KESORAM INDUSTRIES LIMITED

ANNUAL REPORT & ACCOUNTS 2009-10

ges Everyday! New Challen M eeting

Shri Basant Kumar Birla
Chairman

ANNUAL REPORT & ACCOUNTS

2009-10

Message of the

CHAIRMAN

Dear Fellow Shareholders:

W

hereas the Global economy was slowly limping back to normalcy, 2009 – 10 was a landmark year for Kesoram. The turnover of your company has crossed the Rs 5000 crore mark for the first time.

Your company’s core business segments – Cement and Tyre – have shown impressive growth. The cement units have posted the highest ever production figures. The Tyre section has shown commendable growth in domestic sales and exports – with an increase in market share. Another significant achievement has been the scheduled completion of expansion projects. At Vasavadatta Cement, the 4th Unit and a Thermal Power Plant started commercial production in August 2009 and your Company’s world-class Greenfield facility for Tyres at Haridwar, Uttarakhand, started commercial production of Truck/Bus Radial Tyres and Motor Cycle/ LCV Tyres during the year. Your company has also faced challenges very successfully. The surplus capacity in the Indian Cement Industry via-a-vis the growth rate in infrastructure has put pressure on profits. Steep increase in raw material prices in last two quarters of the year adversely affected the Tyre Industry. All the above indicates that your Company is now poised to reap the benefits of oncoming economic growth in the country. Steady Government thrusts on infrastructure, increased spending on social measures as well as on employment generation are all factors that will provide further impetus to the growth of the Indian economy. I extend my thanks to my colleagues and all employees and other stakeholders who have made what Kesoram is today and will be taking it to the next higher level tomorrow. I sincerely thank my fellow shareholders for their continuous support.

Basant Kumar Birla

1

. Hongkong and Shanghai Banking Corpn.com Shareholders seeking information on accounts published herein are requested to send their queries to the Company at least 10 days before the date of the Meeting.. mcskol@rediffmail. Hazra Road.Lead Bank Allahabad Bank. ICICI Bank Ltd. Ltd.. HDFC Bank Ltd. Members are requested to bring at the meeting with them. and YES Bank Ltd.. Standard Chartered Bank.in Bankers State Bank of India . R. A.vsnl. UCO Bank.net. 2 .91 ANNUAL REPORT st ACCOUNTS Registered Office 2009-10 & 8th Floor. Citibank N. N.. Birla Building 9/1. Kolkata – 700 029 Phone No : 033-24767350 to 54 / 24541892 to 93 Fax No : 033-24541961 / 24747674 E-mail : mcscal@cal2.Mukherjee Road Kolkata – 700 001 Phone No : 033-22435453/22429454 Fax No : 033-22109455 Email : kesocorp@cal3. Auditors Messrs Price Waterhouse Share Transfer Agent MCS Ltd. Canara Bank. DBS Bank Ltd. the printed copy of Annual Report & Accounts being sent to them along with the Notice to avoid inconvenience..vsnl.in. (Unit : Kesoram Industries Ltd.) 77/2A. Induslnd Bank Ltd. BNP Paribas.net. State Bank of Hyderabad.

ANNUAL REPORT & ACCOUNTS 2009-10 CONTENTS 9 14 20 31 34 37 41 42 43 48 49 50-88 89 91 Notice Report of Directors Report on Corporate Governance Report on Management Discussion and Analysis Particulars of Employees Statement on Conservation of Energy etc. Summarised Balance Sheet of last five years Summarised Profit & Loss Account for last five years Auditors’ Report Balance Sheet Profit and Loss Account Schedules ‘1’ to ‘18’ Cash Flow Statement Balance Sheet Abstract 3 .

Manjushree Khaitan Shri Deepak Tandon (Whole-time Director) 4 .Board of DIRECTORS Shri Basant Kumar Birla Chairman Shri Krishna Gopal Maheshwari Shri Bhagwati Prasad Bajoria Shri Pesi Kushru Choksey Shri Amitabha Ghosh Shri Govind Ballabh Pande (Nominee of LICI) Shri Prasanta Kumar Mallik Smt.

Bhattacharya Sr. G. S. K. Bindra Shri P. K. R. R. Vice President (Taxation) Shri S. Jain Shri P. Joint President (Marketing-Cement Sections) Sr. General Manager 5 . Ojha Shri S. Chamaria Shri U. Purohit Shri R.) Joint President (Technical) Sr. S. Vice President (Works) Shri H. Patodia Company Secretary & Sr. V. Tapadia Shri K. Mitra Shri Arindam Gupta Shri S. Chandak Shri J. Tripathy Shri A. Sharma Shri C. Vice President (Marketing) Vice President (PQC) Vice President (Mechanical) Vice President (Mines) Vice President (Finance & Accounts) RAYON & TRANSPARENT PAPER SECTIONS Shri V. Vice President (Commercial) Sr. Vice President (Sales & Marketing) Vice President (PQC) HINDUSTHAN HEAVY CHEMICALS SECTION Shri M. Sharma Shri Rajesh Garg Shri S. Kejriwal President Sr. Joint President Joint President (Technical) Sr. Vice President (Technical) Sr. K. S. Vice President (Secretarial) Sr. & PP) Joint President (Projects) Sr. Bohra Shri S. Narayana Rao Shri Mahesh Agarwal Shri Ashok Ostwal Shri Ch. K. L. P. Jain Manager of the Company & Sr.ANNUAL REPORT & ACCOUNTS 2009-10 Team of EXECUTIVES Shri K. Sharma Shri I. K.S. Shah Shri A. Uppal Shri Anoj Agarwal Shri Anupam Dutta Shri Praveen Mehta Shri P. C. K. R. Rao Shri O. Asopa Chief Financial Officer & Sr. C. President-Cement Sections CORPORATE OFFICE Sr. Vice President (Commercial-Tyre Sections) Shri Vikash Agarwal BIRLA TYRES SECTIONS Shri R. Joint President (Commercial) Sr. K. Vice Presdent (Marketing) KESORAM CEMENT SECTION Shri S. Joint President (Finance) Shri Suresh Sharma Shri Yashwant Mishra Shri G. K. L. P. Joint President (Accounts & HRD) Sr. K. Gandhi Shri B. C.Nageshwar Rao Joint President (Finance & Admn. Dudhoria Vice President (Commercial) SPUN PIPES SECTION Shri Sadhan Sarkar Dy. Sood Shri Kanti Chaudhury Joint President (Commercial) Joint President (Marketing) Joint President (Works) Joint President (Technical) Vice President (Sales) Vice President (Engineering) Vice President (Production) Vice President (Commercial) Vice President (Production) VASAVADATTA CEMENT SECTION Shri D. Karwa President Joint President Joint President (Engg. K. N.

00 5.5020.1540.648.00 3.50 per share. Segment-wise Sales 38./Crore 1500 1250 1000 750 500 250 0 2005-06 2006-07 2007-08 2008-09 2009-10 416.1330.4292.99 648.23 4.63 Crore.63 4292.51 400.50 5.50 5.90 7. The Charts below show the current year’s Segment-wise Sales and last five years’ position.76% Rs.05 654.46 3440.32 5020.21 Price Earning Ratio (P/E Ratio) 1750 1540. Gross Profit has increased from Rs.24 Crore./Crore 6000 5000 4000 3000 2000 1000 0 2005-06 2006-07 2007-08 2008-09 2009-10 1877. Increased net worth from Rs./Crore 600 500 400 300 200 100 0 2005-06 2006-07 2007-08 132.29 Crore Dividend per share is maintained at last year’s rate i.e.43 981.07 Crore to Rs.92 1330. & Chemicals Year Gross Profit Dividend per Share (DPS) 700 641.07 Gross Sales Tyre Cement Rayon.67 1.24 25 20 Rs.5.Performance HIGHLIGHTS The following highlights for the year under review are given in comparison to immediate previous year: Gross Sales have risen from Rs.10 15 10 5 0 2005-06 2006-07 2007-08 2008-09 2009-10 5. 2008-09 2009-10 4 3 2 1 0 2005-06 2006-07 2007-08 2008-09 2009-10 Year Year Net Worth 21.82 2516.99 Crore to Rs.63 Year Year 6 .80 520.29 6 5 4. Rs.50 Rs. T.09 Rs.08% 5.520.16% 56.10 Crore to Rs.P.

Motor Cycle Tyre Curing Section .ANNUAL REPORT & ACCOUNTS 2009-10 View of New Units COMMENCED PRODUCTION IN THE YEAR Green Field Project of Birla Tyres at Haridwar in Uttarakhand Tyre Testing and R&D Building . Coal Mill.Unit III Radial Tyre Building Machine . Raw Mill Silo & Bag House .Unit IV of Vasavadatta Cement at Sedam in Karnataka.Unit IV 7 .Unit III Pre-Heater.

President (Cement Sections) & Manager of the Company.AWARD Shri K. C. Shri K. 2010. 8 . Jain. Sr. Rosaiah at Hyderabad on 5th April. receiving the FAPCCI Award for ”Excellence in workers’ welfare (2008-09)” from the Hon’ble Chief Minister of Andhra Pradesh.

To consider and adopt the Reports of the Auditors and the Directors and the Audited Accounts of the Company for the year ended 31st March. of the Companies Act.ANNUAL REPORT & ACCOUNTS NOTICE TO THE MEMBERS 2009-10 NOTICE is hereby given that the Ninety-first Annual General Meeting of KESORAM INDUSTRIES LIMITED will be held on Thursday. 2010. upon the following terms as to remuneration as set out hereafter and with further liberty to the Board of Directors / any Committee thereof / Chairman of the Board from time to time to alter the said terms in such manner as may be in the best interests of the Company. B. at “Kala-Kunj”. 1956. 4. whose office shall not be liable to retirement by rotation. including Schedule XIII thereto as amended up to date or otherwise as may be permissible by law. 5. 269.per month and aforesaid Special Allowance not exceeding Rs. Kolkata -700017. Maheshwari and Shri G. 2010. FURTHER RESOLVED that pursuant to the provisions of Sections 198. 2010.per month) from time to time as may be deemed fit and appropriate. 309. offer themselves for re-election. ii) 9 .00. Gratuity and Personal accident insurance premium : As per the Rules of the Company.000/. 5. 7.m. Company’s contributions towards Provident Fund & Superannuation Fund.00 a.000/-. B) Perquisites and other amenities payable: i) House Rent Allowance. 3. 48. Ex-gratia. the following resolutions as Ordinary Resolutions: 6. who retire by rotation and being eligible. be and is hereby appointed a Director of the Company. SPECIAL BUSINESS To consider and if thought fit.000/-. To appoint Directors in place of Shri.00. Pande. to transact the following business: GENERAL BUSINESS 1. read with Schedule XIII thereto and all guidelines for managerial remuneration issued by the Central Government from time to time. To appoint Auditors and fix their remuneration. “RESOLVED that superseding the earlier resolution passed without prejudice to the powers of the Board of Directors of the Company under the provisions of Section 293(1)(e) of the Companies Act. if any. the Company hereby approves the appointment by the Board of Directors (“the Board”) of Shri Deepak Tandon as Whole-time Director of the Company for a period of five years with effect from 1st April. Special Allowance : Rs 70. contained in the Companies Act. Cars: Chauffeur driven cars provided and maintained by the Company for the use on Company’s business and interest on Car Loan as per Scheme of the Company. if any. who vacates office at the conclusion of this Annual General Meeting. 2009.10. reimbursement of Leave Travel & Medical expenses for self and family. subject however to the restrictions. 2. 311 and all other applicable provisions. with liberty to either party to terminate the appointment on three months’ notice in writing to the other. Leave with full pay and allowances.00. with authority to the Board of Directors/any Committee thereof/Chairman of the Board to make annual increments in basic salary and aforesaid Special Allowance (Basic salary not exceeding Rs.000/. the Board be and is hereby authorized to contribute to charitable and other funds not directly related to the business of the Company or the welfare of its employees up to a sum of Rupees twenty five lac in each case.: A) Basic Salary & Allowance per month: i) ii) Basic Salary : Rs.K. Shakespeare Sarani. G. subject to maximum of Rupees two crore in a financial year of the Company notwithstanding that the aggregate of such contribution made during that financial year may exceed five percent of its three years’ average profits as determined in the manner laid down in the aforesaid section. to pass with or without modification(s). viz. 3. To declare final Dividend on Ordinary Shares for the year ended 31st March. 1956. 1956.” “RESOLVED that Shri Deepak Tandon. the 1st July. To confirm the payment of Interim Dividend on Ordinary Shares declared by the Board of Directors in its meeting held on 30th October. 2010 at 11.

K.Fees of the clubs: Subject to the maximum of two clubs. Register of Members shall remain closed from 16th June. if any. E) In the event of loss or inadequacy of profits in any year. K. 1956 and Article 106 of the Articles of Association of the Company and subject to all other approvals. Finance and Taxation) besides the functions of the Senior President of Birla Tyres (both Balasore and Haridwar Sections) to draw a basic salary of Rs. 2.Birla Group.2010 plus all other allowances and benefits as per rules of the Company applicable to the category of a Senior President subject to the limits u/s. 2010 subject however further to such limit per annum as may be decided by the Board in that behalf from time to time. 4. who was appointed as Additional Director under Section 260 of the Companies Act. “RESOLVED that pursuant to Section 314 and the other applicable provisions. The Company must receive proxy form(s) not less than 48 hours before the Meeting. Kolkata -700 001 Dated. 1956.03.” By Order of the Board Registered Office: 9/1.per month from 01. the following resolutions as Special Resolutions: 8.000/. in addition to the sitting fees for attending the meetings of the Board or Committees thereof and reimbursement of expenses to attend them as per provisions of law from time to time. the remuneration including the perquisites and other amenities as aforestated will be paid to Shri Tandon in accordance with the applicable provisions of Schedule XIII of the Companies Act. 309 and the other applicable provisions of the Companies Act. if any. D) That the aggregate of the basic Salary. of the Companies Act. pursuant to Section 173(2) of the Companies Act.50 lac (Rupees fifty lac) to be divided amongst them equally in every financial year for a period of five years with effect from 1st April. 1956. Shri Tandon may get the sitting fees paid / payable to other Directors for attending meeting of Board of Directors / Committee of subsidiary(ies). Mukherjee Road. S. consent of the Company be and is hereby accorded to Shri Deepak Tandon.2010 to 31. to pass with or without modification(s).309 read with Schedule XIII of the Act. if any required. 2010 Notes: 1. 2010 to 1st July. 1956 in respect of the Special Business is annexed hereto. C) So long as Shri Deepak Tandon functions as Whole-time Director of the Company. However. the 28th day of April. be in force. the Company be and is hereby authorized to pay a commission. 1956 and subject to the approval of Central Government wherever required. he will not be subject to retirement by rotation and shall not be paid any fees for attending the meetings of the Board or any Committee thereof. whose names stood registered as beneficial owners / members of the Company as on 17th November. 2009 had declared interim dividend of Rs 2. Electricity.01. at a rate of 1% of the net profits of the Company computed in the manner referred to in section 198(1) of the said Act but not exceeding Rs. 1956 and Article 103 of the Articles of Association of the Company to hold place of profit in the Company as Senior President (Accounts. or companies promoted by the B. Special Allowance and perquisites and other amenities in any financial year shall be within the limits prescribed from time to time under sections 198. Maintenance Charges and communication facility at residence: Actual charges of electricity and maintenance charges of Housing Society with provision of Telephone.3. A member entitled to attend and vote at the above Meeting is entitled to appoint one or more proxies to attend and vote instead of himself / herself and the proxy need not be a Member. Patodia Secretary iii) iv) 9.00. to the Directors of the Company. 2009. read with schedule XIII of the said Act as may be for the time being.” To consider and if thought fit. or otherwise as may be permissible by law. telefax and other modern communication facilities at residence.” “RESOLVED that pursuant to the provisions of Section 309 and other applicable provisions of the Companies Act. 10 .25 per ordinary share of the Company and paid the same to those members or their mandatees. R. The Board of Directors of the Company in its meeting held on 30th October. Senior President of Birla Tyres Sections of the Company. The relevant Explanatory Statement. who are neither in whole – time employment of the Company nor Managing / Whole-time Director of the Company. N. 2010 (both days inclusive). 3.

2012 28.07.10. Members.3. to the Share Department of the Company / Share Transfer Agent and the name of the Bank(s) with account number(s) for inscribing it on the face of dividend warrant(s) to avoid the fraudulent encashment of the same.10.2003 31.25 per ordinary share of the Company.2005 31. 9.. MCS Ltd. 2010 as per the lists to be furnished by National Securities Depository Limited and Central Depository Services (India) Limited in respect of the Shares held in Electronic Form.2009 31.03.2010 Date of declaration of Dividends 26. to those members or their mandatees whose names stand registered in the Company’s Register of Members: (a) (b) as Beneficial Owners as at the end of business on 15th June. The last dates of claim of the following dividends from the Company are as under: Dividends for the financial year ended 31. if any. on or after 9th July.03. 6. if you hold shares in electronic form. 77/2A.2014 25.2016 8.2009 31. members are requested to kindly inform the Share Department of the Company / Share Transfer Agent or the respective Depository Participant(s). please note that ECS to your old account may either be rejected or returned. Members.04.2004 30.2003 30. In case the mailing address mentioned on this Annual Report is either without PIN Code or with incorrect PIN Code. In order to avoid the risk of loss / interception of dividend warrants in postal transit and/or fraudulent encashment of dividend warrants.06.2004 31. 2010.06. their PIN Code immediately for speedy and proper delivery. The Instruments of Share Transfers. to your Depository Participant (DP) at your earliest convenience. should reach the Share Department of the Company at 9/1. will be paid. 2010. Hazra Road.2009 30.e.2015 25. Shareholders holding shares in physical form with a Bank Account covered under CBS may inform the Share Department of the Company / Share Transfer Agent to avail benefit of NECS. Kolkata-700 001 or the Share Transfer Agent of the Company i. holding shares in physical form. The Nomination Form–2B.. If you do not provide your new account number allotted after implementation of CBS by your bank. Mukherjee Road. prescribed by the Government for the purpose.03. in physical form. NECS essentially operates on the new and unique bank account number.2007 31.11. can be obtained from the Share Department of the Company / Share Transfer Agent.11. 10.06.03.07.2008 31.2006 31. to your DP. and as Members in the Register of Members of the Company after giving effect to valid share transfers in Physical Form lodged with the Company or the Share Transfer Agent on or before 15th June. Kolkata-700 029 well before the Book Closure date as stated above.2016 29. Shareholders are advised to avail of National Electronic Clearing Service (NECS) facility whereby the dividend will be directly credited electronically to their respective Bank accounts. are requested to notify the change in address. 2009-10 The Final Dividend of Rs.06. 11 . Unit: Kesoram Industries Ltd.2008 31.2015 30. In this regard.03.07.ANNUAL REPORT & ACCOUNTS 5.2011 29.07. As per provisions of the Companies Act.03.03. 11.06.2009(Interim) Last date for claiming unpaid Dividends 25. are requested to apply to the Share Department of the Company / Share Transfer Agent along with the relevant Share Certificates for consolidation of such Folios in one Folio.03. 7.03. subject to the provisions of Section 206A of the Act.2007 (Interim) 26. allotted by banks post implementation of Core Banking Solutions (CBS) for centralized processing of inward instructions and efficiency in handling bulk transactions. who are holding Shares.07. facility for making nominations is now available to Individuals holding shares in the Company. as the case may be. R. please furnish the new Bank Account Number allotted to you by your bank after implementation of CBS along with a photocopy of a cheque pertaining to the concerned account. in identical order of names in more than one Folio. as recommended by the Board.2010 29. N. complete in all respects.2008(Interim) 26. Members holding Shares in Electronic form should send the above information to the respective Depository Participant only. if declared at the ensuing Annual General Meeting.2005 29. This will ensure speedier credit of dividend.03.2006 14.2013 13.07. 1956 (Act).06.

12. The appointment of Shri Tandon and his drawing of remuneration in the capacity as the Senior President of Birla Tyres sections as well as the Senior President (Accounts. shall also carry out the functions of Senior President (Accounts. are requested to make their claim to the Share Department / Share Transfer Agent of the Company. Pursuant to the provisions of Section 205A read together with 205C of the Act. In view of the increasing appeals for donations and considering the corporate social responsibility of the Company in this respect. 8 aforestated.2009 that Shri Tandon shall carry out the function of Senior President of Birla Tyres (both Balasore and Hardwar sections) and. Further. (b) (c) 14. EXPLANATORY STATEMENT PURSUANT TO SECTION 173 OF THE COMPANIES ACT. The Board recommends the resolution no. 1956. 8 by way of Special Resolution. with effect from 1st January 2010 upon resignation and cessation of services of Shri S K Parik as Senior President (Finance & Taxation) and Company Secretary and holds office up to the date of this Annual General Meeting but a notice in writing with requisite fees from a member under Section 257 of the Act has been received by the Company intimating his intention to propose his candidature for appointment as Director of the Company. dividends for the financial year ended 31st March.6 of the notice for passing by the Shareholders as an Ordinary Resolution. are given in the Corporate Governance Section of the Annual Report. 12 . once the unclaimed dividend amount is transferred to the Fund as aforestated. to avoid inconvenience. pursuant to the provisions of section 260 of the Act and Article 103 of the Memorandum & Articles of Association of the Company. 2003 and thereafter. i. which remain unpaid or unclaimed for a period of 7 years will be transferred to the ‘Investor Education and Protection Fund’ constituted by the Central Government. requires approval of the shareholders by way of Special Resolution under Section 314 of the Companies Act. As per requirement of Clause 49(IV)(G)(i) of the Listing Agreement with Stock Exchanges. in addition. 13.e. 2003 or any subsequent financial years so far. at least 10 days before the meeting. (a) Members desirous of getting any information about the accounts and operations of the Company are requested to address their query/ies well in advance. 7 AND 8 Shri Deepak Tandon. Senior President of Birla Tyres (Balasore and Haridwar sections) was appointed as Additional Director in the Company. to the Whole-time Director or Secretary of the Company to enable the Management to keep the information readily available at the Meeting. 10 lac in one financial year and any contribution in excess of the aforesaid limit will require consent of the Company in the General Meeting. 6 Pursuant to Section 293(1)(e) of the Companies Act. it may be noted that under the Act. Hence the need for passing the said resolution No. whichever is greater. any amount the aggregate of which will not in any financial year exceed Rupees fifty thousand or five percent of its three years’ average net profits as determined in the manner laid down in the aforesaid Section. no claim shall lie in respect of such amount. who have not got encashed the dividend warrant(s) for the financial year ended 31st March. Whole-time Director. the Board recommends that it be authorized to make such donations up to Rupees two crore in aggregate even in case of any unforeseen eventuality of inadequate profits of the Company in any financial year in the future.12. who hold shares in Electronic Form are requested to bring their Depository ID Number and Client ID Number to facilitate easier identification for attendance at the Annual General Meeting. 8. 1956. it was decided by the resolution by circulation dated 30. being both place of profit. The Company as of now has the limits up to a sum of Rs. Finance and Taxation) of the Company as set out in resolution No. Finance and Taxation) of the Company at the remuneration set out in the resolution No. Members. Further. 1956 ITEM NO. None of the Directors or Manager is interested or concerned with the proposed resolution. members are requested to bring at the meeting the printed ‘Annual Report & Accounts’ being sent to them. Further. ITEM NOS. the Board of Directors of the Company is empowered to contribute to charitable and other funds not directly relating to the business of the Company or the welfare of its employees. the particulars of Directors retiring by rotation and eligible for reappointment and Shri Deepak Tandon. Members.

None of the Directors or the Manager of the Company.ANNUAL REPORT & ACCOUNTS 2009-10 Shri Tandon is a Chartered Accountant and has vast experience in accounts. K.03. Patodia Kolkata -700 001 Secretary Dated. subject to a maximum limit of Rs. therefore.8 as a Special Resolution.04. Your directors recommend passing of the aforesaid resolution no.7 as an Ordinary Resolution and resolution no.2010. 2010 13 . subject to the approval of the shareholders for a period of five years with effect from 1st April. 2010 appointed Shri Tandon as a Whole-time Director of the Company at the remuneration as set out in resolution No. Your Directors are of the view that the remuneration as proposed to be paid to Shri Tandon is in line with the corporate trend prevailing at present and it is desirable that the appointment of Shri Tandon and the payment of the remuneration to him is approved by the shareholders. The Board of Directors recommends the passing of the resolution mentioned under item no. to be calculated at a rate of 1% of the net profits of the Company in accordance with the relevant provisions of the Companies Act.50 lac (Rupees fifty lac) per annum and further subject to such amount as may be decided by the Board each year in such manner as they may from time to time deem fit & proper. Mukherjee Road. N. it requires the approval of Shareholders.2010. are interested in the aforesaid resolution being recipients of the commission. except Shri Deepak Tandon and the Manager of the Company. The resolution also proposes to authorize the Board and/or any Committee thereof and/or the Chairman of the Board to make annual increments in the Basic Salary and Special Allowance of Shri Tandon subject to limits as specified in the said resolution. finance and taxation besides wide experience of over 26 years within the Industry. All the Directors. the 28th day of April. S. R. Considering the qualification and experience of Shri Tandon. except Shri Tandon is concerned or interested in the two resolutions aforesaid. 1956. 2010. 9 as a Special Resolution. 9 The approval of Shareholders taken earlier for payment of Commission on net profits to Directors other than in whole-time employment has expired on 31. 1956 ITEM NO. the Board at its meeting subsequently held on 28th April. This may also be treated as disclosure under Section 302 of the Companies Act. 7. The Board is recommending for approval of continuance of payment of the commission to the Directors other than the Directors in whole-time employment and Managing / Whole-time Directors for further period of five years from 01. By Order of the Board Registered Office: 9/1.

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31st MARCH.29 1. 1956 read together with General Circular no.87 2.07 5. being Unclaimed Dividend and interest on Fixed Deposits of the Company as well as that of an earlier merged Company.292.87 2.97 111. FINANCIAL RESULTS Particulars 31st March.13.07 75. 2010 5.96 Net Profit Less: Debenture Redemption Reserve Amount available for appropriation which the Directors have appropriated as under: (i) Proposed Final Dividend (ii) Tax on Proposed Final Dividend (iii) Interim Dividend (iv) Income Tax on the Interim Dividend (v) General Reserve (vi) Balance carried forward to next year DEFERRED TAX In terms of the Accounting Standard on ‘Accounting for Taxes on Income’ (AS-22) a sum of Rs.00 353.74 14.70 648.78 279.80 36. the Company deposited about Rs.13) 202. Your Directors have pleasure in presenting the ninety-first Annual Report and the Audited Statements of Accounts of the Company for the year ended 31st March.09 25. TRANSFER TO INVESTOR EDUCATION & PROTECTION FUND In terms of sections 205A and 205C of the Companies Act.74 237.30 172.52 353.01 520.00 2. 2002 issued by the Department of Corporate Affairs.25 136.71 136.34 (Rupees in Crore) 31st March.29 410.145.29 1. during the year under review in the ‘Investor Education and Protection Fund’ created by the Central Government. 101.74 Net Sales/Income from Operations (including Excise Duty) Other Income Total Income Gross Profit Less: Depreciation (Net of transfer from Revaluation Reserve) Provision for Income Tax Provision for Fringe Benefit Tax [charge/(credit)] Provision for Deferred Tax [charge/(credit)] 14 .53 10.75 24.26 Lac.23 378.63) 142. 22/2002 dated 23rd September.29 crore has been debited to the Profit & Loss Account being Deferred Tax Liability for the year under review.63 125.75 44.94 4. 2009 4.09 14.86 45.202.00 (0.00 (16. 2010.47 10. 2010 Dear Members.00 82.020.368.

