.69.01.Wife Mr.71. Oman Others b) Associates Ion Exchange Services Limited Aquanomics Systems Limited IEI Water-Tech (M) Sdn.25.507 1.40.62.68.Wife of Mr.18.SCHEDULE .445 - 12.385 24.13. Singapore Ion Exchange Asia Pacific (Thailand) Limited IEI Environmental Management (M) Sdn.24.445 6.22.96.33..13.18.35.877 2.507 1.34.38.2.950 44.16. Bangladesh Ion Exchange Infrastructure Limited Sub-Total - .96.35.16.34. Bangladesh Ion Exchange Infrastructure Limited Ion Exchange LLC.26.76.56. Bhd.05. Bhd.88.95.94.385 .250 11.250 .Brother Mrs. Malaysia * Astha Technical Services Limited Total Water Management Services (I) Limited Ion Exchange Financial Products Pvt.708 57.33.954 12.977 51 .127 54.88.05.183 12.67. Limited * Global Composites and Structurals Limited c) Joint Venture Ion Exchange Waterleau Limited d) Entity having significant influence IEI Shareholding Trusts e) Key Management Personnel Mr.35.752 1.83.262 57.288 3.55. Transactions during the year with Related Parties except Entity having significant influence with outstanding balances as at year-end: Amount (in Rupees) Nature of transaction Parties referred to in (a) above 2008-2009 2007-2008 Parties referred to in Parties referred to in (b) and (c) above (e) and (f) above 2008-2009 2007-2008 2008-2009 2007-2008 Total 2008-2009 2007-2008 Sale of Goods * Ion Exchange Services Limited Aquanomics Systems Limited Ion Exchange Waterleau Limited Global Composites and Structurals Limited Ion Exchange Asia Pacific Pte.545 6.78.38.191 5.850 - . USA Ion Exchange & Company LLC.35.545 2.10.11.01.45.515 .34.93.40.17 (Contd. Dinesh Sharma Ms.04.88.508 .223 40.95.565 1.27. Oman Ion Exchange Environment Management (BD) Limited.910 28.

850 10.000 2.12.600 Sub-Total 4.689 68.057 5.42.835.715 1.00.60.760 14.760 - - - - 18.) I.453 Total Water Management Services (I) Limited Ion Exchange Waterleau Limited Aquanomics Systems Limited Astha Technical Services Limited - 40.69.56.311 4.40.94.61.99.22.080 60.080 8.29.39.141 1.ANNUAL REPORT 2008-09 SCHEDULE .482 Sub-Total 69.982 Ion Exchange Infrastructure Limited 1.77.600 .44.00.25.12.82.177 5.000 Sub-Total 1.654 26.17.17.000 80.42.78.894 11.582 Purchase of Miscellaneous items Ion Exchange Enviro Farms Limited 18.27.17 (Contd.766 10.855 1.55.61.17.00.654 26.770 - - - - 1.33.000 80.482 60.80.39.23.80. Singapore 5.429 52 .77.82.876 7.80.146 5.265 2.41.310 9.83.06. Singapore 3.850 - .480 50.17.05.00.00.017 4.01.917 - 10.68.917 40.13.00.689 68.43.00.265 2.689 - - 50.44.05.01.480 68.38.56.917 2.18.35.40.06.803 2.751 14.312 2.751 14.138 Services Received Ion Exchange Services Limited Total Water Management Services (I) Limited Astha Technical Services Limited Sub-Total Interest Paid on Deposits Watercare Investments (India) Limited 1.68.17.87.000 2.766 8. Limited.967 1.86.1.74.760 - 6.69.49.17.77.12.05.18.05.715 5.68.55.20.90.487 - - 6.18.32.462 1.61.766 10.22.138 Sub-Total 18.312 .184 5.48.057 Ion Exchange Asia Pacific Pte.177 5.56.184 - 3.024 .38.42.14.56.766 8.86.49.17.22. Transactions during the year with Related Parties except Entity having significant influence with outstanding balances as at year-end: (Contd.79.78.00.198 14.599 1.25.855 1.61.878 60.032 Loans and Advances Given Ion Exchange Enviro Farms Limited 1.599 2.876 7.40.138 1.878 - - - - 69.94.78.174 11. Limited.00.803 2.41.69.032 1.770 1.37.14.09.99.482 Services Rendered Ion Exchange Waterleau Limited Sub-Total Purchase of Goods/ Materials Aquanomics Systems Limited Global Composites & Structurals Limited Ion Exchange Asia Pacific Pte.830 11.): Amount (in Rupees) Nature of transaction Parties referred to in Parties referred to in Parties referred to in Total (a) above (b) and (c) above (e) and (f) above 2008-2009 2007-2008 2008-2009 2007-2008 2008-2009 2007-2008 2008-2009 2007-2008 Management Fees Ion Exchange Services Limited Ion Exchange Infrastructure Limited 1.26.480 50.62.17.40.23.12.78.77.13.967 1.080 - - 10.06.830 11.09.720 Sub-Total 3.74.68.878 - 50.40.311 4.87.76.141 1.00.40.453 3.760 14.48.00.05.55.000 3.43.138 14.43.00.487 1.15.480 68.462 1.599 2.017 4.35.24.40.174 3.00.26.60.024 10.44.312 Aqua Investments (India) Limited 2.00.080 8.69.35.24.000 Rental Income Ion Exchange Waterleau Limited Sub-Total Interest Income on Loans and Advances Ion Exchange Enviro Farms Limited 69.32.720 3.99.37.05.429 - - 1.60.917 - - 2.29.146 5.76.878 60.33.599 2.83.982 - .00.43.198 - - 1.482 69.79.689 - 1.000 40.42.55.99.44.06.310 9.

91.000 52.56.97.000 Inter Corporate Deposits Repaid Watercare Investments (India) Limited 24.83.000 60.000 - - - - 24.000 - - 8.48.01.000 2.50.30.78.159 2.000 Sub-Total 50.583 1.000 18.795 3.000 18.000 - 8. Bhd..64.49. USA 1.50.88.150 Ion Exchange Infrastructure Limited 5.047 50.50.315 10.892 2.44.047 14.00.884 IEI Environmental Management (M) Sdn.397 30.000 34.397 39.17.78.78.08.715 1.000 60.35. Transactions during the year with Related Parties except Entity having significant influence with outstanding balances as at year-end: (Contd.82.315 10.19.800 3.00.28.38.56.25.200 1.000 15.965 36.09.000 Dividend Received Ion Exchange Services Limited Aquanomics Systems Limited - 2.000 56.396 3.583 1.51.000 18.73. Limited Ion Exchange Infrastructure Limited 50.331 Inter Corporate Deposits Received Watercare Investments (India) Limited 24.824 Loans and Advances Repaid Ion Exchange Enviro Farms Limited Total Water Management Services (I) Limited Ion Exchange Waterleau Limited Ion Exchange Services Limited Aquanomics Systems Limited Astha Technical Services Limited Global Composites & Structurals Limited Ion Exchange Financial Products Pvt.000 15.73.715 1.642 14.280 Sub-Total 3.SCHEDULE .331 Ion Exchange Environment Management (BD) Limited.04. Malaysia Ion Exchange & Company LLC.91.000 34.29.) Ion Exchange Services Limited Ion Exchange Financial Products Pvt.858 1.82.84.78.000 34.625 4.52.50.25.31.88. Bangladesh 14.56.396 11.965 36.) I.19.00.250 1.50.662 9.75.76.44.00.000 34.71.60.660 11.161 4.000 28. Bangladesh Ion Exchange LLC. USA 80.31.280 8.50.800 3.75.89.76.50.000 Sub-Total 52.39.92.608 15.50.50.00.966 - - 14.58.892 2.200 1.54.00.795 3.651 1.000 1.396 11.159 33.047 80.000 Ion Exchange LLC.50.000 Aqua Investments (India) Limited 28.660 11.54.899 9.51.19.000 5.000 1.589 51.047 4. Oman 5.28.53.84.884 5.823 - - 2. Limited Global Composites & Structurals Limited Ion Exchange Environment Management (BD) Limited.250 2.44.150 5.000 53 .89.88.396 3.49.50.161 4.000 15.25.75.83.78.31.839 2.000 Sub-Total 52.78.750 2.331 80.413 51.000 5.94.39.31.000 56.858 1.71.04.44.651 39.13.75.50.000 18.29.00.000 52.000 2.25.568 30.30.000 Aqua Investments (India) Limited 28.73.08.58.750 2.): Amount (in Rupees) Nature of transaction Parties referred to in Parties referred to in Parties referred to in Total (a) above (b) and (c) above (e) and (f) above 2008-2009 2007-2008 2008-2009 2007-2008 2008-2009 2007-2008 2008-2009 2007-2008 Loans and Advances Given (Contd.625 4.00.17 (Contd.000 - - - - 24.60.000 28.

770 Ion Exchange LLC.812 4.85.22.625 8.05.44.16..125 20.81.90.190 99.154 4. Rajesh Sharma Mr.850 2.623 29. Malaysia 1.54.872 6. Dinesh Sharma Sub-total Shares allotted under Employee Stock Option Scheme (ESOS) Mr.) Ion Exchange Infrastructure Limited 5.000 1.14.08.84.081 IEI Water-Tech (M) Sdn.468 18.20.12.62.) I.365 54 .750 3. Dinesh Sharma Sub-total Outstanding Receivables (Net of Payable) Ion Exchange Enviro Farms Limited 16.78.000 Sub-Total 5.38. Singapore 2.07.10.45.625 Dividend Paid Watercare Investments (India) Limited 3.78.081 2.50.98.11.887 46.91.330 1.55.47.16.07.03.843 .580 2.770 8.906 Global Composites and Structurals Limited 35.16.04.14.51.00. Limited** 29.627 4.17.329 Outstanding Payables (Net of Receivable) Astha Technical Services Limited 4.40.125 12.19.70.00.ANNUAL REPORT 2008-09 SCHEDULE .023 23.50.026 1.48.14.16.528 84.66.750 5.65.627 4.00.78.630 Sub-total 32.00.000 17.587 4.059 2.07.78.48.334 .000 1.91.330 1.70.839 1.45.000 1.000 1.20.934 1.000 3.19.282 Ion Exchange Financial Products Pvt.906 17.270 14.10. Rajesh Sharma Mr.812 94.843 22.000 18.00.45.06.75.14.11.04.46.28.31.38.58.45.05.000 2.270 14.000 3.17 (Contd.279 95.800 2. Bhd.11.45.65.47.5. Bangladesh 94.000 5.679 Aquanomics Systems Limited .72.334 17.87.31.20. Malaysia 2.28.82.18.442 1.00.21.418 1.00.68.839 1.70.78.51.000 .84.94.20.750 3.25.000 1.38.900 16.38.000 1.27.839 19.48.84.38.51.38.184 Ion Exchange Asia Pacific Pte.00.417 16.00.00.45.000 1.20.500 16. Dinesh Sharma Sub-total Director Sitting Fees Mr.14.018 Remuneration Mr.76.03.19.87.839 19.51.03.81.528 Ion Exchange Environment Management (BD) Limited.20.10.330 19.026 Ion Exchange Infrastructure Limited 2.71.46.76.154 4.305 15.580 2.10. Rajesh Sharma Relatives of Key Management Personnel Sub-Total 6.81.66.90.51.000 99.000 1.305 1.00.00.00.427 1.75.000 13.872 6.023 23.334 Ion Exchange Services Limited .27.929 36.11.330 19.750 7.22.38.000 2.89.14.679 .282 29.800 4.38.000 1.18.750 10.018 Mr.587 Ion Exchange Asia Pacific (Thailand) Limited 1.03.850 Aqua Investments (India) Limited 3.88.03.000 2.879 95.98.90.78.58.20.670 Total Water Management Services (I) Limited 15.19.71.10.78.70.62.184 2.442 2.934 IEI Environmental Management (M) Sdn.900 2.000 Ion Exchange Services Limited 5.16.48.10.850 5.500 28.91.): Amount (in Rupees) Nature of transaction Parties referred to in Parties referred to in Parties referred to in Total (a) above (b) and (c) above (e) and (f) above 2008-2009 2007-2008 2008-2009 2007-2008 2008-2009 2007-2008 2008-2009 2007-2008 Dividend Received (Contd.498 - .000 2.800 3.24. Limited.5.91.91.417 Ion Exchange Waterleau Limited .018 10. USA 8.418 8.630 18.1.059 84.78.334 .51.68. Bhd.000 1.365 - - 4.45..94.72.372 7.000 1.670 17.21.68. Transactions during the year with Related Parties except Entity having significant influence with outstanding balances as at year-end: (Contd.623 29.558 23.468 35.10.40.85.00.

37.000 23.853 18.79.06.00.SCHEDULE .00.000 - - 94.20. 55 .634 18.000 2.38.33.000 6.94.000 1.000 43.10.00.000 9.10.800 7.73.00.111 25.49.000 4.000 - - 3.744 55.33.17 (Contd. Bhd.000 89.24.000 1.000 4.00.000 4.219 25.76.00.38.00.000 43.): Amount (in Rupees) Nature of transaction Parties referred to in (a) above 2008-2009 2007-2008 Parties referred to in Parties referred to in (b) and (c) above (e) and (f) above 2008-2009 2007-2008 2008-2009 2007-2008 Total 2008-2009 2007-2008 Outstanding Payables (Net of Receivable) (Contd.111 51.948 23.000 * Gross Sales amount has been considered.40.00.000 2.33.70.000 2.000 1.76. Oman Sub-total Investments made during the Ion Exchange Asia Pacific Pte.000 1.000 13.00.20.38.44.70.73.94.04.79.00.000 6. ** Provision has been made in respect of the said amount.00.000 1.76.20.50.000 54.000 6.000 6.948 20.744 54.50.111 25.000 400.418 1.634 18. Bangladesh Aquanomics Systems Ltd Ion Exchange Waterleau Limited Astha Technical Services Limited Total Water Management Services (I) Limited Ion Exchange Services Limited Global Composites & Structurals Limited Sub-total Share Application Money Ion Exchange Environment Management (BD) Limited.00.50.20.000 1.94.109 10.50.40.24.00.712 54.70..000 8.948 - - 54.40.00.717 54.219 25.) I.40.000 1.000 4.73.000 9.77.76.00.76.000 1.545 23.71.95.800 7. Transactions during the year with Related Parties except Entity having significant influence with outstanding balances as at year-end: (Contd.00.76.95.000 42.00.299 99.493 3.000 42.00.853 18.000 93.000 1.50.77.00.95.800 7.000 1.76.000 1. Limited.000 1.38.10.37.000 1.000 9.27.000 6.00.000 2.00.000 6.99.50. Limited.111 51.000 4.000 9.11.99.79. Bangladesh Global Composites & Structurals Limited Sub-total 94.000 89.40.00.70.948 20.00.05.000 1.77.20.73.948 20.76.219 54.000 7.77.00. USA Ion Exchange & Company LLC.00.73.000 400.365 94.000 43.219 10. Singapore IEI Environmental Management (M) Sdn.000 1.05.000 6.50.948 20.94.76.00.19.299 94.000 6.16.10.50.00.95. Malaysia Ion Exchange Infrastructure Limited Ion Exchange LLC.000 1.744 4.19.00.764 54.77.000 3.000 7.76.71. Malaysia Ion Exchange Waterleau Limited Astha Technical Services Limited Sub-total Investment in Equity Shares Ion Exchange Enviro Farms Limited Aqua Investments (India) Limited Watercare Investments (India) Limited Ion Exchange Asia Pacific Pte.000 7.00.33.000 2.000 23.63. Bhd.) Ion Exchange & Company LLC.000 4.20.55.299 year 94. Singapore Ion Exchange Infrastructure Limited Ion Exchange Enviro Farms Limited IEI Environmental Management (M) Sdn.00.000 13.000 1.800 7.000 3.00.000 6.000 1.50.10.000 1.71.94.50.00.05.50.000 3.70.000 9..50.50.000 1. Oman Ion Exchange Environment Management (BD) Limited.76.000 3.90.000 43.05.000 1.000 1.00.

000 (2007-2008: 25.934 Maximum Balance in 2007-2008 14.17 (Contd.900 67.94.95.828 2007-2008 39.51.715 5. 11.87.ANNUAL REPORT 2008-09 SCHEDULE . 1.61.500 24.64.20.85.640 1.56.735 4. Stock Options granted and outstanding to Key Management Personnel: 2.85. Bhd.51. 10.16.25.914 Amount (in Rupees) As at 31st March 2008 1.19. of shares for Basic EPS as per IIA Add: Weighted Average outstanding employee stock options deemed to be issued for no consideration No. 6.79.64. of Shares for Diluted Earnings per Share Earnings Per Share in Rupees (Weighted Average) Basic Diluted 31st March 2009 1.267 18. of shares as at 31st March 2009 31st March 2008 26. Limited Ion Exchange Services Ltd IEI Environmental Management (M) Sdn. USA Ion Exchange Waterleau Limited Ion Exchange Infrastructure Limited Aquanomics Systems Limited Global Composites and Structurals Limited Ion Exchange Water-Tech (M) Sdn.44.37.40.98.770 8.13 1.30.880 4.146 1.85.92.18. Earnings Per Share: I II Particulars Profit Computation for both Basic and Diluted Earnings Per Share of Rs. 2. Bhd.23.210 1.04.282 1. IV.13.194 40.03.500 Loan given during the year 2008-2009 2007-2008 3.00.93.79.68.00.608 1.55.48.51.271 2.01.208 7.94. 9. No.78. 10 each Net Profit as per Profit and Loss Account available for Equity Shareholders (In Rupees) Weighted average number of equity shares for Earnings per Share computation A) For Basic Earnings per Share B) For Diluted Earnings per Share No.37.73.75.12 III 56 .89.914 26. 5.477 9.270 Amount (in Rupees) As at 31st March 2008 14.997 2. Ion Exchange Environment Management (BD) Limited Ion Exchange LLC.63 8. Disclosure pursuant to Clause 32 of the listing agreement: (a) Loans and Advances in the nature of loans Name of the Related Party Ion Exchange Enviro Farms Limited As at 31st March 2009 Subsidiary 16.27. (b) Investment made by the loanee in the shares of the Company Name of the Related Party IEI Shareholding Trusts 7. Ion Exchange Asia Pacific (Thailand) Ltd. 3.602 - Sundry Debtors include following amounts due from Companies under the same Management : Sr.09.04.62. As at 31st March 2009 2.208 1.94.146 2.) II.617 1.000).27.000 30.23. Transactions during the year with Entity having significant influence with outstanding balances as at year-end: Amount (in Rupees) Name of the Related Party IEI Shareholding Trusts Outstanding Receivable 2008-2009 2007-2008 24.726 1.68.500 Dividend paid during the year 2008-2009 53.42.270 Maximum Balance in 2008-2009 16.33. 7.78.621 7.919 1. No.33.31.07.734 2.934 8.35. 8.683 71.000 Loans repaid during the year 2008-2009 2007-2008 41.83. 4.04.11 31st March 2008 10.95.05.05.934 Notes: 1) Loans and advances shown above to the Subsidiary fall under the category of ‘Loans and Advances in nature of Loans where there is no repayment schedule’.065 1.371 III.865 17.29.48. Name of the Related Party Ion Exchange Asia Pacific Pte.21.62. 2) Interest on Loans and Advances to the Subsidiary are charged at the prevailing market rates.

