Vice Chairman & Managing Director’s Message
Board of Directors
Management Discussion and Analysis
Social Responsibility & Community Service
Corporate Governance Report
Balance Sheet and Profit & Loss Account
Dear Fellow Shareholders, Indian economy is growing at a rapid pace having recorded a GDP growth of around 8.5% for the year 2010-11. It augurs well for the Indian industry. Inflation remains a cause of worry. Commodity and crude prices increased steeply during the year which had spiraling affect on the raw material costs across the industry. Recent Government policy initiatives have led to increase in the interest costs. As a result, industrial production slowed down to some extent in the second half of the year. The automotive sector has performed well during the year with an overall growth of 27%. Production of Truck/Bus increased by 38% and that of Passenger Car by 28%. This growth rate has resulted in robust demand for tyres. It is a matter of satisfaction that JK Tyre has recorded 33% growth in its Sales Turnover. Profitability was affected due to high raw material costs which had to be absorbed by the Company, as the tyre prices have not kept pace which such steep cost increase. JK Tornel, Mexico, a wholly owned subsidiary of your Company also recorded 29% growth in sales and has contributed to the Net Profit of the Company. JK Tyre, the pioneer in radials, continues to maintain its leadership in the Truck/Bus radial segment. Truck radialisation in India is catching up fast and is expected to accelerate further in the years ahead. Your Company is making large investments to further enhance its Truck/Car radial capacities. Research & Technology are the main stay of your Company’s leadership. The Company has made substantial investment in that regard, to further cement its leadership in the Tyre industry. I would like to thank all our stakeholders i.e. channel partners, suppliers, financial institutions, Banks and above all our people for their whole hearted support in our endeavours. With your support, dear Shareholders, JK Tyre will continue to make strides and achieve still greater heights in the times ahead. Best wishes,
Hari Shankar Singhania
268 Crores recording an increase of 33% over the previous year. These projects are progressing well and are expected to be completed on schedule.
Vice Chairman & Managing Director
. Your Company is implementing ambitious expansion projects including setting up a green site plant near Chennai. on account of high crude prices. The year witnessed an unprecedented increase in prices of raw materials. With your continuous support. Automotive industry has been growing at an impressive pace. It is satisfying that this significant achievement is the first in the entire Indian tyre industry. including JK Tornel – Mexico. Best wishes. I am confident that JK Tyre would fulfill its growth aspirations and continue to play its humble role in industrialisation of India. The turnover of the Company was an all time high at ` 5.Dear Shareholders. The Company achieved yet another milestone. for all its manufacturing locations. Natural Rubber prices almost doubled during the year. thus propelling the growth of the Indian tyre industry. now.421 Crores. due to inadequate supply in face of rising demand. The completion of these projects will further strengthen JK Tyre’s leadership position in the markets. The increase in selling prices could not cover the high cost increases witnessed during the year. was ` 6. JK Tyre. People are our most precious assets and the Team JK Tyre is committed to rise to every challenge. This reaffirms our Commitment to Quality in our endeavour to deliver world-class products and services. Prices of petroleum based raw materials also showed an upward trend. The consolidated turnover. is known as “JK Racing Asia Series”. the leader in Motorsport has taken yet another major step by acquiring the title rights of renowned world series ‘Formula BMW Pacific’ which. in one go. to meet the growing aspiration of the customers both in India and abroad. when it was awarded “2010 TPM Excellence Award” by JIPM (Japan Institute of Plant Maintenance).
jktyre. Bahadur Shah Zafar Marg.BOARD OF DIRECTORS
Hari Shankar Singhania
Dr. Rajasthan Banmore. Karnataka Mysore Plant III. Katra Kalpataru Tripathy Swaroop Chand Sethi
Bakul Jain Om Prakash Khaitan Vikrampati Singhania
President & Director
AUDITORS Lodha & Co. Managing Director
Arun K. Council House Street. Karnataka Mysore Plant II. Indian Bank Punjab National Bank State Bank of Bikaner & Jaipur State Bank of India State Bank of Mysore Syndicate Bank The Federal Bank Ltd. Kankroli. Madhya Pradesh Mysore Plant I. New Delhi . Karnataka REGISTERED OFFICE 7.700 001 ADMINISTRATIVE OFFICE 3. Kolkata .com
. Chartered Accountants BANKERS Bank of India Corporation Bank IDBI Bank Ltd. Raghupati Singhania
Vice Chairman & Managing Director
Bharat Hari Singhania
Arvind Singh Mewar Ashok U.110 002 VICE PRESIDENT (LEGAL) & COMPANY SECRETARY P K Rustagi
Visit us at www. UCO Bank
CELEBRATIONS LALA LAKSHMIPAT SINGAHNIA
Your Company observed the year as Birth Centenary Year of Late Lala Lakshmipat Singhania. delivered a Centenary Lecture in his honour. reaching out to those sections of society who are less privileged. healthcare. The noted economist. One of the major initiatives taken was to set-up ‘JK Lakshmipat University’ near Jaipur. at the Rashtrapati Bhawan.K. During the year long celebrations. Nouriel Roubini of New York University. Organisation. who was a great visionary and a Key Architect of J. Dr. which is expected to start with the admission of first batch of students in the year 2011 itself. pursuing the ideal of “Caring for the Society”. Pratibha Devisingh Patil. Smt. in the vital areas of education. It was only befitting that the Nation honoured him by release of a Postage Stamp in his memory. which will be dedicated to both Management as well as Technological studies. Your Company has also participated in this project. Raghupati Singhania distributing teaching aids to students of a school for under privileged children
. in the hands of Hon'ble President of India.