Work at Spun Pipe Section continues to be under suspension. as per detail given herein above.784 Thus.784 31st March. Production figures of this section given hereunder include 1.3.2010.25 per Share ) Final on 4.each @ Rs. Birla Tyres Unit-III and Unit-IV related to Truck / Bus Radial and Motor Cycle / LCV tyres started Commercial Production in March.86.466 14. 2009 declared an interim dividend and today has recommended the final dividend for the year ended 31st March. This has been primarily due to the increase in sales of Tyre Section from Birla Tyres Unit-II at Laksar. the immovable properties of Birla Tyres. Further.57.86. 2010 and October. The total benefit in top line and bottom line for all these expansions will get reflected in the coming year. State Bank of India. could not be carried out due to continued suspension of work and barricade in front of the factory gate by a section of workers at the said Section.5 MW has been completed. After completion of trial run.29. 2009.29.5.1(b) and 3.2(a) respectively at the Spun Pipes & Foundries Section of the Company. 3.25 per Share (Previous year 2. the same are self-explanatory and need no further explanation.65 million ton per annum and thermal power plant of 17.610 metric ton of cement produced during trial run of the 4th Unit: 15 .65.22.57.03.43. 2010 on Ordinary Shares as under: 31st March. So far as paragraphs 3. the total dividend of Rs.29.) 10.16 of the report are concerned.50 per share. the neccessary security or charge pending to be created in respect of Short-term Debentures will be created within the stipulated time provided by law if not redeemed before. AUDIT REPORT As regards paragraphs 3.2(a) referred to by the Auditors in its Report.65. 2010 (Rs.22. GENERAL REVIEW During the year under review our turnover for the first time crossed Rs. Rayon Section also showed higher profitability due to strong domestic demand. has been paid / recommended by the Board for the financial year ended 31.25 per Share (Previous year Rs. Capacity at Vasavadatta Cement was also increased which started Commercial Production in August.) Interim on 4.43.10/.25 per Share ) 10. Regarding the paragraph 3.2. the physical verification of the fixed assets (in phased manner) and inventories as referred in para nos. 3. 2009 (Rs.300 metric ton of clinker and 76. 2009 respectively. a Section of the Company at Uttarakhand.ANNUAL REPORT & ACCOUNTS DIVIDEND 2009-10 The Board of Directors in its meeting held on 30th October.318 Ordinary Shares of Rs. 2009.10/.000 Crore. Further.19 of the Report.466 14.318 Ordinary Shares of Rs. The profitability of the Company during the year has also increased due to good results of Cement Sections and enhanced capacity of Tyre Sections besides good treasury management and cost control effected throughout the Company.1(b) and 3. Haridwar.9(b) and 3.5. The Short-term Debentures issued during the year were redeemed before the security could have been created within the stipulated period provided by law. commercial production of Cement has started from 7th August. Operational performance of this section continues to be good and it has achieved highest ever production of Clinker as well as Cement during the year. paragraph 4(f) referred to by the Auditors’ in its Report is self-explanatory and requires no explanation.each @ Rs. could not be created due to continuing verification of search report of the said properties by the empanelled lawyer of the Lead Banker. CEMENT SECTIONS Vasavadatta Cement Your Directors are pleased to report that the expansion undertaken at this section by setting up the 4th Unit comprising of Cement capacity of 1.

17% of the power generated from the power plants was sold to Gulbarga Electricity Supply Company Ltd.045 metric ton was sold during the year. the Section received two prizes in the ‘Mines Safety Week’ under the aegis of DGMS . particularly reduction in excise duty. Consequently. cement prices are improving and are expected to improve further in coming months.11. the coveted Award of ‘Rashtrapati Puraskar’. Due to surplus capacity. Management has taken various control measures to keep the cost of cement under control. In the year 2009-10.390 42. 16 .589 Cement dispatches were adversely affected due to non-availability of adequate wagons and as a result clinker to the extent of 4. Captive power generation catered to about 98% of the total power requirement of the section.200 13.78.98. quality of its products. As a part of corporate social responsibility. cement prices were not able to keep pace with rising costs for major part of the year resulting in pressure on margins.Production Clinker Cement 2009-10 (Metric Ton) 2008-09 (Metric Ton) 42. the unit has undertaken various social welfare and community development activities such as construction of water tank and children’s park. health camps. However.24. shortage of rail wagons for movement of cement.41. Kesoram Cement Production figures of this Section are as under: Production Clinker Cement 2009-10 (Metric Ton) 2008-09 (Metric Ton) 11. the Company is also exploring possibilities of further expansion or a Green field unit in nearby area. There has been substantial increase in cost of raw materials and coal. However.496 39. helped to maintain the growth momentum. coal and raw materials and unsatisfactory coal availability position in absence of adequate coal linkage arrangements. seven Scout & Guide students of our School . lack of corresponding pickup in demand.52. from the month of March 2010. distribution of agricultural implements to the villagers.175 15.Drilling & Blasting First Prize and Method of Working 2nd Prize. The Section has achieved higher production despite several challenges such as substantial build-up of new capacity by other companies in the industry. vocational training and skill development activities. the Section had to sell 55. Cement production and dispatches were adversely affected due to Telangana agitation and paucity of Railway wagons for movement of cement.61.Vasavadatta Vidya Vihar have won recently. etc.97. water conservation. our employees bagged various prizes.12 million KWH during the previous year. The unit has built-up an excellent brand image of its blended cement “BIRLA SHAKTI” and was able to market about 81% of its total output in PPC cement segment.15 million KWH being 12.024 metric ton of clinker. The unit is also exploring the possibilities of power generation from Waste Heat Recovery System which will give considerable advantage in cost of power generation. in its surrounding areas.373 34. Industrial relations with the employees were good during the year. There was substantial capacity expansion also in Andhra Pradesh.833 10. Apart from the above. encouragement to infrastructure development and improving liquidity in the economy have however. Stimulus measures undertaken by the Government.03. 54.615 This Section also has achieved highest ever production of Clinker. plantation of trees. However. Captive power generation was 445.07 million KWH during the year under review as against 338. which had put pressure on sales realizations and profitability of the Section. Also in the various safety competitions conducted on the occasion of ‘Gulbarga Region Industrial Safety Day 2010’ (GRISD) celebration. However. established brand image and proper logistic management have enabled the section to achieve good performance in a year characterized by continued slowdown in the construction sector and weak monsoon. Further.

The T. TS-16949. which was presented by the Hon’ble Chief Minister of Andhra Pradesh Sri K. we have been able to increase our market share from 15% to 18%. The civil construction for the above expansions is in full swing and order for the major machineries and equipments have already been placed. are likely to decline from current level due to upward trend in pulp and sulphur prices.T. 2010 respectively. Relations with the employees were cordial during the year. Basantnagar Limestone Mines of this Section bagged two 1st prizes for “Environmental & Health Management” and “Maintenance and Operation of Heavy Earth Moving Equipments” and 2nd prize for “Drilling and Blasting” from the Director General of Mines Safety.ANNUAL REPORT & ACCOUNTS 2009-10 Captive Thermal Power Plant of this Section generated 113. against 306 M. As a part of corporate social responsibility. In spite of stiff competition. The exports were 612 M. The commercial productions in both the projects are likely to commence by March. The board has approved further expansion of capacity to produce Truck/Bus Radial tyres by 85 MT/day at Haridwar and for Passenger Car Radial tyres of 80 MT/day at Balasore involving capital outlay of Rs.34% compared to last year. The Section continues to have the distinction of being certified for ISO-9001. Vocational Training Centre for Youth. performance of VFY (Viscose Filament Yarn) business is satisfactory. Industrial relations were cordial during the year. Rosaiah on 5th April 2010. Captive Power Plant plays a vital role in improving the cost competitiveness and providing quality power to the Section. of previous year. 2011. Tri-cycles for physically challenged people.T. against 521 M. Sewing Machines. ISO-14001. again the production capacity of this Section could not be fully utilized. Relations with employees have been cordial and conducive to growth during the year.T. The suit challenging the validity of imposition of Electricity Duty on captive power generation @ 25 paise per Unit from 17. 450 Crore respectively. The performance of Section’s chemical business was satisfactory despite the prevailing global economic conditions and cheap imports. 350 Crore and Rs. Margins in future. Though the Section has recorded commendable sales growth but due to sharp increase in raw material prices particularly of rubber in quarter III and quarter IV. 17 . SA-8000. 2009 and March.T. Animal Health Camps. Strong domestic demand and higher penetration in export market led to substantial growth in volumes. the Section is continuing the rural and community development and welfare activities in nearby villages by running of Agricultural Demonstration Farm.2. of previous year. the Section’s operating margin improved in spite of the steep hike in coal & electricity costs. The Company’s world class Green field facility for production of Motor Cycle/LCV and Truck/ Bus Radial tyres started commercial production in October. Model Dairy Farm. This Section bagged the FAPCCI (Federation of Andhra Pradesh Chambers of Commerce & Industry) Award of EXCELLENCE IN WORKERS’ WELFARE for the year 2008-09. Blood Donation Camps. The exports were 293 M. about 82% of the power requirement of the cement plant is met from the Captive generation and balance power was purchased from APTRANSCO.849. In this Section. BIRLA TYRES SECTIONS The gross turnover of the Section this year has been Rs. OSHAS-18001 and TPM.29 million KWH of power.07. In view of this. out of which 0.947.1. Hyderabad during the Mines Safety Week celebrations. coupled with reduction in the cost of all the major raw materials – pulp and sulphur. the Section is considering the feasibility of power generation by Waste Heat Recovery System.62 Crore as compared to Rs.23 crore showing an increase of about 46. RAYON & TRANSPARENT PAPER SECTIONS Amidst challenging environment.P (Transparent Paper) business continues with unfavourable market environment resulting into poor realization mainly due to competition with cheaper imports & substitutes. Distribution of agricultural implements.41 crore in the previous year. Export demands are also likely to be impacted due to stiff competition from China and the imposition of Anti-dumping duty by the Government has not been of much help in arresting cheap imports in the country.2003 by the Government of Andhra Pradesh is still pending before the Hon’ble High Court of Andhra Pradesh.03 million KWH were supplied to APTRANSCO. Pulse Polio Programs and promotion of Self Help Groups of women for their economic development etc. profitability has been adversely affected. As a result of the above. The recent hike in the rate of Excise Duty will further impact the demand and profitability of this product. The export sales for the year under review amounted to Rs 361.48 crore as against Rs 240.

061 MT 7. Production of Hydrogen Gas was lower due to lesser demand from Vanaspati Industry in the first half of the year but improved considerably towards end of the year. The blockade and barricade in front of the factory gate is continuing. iii) iv) CORPORATE GOVERNANCE Adequate steps to ensure compliance of all the mandatory provisions of ‘Corporate Governance’ as amended in the Listing Agreements of the Stock Exchanges with which the Company’s Shares are listed have been taken and your Company has ensured its required compliance. there was improvement in demand for joint products – Chlorine and Hydrochloric Acid – towards the end of the year. HINDUSTHAN HEAVY CHEMICALS SECTION The production figures of the Section were as under : Production Caustic Soda Lye Sulphuric Acid Hydrogen Gas 2009-10 11.18. The Section takes various measures on its own and also in collaboration with various government agencies for improving awareness of environment and safety.T. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act.0. Relations with employees continue to be cordial. 2010 and of the profit of the Company for the financial year ended on that date.737 M. During the year Rs 4. INSURANCE Appropriate Insurance cover has been taken for the properties of the Company. for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. 8. Production of Caustic Soda was affected due to frequent breakdowns and power trippings. DIRECTORS’ RESPONSIBILITY STATEMENT Pursuant to Section 217(2AA) of the Companies Act.139 M. However. 18 .T. have been selected and applied consistently and such judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March. 19.98 crore (Rs 414. The Section continues to enjoy certificates for Quality and Environment management under ISO-9001-2000 and ISO-14001-2004. EXCISE DUTY During the year under review a sum of Rs 289.SPUN PIPES SECTION The factory of this Section continues to be under suspension of work on and from 2nd May. the applicable Accounting Standards have been followed by the Company. appropriate Accounting Policies.882 M3 Demand for Caustic Soda was subdued during the year due to slow down in Aluminium sector. 1956. 1956. 2008.35 crore in 2008-09) was paid on account of Excise Duty on various products manufactured and sold by your Company.53 crore were recovered against old outstanding while sale was of Rs. as a result finished goods and other material lying inside the factory could not be removed. as mentioned in Schedule 17.53.453 M 3 2008-09 11. All finished goods outside the factory have been sold. the Directors to the best of their knowledge and belief confirm that: i) ii) in the preparation of the Annual Accounts.35 crore only. and the annual accounts have been prepared on a going concern basis.663 MT 19.

MAHESHWARI B. Shri K. K.8. retire from the Board by rotation but are eligible for reelection. FOREIGN EXCHANGE EARNINGS AND OUTGO. Sr. 1956. K. the Auditors of your Company. Directors of your Company. 1975 forms part of this Report and the same is enclosed as Annexure ‘C’. 28th April. to conduct cost audits of the various products manufactured by the Company. AUDITORS The Company has received a requisite certificate pursuant to Sec.ANNUAL REPORT & ACCOUNTS 2009-10 A separate Report each on Corporate Governance and Management Discussion & Analysis is annexed hereto as Annexure ‘A’ along with Auditors’ Certificate for its due compliance and Annexure ‘B’ respectively as part of Annual Report. which have largely contributed to the efficient operations & management of the Company. B. PANDE AMITABHA GHOSH P. APPRECIATION We wish to acknowledge the understanding. MALLIK MANJUSHREE KHAITAN Directors Kolkata. as required under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. 1956 read with the Companies (Particulars of Employees) Rules. the Government of India. is complying with ongoing cycle of peer review process as required by the ‘Statement on Peer Review’ issued by The Institute of Chartered Accountants of India (ICAI) together with a copy of the peer review certificate dated 30. BIRLA K. Finance & Taxation) and Secretary resigned from the services and also from the Board on 31st March. 2009 Shri S K Parik.G. CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION. Pande.K. Banks. CHOKSEY G.B. S. is annexed hereto as Annexure ‘D’. the State Governments and the concerned local authorities. support and the services of the sincere workers. in terms of the directives of the Central Government under section 233B of the Companies Act. staff and executives of the Company. CASH FLOW ANALYSIS The Cash Flow Statement for the year under reference in terms of clause 32 of the Listing agreement with the Stock exchanges is annexed hereto. 2010. Your Directors also wish to place on record the valuable co-operation & support received from the Financial Institutions. 2010 after more than 55 years of service to the Company in various capacities. Maheshwari and Shri G. who retire at the ensuing Annual General Meeting and we recommend their re-appointment. DIRECTORS On 31st December. G. BAJORIA P. 1956 and a confirmation that Price Waterhouse.PATODIA Secretary Whole-time Director DEEPAK TANDON 19 . A Statement containing necessary information. Your Directors wish to place on record their appreciation for the services rendered by Shri Parik during his tenure as a Senior Executive as well as Director of the Company. 1988.224 (1B) of the Companies Act. PARTICULARS OF EMPLOYEES The particulars as required under section 217(2A) of the Companies Act. COST AUDITORS The Company has appointed qualified Cost Auditors. P. We would also like to express sincere thanks to our Shareholders and Debenture holders for their confidence and understanding. President (Account. Chairman B. K.2006 issued by the ‘Peer Review Board’ of ICAI regarding their eligibility for re-appointment as Auditors.

f. *** Senior President of Birla Tyres(both Balasore & Haridwar Sections).01. accountable and fair management. The details of the Corporate Governance compliance by the company as per the Clause 49 of the Listing Agreement with Stock Exchanges are as under: I.12.. of India – Investor) Smt. companies under Sec. 01.K.ANNEXURE “A” REPORT ON CORPORATE GOVERNANCE CORPORATE GOVERNANCE Your Company has been practising the principles of good Corporate Governance. K.K. A. 25 of the Companies Act. Choksey Shri A. The Company is committed to transparency in all its dealings and places emphasis on business ethics. executive & independent directors. the Audit Committee and the Shareholders’ Grievance Committee have been considered for this purpose. Birla Shri K. No. 20 . B. he discharges the functions of Senior President (Accounts. Mallik Shri G. DIRECTORSHIPS & COMMITTEE POSITIONS HELD IN OTHER COMPANIES AND SHARES OF THE COMPANY HELD AS AT 31ST MARCH. Maheshwari Shri B.2009) Executive *** * also independent in terms of provisions of clause 49(I)(A)(iii) ** private companies.2010) Category Non-Executive Non-Executive Non-Executive* Non-Executive* Non-Executive* Non-Executive* Non-Executive* Non-Executive Company Secretary (up to 31.P.e.2010. Parik (up to 31. Finance & Taxation) of the company and continues to discharge his duties and obligations previously performed by him as Senior President of Birla Tyres(both Balasore & Haridwar Sections).f. i) BOARD OF DIRECTORS: COMPOSITION OF BOARD. Pande (Represents Life Insurance Corpn.G. of outside Directorships held (excluding **) 4 1 4 1 13 4 1 1 4 3 Outside Committees # As a Member (including Chairperson) None None 2 2 9 4 1 None 2 None (excluding **) As a Chairman / Chairmanship None None 1 None 5 1 1 None 1 None Shares held 167707 485 436 500 Nil 200 Nil 234114 39 Nil Directors Shri B.01.03.e. 2010: The Board of the Company comprises of adequate blend of professional. which comprise all activities that result in the control of the Company in a regulated manner. Notwithstanding Shri Tandon being the Director. 1956 and foreign companies. keeping in view the needs and interests of all its Stakeholders. B. 01. Bajoria Shri P. aiming to achieve transparent.K. has been appointed as an Additional Director of the Company w. # only two Committees viz. Ghosh Shri P.2010) Shri Deepak Tandon (w. COMPLIANCE OF MANDATORY REQUIREMENTS: COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE: The basic philosophy of Corporate Governance in the Company is to achieve business excellence and dedicate itself to increasing longterm shareholders’ value. Manjushree Khaitan Shri S.

i. K. of Meetings attended 4 3 4 iii) SECRETARY: Shri S. The composition of the Audit Committee and the attendance of each member at these meetings were as follows: Sl. K. v. 2009.2009 to 31. iv. B. on 1st May. 2009. No. K. Mallik Smt. 2010. G. No. 25th July.2010 the Audit Committee consists of three non-executive independent Directors.ANNUAL REPORT & ACCOUNTS ii) ATTENDANCE OF DIRECTORS PRESENT IN THE MEETINGS HELD DURING THE YEAR 2009-10: 2009-10 Five board meetings were held during the financial year ended 31st March. Director was the Secretary of the Company as well as Audit Committee up to 31st December. ii) COMPOSITION. Parik. 2009 and 28th January. N.K.01.04. 2009 and 28th January. Birla Shri K. 26th June. 25th July. Members Shri P. Members Shri B. 2010. Choksey Shri Amitabha Ghosh No. Bajoria Shri G.2010. The Code of Conduct is available on the website of the Company. K. which could lead to potential conflict of interest with the Company. : Not applicable as he was appointed as director w. Mallik . Maheshwari Shri B. ix. With effect from 1st January. Parik Shri Deepak Tandon No. K. K. vii. i. Pande Shri P. 2009. x. Manjushree Khaitan Shri S. 2010 i. of Board Meetings Attended 5 3 3 3 4 5 5 4 4 1 AGM held on 26. ii.A. 21 .e. 01. 30th October.03. 2010 i.03. C. It has received the necessary declarations affirming compliance with it from all of them during the period from 01. There were no material personal interests adverse to the interest of the Company and improper personal benefits received.e. 1956. ii. i) AUDIT COMMITTEE: TERMS OF REFERENCE: The Audit Committee has been mandated with the same terms of reference as specified in the revised Clause 49 of the Listing Agreements with Stock Exchanges and covers all the aspects stipulated by the SEBI Guidelines. P. 2009.K.06.2009 Attended Yes Yes Yes No Yes Yes Yes Yes Yes N. iii. Secretary of the Company is Secretary of the Audit Committee. Shri S. iii) CODE OF CONDUCT: The Company has a Code of Conduct for all its Board Members and Senior Management personnel for avoidance of conflicts of interest. vi.A. NAME OF MEMBERS AND CHAIRMAN: As on 31. as a result of his/her position by the Board Members / Senior Management personnel.f. The terms of reference also fully conform to the requirements of section 292A of the Companies Act. 2009.e. iii. The attendance of each director at these meetings was as follows: Sl.Chairman Shri P. 30th October. Four meetings were held during the financial year ended 31st March. Choksey Shri Amitabha Ghosh Shri P. on 2nd May. 2010.2010. viii. Patodia. 2009.

Joint President (Commercial) at the Corporate Office of the Company.G.01. The Quarterly Unaudited Financial Results as well as the Annual Financial Statements during the year ended 31st March. S.000 2.2009 and 25.P.000 1. Pande* Shri S.00. REMUNERATION COMMITTEE: The Remuneration Committee consists of three Non-Executive Independent Directors i. No. 2009 st 25th July. Shri U.000 1 2 3 4 5 6 7 8 9 10 22 .50.000 2.000 2. 2009 th 1 May. 2009.000 60.50.K. the other two members are also Senior Chartered Accountants. 2010 were reviewed and examined by the members of the Audit Committee before recommendation of the same to the Board of Directors for their perusal and approval on the following dates:Financial Reporting Date of approval by Audit Committee st vi) vii) Annual Financial Statements & Results for the year ended 31 March. Mallik Smt. Maheshwari Shri B.000 60.Ghosh Shri P. 2010 Quarter ended 30th September.Choksey Shri A.000 1.40. THE DETAILS OF REMUNERATION PAID DURING THE YEAR TO THE DIRECTORS ARE AS UNDER Sl. Pande.000 2. Shri B.50. Shri P. K. 2009 D. 2009 30th October. Bajoria Shri P. Joint President (Finance) and Shri Suresh Kumar Sharma. Chairman of the Audit Committee is a Senior Chartered Accountant with the requisite Financial and Accounting expertise.000 4.2010 to bring more transparency and proper consideration in the system of revision of remuneration of the senior executives. v) The Audit Committee comprises of all non-executive and independent directors and they are the persons of vast knowledge and experience.70.00. 2009 28th January. Choksey.) Shri B.K.00. Sr. The Chairman of the Audit Committee attended the Annual General Meeting of the company held on 26th June.000 40. The Statutory Auditors.50.000 20.000 2. Shri P.000 Commission for the financial year 2008-09 paid in financial year 2009-2010 2. K. 2009 and he ensured that necessary clarifications and explanations were provided to the members of the Company on issues regarding accounts and finance.Manjushree Khaitan Shri G.07.000 40. The Internal Auditors and Cost Auditors. on 24. Ghosh.iv) INVITEES: (as & when considered necessary) a) b) c) d) Shri G. a nominee Director of LICI attended the meeting held on 1st May. K. Asopa.50.80. Bajoria as Chairman and other two members are Shri P.000 2.000 60. 2009 Quarter ended 30 June. The Committee met twice i.) 1. Choksey and Shri A. K. Name of the Directors Sitting fees paid for Board Meetings (in Rs. P.000 2. Mallik and Shri P. 2009 Quarter ended 31st December.50.00.K. Birla Shri K.000 80. Sr.K.50. Mallik.e. B.000 6.e.000 2. B.000 10. All the present members are financially literate.50.000 Committee Meetings (in Rs. Parik** Shri Deepak Tandon*** Total: 1.000 80.20.

P. 2010.27. 2010 during the financial year 2009-2010.365/. Finance & Taxation and Secretary up to 31st December. Shri Deepak Tandon received the remuneration of Rs. Shri S K Parik resigned from the Committee during the year and in his place Shri Deepak Tandon was inducted as the member w. 1st April.000/-. being the Director.K.03. POSITION AS ON 31st March. 25th January.e. drew the remuneration of Rs. Life Insurance Corporation of India.f.for the period 1st January.00. being the other member. 2010 OF THE SHAREHOLDERS’ COMPLAINTS RECEIVED & REDRESSED DURING THE FINANCIAL YEAR: Complaints received from Investors Stock SEBI directly Exchanges ROC Nil Nil Nil Nil Nil Nil Total complaints Total No. 2005 & 26th June.01. 2005. Shri Deepak Tandon. 1956. President. It deals with the approval of transfer and transmission of securities.12. 1st January.78. The Committee met 15 times during the year under review.019/. 01.10. SHAREHOLDERS’ COMMITTEES: i) The “Share Transfer and Finance Committee” is comprised of two non-executives independent Directors namely Shri B. 2010 which is subject to approval of shareholders in the ensuing Annual General Meeting.P.2010 Shri S. Shri S K Parik resigned from the Committee during the year and in his place Shri Deepak Tandon was inducted as the member w. issue of duplicate certificate(s) / advices and other Shareholder related issues in addition to matters pertaining to certain finance related decisions. Parik at the rate of 1 per cent of the net profit (restricted to maximum Rs. on 13th July. effective financial year 2007-08. Secretary is the “Compliance Officer” of the Company for compliance of the requirements under the Listing Agreements with the Stock Exchanges. * enhanced from Rs 15 lacs per annum. 2009. This Committee specifically looks into redressal of Shareholders’ and Investors’ complaints with a primary objective to improve investor relations and had met thrice i.2010 is also not entitled to the aforesaid commission.as Sr. in Shareholders’ meeting held on 26th June.ANNUAL REPORT & ACCOUNTS * ** *** Commission & fees paid to the nominating Institution.03. Bajoria & Shri P. Shri S.2009.f. 23 .K. K. K. for a period of 5 years w. The Committee is headed by Shri B. of grievances received during redressed outstanding as on 2009-10 31. Patodia.25 Lacs* per annum) of the Company computed in the manner referred to in Section 198/349 of the Companies Act. no other pecuniary relationship or transactions vis-a-vis the Company exist with the Non-Executive Directors. Besides the sitting fees & travelling expenses to attend any meeting of the Board or any Committee thereof.f. 2010 to 31st March. 1st January. E. who was appointed as Additional Director w.01.e. Besides the above. 2010. Parik discharged this function till 31. 24.e. Shri P. 2010. Bajoria. Commission payable to the Directors for the financial year 2009-2010 is Rs. 2009 during the financial year ended 31st March.e. the approval of the Shareholders in its meetings held on 30th June. 2008. The Company also has a “Shareholders’/Investors’ Grievance Committee” consisting of two non-executive independent Directors namely. 2009-10 Notwithstanding Shri Parik. P. 2010 and 22nd March.f.2010 51 9 Nil 5 73 138 51 9 Nil 5 73 138 Nil Nil Nil Nil Nil Nil ii) a) Nature of Grievances Non-receipt of Dividend/Interest/ Redemption Warrant(s) Non-receipt of Share / Debenture Certificate(s) Non-Receipt of Duplicate Share/ Debenture Certificate(s) Demat related grievance(s) Non-receipt of Annual Report(s) TOTAL: b) 33 4 Nil 5 69 111 2 Nil Nil Nil 4 6 16 5 Nil Nil Nil 21 NUMBER OF PENDING COMPLAINTS AS AT 31. Chairman & Shri B. Mallik and Shri Deepak Tandon is the other member of the Committee.2010: NIL With effect from 01.59. Mallik.K. Bajoria and Shri Deepak Tandon.e. 2008 enables the Company to pay commission in every financial year to its Directors (to be divided amongst them equally) except Shri S.

f. The shares held by the above Directors have already been disclosed under the caption Composition of Board of Directors under serial no. penalties. 11. He is Director of Precious Services & Consultancy Ltd. Kesoram Insurance Broking Services Ltd.. 25 of Schedule 17 of the Annual Accounts.M. strictures imposed on the Company by the Stock Exchanges. Further. Disclosure for reappointment / appointment of Directors.00 A. 2007 th th 26 June. b) Shri G. Pande is a Zonal Manager at Central Zonal Office of Life Insurance Corporation of India nominated by it on the Board of the Company. and does not hold any committee membership. ii) Details of Non-Compliance by the Company. In the AGM on 26th June. c) G. He is an ex-Chairman of CII Orissa State Council (2003-2004) and TQM-HRD Sub Committee.I. SEBI or any Statutory authorities on any matter related to Capital Markets: 24 . These are not having any potential conflict with the interests of the Company at large.e. 2007: No Special Resolution was transacted. no Special Resolution is proposed to be conducted through Postal Ballot in the ensuing AGM. and is Chairman of Shareholders’/ Investors’ Grievance Committee of Directors of the said company. 1956 for the period of 3 years w.M. 2008: For increasing the commission to the Directors of the Company at the rate of 1% of the net profit of the company to be divided amongst them equally except Shri S. Parik subject to an amount to be decided by the Board every year not exceeding Rs. 2007. 2009 ii) SPECIAL RESOLUTIONS PASSED IN THE PREVIOUS THREE AGMs : a) b) In the AGM on 26th June. DISCLOSURES: i) Disclosure on materially significant related party transactions: Details of related party transactions during the year have been set out under Note No.F.00 A. CII. 11.25 Lacs in every financial year computed as per Section 198(1) of the Companies Act. Ltd. 2008 26th June. and Zenith Distributors & Agents Ltd. Maheshwari is an Industrialist having rich experience in the field of business and management. 2009: No Special Resolution was transacted. and Jayshree Traders Pvt. Shri Deepak Tandon is a Chartered Accountant.00 A. Eastern Region (2005-2008). 2010 through Postal Ballot. He is associated with many organisations and is a member on the Board of Automotive Tyre Manufacturers’ Association & Indian Paper Manufacturers’ Association and Director of TPM Club India. K. iii) iv) v) No Special Resolution was passed during the financial year ended 31st March. He is not holding Membership / Chairmanship of any Committee of Directors of any other body corporate. 29 June. c) In the AGM on 29th June. B(i) above. He is having vast experience and knowledge in the field of accounts and finance besides the hands on experience of more than 26 years of the Tyre and Paper Industry. i) GENERAL BODY MEETINGS: Details of Annual General Meetings (AGMs) : Date of AGMs th AGMs AGM(88 ) AGM(89th) AGM(90 ) th Location Kolkata Kolkata Kolkata Time 11. Resume and other information of the Directors retiring by rotation & getting reappointed as required to be disclosed under Clause 49(IV)(G)(i) of the Listing Agreement is as under:a) Shri K. 1st April. G.M. he is Director of the company since 1963 and is also the Director in Hyderabad Industries Ltd. B. He is representing LICI on the Board of J K Tyre & Industries Ltd.