bio-pesticides and bio-fertilizers marketing. the accumulated losses of IEEFL have substantially exceeded its paid-up share capital.42.09.10. based on the financial information as certified by the Director of the Joint Venture are: Amount (in Rupees) 31st March 2009 I.85.33.914 13. OTHER MATTERS 1) 2) . 12.SCHEDULE .008 9.12.500).020 72.215 25. The Company has an investment of Rs.69.93.500 (2007–2008: Rs.37.408) 2.670 2. Liabilities.125 2.660 7. ASSETS 1) 2) Fixed Assets Current Assets.61.644 31st March 2008 Deferred Tax Assets – Net Loan Funds Current Liabilities and Provisions a) b) Liabilities Provisions LIABILITIES 3) III.473 49.299 16.78. the Supreme Court of India has admitted IEEFL’s appeal against the Security Appellate Tribunal Order of refunding monies to investors with return and winding-up of scheme.408 18. Deferred Tax – Net (Liability) INCOME EXPENSES 1) 2) 3) 4) 5) Cost of Sales Operation and Other Expenses Depreciation Deferred Tax Provision for taxation Capital Commitments Contingent Liabilities V.196 4.) 9.461 5.88. 3. 24th November 2005) ii) Country of Incorporation India % Holding 50 10.49.41. Capital expenditure incurred on Research and Development during the year is Rs.15. Hence.42. 16.270 (2007–2008: Rs. as at 31st March 2009 and it has also granted Loans and Advances aggregating Rs.70. In the month of March 2008. The amount outstanding as at 31st March 2009 is Rs.94.82.52.58. Income and Expenses with respect to Jointly Controlled Entity.378) incurred on Research and Development has been expensed to Profit and Loss Account under various expense heads.952).17 (Contd.560 18. Considering the valuation.f.46. the Management does not anticipate any ultimate loss arising out of these loans. 24.000 in Equity Shares of Ion Exchange Enviro Farms Limited (IEEFL). Joint Venture Disclosure: i) Jointly Controlled Entity by the Company: Name of the Entity Ion Exchange Waterleau Limited (w.183 1. 11. Revenue expenditure of Rs.571 4.e.07.16.308 7.129 2. the Management is of the opinion. IV.17.984 (25. 54. a subsidiary company. Company’s share of each of the Assets.36. 24.05.12. SEBI did not file their reply and asked for time.51.03.89. 14.38.03.588 (2007-2008 : Rs.13.34.934) as at 31st March 2009 to IEEFL. The Company has carried out valuation of the assets held by the Trusts.65.68.04.16.998 (2007–2008 : Rs. the matter was listed for filing reply by SEBI.27.125 57 17.905 93. Also.84.787 7.78.01. 1. Moreover.50.91.79. 2.215 13.64.02.247 19.37.210 1. book value of the corpus of the Trusts as on the Balance Sheet date and future opportunities. As at 31st March 2009. IEEFL has undertaken various cost reduction programs and it expects better returns in the coming years from its organic farming activities.59.54.078 6. In view of the foregoing. 1) 2) Inventories Sundry Debtors Cash and Bank Balances Loans and Advances 86. IEEFL has adequate assets in the form of developed and undeveloped land and office premises.95.13. IEEFL has been legally advised that it has got a fair chance of successfully contesting the appeal. 11.092 17. that there is no permanent diminution in value of investment and the advances are fully recoverable. presently no provision is considered necessary.30. The matter was adjourned thereafter.520 1.23.93. the Company had given loans to Employees’ IEI Shareholding Trusts. In early 90s. Loans and Advances a) b) c) d) 3) II.406 1.

38.500) Associate – Rs.79.38. not included above. 4.05.625 (2007-2008 : Rs.000) Income Tax – Rs. Auditors’ Remuneration: 17.039 1.05.00.459 (2007–2008 : Rs.76.117 (2007–2008 : Rs.34.000 (2007– 2008 : Rs.65.000) Service Tax – Rs.294 (2007–2008 : Rs.040) has been reduced from sales in Profit and Loss Account and Excise duty on increase/decrease in stock amounting to Rs.78. 27.330 Amount (in Rupees) 2007–2008 1.75. 14.224 (2007–2008 : Rs. 38.84. Claims against the Company arising in the course of business not acknowledged as debts (to the extent ascertainable) Rs. Contingent Liabilities not provided for: (a) Guarantee given by the Company on behalf of : i) ii) iii) iv) (b) i) ii) iii) iv) v) (c) Subsidiaries – Rs.29.649 24.18. 18.56.38.000) Others – Rs.83.469 (2007–2008 : Rs.245).) 13.52. 62. 86. 1.000 (2007–2008 : Rs.738) net of service tax.27. Sales include services rendered Rs. if any.85.52.780 11. Amount (in Rupees) 2008–2009 Statutory Audit Tax Audit Any other capacity (certification work) Out of Pocket Expenses Total 13.61.550 1.800 11.00.999). 5.31.89. 2.89.000) Joint Venture – Rs.79.000 21. therefore.839 As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole.649 16.249 2007–2008 13.56. 27.249 24. 17. Note: Future cash outflows/uncertainities.85. Excise duty on sales amounting to Rs. 12.00.01.000 7. 28.77.09.000 3.000 3. in respect of above are determinable only on receipt of judgments/decisions pending with various forums/authorities.04. 1. 41. 10.209) Customs Duty (to the extent ascertainable) – Rs.00.17 (Contd. 24.00. 1.15.000 19.56.82.48.88. 30.000 88.891 (2007-2008 : Rs.75.000 6.000 69.00.173) has been considered as (income)/expenses in Schedule 15 of financial statements.74.89.00. the amount pertaining to the directors is not ascertainable and. Capital Commitment: Estimated amount of contracts (net of advances) remaining to be executed on Capital Account not provided for is Rs.595 (2007–2008 : Rs.00. 5.000 (2007–2008 : Rs. 58 . 3. 30. 15. 1.97. 38.48.00.53. 27.63.53.00. Nil) Sales Tax – Rs. 24.88.29.26. 21.87.03. The Managerial Remuneration paid has been approved by the Central Government. 35.00.ANNUAL REPORT 2008-09 SCHEDULE .240 (2007-2008 : Rs.000 (2007–2008 : Rs.294).05.53. Excise Duty – Rs. Managerial Remuneration: 2008–2009 Salaries and Allowances Contribution to Provident and other Funds Perquisites Total Note: 1. 51.500 (2007– 2008 : Rs.117) Demand raised by authorities against which the Company has filed an appeal.

2.624 59. 1. 5.01.531 Nos.17.50.351 5.187 (11.55.841 Nos.58.577 M3 92 M3 Rs.C.60. 4.69.24.58.947 17.90.15. The relevant information in quantities and values is as follows: Opening Balance Purchases Sales Closing Balance 1st April 2008 31st March 2009 Quantity Value Quantity Value Quantity Value Quantity Value Nos.417 10.665 — Rs.762 8.11.21. Rs.406) (2.72. The Company traded in the following products.59. 1.795 9.693 29. 1. 1. 32. S.74.85. 2.60.936 2007–2008 Not Applicable 10.575) (12.750 5.000 Tonnes 8.13.654 Chemical Additives 2008–2009 Licensed/Registered Capacity per annum (Note 1) Installed Capacity per annum (Note 2) Actual Production Opening Stock of Finished Goods Closing Stock of Finished Goods Sales (Note 5) Notes: 1.33. Sales quantity of Ion Exchange Resins.42.071 2.57.02. 1.73. 1. 5.46.19.17 (Contd.629 66.11.48. Rs.910 231 Tonnes Rs.762 376 M3 Rs.935 4.730 1. 75.000 Tonnes 7.48. 50.37.649 (2. 49.254 — Rs.78.80.37.72.57. Nos.98.213 Nos.717) Note: Figures shown in brackets pertain to previous year. Rs.66.023 Tonnes Rs.863) (69.802 17.22.569) (19.98. quantitative information has not been furnished.73.724 Refer Note 4 below Licensing has been abolished vide Press Note 9 dated 2nd August 1991 and Notification No.22.61.64. 25. Nos.18.126 M3 Rs.685 Nos.071) (2. 54.06.83. Rs.263 12. 57. Rs.113) (2.505 Tonnes 231 Tonnes Rs. 54.215 30. 1.244 — Rs.477 (E) dated 25th July 1991 issued by the Government of India.40.269) (33.524 2007–2008 Not Applicable Not Applicable 53.71.804 Water Treatment Plants 2008–2009 Not Applicable Not Applicable 36.63.74. (ii) Not Applicable 10.798 Consumer Products 2008–2009 Not Applicable Not Applicable — Rs.141 41.) 18.60.730) Activated Carbon 16.44.29.072) Total 2.624 687 Nos. Consumer Products 12.818 134 M3 Rs.462 (15. 58.81.120) (75.470) (16.21.48.535 M3 Rs.467 7.900) (1. Rs. Rs.665 — Rs.60. Due to innumerable types of consumer products manufactured by the Company.795 138 Tonnes Rs.706 2007–2008 Not Applicable Not Applicable — Rs.51.677) (25.677 25.55.78.597) (2.68.83. Rs.57.200 M3 10. There are licenses for other items for which there are no manufactured goods.072 19.497 29.521 4.045) (2.27. as it is a technical matter.22.18. Rs.869 M3 8.51.79. Nos. 2. Chemical Additives and Water Treatment Plants include quantity utilised for captive consumption. 3.31.572 Nos.29. (i) The Company manufactures the following products. 75.22.598 Tonnes Rs. 49. Installed Capacities mentioned above have been determined based on single shift by the Company’s technical officials and have been accepted by the auditors without verification.584 46.14. 11.18.92. 2.802) Description 59 .55.94.11.13. The relevant information in quantities and values is as follows: Ion Exchange Resins 2008–2009 Licensed /Registered Capacity per annum (Note 1) Installed Capacity per annum (Note 2) Actual Production Opening Stock of Finished Goods Closing Stock of Finished Goods Sales (Note 5) Not Applicable 13.292 2007–2008 Not Applicable 7.02.48.27.368 M3 134 M3 Rs. 2.62.49. (20.575) (96.254 Nos.300 30.611) (32.531 Nos.393 88.921 Tonnes 333 Tonnes Rs. 3.SCHEDULE .002) (15.02.49.68.60.69. Rs.95.

150 3.55.000 3.00.990 % of total consumption 12.26.77.766 92.260 2007–2008 54.38.696 2007–2008 1.38.031 6.34.68.41.27.21 82.32.86.14.953 Kgs.472 During the year 33.700) equity shares were allotted to employees and directors under ESOS 2005 on 17th June 2008.339 54. 2.396 Quantity 17.I.96.05.50.052 5.00 per share (20%) declared at the Annual General Meeting held on 26th September 2008 was also paid to those shareholders (book closure date being 16th September 2008).730 3.72.63.09.08. Kgs.20.21.15.550 (2007-2008 : 5.19.95. Accordingly. Value (Rupees) 13.226 Kgs.40.223 2.43.54. (iv) Value of all imported and indigenous Raw Material and Spare Parts consumed: 2008-2009 Value Rupees 34.14 100. Kgs.33 87.629 59.78.07.00.69.68.F Basis: Amount (in Rupees) 2008–2009 Raw Materials (vi) Expenditure in foreign currency (Cash basis): Amount (in Rupees) Foreign Travel Royalty Other Expenses (vii) Earnings in foreign exchange (Accrual basis): Amount (in Rupees) 2008-2009 Exports of goods calculated on F.739 63.28.79.31.43.) (iii) Consumption of Raw Materials and Components: 2008-2009 Quantity Styrene Divinyl Benzene Dimethylethanolamine Paraformaldehyde Ethylene Dichloride Others 19.000 Buy USD 2.59. Kgs.28.81.70.208 The quantity and value of Raw Materials consumed have been arrived at on basis of opening stocks plus purchases less closing stock.341 % of total consumption 17.27.75.558 1.38.818 Buy USD 4.59.09.46.14 100.100 20.56.002 4.00 Imported : Raw materials Indigenous : Raw materials Indigenous : Spares parts (v) Value of imports calculated on C.347 50.74.22.354 45.ANNUAL REPORT 2008-09 SCHEDULE .00 2007-2008 Value Rupees 56.044 1.395 2.350 2007–2008 Buy USD 32.69.65 0.133 3.945 2.527 2.17 (Contd.854 2.99.097 2. 97.594 2.53 0.412 49.60.274 2007-2008 65.41.173 40.82.70.33.56.190 5.77.15.39.37. Kgs. 60 . Kgs.36.62.858 84.32. 21.O.20.82.75. Derivative Instruments and Unhedged Foreign Currency Exposure: Particulars of Derivatives as at Balance Sheet date Purpose Hedge of Foreign Currency Loans Hedge of Import Creditors Hedge of Import Creditors Particulars of Derivative 2008–2009 Buy USD 10.64.157 13.42.02.128 Buy JPY 3.12.49.27. 2007-2008 Value (Rupees) 11.01.45.150 3.24.B basis (Excluding exports to Bhutan and Nepal in Indian Rupees) Freight and other Recoveries Commission Received 19.265 1. Kgs. Kgs.40.77.011 16.52.920 45.162 54.83.98. The consumption therefore includes adjustments for materials sold. Backcharges represents reimbursement of costs incurred by customers on the Company’s behalf in the course of contract execution. shortage/ excess and obsolescence.594 2. Kgs.066 2008–2009 1.230 3. dividend of Rs.

BDT 10.13.52.072.003) 37. BDT 10.545 22. Expected return on plan assets 4.000.79. Euro 1.000.68.09. The Scheme is funded to a separate Trust duly recognized by Income tax authorities.79.SCHEDULE . SGD 1.77.358) 38.724) (3.) Particulars of Unhedged foreign currency exposure as at Balance Sheet date Particulars of Derivative Import Creditors 2008–2009 Amount (Rs.671) (31.88.20.50.79.082.48.52.24.175) (28.99.) 10.00. Benefits paid 5. Euro 1.16.921) 3.79.36.000.85.350) 58. The following table summarise the components of net benefit expense recognized in the Profit and Loss Account and the funded status and amounts recognized in the Balance Sheet for the Gratuity Plan.634) (40.907 Foreign Currency USD 14.000 (58.921 (3.974.50.00.175 30.93.895 USD 1.921 (3.) 8.54. JPY 60.03.43. Expected returns 3.00.944 2.100 USD 65.000 28. OMR 90.27.596 USD 3. MYR 1.282 76.060 USD 69.59.175.000 Export Debtors 35.99.350 28.72.88.32.338 28. Current service cost 2. Closing Fair value of Plan assets (3. Actuarial Gains / (Losses) 6.88.42.32. Interest cost 3.489) 4.15.191 2008-2009 2007-2008 61 .99.693 40.36.18.88. Opening Fair value of Plan assets 2.000.13.88.000. Opening defined benefit obligation 2.908 (63.79.13.96. UAE DH 14. SGD 4.000 2007–2008 Amount (Rs.235 USD 4.634 (30. Euro 27.57.57.89.95.15. Net actuarial Loss / (Gain) recognized in the year Net benefit expenses Actual return on plan assets II Net Assets / (Liability) recognized in the Balance Sheet 1.000.003 75. Contributions by Employer 4.671 (4.03.32.60.045.591 (34.13.558) 3.79.137 Foreign Currency Bank Account Investments 2.539.36. Employee Benefits: A) The Company has a defined benefit gratuity plan.08.559.43. Amount (in Rupees) Particulars I Profit and Loss Account Net Employee benefit expense (recognized in Employee cost) 1.000.264 (20.422 3.764 1.05.69.350) 63. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.88. OMR 90.000.18.12.264) (17. OMR 15. Present Value of defined benefit obligation 2. Benefits paid 5.79.671 40.13.921) 4.358 76.29.00.908 27.60. Interest cost on benefit obligation 3.32.11.649.30.57.29.84.461.212) (6.671) 3.062 75. MYR 1.00.17 (Contd.05.212 (31.350 31.96.49.671 34.75. Fair value of Plan Assets III Changes in the present value of the defined benefit obligation are as follows: 1.214 Foreign Currency USD 9. JPY 15.98.426 USD 1. Actuarial Gains / (Losses) on obligation Closing defined benefit obligation IV Changes in the fair value of Plan assets are as follows: 1.573) (4.671) 3.57. Current service cost 4.591) (40. Euro 67. OMR 15.32.00.

75. Attrition Rate The Company expects to contribute Rs. requiring no provision. Expected rate of Salary increase [Refer Note (b) below] 3. 76. Small and Medium Enterprises Development Act.) The following table summarise the components of net benefit expense recognized in the Profit and Loss Account and the funded status and amounts recognized in the Balance Sheet for the Gratuity Plan (Contd. R. 1.43.55.000 (2007-2008 : Rs.54.75. Chartered Accountants per VIJAY MANIAR Partner Membership No. 2006”. seniority. 25. / Bank Deposits % of holding 2008-2009 31% 21% 48% 2007-2008 51% 28% 21% 2008-2009 2007-2008 7. Ltd. Co.32. RANGANATHAN Chairman RAJESH SHARMA Vice Chairman & Managing Director MILIND PURANIK Company Secretary Place : Mumbai Date : 19th June 2009 Place : Mumbai Date : 19th June 2009 62 .5% 8% 5% 5% LIC (1994-96) LIC (1994-96) Ultimate Ultimate 2% 2% The expected rate of return on assets is determined based on the market prices prevailing on that date.28. : 36738 For and on behalf of the Board of Directors of ION EXCHANGE (INDIA) LIMITED G.161 to gratuity in 2009-2010.26. 1.628 (2007-2008 : Rs. Mortality 4. the Company is not aware of their registration status and hence information relating to outstanding balance or interest due is not disclosed as it is not determinable. Discount Rate 2. 1 2 3 Categories of Assets Central & State Government Bonds Public Sector Undertaking HDFC Std.95. the decline in the book value of the aforesaid investments is of temporary nature.08.00. in the opinion of the Management. Wages and Bonus” Rs.921 Nil (13.03.13.000. Amounts for the current and previous year are as follows: Defined Benefit obligation Plan assets Surplus / (deficit) Experience adjustments on plan liabilities Experience adjustments on plan assets Notes: a) Amounts recognized as an expense and included in Schedule 15: (i) (ii) b) B) Leave Encashment in “Salaries.671) 3. The Company has initiated the process of obtaining confirmation from suppliers regarding the registration under the “ Micro.43. Life Ins. The major categories of plan assets as a percentage of the fair value of total plan assets are as follows: Sr. Book values of certain long-term unquoted investments.436) (17.558) The estimates of future salary increases considered in the actuarial valuation take account of inflation. BATLIBOI & CO.42.218) 23. 24.17 (Contd.671 Nil 31.) V Particulars Actuarial Assumptions: 1.724 (6.79. 2.71. Previous year’s figures have been regrouped / rearranged.13.921) 4. No. aggregating to Rs. promotion and other relevant factors such as supply and demand in the employment market. 2. 52.25.424 (2007-2008 : Rs. 1.88. wherever necessary to conform to this year’s classification.82. applicable to the period over which the obligation is to be settled.074) Gratuity in “Contribution to Provident & Other Funds” Rs.11.96. The suppliers are not registered wherever the confirmation are received and in other cases.489) 2007-2008 (3. are lower than its cost. and asset base and business plan of the investee companies.908) 2008-2009 (4.79. As per our report of even date For S. Considering the strategic and long-term nature of the aforesaid investments.88. Defined Contribution Plan: Amount recognized as an expense and included in the Schedule 15 – “Contribution to Provident and Other Funds” of Profit and Loss Account Rs.32. S.ANNUAL REPORT 2008-09 SCHEDULE .