At a Centenary function held at JK Tyre Plant in Mysore. at a well attended function in New Delhi. Prof. adult literacy. JK Tyre organised various programmes. sports as also for environmental protection.
. Nouriel Roubini delivering the Centenary Lecture in Delhi
Hari Shankar Singhania with Hon’ble President of India Smt. Pratibha Devisingh Patil at Postage Stamp release ceremony
Dr. Raghupati Singhania at the Centenary Celebration function at JK Tyre Plant.
With the Indian economy growing at a healthy pace and automobile industry making rapid strides. APPROPRIATIONS The amount available for appropriation. at 3177 Million Pesos (` 1152 Crores). Several measures to improve all round operations and cost efficiencies were undertaken. a wholly owned subsidiary of the Company also recorded a growth of 29% in turnover. the plant heads with Dr Mukhopadhyay. The prices of natural rubber almost doubled during the year. Bajoria. Besides maintaining ISO/TS-16949 Quality
(` Crores) 80. Operating profit for the year was ` 277 Crores and Profit Before Tax was ` 92 Crores.00 Crores).32 2. in our endeavours to produce world-class products and provide pro-active service to our valued customers. the revision in selling prices could not keep pace with the abnormal increases in costs. This more than exemplifies our commitment to excellence. There was an unprecedented increase in the prices of natural rubber and other key raw materials. This along with increase in other input costs impacted the profitability of the Company. President & Director of JK Tyre. Shinde. for all its manufacturing locations.74 143. Automobile Sales across the sectors continued to grow robustly resulting in higher tyre demand. Spiraling increase in the prices of raw material and their availability is a matter of concern for the tyre industry. The dividend outgo will be ` 14. It is indeed a matter of great pride that your Company has been awarded “2010 TPM Excellence Award” by JIPM (Japan Institute of Plant Maintenance) in one go.44
A.06 Crores.Mexico. Despite severe cost pressures.e.44 Crores. Director (R&D) accompanied by Arun K.
. However. including surplus from previous year and debenture redemption reserve no longer required is ` 143.00 0. Japan
JK Tornel .32 Crores (inclusive of dividend tax of ` 2. 30 %) on the Equity Share Capital of ` 41. alongwith Mr Yoshio Egami at TPM Excellence Award Ceremony at Kyoto.DIRECTOR’S REPORT
TO THE MEMBERS The Directors have pleasure in presenting the Annual Report and Audited Accounts of the Company for the year ended 31st March 2011. in face of the slow recovery in South & North American markets.R. OPERATIONS Turnover for the year under review was ` 5268 Crores registering a growth of 33% over the previous year.00 48.00 per Equity Share of ` 10 each (i. outside Japan. The Directors propose this to be appropriated as under: General Reserve Debenture Redemption Reserve Dividend Corporate Dividend Tax Surplus carried to Balance Sheet QUALITY – A CREED AT JK TYRE “Commitment to Excellence” is one of the core values of your Company.K. operations contributed to the profitability of the Company. Shenoy and A Chatterjee. the demand of tyres is expected to increase sizably. U. DIVIDEND Your Directors are pleased to recommend dividend of ` 3. Your Company has undertaken several expansion projects to meet the rising demand for its tyres.38 12.
Ultra Large OTR Tyre of 12 ft height.TURNOVER ` CRS. This has reinforced our leadership in the OTR segment. to not only improve the visual environment. safety and environment.34 lac p.a. in a survey conducted by Indian Council for Market Research (ICMR) & 4P’s Magazine. JK TYRE – MARCHING AHEAD In face of the challenges in the year. J K Tyre has been ranked 75th amongst India’s 100 most valuable brands 2010. This has been delivered to BEML . thousands of trees are planted around our facilities. JK Tyre was selected as Super Brand for the years 2009-10 & 2010-11. Moreover.a. President of Mexico
. • • C apacity expansion of Passenger Car Radials by 5. i) Truck Radials As reported last year. but also to improve the quality of air around.
EXPANSION PROJECTS The Company has undertaken several expansion projects to meet the growing demand for its tyres.our prime
Dr. became fully operational. State-of-the-art Plant & Machinery which deliver high quality products are installed at all JK Tyre plants.