Report on Management Discussion and Analysis and Shareholding Pattern etc. i) MEANS OF COMMUNICATION: Financial Results & ANNUAL REPORTS ETC. Results and Capital Employed.com. Venue “Kala-Kunj”.m. Kolkata-700001 Bombay Stock Exchange Ltd. Societe Anonyme/R. Dalal Street. Balance Sheet. Dainik Statesman (Bengali – local edition) and are also sent immediately to all the Stock Exchanges with which the Shares of the Company are listed. 6222. The Quarterly Unaudited Results and Annual Financial Results along with the Report on Segment Revenue.nic. 16th June. Cash Flow Statement. Corporate Governance Report. Profit & Loss Account. 7 Lyons Range. Mumbai-400 051 Societe de la Bourse de Luxembourg. Shakespeare Sarani. v) INFORMATION PERTAINING TO THE STOCK EXCHANGES: Listing on Stock Exchanges The Calcutta Stock Exchange Association Ltd.. 2010 to1st July. the same is also displayed on the Company’s website as and when such presentation(s) take(s) place. The official news release and other related information.C.P. 2010 ii) FINANCIAL YEAR : iii) DATE OF BOOK CLOSURE: iv) DIVIDEND PAYMENT DATE : a) The financial year of the Company covers 1st April to 31st March.ANNUAL REPORT & ACCOUNTS 2009-10 All the requirements of the listing agreement with the Stock Exchanges as well as regulations and guidelines of SEBI have been complied with by the Company. The site can be accessed at http://sebiedifar. Auditors’ Report. L-2011 Luxembourg 25 . Mumbai-400 001 National Stock Exchange of India Ltd. Exchange Plaza.B. I.00 a.165. 48. Bandra-Kurla Complex. are displayed on the aforesaid website of the Company.e.: The Quarterly Unaudited Financial Results and the Annual Audited Financial Results as taken on record and approved respectively by the Board of Directors of the Company are published in leading national newspaper. These results are also posted on Company’s web site www. No penalty has been imposed or stricture has been made by SEBI.. H. The Business Standard (English – all India edition).. i. ii) MANAGEMENT DISCUSSION AND ANALYSIS REPORT (MD&AR): The Management Discussion and Analysis Report as reviewed by Audit Committee set out in Annexure “B” forms part of the Annual Report. i) Date GENERAL SHAREHOLDER INFORMATION: NEXT ANNUAL GENERAL MEETING: Time 11. iii) Whistle Blower Policy: The Company does not have any Whistle Blower Policy as of now but no personnel is being denied any access to the Audit Committee. Whenever any presentation relating to the Company’s working to analysts/bankers etc. iv) Details of compliance with mandatory requirement and adoption of non-mandatory requirements: All the mandatory requirements have been appropriately complied with and the non-mandatory requirements are dealt with at the end of this Report. 2010. if any. 2010 (both days inclusive) On or after 9th July. Kolkata-700 017 1st July. Directors’ Report. Stock Exchanges or any Statutory Authorities on matters relating to Capital Markets during the last three years. is made. Bandra (E).kesocorp.B. Phiroze Jeejeebhoy Towers.in for information required. can also be retrieved by investors from the Electronic Data Information Filing and Retrieval System set up by the National Informatics Center in association with SEBI.

2009 January.T.T.T. 2010 February.90 325.60 361.00 391.80 325.00 312. 2009 December.20 160. N.05 384. 2009 September. N.95 258. 2010 March.00 393. N. 2010 * Note: There was no trading during the year.00 321.50 306. 2010 February. for the Company’s Ordinary Shares in Demat Form: INE087A01019 d. 2009 July.00 374.00 391.T.T.00 165.T. 2009 August. N.T. N. N.90 375. 2009 July 2009 August.00 325. 2010 Monthwise Reporting 26 .00 315. c.00 321.90 300. 2009 October. Depository Connectivity: NSDL and CDSL STOCK MARKET PRICE DATA: Calcutta Stock Exchange * High Low N. N.b) vi) Stock Code for: Bombay Stock Exchange 502937 National Stock Exchange KESORAMIND Calcutta Stock Exchange 10000020 Luxembourg Stock Exchange 492532205 The annual listing fees of these Exchanges have been paid by the Company for the year 2009-2010.T.T. ISIN No. 2009 November. Bombay Stock Exchange High Low 180. N. N.T.T. N.00 345.25 256.00 377.50 328.70 364. N. N.25 382.00 404. N. 2009 December.00 333.90 135. N.T.T.00 246.T. N. N.05 300.00 328. N.05 384.00 382.T.90 National Stock Exchange High Low 178.10 393.T. 2009 May. 2009 October.T. 2010 March.25 409. N.00 353.00 136. 2009 June.00 247.00 377.T. 2009 September. 2009 November.T. N. 2009 KESORAM PRICE VARIATION BSE SENSEX VARIATION May.T.00 Month April.40 333. N. N.10 300.00 332.30 404. N. Comparison between Kesoram Median Price Variation and BSE Sensex Variation in Percentage 160 140 120 Percentage Fluctuation 100 80 60 40 20 0 April. N.00 303. 2009 June.80 317.T.T. 2009 January.T.T.50 409.

200 77. there are no GDRs/ ADRs or any Convertible Instrument pending conversion to impact the Ordinary Share Capital of the Company. viii) REGISTRAR AND SHARE TRANSFER AGENT: M/s.63 1.70 2.: (033)2454-1961.39 100.03 0.002 26.73 0. of ordinary Shares held 1-100 101-200 201-500 501-1000 1001-5000 5001-10000 10001 – above Total: xi) No.68.03 0.84 83.83.36. Hazra Road.47 14.00 According to number of Ordinary Shares Held: xii) DEMATERIALIZATION OF SHAREHOLDING AND LIQUIDITY: As per SEBI’s Guidelines. mcskol@rediffmail.in. your Company’s Ordinary Shares are compulsorily traded in Dematerialized form for all the investors with effect from 31st May.20 100.226 1 79045 No.97 0.762 Shares were in Dematerialized form representing 80. 2010.318 No.98 4.41. 1999. Kolkata-700 029 Phone Nos.2010: a) According To Category Of Holding: Category Promoters Mutual Funds / UTI Financial Institutions & Banks Foreign Institutional Investors Insurance Companies NRI/OCB Private Body Corporates Individuals GDRs Total b) No. 3.89 16. The Company’s Registrar & Share Transfer Agent dispatches the transferred shares to the transferees immediately after the transfers take place.00 % of Shareholders 86.vsnl. of Shares 2102611 776242 1152898 912668 1660277 841674 38296948 45743318 % of Shares 26. the investors have an option to dematerialize their Ordinary Shares with either of the Depositories. OUTSTANDING GDRS / ADRS / WARRANT OR ANY CONVERTIBLE INSTRUMENTS.52 97. 2454-1892/3.09. CONVERSION DATE AND LIKELY IMPACT ON EQUITY: The allotment of Ordinary Shares for GDRs issued during the year 1996.54. e-mail.875 4.48 0. MCS Limited.57.000 shares.293 21. 2010 the Company awaits 70. With a view to expedite the share transfer process.94. of Shareholders 24 36 47 24 8 479 1. x) DISTRIBUTION OF SHAREHOLDING AS ON 31ST MARCH. However. of Shareholders 68419 5041 3376 1167 770 113 159 79045 % of Shareholders 0.05 0.21.56 6.: (033)2476-7350 to 54.00 % of Shares 4.875 GDRs from its holders for cancellation and delivery of shares against thereof. CRISIL INDEX ETC.ANNUAL REPORT & ACCOUNTS 2009-10 vii) PERFORMANCE IN COMPARISON TO BROAD BASED INDICES SUCH AS BSE SENSEX.833 75. 2474-7674.14 0. as on 31st March.842 70.net.094 2. of Shares 1. was completed in the same year.050 63.27 1.293 67.82 13. Single transfers above 10.036 8.57% of the total Ordinary Shares as on 31st March.com ix) SHARE TRANSFER SYSTEM : Share transfers of physical Shares are generally registered within a maximum period of 3 weeks from the date of receipt provided the documents are complete in all respects. 27 . As per agreements of the Company with NSDL and CDSL.27.00 No.99 3.52 1.32.38 4.60 1.) 77/2A.60 1.01 0.77 5. certain executives have been delegated with the authority to approve any single transfer not exceeding 10.70 100.24.49 1. As such. (Unit: Kesoram Industries Ltd.46 15.000 shares are approved by the ‘Share Transfer and Finance Committee’.41.72 100. Fax Nos.06 0. mcscal@cal2.94.43.

255177.O. Fax : 01332. Dist. Kolkata-700019 Phone . Cement Hyderabad 500028.2002.com P. Rly. is in force since 28. Orissa. 2nd Floor. com Birla Tyres Automobile Tyres and Tubes Rayon & Transparent Paper “Industry House” 10.com Shivam Chambers 53.O Adcconagar. Mukherjee Road. Kolkata-700017 Phone: 033-2282-2476-78 Fax: 033-2282-9370 E-mail: kesospun@cal. E-mail.033-2282-4721-24 Fax: 033-2282-8879 E-mail: rayon@cal. Run under name & style of Vasavadatta Cement 10-3-316/2.O. Haridwar.: 033-2281-4813/4717-20 Fax: 033-2281-4874 E-mail: ho@birlatyre. Dist. 2nd & 3rd Floors.com. Phone: 01332.P. Dist. xiv) PLANT LOCATIONS : Section Cement Factory Location Sedam.N. Near Tribeni. Crystal Towers.vsnl. 9/1. Uttarakhand . Phone: 040-23342296/8056 Fax: 040-23344109/7821 E-mail: hyderabad@vasavadattacement.net.net City Office 10-3-316/2.net.04.vsnl. Camac Street. Kolkata-700017 Phone. B.xiii) INSIDER TRADING: The Code of Internal Procedure & Conduct under The SEBI (Prohibition of Insider Trading) Regulations. Kesoram Above Andhra Bank.Balaram Dharma Sopan. Phone: 040-23348896/7843/ 7613 Fax: 040-23344109/23347821 E-mail: hyderabad@kesoramcement.Hooghly West Bengal-712513 Phone: 033-26846431-34/ 26846457 Fax : 033-26846461 E-mail: kesoram@rayonworks. Masab Tank. Dist.in “Industry House” 10.: 1863/1854 Fax: 033-2242-1931 E-mail: hhc_ho@vsnl. Crystal Towers. Hyderabad 500028. Kolkata-700001 Phone: 033-2213-1680-89 (10 Lines) Extn. Masab Tank.Karimnagar Andhra Pradesh-505187 Phone. Bansberia.co.247 663.Kuruda. PIN.org P. Chhanpur. Nayasarai. A.:bthdr@birlatyres.Hooghly West Bengal-712121 Phone: 033-26346462/6465/6620 Fax : 033-26346621 E-mail: spunpipe@cal. R. Birla Bldg. Tehsil Laksar.256000/256001. Via.: 08728 -228122/228125/228156 Fax: 08728-228160 E-mail: communication@kesoramcement. Khardah.in 8th floor.756056 Phone: 06782-254259/780/620 Fax: 06782-254225 E-mail: btbls@cal2. T. Camac Street.O. Road. A.com Basantnagar. 1992 as amended.P.in Gram Khedimubarakpur.vsnl.Gulbarga Karnataka-585222 Phone: 08441-276005/277403 Fax: 08441-276139 E-mail: communication@ vasavadattacement. Station: Kuntighat.net. Dist.com P. Above Andhra Bank. Dist. Balasore.net Kesoram Rayon Spun Pipes & Foundries Kesoram Spun Pipes & Foundries Heavy Chemicals Hindusthan Heavy Chemicals 28 .kesoramrayon.in 19. Syed Amir Ali Avenue. P. Kolkata-700116 Phone: 033-2553-2879/5183 Fax: 033-2553-3860/2583-9218 E-mail:hhcl_fac@vsnl.

Mallik being members as stated in item no.) 77/2A. demat and other matters. iii) Shareholder Rights : Half yearly results including summary of the significant events was sent during the year to the Shareholders of the Company.in II. Vii) Whistle Blower Policy: The Company does not have any Whistle Blower Policy as of now but no personnel is being denied any access to the Audit Committee..com b) For Redressal of Complaints and Grievances: The Secretary Kesoram Industries Ltd. iv) Audit qualifications: The Company at present does not have any qualification pertaining to the Financial Statements other than technical qualification on remuneration of Shri Deepak Tandon. K..ANNUAL REPORT & ACCOUNTS 2009-10 xv) Address for Correspondence: a) For routine matters: Any assistance regarding Share transfers and transmissions.PATODIA Secretary Whole-time Director DEEPAK TANDON 29 .2010.: (033)2243-7121 Fax No.03. Mukherjee Road. G. non-receipt of dividends.: (033)2454-1961. mcskol@rediffmail. 9/1. Kesoram Industries Ltd. Mechanism for evaluating non-executive Board members: Non-Executive Directors were being always evaluated by their own peer in the Board meetings during the year 2009-10.N. R. CHOKSEY G.vsnl. P. Kolkata-700001.D of I above. : Fax No. E-mail : mcscal@cal2. MALLIK MANJUSHREE KHAITAN Directors Kolkata. (033)2210-9455 kesocorp@cal3.: (033)2476-7350 to 54. 28th April. Bajoria as a Chairman.K. which is self-explanatory. Phone No. a Director. PANDE AMITABHA GHOSH P.vsnl. 9/1. S. ii) Remuneration Committee: The Company has re-constituted Remuneration Committee comprising of Shri B. B.net. Ojha. (033)2210-9455 E-mail: gkojha@kesoram. P. Shri P. v) vi) Training of Board members: There was no Directors’ training programme during the year ended 31. N. Chairman B. Some of the independent Directors have the tenure in aggregate on the Board of more than 9 years. : E-mail : (033) 2243-5453. Kolkata-700 029 Phone Nos. R. Kolkata-700001 Telephone Nos. Hazra Road. K. duplicate / missing Share Certificates. BAJORIA P. please write to or contact the Share Department of the Company at the address given below: Shri G. BIRLA K. K. 2010. 2474-7674. K. although there was no formal peer group review by the entire Board except the Directors concerned.in.net Or. MCS Limited (Unit: Kesoram Industries Ltd. MAHESHWARI B. Registrar & Share Transfer Agent: M/s. Choksey and Shri P.2242-9454/2248-6607.net. 2454-1892/3 Fax Nos. i) COMPLIANCE OF NON-MANDATORY REQUIREMENTS : The Board: The Corporate Office of the Company bears the expenses of the office of the Chairman. Mukherjee Road. K.K. change of Address.

04. issued by the Institute of Chartered Accountants of India and was limited to procedures and implementation thereof. 13390 30 . We 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. Place: Kolkata Date: 28th April.Declaration All the Board members and the Senior Management personnel have affirmed their compliance of the ‘Code of Conduct for Members of the Board and Senior Management’ for the period from 1st April. C. 301112E Chartered Accountants (S. we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreements. adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. 2010 in terms of clause 49(I)(D)(ii) of the Listing Agreement with the Stock Exchanges. The Company has established risk assessment / minimisation and internal control procedures which are being updated / formalised. Jain ) Chief Executive Officer AUDITORS’ CERTIFICATE REGARDING COMPLIANCE OF CONDITIONS OF CORPORATE GOVERNANCE To the Members of Kesoram Industries Limited We have examined the compliance of conditions of Corporate Governance by Kesoram Industries Limited. It is neither an audit nor an expression of opinion on the financial statements of the Company. The compliance of conditions of Corporate Governance is the responsibility of the Company’s management. Deb) Partner Membership No. Place: Sedam. Gulbarga Dated: 10. 2009 to 31st March. 2010 For Price Waterhouse Firm Registration No. In our opinion and to the best of our information and according to the explanations given to us. K. Our examination was carried out in accordance with the Guidance Note on Certification of Corporate Governance (as stipulated in Clause 49 of the Listing Agreement).2010 ( K. Dist. as stipulated in Clause 49 of the Listing Agreements of the said Company with stock exchanges in India. for the year ended 31st March 2010.

While demand for pipes has picked up but Cast Iron pipes continue to face very stiff competition from Ductile pipes. The major domestic players have announced significant expansion plans to meet the growing demand for commercial vehicle radial tyres. which has dropped mainly due to augmentation of new capacity. growth in vehicle demand and secondary factors like infrastructure development. In the Indian Tyre Industry commercial vehicle tyres take the lead and account for approximately 65% of the Industry’s turnover. Another significant difference between the Indian and the global Tyre Industry is the extent of radialisation in the commercial vehicle tyres. SPUN PIPES The Industry witnessed sluggish demand during the first half of the year under review. OPPORTUNITIES AND THREATS CEMENT In order to meet future demand for Cement. industrial production. where both the cement Plants of the Company are situated have been only 9% & 5% respectively due to sizable addition of new capacity which has put pressure on Cement prices as well. cheap substitutes resulting into restricted demand. B. TYRE The Indian Tyre Industry is mainly dominated by the organized sector and consists of five major players who together account for approximately 85% of the Industry’s turnover. INDUSTRY STRUCTURE AND DEVELOPMENT CEMENT Indian Cement Industry continues to be the second largest cement producer in the world with installed capacity of 244. Outlook and Risks & Concerns. 31 . The Industry’s demand for imposition of safeguard duty – in addition to prevailing anti-dumping duty – has been favourably considered by the designated authority resulting in sharp decline in imports towards the end of the year. Segmentwise Performance. there does not appear to be any further scope of development. Original Equipment Manufacturers (OEMs) as well as export and consequently. During the year under review. prevailing interest rates and financing options. Further. The demand for Viscose Filament Yarn (VFY) is expected to be moderate in the short to medium term in view of the high competition with other fibres and increased imports in the country. this trend is gradually changing and it is expected that radialisation levels will go up to the extent of 20-25% in the next 2 years. However.ANNUAL REPORT & ACCOUNTS 2009-10 ANNEXURE“B” REPORT ON MANAGEMENT DISCUSSION AND ANALYSIS A. offer the consumer a well diversified product mix. overall GDP growth. Globally. These companies have a presence in all the major segments of the Tyre Industry – the replacement market. Cement Industry has achieved capacity utilization of 85% as against 88% in preceding year. Industry has taken up large scale capacity expansion during the last three years and further substantial capacity addition is planned during next two years. the Transparent Paper (TP) manufacturing is not viable due to high cost of inputs. no comments are made under the heads “Opportunities & Threats. However. As a result. the growth of the entire Tyre Industry depends on primary factors like agricultural growth. RAYON & TRANSPARENT PAPER There is no growth in the production capacities in the country. commercial vehicle tyres are radialized to the extent of 70% as compared to India where the radialisation levels in this segment until last year was only 10%.69 million Ton. the situation improved in the second half due to increase in prices of Sulphur and Sulphuric Acid in International Market. The Indian Cement Industry had a growth of 12% in the year under review as compared to 8% in previous year in spite of the global financial melt down affecting the entire world economy including India. Capacity utilization in Sulphuric Acid Industry suffered in the first half due to import of the product at throwaway prices.” HEAVY CHEMICALS The capacity utilization of Indian Caustic Soda Industry declined to around 67% during the year due to demand recession and huge import at dumping price. The cement production and consumption in India has recorded growth of 12% and 13% respectively over preceding year but the cement production and consumption in Southern Region. As the section is under Suspension of Work since 2nd May 2008. Looking to erratic demand of both the products.

HEAVY CHEMICALS Ongoing capacity addition and Greenfield projects in Aluminium sector in Eastern India will improve demand for Caustic Soda in the coming years. Cement Industry’s fuel cost is increasing due to purchase of coal from open market. The volatility in raw material prices and imports from China. as against the world average of 396 Kg. Cement Industry is heavily dependent on coal for its fuel requirement. D. The TP segment is affected by slowdown in demand from ‘Fireworks’ Industry.Creating world class road infrastructure for laying highways. which resulted in an opportunity to maintain the inventory. The Tyre industry will continue to play an important role in this dynamic and evolving situation. large infrastructure spending and positive market sentiment. which is expected to be sustained and is likely to result in better realization for the products. C. considering major emphasis of the Government on infrastructure development and boost to housing sector through measures like easy finance. Future looks bright due to various economic fillips by the government. remains the biggest threat. construction of expressways and national highways present a range of opportunities for the Tyre Industry. there is enormous opportunity for the growth of Cement Industry. the per capita cement consumption is only 156 Kg. Therefore. however. However. RAYON & TRANSPARENT PAPER The sales outlook of VFY appears positive owing to signs of revival in consumer off-take. Lower production cost of larger capacity Caustic Soda Plants in Eastern India may affect competitiveness of the Unit. 32 . E-auction or import of coal. However. TYRE The national thrust on road infrastructure. Any unexpected slow down in the economic activity or deferment of large infrastructure projects will aggravate the situation and affect margin adversely. provision of tax incentives etc. road to rural connectivity. large capacity additions may create surplus capacity in the short term. Heavy augmentation in capacities by 70-80 million ton in next two to three years coupled with non-availability of good quality of coal and inadequate wagons for transportation are the main threats. urban development and projects for upliftment of rural economy etc. Emphasis on making India an Auto Centre for small cars also augurs well for the Industry. Any increase in selling price due to increase in costs of inputs is threatened by diversion to cheaper alternatives. are some of the major thrust areas of Government and to achieve these objectives. RISKS AND CONCERNS CEMENT Although cement demand is expected to grow with economic growth. The volatility in raw material prices is the biggest threat. TYRE Fortune of Tyre Industry is linked to the automobile & transportation sectors. As a result. Government has been increasing substantially its budget allocation in the last two years. RAYON & TRANSPARENT PAPER The curtailed production of VFY due to suspension of operations by few competitors created supply gap. This country has huge potential for cement consumption growth. OUTLOOK CEMENT Even though. regular imports and stiff Chinese competition in International Market are the biggest threats to the VFY Industry. The Government should consider to provide some incentives to encourage bio-degradability and eco-friendly attributes of this product. mass housing. Creation of road infrastructure has given some fillip to surface transportation.. India is the second largest cement producer in the world. focus will continue to be on increasing share of value added yarn and improving yarn quality. HEAVY CHEMICALS Improvement in demand for joint products – Chlorine. Realisations of TP are expected to be under pressure due to cheap imports and substitutes. While cement capacity is increasing continuously whereas the allotment of coal against linkages is decreasing. Hydrochloric Acid and Hydrogen Gas was witnessed during the second half of the year under review.

estimates. coal etc. CAUTION STATEMENT Statements in this report on Management Discussion and Analysis describing the Company’s objectives. which are reflected in the improved quality and efficiency. 28th April.544 persons on its rolls as on 31. P. Industrial relations have been cordial during the year under review except Spun Pipes Section. The emphasis on internal control prevails across functions and processes. CHOKSEY G. recorded and reported correctly. marketing and the like. Important factors that could make a difference to the Company’s operations include global and domestic demand-supply conditions. The review includes overseeing adherence to management policies. MATERIAL DEVELOPMENT IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS Measures for safety of employees. MALLIK MANJUSHREE KHAITAN Chairman Directors Kolkata. G. BAJORIA P. B. A strong system of internal audit supported by Internal and External Auditors and effective & comprehensive reviews by the Audit Committee have strengthened the internal control within the organization. Thus. covering the entire gamut of activities including finance. The Management continuously reviews the internal control systems and procedures to obtain comfort regarding orderly and efficient conduct of business. These systems also ensure that all transactions are authorized. projections. E. expectations or predictions may be forward looking statements within the meaning of applicable laws or regulations. short supply of Railway Wagons is also a major bottleneck. K.3. the future turns to be something quite different. if. MAHESHWARI B. this discussion and analysis should be perused. G. the Company should and need not be held responsible.ANNUAL REPORT & ACCOUNTS 2009-10 Similarly. The Company as a whole had 13. where the factory continues to be under suspension of work since 2nd May.K. finished goods prices. Subject to this management disclaimer. Actual results could. Alternate Road Transport. changes in Government regulations and tax structure. Regular internal audits and checks are carried out to provide assurance that adequate systems are in place and that the responsibilities at various levels are discharged effectively. BIRLA K. however. sales and distribution. to safeguard all assets against loss from unauthorized use or disposition. H. welfare and development continue to get high priority at all levels. which is not unlikely. F. HEAVY CHEMICALS Steep increase in power cost caused by rise in price of coal is a major concern as power constitutes around 65% of cost of production in Caustic Soda Industry. These statements are based on certain assumptions and reasonable expectation of future events. supply chain. 2008. K. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY The Company has proper and adequate systems of internal control. training. safeguarding the assets of the Company as well as ensuring the preparation of timely and accurate financial information. economic developments within India and the countries with which the Company has business contacts and other factors such as litigation and industrial relations. S. B. PANDE AMITABHA GHOSH P. only add to the inward and outward transport costs.PATODIA Secretary Whole-time Director DEEPAK TANDON 33 . K. raw materials cost & availability. TYRE The volatility in all major raw material prices and the inverted duty structure between tyres and natural rubber puts further pressure on the Industry’s revenue and profitability. 2010. RAYON & TRANSPARENT PAPER The revenue is likely to be impacted due to increased competition and rising input costs in both VFY & TP segments. affecting outward movement of cement and inward movement of raw materials like gypsum. differ materially from those expressed or implied. Exports are likely to be affected due to subdued demand.2010.

Maintenance and TPH. (Mech.. 10. R.) 15. in Marketing & Sales Management B.413 50 B. President (Marketing) (Tyres Sections) Shri C.).29.of years) of employment Sl. P.12. 1 Shri A. PGDBM B.Jt.802 67 B. B. 1975 for the year ended 31. P.49.55. Officer .06. S. Jain Jt.B.Age Qualification(s) Date of Experience neration (Rs.) 3 38.24.1984 26 Last employment held Name of the Company Designation Gross remu. Name No.07.) (Years) Commencement (No.03.P. Designation Nature of Duties In-charge of sales & marketing 24. Bohra Sr. (Elec. F.Com.Vice President (Sales & Marketing) (Kesoram Cement Section) Shri A.604 51 In-charge of Domestic Sales & Marketing In-charge of Operations.2007 27 Century Pulp & Paper General Manager 5 45 Mangalam Cement Ltd. Management and overall Incharge of Corporate Office & both Sections of Birla Tyres. Sections) In-charge of Commercial Activities & Administration 37.Vice President (Marketing) (Vasavadatta Cement Section) Shri J. K.01.51.A.230 57 4 92.1983 27 - President 6 In-charge of sales & marketing 28.C. 22. K.D.(Hons).E.00.A.246 54 Century Cement Chief Resd.34 Annexure “C” Particulars of employees under section 217(2A) of the Companies Act.03.C. Com. (Elec.564 - 7 Sr.. President (Rayon & T.06.).078 61 B. Uppal Jt. Bindra President (Vasavadatta Cement Section) Shri I.Com (Hons. 1956 read with the Companies (Particulars of Employees) Rules. LL. President (Accounts. 26. President (Engg.2010 a) Employed throughout the financial year under review and were in receipt of remuneration for the financial year in aggregate of not less than Rs. Finance & Taxation). Batliboi & Co.1973 36 S.2001 29 02.) 53 B.Sc.Sc. 17. & PP) (Vasavadatta Cement Section) Shri Deepak Tandon Director. of India Senior Engr. Purohit Sr.1991 Unit Head 42.54.96. K.02. Executive 36 Cement Corpn.85.G.(Engg. F.000/-. Sr. Ostwal 2 31. Corporate Office and Birla Tyres (both Balasore & Haridwar Sections) Shri D.1986 01.A.

Designation Officer Management and overall In-charge.Com..1996 23 Modern Syntex Ltd. R.A. 43. 30.. Engg.10. A. PG Diploma in Ind.Com. S. Name No.W.856 61 B.A.(Mech.43..1971 39 32. Rao In-charge of Domestic Sales & Marketing (in North India) In-charge of Commercial Activities & Administration.2007 36 Dangote Group of Industries. Lagos. In-charge of Technical matters.657 72 B.656 51 M.02.56. Rao Jt.E. 24. 17. Gandhi Vice President (PQC) (Vasavadatta Cement Section) 15 Shri R.) (Years) Commencement (No. President (Vasavadatta Cement Section) 33. Jain President - - Manager of the Company & Sr.1993 35 C. K.1985 40 Straw Products Limited ANNUAL REPORT & ACCOUNTS V. 49 B.96. 26.C.C.94. P.1997 48 Suvarna Cement 72.E. President (Tech) (Rayon & T.E.. Nigeria B.A. Engg.Com. Vice President (Commercial) (Vasavadatta Cement Section) 11 Shri P.576 65 34.C. B. 06. F.04. I.Age Qualification(s) Date of Experience neration (Rs. Administration & Exports In-charge of Technical matters 01.A.) B. 15.I.I.) & D. Mehta Vice President (Sales) (Tyres Sections) Apollo Tyres Ltd.) 13 Shri P. L. Sharma Sr. Ltd.Sc.T.77.972 62 B. C.P. 27.37. President (Cement Sections) 9 Shri K.218 71 B.04.73.A. Sections) 2009-10 35 .60.Sl. Divisional Head Accounts Officer General Manager Manager (Process) 12 Shri P.I. 19.784 67 B. In-charge of Production & Quality Control 24. President (Technical) (Kesoram Cement Section) 10 Shri O.01.03.007 60 B.Sc. N.(Ch. K.P. In-charge of Projects & Technical matters.04. Shah Jt. Designation Nature of Duties Gross remu. E. In-charge of Purchase. President (Commercial) (Tyres Sections) In-charge of Commercial.46.of years) of employment Last employment held 8 Shri K. Sharma Jt.2008 24 28.212 Jt.05. A. President (Project) (Vasavadatta Cement Section) 14 Shri R. Tripathy Jt. 19. (Elect.(Hons) Electrical.1967 48 Laxmi Finance Corporation 10.1966 46 Name of the Company Singhi & Co. Banking Manager (MS) 16 Shri S. C.C.07.