1 4 2 5 8 State Code 1 1 III. Registration Details Registration No. (ITC Code) Product Description 3 9 1 4 Ion Exchangers 3 9 0 6 Water Treatment Chemicals 8 4 2 1 2 1 Water Filter . 33. S.for Loss) + - Total Expenditure 4 3 2 7 4 1 5 (Please tick appropriate box + for Profit.Zero B For and on behalf of the Board of Directors of ION EXCHANGE (INDIA) LIMITED G.for Loss) + - ✓ Profit / Loss before tax 3 7 3 6 4 (Please tick appropriate box + for Positive. . Balance Sheet Date II. Net Current Assets # 1 3 3 0 5 0 9 # excludes Deferred Tax Liability Rs. Earning per Share (in Rs.for Negative) + - 3 1 0 3 2 0 0 9 Date Month Year Capital Raised During the Year (Amount in Rs. I. . . . Rights Issue N I L Private Placement* 3 5 6 * Issue of Shares under Employees Stock Option Plan Position of Mobilisation and Deployment of Funds (Amount in Rs. 1 3 Diluted 1 .for Negative) ✓ Profit / Loss after tax 1 4 4 3 7 Dividend Rate % 1 0 + - ✓ + ✓ V. Thousands) Turnover** 4 3 6 4 7 7 8 ** including other income Rs.872 (Please tick appropriate box + for Profit. 94. 1 1 Generic Names of Principal Products/Services of Company (as per monetary terms) Item Code No. Thousands) Total Liabilities Total Assets 4 1 2 2 5 5 9 4 1 2 2 5 5 9 Sources of Funds Paid-up Capital Reserves & Surplus 1 2 6 9 2 5 1 1 5 9 3 0 3 Secured Loans Unsecured Loans 5 4 9 5 8 5 2 3 9 0 2 4 Application of Funds Net Fixed Assets Investments 6 4 1 9 1 2 1 0 2 4 1 5 (Please tick appropriate box + for Positive. Thousands) Public Issue N I L Bonus Issue N I L ✓ IV.Additional Information pursuant to Part IV of Schedule VI to The Act.359 Miscellaneous Expenditure N I L Performance of Company (Amount in Rs.) Basic 1 . RANGANATHAN Chairman RAJESH SHARMA Vice Chairman & Managing Director MILIND PURANIK Company Secretary Place : Mumbai Date : 19th June 2009 63 . Balance Sheet Abstract and Company’s General Business Profile.

66.44.37.711 Operating Profit Before Working Capital Changes Movements in Working Capital: (Increase) / Decrease in Trade and Other Receivables (Increase) / Decrease in Inventories (Decrease) / Increase in Trade and Other Payables (Increase) / Decrease in Loans and Advances (16.38.00.71.00. CASH FLOW FROM OPERATING ACTIVITIES Net Profit Before Taxation Adjustment for: Depreciation Loss on Assets sold / discarded (Net) Employee Compensation Expense Write-back of diminution in value of Investments (Net) Interest Expense Dividend received Interest received Bad Debts written off Backcharges on Contracts Provision for doubtful advances Amount set aside for liabilities.139) 21.90.80.810 22.455) 10.089 (4.24.09.77.68.129) (17.496 (1. no longer required.54.222 3.89.95.02.591 15.80.51.80.52.59.603 (1.99.968 1.18.73.42.99.89.00.98.645) 7.54.15.816) Cash Generated From Operations Taxes Paid (Income Tax.89.341 6.13.161) 19.83.04.540 (9.48.32.65.70.80.87.34.40.472 12. CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets Proceeds from sale of Fixed Assets Investments made in Subsidiaries & Associates Proceeds from Sale / Redemption of Investments Deposit (with maturity more than three months) Dividend received Interest received Net Cash Used in Investing Activities (4.708 (10.95.58. written back Unrealized Exchange Loss / (Gain) 5.082 (4. Wealth Tax and Fringe Benefit Tax) Net Cash From Operating Activities B.000) 1.01.38.15.930 (19.51.541) 18.459) (86.217 10.577 (3.68.48.459 96.61.817 (1.59.41.000 26.767) 4.110) (7.839 8.364) (20.663) 11.73.79.72.447 3.63.437) (24.81.18.44.823 (22.000 (69.98.41.26.80.343) (4.946 (20.00.259 9.219) 28.93.91.015) 6.03.284 10.93.77.42.38.486 (3.900 12.2008 Rupees A.158 1.64.30.45.150) (1.10.638) 2.49.07.35.04.89.00.442) 1.49.854) 16.302 4.ANNUAL REPORT 2008-09 Cash Flow Statement for the year ended 31st March 2009 2007 .979) 14.66.50.59.304 Rupees Rupees Rupees 64 .24.23.34.69.31.910 (9.918 32.692) 5.805 19.209 3.81.150 94.62.92.64.93.75.020) (15.09.65.

22. R.108 Rupees Rupees Rupees As per our report of even date For S.05.71.233) 6.Continued 2007 .361 (2.54.108 2.44.28.10. CASH FLOW FROM FINANCING ACTIVITIES Proceeds from issuance of share capital on exercise of options Repayment of Bank borrowings / Term Loans Proceeds from Bank borrowings / Term Loans Dividend Paid Dividend Tax Paid Interest Paid Net Cash Generated / (Used) in Financing Activities Net (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents as at the beginning of the year Cash and Cash Equivalents as at the end of the year CASH AND CASH EQUIVALENTS COMPRISES OF: Cash in Hand Balance with Banks (Refer Note 3 below) TOTAL Notes: 1 2 3 The above Cash Flow Statement has been prepared under the “Indirect Method” as set out in the Notified Accounting Standard . 2.88.72.16.08. BATLIBOI & CO.492) (32.Cash Flow Statement .98.341 4. : 36738 For and on behalf of the Board of Directors of ION EXCHANGE (INDIA) LIMITED G.248 2.32.267 2.936 (2.63. RANGANATHAN Chairman RAJESH SHARMA Vice Chairman & Managing Director MILIND PURANIK Company Secretary Place : Mumbai Date : 19th June 2009 Place : Mumbai Date : 19th June 2009 65 .999) (9.536 (1. S.84.354) 39.01.95.39.515 11.01.48.24.58.052) (1.515 4.922) (43.650 (15.04.00. 3.68.87.350 (34.84.54. Figures in bracket indicate cash outgo.00.39. Cash and Cash Equivalents excludes the following Balances with Bank: (a) On Deposit Account [Earmarked under Rule 3A of Companies (Acceptance of Deposits) Rules.48.39.39.2008 Rupees C. 11.909) (7.39.81.04.02.63.30.042 (2007-2008 : Rs.181) 34.108 19.700 4.42.16.000) (b) On Margin Money Account Rs. 46.53. Chartered Accountants per VIJAY MANIAR Partner Membership No.847) 4 Previous year’s figures have been regrouped/rearranged to conform with current year’s classifications.13.3 on Cash Flow Statements.01. 86.408 4.81.668) 13.000 (2007-2008 : Rs.488) (10.27.593) 4.29.27. 1975] Rs.27.51.64.31.80.

723 52.000 Equity Shares of INR 10 each Aqua Investments (India) Limited.70.064 62.34.574 62.79.263 1.617) SGD 30.700 Equity Shares of INR 10 each 5 Percentage of shares held in subscribed capital of Subsidiary Company 6 Net aggregate amount of Subsidiary’s profit/(losses) so far as relates to Holding Company not dealt with Holding Company’s Accounts: i) for the Subsidiary’s financial year ended 31st March 2009.000 5.745) BDT BDT INR 5.94. Ltd.000 Equity Shares of INR 10 each 17.19.00% (79.690) INR INR INR 1.83.14. 1st April 2008 to 31st March 2009 17.000 Equity Shares of 100 BDT each 1.08.00% 60.05.60.50.14. (Consolidated) IEI Environmental Management (M) Sdn.132) (58.42% 100.04.74. Ion Exchange Asia Pacific Pte.000 1 Name of subsidiary Company Ion Exchange Enviro Farms Ltd. ii) for its previous financial years INR INR INR For and on behalf of the Board of Directors of ION EXCHANGE (INDIA) LIMITED G.110 BDT 40. INR ii) for its previous financial years INR INR 7 Net Aggregate amount of Subsidiary’s profit/(losses) so far as relates to Holding Company dealt with Holding Company’s Accounts: i) for the Subsidiary’s financial year ended 31st March 2009.000 Equity Shares of USD 1 each 1.00. Ion Exchange Environment Management (BD) Limited Ion Exchange LLC Ion Exchange & Company LLC Ion Exchange Infrastructure Limited ANNUAL REPORT 2008-09 66 78.129) INR INR (64.231) (55.44.10.906 21.11.719) (12.74% 99.50.00% 60.480 USD (2.986 Nil Nil Nil INR INR Nil Nil INR INR Nil Nil SGD SGD INR Nil INR Nil SGD Nil Nil Nil MYR MYR MYR Nil Nil Nil BDT BDT BDT Nil Nil Nil USD USD USD Nil Nil Nil OMR OMR OMR Nil Nil Nil INR INR INR Nil 5.000 Equity Shares of OMR 1 each 1st April 2008 to 31st March 2009 1st April 2008 to 31st March 2009 1st April 2008 to 31st March 2009 1st April 2008 to 31st March 2009 1st April 2008 to 31st March 2009 1st April 2008 to 31st March 2009 1st April 2008 to 31st March 2009 5.000 Equity Shares of INR 10 each 10.83.87.327) OMR OMR OMR (6. S.000 Equity Shares of USD 1 each 90.264) INR 7.000 Equity Shares of 100 BDT each 1.000 Equity Shares of OMR 1 each 17.69.13.00% 100.971) (5.200 Equity Shares of INR 10 each 4.00% 51.80.000 Equity Shares of MYR 1 each 10.000 Equity Shares of SGD 1 each 2.200 Equity Shares of INR 10 each 17.47.43% 99.00.614) SGD SGD 32.96.793) USD (2.761) MYR 6. 2 Financial Year of subsidiary Company ended 1st April 2008 to 31st March 2009 3 Number of shares held in Subsidiary Company 5.855) (1.70.60.50.59.825 MYR MYR (1. Bhd. 1956 relating to Subsidiary Companies Watercare Investments (India) Limited.534) USD (4.84. RANGANATHAN Chairman RAJESH SHARMA Vice Chairman & Managing Director MILIND PURANIK Company Secretary Place : Mumbai Date : 19th June 2009 .03.12.000 Equity Shares of INR 10 each 4.00.78.000 Equity Shares of MYR 1 each 10.Statement pursuant to Section 212 of the Companies Act.406) (8.723) (7.868) INR INR (62.000 Equity Shares of INR 10 each 4 Total issued share capital of Subsidiary Company 6.60.10.10.00% 100.31.000 Equity Shares of SGD 1 each 1.53.

7.73. and also the Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement for the year ended on that date annexed thereto. as at 31st March 2009. give a true and fair view in conformity with the accounting principles generally accepted in India: (a) in the case of the Consolidated Balance Sheet. if any. maintenance expenses aggregating Rs. However. : 36738 Place : Mumbai Date : 19th June 2009 2. in the case of the Consolidated Profit and Loss Account. as well as evaluating the overall financial statement presentation. of the state of affairs of the Group as at 31st March 2009. As stated in Note 10 in Schedule 17. Accounting for Investments in Associates in Consolidated Financial Statements and Accounting Standard (AS) 27. is presently not ascertainable. 78. has filed an appeal with the Hon'ble Supreme Court of India against the order of Securities Appellate Tribunal for winding up of the Collective Investment Schemes and refunding the monies to investors with returns. We report that the consolidated financial statements have been prepared by the Ion Exchange (India) Limited's Management in accordance with the requirements of Accounting Standards (AS) 21. of the cash flows for the year ended on that date. the effect of which is presently not ascertainable. we are of the opinion that the attached consolidated financial statements.096 for the year then ended. 2. (b) (c) 4. and in the case of the Consolidated Cash Flow Statement. R. Financial Reporting of Interests in Joint Ventures [notified pursuant to the Companies (Accounting Standards) Rules. 2006]. Batliboi & Co. We have audited the attached Consolidated Balance Sheet of Ion Exchange (India) Limited and its Subsidiaries. An audit includes examining. whose financial statements reflect total assets of Rs. 67 . 5. subject to our remarks in paragraphs 5 and 6 above. Chartered Accountants per Vijay Maniar Partner Membership No. We believe that our audit provides a reasonable basis for our opinion. 5. Consolidated financial statements. Accounting Standards (AS) 23. if any.72. We conducted our audit in accordance with the auditing standards generally accepted in India. These financial statements are the responsibility of Ion Exchange (India) Limited's Management and have been prepared by the Management on the basis of separate financial statements and other financial information regarding components. Pending the final outcome of this matter.20.08. on a test basis. These financial statements and other financial information have been audited by other auditors whose reports have been furnished to us. Ion Exchange Enviro Farms Limited.166 is considered as fully recoverable by Ion Exchange Enviro Farms Limited. and our opinion is based solely on the report of other auditors. Associates and Joint Venture ('the Group'). Our responsibility is to express an opinion on these financial statements based on our audit. Our audit report on the consolidated financial statements for the year ended 31st March 2008 was also modified in respect of the matter stated above. An audit also includes assessing the accounting principles used and significant estimates made by Management. of the profit for the year ended on that date. and to the best of our information and according to the explanations given to us.Auditors’ Report To The Board of Directors Ion Exchange (India) Limited 1.16.34. evidence supporting the amounts and disclosures in the financial statements. 6. required to be made to the accompanying financial statements. 62. We did not audit the financial statements of certain Subsidiaries. For S.509 and net cash flows amounting to Rs. in view of the significant uncertainties involved. Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other financial information of the components. 3. As stated in Note 11 in Schedule 17. the total revenue of Rs.102 as at 31st March 2009. Our audit report on the consolidated financial statements for the year ended 31st March 2008 was also modified in respect of the matter stated above. the amount of provision for eventual non-recovery of maintenance expenses.99. we are unable to comment on the liability. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.77. a subsidiary company.

LOANS AND ADVANCES Inventories Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances (A) Less: CURRENT LIABILITIES AND PROVISIONS Current Liabilities Provisions (B) NET CURRENT ASSETS (A .786 23.51.83.99.15.318 65.17.52.41.98.72.000 82.26.32.85.15.60.77.58.23.ANNUAL REPORT CONSOLIDATED BALANCE SHEET as at 31st March 2009 Schedules Rupees I.452 2.30.25.83.820 2.37.98.368 59.200 2.53.123 55.033 1.96.62.653 13.662 67.74.44.66.99.02.110 1.08.59.586 3.30. S.98.68.39.30.821 57.26.51.200 13.46.475 3. As per our report of even date For S.06.22.380 1.786 1.28.962 65. including capital advances INVESTMENTS CURRENT ASSETS.708 2.99.15.59.01. BATLIBOI & CO.04.79.B) TOTAL Notes to Accounts Rupees 31st March 2008 Rupees Rupees 1a 1b 2 12.610 3.191 1.54. R.00.59.05.78.77.36.367 2.56.130 1.06.36.681 1.70.561 12.50.18.06.05.16.45.40.90.66.22.40.51.59.29.530 17 2.73.76.61.56.407 2.06.15.06.555 3.819 1.635 69.12.502 66.43.87.441 1.85.43.42.63.36.11.765 5 6 7 8 9 10 11 2.44.49.32.68.289 13. APPLICATION OF FUNDS FIXED ASSETS Gross Block Less: Accumulated Depreciation / Amortization Net Block Capital Work-in-Progress.89.02.485 1.541 67.89.497 3. RANGANATHAN Chairman RAJESH SHARMA Vice Chairman & Managing Director MILIND PURANIK Company Secretary Place : Mumbai Date : 19th June 2009 68 Place : Mumbai Date : 19th June 2009 .29.79.01.06.09.841 1. : 36738 For and on behalf of the Board of Directors of ION EXCHANGE (INDIA) LIMITED G.15.286 2.390 43. Chartered Accountants per VIJAY MANIAR Partner Membership No.18.68.821 2.93.30.141 66.950 The schedules referred to above forms an integral part of the Consolidated Balance Sheet.55.000 4 1.031 15.12.76.36.24.555 5.31.14.14.866 1.91.24.24.03.390 3 58. SOURCES OF FUNDS SHAREHOLDERS’ FUNDS Share Capital Stock Options Outstanding Reserves and Surplus MINORITY INTEREST LOAN FUNDS Secured Loans Unsecured Loans DEFERRED TAX LIABILITY (NET) (Refer Note 12 on Schedule 17) TOTAL II.91.964 80.39.334 7.670 32.530 79.786 3.90.89.01.42.

10 (2007-2008 : Rs.06.34.52.56.64.29.40.31 7.084 1.62.214 18.78.62.25.99.59.262 59.765 53.40.35.60.18.15.88.45.201 3. BATLIBOI & CO.08.100 11.769 6.66.86.44.113 10.236 43.84.53. Chartered Accountants per VIJAY MANIAR Partner Membership No.73.72.22.20.23.74.66.37.518 3.53. RANGANATHAN Chairman RAJESH SHARMA Vice Chairman & Managing Director MILIND PURANIK Company Secretary Place : Mumbai Date : 19th June 2009 Place : Mumbai Date : 19th June 2009 69 .177 4.060 5. As per our report of even date For S.312 13 14 15 16 4 1.210 15.01.84.274 1.050 1.84.25.432 2.73.35.47.95.66.92.593 9.74.2008 Rupees 5.30.78.58.79.90.61.33 1.94.07.Current Tax .79.891 4.343 67.93.91.95.08.79 7.44.29.30.000 6.73.65.11.404 78.172 1.022 44.97.21.00.46.90.163 2.14.55.84.71.83. 10)] (Refer Note 20 on Schedule 17) Basic Diluted Notes to Accounts 17 12 5.76.CONSOLIDATED PROFIT AND LOSS ACCOUNT for the year ended 31st March 2009 Schedules Rupees INCOME Sales and Services (Gross) Less: Excise Duty Recovered on Sales (Refer Note 25 on Schedule 17) Sales and Services (Net) Other Income Share of Earning of Associates (Net) TOTAL EXPENDITURE Cost of Goods Sold Operation and Other Expenses Interest Depreciation / Amortization Less: Transfer from Revaluation Reserve TOTAL PROFIT BEFORE TAX Provision for Taxation .38.29.470 4.49.05.645 50.04.04.21. : 36738 For and on behalf of the Board of Directors of ION EXCHANGE (INDIA) LIMITED G.18.57.76.22.543 9.68.323 10.88.86.51.871 4.243 1.455 71.664 10.59.35.000 6.219 7.Deferred Tax charge (Refer Note 12 on Schedule 17) .500 5.620 1.39.561 21.194 Rupees 2007 .04.308 3.66.504 1.184 5.95.70.272 5.00.423 5.405 4.12.719 10.31 The schedules referred to above forms an integral part of the Consolidated Profit & Loss Account.71.64.031 6.55.416 1.470 5.394 3.522 1.22.90.21.647 28.23.90.759 5.970 28.312 8.517 1.891 8.100 27.26. R.20.Fringe Benefit Tax PROFIT AFTER TAX Less: Minority Interest Profit After Minority Interest Balance brought forward from Previous Year PROFIT AVAILABLE FOR APPROPRIATION APPROPRIATIONS Dividend (Refer Note 26 on Schedule 17) Tax on Dividend Proposed Final Dividend Tax on Proposed Dividend Transfer to General Reserve SURPLUS CARRIED FORWARD TO BALANCE SHEET EARNINGS PER SHARE [Nominal value of shares Rs.30.040 5.274 98. S.158 2.20.53.40.656 1.86.

000 14.63.110 12.297 1. 6.22.98.46.470 11.023 1.57.600 (2007-2008 : 9.68.900 (2007-2008 : 1.000 15.62.363 1.91.2 RESERVES AND SURPLUS Capital Reserve Capital Reserve on Consolidation Special Reserve (As per Section 45 .78.66.878 3.65.585 (60.64.210 28. Refer Note 8 on Schedule 17.467 6.79.950) Equity Shares have been allotted to the directors and employees under Employees Stock Options Scheme – ESOS . 10 each.66.90. 20. Also.000 13.000 12. pursuant to the Scheme of Amalgamation of the erstwhile HMIL with the Company.66.01.00.52.90.000) Equity Shares of Rs.05.74.90.312 1.000 14.914 (77.64.90.15.78. 10 each.00.00.000 (2007-2008 : 1.060 11.000) Equity Shares of Rs.297 50.00.00.53.29.1a SHARE CAPITAL Authorised: 1.500 (2007-2008 : 6.00.184) Equity Shares of Rs.281) 6.745 1.78.660 74.23.79.50.000 (2007-2008 : 10.35.64.748 15.91.83.700) Equity Shares.675 (2007-2008 : 5.01.700 (2007-2008 : 6.76.30.011) Equity Shares of Rs. have been allotted to the shareholders of erstwhile Hydranautics Membranes India Limited (HMIL) at the meeting of Board of Directors held on 15th May 2000.57.000 (2007-2008 : 1.46.70.00.01.67. 5.004 (19.65.090 74.22.470 11.05. 3.13.2005 respectively upto 31st March 2009.19.82.184 (2007-2008 : 20.88.1b STOCK OPTIONS OUTSTANDING (Refer Notes 3(x) and 8 on Schedule 17) Employee Stock Options Outstanding Less: Deferred Employee Compensation Outstanding Rupees Rupees 31st March 2008 Rupees 4.380 12.55.675) Equity Shares and 7.36. fully paid-up. 2.467) (18.55.600) Equity Shares of Rs.210 4.84.36. Rupees 31st March 2008 Rupees 15.ANNUAL REPORT Schedules forming part of the Consolidated Balance Sheet as at 31st March 2009 SCHEDULE .23.32. 9.83.00.83.194 1.814) (19.46.67. 10 each are allotted as fully paid-up.00.391) 6.740 4.00.45.610 15.36. fully paid-up. 10.72.606 6.000) and 1. for consideration other than cash. ESOS 2003 and ESOS .254 4.13.00.610 12. 10 each are allotted as fully paid-up Bonus Shares by capitalisation of Revenue Reserve/ Share Premium.50.441 SCHEDULE .582 1.2001.77.70.680 28.485 2.561 (2007-2008 : 1.110 Of the above: 1. pursuant to a contract.20.64.64.73.000 12.40. 4. 5.52.29.97.45.1C of the Reserve Bank of India Act) Revaluation Reserve (Refer Note 3(i) on Schedule 17) Balance as at 1st April Less: Transfer to Profit and Loss Account Contingency Reserve General Reserve Balance as at 1st April Add: Transfer from Profit & Loss Account Security Premium Account Balance as at 1st April Add: Received on account of Employee Stock Option Plan Foreign Currency Translation Reserve Balance as at 1st April Add: Foreign Currency Translation Profit / (Loss) during the year Profit and Loss Account Group’s Share in Joint Venture 26.63.297 69.706 18.56.873 16.060 26.00.65.51.32.914 22.00.64. Issued. The subsidiaries Aqua Investments (India) Limited and Watercare Investments (India) Limited hold 1.130 70 .00.64.873 16. SCHEDULE .900) shares respectively in the Holding Company which have been eliminated during consolidation.297 74.281) 34. Subscribed and Paid-up: 1.62.06. 10 each.50.03.745 1.

58.42.00.05. both present and future. 2. both present and future. mortgage of all immovable properties.20.69.09.62. 28. Packing Credit Loan from Banks Primary Security: Secured by joint hypothecation of Book Debts and Stocks.10.29.94.62.92.92. 1.000 6. Inter Corporate Deposit [Due within one year Rs.37.00.00.17.35.18.077 1.85. Term Loan from a Bank Secured by First Charge by way of mortgage and hypothecation of all movable and immovable properties situated at Vashi.200 1.570 14.000)] I.13.355)] F. Term Loan from a Bank Secured by First Charge by way of mortgage and hypothecation of all movable and immovable properties situated at Vashi.89. [Due within one year Rs.00.000 4.355)] [Due within one year Rs.27.87.000)] G. 1.000 4.77.000 2. 1. C.326 (2007-2008 : Rs.35.35.76.000 16. Overdraft from a Bank Secured by a charge on the fixed deposit E.679 31.000 3.65. 1.000 (2007-2008 : Rs.41.255 7.22. Cash Credit from Banks Secured by hypothecation of Book Debts and Stocks pertaining to a project.000 (2007-2008 : Rs.76.442 19.823)] Group’s Share in Secured Loan of Joint Venture 2.61.66. of a subsidiary.000)] B.00.87.00. 4.Schedules forming part of the Consolidated Balance Sheet as at 31st March 2009 SCHEDULE . Further. Fixed Deposits [Due within one year Rs. UNSECURED LOANS A.05. Collateral Security: By way of first charge on all immovable and movable properties and plant and machinery situated at Hosur and Patancheru.660 65. [Due within one year Rs.00. 1.000 (2007-2008 : Rs.00. 6.000 (2007-2008 : Rs.66. 3.000)] 23.11. [Due within one year Rs.66.66.59.24.000 6.58.00.00.59. Vashi and Goa.355 36.06. B.87. Further.00.66.46.000)] C. SECURED LOANS A. D. 1. by way of second charge on movable and immovable properties situated at Mumbai (Office Premises).41.50.000)] H. Loan from a Bank Secured by First Charge by way of mortgage of immovable property situated at Mumbai [Due within one year Rs.50. 4. 2.05.50. Nil (2007-2008 : Rs. Vashi and Goa.16.73.073 2. Loan from Banks [Due within one year Rs. 16.90.000 (2007-2008 : Rs. 37.008 58.67.876 Rupees 31st March 2008 Rupees 71 .48.48.000 1. by way of second charge on movable and immovable properties situated at Mumbai (Office Premises). 1.99.573 (2007-2008 : Rs. Goa and Ankleshwar. Term Loan from a Bank Secured by way of hypothecation of all movable fixed assets. both present and future. Vehicle finance from Banks Secured by hypothecation of vehicles.49.000 1.00.000 13.000 1. Goa and Ankleshwar.186 19. 1. [Includes interest accrued and due Rs.12.85.786 2.21.32.3 LOAN FUNDS 1. Cash Credit from Banks (including working capital demand loan) Primary Security: Secured by joint hypothecation of Book Debts and Stocks.19.073 (2007-2008 : Rs.000 1.27.20.66. Collateral Security: By way of first charge on all immovable and movable properties and plant and machinery situated at Hosur and Patancheru.00.805 2.49.000 9.25.42.

53.43.53.02.329 26.962 59.89.01.45.20.62. 250 (2007-2008 : Rs.867 6.647 4.319 66. 250) being the value of 5 Shares (unquoted) of Rs.25.593 1.141 59.11.55.15.64.586 1.03.108 30.66. the Society formation of which is in progress.069 14.564 35.394 14.109 27.645 66.011 Buildings on Leasehold Land 21.72. the cost of which includes: .68. 4.70.06.669 1.18.065 1.159 Group’s Share in Joint Venture (B) Total (A) + (B) 1.368 Previous Year 99.86.449) Accumulated depreciation Rs.14.83.19.302 21. 50 each.984 5.500 (2007-2008 : Rs.61.62.234 33.492 3.25.32.09.52.16.98.787 33.530 9.85. 4.26.33.62.30.169 1. 62. Includes Ownership blocks comprising of 2 LIG flats (Nos.593 6.58.24.23.84.639 6.319 80.91.72.630 (2007-2008 : Rs. B-14) at Hosur.000) in respect of premise at Mumbai.81. 3.01.84.959 30.147 87.16.967 66.27.930 2.09.835 6.938 21.547 23.83.43.15.43.188 9.548 65.449 (2007-2008 : Rs.264 2.36.27.133 1.51.53.63.290 3.44.37.16.47.334 Furniture.84.631 14.900 18.02.807 3.53.368 35.481) paid for acquiring furnished office premises.146 22. 86.803 15.50.821 62.84.184 2.34.25.00. 7.90.01.15.48.11.538 19.07.630) Net book value Rs.01.591 (2007-2008 : Rs.58.56.22.488) .73.407 59.569 27.372 7.300 66.55.91.970 19.33.86.21.96.86. 22.209 Schedules forming part of the Consolidated Balance Sheet as at 31st March 2009 SCHEDULE .77.31.765 67.37.848 4.82.16.241 3.247 87.32. 3.39.161 2. fully paid up in Usha Milan Co-operative Society Limited.11. Fixture and Office Equipments 23.380 3.84.447 1.76.547 2.681 65.29.43.821 39. 50 each.208 (2007-2008 : Rs.18.593 87.30.61.25.171 24.00.106 66.236 Buildings on Freehold Land (Refer Notes 1.985) Notes: 1.659 23.530 3.364 Vehicles 3.198 72.64.538 38.50. 2 and 3 below) 17.502 55.85.69.85.593 28.47.221 16. 25.86.91. 7.057 6.32.87.400 8.23. 4. for which transfer formalities are in progress.441 49.33.29.03.02.62.375 8.88.07.78. Nil (2007-2008 : Rs.992 52.02.766 Intangible Asset Non-Compete Fee Total (A) 1.593 5.77.030 2.21. 79. 3.48.10.84.33.789 2.25.09.52.639 18.430 69.83.45.777 3.511 1.817 2.91.43.ANNUAL REPORT 72 (in Rupees) Gross Block As at 1st April 2008 Additions during the year Deductions/ Adjustments during the year Add : Exchange Gain / (Loss) As at 31st March 2009 As at 1st April 2008 Depreciation / Deductions/ Amortization Adjustments during the during the year year Add : Exchange (Gain) / Loss As at 31st March 2009 As at 31st March 2009 Depreciation / Amortization Net Block As at 31st March 2008 87. Capital Work-in-Progress includes amount of Rs.988 Plant and Machinery (including Electrical Installation) 56.30.521 17.118 1.90. the title deeds of which are awaited from authorities.61.59.820 42.866 20. 25.Rs.08.593 1.23.66.41.80.663 2.Rs.80.114 59.134 1.262 15.00.262 9. .01.82.130 14.10.82.500) being the value of 70 Shares (unquoted) of Rs.16. Includes Ownership blocks acquired at Mumbai.53.38.17.08.18.97.48.481 (2007-2008 : Rs.07.96.17.83.41.65.69.961) Depreciation for the year Rs.858 (2007-2008 : Rs.01.52.88.64.74.87.02.72.68.24.62.42.35.37.4 FIXED ASSETS Particulars Tangible Assets Land (Freehold) Land (Leasehold) 2.60.06.392 1.21.151 Capital Work-in-Progress (Refer Note 4 below) (Including advance on capital account Rs.48.631 36.59. 5.02.541 67.01. 2.13. B-16 and B-17) and 1 MIG flat (No.589 58. the ownership of which is under legal dispute and Rs.109 27. Includes Ownership blocks. 3.09.48.767 14.902 2.612 87.77. Buildings on Freehold Land includes buildings given on operating lease : Gross Book Value Rs.22. 3.49.40.400 4.90. fully paid up in Sunrise Co-operative Housing Society Limited.000 17.31.091 1.01.29.502 57.86.134 1.41.

44.715 (2007-2008 : Rs. fully paid-up 1.000) Equity Shares of Rs.20.30.47. 1. fully paid-up [Net of provision for diminution in the value: Rs.53.30.919 1.19.00. fully paid-up [Net of provision for diminution in the value: Rs.50. 10 each.50.000 Rupees 31st March 2008 Rupees - - 75.50.53.625 (2007-2008 : 3.000 50.000 2.000) Equity Shares of Rs.00.53.50.000 2. fully paid-up [Includes Goodwill aggregating Rs. TRADE AND UNQUOTED INVESTMENT IN ASSOCIATES Shares in Ion Exchange Services Limited 3.500) Equity Shares of Rs.00.81.000) Equity Shares of Rs.000) Shares of MYR 1 each.000 (2007-2008 : 62. 10 each.Schedules forming part of the Consolidated Balance Sheet as at 31st March 2009 SCHEDULE . 10 each.000 (2007-2008 : 2. Malaysia 3. 1.408 (2007-2008 : Rs. 38.000 10.130 1.000 10.44.05.000 (2007-2008 : 24. 60.15.130 1.400) Equity Shares of Rs. fully paid-up [Includes Capital Reserve aggregating Rs. Nil)] Shares in Ion Exchange Financial Products Private Limited 2.5 INVESTMENTS . 1.000 (2007-2008 : 20.000) Equity Shares of Rs. Bhd.94.909 Aggregate value of Unquoted Investments (A+B) 3.05. 10 each.500 (2007-2008 : 2.000)] Shares in IEI Mansel Services Limited 15. fully paid-up [Includes Goodwill Rs.500 (2007-2008 : 10.000 3. 10 each..56.000 (2007-2008 : Rs.000) Equity Shares of Rs. 10 each.982 73 . Nil)] Shares in Global Composites & Structurals Limited 2.982 27. Nil)] Shares in Aquanomics Systems Limited 2.25% Preference Shares of Rs.000 (2007-2008 : Rs. fully paid-up [Net of provision for diminution in the value: Rs.30.000 35.75. 38. fully paid-up [Includes Capital Reserve Rs. 60.12.000 1.408)] Shares in Total Water Management Services (India) Limited 24. 10 each.25.000) 14. 10 each. 1.52.715)] Shares in IEI Water-Tech (M) Sdn.655 16.000) Equity Shares of Rs. Nil (2007-2008 : Rs.625) Equity Shares of Rs.505 38. 10 each. 74.000 50.070 46.15. 10 each.000 (2007-2008 : 75.19.931 10. fully paid-up Shares in Bharuch Enviro Infrastructure Limited 10.450 (2007-2008 : 2. 74.73. Nil)] Shares in Astha Technical Services Limited 1. Nil (2007-2008 : Rs. fully paid-up Shares in HMG Industries Limited 75.000 (2007-2008 : 2. Nil)] OTHERS Shares in IEK Plastics Limited 6.66.275 56.273 - - - - - - 1. fully paid-up [Includes Goodwill aggregating Rs. fully paid-up. 10 each.19. 100 each.Long Term (at cost) A.37.000 2.26.000 (2007-2008 : 90.00.000 B.300) Equity Shares of Rs.000 (2007-2008 : Rs.000)] Shares in Patancheru Enviro-tech Limited 113 (2007-2008 : 113) Equity Shares of Rs. NON-TRADE AND UNQUOTED 6 Year National Savings Certificates 10.62.909 2. Nil (2007-2008 : Rs.26.300 (2007-2008 : 15.50.66.000 (2007-2008 : 6.450) Equity Shares of Rs.000)] Shares in Bharuch Eco-Aqua Infrastructure Limited 3. 10 each. fully paid-up Shares of Global Procurement Consultants Limited 20.003 9. Nil (2007-2008 : Rs.00. fully paid-up [Includes Goodwill aggregating Rs. Nil (2007-2008 : Rs. [Includes Goodwill Rs.55.

44. 5 each. fully paid-up Aggregate value of Quoted Investments (C) TOTAL (A+B+C) Market value of Quoted Investments as on 31st March 2009 is Rs. 7.200 2.000) Equity Shares of Rs. 32.100) Equity Shares of Rs.000) Equity Shares of Rs.40.000 19. fully paid-up [All Units earmarked under Rule 3A of Companies (Acceptance of Deposits) Rules.100 (2007-2008 : 6.240)] Shares of Mardia Steels Limited 3.835)] Shares of Rajinder Pipes Limited 4.000 each).414) Equity Shares of Rs.389) Rupees 31st March 2008 Rupees 26.041 2.356 89.265 - 2.500) Equity Shares of Rs. fully paid-up [Net of provision for diminution in the value: Rs. 10 each.950 74 .94.240 (2007-2008 : Rs.175 (2007-2008 : 1. 6. 70.299) Bonds of Rs.414 (2007-2008 : 7.74.75% Tax Free US . fully paid-up [Net of provision for diminution in the value: Rs. 3.100 (2007-2008 : 8.83. Nil)] Shares of Jain Irrigation Systems Limited 7.09. 10 each. 10 each. Nil (2007-2008 : Rs.175) Equity Shares of Rs.64 Bonds Nil (2007-2008 : 26.000 89.880 (2007-2008 : Rs. fully paid-up [Net of provision for diminution in the value: Rs.29.600 (2007-2008 : 83.070 12. 10 each. 83. Nil (2007-2008 : Rs.100) Equity Shares of Rs. fully paid-up [Net of provision for diminution in the value: Rs.25% Bonds of Gujarat Urja Vikas Nigam Limited 6 Bonds of Rs.750 2. 1.83.68.295 (2007-2008 : Rs. 3.05.800 (2007-2008 : Rs.897 (2007-2008 : Rs.700 (2007-2008 : 29. 10 each. 1.000 (2007-2008 : 5.356 2. 7.500 (2007-2008 : 4. 100 each.835 (2007-2008 : Rs.82.78.200 75. 10 each.070 12.000 (2007-2008 : 3.750 7. fully paid-up [Net of provision for diminution in the value: Rs. fully paid-up [Net of provision for diminution in the value: Rs. 1.141 3. 1. Nil)] 11.800)] Shares of Sterlite Technologies Limited 1.000) Units of Rs.96.68.ANNUAL REPORT Schedules forming part of the Consolidated Balance Sheet as at 31st March 2009 SCHEDULE .000 (2007-2008 : 87.700) Equity Shares of Rs. 6. 32. fully paid-up Shares of Fairdeal Filaments Limited 83.000 2. 1975] Units of Master Plus of Unit Trust of India 5.000 each (2007-2008 : 6 Bonds of Rs.123 4.75.900 75. NON-TRADE AND QUOTED 6.265 - - - - - - - 7.700 (2007-2008 : 3.94. 10 each.05. fully paid-up Shares of Thambi Modern Spinning Mills Limited 6.20.500 2. 40.700) Equity Shares of Rs.) C.178)] Shares of Canara Bank 8.295)] Shares of Nova Steels Industries Limited 29.000 47.880)] Shares of MTZ Polyester Limited 3.68.178 (2007-2008 : Rs. 10 each. fully paid-up [Net of provision for diminution in the value: Rs.600) Equity Shares of Rs.5 (Contd.39. fully paid-up [Net of provision for diminution in the value: Rs.500 2. 10 each. 32.75. fully paid-up Shares of Somani Swiss Industries Limited 87. 10 each.16.09.