82. AMIE 01.B.Com. 01.) Commercial (Kesoram Activities and Cement Section) Administration b) Employed for part of the year and were in receipt of remuneration at the rate of not less than Rs. F.Age Qualification(s) Date of Experience No.A.Age Qualification(s) Date of Experience neration (Rs. Remuneration received includes salary and other allowances. premium for accident policy. electricity charges paid. Company’s contribution to provident fund.36 Designation Name of the Company Designation Nature of Duties Gross remu.A. 17 Shri S.P. N. Name No. L. & Heavy Chemicals Sections) Director & Secretary 78.00.255 73 M. Jt. Chamaria Sr.). & Mills & Inds.Com. K. T. Other terms and conditions of employment include the transfer of duties in any section of the Company. & Admn.L. All appointments are contractual.C. 1961 and the rules made thereunder.of years) of employment Last employment held Last employment held Management and overall In-charge.1955 Management & Company Secretary Management and overall In-charge 54 - Sl.000/. President In-charge of HRD 26.1963 47 (Accounts & HRD) & Accounts Sahityaratna (Corporate Office) Corporate Office In-charge of 40.019 78 B.10. President (Fin.Com.01.Ltd Heavy Chemicals Sections) Notes: 1.19.C.. . gratuity fund and superannuation fund.78.S. 3. 2.1971 39 18 Shri S.E. bonus/ex-gratia.Com. club fees and the monetary value of perquisites with regard to accommodation & furniture calculated in accordance with the provisions of Income Tax Act. medical reimbursements.358 65 B. Tapadia Jt. Palod 2 Shri S.) (Years) Commencement (No. 14.per month Sl.698 63 B.P. Duties neration (Rs. 63. F.) (Years) Commencement (No. President (Rayon. 4.2009 50 Eastern Spinning President (Rayon. (Mech. V.01.C. 2.437 67 M. Chandak President 14.. rent paid.of years) of employment 1 Shri J. (Tech. leave travel concession.07. There is no employee in the Company within the meaning of sub-clause (iii) of clause (a) of sub-section (2A) of section 217of the Companies Act. Name Designation Nature of Gross remu. LL.. 20.11. D. 5.) Sr.45. encashment of leave. None of the above employees is a relative of any director of the Company.10. Parik 3 Shri V. T. 01. R. F.1988 43 Name of Designation the Company Hindusthan ViceHeavy Chemicals President Ltd. 1956.B..

ANNUAL REPORT & ACCOUNTS

2009-10

Annexure ‘D’
INFORMATION AS REQUIRED UNDER SECTION 217(1)(e) READ WITH COMPANIES (DISCLOSURE OF PARTICULARS IN RESPECT OF BOARD OF DIRECTORS) RULES, 1988 I. CONSERVATION OF ENERGY: (a) Energy conservation measures taken: Installed Super Heater for waste heat recovery, steam heating in dryer in place of kerosene heating and vapour absorption Machine to create chilled water from waste heat.(Rayon & T.P. Sections). Installed gamma matrix, almag refractory, HR Separator for Cement Mill-2 and VVVF dry at Power Plant 2. Modified sepol separator feeding scrapper plate in Cement Mill-3. Increased Raw Mill in-let duct size & converted the sharp edges to smooth curve. Reduced grinding media filling in the Mill. Eliminated Screw Conveyor of 22 KW from Cement Mill-3 circuit. Connected HR Separator of Cement Mill-3 outlet duct venting to Bag House Fan. Regulated the reject material of polycom back to circuit. Interlocked reverse Air Bag House Fan start with bag house DP, Feed HR grit materials to Mill in-let and replaced gear box of Kiln-2. (Vasavadatta Cement Section). Installed new Lime Stone secondary crusher of 400 TPH capacity for additional output per day. Modified operating conditions in Kiln for easy grinding and reduced cyclone pressure drop in Coal Mill-1. (Kesoram Cement Section). Installed Variable Frequency Drives in various boiler feeds and utility water pumps, ID fans, high sensible air conditioners, VAM in place of compressor chiller unit, centrifugal compressors in place of reciprocating compressors. DM water heated through steam recovery from Tyre Curing presses. LP air used in place of MP air in boiler ash handling system. (Tyre Sections). Modified / incorporated Variable Frequency Drives on cooling tower’s water feed pumps and returned water pumps of rectifier transformers cooling circuit. Installed energy efficient lights in place of HPMV lamps. Modified capacitor bank and retained TOD meter in grid supply. (Hindusthan Heavy Chemicals Section). (b) Additional investment proposals, if any, being implemented for reduction of consumption of energy: Installation of mist cooling tower & vacuum ejectors to conserve water, application of Variable Frequency Drives in cooling tower and mist condensers for saving steam.(Rayon & T.P. Sections). Installation of Roller Press and HR separator for Line-I Cement Mill, rotoscale for coal dosing for Line-II & Kiln feed for Line-I, curing tanks for temperature control, XRF and XRD for quality control and coal integration for Line-IV to Line-I to cut the shut down time.(Vasavadatta Cement Section). Installation of N-2000 O-sepa in Cement Mill-3. Replacement of existing Kiln-II cooler with latest energy efficient cooler. Reduction of pressure drop in Kiln-II pre-heater and Kiln-I C-Line no.II cyclone, fugitive dust emission in Cement Mill and cool crusher and upgradation of blending silos for steady operation of Kilns. (Kesoram Cement Section). Installation of Variable Frequency Drives in various utility pumps, auto on/off with line running feed back in dual extruders for chilled water supply. Increase in suction line of all utility pumps, overhead line in close loop for chilled water return from plant equipment, hot water recovery from curing presses. Condensate to be recovered from curing presses of Motor Cycle Plant and Tube Plant.(Tyre Sections). (c) Impact of measures at (a) & (b) above for reduction of energy consumption and consequent impact on the cost of production of goods : Reduction in consumption of electricity and coal consumption per unit of production were witnessed in general having favourable impact on the cost of production. (d) Total energy consumption and energy consumption per unit of production as per Form “A” of the Annexure in respect of industries specified in the Schedule thereto.

FORM ‘A’
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY (A) Power and Fuel Consumption (1) Electricity (a) Purchased Units (in lacs) Total Amount (Rs. in lacs) Rate/Unit (Rs.) 1,493.53 6,291.68 4.21 1,401.36 5,614.60 4.01 Current Year Previous Year

37

Current Year Own Generation (i) Through Diesel Generator Units (in lacs) Units per Ltr. of diesel oil Cost/Unit (Rs.) (ii) Through Steam Turbine/ Generator Units (in lacs) Unit per Kg. of Coal Cost/Unit (Rs.) Coal (Grade B, C, D, E, F steam/ slack, ROM, Lignite and Grade-A steam Coal used in Boiler Houses, calcining of raw meals, firing of Kiln and gas plant) Quantity (MT) Total Cost (Rs. in lacs) Average Rate/MT (Rs.) Furnace Oil Quantity (K.Ltrs.) Total Cost (Rs. in lacs) Average Rate/Ltr. (Rs.) Others i) HSD Oil Quantity (K.Ltrs.) Total Cost (Rs. in lacs) Rate/Ltr. (Rs.) ii) Gas Quantity (MT) Total Cost (Rs. in lacs) Rate/Ltr. (Rs.) iii) Diesel Oil Quantity (K.Ltrs.) Total Cost (Rs. in lacs) Rate/Ltr. (Rs.) (b)

Previous Year

36.77 3.13 9.41 7,304.93 1.01 2.64

29.54 2.93 10.43 5,649.52 0.94 2.89

(2)

18,43,175 55,527.46 3,012.60 396.85 120.76 30.43

14,80,763 47,646.68 3,217.71 4,637.79 1,507.94 32.51

(3)

(4)

359.31 112.94 31.43 2,090.84 900.16 43.05 1,151.20 335.60 29.15

309.61 97.55 31.51 2,251.34 690.79 30.68

(B) Consumption per Unit of Production 1. Electricity (kwh) Vis. Filament Rayon Yarn Transparent Paper (Cellulose Film) Sulphuric Acid Caustic Soda Purified Hydrogen Gas Sodium Hypochloride Carbon-di-Sulphide Sodium Sulphate Sodium Sulphide Cement Tyres, Tubes & Flaps

Production Unit M.T. M.T. M.T. M.T. M3 M.T. M.T. M.T. M.T. M.T. M.T.

Standards if any -

Current Year

Previous Year

4,168 2,155 39 3,747 0.40 38 1,065 91 285 77 1,096

4,198 2,255 41 3,760 0.39 37 1,111 92 285 78 1,112

(b) (b) (b) (c) (c) (c) (b) (c) (b) (a)

38

ANNUAL REPORT & ACCOUNTS
Production Unit 2. Standards if any Current Year

2009-10
3.77 6.25 0.36 0.36 0.15 1.31 (c) (d) (b) (c) (a)

Previous Year

Coal Vis. Filament Rayon Yarn M.T. Transparent Paper (Cellulose Film) M.T. Carbon-di-Sulphide M.T. Sodium Sulphate M.T. Cement M.T. M.T. Tyres, Tubes & Flaps 3. Furnace Oil K.L. Tyre, Tubes & Flaps 4. Others i) HSD Oil Cement L. ii) Gas Tyres, Tubes & Flaps M.T. Reasons of variation: (a) Energy conservation measures taken. (b) Better production. (c) Difference considered normal. (d) Inferior quality of coal. (e) Lesser use. N.B. : 1. Form ‘A’ not applicable to Spun Pipes Section. 2. Previous year’s figures have been re-arranged where necessary. II. TECHNOLOGY ABSORPTION : Efforts made in technology absorption as per Form ‘B’ of the Annexure.

3.75 6.69 0.33 0.35 0.15 1.09 0.004

0.02 (e)

-

0.074 0.0114

0.078 (e) -

FORM ‘B’
1. Research & Development (R&D) (a) Specific areas in which R&D carried out Use of flash Deaerator at different temperatures to remove air from Viscose and setting proper angle in traverse mechanism of coning machine. (Rayon & T. P. Sections). R&D cell continued to work for improving the quality and productivity with special attention on energy conservation. (Cement Sections). Development of motor cycle tyre, truck radial & OTR tyres.(Tyre Sections). Elimination of top edged broken filament in cones and less air in Viscose resulting in lesser broken filament.(Rayon and T.P. Sections). Improvement in output and quality.(Cement Sections). New range of products developed for both domestic and export markets.(Tyre Sections). Study of process chemicals in after-treatment and plan to use different chemicals to reduce broken filament in the yarn. (Rayon and T.P. Sections). Installation of Waste Heat recovery system, conversion of existing ESP to Reverse Air Bag House for line I & II and utilizing alternate fuels for Kiln. (Cement Sections). Introduction of variety in the range of products to cope with the ever changing market requirement. (Tyre Sections).

(b) Benefits derived as a result of above R&D

(c) Future Plan of Action

39

In case of imported technology (imported during last 5 years reckoned from the beginning of the financial year).(Tyre Sections). in brief.NIL . initiatives taken to increase exports. Increased exports of VFY by about 17% by exploring new markets of Brazil and Argentina. G.K. following information may be furnished : (i) Technology imported (ii) Year of import (iii) Has technology been fully absorbed ? Not Applicable III. adaptation and innovation No separate allocation in the company.P. Technology Absorption.69 lacs to the said authority. Middle East & Philippines etc. Vietnam. Installed automatic Sodium Sulphate Bagging System. was lower by 4% due to cheaper substitute available from other Countries.has been fully adapted to. import substitution etc.P.26 lacs (excluding Rs. However.29 lacs being interest).Pirelli & Co. K. Pakistan.(Rayon and T.P.67 lacs B. during the year under reference and efforts are being made to explore new markets. S. Efforts are being made for enhancement of productivity and energy conservation. Sections). PANDE AMITABHA GHOSH P. pyramid plate and slow speed dissolving process of Viscose.75 per tonne of cement despatched to the Development Commissioner for Cement Industry. (b) Benefits derived as a result of the above efforts e. FOREIGN EXCHANGE EARNINGS & OUTGO : 1.3. Rs 78.503. the company paid a cess @ Re.P. MALLIK MANJUSHREE KHAITAN 2.B. Plan is to increase export by further exploring new markets. Executives/ Employees are being regularly deputed for attending seminars and workshops on Research & Development studies to keep them abreast of the latest technical developments. Government of India. K. Rs 37. CHOKSEY G. (Rayon & T. Activities relating to exports.NIL . (Cement Sections). realisation basis) Chairman Directors Kolkata. 2010.(Rayon and T. K. Adaptation and Innovation (a) Efforts. MAHESHWARI B. Sections). B. Reduced Coal Mill cyclone pressure drop and installed secondary crusher at Kesoram Cement Section.694. 28th April. cost reduction. Export of T. product development.0. Optimum capacity utilization with reduced power consumption. who in turn assists financially to National Council of Cement & Building Materials to carry out Research & Development Programmes in the interest of the Cement Industry.g. Technology imported from M/s.(d) Expenditure on R&D (i) Capital (ii) Recurring (iii) Total . made towards technology absorption. 3.441.O.(Cement Sections). development of new export markets for products and services and export plans. (Tyre Sections). Total Foreign Exchange used and earned Used Earned (on F. BIRLA K. Exports were made to 26 countries including Bangladesh. P. BAJORIA P.PATODIA Secretary Whole-time Director DEEPAK TANDON 40 .41. Improvement in viscose quality & saving of man power. During the year 2009-10 the Company paid Rs.NIL (iv) Total R&D expenditure as a percentage of total turnover 2. Sections). product improvement.

83 135.10 45.05 Figures for the previous year(s) have been regrouped/rearranged where considered necessary.78 589.04 811.50 1. Deferred Tax Liabilities (Net) 1.753.74 370.99 1.863.46 3.20 61.582.03 330.74 1.97 1.34 3.37 207. Investments 3.22 107. (i) DUES TO BE PAID BY THE COMPANY 1.89 398. Provisions 5.17 273.991.18 981.65 363.93 1.19 28.27 605.00 643. Net Fixed Assets Gross Fixed Assets Less: Total Depreciation 4.28 2.44 4.082.42 913.11 31. ASSETS OWNED BY THE COMPANY 1.494.105.83 442.99 161.718.24 45.21 3.69 654.39 142.347.87 376.19 966.84 47.60 226.22 29.212.02 255.74 936.536.70 112. Inventories 4.99 328.284.88 245.17 1.530.15 2.06 380.37 170.23 76.ANNUAL REPORT & ACCOUNTS Summarised Balance Sheet for the Last Five Years 2009-10 2005-06 (Rupees in Crore) 2009-10 2008-09 2007-08 2006-07 A.669.95 245.72 1. Other Liabilities 4. Secured Loans 2.57 971.65 2.07 491.662.00 (ii) THEREFORE. COMPANY’S NET WORTH REPRESENTED BY 1.31 743.19 542.43 45.002.01 2.53 680.22 2.74 1.41 1.827.06 243.77 1.382.75 303. Sundry Debtors 5.20 229.39 126.25 1.20 1.74 608.423.36 1.92 1.20 528.972.330.92 45. Reserves & Surplus 45.477.19 184. All other Current Assets Total Assets 51.05 B. 41 . Ordinary Share Capital 2.17 292.926.05 5. Unsecured Loans and Deposits 3.844.31 416.43 916.62 14.12 721.74 413.540.992.67 2.

78 279.80 36.04 173.10 ----20.57 34. Salary.926.09 400.07 2.90 40.03 17.27 165.96 520. Provision for Taxation 3.25 180.00 202.741.96 4.64 554.29 450.26 225.40 44. Transfer to Debenture Redemption Reserve 6.87 45.89 400.25 12.99 520.09 51.00 12.46 45.21 409.895.664.29 1.07 5.85 3.91 2.32 36.74 4.30 725.447.34 115.37 ----29.576. Depreciation (Net) 2.00 --1.45 648.51 132. Wages and other Amenities 4.30 641.020.62 473.63 128.00 82.92 87.78 -25.51 APPROPRIATIONS/TRANSFERS 1.19 146.22 267.07 82.00 2.56 286.176.04 17. Other Income 3.00 313. Provision for Deferred Tax 4.64 275.88 3.24 454.63 119.67 2.876.10 2.99 89.98 1.Summarised Profit & Loss Account for the Last Five Years (Rupees in Crore) 2009-10 2008-09 2007-08 2006-07 2005-06 RECEIPTS 1.06 288.79 264.72 103. Manufacturing and other Miscellaneous Expenses 7.00 -16.877. Interim Dividend (with Distribution Tax thereon) 7.93 1.52 113.292.52 520.440.82 43.91 255.92 641. Proposed Dividend (with Distribution Tax thereon) 8.80 641.42 153. Reserves 9.00 25.34 24.60 307.516.146.65 5.86 30.82 400.29 299.79 1.00 --1.80 58.09 735. 42 .00 25. Raw Materials and other purchases 2.07 67.81 1.43 40. Sales Expenses 6.11 2.62 2.31 22.763. Sales (including Excise Duty) 2.23 ----15.29 648.95 3.13 101.49 372.98 112.45 15.97 649.16 132. Excise Duty 5.47 641.29 -0. Surplus/(Deficit) 172.99 1.29 111. Stores and Power 3.51 Figures for the previous year(s) have been regrouped/rearranged where considered necessary. Interest (Net) Total Expenses GROSS PROFIT 5.06 132. Provision for Fringe Benefit Tax 5. Increase/(Decrease) in Stock Total Receipts EXPENDITURES 1.43 52.312.80 936.00 214.31 75.518.71 648.68 29.405.00 4.

there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material. which we have signed under reference to this report. issued by the Central Government of India in terms of Section 227 (4A) of ‘The Companies Act. 2004. in our opinion. on the basis of our examination of the books and records of the Company and according to the information and explanations given to us.23. (c) On the basis of our examination of the inventory records. evidence supporting the amounts and disclosures in the financial statements. the frequency of physical verification is reasonable. As in earlier years.2 (a) above. which in our opinion. 99.2 (a) The inventories [excluding stocks with third parties and pertaining to the aforesaid Spun Pipes & Foundries Unit (year-end book value Rs. 2008 having year-end book value of Rs. the procedures of physical verification of inventories followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business. secured or unsecured.4. firms or other parties covered in the register maintained under Section 301 of the Act. 3.767)] have been physically verified by the Management during the year. In our opinion. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.4 43 . we have neither come across nor have we been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system. An audit includes examining. Our responsibility is to express an opinion on these financial statements based on our audit. these have substantially been confirmed by them. In respect of inventory lying with third parties. (c) In our opinion and according to the information and explanations given to us. as well as evaluating the overall financial statement presentation.1 (a) The Company is maintaining proper records showing full particulars (other than details regarding revaluations made during 1982-83) including quantitative details and situation of its fixed assets. We believe that our audit provides a reasonable basis for our opinion. Further. a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies between the book records and the physical inventory have been noticed. Pursuant to such programmes [without any coverage for items of Company’s Spun Pipes & Foundries Unit (which is under suspension of work effective 2nd May. The Company has not provided any service during the year. as amended by the Companies (Auditor’s Report) (Amendment) Order.039)]. In our opinion and according to the information and explanations given to us. 2009-10 We have audited the attached Balance Sheet of Kesoram Industries Limited (the “Company”) as at 31st March. 2003.3 3.09. As required by the Companies (Auditor’s Report) Order. on a test basis. (b) In our opinion. to / from companies. The Company has neither granted nor taken during the year any loans. 1956’ of India (the ‘Act’) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us.93. An audit also includes assessing the accounting principles used and significant estimates made by Management. fixed assets and for the sale of goods. the related Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. 3. is reasonable having regard to the size of the Company and the nature of its assets. work-in-process has been determined by the Management on the basis of physical verification as mentioned in paragraph 3. 2010. (b) The fixed assets of the Company are physically verified by the Management according to phased programmes designed to cover all the items over a period of three years. 3.ANNUAL REPORT & ACCOUNTS AUDITORS’ REPORT TO THE MEMBERS OF KESORAM INDUSTRIES LIMITED 1. the Company is maintaining proper records of inventories other than work-in-process. a substantial part of fixed assets has not been disposed off by the Company during the year. These financial statements are the responsibility of the Company’s Management. we further report that : 2. 3. We conducted our audit in accordance with the auditing standards generally accepted in India.

50.99. According to the information and explanations given to us. have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time other than transactions of special nature for which competitive quotations are not available. 2001-02. the Company has complied with the provisions of Sections 58A and 58AA or any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules. 3. 2010 which have not been deposited on account of a dispute (there being no such cases with regard to wealth tax.154 Period to which the amount relates 2000-01 2000-01 to 2002-03 2001-02. service tax. the Company is generally regular in depositing the undisputed statutory dues including provident fund.6 In our opinion and according to the information and explanations given to us. 2010).145 1. the Company has an internal audit system commensurate with its size and nature of business. no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on the Company in respect of the aforesaid deposits. 2010]. the transactions made in pursuance of such contracts or arrangements and exceeding the value of rupees five lakhs in respect of any party during the year. investor education and protection fund [other than arrears of Rs. 3.23. the prescribed accounts and records have been made and maintained.85. custom duty. 2003-04.7 In our opinion.12. custom duty and cess). 2004-05.465 West Bengal Sales Tax Act.317 3.981 2.892 outstanding for a period of more than six months as on 31st March. service tax. Joint Commissioner Commissioner Additional Commissioner Deputy Commissioner Assistant Commissioner West Bengal Commercial Taxes Appellate and Revisional Board 44 .95.26. Tyre. employees’ state insurance.8 We have broadly reviewed the books of account maintained by the Company in respect of products at its Cement.62. however.761 42. excise duty.867 29. pursuant to the Rules made by the Central Government of India.99.118 28. wealth tax. 56. sales-tax. wealth tax. 1994 Sales Tax 2. 1961 Central Sales Tax Act. 2004-05 1991-92 to 2002-03 2006-07 2005-06.62.124 4.65.47. excise duty and cess as at 31st March.307 (pertaining to cases under litigation) outstanding for a period of more than six months as on 31st March.3. 2003-04.841 4. 3. Rayon and Chemicals Units where. 1975 with regard to the deposits accepted from the public. 2004-05 Forum where dispute is pending Commissioner Supreme Court Orissa High Court Karnataka High Court West Bengal Commercial Taxes Appellate and Revisional Board Tribunal Sr.23.42.9 (a) According to the information and explanations given to us and the records of the Company examined by us.37. 1956 Nature of the dues Income Tax Sales Tax Amount Rs. sales tax.25.92. 2004-05 1987-88. made a detailed examination of the records with a view to determine whether they are accurate or complete. custom duty. the particulars of dues of income-tax.07.48. 2003-04. the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section. 2006-07 2003-04 1999-00. income-tax (other than arrears of Rs. 19. (b) In our opinion and according to the information and explanations given to us. are as follows – Name of the Statute Income Tax Act. 2003-04 to 2005-06 1991-92 to 2001-02. We have not. in our opinion. 2007-08 1999-00 1997-98.5 (a) In our opinion and according to the information and explanations given to us. the maintenance of cost records has been prescribed under Section 209(1)(d) of the Act and are of the opinion that prima facie.30.000 16. 3. (b) According to the information and explanations given to us and the records of the Company examined by us.082 6. cess and other material statutory dues as applicable with the appropriate authorities.

3. 3.07.12 The Company has not granted any loans and advances on the basis of security by way of pledge of shares.86.64. 1994-95 2003-04 to 2007-08 1986-87 to 1989-90. 1957 Madhya Pradesh Commercial Tax Act.138 3. 1994 Central Excise Act.252 18. has been temporarily used for working capital purposes / repayment of certain short term borrowings pending eventual utilization for specific purposes.13. 2008-09 1999-00 1999-00 1999-00 2001-02 2000-01 2005-06. 1944 Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Service Tax Excise Duty 41.934 25.696 8. 3. debentures and other investments.392 1.15 In our opinion.43. 1962 Tamil Nadu General Sales Tax Act. 2001-02. according to management. 2004-05.13 The provisions of any special statute applicable to chit fund/ nidhi/ mutual benefit fund/ societies are not applicable to the Company. securities.ANNUAL REPORT & ACCOUNTS Name of the Statute Nature of the dues Amount Rs. 2010 and it has not incurred any cash losses in the financial year ended on that date and in the immediately preceding financial year.64.36. 1997-98.16 In our opinion. the term loans have been applied for the purposes for which they were obtained other than term loans in the region of Rs. 3. 1999-00.66. 1994-95 to 1996-97. 3.540 Period to which the amount relates 1999-00 1995-96.90. 2006-07 2005-06 to 2007-08 1993-94. 1995-96.85. and according to the information and explanations given to us.651 6. 1948 Finance Act. Trade Tax Act.775 Additional Commissioner Deputy Commissioner Chennai High Court Tribunal Deputy Commissioner Additional Commissioner Customs Excise & Service Tax Appellate Tribunal Calcutta High Court Customs Excise & Service Tax Appellate Tribunal Commissioner 19.P. the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders as at the Balance Sheet date. 3.10 The Company has no accumulated losses as at 31st March. 1994 U.72. 1999-00.997 8. debentures and other securities.14 In our opinion.943 2. 2000-01.263 9.327 18. 5.63. the Company is not a dealer or trader in shares.70.96. 2003-04. 2001-02 to 2004-05 2009-10 Forum where dispute is pending Additional Commissioner Deputy Commissioner Delhi Sales Tax Act.83. 1959 Andhra Pradesh General Sales Tax Act. 2002-03 to 2005-06 2003-04 1979-80 to 1982-83. and according to the information and explanations given to us. 1975 Jammu & Kashmir Sales Tax Act.72.987 Deputy Commissioner Assistant Commissioner 3.11 According to the records of the Company examined by us and the information and explanations given to us. 45 .88. the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year. 100 crores (obtained towards the end of the financial year) which.232 4.55.

proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.20 The Company has not recently raised any money by public issues.19 The Company has not created any security or charge in respect of Short-term debentures aggregating Rs. none of the directors is disqualified as on 31st March. 27. in the prescribed manner. Further to our comments in paragraph 3 above. carried out in accordance with the generally accepted auditing practices in India. 1.00.365 for which shareholders’ approval is yet to be obtained. 3. For Price Waterhouse Firm Registration No. 2010. we have neither come across any instance of fraud on or by the Company. in our opinion and according to the information and explanations given to us.00. of the cash flows for the year ended on that date. (e) On the basis of the written representations received from the directors as on 31st March. The Company has created security or charge (other than mortgage on certain immovable properties of the Company) in respect of long term debentures aggregating Rs.000 issued during the year and outstanding at year end. in the case of the Profit and Loss Account. nor have we been informed of such case by the Management. noticed or reported during the year. and subject to Note 7(c) regarding Director’s remuneration of Rs. and (iii) in the case of the Cash Flow Statement. which to the best of our knowledge and belief were necessary for the purposes of our audit. (b) In our opinion. its profit for the year ended on that date. there are no funds raised on a short-term basis which have been used for long-term investment. 2010.145 Crores issued during the year and outstanding at year-end. 2010 46 .17 On the basis of an overall examination of the Balance Sheet of the Company. the information required by the Act. 13390 Place: Kolkata Date: 28th April. of the state of the affairs of the Company as at 31st March. Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. K.59. the said financial statements together with the notes thereon and attached thereto give.3. 3. and taken on record by the Board of Directors. give a true and fair view in conformity with the accounting principles generally accepted in India: (i) (ii) in the case of the Balance Sheet. The Company has not created security or charge in respect of short term debentures issued and repaid during the year.18 The Company has not made any preferential allotment of shares during the year. 2010 from being appointed as a director in terms of Section 274 (1) (g) of the Act. and according to the information and explanations given to us. 3. (c) The Balance Sheet. the Balance Sheet. the Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the accounting standards referred to in Section 211(3C) of the Act. (f) In our opinion and to the best of our information and according to the explanations given to us.21 During the course of our examination of the books and records of the Company. 4.00. 3. 301112E Chartered Accountants (S. we report that: (a) We have obtained all the information and explanations. Deb) Partner Membership No. (d) In our opinion.