500 86. considered good: Debts outstanding over six months (Refer Note 1 below) Other Debts (Refer Note 2 below) Unsecured.461 13.59. considered doubtful: Debts outstanding over six months Less: Provision for Doubtful Debts Group’s Share in Sundry Debtors of Joint Venture (Refer Note 3 below) 1.02.945 57.95.93.49.27.931 22.77. 4.44.391 1.965) Retention Money not due.05.05.43.13.62.790 14.12.056 93.52.500) Maximum amount outstanding during the year : Rs.308 55.958 (2007-2008 : Rs.61.60.68. 5.367 18.653 (Refer Note 16 on Schedule 17 for dues from Companies under the same Management) Notes: 1.92.670 13. Includes Rs.586 49.8 CASH AND BANK BALANCES Cash on Hand Remittance in Transit Balance with Scheduled Banks: On Current Accounts On Exchange Earner’s Foreign Currency Accounts [USD 4.185 1.6 INVENTORIES (Refer Notes 3 (iv) and (v) on Schedule 17) Raw Materials and Components Raw Material-in-Transit Work-in-Progress (Refer Note below) Finished Goods Finished Goods-in-Transit Stores and Spare Parts Contract Work-in-Progress Group’s Share in Inventories of Joint Venture Note : Work-in-Progress includes Project Development Rs.11.13.000 4.72.06.35.895 (2007-2008 : USD 3.257 3.49.929 (2007-2008 : Rs.993 6.87.25.421 59.60.933 1.13.45.05.64.64.289 Rupees 31st March 2008 Rupees 17.22.88.651 1.119 4.020 2. SCHEDULE .81.657 1.29.00.80.000 3.39.789 2.12.933 1.37.95.05.73.487 46.83.078 43. 3.05.933 6.820 30.35.473 2.416 31.00.30. 1.05.64.78.84. Includes Rs.009) Retention Money not due.80.07.065 15.767 6.858 2.37.92.17. 7.30.51.7 SUNDRY DEBTORS Unsecured.338 3.55.520 13.18.16.269 1.88.Schedules forming part of the Consolidated Balance Sheet as at 31st March 2009 SCHEDULE .04.16.287) Retention Money not due.757 2.17.72.876 7.On Deposit Account [Earmarked under Rule 3A of Companies (Acceptances of Deposits) Rules.667 (2007-2008 : Rs.500 72.09.55.64.23.29.489 1.21.89.91.81. 1975] On Margin Money Account On Unclaimed Dividend Account On Unclaimed Interest on Fixed Deposits Balance with Non-Scheduled Bank: On Current Account (*) Group’s Share in Cash and Bank balance of Joint Venture (*) Balance with Non-Scheduled Bank maintained with National Bank of Dubai : Rs.37. 3.18.966 1.12.43.055 2.24.348 86.23.19.440 16. 5.76.36. 10. 20.031 .180 1.83.426)] On Deposit Account .87.89.84.55.00. 26.77.05.15.586 (2007-2008 : Rs.137 (2007-2008 : Rs.511 11.942 1. 2.233 4.11.32.76.18.12.567 4. 7.93.958) SCHEDULE .40.64.70.64.17.65.31.58.450) 75 86.59.26.093 (2007-2008 : Rs.60. 4. Includes Rs.933 7.10.27.084 2.

64.70.00.00.120 1.011 15. 20.500 (2007-2008 : Rs.71.636 5.20.Considered good .011 32.05.75.05.Considered good (Refer Note below and Note 9 on Schedule 17) .59.38.04.52.898 3.52.64.25.07.23.994 1.489 5.56.290 57.73.59.000 4.000 57.87.898 56. Considered good.26. 24. unless otherwise stated: Advances recoverable in cash or in kind or for value to be received .23.20.39.011 17.12.49.Considered doubtful Less: Provision for Doubtful Deposits Balances with Excise Authorities Inter Corporate Deposits .964 25.636 1.82.84.00.15.635 32.72.84.01.22.56.183 69.977 4.14.56.737 25.94.27.75.14.42. Security and other Deposits [Includes Security Deposit for Land Rs. 24.567 5.18.70.00.166 3.00.23.166 1.59.667 51.2.05. 24.72.42.18.ANNUAL REPORT Schedules forming part of the Consolidated Balance Sheet as at 31st March 2009 SCHEDULE .Considered doubtful Less: Provision for Doubtful Inter Corporate Deposits Maintenance Expenses Recoverable (Refer Note 11 on Schedule 17) .96.000 1.994 2.126 80.448 4.20.00.290 25.Considered good .89.448 3.120 2.28.22.088 5.404 4.78.42.61.23.50.07.548 1.964 15.45.500 (2007-2008 : Rs.23.20.12.00.283 6.38.283 1.000 5.10 LOANS AND ADVANCES A.290 57.00.78.05.54.358)] Unamortized Premium on Forward Contracts Tender.80.82.54.000)] 76 .00.00.71.50.25.00.635 Rupees Rupees 31st March 2008 Rupees 56.32.888 3.94.9 OTHER CURRENT ASSETS Interest accrued but not due Rent receivable Considered doubtful Less: Provision for Doubtful Rent 17. Unsecured.50.000 4. 24.22.15.002 (2007-2008 : Rs.2.964 SCHEDULE .555 4.93.888 51.42.409 26.Considered good .000 5.56. Secured.011 17.497 Note: Advances recoverable in cash or kind or for value to be received include: Loans due from IEI Shareholding Trusts Rs.636 1.Considered doubtful Less: Provision Advances for Repurchases (Refer Note 18 on Schedule 17) Group’s Share in Loans and Advances of Joint Venture 2.59.000 1.07.66.05.882 17.000 57.61. Considered good: Advances recoverable in cash or in kind or for value to be received B.485 (2007-2008 : Rs.00.Considered doubtful Less: Provision for Doubtful Advances Advance Tax and Tax Deducted at Source [Net of provision for taxation aggregating Rs.500) [Maximum amount outstanding Rs.32.404 3.80.07.290 25.485)] .28.636 4.

49.56.286 2.93.93.26.00.415 3.215 7.01.452 2.415 1.295 1.274 1.76.95.59.701 2.232 1.88.11 CURRENT LIABILITIES AND PROVISIONS A.833 4.22.70.Schedules forming part of the Consolidated Balance Sheet as at 31st March 2009 SCHEDULE .089)] Provision for Leave Encashment Provision for Gratuity Proposed Dividend Tax on Proposed Dividend Group’s Share in Provisions of Joint Venture TOTAL (B) TOTAL (A + B) * As at 31st March 2009.841 2.461 1.048 29.27. 23.645)] Group’s Share in Current Liabilities of Joint Venture TOTAL (A) B.295 1.247 5.15.978 2.119 36.772 30.611 11.15.27.59.64.60.73.941 36.813 9.400 24.44.Other than Micro and Small Enterprises Sundry Creditors Other Liabilities Interest accrued but not due Investor Education and Protection Fund shall be credited by the following amounts namely * . there are no amounts due to be credited to Investor Education and Protection Fund.16.73.69.416 31.15.97.80. Current Liabilities: Sundry Creditors .77.931 22.93.535 16.75.74.93.93.89.73.55.571 2.78.71.812 (2007-2008 : Rs.55.084 4.26.000 79.14.21.33.97.54.Unclaimed Dividends .89.000 81.Unclaimed Interest on Fixed Deposits .561 21.22.10.783 6.16. 21.45.27.15.58.16.66.56.00.49.11. 4.786 2.03.57.37.030 1.32.786 68.88.548 26.089 6.43.580 (2007-2008 : Rs.49.35.Unclaimed Matured Deposits Acceptances Deposits Commitment Deposit Under Employees Stock Option Scheme (Refer Note 8 on Schedule 17) Advance from Customers and Progress Claims [Includes advances in respect of engineering contracts Rs.70. 3.11.75.334 15.164 16.76. 2.85.93.55.00. Provisions: Provision for Fringe Benefit Tax [Net of Advance Tax Rs.93.23.555 7.033 Rupees Rupees 31st March 2008 Rupees 77 .03.82.63.791 1.022 44.233 44.60.394 7.Micro and Small Enterprises (Refer Note 30 on Schedule 17) .11.60.

377 18.Finished Goods .50.912 (2007-2008 : Rs.56.22.46.69.72.599 19.57.651 2.056 18.38.11.47.66.482 16.02. SCHEDULE .85.81.31.Contract Work-in-Progress 4.52.49.04.C + D) * Includes direct expenses incurred on contracts Rs.40.82.457 6.77. 2.97.28.73. no longer required.31. 66.100 Rupees Rupees 2007 .17.062)] Group’s Share of Sales and Services Income in Joint Venture [Tax deducted at source Rs.865 20.29.609 10.025)] Note: Includes Rs.730) ** Includes direct expenses incurred on contracts Rs.76.60.76.72.437 (2007-2008 : Rs.430 16.17.12 SALES AND SERVICES Sales (Refer Note 25 on Schedule 17) [Tax deducted at source Rs.213 3. 18.500 20.77.449 (2007-2008 : Rs.18.02.993 6.30.274 3.214 5.89.86. 56.000) received from trade investments.55.832 14.Finished Goods .020 26.178)] SCHEDULE .24.406 3.44.455 55.725 17.673 33.02.324 3.81.50.13.118 (2007-2008 : Rs.33.27.674 39.17.872 7.59. 1.098 7.Finished Goods-in-Transit .256)] Exchange Gain (Net) Miscellaneous Income Write-back of diminution in value of Investments (Net) Group’s Share of Other Income in Joint Venture [Tax deducted at source Rs.314 77.10.98. Raw Materials and Components Consumed* B.656 1.03.03.785 81.942 2.07.211 3.667 5.438 2.42.516 10.637 4.23. 8.269 1.932 (2007-2008 : Rs.480 5.212 17.13.ANNUAL REPORT Schedules forming part of the Consolidated Profit and Loss Account for the year ended 31st March 2009 SCHEDULE .31.75.109 3.81. 5.38.16.450 6.36.14 COST OF GOODS SOLD A.682)] Interest from Others [Tax deducted at source Rs.200 1.181)] Dividend Income (Refer Note below) Amount set aside for liabilities.52.823 1. 83.651 3.23.Finished Goods-in-Transit .942 2.28.693 3.44.066 14.13 OTHER INCOME Scrap Sales Rent [Tax deducted at source Rs.292 2.04.38.823 91.Work-in-Progress .55.12.64.726 2.75.22. 66.93.376) 78 . written back Interest from Banks [Tax deducted at source Rs.24.52.69.14.270)] Income from Input/Projects Income from Intercrops Commission Income from Contract Farming/Produce Marketing Management Fees [Tax deducted at source Rs.620 D.68.81.52. 59.86. 70.20.77.70.504 (2007-2008 : Rs.25.319 5. 1.54.14.50. Group’s Share in Cost of Goods Sold in Joint Venture ** Cost of Goods Sold (A + B .69.056 18.722 (2007-2008 : Rs.000 (2007-2008 : Rs.341 1.38.84.02.17.00. 4.24.567 4.84.23.13.81.19.766 95.045 5.934 17.746 11.993 6.33.242 (2007-2008 : Rs.15.78.489 6.58.92.95.773 5.709 33.94.078 (2007-2008 : Rs.09.47. 10. 24.832 14.917 18.16.179 19.60.82.09.71.565 69.56. 5.27.05.24.27.18. 21.92.07. 3.Contract Work-in-Progress Less: Opening Stocks: .38. 23. Purchase of Traded Goods C.894 5. 27. Increase/(Decrease) in Stocks: Closing Stocks: .72.184 17.88.42.2008 Rupees 50.12.Work-in-Progress .15.76.

000 2.45.320 3.399 22.48.18.07.40.57.594 5.51.931 6.121 1.784 32.Plant and Machinery .210 2.43.593 45.000 2.10.871 79 .012 4.92.76.620) 2.44.000 35.25.45.01.10.68.91.78.04.688 21.68.347 1.162 1. Wages and Bonus .20.907 5.969 1.84.26.18.56.276 4.209 24.46.53.83.Contribution to Provident and Other Funds .75.928 40.121 1.09.26.02.59.522 13.637 51.Salaries.088 3.02.277 9.Others Rent (Net of recoveries) Rates and Taxes Insurance (Net of recoveries) Travelling and Conveyance Excise Duty (Net of recoveries) (Refer Note 25 on Schedule 17) Freight (Net of recoveries) Packing (Net of recoveries) Advertisement and Publicity Commission to Agents and Discount Legal and Professional Charges Telephone and Telex Intercrop Expenses Bad Debts written off Less: Withdrawn from provision for doubtful debts Provision for doubtful advances and deposits Project maintenance expenses written off Less: Withdrawn from provision Auditors’ Remuneration (Refer Note 24 on Schedule 17) Directors’ Fees Bank Charges Loss on Assets sold/discarded (Net) Amortization of Goodwill on Investment in Associates Unrealized Profit on Inventories Backcharges on Contract (Refer Note 27 on Schedule 17) Establishment and Other Miscellaneous Expenses Group’s Share in Operations and Other Expenses of Joint Venture Rupees Rupees 2007-2008 Rupees 39.08.69.23.59.968 55.81.87.35.29.187 37.284 46.922 3.306 2.04.817 41.01.644 1.02.173 9.17.158 1.29.557 10.77.447 11.58.14.53.328 2.236 2.664 35.113 1.47.28.215 1.15.61.955 6.78.434 1.202 28.45.91.133 4.98.685 1.99.10.05.413 10.30.215 3.48.13.66.456 1.649 18.56.63.829 (26.74.708 9.85.Schedules forming part of the Consolidated Profit and Loss Account for the year ended 31st March 2009 SCHEDULE .92.92.99.354 12.96.47.90.90.50.58.89.Buildings .979 1.37.586 2.24.35.125 1.68.30.156 6.21.980 1.Staff Welfare .68.Employee Compensation Expense Stores and Spare Parts consumed Power and Fuel Repairs and Maintenance .86.17.75.23.60.79.35.16 INTEREST On Fixed Loans On Others Group’s Share in Interest Expenses of Joint Venture 3.62.79.272 2.067 28.75.000 24.644 4.58.632 1.34.05.59.92.758 2.632 6.009 7.66.240 11.62.15 OPERATION AND OTHER EXPENSES (Refer Note 21 on Schedule 17) Employee costs (Refer Note 29 on Schedule 17) .35.95.773 1.07.850 3.28.70.63.698 1.84.531 1.08.87.82.76.61.31.34.58.20.42.007 15.468 3.14.000 35.24.724 3.219 SCHEDULE .45.12.35.98.01.24.05.10.32.95.71.249 18.

ANNUAL REPORT
Schedules forming part of the Consolidated Balance Sheet as at 31st March 2009 and Consolidated Profit and Loss Account for the year ended on that date
SCHEDULE – 17 NOTES TO ACCOUNTS 1. a. Accounting Conventions: The financial statements have been prepared under historical cost convention on accrual basis except in case of assets for which revaluation is carried out. The financial statements comply in all material respects with the Notified Accounting Standards by Companies Accounting Standard Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 of India (the “Act”). The accounting policies have been consistently applied by the Company. Principles of Consolidation: The consolidated financial statements relate to Ion Exchange (India) Limited, its Subsidiary Companies, Associates and Interest in Jointly Controlled Entity, (‘the Group’) mentioned in Paragraphs 4, 5 and 6 below. The consolidated financial statements have been prepared on the following basis: – The financial statements of the Company and its Subsidiary Companies have been combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating intragroup balances and intra-group transactions resulting in unrealized profits. Unrealized losses are eliminated unless costs cannot be recovered. – Subsidiaries are consolidated from the date on which effective control is transferred to the Group and are no longer consolidated from the date of disposal. – The difference between the cost of investment in the subsidiaries over the Company’s portion of equity of the subsidiary is recognized in the financial statements as Goodwill or Capital Reserve. – Goodwill on consolidation is amortized over a period of 5 years. – Investments of the Company in Associates is accounted as per the Equity Method prescribed under Notified Accounting Standard 23 – ‘Accounting for Investments in Associates in Consolidated Financial Statements’ under Companies Accounting Standard Rules, 2006 (as amended). – Interest in Jointly Controlled Entity is accounted as per the Proportionate Consolidation Method prescribed under Notified Accounting Standard 27 – ‘Financial Reporting of Interests in Joint Venture in Consolidated Financial Statements’ under Companies Accounting Standard Rules, 2006 (as amended). – Minority interest in the net assets of consolidated subsidiaries consists of the amount of equity attributable to the minority shareholders at the dates on which investments are made by the Company in the subsidiary companies and further movements in their shares in the equity, subsequent to the dates of investments as stated above.

b.

2.

The Company has made further investments in the following Subsidiaries and Associates during the year, which are considered for consolidation: - Ion Exchange Asia Pacific Pte. Limited – Singapore - Ion Exchange Infrastructure Limited b. Associates - Astha Technical Services Limited - IEI Water-Tech (M) Sdn. Bhd. - Malaysia** - Ion Ex change Asia Pacific Pte. Limited - Singapore ** Additional investment through Subsidiary Company - Ion Exchange Asia Pacific Pte. Limited, Singapore a. Subsidiaries

3.

Significant Accounting Policies: (i) Fixed Assets, Depreciation and Impairment: Tangible Assets: Fixed assets acquired before 30th April 1986 are stated at revalued amounts while assets acquired subsequent to that date are stated at historical cost of acquisition less accumulated depreciation and impairment losses, if any. Cost comprises of the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing Cost relating to acquisition of fixed assets which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use. Depreciation is provided at the following rates which is as per the useful lives estimated by the Management, on straight-line basis for assets acquired upto 31st March 1994: Assets Buildings – Other than Factory Buildings – Factory Buildings Plant and Machinery Effluent Treatment Plants Moulds and Dies Furniture and Fixtures Office Equipments Vehicles Computers Depreciation rate applied % 5 5 10/12.5 20 20 10 15 20 16.25

80

SCHEDULE – 17 (Contd.) Depreciation on additions made since April 1994 has been made on a pro-rata basis at the rates as prescribed in Schedule XIV to the Act on straight-line basis or as per the useful lives estimated by the Management, whichever is higher, except for the following: – – – – Farm Equipments are depreciated @15%. Site Equipments are depreciated over 3 years. In respect of certain Associates, the depreciation has been made on pro-rata basis at the rates as prescribed in Schedule XIV to the Act on WDV basis. The impact on account of the different method, however is not material. In respect of certain foreign Subsidiaries, the depreciation has been made on pro-rata basis at the rates and methods as prescribed in the respective local regulations of the country of incorporation. The impact on account of the different rates and methods, is however not material. Leasehold land are amortized over the period of lease.

All assets individually costing less than Rs. 5,000 are depreciated at 100% in the year of acquisition. The incremental depreciation attributable to the revalued amount is transferred from the Revaluation reserve to the Profit and Loss Account. Impairment loss, if any, is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset’s net selling price and its value in use. Carrying amount of assets are reviewed at each Balance Sheet date for any indication of impairment. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at end of its useful life. Net selling price is the amount obtainable from sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal. Intangible Asset: Intangible asset comprises of Non-compete Arrangement. It is recorded at its cost and is amortized over the period of arrangement on straight-line basis. (ii) Foreign Currency Transactions: Transactions in foreign currencies are recognized at exchange rates prevailing on the transaction dates. Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise. Foreign currency monetary items are reported at the year end rates. Exchange differences arising on reinstatement of foreign currency monetary items are recognized as income or expense in the Profit and Loss Account. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. The premium or discount arising at the inception of forward exchange contracts is amortized as income or expense over the life of the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year. None of the forward exchange contracts are taken for trading or speculation purpose. In respect of Non-integral foreign operations, the assets and liabilities, both monetary and non-monetary are translated at the closing rates and income and expenses are translated at average exchange rates and all the resulting exchange differences are accumulated in foreign exchange fluctuation reserve until disposal of the net investment. (iii) Investments: Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. (iv) Inventories: Inventories are valued at lower of Cost and Net Realisable Value. Cost for Raw Materials, Stores and Spares are computed on a weighted average basis. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost for Work-in-Progress includes raw material cost, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Contract cost that has been incurred and relates to the future activity of the contract are recognized as Contract Work-in-Progress as it is probable that it will be recovered from the customer. Cost for Finished Goods includes raw material cost, cost of conversion, other costs incurred in bringing the inventories to their present location/ condition and excise duty. Cost of traded goods is computed on First-in-First-out basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

81

ANNUAL REPORT
SCHEDULE – 17 (Contd.) (v) Accounting for CENVAT: The Company follows on a consistent basis, the “non-inclusive” method of accounting for CENVAT under Central Excise Act with regard to its inventories, purchases and consumption. (vi) Research and Development: Capital expenditure on Research and Development is treated in the same manner as fixed assets. Research Costs are expensed as incurred. Development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be regarded as assured. (vii) Retirement & Other Employees Benefits: a) Retirement Benefits in the form of Provident Fund and Superannuation Fund are defined contribution schemes and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective Trusts. Gratuity Liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on Projected Unit Credit method made at the end of each financial year. Short Term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered. Long Term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per Projected Unit Credit method made at the end of each financial year. Actuarial gains/losses are immediately taken to Profit and Loss Account and are not deferred.

b) c)

d) (viii)

Revenue Recognition: Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Sales are accounted for inclusive of Excise duty but excluding Sales tax. Sales and income from sale of inputs, intercrops, contract farming and produce marketing activities are recognized when the property and all significant risks and reward of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Contract Revenue and Contract Costs in respect of construction contracts, execution of which is spread over different accounting periods, is recognized as revenue and expense respectively by reference to the basis of percentage of completion method of the project at the Balance Sheet date. Determination of revenues under the percentage of completion method by the Company is based on estimates (some of which are technical in nature) concerning the percentage of completion, costs to completion, expected revenue from the contract and the foreseeable losses of completion. Foreseeable losses, if any, which are based on technical estimates, are provided in the accounts irrespective of the work done. The Company does not have outflow on account of warranty given to customers as all the outsourced work has a back to back guarantee. Income from Services: Revenue from maintenance contracts are recognized pro-rata over the period of the contract as and when services are rendered. Income from commission and management fees is recognized on completion of services. Interest: Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividends: Revenue is recognized when the shareholders’ right to receive payment is established by the Balance Sheet date.

(ix)

Taxation: Provision for current taxation and Fringe Benefit tax has been made in accordance with the Indian Income tax laws prevailing for the relevant assessment years. Deferred tax is recognized, subject to the consideration of prudence, on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. If the Company has unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits. The carrying amount of deferred tax assets is reviewed at each Balance Sheet date. The Company writes down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized.

82

(xi) Provisions and Contingent Liabilities: Provisions are recognized when the Company has a present obligation as a result of past event for which it is probable that an outflow of resources will be required and a reliable estimate can be made of the amount of obligation. Initial direct costs such as legal costs. Contingent liability is disclosed for a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation. 83 . (x) Employee Stock Option Scheme: Measurement and disclosure of the employee share-based payment plans is done in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines. Accounting policy for forward exchange contracts is given in 3 (ii). issued by the Institute of Chartered Accountants of India. the differing risks and returns. are classified as operating leases.SCHEDULE – 17 (Contd. (xii) Derivative Instruments: The Company uses derivative financial instruments such as forward exchange contracts to hedge its risk associated with foreign currency fluctuations. including depreciation. Unallocated costs: The unallocated segment includes general corporate income and expense items which are not allocated to any business segment. the organization structure and the internal financial reporting system. (xiii) Earnings Per Share: Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. or a reliable estimate of the amount of the obligation cannot be made. Compensation expense is amortized over the vesting period of the option on a straight-line basis. that sufficient future taxable income will be available against which such deferred tax assets can be realized. are recognized as an expense in the Profit and Loss Account. Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item. The analysis of geographical segments is based on the areas in which major operating divisions of the Company operate. (xvi) Leases: Assets given on operating leases by the Company are included in fixed assets. (xv) Cash and Cash Equivalents: Cash and Cash equivalents in the Balance Sheet comprise Cash at Bank and in Hand and short-term investments with an original maturity of three months or less. Segment policies: The Company prepares its segment information in conformity with the Accounting policies adopted for preparing and presenting the financial statements of the Company as a whole. 1999 and guidance note on Accounting for Employee Sharebased Payments. Lease income is recognized in the Profit and Loss Account on a straight-line basis over the lease term. The unamortized portion of the cost is shown under Stock Options Outstanding. For the purpose of calculating diluted earnings per share. Costs. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates (without discounting to its present value). brokerage costs. etc. the Company re-assesses unrecognized deferred tax assets. as the case may be. The Company measures compensation cost relating to employee stock options using the Intrinsic Value method. Allocation of common costs: Common allocable costs are allocated to each segment according to the turnover of the respective segments. the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. Inter-segment Transfers: The Company accounts for inter-segment sales and transfers at competitive prices. Operating lease payments are recognized as an expense in the Profit and Loss Account on a straight-line basis over the lease term. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain. are recognized immediately in the Profit and Loss Account.) At each Balance Sheet date. (xiv) Segment Reporting Policies: Identification of segments: Segments are identified and reported taking into account the nature of products and services.

Bhd. actual results could differ from these estimates.43 79.60 100.00 42. 4.00 26.60 100. Limited.00 100.61 24. Limited.73 Inclusive of holding through Subsidiary companies – Aqua Investments (India) Limited and Watercare Investments (India) Limited.00 31st.00 100. * Country of Incorporation Malaysia Relationship Associate * Holding through Subsidiary Company – Ion Exchange Asia Pacific Pte.00 50.00 50.58 30. Limited.02 22.00 26.00 60. Singapore 6.) (xvii) Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end.02 22. Bhd. Country of Incorporation India India Malaysia India India India India % of Voting Power as at 31st March 2009 48. Singapore.00 100.73 31st.00 100.00 51. Bhd.00 31st March 2008 99. March 2008 48.60 100.43 79.00 * Holding through Subsidiary Company – Ion Exchange Asia Pacific Pte.00 41.42 99. The Group’s interest in Jointly Controlled Entity considered in the consolidated financial statements: Name of the Company Ion Exchange Waterleau Limited Ion Exchange Dynamics Pte Limited – Singapore* Country of Incorporation India Singapore % of Voting Power as at 31st March 2009 50.00 60. ** Astha Technical Services Limited Aquanomics Systems Limited Ion Exchange Financial Products Pvt.00 48. The Subsidiary Companies considered in the consolidated financial statements are: Name of the Company Aqua Investments (India) Limited Watercare Investments (India) Limited Ion Exchange Enviro Farms Limited (IEEFL) Ion Exchange Asia Pacific Pte. Limited *** Global Composites and Structurals Limited * ** 7.00 60. March 2008 50. *** Holding through Subsidiary Companies – Aqua Investments (India) Limited and Watercare Investments (India) Limited The audited financial statements of the following Company drawn up for the year ended 31st December 2008 have been considered for consolidation.61 24.00 * Holding through Subsidiary Company – Ion Exchange Asia Pacific Pte Limited. Name of the Company IEI Water-Tech (M) Sdn. Singapore 5. Singapore 84 . Limited IEI Environmental Management (M) Sdn.00 60.ANNUAL REPORT SCHEDULE – 17 (Contd.00 100. Although these estimates are based upon Management’s best knowledge of current events and actions.53 48. Holding through Subsidiary Company – Ion Exchange Asia Pacific Pte.42 99.19 9. Ion Exchange Environment Management (BD) Limited Ion Exchange Infrastructure Limited Ion Exchange LLC Ion Exchange & Company LLC Ion Exchange Asia Pacific (Thailand) Limited* Country of Incorporation India India India Singapore Malaysia Bangladesh India USA Oman Thailand % of Voting Power as at 31st March 2009 99. There are no significant transactions which have occurred between the date of financial statement of the Company and the date on which the financial year of the parent Company ended. The Associates considered in the consolidated financial statements are: Name of the Company Total Water Management Services (I) Limited Ion Exchange Services Limited * IEI Water-Tech (M) Sdn.

000 options to directors and other employees at a price of Rs. which constituted a discount of approximately 25% to the price as calculated on the basis of average of two weeks high and low of the share traded on The Stock Exchange.) 8. further granted 5. 94.00.50 per share. the Employee Stock Compensation Committee in its meeting on 2nd April 2004 implemented the Second Employees Stock Options Scheme (ESOS 2003) and granted 6. The vested options are exercisable upto 5th June 2016. 58. 67. The vested options are exercisable upto 26th October 2010. The vested options are exercisable upto 24th July 2011. As in the case of First grant.000 options to directors and other employees at a price of Rs. 25% of the granted options shall vest and become exercisable in July every year. The vested options are exercisable upto 20th July 2009. 54. further granted 3. Mumbai for 13 weeks prior to the date of the grant.50. The Employee Stock Compensation Committee in its meeting held on 5th June 2007. which constituted a discount of approximately 25% to the price as calculated on the basis of average of weekly closing price on The Stock Exchange. the Employee Stock Compensation Committee at its meeting held on 13th October 2008 implemented the Fourth Employees Stock Options Scheme (ESOS 2008) and granted 12. Pursuant to this. As in the case of First grant. Mumbai prior to the date of the grant. 85 . Mumbai for 13 weeks prior to the date of the grant.000 options to directors and others employees at a price of Rs.00. the Second 25% of the options vested in April 2006. the Company has introduced ESOS for its directors and employees. Under the scheme.00 per share which constituted a discount of approximately 25% to the price as calculated on the basis of average of weekly closing price on The Stock Exchange.20 per share which constituted a discount of approximately 25% of the closing market price prior to the date of the grant. Employee Stock Option Scheme (ESOS): ESOS 2001 Pursuant to the resolution passed by the shareholders at the Annual General Meeting held on 27th September 2000. 12. The method of settlement of the above options is equity settled. the Fourth 25% of the options vested in August 2006. Under the scheme. 25% of these options shall vest and become exercisable in June every year. Further. Pursuant to this. which constituted a discount of approximately 25% of the closing market price prior to the date of the grant. As in the case of the First grant.00.00 per share. the Employee Stock Compensation Committee at its meeting on 29th March 2006 implemented the Third Employees Stock Options Scheme (ESOS 2005) and granted 5.00 per share which constituted a discount of approximately 25% to the price as calculated on the basis of average of weekly closing price on The Stock Exchange. Under the scheme. 25% of these options shall vest and become exercisable in June every year. in its meeting held on 20th July 2001. the options shall vest after one year from the date of the grant. 25% of these options shall vest and become exercisable in August every year. the Employee Stock Compensation Committee decided to advance the date of vesting of balance 50% option. pursuant to Shareholders’ approval at the Annual General Meeting held on 4th August 2006. The vested options are exercisable upto 13th October 2013.84. ESOS 2008 Pursuant to the resolution passed by the shareholders at the Annual General Meeting held on 26th September 2008.36. The vested options are exercisable upto 8th August 2010.50. The ESOS Compensation Committee formed for implementation of the scheme.000 options to directors and other employees at a price of Rs. the options shall vest after one year from the date of the grant.000 options to directors and other employees at a price of Rs. The Employee Stock Compensation Committee in its meeting held on 5th June 2007. ESOS 2005 Pursuant to the resolution passed by the shareholders at the Annual General Meeting held on 29th September 2005.500 options to eligible directors and employees of the Company at a price of Rs. which constituted a discount of approximately 25% of the closing market price prior to the date of the grant. further granted 3. The Employee Stock Compensation Committee in its meeting held on 24th July 2006. The vested options are exercisable upto 29th March 2011. the Third and Fourth 25% (in all 50%) of the options vested in October 2006. Pursuant to this. 19.100 options to directors and other employees at a price of Rs. ESOS 2003 Pursuant to the resolution passed by the shareholders at the Annual General Meeting held on 25th September 2003. Under the scheme 25% of these options shall vest and become exercisable in April every year. As in the case of First and Second grant.00.50 per share. the Fourth 25% of the options will vest in June 2012. the Fourth 25% of the options will vest in June 2012. granted 3.SCHEDULE – 17 (Contd. the options shall vest after one year from the date of the grant. 94. Fourth 25% of the options vested in July 2005.00 per share which constituted a discount of approximately 25% to the price as calculated on the basis of average of weekly closing price on The Stock Exchange. Mumbai for 13 weeks prior to the date of the grant. further granted 5. 19.00 per share. The Employee Stock Compensation Committee in its meeting on 8th August 2002. Pursuant to this. The vested options are exercisable upto 5th June 2016. Pursuant to this. Pursuant to this. Mumbai for 13 weeks prior to the date of the grant.000 options to directors and other employees at a price of Rs.

book value of the corpus of the Trust as on the Balance Sheet date and future opportunities.000) 18.81.13.As reported .550 (6.00.02. historical volatility includes early years of the Company’s life.Pro forma 9.00.032 1.500 (3.14.00.934 1.81.14.50.20 117.65.31 0.20.61. Amount (in Rupees) 1.82 63. 24.9% 1 2 7.300 (2.875) (3. 24.ANNUAL REPORT SCHEDULE – 17 (Contd. Since the company used the Intrinsic Value method.548) from its directors and employees under ESOS 2001.125) 35. 11.68.550 (16.650 (800) 2. the Management does not anticipate any ultimate loss arising out of these loans. the impact on the reported net profit and earnings per share by applying the fair value method: Particulars Profit as reported Add : Employee stock compensation under intrinsic value method Less : Employee stock compensation under fair value method Pro forma profit Earnings Per Share Basic .750 (9.Pro forma Diluted .000 35.000) 47.00.52.000 ESOS Schemes 2005 (1st & 2nd Grant) 3.325) 3.) Details of options granted are as follows: Particulars 2001 (1st.82 63. the Company has received Commitment Deposit of Rs. As at 31st March 2009.11.9% 4 2 7.31.01.00.250) 4.12.05 1. 30.82 63.05 In early 90s.500 (2007-2008: Rs.325) 12.000 12.65. Considering the valuation.97.450) (3.65.50.02.60.5% 20% 3. the Company expects the volatility of its share price to reduce as it matures.000) 12.5% 20% ESOS Scheme 2008 1st Grant 58.550 (6.000. 2nd & 3rd Grant) Options outstanding as at 31st March 2008 Granted during the year Lapsed during the year Exercised/ Allotted during the year Outstanding as at 31st March 2009 Exercisable as at 31st March 2009 Figures in bracket denote previous year figures.64. ESOS 2003 and ESOS 2005.950) 2. the Company had given loans to Employees’ IEI Shareholding Trusts. The amount outstanding as at 31st March 2009 is Rs. The Company has carried out valuation of the assets held by the Trusts. Stock Option granted: The weighted average fair value of stock options granted during the year was Rs.500 2008 (1st Grant) 12.94.66.050 (9.250 (3.000 Total 9.64.550) 98.500).000 (3.42.284 3.33 0.72.382 6.000) 17.5% 20% ESOS Scheme 2003 2nd Grant 94 117.250 * The expected volatility was determined based on historical volatility data.80.78.000 (6. The Black Scholes valuation model has been used for computing the weighted average fair value considering the followings inputs: ESOS Scheme 2001 3rd Grant Exercise Price Weighted Average Share Price Expected Volatility * Life of the options granted (Vesting and exercise period) in years Expected Dividends Average risk-free interest rate Expected dividend rate 94 117. 4.85.79.950) 20.650 (3.As reported .9% 4 2 7.048 (2007–2008: Rs.050) 2.250 (10.750 2003 (1st & 2nd Grant) 3.950 (3. 86 .60.650) 72.