ANNUAL REPORT & ACCOUNTS 2009-10 ACCOUNTS 47 .

35.12. PANDE AMITABHA GHOSH P.332 34.611 38.16.43.13.969 35.05.26.34.28.Balance Sheet as at 31st March. DEB) Whole-time Director S.13. B.383 5.550 14.962 2.19.05.15.09.666 18.85.666 10.823 52.24.16.732 21. 45. 2010.17.85.81.844 18. This is the Balance Sheet referred to in our report of even date.646 15. MALLIK MANJUSHREE KHAITAN Directors 48 .864 52. 45. Partner Membership No.04.61.06.12.84. APPLICATION OF FUNDS (1) FIXED ASSETS (a) Gross Block (b) Less: Depreciation (c) Net Block (d) Capital Work-in-Progress (2) INVESTMENTS (3) CURRENT ASSETS.PATODIA DEEPAK TANDON Secretary K.89.36.335 35.82.82.81.62.866 2.73.46.75.164 8.395 12.44.65. SOURCES OF FUNDS (1) SHAREHOLDERS’ FUNDS (a) Capital (b) Reserves and Surplus (2) LOAN FUNDS (a) Secured Loans (b) Unsecured Loans DEFERRED TAX LIABILITY (NET) [Note 6 on Schedule 17] II.00.09. BAJORIA P.277 30.63. 2010 Schedule I.37.83.98.52. CHOKSEY G.594 22.K.41.17. MAHESHWARI B.67.395 14.20.11.88.74.13.00.25.38.10.04.24.21.10.40.750 13.78. LOANS AND ADVANCES (a) Inventories (b) Sundry Debtors (c) Cash and Bank Balances (d) Other Current Assets (e) Loans and Advances Less: CURRENT LIABILITIES AND PROVISIONS (a) Current Liabilities (b) Provisions Net Current Assets Notes on the Accounts 17 Rs.59.98.36.145 80. 2009 Rs.20.94.958 12.63.31.57.006 9.69.04.334 4.05.52. K.25.82.44.50.441 61.61.13.43.88.41.56.90.637 56.40.16.26.71.17. 28th April.88.27.15.91.66.42. K.556 3.16.788 13.43.277 26.87.830 9.596 5.145 15.59. 2010 Rs.93.77.14.44.06.025 31st March.36.523 6 7 8 9 10 11 12 5.41.661 31.20.970 3.25.056 8.49.49.51.33.86.238 5.32.75.041 3 4 18.74.94. P.32.857 51.794 6.851 33. BIRLA Chairman For Price Waterhouse Firm Registration No.38. 301112 E Chartered Accountants Kolkata.93.09.94.98.36.69. K.526 1.11.99.89.14.91.800 14.64.006 1 2 The Schedules referred to above form an integral part of the Balance Sheet.69.556 5 45. 31st March.19.651 3.28.80. 13390 (S.21. G.17.876 27.65. B.395 3.K.30.12.

13.08.20.86.846 39.79.92.1.466 1.00.135 16.466 1.72.2 & 19.71.46.11.000 (16.229 4.903 2.000 1.75. MALLIK MANJUSHREE KHAITAN Directors 49 .80.77.74.74.20.518 2.34.53.06.945 1.29. BIRLA Chairman For Price Waterhouse Firm Registration No.02.53.29.93.19.46.000 3. INCOME Sales Less: Excise Duty Net Sales Other Income 50.845 74.16.72.06.85.49.900 10.21.03.52.65.32.66.62.47.750 10.11.258) 2.784 2.067 1.673 44. 2009-10 2008-2009 Rs.02. Selling and Administrative Expenses 15 Depreciation Less: Transfer from Capital Reserve.846 13 47.722 48.65.53.51.06.87.80.038 16.940 38. P.14.354 51.850) 2.438 1.K.03.30.86.878 1. B.37. DEB) Whole-time Director S.74.47. G.529 (13.80 EXPENDITURE Raw Materials and Finished Goods 14 Manufacturing.00.76. K.000 53.33.16.00.PATODIA DEEPAK TANDON Secretary K.65.91. 13390 (S.00.21.58. K.36. K.Revaluation of Fixed Assets [Note 1(b) (iv) on Schedule 17] Interest 16 PROFIT BEFORE TAXATION Provision for Current Taxation [Note 13 on Schedule 17] Provision for Deffered Tax [charge/(credit)] [Note 6 on Schedule 17] Provision for Fringe Benefit Tax [charge/(credit)] PROFIT AFTER TAXATION Transfer to Debenture Redemption Reserve (Net) [Notes 18. 18. 28th April. 2010 Schedule Rs.331 4.07.09.901 14.22.00. 2010. Partner Membership No.779 22.43.88 2009-2010 Rs.13.084 4.170 1.484 18. This is the Profit and Loss Account referred to in our report of even date.057 1.71.673 24.383 82.61.55.16. B.01.22.22.85.74.00.72.000 3.809 35.95.09.448 36.026 73.783 1.91. 42.23.289 75.34.66.74.31.66.37.12.12.05.00.52.30. PANDE AMITABHA GHOSH P.784 2.00.00.588 1.89.00.73.177 1. BAJORIA P.78.62.38.74.177 14. CHOKSEY G. MAHESHWARI B.70.91.98.44.97.K.25.626 43.ANNUAL REPORT & ACCOUNTS Profit and Loss Account for the year ended 31st March.29.00.43.86.09.20.53.78.3 on Schedule 17] PROFIT AVAILABLE FOR APPROPRIATION APPROPRIATIONS Proposed Dividend Tax on Proposed Dividend Interim Dividend Tax on Interim Dividend General Reserve Balance carried to Schedule 2 Earnings per Share (Basic and Diluted) [Note 23 on Schedule 17] Notes on the Accounts 17 The Schedules referred to above form an integral part of the Profit and Loss Account.051 45. 301112 E Chartered Accountants Kolkata.22.71.000 2.67.20.65.901 25.09.823 82.25.65.54.63.

176 1.12.000 20. 10 each ISSUED.24.060 2.00.318 Ordinary Shares of Rs.71.12.25.40.91.91.785 45.3 on Schedule 17) (c) Refer Notes 18.30.482 40.00.36.73.49.73.24. 2009 Rs. 100 each 4.3 on Schedule 17 (d) Refer Note 18. 50.00. 2010 31st March.00.00.000 66.000 4.333 11.458 50 .13.1 on Schedule 17 (e) Adjustment consequent to amalgamation (Note 2.25.13.000 shares of Rs.785 45.91. 10 each fully paid up Out of the above :shares of Rs. 2.990 (e) Balance as at 31st March 2010 Rs.458 (a) 25.00.00.74.000 Ordinary Shares of Rs.00.53.395 SCHEDULE 2 RESERVES AND SURPLUS Balance as at 31st March.74.20.000 7.26.93.60.49.00.00.00.588 11.000 45.00.67.2 and 19.990 3.00.00.00. SUBSCRIBED AND PAID-UP 4. 100 each 6.00.000 1.00. 10 each .750 Additions Rs.81.26.00.26.01.73.15.94.00.435 without payment being received in cash pursuant to a scheme of amalgamation 59.990 82. 10 each allotted as fully paid up bonus shares by way of capitalisation of Reserve 4.24.000 20.00. 3.58.33. Rs. 73.00.3 on Schedule 17) 73.60.SCHEDULE 1 CAPITAL AUTHORISED 50.00. 3.00.646 Profit and Loss Account (a) Comprising (i) Additional depreciation charge on revalued fixed assets transferred to Profit and Loss Account [Note 1(b) (iv) on Schedule 17] (ii) Adjustment relating to fixed assets withdrawn (b) Arising out of amalgamation (Note 2.801 10.000 3.060 2.00.00.81.75.43.00.75.870 73.395 16.000 4.58.04. 2009 Rs.176 25.75 per share received in cash and balance credited as bonus by way of capitalisation of Reserve Less: Allotment Money receivable 31st March.00. CAPITAL RESERVES Revaluation of Fixed Assets Development Grant/ Subsidy Amalgamation Reserve CAPITAL REDEMPTION RESERVE DEBENTURE REDEMPTION RESERVE SHARE BUY BACK RESERVE REVENUE RESERVES General Doubtful Debts & Contingencies 4.00.00.60.73.38.16.000 7.949 12.00. 10 each allotted as fully paid up 5.16.24.13.480 shares of Rs.000 (c) 24.180 16.990 (b) 1.00.20.625 2.57.00.458 30.20.00.74.00.940 40.00.000 45.44.313 14.000 1.74.625 3.33.000 Redeemable Cumulative Second Preference Shares of Rs.00.02.180 50.Rs.354 Deductions Rs.000 Redeemable Cumulative Preference Shares of Rs.000 1.16.000 2.00.84.74.32.000 (d) 25.000 66.32.

30% Redeemable Non Hypothecation/mortgage (since created) on all the present Convertible Debentures and future movable (save and except book debts) / [Note 18.345 1.000 - Hypothecation/ mortgage charge over all the immovable and movable properties (including charge to be created on properties at Uttarakhand of Company’s Tyre Unit) both present and future of all the Units of the Company ranking pari passu with the existing charges save and except assets exclusively charged to other for specific loans.97.56.000 10.00.2 on Schedule 17] immovable properties (including mortgage to be created on immovable properties at Uttarakhand of Company’s Tyre Unit) of all Units of the Company on pari passu basis with other lenders.000 .398 9.37.217 51 .ICICI Bank Limited 2. of all the Units of the Company.00. 2010 31st March.91. both present and future. 2.93.03.46. 13% Redeemable Non First charge by way of hypothecation/mortgage on all the Convertible Debentures present and future current assets (save and except book [Note 18. 1.246 2.00.State Bank of India 1. Rs.33.575 63.00.01.85.598 Interest accrued and due Carried over 8.06.00.State Bank of India 1.51.371 2.14.36.99. First pari passu charge on both present and future movable fixed assets of Cement expansion project at Vasavadatta Cement Unit by way of hypothecation and first pari passu charge of mortgage over both present and future immovable fixed assets of Vasavadatta Cement Unit of the Company Hypothecation/mortgage over all the movable/immovable assets (including mortgage on all immovable assets of all the Units of the Company and hypothecation of movable assets of the Company’s Spun Pipes & Foundries Unit to be created ) both present and future of all the Units of the Company ranking pari passu with the existing charges save and except assets exclusively charged to others for specific loans. 7.State Bank of India 1.65.000 I.ANNUAL REPORT & ACCOUNTS SCHEDULE 3 SECURED LOANS Nature of Loans Nature of Security 2009-10 31st March.57.28. Hypothecation over all movable properties and first pari passu charge on immovable properties.00. Term Loans from .00.90. II.00.25. 2009 Rs.78.86.25.53.1 on Schedule 17] debts and current assets hypothecated to banks in the ordinary course of business for working capital requirement) and movable/ immovable properties (mortgage not created on immovable properties at Uttarakhand of Company’s Tyre Unit) of all Units of the Company on pari passu basis with other lenders.000 Interest accrued and due .43.39.51.85.200 2.400 Interest accrued and due .774 - 36.00.14.

041 over all movable/immovable properties (including charge to be created on immovable properties at Uttarakhand of Company’s Tyre Unit) both present and future.000 .00.217 .SCHEDULE 3 (Contd.00.547 . of all the Units of the Company.000 . of all the Units of the Company.51.80. 6.53.00.00. both present and future.56.513 1.both present and future of the Company and first pari passu charge by way of mortgage over all immovable properties (including charge to be created on assets at Uttarakhand of Company’s Tyre Unit) both present and future. .000 assets and pari passu first hypothecation to be created on all movable fixed assets of the company. Interest accrued and due 1.84. 2009 Rs. Carried over 14.49.320 12.83. First pari passu charge to be created over the fixed assets 45.State Bank of India Hypothecation/mortgage over all the movable/immovable 1.000 movable assets.10.32.28. of all the Units of the Company.000 of the tyre division at Uttarakhand.98. Brought forward 8.329 24.09.28.000 both present and future of the Company on pari passu basis with all the term lenders of the Company.43.17.876 1. of all the Units of the Company.00. both present and future.State Bank of Hyderabad Hypothecation over all movable properties and first pari passu charge on immovable properties. of all the Units of the Company.69. both present and future.57.Standard Chartered Bank First pari passu charge by way of hypothecation over all 92.000 .64. of all the Units of the Company.193 .345 9. .State Bank of Mysore Hypothecation over all movable properties and first pari passu charge on immovable properties.HSBC Bank Ltd.00.Standard Chartered Bank First pari passu charge by way of hypothecation/mortgage 67.973 .) SECURED LOANS Nature of Loans 31st March.State Bank of Indore Hypothecation over all movable properties and first pari 16.YES Bank Ltd. First pari passu charge to be created with other lenders on 1.000 passu charge on immovable properties. of the tyre division at Uttarakhand.22.00. Interest accrued and due 2.State Bank of India First mortgage / charge to be created on all the fixed assets 1.12.16.02.98.000 92. 8.25. .01.87.00.00.36.517 48. 2010 31st March.11.40.06.52.27.00.231 Nature of Security 52 .35. both present and future.00.000 assets (including mortgage on all immovable assets of all the Units of the Company to be created ) both present and future of all the Units of the Company ranking pari passu with the existing charges save and except assets exclusively charged to others for specific loans.DBS Bank Ltd.State Bank of Bikaner & Hypothecation over all movable properties and first pari Jaipur passu charge on immovable properties.12.State Bank of India existing and future fixed assets of the Company including equitable mortgage on land and building.00. . .65.30.56.11. First pari passu charge to be created over the fixed assets 28.98. Pari passu first mortagage to be created on all immovable 96. Rs.

72.569 15.05.03.40.23.000 * 3.00. 2010 Rs. 1.27.238 4. 1.83.77.44. 2009 Rs.74.from Banks (Note 19.47.67.17.652 7. * Repayable within one year from the Balance Sheet date if put/ call option is exercised by the Company/ lender in keeping with the terms of related agreements.93. both present and future of the Company.19.Working Capital Demand Loan Hypothecation of current assets and second charge on movable and immovable fixed assets.588 19. Fixed Deposits Security deposits from Selling Agents and others Interest accrued and due Short Term Loans . From Scheduled Banks .07.00.00.89.13.000 50.60.000 1.137 2.00.794 SCHEDULE 4 UNSECURED LOANS 31st March.231 1.35.1 on Schedule 17) Other loans .00.00. Interest accrued and due III.48.90.565 93.07.00.605 14.000 * 6.1 on Schedule 17) Interest accrued and due .00.26.Foreign Currency Non Repatriable Loan .77.851 # Includes Rs.Others (Note 19.453 3.Packing Credit Loan 10.00.29.00.03.00.000 1.216 1.536 5.70.69.89.71. Rs.Others 4.46.800 17.00.48.00.45.92.00.00. 14.14.00.00.Overdraft/ Cash Credit Interest accrued and due .78.36.24.000 1. 2009 Rs.082 12.54.64.29.52.732 4.144 94.703 18.85.1.25.192 37.2 on Schedule 17) Interest accrued and due .30.00.46.20.858 3. 2009-10 31st March.000 # 46.000 Interest accrued and due .21.000 repayable within one year from the Balance Sheet date.) SECURED LOANS Nature of Loans Nature of Security Brought forward .86.479 29.00. 1.00.32.Temporary bank overdraft .841 20.65.000 pari passu first charge to be created on the fixed assets of the company.from banks (Note 19.IndusInd Bank Ltd.320 1.12.000 2.03.60.20.805 31st March.68.52.63.00.71.ANNUAL REPORT & ACCOUNTS SCHEDULE 3 (Contd.963 53 . 2010 31st March.00.

40.7.174 (a) 12.24. 2010 [Note 1(b) (i) and 1 (b) (ii) on Schedule 17] Rs.174 4.Rs.16.84.500 43.85.20. Adjustments 2010 2010 2009 during the year Rs.69.026 4.69.Rs. Rs.1.17.497).36.70.095 (a) 5.72.00.91.98.62.668 (31.14.2009 .12.265 (31.85.717 1. (ii) Rs.22.2009 .33.01.000 acquired on amalgamation (Note 2.246 (Previous Year .73.657 (31.44.35.442 37.83.080 12.238 Plant and Machinery 22.09 .666 1.12.332 34.Rs.66. Fixture & Office Equipments and Plant & Machinery respectively.85.372 8.813 80.72. SCHEDULE 5 FIXED ASSETS Rs.479) being jointly owned Building.84.65.945 11.75.40. (iii) Rs.37.523 (c) 8.82.80. (iv) Rs. Rs.68.93.32.508 59.03.894 58.3 on Schedule 17) Rs.195 As at 31st March.61.79.30.508 68.31.16.746 3.836 79.80.2009 interest .Loss .30.833 7.796) and Rs.591) being Capital Advances (iv) Net gain of Rs.500 39.636 (31.236 5.04.03.033(e) 2.96.45. 2009 GROSS BLOCK Additions/ Deletions/ Cost/ Valuation Adjustments Adjustments as at 31st March.34.046 14.33.08.497 41.051 (31.849 24.64.15. 14.164 18.03.898 (31.94.39.07.1.Rs.54.231 16.08.60.57.77.731 1.87.11.391 8.31. (ii) Expenses allocated Rs.04.873 1.59.43. (d) Includes Rs. 7.062) being cost of assets lying with third parties.06.2009 Loss . Rs.416 being book value of revalued fixed assets [Note 1(b)(ii) on Schedule 17] as below: Freehold Land Buildings Plant and Machinery .797 2.53.314 Railway Siding 8.91.Rs.05.98.02.98.66.152 9.84.11.1.110 (31.89.35.27.Rs.88.82.974 (d) .62.2009 .894 2.40.5.24.21.894 27.697 5.30.78.78.78.87.13.38.666 18.41.38.55.65.35.03.50.25.85.50.441 (a) Includes : (i) Net gain of Rs.144 6.122 4. Fixture and Office Equipments Software Acquired (intangible) 1.69.89.717 23.85.85.20. Rs.37.842 Buildings 3.54 At Cost/ Valuation as at 31st March.Unsecured Considered Good) 4.28.62.85.51.24.57.89.85.2009 .394 49.98.498 23.11.38.50.363 29.747 Livestock 6.196) being adjustment relating to foreign currency fluctuation.13.18.04.11.719 (e) .35.85. (ii) Rs.39.569 6.089 4.29.1.05.03.03.61.674 Furniture.84.164 Previous Year Capital Work-in-progress (including Capital Advances .83.830 (b) 8.40.28.65.570 61.13.16.73.898) being aggregate cost of land on lease to third parties.65.90.51.08.69.65.83.24.05.327 13.472 4.93.44.27.7.00.35.06.56.07.72.03.55.838 8.209) Technical Know-how fees amortised over a period of 5 years.2009 .67.03.127 2.48.498 Vehicles etc.70.00.209 (31.95.81.65.497 (31.360 10.44.98.311 (c) Includes : (i) Rs.04.49.14.21.894 2.70.Rs.570) being borrowing cost capitalised during the year.144 8.04.95.67.720 for which the related deed of conveyance is yet to be executed. (b) Including (i) Rs.95.46.Rs.98.22.04. Rs.62.45. 31st March.54.89.6.51.44.13. .04.512 11.17.056) being adjustment relating to foreign currency fluctuation.03.269 2.65.186 18.14.28.18.451 27.73.33.752 10.857 26.17.479 (31.22.48.081 87.89.601 26.28.21.621 10.95.38.1.89.83.284 29. 2.20.94.259 45.53.Rs.230) [Note 17 on Schedule 17] (iii) Rs. Rs.57.277 (c) 38.66.533 10. Rs.334 18.250 8. Freehold Land 68.Rs. 64. (v) Rs.34. Rs.01.34.16. 2009 DEPRECIATION NET BLOCK For the year On As at As at As at Deletions/ 31st March.230) being borrowing cost capitalised during the year.47.2.26.27.73.11.2009 .061 38.52.743 14.03.21.Rs.781 1.63.09 .04.13. Furniture.72.28.76.14.55. 31st March.068 64.2009 .85.612 4.66.97.27.25.13.83.00.03.06.52.324 70.77.071 1.08.666 (b) 9.94.03.37.06.44.416 (e) Includes Rs.59.56.584 (31.572 5.534 58.84.71.830 18.534 Leasehold Land 59.74.01.26.82.51.735 27.57.19.33.Rs.14.700 17.19.46.

61.89.000 12.285 75. .138 4.10.680 2.Equity Shares Manjushree Plantations Ltd.Equity Shares ECE Industries Ltd. .57.69.096 119 1.382 1.000 Equity Shares purchased during the year) Mangalam Cement Ltd.65.00.Ordinary Shares Calcutta Stock Exchange Association Ltd.000 12.00. .138 10 10 10 10 10 10 10 10 1 10 10 10 10 10 10 1 10 10 2 2.285 75.000 1.800 44.88.000 42.170 22. .551 1.16.57.Equity Shares * carried over 4.27.000 5. .42.96.Equity Shares Jay Shree Tea & Industries Ltd.Equity Shares Grasim Industries Ltd.455 13.61.Equity Shares Century Textiles & Industries Ltd.280 - 52.Equity Shares Century Enka Ltd.69.000 25.100 53.000 10 7.764 16.04.000 2.81.986) 28.10.94.586 1.41.80.88..89. .ANNUAL REPORT & ACCOUNTS SCHEDULE 6 INVESTMENTS Number 2009-10 Face Value Book Value Book Value of each as at as at Share 31st March.Equity Shares Coromandel Stampings & Stones Ltd.43.Equity Shares HGI Industries Ltd.356 1 6. .24.728 Equity Shares purchased during the year) Long Term .268 1.46.Equity Shares ECE Industries Ltd. .96.46.Equity Shares Vasavadatta Services Ltd.56. .Equity Shares (20..802 56.96.80.91.000 12.00.09.347 20.859 1. Rs.000 10.Equity Shares Mangalam Timber Products Ltd.859 1.62.18.57.80.19.815 10.Equity Shares Essel Mining & Industries Ltd.795 24.74.90.65.56.058 1.728 10 2.090 1 14.43.094 1.77.090 1 14.220 4..91.600 2. . .986 (22.Equity Shares Vidula Chemicals & Manufacturing Industries Ltd.29. .Shares Padmavati Investment Ltd.828 55 .Equity Shares * Aditya Birla Nuvo Ltd.000 58. .994 2.81.500 1.69.93.18.Equity Shares Kesoram Insurance Broking Services Ltd.094 1.-Equity Shares Century Textiles & Industries Ltd. 2010 31st March. Long Term .551 1.86.18.40.750 10 10 100 10 10 10 4.946 1.Equity Shares Birla Buildings Ltd. Rs. .86.600 2.Other than Trade (1) FULLY PAID SHARES At Under Cost: Aditya Birla Nuvo Ltd. .108 50.Equity Shares Hindalco Industries Ltd.000 24. 2009 Rs.00.28.Equity Shares Meghdoot Co-operative Housing Society Ltd.04.764 16.09..94.93.000 4.16.90.000 59.77.000 12. (Note 16 on Schedule 17) (22.382 1.Equity Shares Birla Buildings Ltd.93. .45.70.09.356 1 6.29.04.500 3.500 3.000 2.994 2.41.000 5.000 3.100 10.20.Trade FULLY PAID SHARES (AT COST) Gondkhari Coal Mining Ltd.69. . .20.43.500 1.93.795 24.24. .000 58.53.74.09. .Equity Shares Kesoram Textile Mills Ltd.231 18.802 56.946 1.000 1.70.53.170 2.

31.75.78.49.43.43.668.00.785 1.15.48.096 6.09. 45.Re -investment 32ISD ICICI Prudential Institutional Liquid Plan – Super Institutional Daily Div 1564 ICICI Prudential Institutional Liquid Plan – Super Institutional Daily Div Birla Sun Life Cash Plus .453 6.36.10. Rs.72.000 10 10 10 10 Cost Rs.108 1.Equity Share [Cancelled on amalgamation with the Company (Note 2 on Schedule 17)] Less : Provision for diminution in value of investments * Aggregate Book Value of Investment in Shares : Quoted (net of provision) Unquoted Aggregate Market Value of Quoted Investment in Shares : (excluding investments in HGI Industries Ltd.) INVESTMENTS Number Face Value Book Value Book Value of each as at as at Share 31st March.17.46. 2009 Rs. in absence of any current quotation) Figures in bracket represents for previous year.426.41.876 48.842 21.09.86.11.11.710. 10 10 1.10.995 16.95.537.354 61.232 51.52.35.78.131 52.392.056 1.44.876 3.36.037 2.619 6.43.18.837 64.246 60. Kesoram Textile Mills Ltd.79.51.53.650 18.00.78.20.955 9.000 52.634 51.01.596 1..450 1.76. Manjushree Plantations Ltd.455 53.02.88.846.515. Rs.02.55.915 61. 2010 31st March.168 7.10.23.50.46.01. Ltd.09.69.46. INVESTMENTS Investments purchased and sold during the year Current Investment – other than trade Units in Mutual Funds NFSTD Canara Robeco Floating Rate ST Daily Dividend Fund SBI – Magnum Insta Cash Fund – Daily Dividend Option UTI Liquid Cash Plan Institutional – Daily Income Option .60.Insti – Daily Dividend .620 74.00.83.253 23.596 46.828 10 (2.496.370 52.00. .46.66.31.472 8.232 61.43.041 4.242 15.000) - 12.47.18.59.77.09.75.108 50.108.86.321.904.Daily Dividend Kotak Floater Long Term – Daily dividend UTI Treasury Advantage Fund – Institutional Plan (Daily Dividend Option) Re – investment DWS Treasury Fund .447 2.Reinvestment Kotak Flexi Debt Scheme Institutional – Daily Dividend Kotak Liquid (Institutional) .39.Cash Institutional Plan – Daily Dividend DWS Insta Cash Plus Fund – Super Institutional Plan Daily Dividend HDFC Cash Management Fund – Treasury Advantage Plan – Wholesale Daily Dividend HDFC Cash Management Fund – Savings Plan – Daily Dividend Re-investment 52.64.042 1.359 56 .44.53.36. and Vidula Chemicals & Manufacturing Industries Ltd.728 79.93.38.53.275 21.283 Number Face Value of each Unit.00.672 62.28.242 3.000 10 100 10 10 10 10 1.62.980 18.213. Rs.48.50.53.68.08.SCHEDULE 6 (Contd.18.12.828 1.00.08.43.185.44.342.50. Brought forward (2) FULLY PAID SHARES IN SUBSIDIARY At Cost Bulland Buildmart Pvt.03.

342 3.13.42.692 5.29.85.90.79.85.98.05.16.68. Rs.13.000 5.Daily Dividend 32IN ICICI Prudential Institutional Liquid Plan – Weekly Dividend Option Axis Treasury Advantage Fund – Daily Dividend Reliance Liquid Fund – Treasury Plan – Retail Option – Growth Option Growth Plan NLFID – Canara Robeco Liquid Fund – Institutional Daily Dividend Re-investment NLPIDD – Canara Robeco Treasury Advantage Institutional Daily Dividend Fund 42.015 1.28.145 1.383 5.716 3.64.446 64.Considered doubtful Less: Provision for doubtful debts Other Debts .603 1.92.698 2.34.000 3.15.80.50.41.ANNUAL REPORT & ACCOUNTS SCHEDULE 6 (Contd.02.778.29.72.34.19.970 SCHEDULE 8 SUNDRY DEBTORS 31st March.35.40.961 34.373 50.352.035.77.117 28.20.089 3.37.87.633 3.) INVESTMENTS Investments purchased and sold during the year Current Investment – other than trade Units in Mutual Funds 32 IPD ICICI Prudential Liquid Plan Institutional Plus .26.Considered good Unsecured .054 SCHEDULE 7 INVENTORIES [Refer Note 1(d) on Schedule 17] Stores and Spare Parts Raw Materials Work-in-Process Finished Goods 31st March.28.14.75.00.566 2.52.570 3.089 3.921 1. 2010 31st March.63.51.063 2. 2010 31st March.05.10.86.35.51. 2009 Rs.000 10 10 10 2009-10 Cost Rs.401 3.785 9.683 1.682 7.17.24.698 2.79. Rs.88.595 5.36.00.45.06. Debts over six months Secured .32.92. 5. 2009 Rs.64.29.35.00.925 2.Considered good .239 2.925 50.89.79.66.95.637 57 . Rs.72.54.823 5.68.772 3.70.81.12.41.65.933 25.922 2.70.72.39.00.54.00.28.24. 10 10 1.04.00.979.50.603 5.984 1.82.040 3.72.04.31.16.26. 1.Considered good Secured Unsecured 3.38.984 7.059.75.606.027 Number Face Value of each Unit.

3.787) Remittances in transit] Unpaid Dividend Accounts Term Deposit Account [(including Rs.844 2.63. Cash in hand [including Rs.420 11.277 56.48.2009 . 5.63.21.2.Rs.913 30.84.12. 83.66. 2010 Rs.03.188 (31.08.485 (31.314 27.44.50.38.27.85.Considered Good Loan to Subsidiary Other Loans (including accrued interest) Advances recoverable in cash or in kind or for value to be received Balance with Excise.94.30.72.39. 2010 Rs.48.132 22.000 5.31.52.15.61.31.66.95.825 44.306 2.23.13.21.50.11.650 12.016 1.36.81.24.Considered Good Deposits Accruals under Duty Exemption Scheme pertaining to exports Accrued Interest on deposits 18.88.2009 .21.44.03.188)] pledged with sales tax/ ESI Authorities] With Post Office Savings Bank Account [Maximum Amount outstanding at any time during the year Rs.54.00.000 2.19.Rs.56.340] MAT Credit Entitlement [Note 13(a) on Schedule 17] 6.183 1.25.188 54.85.2009.Rs.623 (31.41.459 31st March.073) cheques/ drafts in hand] With Scheduled Banks on Current Account [including Rs.962 31st March.866 SCHEDULE 11 LOANS AND ADVANCES 31st March.18.43.041 34.00.24.87. 2009 Rs. 2009 Rs.594 SCHEDULE 10 OTHER CURRENT ASSETS 31st March.21. Advance Payment of Income Tax and tax deducted at source [net of Provision for taxation (including tax on Proposed Dividend) Rs.46.13.16.000 80.000 (Previous Year Rs.382 31st March.22.00.958 58 .27.447 31.36. Unsecured .00. Port Trust and Customs Authorities etc. 2010 Rs.926 1. 8. 5. 2009 Rs.SCHEDULE 9 CASH AND BANK BALANCES 31st March.12.188 5.174 10.098 28.000)] 36.672 41.292 78.63.97. 10.04.31.37.03.000 8.44.59.10.20.11. Unsecured .875 32.

47.2009 .68. Rs. CURRENT LIABILITIES Sundry Creditors Due to Micro and Small Enterprise * Others 14.405 1.562 3.25.238 15.35.44.661 PROVISIONS Taxation including tax on Proposed Dividend [net of Advance Income Tax (including tax deducted at source) 31.ANNUAL REPORT & ACCOUNTS SCHEDULE 12 CURRENT LIABILITIES AND PROVISIONS 31st March.28.99.21.11.62.65.89.04.48.407 2.98.00.56.92.03.45.056 3.2009 Rs.39.550 * represents principal amount Note: There is no amount due and outstanding to be credited to Investors Education and Protection Fund as at Balance Sheet Date other than unclaimed dividend of Rs.851 Advance from customers Unclaimed Dividend Other Liabilities Interest accrued but not due on loans 37.11.784 14.84.63.52.66.03.127] Fringe Benefit Tax [Net of Advance Tax Rs.05.788 (31.38.289 3.33.60.86.59.00.76. 2009-10 31st March.12.3.67.16.454 14.087 13.000 15.84.94.4.44. 2010 Rs.42.56.03.405 92.Rs. 2009 Rs.53.903) pertaining to cases under litigation regarding beneficial ownership of shares.45.068 16.056 85.784 31.2009 .12.661 2.86.08.44.634 14.307 (31.551)] Proposed Dividend 12.35.25.26.48.11.481 1.36.15. 10.13.78.3.395 59 .65.Rs.802 5.977 53.

07.35.362 2.79.811 Rs.Dividend .14.34.34.02.844 19.72.17.662 (2008-2009 .06.760 1.13.55.18.92.691)] On advance tax On delayed payment by customers On delayed credit by bank Insurance Claims Accruals under duty exemption scheme pertaining to exports Foreign Currency Translation Gain (Net) Liabilities no longer required written back Profit on Fixed Assets sold/ discarded (Net) Profit on Long Term Investments (other than trade) sold Profit on Current Investments (other than trade) sold Miscellaneous Income (Note 20 on Schedule 17) 24.87.319 28.933 (2008-2009 .383 4.36.30.43.284 6.85.30. 2008-2009 Rs.181)] On bank and other deposits [Tax deducted at source Rs.26.846 83.099 76.65.1.22.04.910 2.655 31.858 36.174 42. Income from Long Term Investments (other than trade) .616 4.425 24.212 1.95.34.78.946 74.250 48.64.74.863 3.Rs.15.33.05.10.64.67.50.20.88. 60 .72.28.93.2.Rs.9.739 4.77.38.98.78.93.879 8.25.67.105 4.15.098 4.746 22.213 30.917 4.74.722 15.79.846 1.922 1.18.676 75.11.72.558 46.383 Dividend income from Current Investments (other than trade) Interest (Gross) On loans [Tax deducted at source Rs.01.SCHEDULE 13 OTHER INCOME 2009-2010 Rs.99.Interest 4.

63.827 42.212 7.79.56.877 12.174 12.13.066 5.55. Bonus etc.484 51.39.86.97.32.25.21.480 26.610 12.47.60.45.48.513 2. Power and Fuel Stores Consumed Machinery repairs Other repairs Rates and taxes Insurance 5.40. (i) Raw Materials Consumed Opening Stock Purchases (a) Less : Closing Stock Raising cost of limestone (b) (ii) (Increase)/Decrease in Work In Process.346 4.31.10.539 74.922 1.68.16.73.460 2.07.576) 22.670 5.89.47.88. Wages.89.356 41.329 16.98.872 26.52.627 3.145 1.869 64.51.23.08.45.59.95.08.567 3. Contribution to Provident and other Funds Workmen and Staff welfare Dead Rent.532 (a) Purchase of Raw Materials is net of sale value (b) Limestone Raising Cost include: Salaries.27.79.446 2.73.12.63. Royalty etc.50.71.11.785 2.52.124 61 .95.68.16.15.04.47.68.13. 2.038 6.040 25.66.53.722 92.99.24.95.58. Finished Goods Opening Stock Work .57.18.131 18.12.89.04.71.338 2009-2010 Rs.47.02.239 22.77.876 MT)/ Semi-processed items transferred from trial run [Note 17 on Schedule 17] Less: Closing Stock Work .ANNUAL REPORT & ACCOUNTS SCHEDULE 14 RAW MATERIALS AND FINISHED GOODS Rs.242 60.780) 3.69.13.61. 2009-10 2008-2009 Rs.03.11.15.88.220 87.10.52.20.20.08.99.65.325 2.26.31.30.68.83.683 (1.10.279 2.40.10.21.04.958 40.99.13.16.70.785 (22.20.796 (1.921 16.24.92.99.68.799 2.28.15.36.07.861) 5.53.32.21.10.921 24.707 33.957 42.73.522 38.040 26.532 6.49.46.922 1.88.26.81.33.67.08.134 14.06.68.in .81.349 1.28.243 2.90.24.097 95.68.Process Finished Goods Less : Transferred to Capital Jobs 2.in .846 64.57.81.509 (27.35.69.68.88.34.370) 16.961 3.Process Finished Goods Purchases (c) Less: Work-in-Process transferred to trial run Add: Processed (11.674 1.

03.31.18.967 2.743 2.06.000 20.308 16.Rs.813 18.000 17.55.92.07.67.43.60.01. tubes & flaps (set) Tubes Flaps Market Fittings Nos.121 1.697)] Rates and Taxes Insurance Brokerage and Discounts Packing.36.241 62 .10.73.564 45.119 7.41.881 7.664 6.43.09.56.14.375 1.98.687 61.72.18.76.818 11.50.295 13.02.940 550 3. Nos.277 10.09.03.15.4.24.58.94.88.90.075 5.05.53. 1.38.61.851 1.81.44.137 4.32.Rs.513 74.83.55.243 (2008-2009 .70.151 55.239 6.000 24.27.87.94.13. SCHEDULE 15 MANUFACTURING.510 44.33.20.85.91.32.25.06.04.052 2008-2009 Rs.00.790 33.251 8.29.SCHEDULE 14 (Contd.12. Carriage and Shipping Commission to Selling Agents Directors’ Fees Directors’ Commission Carried over 8.09.58.519 85.02.90.20.25.08.05.037 1.78.82.342 (2008-2009 .91.55.49.77.51.562 1.82.153 30.23.2. 1.321 6.83.73.546 8.325 2008-2009 2008-2009 Rs.) RAW MATERIALS AND FINISHED GOODS 2009-2010 Rs. Nos.28.053 36. Quantity 2009-2010 (c) Purchase of finished goods comprise: Tyres.363 2.71.46.53.79.40.08.02.36. Bonus etc.20.02.88.069 5. Wages.57.95.004 2.14.74.59. Pcs.91.220 4.817 4.27. Salaries.17.1.74.641 42.00.19.666 3.859 6.62.01.514 37.000 14.00.05.598 19.910 13.083 3.80.33.80.21. Contribution to Provident Fund Contribution to Superannuation Fund Contribution to Gratuity Fund Contribution under Employees’ State Insurance Scheme Workmen and Staff Welfare Power and Fuel Stores and Spare Parts consumed [less sale value Rs.789 60.22.30.199)] Repairs and Maintenance Building Plant and Machinery Others Rent [Net of realisation Rs.122 4.60.195 40. SELLING AND ADMINISTRATIVE EXPENSES 2009-2010 Rs.078 1.423 97.69.

ANNUAL REPORT & ACCOUNTS SCHEDULE 15 MANUFACTURING.874 22.089 45. Interest : On Debentures On Fixed Loans Others Less: Interest Capitalised 30.12.31.99.53.12.626 1.824 2.05.20.30.491 18.23.12.69.63.09.132 1.98.58.46. 63 .952 1.06.98.59.99.87.66.209 1.52.06.03.09.51.20.355 1.16.276 47.62.25.22.03.85.06.21.783 2009-10 2008-2009 Rs.61.164 32.44.396 22.12.82.56.67.70.354 5.74.809 Rs. 2008-2009 Rs.809 1.650 1.170 SCHEDULE 16 INTEREST 2009-2010 Rs.956 16. 14.59.609 1.626 18.15.75.28.928 1.19. Brought Forward Long Term Investments (other than trade) written off Debts/ Advances/ Deposits written off Loss on Fixed Assets sold/ discarded (Net) Provision for Doubtful Debts Foreign Currency Translation Loss (Net) Miscellaneous Expenses 17.562 13.22.82.70.000 7.859 26.87.60.03.158 1.81. SELLING AND ADMINISTRATIVE EXPENSES 2009-2010 Rs.45.02.21.97.30.

Revaluation of Fixed Assets. 1993 of the Department of Company Affairs.SCHEDULE 17 NOTES ON ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. 1993) of the specified period recomputed by applying the Schedule XIV rates as revised during 1993-94 in keeping with the Circular No. is calculated under straight line method at applicable rates as per Schedule XIV to the Companies Act. (ix) Depreciation on additions to fixed assets from 1st April. (x) Pursuant to Central Government’s approval under Section 205(2)(c) of the Act. fixed assets of Hindusthan Heavy Chemicals Unit. Capitalisation costs include license fees and the cost of implementation/ system integration services. non refundable duties/ taxes. An amount equivalent to the aforesaid additional depreciation charge is transferred to the credit of the Profit and Loss Account from Capital Reserve . (ii) Land. 2010 1 SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Preparation of Financial Statements These Financial Statements have been prepared under the historical cost convention [other than for revaluation of certain fixed assets as detailed in ‘1(b)(ii)’ and ‘1(b)(iv)’ below] and in compliance with all the applicable accounting principles in India. 1993 other than items covered in (b)(iv) to (b)(vi) above is calculated under straight line method at the rates considered adequate to amortise the depreciable book value over the remaining part (as at 1st April. 1993 [except for deferral of annual depreciation charge for three years from 1999-2000 to 2001-2002 on certain fixed assets of Cement Units as indicated in (b)(x) below and items covered in b(vii) above]. 1956 as revised during 1993-94. (v) Depreciation on fixed assets acquired up to 31st March.14/93 dated 20th December. 1st April. 1982 and of Cement (at Basantnagar) and Spun Pipes & Foundries Units as at 31st March. (iii) Capital work in progress is stated at cost [including borrowing cost. Government of India. The Costs are capitalised in the year in which the relevant software is implemented for use. 2000-2001 and 2001-2002 accounts on certain fixed asset items of Cement Units are amortised over the remaining part of specified period (as at 1st April. 2000. 64 . An impairment loss is recognised wherever the carrying amount of fixed assets of a cash generating unit exceeds its recoverable amount (i. (vi) Leasehold land is amortised over the lease period. higher of net selling price and value in use). buildings and certain plant and machineries of Rayon and Transparent Paper Unit as at 31st March. (viii) Depreciation on fixed assets acquired up to 31st March. 2002 respectively) based on the prescribed rates. (iv) Depreciation on revalued items of fixed assets referred to in (b)(ii) above is calculated on their respective revalued amounts at rates considered applicable by the valuers on straight line method as against the methods/ rates/ bases which would have otherwise been adopted for the purpose of the annual accounts of the Company and accordingly includes additional depreciation charge. 1983 are stated at valuation made by the professional valuers in 1982-83 at the then current value. related pre operational expenses form part of the value of assets capitalised. In respect of projects involving construction. 1956 (the ‘Act’) and the relevant provisions of the Act. incidental expenses directly related to acquisition and borrowing cost where applicable and adjustments for exchange difference referred to in Note 1(f) below. where applicable and adjustment for exchange difference referred to in Note 1(f) below]. 2001 and 1st April. and those pertaining to Malkapur Extraction Divisions of Bharat General Unit [referred to in (b)(v) above]. A summary of significant accounting policies which have been applied is set out below. depreciation not provided in 1999-2000. incurred during construction/ installation/ pre-operative period relating to items or projects in progress. the applicable accounting standards notified under section 211(3C) of the Companies Act . 1956 as amended during 1993-94. 1983 and not covered by revaluations referred to in (b)(ii) above pertaining to Transparent Paper Division of Rayon & Transparent Paper Unit and fixed assets of Bharat General Unit (except those pertaining to Malkapur Extraction Division) is calculated under reducing balance method at applicable rates as per Schedule XIV to the Companies Act. (b) Fixed Assets and Depreciation (i) Fixed Assets are stated at cost of construction/ acquisition [except for items mentioned in (b) (ii) below] inclusive of inward freight.e. (vii) Software are capitalised where it is expected to provide future enduring economic benefits and amortised on a straight line basis over a period of three years from the date of capitalisation.

e. appropriate overheads. Gains/ losses on disposal of the investments are recognised as income/ expenditure. as considered appropriate by the Company and includes expenditure incurred in the normal course of business in bringing inventories to its location and condition. wherever necessary. gains/losses on settlement and mark to market loss (net) relating to outstanding contracts as at the Balance Sheet date is recognised in the Profit and Loss Account.ANNUAL REPORT & ACCOUNTS SCHEDULE 17 (Contd. All other borrowing costs are charged to revenue. benefits payable within one year ) are recognised in the period in which employee services are rendered. is to be made good by the Company. Provident fund contributions in respect of certain employees are made to Trusts administered by the Company. (d) Inventories Inventories are stated at lower of cost and net realisable value. (e) Borrowing Cost Borrowing costs attributable to qualifying assets (assets which require substantial period of time to get ready for their intended use) are capitalised as part of the cost of such assets. where applicable. (Also refer Note 15A below). 2011). (j) Employee Benefits Short-term Employee Benefits (i. (g) Derivative Contracts In respect of derivative contracts (other than forward exchange contracts covered under Accounting Standard 11 on ‘The Effects of Changes in Foreign Exchange Rates’). sales return and excluding sales tax/ value added tax. inclusive of related tax deducted at source. Cost is determined on weighted average/ FIFO basis. (f) Foreign Currency Translation as applicable under accounting standard 11 on ‘The effects of Changes in Foreign Exchange Rates’. Transactions in foreign currency are accounted for at the exchange rates prevailing on the date of transactions. if any. Contributions towards superannuation at rates specified in related approved scheme covering eligible employees are recognised as expense and funded. 65 . The remaining provident fund contributions are made to employer established provident funds (for other than covered employees) / government administered provident fund towards which the Company has no further obligations beyond its monthly contributions. Differences between the forward exchange rates and the exchange rates at the date of transactions are accounted for as income/expense over the life of the contracts.) 2009-10 (c) Investments Long Term Investments are stated at cost where applicable. Contributions towards provident funds are recognised as expense. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates. (i) Investment Income Income from investments is accounted for on accrual basis. provision for diminution is made or carrying amount is written down to recognise a decline other than temporary in the carrying amount of long term investments as determined by the Board of Directors on periodical review. Exchange differences arising on reporting of Long term foreign currency monetory items (i) relating to acquisition of depreciable capital assets is adjusted to the carrying amount of such assets (to be depreciated over the balance life of the related asset) and (ii) in other cases accumulate in a ‘Foreign Currency Monetory Item Translation Difference Account’ (to be amortised over the balance period of the related long term monetory asset/liability but not beyond 31st March. the interest rate payable to the members of the Trusts is not lower than the statutory rate of interest declared annually by the Central Government under the Employees’ Provident Funds and Miscellaneous Provisions Act. Current investments are carried at lower of cost and fair value. Provision is made for obsolete/slow moving/defective stocks. Refer Note 1(f) above for forward exchange contracts covered under Accounting Standard 11 on ‘The Effects of Changes in foreign Exchange Rates’. 1952 and shortfall. (h) Sales Sales represent value of goods sold and are net of trade discounts/ allowances. Gains/losses (other than relating to reporting of Long term foreign currency monetory items) arising out of fluctuations in the exchange rates are recognised in Profit and Loss Account in the period in which they arise.

The Company’s Spun Pipes and Foundries Unit is under suspension of work effective 2nd May. (l) Government Grants Grants of Capital nature and related to specific Fixed Assets are deducted from gross value of assets. the Transferor Company has been amalgamated with Transferee Company in these accounts with retrospective effect from 1st October. The Scheme has been accounted for using the ‘Purchase Method’ set out in Accounting Standard 14 on ‘Accounting for Amalgamation’. 2009 has been adjusted with the opening credit balance in Profit and Loss Account of Transferee Company. have been reflected in these Accounts. 2010 respectively. 2008 has been credited to Capital Reserve of the Transferee Company in 2009-10 and the results of the Tranferor Company for the period 1st October. Further expansion in bias tyre at Uttarakhand by 60 MT/day taken up in 2008-09 has been completed during the year.SCHEDULE 17 (Contd. evaluated on the basis of year-end actuarial valuation is recognised as a charge. Grant related to revenue are recognised in the Profit and Loss Account on a systematic basis to match them with related costs.1956. is provided and funded on the basis of year-end actuarial valuation. The Company intends to hive off its Hindusthan Heavy Chemicals unit (the Unit) as reflected in the Board Resolution of 31st January. (k) Taxes on Income Current tax is determined as the amount of tax payable in respect of taxable income for the year. The net assets as per the books of account of the Transferor Company after cancellation of investment of the Transferee Company in Tranferor Company as on 30th September. (c) 4 Radial car tyre project with 80 MT/day capacity at Balasore and further expansion of radial truck tyre by 85 MT/day at Uttarakhand taken up during the year are expected to commence commercial production by the end 2010-2011. 2. Deferred tax assets on unabsorbed depreciation and carry forward of losses under tax laws are not recognised unless there is virtual certainty that there will be sufficient future taxable income available to realise such assets. 2006. 2009. 2009.2 The Transferor Company was primarily engaged in the business of purchasing land for sale/ development and civil & constructional work relating to building. Deferred tax is provided/ recognised on timing differences between taxable income and accounting income using the liability method subject to consideration of prudence. Accrued liability towards leave encashment benefits. 3 (a) Expansion activities taken up in 2006-07 relating to fourth production line at Company’s Vasavadatta Cement Unit for 1.3 In accordance with the scheme. the Unit is in operation and results thereof. 2006 and later on consented by the shareholders by postal ballot of 24th March. Contribution to Central Government administered Employees’ State Insurance Scheme for eligible employees is recognised as charge. covering eligible employees. a wholly owned subsidiary Company (Transferor Company) with Kesoram Industries Limited (Transferee Company) 2. covering eligible employees. roads. 66 . The related clinker plant commenced commercial production on 1st June. bridges etc.) Liability towards gratuity. 2009 to March. 2010 and in phases from October. (b) Radial truck tyre (140 MT/day) and motor cycle tyre (95 MT/day) projects taken in 2008-09 at Uttarakhand commenced commercial production in March. 2. all assets and liabilities of the Transferor Company immediately preceding the Appointed Date have been incorporated in the books of account of Transferee Company at their respective book values on the basis of audited accounts of the Tranferor Company. The Unit is not significant in terms of the Company’s total assets/ liabilities/ revenue/ expenses/ cashflows.1 Pursuant to a scheme of Amalgamation (the ‘Scheme’) sanctioned by the High Court at Calcutta in July 2009 under the provisions of the Companies Act. Actuarial gains/losses arising in Defined Benefit Plans are recognised immediately in the Profit and Loss Account as income/ expense for the year in which they occur.2008. 2008 (Appointed Date). 2008 to 31st March. Pending disposal of the Unit. Other grants of Capital nature are credited to Capital Reserve. 2 Amalgamation of Bulland Buildmart Private Limited.65 million tons capacity increase of cement has commenced commercial production on 7th August.

422 (c) Rates.083 86. 2009 Rs.665 1. 11.72.551 1. Duties etc.96.88.79.913 1.73.99.864 2.94.09.20.55.91.60.20.29.29.08.70.14.083 1.Rs.000 2.66.64.529 5.ANNUAL REPORT & ACCOUNTS SCHEDULE 17 (Contd.500 (31. Taxes.591)] 4.850) 3.24.82.1.01.000 67 .92.00.80.22.00.33.85.35.26.65.09.01.255 3.62.21.223 45.335 (16.03.210 1. demanded by various Authorities Amount demanded by Provident Fund and Employees’ State Insurance Authorities which is subjudice 1.572 6 The major components of the deferred tax assets and liabilities accounted for during the year in the manner indicated in Note 1(k) above are as below: Tax effect of timing differences (a) Deferred Tax Liabilities Difference between written down value of block of assets as per Income tax laws and book written down value of the fixed assets (b) Deferred Tax Assets (i) Items allowable for tax purpose on payment (ii) Others Net Deferred Tax Liability as at the year-end Amount charged/(credited) to Profit and Loss Account 5. 2010 Rs.43.132 8.33.24.57.21.73. 8.09 .223 70.) 31st March.26.28.687 3.509 1.000 1.75.54.14.89.71.673 3.1.12.88.02.27.38. Duties etc. 5A Contingent Liabilities : (a) Guarantees given (i) to excise authorities (ii) by Banks on behalf of the Company (excluding relating to joint venture referred to in Note 16 below) (b) Claims against the Company not acknowledged as debts : Rates.07.86.000 11.755 2009-10 31st March.490 2. Taxes.57.159 (d) Amount payable in connection with reorganisation of the Company in earlier year 5B Capital Commitments [net of advances Rs.31.71.06.86.85.33.

08.000 7.250 Depreciation under Section 350 of the Companies Act.61.49.53.067 90.39.85.08.600 6.000 19. Bonus etc.10.89. 7 (a) Computation of Net Profit under Section 349/ 198(1) of the Companies Act.43.640 14. 27.304 10.000 11.27.11.115 5.60.11.20.85.92.00.85.022 1.35. 68 .81.43.11.00. 1956 1.448 4.28.609 1.09.099 76.711 24.069 6.627 8.) 31st March.166 36.959 90.31.72.518 4.14.78.12.49.972 62.911 3.09.517 1.000 61.000 5.67.80.12.33.35.63.88.00.51.98.81.11.022 2.34.51.959 Less : Profit on Long Term Investments (other than trade) sold Profit on Current Investments (other than trade) sold 42.286 1.74.80.51.319 1.81.447 4.000 20.31.264 2.59.528 6.85.959 13.68.84.000 24. 2010 Rs.07.666 20.68.070 4. Contribution to Provident Fund Contribution to Superannuation Fund Contribution to Gratuity Fund Other benefits/ perquisites 1.80.12. 2009 Rs.64.051 1.21.00.836 1.365 [included in Note 7(b) above] of a Director in whole-time employment.089 1.00.438 1.648 4.23.66.03.55.25.75.244 3.53.80.84. 1956 for the purpose of Directors’ commission Profit before Taxation per Profit and Loss Account Add : Depreciation as per accounts Managerial Remuneration Long Term Investments (other than trade) written off Provision for doubtful debts 31st March.022 (c) Shareholders’ approval is yet to be obtained for remuneration of Rs.509 4.557 Capital profit on sale of fixed assets Net Profit 1% of Net Profit Commission payable to non whole-time Directors (b) Managerial Remuneration (i) Directors’ Fees (ii) Commission to non whole-time Directors (iii) Remuneration paid/ payable to Director/Manager Salaries.SCHEDULE 17 (Contd. 4.01.09.18.000 38.71.

084 1.87.) 2009-2010 Rs.50.44.03.50.82.50.45.000 39.41.57.704 2009-10 2008-2009 Rs.40.11.77.681 6.000 13 (a) Provision for Current Tax for the current year 2009-2010 is net of MAT credit of Rs. 4.843 5.Nil (2008-09 .164 3.160 [2008-09 .55.94.98.000 2.12.43.931 4.711 1.Rs.22.536 5.000 27.29.034 13.62.91.87.00.80. 14 Miscellaneous expenses (Schedule 15) include Rs.000 32.25.00.73.339 55.05.800 2.26.257 35.23.92.79.ANNUAL REPORT & ACCOUNTS SCHEDULE 17 (Contd.63.323 14.885 32.32.63.000 (2008-2009 .48.402 16.00.57.15.21.016 19.10.25.000 35.64.Nil) as the Company is confident to generate sufficient taxable income in the next few years available for set off of the aforesaid credit within the stipulated time. carriage and shipping (Schedule 15) includes: (a) Consumption of stores and spare parts (b) Salaries and Wages 11 Fixed Assets/ Capital Work-in-Progress (Schedule 5) include consumption of stores and spare parts during the year 12 Miscellaneous expenses (Schedule 15) includes: (a) Guarantee Commission (b) Technical Service Charges (c) (d) (e) Conversion Charges Consumption of stores and spare parts Auditors’ Remuneration: As Auditors Audit Fees Tax Audit Fees [including Rs.68.net of Rs.589 2.41.40.872 59.300 34.444) in respect of earlier years.098 14.Rs.Rs.14. 8 9 Power and Fuel (Schedule 15) includes consumption of stores and spares Repairs and Maintenance (Schedule 15) includes: (a) Consumption of stores and spare parts (b) Salaries and Wages (c) Technical Service fees 10 Packing.17. (b) Provision for Current Tax for the year 2009-2010 is net of write back of Rs.3.90.468 7.09.Nil (2008-2009 .581 62.06.63.79.815 12.50.96.97.67.692 4.799 33.336] excise duty related to the difference between the closing stock and opening stock 69 .62.3.000) for previous year] Fees for issuing various certificates (including Limited Review) Reimbursement of Expenses (f) Payment to Cost Auditors (Fees) 75.04.48.95.94.41.000 28.