48. IEEFL was unable to comply with certain requirements of SEBI (CIS) Regulations.66.04.254 2007-2008 2.03.17.82.82.068 87 . subject to certain conditions. IEEFL has been legally advised that it has got a fair chance of successfully contesting the appeal. SEBI vide order dated 27th November 2003 directed IEEFL to wind up the scheme and refund the monies with returns to investors.574 27. Gross amount due from customers for contract work 1.61.596 3. Particulars Aggregate amount recognized as Contract Revenue In respect of Contracts in Progress as on 31st March : 1) Aggregate amount of Costs incurred and recognized profits (less recognized losses) 2) Amount of Customer Advance received 3) Amount of Retentions C.55. which are to be recovered from future income generated by sale of inter-crop and main crop. However.82.491 1.90. 5.01.156 40. 1999.SCHEDULE – 17 (Contd.25.80. Consequently.66.994) as future returns from crop sales will be available to recover the same.267 9.174 4.208 2.75.08. Contracts in Progress (CIP): Amount (in Rupees) Sr.166 (2007–2008 : Rs.157 29.81.73.911 6. SEBI did not file their reply and asked for time.94. 12. The Management expects that there will be sufficient future returns from crop sales to completely recover all these expenses.82.720 Deferred Tax Assets and Deferred Tax Liability across various countries of operations are not set off against each other as the company does not have a legal right to do so. IEEFL filed an appeal before Securities Appellate Tribunal (SAT) which vide its order pronounced on 5th May 2006 upheld that SEBI order in so far as it relates to refund the monies alongwith the return to the investors by IEEFL and to wind-up of the scheme.13.20.10.849 27. In response to the SEBI (Collective Investment Schemes) Regulations.013 2008-2009 1. During the extended period. Against the aforesaid order.23.58.00.546 1. Being aggrieved by the SAT order.93.83.63. Maintenance expenses recoverable represent expenses incurred on sites sold under the scheme. having regard to various factors such as climatic conditions and matter stated in Note 10 above. 4.67.313 1.02. The Hon’ble Supreme Court has admitted IEEFL’s appeal. no provision has been considered necessary for any liability that may arise. notified by Securities and Exchange Board of India (SEBI) on 15th October 1999. Deferred tax Liability (Net): The break up of net Deferred Tax Liability/Assets is as under: Amount (in Rupees) As at 31st March 2009 Particulars Difference between book and tax depreciation Provision for doubtful debts Provision for other doubtful advances Effect of expenditure allowable for the Tax purposes in following years Business Losses and depreciation Provision for leave encashment and gratuity Others Total Deferred Tax Liability (Net) Deferred Tax Liability 7. In response.72. Ion Exchange Enviro Farms Limited (IEEFL) had applied for registration to SEBI on 14th December 1999.191 Deferred Tax Asset 34.37.31.49.596 7.64. SEBI called upon IEEFL to show cause why the provisional registration granted to it should not be revoked.707 Deferred Tax Asset 35. based on the analysis by an independent expert.37.97. In the month of March 2008. As a matter of prudence. 13. the recoverability of Maintenance Expenses is subject to significant uncertainties. The provisional registration was subsequently extended and expired on 13th February 2003.) 10.00. 11.00.82.45. SEBI had granted provisional registration to IEEFL on 13th February 2001.62.80.889 As at 31st March 2008 Deferred Tax Liability 6.37.833 12.760 3. No. 1999 (the “Guidelines”).84.31.74.42.165 1.99.649 1.506 2.12. The matter was adjourned thereafter. A.731 33.37. IEEFL has filed appeal against the order of SAT in Hon’ble Supreme Court of India on 4th July 2006. The recovery is dependant on farm activities.643 9. the matter was listed for filing reply by SEBI.24. After hearing IEEFL’s submission. B.911 2.68.85. pending the final disposition of IEEFL’s appeal by Hon’ble Supreme Court of India. no provision is considered necessary by the Management for the balance as at the year end of Rs. IEEFL applied to SEBI seeking exemptions from provisions of the regulations which was not granted by SEBI and further vide letter dated 7th January 2003.

26.584) 89.10.01.807) 7.59.45.96.229 12.32.90.771 15.81.44.998 – – 6366.11.10.22.67.79.20.92.03.53.2009 1.2009 31.62.843) (10.44.45.62.807) 2.63.014 ) 1.940) 36.21.83.09.176 3.28.76.16.70.52.810 71.272) 38.75.400 –) 1.84.46.09.99.432) 31.83.93.2009 3. sugar chemicals and paper chemicals.777) 6.40.47.954 ) 63.91.563 –) 2.060 4.63.06.298) 7.03.42.38.60.56.27.120) 21.25.140 ) (22.385 4.45.917) – 3.41.445) 37.95.73.047 59.78.03.00.49.87.884 (40.83.77.17.71.841 5.68.96.95.687 ) 5.39.08.512) 55.886 1.432) 9.319) Revenue External Sales (Gross) Less: Excise duty recovered External Sales (Net) Inter-segmental Sales Other Income Total Revenue Less: Eliminations Add : Interest Income Total Enterprise Revenue Result Segment Results Unallocated Expenditure net of Unallocated Income Interest Expenses Interest Income Profit before Taxation Other Information Segment Assets Segment Liabilities Capital Expenditure Depreciation Non Cash Expenditure other than Depreciation 2. Consolidated Segment information for the year ended 31st March 2009.728 (6.296 ) 29.SCHEDULE .044 ) Engineering 31.28.62.547) 33.770) 1.374 ) 68.392 3.03.79.60.44.829 1.400 (11.03.37. I.93.11.88.34. namely: Engineering Division – comprising of water treatment plants.016) (3.66.30.72.2008 6.81.86.15.000) 1.19. spares and services in connection with the plants.86.79.22.299) 97.90.85.140) 2.59.488 6.626)) 1.59.051 (in Rupees) Outside India 2007-2008 4.2009 Consumer Products Other Business Unallocated Total 31.88.81.784 38.09.171 (15.67.805) (7.23.62.10.81.13.12.03.955) 93.31.272) 38.55.603 47.591) 42.531) 5.699) (11.42.03.323 4.172 72.586 – 9.62.323) 12.23.78.69.08.39.177) 4.419) 1.54.56.684 10.32.43.73.610) 2.97.60.087 4.347 26.47.354) (21.500 ) 10.39.591 34.81.79.2008 31.955 8.31.89.33.22.53.2009 31.94.33.133 1.70.05.25.38.531) 32.07.771) (8.01. (b) The Segment Revenue in the geographical segments considered for disclosure are as follows : Revenue within India includes sales to customers located within India and earnings in India.87.26.66.753) India 5.61.81.74.88.84.642) 1.66.80.755 Additions to fixed assets III.51.59.06.28.23.843) (10.51.28.2009 31.988) 67.87.90.09.03.45.305) 65.364) 1.438) 6.27.74.586) – 1.80.91.775) 18.57.29.58. Consumer Products – comprising of domestic water purifiers. Chemicals – comprising of resins.24.323) 21.32.06.39.805) (7.26.03.42.2008 5.614 Carrying amount of segment assets 3.61.213) (1.600) 3.70.198 3.21.062) 37.80.71.794 3.61.42.060 ) 22.214 (18.747) (99.81.32.81.04.306) 6.72.25.36.95.569 Total 2007-2008 5.040) 5.29.493 3.927) II. Revenue outside India includes sales to customers located outside India and earnings outside India.67.961 1.29.21.201) –) (1.98.50.79.97.76.99.006) 1.17.25.100 (27.347 5.021 14.23.39.308 4.53.26.20. Information about Primary Business Segments 31.616 47.33.938 12.709 88.08.82.17 (Contd.886) 67.50.54.37.68.05.08.51.588) 15.23.407 1.393 6.87.771) 5.36.73.127 64.541 3.069) 12.32.24.37.03.912) 1. Notes: (a) The Company organised its operations into three business segments.563) –) 3.70.08.408) 5.30.03.40.53.34.90.123 2.12.88.75.02.917) –) 2.05.46.531) 6.03.30.518 ) 23.2008 31.45.813) 36. water treatment chemicals.) ANNUAL REPORT 88 (in Rupees) Chemicals 31.99.50.96.23.425 71.569) 27.607 1.10.01.30.55.17.398) 1.21.47.13.068 5.59.400 –) 20.09.72.25. .551 14.531) (14.2008 31.176 27.871) 32.29.53.49.72.06.952) 2.171) 1.37.556 (21.74.01.56.02.548 66.896) 3.05.95.04.22.16.30.40.57.868 –) (3.552 ) 1.94.59.244) 1.80.770) 1.547 20.88.393) 32.59.00.33.43.891) 4.445) 1.198) 5.03.59.18.90.09.790) 3.48.40.03.47.55.519 2008-2009 2007-2008 2008-2009 4.11.92.20.11.96.04.50.54.760) 2.42.56.08.2008 31.43.61.51.30.835) 15.28.58.256) 1.04.21.65.53.752 7.720 (1.55.12.631) 2.371 6.974) 38.42.99.93.88.19.26.55.01.66.53.16.905) 57.53.12.93.390 14.74.217 ) 88.47.28.24.07.871) 32.78.986) 9.23.33.22.279 9.684) 38.61.501 3.25.59.977) 92.60.495 ) 6.03.06. Information about Secondary Geographical Segments 2008-2009 External Revenue (Net) 3.56.80.04.03.15.237) 1.13.371) 4.25.03.20.33.66.771 1.03.694) 5.83.57.34.

839 1. Poonam Sharma .23.13.25.85.25.22.174 67.32.39.SCHEDULE – 17 (Contd.358 10.05. Bhd.05.024 1.358 .080 2.839 67.42.770 6.528 2.26.13.080 8.528 2.63.745 1.950 2.950 2.734 3.871 53.952 46..68.877 2.34. Rajesh Sharma – Vice Chairman & Managing Director Mrs. Aruna Sharma .30.05.515 .223 40.01.024 10.22.000 1.26.49.625 1.59.53.16.12.839 .43.53.63.599 10.68.13.39.13.68.54.89.552 28.40.96.745 Parties referred to in (d) and (e) above 2008-2009 2007-2008 Total 2008-2009 2007-2008 Sale of Goods * Ion Exchange Services Limited Aquanomics Systems Limited Ion Exchange Waterleau Limited Global Composites and Structurals Limited IEI Water-Tech (M) Sdn.57.33. Singapore. Dinesh Sharma .49.57.82.80.68.37.89.539 16.85.851 24.462 15.16. Related Party Disclosures (As identified by the Management) a) Associates Ion Exchange Services Limited Aquanomics Systems Limited IEI Water-Tech (M) Sdn.599 2.Brother Mrs.551 16.59.00.75.43.68.984 58. Bhd.23.33.280 8.223 40.766 8.42.89.33.877 2.30.38.528 1.76. Malaysia Astha Technical Services Limited Total Water Management Services (I) Limited Ion Exchange Financial Products Pvt.16.48.17.586 6.16.96.48.770 13.16.159 9.552 4.26. Limited Global Composites and Structurals Limited Ion Exchange Waterleau Limited Ion Exchange Dynamics Pte. Transactions during the year with Related Parties except Entity having significant influence with outstanding balances as at year-end: Amount (in Rupees) Nature of transaction Parties referred to in (a) and (b) above 2008-2009 2007-2008 25.68.50.30.82.12.34.586 6.16.555 89 .839 2.839 67.00.25.05.00.11.766 10.40.00.12.68.04.66.32.92. Limited.58.599 2.Wife Mr.76.93.555 4.28.734 3.93.85.515 6.401 1.75.15.42.766 67.37.33.460 28.917 2. Pallavi Sharma – Daughter b) c) d) e) Joint Venture Entity having significant influence Key Management Personnel Relatives of Key Management Personnel * Joint Venture of Subsidiary Company – Ion Exchange Asia Pacific Pte.30.13.16. Limited.28.85.000 1.12.33.80.96.00.984 6.460 11.42. Malaysia Sub-Total Management Fees Ion Exchange Services Limited Sub-Total Rental Income Ion Exchange Waterleau Limited Sub-Total Services Rendered Ion Exchange Waterleau Limited Sub-Total Purchase of Goods/ Materials Aquanomics Systems Limited Global Composites & Structurals Limited Ion Exchange Services Limited Ion Exchange Waterleau Limited Sub-Total Services Received Ion Exchange Services Limited Total Water Management Services (I) Limited Astha Technical Services Limited Global Composites & Structurals Limited Sub-Total 6.48.) 15.68.13.625 16.38.89.05.04.832 14.96.832 14.66.Wife of Mr.871 53.75.551 10. I.539 2. Dinesh Sharma Ms.599 2.357 .280 8.11.75.080 8.952 2.080 2.851 10.401 1.462 24.40.839 46.917 2.26.50.68.159 9.00.68..17.917 .05. Singapore * IEI Shareholding Trusts Mr.01.92.174 1.54.40.11.48.357 13.528 10.17.17.95.33.917 8.766 10.95.

654 26.000 2. Rajesh Sharma Mr.59.839 1.023 38.858 1.000 1.715 1.60.858 1.330 19..500 22.151 9.93.000 7.44.ANNUAL REPORT SCHEDULE – 17 (Contd.000 9.018 15.31.52.519 11.000 14.429 51.20.50. Dinesh Sharma Sub-total Director Sitting Fees Mr.000 9.72.750 3.000 56.892 2.) I.018 5. Rajesh Sharma Relatives of Key Management Personnel Sub-Total Remuneration Mr.279 95.30.19.512 30.396 11.83.50.000 1.512 30.055 3.50.250 2.000 50.56.97.029 95.19.45.047 80.97.372 99.500 17.000 17.70.14.89.35.05.000 .154 4.48.98.44.33.751 82.78.74.14.396 11.44.52.000 1.000 1.159 1.047 80.36.86.250 2.78.66.966 6.000 1.45.417 2007-2008 9.660 11.78.65.07.750 Parties referred to in (d) and (e) above 2008-2009 2007-2008 10.315 10.417 11.91.055 9.839 1.31.000 56.589 14.654 26.67.91.11.000 Total 2008-2009 9.78.48.99.20. Rajesh Sharma Mr.11.48.055 9.58.000 1.000 1.715 2.48.872 6.568 10.000 2.18.67.98.000 1.000 2.83.91. Dinesh Sharma Sub-total Outstanding Receivables (Net of Payable) Total Water Management Services (I) Limited Ion Exchange Waterleau Limited 17.20. Limited Global Composites & Structurals Limited Sub-Total Loans and Advances Repaid Total Water Management Services (I) Limited Ion Exchange Waterleau Limited Ion Exchange Services Limited Aquanomics Systems Limited Astha Technical Services Limited Global Composites & Structurals Limited Ion Exchange Financial Products Pvt.11.65.44.678 9.159 1.151 40.390 99.30.568 10.519 11.78.018 10.60.49.855 1.86.30.000 Shares allotted under Employee Stock Option Scheme (ESOS) 90 .48.59.000 60.35. Limited Sub-Total Dividend Received Ion Exchange Services Limited Aquanomics Systems Limited Sub-Total Dividend Paid Ion Exchange Services Limited Mr.33.44.39.44.70.154 4.50.56.48.72.265 2.00. Malaysia Sub-Total Loans and Advances Given Total Water Management Services (I) Limited Ion Exchange Waterleau Limited Aquanomics Systems Limited Astha Technical Services Limited Ion Exchange Services Limited Ion Exchange Financial Products Pvt.364 .751 82.839 19.125 12.31.315 10.01.750 7.651 1.31.44.18.): Amount (in Rupees) Nature of transaction Parties referred to in (a) and (b) above 2008-2009 2007-2008 9.28.125 15.855 1.023 38.250 3.86.396 3.000 1.660 11.93.74.50.265 2.872 6.311 4. Rajesh Sharma Mr.20.91.00.850 4.50.65.66.39.36.966 6.01.78.396 3.055 3.78.000 15.19.850 4. Dinesh Sharma Sub-total Mr.1.19. Transactions during the year with Related Parties except Entity having significant influence with outstanding balances as at year-end (Contd.000 50.01.047 4.850 5.678 5.99.90.97.86.000 60.678 5.01.839 19.89.58.000 2.000 14.364 Reimbursement of Expenses IEI Water-Tech (M) Sdn.90.50.311 4.715 1.28.59.07.678 9.892 2.41.651 1.850 5.000 1.45. Bhd.49.78.330 19.41.330 1.047 4.78.330 40.78.30.429 51.44.65.59.250 3.589 14.715 2.

283 * Gross Sales amount has been considered. Disclosure pursuant to Clause 32 of the listing agreement: Investment made by the loanee in the shares of the Company Name of the Related Party IEI Shareholding Trusts No. of shares as at 31st March 2009 26.000 6.87.000 4.607 4.29.537 34.03.283 16.72.191 39.71.25.38.00.) Aquanomics Systems Limited IEI Water-Tech (M) Sdn.76.473 20.000 1.01.01.473 20.46.): Amount (in Rupees) Nature of transaction Parties referred to in (a) and (b) above 2008-2009 2007-2008 5.40.00.42.648 24.000 10.42.25.89.12.95. Limited ** Ion Exchange Services Limited Global Composites and Structurals Limited Sub-total Outstanding Payables (Net of Receivables) Astha Technical Services Limited Global Composites and Structurals Limited Sub-total Investments made during the year Ion Exchange Waterleau Limited Astha Technical Services Limited IEI Water-Tech (M) Sdn.24.) I.000 93.000 1.29.05.809 16.334 18.02.38.19.809 89.75.265 4.38.95.19.73.000 23.40.00.SCHEDULE – 17 (Contd.35.75.000 Parties referred to in (d) and (e) above 2008-2009 2007-2008 Total 2008-2009 5..000 4.334 2007-2008 4.000 38.000 93.10.000 1.151 16.16. Bhd..62.03.94.03.081 3.828 2007-2008 39.607 24.809 18.53.334 17.000 27.191 24.40.07.000 4.81.94.10.00.81.10..83.79.40.94.000 23.47.73.00. Malaysia Sub-total Investment in Equity Shares Aquanomics Systems Ltd Ion Exchange Waterleau Limited Astha Technical Services Limited Total Water Management Services (I) Limited Ion Exchange Services Limited Global Composites & Structurals Limited IEI Water-Tech (M) Sdn.79.000 4.38.86.648 Outstanding Receivables (Net of Payable) (Contd.809 16.38.238 17.000 27.000 4. Malaysia Sub-total Share Application Money Global Composites & Structurals Limited Sub-total 4.500 24.842 10.000 10.371 III.00.00.10.00.473 20.94.79.53.000 11.000 4.40. Malaysia Ion Exchange Financial Products Pvt.81.000 6.000 2.500 Loan given during the year 2008-2009 2007-2008 3.914 91 .47.81.24.10.86.309 15.143 29.792 2.95.580 2.72. Stock Options granted and outstanding to Key Management Personnel: 2.842 10.38.000 2.71.580 2.000 4.94.000 Loans repaid during the year 2008-2009 2007-2008 41.00.000 38.00.914 31st March 2008 26.03.38.00.79.265 6.02.329 2.386 29.000 (2007-2008: 25.151 6.309 15. IV.12.537 34.000 2.10.00.00.34.00.29.000 10.00.537 89.89.34.000).19.000 4. Bhd. Transactions during the year with Related Parties except Entity having significant influence with outstanding balances as at year-end (Contd.802 23.78.000 10.000 13.143 29.00.35. II.000 4.792 2.87.42.25.238 39.802 4.537 23.000 2.00.500 Dividend paid during the year 2008-2009 53.000 11.329 2.46. Transactions during the year with Entity having significant influence with outstanding balances as at year-end: Amount (in Rupees) Name of the Related Party IEI Shareholding Trusts Outstanding Receivable 2008-2009 2007-2008 24.29.00.01.000 13.40. ** Provision has been made in respect of the said amount.76.16.00.00.386 29.07.081 3.94.38.334 24. Bhd.000 1.62.473 20.000 30.95.