82.613 2.48.22.57.298) 57.112) 43. with respect to covered employees.324 (2.917 40.16.04.07.112) 50.81.85.132 47.35.67.82.12. 2007-2008 Rs.50.34.132 55.25.11.743 3.375 3.34.49.839 3.49.98.30.400 6.64.078 3.757 42.645 (3.28.30.20.732) 2.37.806) 3.757 2.82.97.917 3.05.20.35.57.84.019 6.26.924 43. actuarial valuation cannot be applied to reliably measure provident fund liabilities in absence of guidance from Actuarial Society of India.90.078 (5.96. Reconciliation of opening and closing balances of the fair value of Plan Assets (a) Fair Value of Plan Assets at the beginning of the year (b) Expected Return on Plan Assets (c) Actuarial Gain/(Loss) (d) Contributions by employer (e) (Benefits Paid) (f) Fair Value of Plan Assets as at the end of the year III. I.808 57.12.271 70 . however.50.502 (2.924 3.51.) 15 A .04.668 (5.136) 42.85.324 3.91. in consultation with Actuary.471 (3. having regard to the position of the Fund (for covered employees) and confirmation from the Trustees’ of such Fund there is no shortfall as at the year end.25.808 4.24.95.05.57.97. Reconciliation of opening and closing balances of the present value of the Defined Benefit Obligation (a) Present Value of Obligation at the beginning of the year (b) Current Service Cost (c) Interest Cost (d) Actuarial Loss (e) (Benefits Paid) (f) Present Value of Obligation at the end of the year II.99. Also refer Note 1 (i) for accounting policy relating to gratuity. In keeping with the Company’s gratuity scheme (a defined benefit plan).82. SELLING AND ADMINISTRATIVE EXPENSES’ on Schedule 15 of respective year’s accounts 2008-2009 Rs.13.743 3.92.738) (2. the Company is currently not in a position to provide other related disclosures as required by the aforesaid AS 15 read with the ASB Guidance.815 11.24.64.12.48.32. eligible employees are entitled to gratuity benefit (at one half month’s eligible salary for each completed year of service) on retirement / death / incapacitation / termination.64.40.07.68.298) 55.96.200 3.34.67.00.50.25.26.85.645 4.82.11.SCHEDULE 17 (Contd.078 47.839 35. Accordingly. Reconciliation of the present value of Defined Benefit Obligation in ‘I’ above and the fair value of Plan Assets in ‘II’ above (a) Present Value of Obligation as at the end of the year (b) Fair Value of Plan Assets as at the end of the year (c) Liability recognised in the Balance Sheet IV.738 7.84.132 3.27.917 43.116 (3.33.91.28.83.57.924 42.28.76.815) 3.24.00.00.35.51. In keeping with the Guidance on implementing Accounting Standard (AS) 15 on Employee Benefits issued by the Accounting Standards Board of the Institute of Chartered Accountants of India (ASB Guidance).779) 4.20.99.839 6.81.51. if any.85.74.26.084 (2.18.116 2.13. According to the management.00.47.200 3.808 2.75.92.81.00. Following are the further particulars with respect to gratuity :2009-2010 Rs. 50.380 (2.361 7.75. employer-established provident fund trusts are treated as Defined Benefit Plans since the Company is obligated to meet interest shortfall.375 50.57.132 3. B.684 2.97.82.26.10.37.95. Expense charged to the Profit and Loss Account (a) Current Service Cost (b) Interest Cost (c) (Expected Return on Plan Assets) (d) Actuarial (Gain)/Loss (e) Total expense charged to the Profit and Loss Account* * reflected as ‘Contribution to Gratuity Fund’ under ‘MANUFACTURING.250 6.136) 47.20.57.67.12.25.25.806 (2.502 36.02.82.60.

15. Rs. 13. the plan assets are reasonably diversified.66.61.00% 6. VI.14.00% 5.01% 2.41% 6. 2010 31st March.115 5. Loans and Advances a) Cash and Bank Balances b) Loans and Advances II Liabilities 1.89% 31st March.00% 5. 2008 Rs.01. Current Liabilities III Profit and Loss Account Debit Balances IV Income V Expenditure a) Administrative Expenses b) Depreciation Share of Contingent Liabilites (Gurantees given by bank) 71 . The expected rate of return on plan assets is based on the portfolio of assets held.61.020 - 2. seniority. investment strategy and market scenario.00% (a) Discount Rate (per annum) (b) Expected Rate of Return on Plan Assets (per annum) 7. Rs. income and expenses (each without elimination of the effect of transactions between the Company and Joint Venture) related to interest in joint venture are :I Assets 1.50% 8.00% (d) Inflation Rate The estimates of future salary increases. liabilities.027 2009-10 56. Principal Actuarial Assumptions 2007-2008 Rs. 2010 Rs.15.00% 6.06% 6. 16 The Company’s interest as a venturer in jointly controlled entity (incorporated joint venture during the year) is:Name Country of Incorporation Proportion of ownership interest as on 31st March.359 60 8.6) and stated at cost. Percentage of each Category of Plan Assets to total Fair Value of Plan Assets (a) NAV / Interest based schemes with Insurance Companies (b) Special Deposit Scheme with State Bank of India (c) Government (Central and State) Securities (d) Others (including bank balances) 31st March.89% 7. 2. 2.84% 24.ANNUAL REPORT & ACCOUNTS SCHEDULE 17 (Contd. 7. 2009 Rs.31% 3. 58. Actual Return on Plan Assets VII.365 5. take account of inflation. considered in actuarial valuation.46 Proportion of ownership interest as on 31st March. 2010 31st March.51% 31.61% 2008-2009 Rs.) V.00% 8.77.96.00% (c) Salary Escalation 5.09% 2009-2010 Rs. 67.50% 7. 10.07.19% 30.397 718 2.138 31st March.99.594 32. Rs.193 2.176 31st March. 2009 Rs. 2010 45.89. 2009 - India Gondkhari Coal Mining Limited The Company’s interest in the joint venture is reported as Long Term Investments (Schedule .00% 5. such as supply and demand in the employment market. promotion and other relevant factors.00% 7. The Company’s share of each of the assets.378 7.19% 5. In order to protect the capital and optimise returns within acceptable risk parameters. Fixed Assets a) Net Block b) Capital Work in Progress 31st March. 2009 31st March.07.115 2. Current Assets.39. 2008 Rs.

97.12.11.999 25.564 Balance as on 31st March.53.23.446 34.03.632 27.044 87.95.961 4.230 87.12.56.898 22.35.044 87.96.023 13.141 1.73.99.06.35.67.51.712 3.147 72.446 1.201 4.58.40.337 35. (d) 6.16.06.29.402 35.112 4.371 60.420 88.85.11.309MT). Wages. (b) 6.03.11.693 51.76.(d) 73.962 20.36.572 6.92.947 2.99.69.091 56.35.664 15.57.25.25.265 Processed/Semi-Processed items transferred at the end of trial run (Schedule 14) Capitalised 5.25.08.99.16.90.167 21.901 36.99.10.44.92.51.8. Contribution to Provident and Other Funds Workmen and Staff Welfare Power and Fuel Repairs and Maintenance to Plant & Machinery Rent Rates & Taxes Insurance Miscellaneous Expenses 1.38.32.315 62.96.403 10.670 9.387 31.015 4.230 73.95.62.055 16.940 72 .27.08.63.420 88.30.98.92.367 26.10.455 1.51.564 22.40.670 9.06.224 18.307 Sales Proceeds of items manufactured during Trial Run [Clinker Sales .44.961 5.935 82.95.30.12.44.58.47.580 20.04.140 16.342 Rs.31.298 4.555 26.572 1.Rs.41.95.92.47.762 14.693 11.06.571 7.40.27.14.31.205 1.940 11.139 31.Rs.778 43.69.799 1.73.801 24.16.975 1.743 56. Bonus etc.69. 2010 Rs.74.19.961 5.42.30.93.23.69. (a) Raw Materials consumed Work in process transferred to trial run Stores and Spare Parts Consumed Salaries.96.16.20.892 50.SCHEDULE 17 (Contd.50.34.03.947 - Scrap Sales during trial run - Total (B) - 26.230 During 2009-2010 Rs.10.14.518 1.212 25.53.01.99.947 - 2.319 (32.87.537 Interest Total (A) 19.24.10.344 24.313 (64.99.91.11.265 1.47.632 - - 2.084 2.92.43.40. 2009 Rs.07. (c ) = (a) + (b) 6.543 48.14.59.39.21.632 27.564 99.21.62.00.98.56.03.07.212 25.337 24.74. Cement Sales .44.420 88.98.212 25.42.27.86.367 26.99.18.295 5.44.27.200 6.53.39.41.32.08.044 87.96.35.180 46.587 57.257 Total Capitalised/ Transferred Rs.92.46.947 1.734MT)] Less:Excise Duty - 27.01.18.99.367 - Net Pre-Operative Expenses (A-B) 51.670 9.61.) 17A Details of pre-operative expenses incurred relating to expansion/ greenfield projects referred to in Note 3 above 2009-2010 Up to 31st March.26.60.01. (c ) .99.10.30.14.75.58.

84.00. 2010.000 (31.01.) 17B 2009-10 Details of pre-operative expenses incurred in 2008-09 relating to cement and tyre expansion/ greenfield projects 2008-2009 Up to During Total Capitalised/ Balance as on 31st March.060 51.422 3.35.533 65.49.69.20.537 Interest 8.(d) Raw Materials consumed 3.46.71.95.2010) are due for redemption at par on 24th May.90.2010) are due for redemption at par on 16th April.201 Rent 6.33.000 (31.47.09 .483 12.317 1.402 35.75.47.Rs.Nil) (b) 6.08.514 67.00.60.23.139 Miscellaneous Expenses 18.147 Insurance 55.00.3% secured redeemable non convertible debentures aggregating Rs 1.13.ANNUAL REPORT & ACCOUNTS SCHEDULE 17 (Contd.000 (31.000 (2008-09 . 2010 respectively.50.15.035 11.943 51.337 13.10. (c) 6.03. Rs.Rs. 19. 73 .92.000 (31.49.117 Total (B) Net Pre-Operative Expenses (A-B) 26. being 25% of the aforesaid value of debentures in Debenture Redemption Reserve.Rs.978 24.862 41.1 Short term loans from banks (Schedule 4) include :Commercial Paper of Rs.94.15.403 Contribution to Provident and Other Funds 12.14.00.888 1.00.94.03.14.851 48.063 4. 2010 and 17th May.22.000 (31.771 35.01.70.943 1.Rs.08.37.02.15.06.09 .518 7.117 55.512 25.71% redeemable non convertible debentures aggregating Rs.00.80.175 4.03.23.67.85. has been created out of the profits for the year.230 Total (A) Scrap Sales during trial run 35.165 Salaries.25.08.09 .233 47.25.00.485 31.21. 2.82.15.74.09.15.00.Rs.117 35.524 21.15.165 6.41.09 .62.230 Power generated during Trial Run (Included under Power and Fuel in Schedule 15) Semi-processed items transferred (Schedule 14) Capitalised 18.678 37.112 Power and Fuel 1.00.517 72. (e) 5.88.00.117 35.25.49.66.766 34.062 3.46.74.00.19.2008) have been redeemed at par by exercising put option during the year. Nil).Rs.543 Workmen and Staff Welfare 17.00.40.279 51.64.647 10.03.1 13% Secured redeemable non convertible debentures aggregating Rs.21.51.2010) are due for redemption at par on 12th May. 2010) are due for redemption at par on 14th May.61.949 1.190 26.35. Short term loans from others (Schedule 4) comprise :(a) Commercial Paper .04.169 32.38.15.297 55.14.116 1. Rs. being 25% of the aforesaid value of debentures.00.375 33.000 (31.00.Nil).34.854 43.00.71.52. Rs.06.03.00.00.Nil).20.00. 2009 Rs.75.56. privately placed (allotment dates -15th February.01.636 6.03.200 Rates & Taxes 11.57.29.70.17.229 31.Nil).355 41.21.27.51.424 12.03.Nil) and Rs.Nil).81. privately placed (allotment date -15th February.15.30.1.66.82.06.10.27.15.08.831 19. Wages.00.60.449 84.Rs.Rs.86.290 55.52.03.14.000 (31.62.86.26.09 .317 2. 2010.000 (31.03.59.30.117 1.03.38.00.000.25. privately placed (allotment date -17th November.86.2 7. privately placed (allotment date -17th March. Debenture Redemption Reserve of Rs.062 Stores and Spare Parts Consumed 6.783 17.319 5.117 80.31.40.890 37.2009 .12.25. 2008 2008-2009 Transferred 31st March.09 .4% redeemable non convertible debentures aggregating Rs.52.21.98.Nil). privately placed (allotment date -24th February.963 83.000.64.103 3. 2010 & 17th February.60.03.87.062 3. Bonus etc.50.00.2009) are due for redemption at par at the end of 13 months from the date of allotment.Rs.402 80.019 1.255 28. (a) (b) (c ) = (a) + (b) (d) (c ) .30.367 3. On the aforesaid redemption. Rs.455 Repairs and Maintenance to Plant & Machinery 2.Nil).2% redeemable non convertible debentures aggregating Rs.693 26.09 .117 17.89.2.52.77.905 59.00.23.165 6.359 23.03.19. privately placed (allotment date -17th November.21.00.173 35. 18.Rs.15.00. has been tranferred from Debenture Redemption Reserve to the Profit and Loss Account. 2010. Rs. (d) 6% redeemable non convertible debentures aggregating Rs.41.

35 % unsecured redeemable non convertible debentures aggregating Rs 1.000 (31.00.75% unsecured redeemable non convertible debentures aggregating Rs 50.57.2 Other loans from banks (Schedule 4) include :(a) Zero coupon unsecured redeemable non convertible debentures aggregating Rs 1.720 Accumulated depreciation as on Balance Sheet date 1.00.18.1.17.33. which forms an integral part of this Schedule.318 4.Rs.318 4.000. 2009) are due for redemption at par at the end of 377 days from the date of allotment.Nil (2008-09 .Rs.226 Depreciation recognised in the profit and loss account 1. (2008-09 .Nil) (iii) later than five years .23.43.41.Nil) relating to non cancellable operating lease.80 23 74 . 22 Information pursuant to the provisions of paragraph 3.) 19.00.47.Rs.000 (31.36.Nil) privately placed (allotment date -22nd September. the aforesaid mark to market loss along with realised loss (net) of Rs.77.Rs.2008.00.88 82.03.02.Rs.270) in respect of outstanding derivative contracts at the Balance sheet date by marking them to market as indicated in Note 1 (g) above and the resultant excess liability of Rs.318 Number of Ordinary shares at the end of the year 4.57.742 during the year arising from derivative contracts is written back and included in ‘Miscellaneous Income’ under Schedule 13 to accounts.523 net of realised loss (net) of Rs.085 (2008-09 .00.37.Nil) (ii) later than one year but not later than five years .3 Debenture redemption reserve of Rs 1.09.19.57.the company has accounted for during the year net loss amounting to Rs.Rs.2009 .840 (2008-09 .10. privately placed (allotment date -15th March.736 later than five years General Description of the aforesaid arrangement: Operating leases on renting a unit of building entered into by the Company is for a fixed term of 5 years extendable up to 12 years. 1956 is given in Schedule 18.Nil) privately placed (allotment date -19th March.03.57. 2009-2010 2008-2009 Earnings Per Share (EPS) Number of Ordinary shares at the beginning of the year 4.318 Weighted average number of Ordinary shares outstanding during the year (A) 4.79.98.318 4.74.15.92.Rs.Rs.760 later than one year and not later than five years 88. 2010) are due for redemption at par at the end of 396 days from the date of allotment.226 The future minimum lease receivable under non-cancellable leases are as given below: not later than one year 21.74.03.18.000 (31.00.68.00.Nil) b) The Company has given a unit of building on operating lease to Lazarus Hospital during the year for 5 years extendable up to 12 years on mutual consent Amount in Rupees Particulars 2009-2010 2008-2009 Gross carrying amount as on Balance Sheet date 1.1 and 19. In 2008-09. (b) 7.12.87.89. The significant leasing arrangement interalia includes option for renewal. being 25% of the value debentures referred to in Notes 19. This leasing arrangement is for three years and is in respect of office premises.09 .03.57.) 10 10 (B) 2.25.2009 .747 (31.00.43.43.177 3. The total of future minimum lease payments under this non cancellable operating lease: (i) not later than one year .Nil). 2010) are due for redemption at par on 5th April.43.25.) Earnings per Share (Basic and Diluted) (Rs.01. 19.500 was included ‘Miscellaneous Expenses’ under schedule 15 to accounts.70.78.43. 4C and 4D of Part II of Schedule VI to the Companies Act.03.57.318 Nominal value of each Ordinary Share (Rs.2 above has been created out the of profit of the Company.) (B/A) 51.595.901 Profit after Tax (Rs.03. (c) 8.Rs.2009 .SCHEDULE 17 (Contd.43. 20 Pursuant to the Announcement on Accounting for Derivatives issued by the Institute of Chartered Accountants of India in March.33. 2011.Rs. 21 a) Rent expenditure (Schedule 15) includes lease payments of Rs.Rs.43.

61.43.11.95.85.448 7. 75 .09.662 35.609 The Company operates predominantly within the geographical limits of India and accordingly secondary segments have not been considered.12.18.78.54.) 24 Information about Business segments Tyres Rs.903 76.10.897 39.09.03.34.28. and Chemicals Rs.45.915 34.29.83.22.46.31.49.61.59.483 1.43.95.51.62.912 1.27.626) 37.553 1.49. 2.51. 28.82.40.49.16.12.12.137 87. Cellophane Paper.71.07.52.07.800 13.067) 5.47.36. Caustic Soda Lye.41.753 Tyres.56.344 90.65.12.651 19.609 Viscose Filament Rayon Yarn.86.75.821 28. Tubes and Flaps Cement - 2.585 24.403 35.572 55.20. Sulphuric Acid.59.388 42.12.53.83.73.78.09.027 11.57. T.35.402 4.553 30.72.35.68.P.99.62.97. 2009-2010 Rayon.218 12.69.762 5.18.28.61.38.25.03.708 17.24.57. Hydrochloric Acid - 2.58.93.306 1.63.60.532 1.32.86.21.12.51.35.75.88.58.77.888 17.34.48.09. Segment Revenue Sales Less: Inter segment Sales (made at cost) Total Segment Results [Profit/ (Loss) after considering Other Income and before interest and tax] Interest Other unallocated income (net of expenditure) Profit Before Tax Segment Assets Unallocated Assets Total Segment Liabilities Unallocated Liabilities Total Segment Capital Expenditure Segment Depreciation and amortisation Segment non-cash expenses other than depreciation and amortisation Principal Items manufactured Cement Rs.43.930 4.386 1.134 1.99.210 57.787 5.612 7.41.85.582 2.761 4.49.86.96.303 33.19.ANNUAL REPORT & ACCOUNTS SCHEDULE 17 (Contd.246 80.275 50.30.742 (3.70.651 19.59. 2009-10 Total Rs.37.04.144 (1.19.54.72.70.315 Others Rs.275 50.11.74.90.57.

41.28.71.22. Segment Revenue Sales Less: Inter segment Sales (made at cost) Total Segment Results [Profit/ (Loss) after considering Other Income and before interest and tax] Interest Other unallocated expenditure (net of income) Profit Before Tax Segment Assets Unallocated Assets Total Segment Liabilities Unallocated Liabilities Total Segment Capital Expenditure Segment Depreciation and amortisation Segment non-cash expenses other than depreciation and amortisation Principal Items manufactured Cement Rs.114 The Company operates predominantly within the geographical limits of India and accordingly secondary segments have not been considered.75.02.72.42.114 4.298 26.287 16.944 7.63.062 1.469 28.51.79.888 16.809) 21.75.98.34.90.170 Viscose Filament Rayon Yarn.103 39.567 3.45.P.86.383 3.17.117 27.351 3.140 Others Rs.180 1.70.930 1.36.417 20.23.60.45.45.76.58.49.54.917 9. Sulphuric Acid. T.58.575 46.06. 2.66.27.27.01.13.77.42.25.35.92.25.98.68.08.47.68.86.61.47.133 1.511 4.97.34.598 60.626 42.73. Cellophane Paper.73.92.92.87.22.866 (1.56.61.96.SCHEDULE 17 (Contd.12.42.87.49.43. 2008-2009 Rayon.85.61. and Chemicals Rs.42.401 Tyres.54.33.71.81.19.58.82.70.58. Total Rs.229 (4.986 6.17.80.31.589 26.) Information about Business segments Tyres Rs.56. Caustic Soda Lye.43.06.11.64.959 1.34.09.21.11.51.70.27.67.626 42.852) 5.77.046 19.417 20.05.65.75.61. 76 .56.046 57.051 13.90. Hydrochloric Acid 7.30.92.06.489 38.028 5.90.619 21.028 27. 19.597) (17.17.785 10.11.47.60.62.86.51.006) 4.318 (57.96. Tubes and Flaps Cement - 15.20.31.77.939 15.31.888 2.

Ltd. ** Joint venture effective June 22.Jain (Manager) .1. .Shri D.Jain) (e) Enterprise having common Key Management Personnel (f) Enterprise over which person . - - - 27.Century Textiles & Industries Ltd.Jay Shree Tea & Industries Ltd. II. I (f) above Rs.Syt. **** Also proprietor of A.Mangalam Cement Limited 2009-2010 Related Parties referred to in I (b) above I (c) above I (d) above I (e) above Rs.Jain) .Century Textiles & Industries Ltd.Jay shree Tea & Industries Ltd.Shri Sunil Jain (Son of Shri K.24. Rs.Century Textiles & Industries Ltd. .082 - - 77 .Century Enka Ltd.B. Rs.38.C. January 01.14.C.Shri K.Century Enka Ltd.Century Enka Ltd. .f. . .687 3. Tandon*** .Birla .Shri Sunil Jain (Son of Shri K. Sales .000 8. . Tandon has been appointed as a Director w. .e. .ANNUAL REPORT & ACCOUNTS SCHEDULE 17 (Contd.Birla . 2010. .Syt. .K. Transactions Particulars I (a) above Rs.Jay Shree Tea & Industries Ltd.16.) 25 Related Party Disclosures 2009-2010 I.22.K. Rs.C.Jay Shree Tea & Industries Ltd.Mangalam Cement Limited Bulland Buildmart Pvt. .19. List of Related Parties (a) Parties where control exists (i) Subsidiary (ii) Joint venture** (b) Key Management Personnel (c) Relative of Key Management Personnel**** (d) Other Related Parties # 2008-2009 2009-10 * Gondkhari Coal Mining Limited .Synergy Enterprises referred to in ‘(c)’ above is able to exercise significant influence. Interest . # The parties stated in (d) above are Related Parties in the broader sense of the term and are included for making the financial statements more transparent.B.399 3. * Ceased to be a subsidiary on amalgamation referred to in Note 2 above.57. (i) Income Rent & other Services .408 .K.Century Enka Ltd. Enterprises.642 - - - - . 2009 *** Shri D.94.Jain (Manager) .Century Textiles & Industries Ltd.Shri K.C.

404 12.00.K. Tandon Purchases .3.Mangalam Cement Limited Directors’ Fees . Rs.000 - 2.K.Sunil Jain / A.237 - . Realisation of loan Given to Jay Shree Tea & Industries Ltd.54. . Rs.D.334 3.280 - - 23.45.) II. Jain .00.52.495 7.32.94. Enterprises Commission .Century Textiles & Industries Ltd.Synergy Enterprises Reimbursement for purchase of asset .624 .80.63.Synergy Enterprises Expenses reimbursed .Century Enka Ltd.00.Sunil Jain / A.762 3. .73.Sunil Jain / A.Sunil Jain / A.Birla (iii) Finance & Investment Loan Given to Jay Shree Tea & Industries Ltd.Century Textiles & Industries Ltd.062 1.06.K. I (e) above I (f) above Rs. Enterprises .365 19.K.Birla Directors’ Commission .128 94. .25. (ii) Expenditure Rent and Other Services .73.91.324 37.657 27. Transactions Particulars 2009-2010 Related Parties referred to in I (a) above I (b) above I (c) above I (d) above Rs.59. B.K.SCHEDULE 17 (Contd. Investment in shares of Gondkhari Coal Mining Ltd. C. Enterprises .196 42.Synergy Enterprises Interest Paid . B.97.Synergy Enterprises Remuneration [Refer Note 7(b)(iii) above] .00. Enterprises .K. Rs.Syt.00.59.2.Syt.27.06.00.70.000 23.622 31.918 . Rs.000 3.089 - .Jay Shree Tea & Industries Ltd. 72.44.K.000 - - - 78 . .65.

.374 - - - 3.42.813 15. - - - 1. Enterprises .82.401 3. . .29.961 - - - 9.Century Textiles & Industries Ltd.Jay Shree Tea & Industries Ltd.468 58.27.Sunil Jain / A.308 - 79 .174 1.Century Enka Ltd. Transactions Particulars I (a) above Rs.91.400 5.20.K. .Jay Shree Tea & Industries Ltd.22. I (b) above Rs.676 - - - 84.643 4.764 1. . Enterprises .Sunil Jain / A.23.Gondkhari Coal Mining Limted Investment in shares .41. (iv) Others Dividend paid .Synergy Enterprises Other receivables .513 16.Synergy Enterprises Directors’ Commission .83.K.57.Century Textiles & Industries Ltd. Rs.450 67. . .000 - - - .07. . . Enterprises .000 - - - - 3. Rs. 2009-2010 Related Parties referred to in I (e) above I (c) above I (d) above Rs.Century Textiles & Industries Ltd.) II.99.65.10.Syt.80.74.Synergy Enterprises Other payable .26.437 26.57.17.Sunil Jain / A. .280 - - 4. B. .10.25.000 - 3. (v) Balance Outstanding at year end Security deposit payable .Century Enka Ltd.Mangalam Cement Ltd.000 32.142 3.600 43.ANNUAL REPORT & ACCOUNTS SCHEDULE 17 (Contd.00.500 - 15.34.Sunil Jain / A. .Century Textiles & Industries Ltd.K.Jay Shree Tea & Industries Ltd.765 2.41.Century Textiles & Industries Ltd.18. . 2009-10 I (f) above Rs. Birla Interest payable .Century Enka Ltd.738 12.03.26.24. .51.Gondkhari Coal Mining Ltd.17. Enterprises .989 1.92.627 40.Century Enka Ltd. Dividend received .Jay Shree Tea & Industries Ltd.78.Mangalam Cement Ltd.K.K.Mangalam Cement Ltd.

Century Enka Ltd.481 - - - - 80. I (e) above Rs. - - - 34.23.64.000 12.Birla (iii) Finance & Investment Loan given Security deposit taken Loan taken Repayment of Loan Taken Investment in shares (iv) Others Dividend paid .00.53.000 - - - 2. Rs.00.Century Textiles & Industries Ltd.000 - 41. Directors’ Fees .84.80.07.B.000 42.000 - - - - 56.722 .60. . .000 4.50.SCHEDULE 17 (Contd. .704 79.Birla Directors’ Commission .36.402 - 40.Syt. (i) Income Rent & other Services .974 - . Rs.08.00.24.Century Textiles & Industries Ltd.4.99.690 - 80 .63.432 .00.Jay Shree Tea & Industries Ltd. .K.73.Century Enka Ltd.44.00.00.Others Commission Interest Paid Remuneration [Refer Note 7(b)(iii) above] Purchases .73.50.533.62. .984 3.374 - .366 .Others (ii) Expenditure Rent and other Services .Century Textiles & Industries Ltd.) II.34.17. 2008-2009 Related Parties referred to in I (b) I (c) above I (d) above above Rs.Century Textiles & Industries Ltd.23.K. Transactions Particulars I (a) above Rs.959 - - .647 - 90.33. Sales .Century Textiles & Industries Ltd.00.18.19.B.580 9.25.Century Enka Ltd.Syt.292 - - - - 93.1. .000 .384 - - .

99.705 - 31st March.43. 2009 Rs.25.57.260 26 Shares of Jay Shree Tea & Industries Ltd. Dividend received .000 12. P. B. Partner Membership No.Jay Shree Tea & Industries Ltd.60.K. raw materials.26. 1.50. Ltd.89.41.12.16. purchase records etc.92.260 1.Century Textiles & Industries Ltd. Birla Other payable . .738 1.18.500 - .85.43. 1. B.071 34. .K. Rs. held by the Company at face value being bonus shares remaining unclaimed. G.Syt.Others Other receivable .00.Century Textiles & Industries Ltd.ANNUAL REPORT & ACCOUNTS SCHEDULE 17 (Contd. Signatures to Schedules 1 to 17 B. 1. . K.764 16.Mangalam Cement Ltd.Jay Shree Tea & Industries Ltd.59.Century Textiles & Industries Ltd.000 2008-2009 Related Parties referred to in I (b) I (c) above I (d) above above Rs. .335 - .000 3. K.00.03. 13390 (S. BAJORIA P.Bulland Buildmart Pvt.K. .Century Enka Ltd. 301112 E Chartered Accountants Kolkata. 2010 31st March.Century Enka Ltd.163 12. of the Company’s Assam Cotton Mills Unit were seized by the Excise Authorities and are presently not available with the Company. Transactions Particulars I (a) above Rs. BIRLA Chairman For Price Waterhouse Firm Registration No. PANDE AMITABHA GHOSH P. . Rs.400 4.974 284 13.29. Rs. 2010. . K.) II.94.PATODIA DEEPAK TANDON Secretary K. MAHESHWARI B.000 4. . .Mangalam Cement Ltd. 28th April.57. .57.10.Century Enka Ltd.50. Investment in Shares .65.91. 41.23.639 9. CHOKSEY G. 27 Certain records/ documents pertaining to production. 28 Previous year’s figures have been regrouped or rearranged where considered necessary. DEB) Whole-time Director S. MALLIK MANJUSHREE KHAITAN Directors 81 .Century Textiles & Industries Ltd.450 67.18.145 2. (v) Balance outstanding at year end Security deposit payable Loan receivable Directors’ Commission .600 2009-10 I (e) above Rs.Jay Shree Tea & Industries Ltd.

530 10 M.000 Nos. Tons] 15.729 * 9 33.000 M.T.44.707 (including 17.311 70 22.T. No.603 M.500 187 36. Tons per year Tons per day M. Tons M.763 * (excluding 76. Tons per year Not applicable 45.23.108 * 6.02. Tons [2008-2009: 41.T. (iii) Flaps Not applicable 15.485 (including 8. manufactured by contract manufacturer) SCHEDULE 18 (Note 22 on Schedule 17) INFORMATION PURSUANT TO THE PROVISIONS OF PARAGRAPHS 3.095 nos.00.231 * 6.25.16. M.82 CAPACITY Class of goods manufactured Licensed 2009-2010 (Same as 2008-2009 except otherwise indicated) Unit 2009-2010 Not Applicable Not Applicable M. Tons per year 3. manufactured by contract manufacturer) 26.516 nos. Tons per year M.T.916 (including 60.T.491 nos.000 Nos.500 6.000 Nos. manufactured by contract manufacturer) 24.18.21.600 M.09.239 * 2.000 5.000 M.24. Tons per year M. Tons per year M.615 * 39. manufactured by contract manufacturer) 20.898 44.000 M. Tons per year M.26.14.78.50.21.971 * 8 37.T.681 nos.252 (including 16. M.803 * 2. Tons per month 3.879 * 7.98.000 Nos. M. 13. per year [2008-2009 37.T. Tons per year M. 57.692 Carbon-di-Sulphide Cellophane Paper (Transparent Cellulose Film) (iii) (iv) (v) (vi) Sodium Sulphate Sodium Sulphide Sulphuric Acid Viscose Filament Rayon Yarn Cast Iron Spun Pipes & Pipe Fittings Tyres (i) 1. Tons per year M.589 * (i) (ii) 150 5.12. 1956 (1) Particulars in respect of goods manufactured : Manufacturing Section Cement At Basantnagar At Sedam Rayon & Transparent Paper Spun Pipes & Foundries Tyre . M.207 4.11. Tons per year 3.768 2. M. 41. M.T.307 * 7.500 45. Tons per year M. per year No.000 M.50.610 MT produced during trial run) 4.935 nos.19.600 M. 43. per year No. Tons per year M.491 (including 3.00. 4C AND 4D OF PART II OF SCHEDULE VI TO THE COMPANIES ACT.T.833 * Installed (a) 2009-2010 (Same as 2008-2009 except otherwise indicated) PRODUCTION (Meant for Sale) 2008-2009 Cement Cement 15. manufactured by contract manufacturer) 13. per year] (ii) Tubes Not applicable 29.10.

Licence. Tons per year M 3 per year M.O.T.200 M.T.000 M 3 per year 20.T.205 8. Tons per year 16.453 * 11.200 18. Tons per year 9. 2009-10 83 .567 5. Tons per year M. Tons per year 6.831 * 2. 11. Furthermore. M. Tons per year M. the installed capacity of the Transparent Paper Section is also as per Company’s application to the Government of India for C.686 5.882 * Chemicals * Production is inclusive of internal consumption.18.) : Manufacturing Section Hindustan Heavy (ii) Liquid Chlorine 5. Tons per year M.B.750 M.373 * 19. Tons per year (i) Caustic Soda Lye (100%) 15.T.500 M.139 * 8.336 * 19.000 M.24.663 * 4.045 6.20. Tons per year 12. Tons per year 3.700 16.400 M.T.120 M. M3 M. ANNUAL REPORT & ACCOUNTS (a) Installed capacities have been certified by the Company’s Technical Experts.000 M.959 * 3. M. Tons per year M. Tons per year M.T. (iii) Sodium Hypochlorite (iv) Hydrochloric Acid (100%) (v) Ferric Alum (including Alum Liquor) (vi) Sulphuric Acid (including Battery Grade) (vii) Purified Hydrogen Gas 30. M.SCHEDULE 18 (Continued) PRODUCTION CAPACITY Licensed Class of goods manufactured (Same as 2008-2009 except otherwise indicated) (Same as 2008-2009 except otherwise indicated) 2009-2010 2009-2010 Unit 2009-2010 Installed (a) 2008-2009 (Meant for Sale) (1) Particulars in respect of goods manufactured (Contd.53.061 * 7.410 M.737 * 4.200 3.

923 1.09.129 1.060 MT) 39.03.16.166 M.05.40.342 M.40.70.36.864 20 1.49.03.48.03.460 2.79.39.66.880 1. 2008-2009 Quantity Sales Value Rs.431 M.303 68. Rs. 2 464 12.567 1.12.967 329 70.059 13. Cement - At Basantnagar At Sedam Carbon-di-Sulphide Cellophane Paper (Transparent Cellulose Film) Sodium Sulphate Sodium Sulphide Sulphuric Acid Viscose Filament Rayon Yarn .09.T.58.09.52.858 M.639 MT) 8.374 17.87.657 MT) 6.94.054 M.64.54.624 83.2008 Stock as at 31.71.426 6.98.19.T.82. 4.203 (Excluding internal consumption of 2.2010 Quantity Value Rs.T.T.23.761 5.918 M.809 9.02.89.901 308 6.04.22. 22 1.92.802 MT) 333 6.228 13.19.729 2009-2010 Quantity Value Rs.50.58.621 7.748 MT) 1.23.87.22.88.28.836 6.79. 353 6.06. 46.37.072 SCHEDULE 18 (Continued) (2) Particulars in respect of stocks and sales of goods manufactured/ traded : Stock as at 31.87.832 (Excluding internal consumption of 4 MT) 9 29.31.T.07.84 Stock as at 31.941 (Excluding internal consumption of 25.18.77.93.996 216 4.085 M.830 MT) 14.627 6.2009 Stock as at 01.734 MT) 2.174 26.229 (Excluding internal consumption of 1 MT) 6.91.175 129 27.604 MT and sale during trial run of 64.24.620 (Excluding internal consumption of 2.T.34.18.91.03.11.076 37.255 1. 445 7.93.10.964 186 46.59.252 358 4.860 (Excluding internal consumption of 1 MT) 6.598 (Excluding internal consumption of 14.27.048 (Excluding internal consumption of 8.042 17.15. 189 38.24.T.603 (Excluding internal consumption of 2.383 35.721 6.694 (Excluding internal consumption of 8.221 384 7. 9.801 15.28. 5.550 7.487 (Excluding internal consumption of 745 MT) 40.83.74.50.67.43.197 1 M.52.058 7.030 2.33.T.359 4. 3.76.868 (Excluding internal consumption of 10 MT) 10 24.09.2009 Quantity Value Unit Quantity Value Rs.175 226 13.25.17.398 45.

03. 59. ANNUAL REPORT & ACCOUNTS Liquid Chlorine M.09. 8.91.673 3.24.60.955 3.33.T.962) (Rs.SCHEDULE 18 (Continued) Stock as at 31.768 nos.825 25.878 1. 3.13.T.70.28.739 MT) 30.769 23.602 13.410 20.206 [Including [Including [Including [Including [Including 11.86.977 M. 43.29.528 Caustic Soda Lye (100%) M.49.913 (Excluding internal consumption of 56 MT) 34 57. (2) Particulars in respect of stocks and sales of goods manufactured/ traded : (Contd.74.42. 6.082 3.461 22.39.266 No.03.51.96.55.12.87.93.688 1.44.457 26 4.06. Cast Iron Spun Pipes & Pipe Fittings M. 55.55.2009 Stock as at 01.03.306 4.03.636 33. 3.81.86.894 17.2008 Stock as at 31.757 nos.813 6.12.211) (Rs.45.T.095) (Rs.431 5.738 1.34.24.73.76.36.22.848 48 5.85.13.626 - Market Fittings Pcs.63.357 692 3.45. 36 1.716 49.947 Sodium Hypochlorite 69 1.102 75 17.78.781 nos.55.43.18.57.56.387 39.253 1.357 162 35.23.52.406) Purchased] Purchased] Purchased] on sale of on sale of Purchased] Purchased] No.1.98.257 (Excluding internal consumption of 6.10.19. 81.760 (Excluding internal consumption of 59 MT) 2.943 1.70.153 1.046 3.228 nos.597) (Rs.193 18.12.951 854 3.826 (Excluding internal consumption of 6.382 1.89.70.75. Tubes & Flaps (Set) purchased Tyres Tubes 1.065) (Rs.503 2.120 2.657 nos.374 11.084 5.41.29.319 37.2010 Quantity Value Rs.60.813 6.79.) Stock as at 31.19.561 pcs.184 24 37.58.63.21. (Rs.738 nos.92. Rs.21.696 41.98.89.196 [Including [Including [Including [Including [Including 2. 2. 2009-2010 Quantity Value Rs.69.26.54.95.86. Flaps 1.14.29. Tyres.405 2.624 2.03.38. 64.57.057 1.335 6.58.099) (Rs.082 16. 42.068 6.703 9. (Rs.796 1.894 3.00.848 [Excluding internal consumption of 5.91. 2.476) (Rs.275 4.06.590 38 1.270 nos.375) (Rs.04.24.2009 Quantity Value Unit Quantity Value Rs.45.58.701 2.169 145 15.582 1.950 58.23.19.42.389 57 12.54.45.75.T.97.] 1.485 nos.749 nos.60.34.5.010 9.35.53.51.40.06.333 30.80. 2008-2009 Quantity Sales Value Rs.57. No.21.19.17.03.113 nos.41.973) Purchased] on sale of Purchased] Purchased] on sale of Purchased] Purchased] 316 60.309 2009-10 85 .288 8.819 MT) 4.524 40.31.41.98.4.19.12.00.490 No.

068 (Excluding internal consumption of 285 MT) 2008-2009 Quantity Value Rs. Rs.92.903 43.33.68.2010 Stock as at 01.696 18. Hydrochloric Acid (100%) Ferric Alum (including Alum Liquor) Sulphuric Acid 4.95.229 1.769 M.67.51.T.985 (Excluding internal consumption of 1.785 .40.90.813 159 4. 2.26.22.2009 Value Quantity Value Unit Quantity Value Quantity Rs.95.905 7.45.44.044 78 (Excluding internal consumption of 58 MT) 5.20.96.337 2.089 M.03.63.783 7.70.22.T.77.2009 Stock as at 31.717 7.06.84.26.84.92.915 95.) Stock as at 31.18.32.52.77.596 M.04.140 (Excluding internal consumption of 1.029 17.03.373 5. 136 9.738 20 40.50.25.75. 3.093 MT) M3 6.587 78.683 1.394 142 4.140 18.86 Sales 2009-2010 Quantity Value Rs.39.266 1.690 (Excluding internal consumption of 435 M ) 3 SCHEDULE 18 (Continued) (2) Particulars in respect of stocks and sales of goods manufactured/ traded : (Contd.01.682 (Excluding internal consumption of 510 M3) 5.07.2008 Stock as at 31. (Excluding internal consumption of 322 MT) 75 1.69.86.862 42.03.816 5.T.54.73.17.04.31.55.897 90.110 MT) 1.980 50. 270 14. Rs.304 8.145 2.50.668 58 71.05.44.744 3.569 (including Battery Grade) Purified Hydrogen Gas Others 95.

12.266 other chemicals/ Sundries [2008-09 .252 7.44.28.40.80.85. Limestone Bauxite/ Laterite/ Hematite Gypsum Fly Ash Limestone Bauxite/ Laterite/ Hematite Gypsum Fly Ash M.796)].367) of Carbon Black [2008-09 .531 50.294 3.81.83.T.616 # # # # 10.26.06.968 MT (Rs.02. 15.911 3.413 53.76.852 # 21.88. M.23.26.86.52.38.27.23.37.860 MT (Rs. @ After considering related adjustment for sales value referred to in Schedule 14 of Accounts. M.26.21.093 # # # # Spun Pipes & Foundries M.76.T.751) of Gypsum (2008-09-Nil).364 240 17.031 39.316 34.010 188 6.09.660 48.21.94.821 # # # # 5.93.299 55.041)].896 6.281 71.702 # 1.76.77.771 # 5.10.78.89.T.34.21.607 10.10.67.127 149 15.060 19.T.ANNUAL REPORT & ACCOUNTS SCHEDULE 18 (Continued) (3) Consumption of Raw Materials : Manufacturing Section Cement At Basantnagar Class of Materials Unit 2009-2010 Quantity Value Rs.T.40 MT (Rs. M.299 15.489 6.63. - 2.T.576] consumed during the trial run period relating to Cement expansion and Green field Tyre Projects at Company’s Vasavadatta Cement Unit and Birla Tyres unit.T.897 16. M.740 3.61. 10.50.812 57.6.14 MT (Rs.05.495 2.863) of Fabric [2008-09 .786 38.91.28.46.966 47.11.49.522 MT (Rs.T.93.518 48.438 50.T.06. M.539) of Natural Rubber [2008-09 .T.04.97.24.60.65.979 35.000 1.40.26.78.69.T.65.222 2008-2009 Quantity 2009-10 Value @ Rs.576 9.81.61 MT (Rs. M.29.881 36.812 7.52.419 # 3.406 48.27.91.302 3.T.19.993 # 13.T.29.30. M. M.54.T.245)]. M.70.408 Hindusthan Heavy Chemicals Excludes 1.993 2.96.00.50. M. M.59.55.43.T.65.054 MT (Rs.47. M.68.802 2. M.T. M.76.03.147 23.08.92.T.46.73.T.62.T.177 9.T.06. M.425 13.01.327 14.500 MT (Rs.15.023 3.06.48.96.90.20.328) and Rs. 39 MT (Rs.913 24.400 260 6.T.41.31.221 # # # # 8.82.60.531 4. # 87 .53.968 11.2.528 208 267 714 35 Tyre M.961 23.51.21. 5 MT (Rs.72. 88 MT (Rs. M.378 29.T.46.21.020 1.252 At Sedam Rayon & Transparent Paper Wood Pulp Caustic Soda Sulphur Sundries Pig Iron C I Scrap Limestone Hard Coke Ferro Silicon Sundries Natural Rubber Synthetic Rubber Carbon Black Fabric Other Chemicals and Sundries Salt Hydrated Lime (90%) Sulphur Sundries M.510 2.304) of Limestone [2008-09 .1.19.20.76.57.24. 127 MT (Rs.475 # 2.97.31.388 7.50.456 39.046 3.219 # M.22. 21.46.79.58.69.395 21.724 # 1.939)].931 3.485 13. M.11.968 5.574 # 23.81.50.71.977 46.62.72.1.725 # 3.33.723 23.359 52.60.65.206 1. 2.490) of Synthetic Rubber [2008-09 .94.63.86.00. M.17. 38.257 # 11.55.337 1.36.464) of Bauxite/Laterite [2008-09 .1.91.68.93.52.137)].329 # 23.000 93.65.29.T.95. 76.68 MT (Rs.02.Rs. 11.51.23.59.002 19.186 5.27.49.74.

.57.58. Partner Membership No.44.84 19.72.961 (2008-2009 .875 Interim Signatures to Schedule 18 B.00 8.323 (6) Expenditure in Foreign Currency during the year (on payment basis) : Technical Service Fees 6.060 100.38.2.PATODIA DEEPAK TANDON Secretary K.63.33.41.40.82.O.00. 2.71.30. BIRLA Dividend 2.75.94.589 79.33.04.38.58.64.K.69.875 Interim 2008-2009 2007-2008 1 70.022 5. 13390 (S.070 77. Spare Parts & Raw Materials @ Stores.39.83.Realisation basis] 3.37. 6.99. [2008-2009 . 3.84.19.094 1. 4.4.471 20.313 1.571 10.757 2.Rs.65.01.00 @ excluding Rs. % Imported 4.Rs.017)] raw materials consumed during trial run relating to Cement expansion and Green field Tyre project at Company’s Vasavadatta Cement Unit and Birla Tyres Unit.279 1.63.41.99.00 8.11. 301112 E Chartered Accountants Kolkata.264 * 100. CHOKSEY G. % Rs.9.26. B.653 Interest 36.020 (8) Remittances in Foreign Currency on account of Dividend : Number of non-resident Number of Financial Year On Account of Shareholders Shares held 2009-2010 2008-2009 2 73.70.62. Spare Parts & Components # Components # Rs. 21.49.80.61.29.219 Chairman For Price Waterhouse Firm Registration No.482 * 100.654 1.54. 3.23.610 # 98. MALLIK MANJUSHREE KHAITAN Directors 88 .58.Rs.408 * 100. # excluding Rs.507 7.41.88.25 Indigenous 18.44.875 Final 2009-2010 1 70.16.24.062 (imported .95.10. MAHESHWARI B.34. G.77.045.01.14.F Basis) during the year : Raw Materials Components and Spare Parts (including Stores) Capital Goods 2009-2010 Rs. BAJORIA P. indigenous .51. DEB) Whole-time Director S.58.926 2008-2009 Rs.75.044).577 Brokerage and Discount 11.6. 2010.13.25.44.Rs.70. Spare Parts and Components consumed during the year : 2009-2010 2008-2009 Raw Materials @ Stores.41. PANDE AMITABHA GHOSH P.85.61.338 22.023 2.Rs. K.051 2.67.21.74.36.64.33.19.017 34.SCHEDULE 18 (Continued) (4) Value of Imported and Indigenous Raw Materials. Stores.40 9.044 (imported .810 1.97.84.19. indigenous .07 3.94.88.91.219 3.40.Rs.72.00 16.43. K.79.16 8. B.75 23.64.239 1.41.74. K.45.) (7) Earnings in Foreign Exchange during the year : Exports (excluding export to Nepal and Bhutan) of goods [F. % Rs.79. P. 28th April.77.000.00.509 27.17.44.165) consumed during trial run period relating to cement expansion project at Company’s Vasavadatta Cement Unit.93 12.49. (5) Value of Imports (C.150 Miscellaneous (Travelling etc.03.K.60 8.04.93.81.14.I.42.138 2. * After considering related adjustment for sale value referred to in Schedule 14 & 15 of Accounts.62.431 # 97.848 3. % Rs.27.83.875 Final 2008-2009 1 70.87.

265) 61.21.09.56.60.46.43.54.27.26.28.290 4.53.844) (19.318) 2009-10 For the year ended 31st March.05.09.70.174) (15.41.27.71.280) (2.75.479 3.92.160) (2.51.352 (14.824 (42.383) (46.49.755) 2.00.43.749) 5.48.89.00.22.06.95.59.099) (76.20.70.28.22.185) 3.989 10.72.09.61.767) 7.00.472 (12.60.70.413) (2.809) paid/payable on loans Interest received/receivable on loans etc.14.811) 1.43.448 1.70.59. 2010 Rs.deposits etc. Provision for Doubtful debts Debts / Advances / Deposits written off Long Term Investments (other than trade) written off Liabilities no longer required written back Unrealised(Gain)/ Loss on derivative contracts (net) [2009-10 : after considering reversal of excess liability] Unrealised (Gain)/ Loss on foreign currency fluctuation (net) Operating profit before working capital changes Adjustments for : Inventories Trade and other receivables Trade Payables Cash generated from operations Direct taxes paid (net of refunds) Net cash from operating activities B.23.11.067 (3.857 (3.811) 2.34.000) 25.58.07.03.644 4.30.319) (4.479 (12.ANNUAL REPORT & ACCOUNTS CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH. A.29.62.635 (9.89.07.09.63.60.000 paid for acquisition of subsidiary} Purchase of Current Investments (other than trade) Proceeds from sale of Current Investments (other than trade) Proceeds from sale/redemption of Long Term Investments (other than trade) Income from Long Term Investments (other than trade) Dividend from Current Investments (other than trade) Loans given Realisation of Loans given Interest received on loans.74.87.51.946) 89 .35.28.00.46.27.354 13.65.55.60.67.00.673) 42.000 (4.55.917 (23.576 6.00.43.91.06.50.17.52.70.237 (10.66.88.27.17.08.400 4.689) 1.234 (1.18.28.43.50.205 (2.00.72.82.1.07.03.404 (88. Net cash used in investing activities 4.051 1.17.53.858) (36. Cash Flow from Operating Activities Net Profit Before Tax Adjustments for: Depreciation (Profit)/ loss on Fixed Assets sold / discarded (net) Profit on sale of Long Term Investments (other than trade) Profit on sale of Current Investments (other than trade) Income from Long Term Investments (other than trade) Dividend from Current Investments (other than trade) Borrowing Cost [including interest Rs.51.523) (14.52.18.35.26.262) 5.11.64.12.852) 2.72.37.43.383 46.35.000 49.05.250) (4.000) (11.85.36.80.000) 1.160) (1.15.04.844 19.60.609 (2. 2009 Rs.363 (1.089 7.820 (84.64.56.11.66.20.54.23.31.18. 2010 For the year ended 31st March.58.03.917) 1.48.74.11.293 (83.33.04.438 26.394) 11.46.89.1.26.69.000 59. Cash Flow from Investing Activities Purchase of fixed assets Proceeds from sale of fixed assets Trade investment in Joint Venture Purchase of Long Term Investment (other than trade) {2008-09: including Rs.02.43.25.811 (44.12.130 58.85.00.13.626 (Previous year Rs.863) 10.80. 4.04.

21.09. 36. 2009 Rs.52. 83. 11.K.830) (1.779) (81.447 31.39.188) (2.13. CHOKSEY G. 2010 Rs. P.K.843 (1. 2009 Rs.56.42.037) (41.66.459 78.44.19.29.37.720) 6. 2009 has been adjusted with the opening cradit balance in Profit & Loss Account of Transferee Company.15.38.36.70.52.13.10. all assets and liabilities of the Transferor Company immediately preceding the Appointed Date have been incorporated in the books of account of Transferee Company at their respective book values on the basis of audited accounts of the Transferor Company.48. 301112 E Chartered Accountants Kolkata.61.1.05.12.180 (2. K.507 69.83.58.74.594 Notes : The above cash flow statement has been prepared under the Indirect Method as set out in the Accounting Standard . MALLIK MANJUSHREE KHAITAN Directors 90 . Also refer Note 2 on Schedule 17 to Accounts.82.83.45.016 1.55.45.25.PATODIA DEEPAK TANDON Secretary K. BIRLA 3 Cash and Cash Equivalents comprise : Cash in Hand With Scheduled Banks on Current Account Unpaid Dividend Account Term Deposits Account With Post Office Savings Bank Account This is the Cash Flow Statement referred to in our report of even date.79.54.41.277 B.040 (9. DEB) Whole-time Director S. 2008 to 31st March. Cash Flow from Financing Activities Proceeds from Long-term borrowings Short-term borrowings Unclaimed debentures paid/transferred Repayment of Long-term borrowings Short-term borrowings Increase/(Decrease) in cash credit and overdrafts from banks Borrowing Cost [including interest Rs. Bulland Buildmart Private Limited (Transferor Company) has been amalgamated with Kesoram Industries Limited (Tansferee Company) with retrospective effect from 1st October 2008 (Appointed Date).27. 2010.098 28.25. In accordance with the Scheme.81. 31st March. 13390 (S.3 on Cash Flow Statements. K.31.50.58.183 1.54.52. 31st March.85.44. 2008 has been credited to Capital Reserve of the Transferee Company in 2009-10 and the results of the Transferor Company for the period 1st October.61.11.277 For the year ended 31st March.11.324) 10.71. G.516 (Previous year Rs.768) (60.57.587 23.188 5.000 56.594 73.85.73.CASH FLOW STATEMENT (Contd.71.85.761) 6.) For the year ended 31st March.88. 28th April.88.561) (68.08. MAHESHWARI B.31.19.05.96. K.748 56.827) paid Dividends Paid during the year (including taxes thereon) Net Cash from financing activities Net Increase in Cash and Cash Equivalents Opening Cash and Cash Equivalents Cash and Cash equivalents consequent to amalgamation (Note 2) Closing Cash and Cash Equivalents (Note 3) 1 2 14. C.80. B.71.572 16.465) (29.31.02. Partner Membership No.292 54.333 56.594 Chairman For Price Waterhouse Firm Registration No. PANDE AMITABHA GHOSH P.39. The net assets as per the books of account of the Tranferor Company after cancellation of investment of the Transferee Company in Tranferor Company as on 30th September.31.188 5.261 40.45. BAJORIA P.61.52.46.76.53.25.1.67.000 80.49.66. 2010 Rs.022 67.77.935 80. Pursuant to scheme of Amalgamation (the’Scheme’) sanctioned by the High Court at Calcutta in July 2009.58.16.

31.106 Nil Nil 4.38.36.02.00 Artificial Filament Viscose Rayon Yarn 401120.337 1.32.57. 4.943 23.994 1.ANNUAL REPORT & ACCOUNTS Information pursuant to Part IV of Schedule VI to the Companies Act. Product Description (ii) Item Code No. 2010 (Amount in Rs.72.44.54.02 Automobile Tubes (for bus & lorry) 401290.153 1.04 Automobile Flaps (for bus & lorry) 91 .84. services of the Company (as per monetary terms) (i) Item Code No.47.214 4. 324101000.21.75.00 Automobile Tyres (for bus & lorry) 401310.416 1.85. Registration Details Registration Number State Code Balance Sheet Date Capital raised during the year Public Issue Rights Issue Bonus Issue Private Placement Position of mobilisation and deployment of funds Total Liabilities [excluding shareholders funds and including Deferred tax liability (Net) Rs.270 47.151 4.036 3. Thousands) Nil Nil Nil Nil 2. Performance of the Company Turnover (including other income) Total Expenditure Profit before Tax Profit after Tax Earnings Per Share (Rs.29.5 5. Product Description (v) Item Code No.35. Product Description (iv) Item Code No.539 5.57.84.54.88 22.37.741 5.00 Portland Cement 540331.5 32. Product Description (iii) Item Code No. 3.86.46.374 51.383 thousands] Total Assets (excluding Deferred tax assets) Sources of Funds Paid up Capital Reserves & Surplus Secured Loan Unsecured Loan Application of Funds Net Fixed Assets Investments Current Assets (net of current liabilities and provisions Rs.32.49. 1956: Balance Sheet abstract and Company’s General Business Profile 1. Product Description 2009-10 3429 21 31st March.73.14.) Interim Dividend Rate (%) [on Ordinary Shares] Dividend Rate (%) [on Ordinary Shares] Generic Names of principal products.170 thousands) Miscellaneous Expenditure Accumulated Losses 4.

Notes

92

KESORAM INDUSTRIES LIMITED
Regd. Office: 8th Floor, 9/1, R.N. Mukherjee Road, Kolkata - 700 001 ATTENDANCE SLIP (TO BE SIGNED AND HANDED OVER AT THE ENTRANCE OF THE MEETING HALL) I/We hereby record my / our presence at the ANNUAL GENERAL MEETING of the above named Company at KALA KUNJ, 48, Shakespeare Sarani, Kolkata - 700 017 at 11.00 a.m. on Thursday, the 1st July, 2010. NAME(S) OF THE MEMBER (S) Registered Folio No. : DP-ID No : CI-ID No. :

Name of Proxy (in block letter) (To be filled in if the Proxy attends instead of the Member)

Member's / Proxy's Signature Note: The copy of the Annual Report may please be brought to the Meeting Hall.

KESORAM INDUSTRIES LIMITED
Regd. Office: 8th Floor, 9/1, R.N. Mukherjee Road, Kolkata - 700 001 PROXY FORM Registered Folio No. . .............................................................. DP-ID No. .................................................. Client ID No. ...................... I/We .......................................................................................................................................................................................................... of............................................................................................................................................................................................................... being a member / members of the above named Company, hereby appoint .......................................................................................... .............................................................................. of ............................................................................................................................... or failing him ............................................................................................................................................................................................ of............................................................................................................................................................................................................... as my / our proxy to attend and vote for me / us on my / our behalf at the ANNUAL GENERAL MEETING of the Company to be held at 11.00 a.m. on Thursday 1st July, 2010 and at any adjournment thereof. As WITNESS my / our hand(s) this ...................................................................day of ................................................................2010 Signed ............................................................................................................. Stamp 15 .......................................................................
Paise Revenue

Note : Proxy Form duly completed must reach the Company's Registered Office not less than 48 hours before the time for holding the Meeting.

ANNUAL REPORT & ACCOUNTS

2009-10

IRLAG

R

OU

POF

C

OM
PAN

B

B K BIRLA GROUP OF COMPANIES
The Group Logo - As represented by the 21st Century Atlas
Atlas,bearer of the heavens is synonymous with vast, all encompassing strength and is used to symbolise the Group’s own collective strength. It reflects the combined qualities of astute and dynamic management while emphasising the Group’s tenacity, consistency, reliability and overall leadership.

Atlas, the Titan - Collective Strength

The Sun, as a source of infinite energy and inspiration, is used here in conjunction with the Atlas head to represent the vitality and powerful presence of the Group - both in its industrial prowess and its financial, technological and intellectual skills.

The Sun - Enlightenment and Growth

Each of the latitudes around the Titan represent various sections - industrial, agricultural, financial and other activities of the Group. As with the infinite variety of the world, so is the strength of the Group, made up of its diverse activities.

The Earth Segments - Diversified Activities

The Group’s global presence and vision is reflected in the entirety of the Earth’s sphere.

The Globe - Global Vision

The strength of the entire edifice depends upon the strength of the foundation embedded in the bedrock, represented here by the Group Name.

The Base - Solid Foundations

Seen in its entirety, each of the elements -Atlas, the Sun, the Earth divisions, the Globe and the Base, together sum up a well conceptualised and balanced conglomerate.

The Symmetry - The Resilience, Versatility, and Stability

Strong Foundation

Sustained Growth

IE

S

BK

Proven Leadership

kesocorp.website : www.com .