34. in respect of above are determinable only on receipt of judgments/decisions pending with various forums/authorities. Nil) iv) Sales Tax – Rs. 3.65. 2.24.93.09.05.000) iii) Service Tax – Rs. 5. 4. 5.91. ii) Excise Duty – Rs. Contingent Liabilities not provided for : (a) Guarantee given by the Company on behalf of : i) Associate – Rs.294 (2007–2008 : Rs.79.42.000) Demand raised by authorities against which the Company has filed an appeal. 1.24.07.89.000 (2007–2008 : Rs.165 1. Revenue expenditure of Rs.65.52.52.000 (2007–2008 : Rs. No.53. Name of Related Party Ion Exchange Services Limited Ion Exchange Waterleau Limited Aquanomics Systems Limited Global Composites and Structurals Limited Ion Exchange Water-Tech (M) Sdn. 41. 2.246 1. Earnings Per Share : 31st March 2009 I Profit Computation for both Basic and Diluted Earnings Per Share of Rs.26.04.378) incurred on Research and Development has been expensed to Profit and Loss Account under various expense heads. I) Income Tax – Rs. 55.82.84.734 3. 11. inclusive of stamp duty and registration charges.05.38.12. Capital expenditure incurred on Research and Development during the year is Rs. provision of Rs.588 (2007-2008 : Rs.209) v) Customs Duty (to the extent ascertainable) – Rs.38.89. 1.33 1.952).75.55.04.000 (2007–2008 : Rs.117 (2007–2008 : Rs.16.194 40.93. 1.28. Bhd. Sundry Debtors include following amounts due from Companies under the Same Management : Amount (in Rupees) Sr.640 7.64. 4. 5.117) Claims against the Company arising in the course of business not acknowledged as debts (to the extent ascertainable) Rs.91. which are unsold as at 31st March 2009.922) has been made as at 31st March 2009.20.00.27. 55.ANNUAL REPORT SCHEDULE – 17 (Contd.308 1.20. IEEFL has conducted valuation of land and accordingly. 1.20.89.20.919 1.53. 38.000) ii) Joint Venture – Rs.595 (2007-2008 : Rs.00.89.998 (2007–2008 : Rs. These amounts are paid to investors on their execution of an irrevocable Power of Attorney in favour of IEEFL for sale thereof at future date.00. at prices announced by IEEFL from time to time. of Shares for Diluted Earnings per Share III Earnings Per Share in Rupees (Weighted Average) Basic Diluted 1. 17.82. 30. (b) (c) 20.246 2. 30. 24.88.034 1.00.000) iii) Others – Rs. 19.00.31 1.00.91. 35.271 5.294).95. 10 each Net Profit/ (Loss) as per Profit and Loss Account available for Equity Shareholders (In Rupees) II Weighted average number of equity shares for Earnings per Share computation A) B) For Basic Earnings per Share For Diluted Earnings per Share No. Advances for repurchase represents amounts paid to investors for purchase of sites sold to them in earlier years. 1.40.21. 62.38. As at 31st March 2009 18.922 (2007-2008 : Rs.00.69.172 31st March 2008 21.) 16.245). 38.53. if any.00.85.726 1. 92 .477 4.00. 24. 3. 18.308 7.224 (2007–2008 : Rs. of shares for Basic EPS as per II A Add: Weighted Average outstanding employee stock options deemed to be issued for no consideration No.79 7.000 (2007–2008 : Rs.88.661 As at 31st March 2008 17.032 9.602 - Security Deposit for Land represents amounts paid by IEEFL for acquiring agricultural land.05. Note: Future cash outflows/uncertainities.74.79.05.459 (2007–2008 : Rs. 21. 3.31 7.

800 11.90.81.31.000 93 Particulars of Derivative 2008-2009 Buy USD 10. Euro 27.12.85.99.69.426 MYR 90.128 Buy JPY 3.20.000 19.SCHEDULE – 17 (Contd.32.000 2007-2008 Amount (Rs.) 8.00.045.330 Amount (in Rupees) 2007-2008 1.20.84.84.891 (2007-2008 : Rs.42.78.839 Note:1.81.00 per share (20%) declared at the Annual General Meeting held on 26th September 2008 was also paid to those shareholders (book closure date being 16th September 2008). 27. Accordingly. Euro 1.550 (2007-2008 : 5.27.72.82.18.100 USD 65.214 Foreign Currency USD 9.24. Backcharges represents reimbursement of costs incurred by customers on the Company’s behalf in the course of contract execution.73. 18. 2.34. As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole.000 Buy USD 2. 51. During the year 33.49.18. The Managerial Remuneration paid has been approved by the Central Government.000 69. dividend of Rs.000 88.09.000 3.649 24.818 Buy USD 4.082.29. not included above.000 3.34.944 9.780 11.550 1.422 38. OMR 15.249 24.05.616. Capital Commitment: Estimated amount of contracts (net of advances) remaining to be executed on Capital Account not provided for is Rs.000 21. JPY 15.539.12.700) equity shares were allotted to employees and directors under ESOS 2005 on 17th June 2008.2008 : Rs.38.124). 26.72.461.09.072.559.75.98.59.00.039 1.29. Sales include services rendered Rs. Euro 67.15.20.060 USD 69.50.235 USD 4. Export Debtors 35. 33.00.03. the amount pertaining to the directors is not ascertainable and. Euro 1. 2.87.76.01.68.040) has been reduced from sales in Profit and Loss Account and excise duty on increase/decrease in stock amounting to Rs.05. Auditors’ Remuneration: 2008-2009 Statutory Audit Tax Audit Any other capacity (certification work) Out of Pocket Expenses Total 25.94.003 1.173) has been considered as (income)/expenses in Schedule 15 of financial statements.539 28.61. Derivative Instruments and Unhedged Foreign Currency Exposure Particulars of Derivatives as at Balance Sheet date Purpose Hedge of Foreign Currency Loans Hedge of Import Creditors Hedge of Import Creditors Particulars of Unhedged foreign currency exposure as at Balance Sheet date Particulars of Derivative Import Creditors 2008-2009 Amount (Rs.10.240 (2007 . 86.26. JPY 60.96. OMR 15.48.649 27.249 Amount (in Rupees) 2007-2008 13. Managerial Remuneration: 2008-2009 Salaries and Allowances Contribution to Provident and other Funds Perquisites Total 1.000 6. 24.) 10.13.39.649.273 .00. UAE DH 14. 28.175.350 2007-2008 Buy USD 32.006) net of service tax.000 7.48.596 USD 3. therefore.591 Foreign Currency USD 14.36.27.895 MYR 3.676 (2007–2008 : Rs.00. Excise duty on sales amounting to Rs.75.100 13. 28. 30. 27.) 22.137 Foreign Currency Bank Account Investment 2.469 (2007–2008 : Rs. 23.

08.57.634) (40. Opening defined benefit obligation 2.79. Ltd.88.175 30.921 (3.350 31.88. Contributions by Employer 4.212 (31.000 (58.32. Expected rate of Salary increase [Refer note (b) below] 3. / Bank Deposits % of holding 2008-2009 31% 21% 48% 2007-2008 51% 28% 21% 2008-2009 2007-2008 40.75.350 28.282 76.921) 3.634 (30.15.00. 1 2 3 Categories of Assets Central & State Government Bonds Public Sector Undertaking HDFC Std.36.13.32. Employee Benefits : A) The Company has a defined benefit gratuity plan.671 8% 5% LIC (1994-96) Ultimate 2% II III IV V The expected rate of return on assets is determined based on the market prices prevailing on that date. Current service cost 2.15.52.000 28.09. Benefits paid 5.358) 38.489) 4.79. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. Interest cost on benefit obligation 3.99.29.591 (34. Opening Fair value of Plan assets 2.921 7.573) (4. Fair value of Plan Assets Changes in the present value of the defined benefit obligation are as follows: 1.29. Actuarial gains / (losses) on obligation Closing defined benefit obligation Changes in the fair value of Plan assets are as follows: 1.062 75.00.13.32.003 75.43.5% 5% LIC (1994-96) Ultimate 2% 40.88.30.88. 94 .79.43.77.591) (40. Interest cost 3.908 (63.ANNUAL REPORT SCHEDULE – 17 (Contd.921) 4.57.212) (6. Current service cost 4.96.88.358 76.05. No. applicable to the period over which the obligation is to be settled.264) (17. Attrition Rate The Company expects to contribute Rs.88. Actuarial Gains / (Losses) 6. Discount Rate 2. The following table summarise the components of net benefit expense recognized in the Profit and Loss Account and the funded status and amounts recognized in the Balance Sheet for the Gratuity Plan.95. Expected return on plan assets 4. The Scheme is funded to a separate Trust duly recognized by Income Tax Authorities. Closing Fair value of Plan assets Actuarial Assumptions: 1. The major categories of plan assets as a percentage of the fair value of total plan assets are as follows: Sr.350) 63.99. Expected returns 3. Benefits paid 5.52.908 27.79.161 to gratuity in 2009-2010.79. Life Ins.13.191 (3.693 (4.671 (3.13.03.57.42. 52. Mortality 4.) 29.79.003) 37.96.57. Net actuarial Loss / (Gain) recognized in the year Net benefit expenses Actual return on plan assets Net Assets / (Liability) recognized in the Balance Sheet 1.724) (3.671) (31.350) 58. Amount (in Rupees) Particulars I Profit and Loss Account Net Employee benefit expense (recognized in Employee cost) 1. Present Value of defined benefit obligation 2.671 34.32. Co.03.05.175) (28.671) 3.54.18.264 (20.36.558) 3.671) 3.

921) 4. : 36738 For and on behalf of the Board of Directors of ION EXCHANGE (INDIA) LIMITED G. RANGANATHAN Chairman RAJESH SHARMA Vice Chairman & Managing Director MILIND PURANIK Company Secretary Place : Mumbai Date : 19th June 2009 Place : Mumbai Date : 19th June 2009 95 . Small and Medium Enterprises Development Act.82.662) (4. the Company is not aware of their registration status and hence information relating to outstanding balance or interest due is not disclosed as it is not determinable.32.08. Defined Contribution Plan: Amount recognized as an expense and included in the Schedule 15 – “Contribution to Provident and Other Funds” of Profit and Loss Account Rs.44.88.03.49.820 (2007-2008 : Rs.613) b) B) The estimates of future salary increases considered in the actuarial valuation take account of inflation. 31.88.13. 1.558) (ii) Gratuity in “Contribution to Provident & Other Funds” Rs. 77. such as supply and demand in the employment market.671) 3. BATLIBOI & CO. 2.75.489) 2007-2008 (3.510 (2007-2008 : Rs.) Amounts for the current and previous year are as follows: 2008-2009 Defined Benefit obligation Plan assets Surplus / (deficit) Experience adjustments on plan liabilities Experience adjustments on plan assets Notes : a) Amounts recognized as an expense and included in Schedule 15: (i) Leave Encashment in “Salaries. Previous year’s figures have been regrouped / rearranged.79.54. The Company has initiated the process of obtaining confirmation from suppliers regarding the registration under the “ Micro.32.436) (17.671 Nil 31.71. promotion and other relevant factors. wherever necessary to conform to this year’s classification. R.29. The suppliers are not registered wherever the confirmation are received and in other cases. 77.405).724 (6. S. 30. seniority.784 (2007-2008 : Rs. 2.80.SCHEDULE – 17 (Contd.51.16. 2006”.98.13. Wages and Bonus” Rs. As per our report of even date For S.52. 1.79. Chartered Accountants per VIJAY MANIAR Partner Membership No.921 Nil (13.

10.75.89.000 (69.277 (10.68.455 (5.94.97.58.10.29.49.01.308 18.81.75.450) 7.900 (1.75.68.62. no longer required.59.530 (5.88.48.84.319) 4.423) (7.14.22.40.38.61.945) 19.2008 Rupees Rupees 6.07.86.284 10.299) 1.62.26.668) 15.76.914 (35. CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets Proceeds from sale of Fixed Assets Investments made in Associates (Net) Proceeds from Sale / Redemption of Investments Deposit (with maturity more than three months) Dividend received Interest received Net Cash Used in Investing Activities 96 Rupees 2007 . CASH FLOW FROM OPERATING ACTIVITIES Net Profit Before Taxation Adjustment for: Depreciation Loss on Assets sold / discarded (Net) Employee Compensation Expense Write-back of diminution in value of Investments (Net) Interest Expense Share of Earnings in Associates Dividend received Interest received Bad Debts written off Backcharges on Contracts Provision for doubtful advances and deposits Goodwill written off Amount set aside for liabilities.609 42.63.468) (8.688 34.202 (6.77.24.79.75.850 (34.771) 2.968) 5.92.81.915 12.184) (1.000 (64.86.15.13.92.85.498 (6.573) 9.81.442 (20.028 (10.29.020) 9.42.215 6.56.177 10.33.85.02.708 1.079 (21.20.209 3.432 5.77.32.80.18.583) 14.55.38.50.59.86.650) 28.565) (38.356) (24.42.420) 11.77. written back Unrealized Profit on Inventories Unrealized Exchange Loss / (Gain) Operating Profit Before Working Capital Changes Movements in Working Capital: (Increase) / Decrease in Trade and Other Receivables (Increase) / Decrease in Inventories (Decrease) / Increase in Trade and Other Payables (Increase) / Decrease in Loans and Advances Cash Generated From Operations Taxes Paid Net Cash From Operating Activities B.01.25.500 12.06.968 1.32.531) 1.85.11.45.600 (20.95.86.72.423 (4.84.03.793) 20.24.94.07.09.34.897) 21.63.25.010 27.16.632 (4.565 21.09.447 3.02.554) 7.88.60.98.609) (32.98.72.88.394) 5.64.66.15.50.272 (71.40.331) (21.90.817 (81.58.ANNUAL REPORT Consolidated Cash Flow Statement for the year ended 31st March 2009 Rupees A.94.415) .45.405) 1.428) 40.996 (24.871 (98.673) 55.158 1.497 (4.15.06.88.99.

798) (10. 4.498) (1.09.350 24.28.Consolidated Cash Flow Statement .94.80. 3.90.04.77. : 36738 For and on behalf of the Board of Directors of ION EXCHANGE (INDIA) LIMITED G.61. 86.75. Figures in bracket indicate cash outgo.) 2007 .72.08.84.74.3 on Cash Flow Statements.68.05.511) Previous year’s figures have been regrouped/rearranged to conform with current year’s classifications.29. R.84.644 9.520 Rupees Rupees Rupees As per our report of even date For S. Chartered Accountants per VIJAY MANIAR Partner Membership No.84.098) 35.68.89.(Contd.520 19.16.21.122) (44.514) (9.915) 9. S.17.50.10. 46.605 4.65.92.072) 40.05.80.508 9.49.28.79. BATLIBOI & CO. 1975] Rs.35.972 (2.318 (16.876 8.838 7.00.000 (36.92.44. RANGANATHAN Chairman RAJESH SHARMA Vice Chairman & Managing Director MILIND PURANIK Company Secretary Place : Mumbai Date : 19th June 2009 Place : Mumbai Date : 19th June 2009 97 .00.000 (2007-2008 : Rs.83.36.57. Cash and Cash Equivalents excludes the following Balances with Bank: (a) (b) 4 On Deposit Account [Earmarked under Rule 3A of Companies (Acceptance of Deposits) Rules.59.642) (32.94.988) 12.57.909) (7.2008 Rupees C.926) 13.79.96.33.000) On Margin Money Account Rs.92.05. CASH FLOW FROM FINANCING ACTIVITIES Proceeds from issuance of share capital on exercise of options Increase in Minority Interest Repayment of Long term borrowings Proceeds from Long term borrowings Dividend Paid Dividend Tax Paid Interest Paid Net Cash Generated / (Used) in Financing Activities Net (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents as at the beginning of the year Cash and Cash Equivalents as at the end of the year CASH AND CASH EQUIVALENTS COMPRISES OF: Cash in Hand Balance with Banks (Refer Note 3 below) TOTAL Notes: 1 2 3 The above Cash Flow Statement has been prepared under the “Indirect Method” as set out in the Notified Accounting Standard .065 (2007-2008 : Rs.767 7.55.579 (1.06.78.79.00.605 13.59.658 (2.520 7. 18.650 7.02.

94 1.25 27.651.231.43 (0.05 123.49 8.56) 3.41 0.02 (58. Bhd.11 20.06 (29.74 15.77 3.40 66.77 (98.27 61.Summarised statement of financials of Subsidiary Companies Pursuant to approval under Section 212(8) of the Companies Act.47 (934.534.95 181.01) 10.49 1.71 5.19 5. Exchange rate as on 31st March in INR Note : The annual accounts of the above Subsidiary Companies and the related detailed information will be made available to the Holding and Subsidiary Company investors seeking such information at any point of time.32 SGD 28.265. Provision for Taxation 9. Original Currency 12.90 50.71 116.25 35.09 (14.19 (95.29) 5.64 INR INR INR INR INR INR SGD 34.54 2.25 995.02 65.28 236.97 82. Profit / (Loss) Before Tax (100.11) (63.84 0.30) 47.95) 178. Total Assets 1.02 157.48 40.75 38.85 6.91 OMR 104.69 65.38 6.07 9.34 411.04 802.033.43 1.123.59 20.03 1.95 39.53 2.531. Particulars Ion Exchange Enviro Farms Limited 2008-09 1.153.18 1. No.78 1.09 3.66 551. Ltd.17 3.37 7.111.035. Total Turnover (Including other income) 126.17) (6.89 5.08) (14. 1956 Rs.08) 71.91 MYR 14.89 73.11 Aqua Investments (India) Limited Ion Exchange Asia Pacific Pte.91 18.65 BDT 0.60 8.93 1.51) (98.81 9.71) (14. Reserves (1.11 12.40 104.55) 69.08 0.65 82.17) 3.71 1.92 1.74 204.56 115.65 514.07 67.74) (9.73 4.89 257.39 481.78 31.77 BDT 0.47 0.54 1.88 0. in lacs Watercare Investments (India) Limited 2008-09 178.00 153.73) (28.14 85.30 8.51) 114.86 12.531.24) 14.00 177.58 2.59 USD 50. Profit / (Loss) After Tax (101.51) (56.11 112.11 4.077.068.72 0.75 1.54 (14.88 46.02 177.71 5.88 (6. Investments (Long Term) (excluding investment in subsidiary) Trade Investments (Unquoted) Non Trade Investments (1) Government Securities (2) Unquoted Equity Shares (3) Quoted Equity Shares 6.02 177.95 USD 39.212. Capital 2.15 50.859.16) 748. Management (BD) Limited Ion Exchange LLC Ion Exchange & Company LLC Ion Exchange Infrastructure Limited ANNUAL REPORT 98 2007-08 69.34) 70.59 14. (Consolidated) IEI Environmental Ion Exchange Management (M) Environment Sdn.42 38.64 241.40 1.23) 2.13 6.85 (27. .98 0.29 3.13) 6.52 4. Total Liabilities 2.65 1.58 10.37) 8.65 (64.20 161.59 84.02 6.03 INR INR - Sr.22) (109.83 18. Proposed Dividend (Excluding Tax on Dividend) 11.43 957.99 11.704.44 7.58 1.97 70.92 51.28 7.63 7.97 203.00 338.42 1. The annual accounts of the Subsidiary Companies are also open for inspection by any investor at the Company's Registered Office and at the Registered Office of the respective Subsidiary Companies.86 156.31 MYR 12.92 0.969.78) 122.16) (95.04 2007-08 2008-09 2007-08 2008-09 2007-08 2008-09 2007-08 2008-09 2007-08 2008-09 2007-08 2008-09 2007-08 2008-09 2007-08 100.41 1.92 (0.83 161.97 OMR 135.89 (244.