Concern for “Environment ” at JK Tyre has a larger connotation. Further. It has so far exported 1 million tyres to the global markets – testimony to the high quality of its tubeless TBRs. All our manufacturing facilities are non-pollutant. 1 Truck Bus Radial (TBR) manufacturer having crossed 4 million number mark. at Company’s Banmore Tyre Plant has been completed during the year. • J K Tyre continues to be India’s No. Last year. your Company made significant strides. J K Tyre produced 1st time ever in the country.
customer for these tyres. with zero-waste discharge to the public system. ii) Passenger Car Radials (PCR) Project for enhancing Car Radial capacity by 5. Raghupati Singhania with his excellency Felipe Calderon. while maintaining o p e r a t i o n a l i n t e g r i t y. JK Tyre ensures highest st a n dar ds of health. weighing 3.34 lac tyres p.6 Tons. the expansion project for further enhancing the capacity to 10 Lac tyres at the existing facility in Mysore is progressing as per schedule and the expanded capacity is expected to be available from the 2nd Quarter of the current year. Yo u r Company received OHSAS-18001 : 2007 for all its three plants at one go during the year.
Management System for Automotive Industry. continuous upgradation of existing equipment ensure manufacture of high quality tyres incorporating latest technologies.
is yet another initiative of the Company. with highest market share. JK TREAD Retreading services under the brand ‘JK Treads’ provides end-to-end solutions to the customers and act as an enabler to derive enhanced value from Company’s
• TPM Excellence Award Category . In addition to the wide network of dealers across the length and breadth of the country which ensure ready access to your Company’s products. or Shearography machine or On-level tyre testing system – first of its kind in the world.
The expansion of OTR capacity was completed during the year which has enabled the Company to enhance its OTR range.A. predictive technology. “JK Radial Tyre Care Centres” set up along the major national highways. is expected to go on stream during the current year. Likewise.iii)
Off The Road Tyres (OTR)
PRODUCTION LAC NOS. there is constant endeavour to improve the quality of services to our customers. Your Company has also entered into unique industry academia collaboration with IIT Madras and set up a Centre of Excellence for vehicle dynamics & tyre mechanics techniques.
research work with premium research and development centres such as HASETRI. to provide quality services under its fleet management programme. This f u r t h er re info rc ed the Company ’s leadership position in the OTR market. This facility slated to produce 25 Lac Car Radial tyres and 2 lac Truck / Bus Radials per annum. QUALITY CUSTOMER SERVICES
NEW GREEN SITE PROJECT Construction at the state-of-the-art radial tyre facility near Chennai commenced during the year. With the completion of the above projects. facilitate repair and servicing including alignment / balancing of Truck/Bus radial tyres. Further. providing pre and post sale services and technological assistance to the large fleet customers. QUALITY . a chain of 125 ‘Steel Wheels’ spread over 75 cities provide wide range of services and tyre care solutions to the passenger car tyre customers. the turnover of the Company is expected to increase significantly in the years ahead and reinforce JK Tyre’s standing in the TBR and Car radial segments. Financing for this project has already been tied up. Ultra Large OTR tyres and their supplies have commenced. tyre characteristics testing and other allied areas are carried out both at its in-house R&D Centres as well as through collaborative
At JK Tyre. Applied research and development work in the field of materials. It deploys high quality testing equipments and investigative tools like Uniformity testing machine for large tyres.TECHNOLOGY JK Tyre continues to be on the forefront of developing tyre technology in India. This quality service helps customers derive optimum value out of high quality JK Truck/Bus radials. JK Tyre Test Track at Chennai provides strategic testing solutions to the Company. 2010 • Asia's Best Employer Award For Excellence in Training
. first in India.
Your Company continues to be a significant global player and exports its tyres over 80 countries across 6 continents offering wide range of quality products. as an Additional Director pursuant to Section 260 of the Companies Act. liable to retire by rotation. CEO of . The Board of Directors appointed Shri Kalpataru Tripathy. EXPORT Your Company’s export at ` 418 Crores was on back of the revival in the demand outlook in the international markets from the lows of the previous year. Despite 449 slow down in the American markets. more so JK Truck / Bus radials. These races will be run as support races with some F1 events and will have a large viewership across the globe. During the year.commercial tyres. JK Tyre enjoys premium brand status in various international markets including the Americas & Australia. a reflection of increased consumer confidence for ‘Tornel’ tyres. The Board recommends appointment of Shri Tripathy as a Director.
Launch of JK Racing Asia Series. and being eligible offer themselves for re-appointment at the Annual General Meeting. 1956 with effect from 1st October 2010 on the Board of the Company. the Plants at Mexico 1127 manufactured both ‘JK Tyre’ & ‘Vikrant’ brand tyres apart from its range of ‘Tornel’ brand tyres. Steps are underway to double the retread capacity to meet the growing demand for these high quality treads. R. Towards this endeavour JK Tyre has acquired the title rights of renowned world series “Formula BMW Pacific” which now will be known as “JK Racing Asia Series” and the race cars will run on JK Tyres. In terms of Section 260 of the said Act. The Company has received a notice in writing from a member proposing candidature of Shri Tripathy for the office of a Director.P Khaitan and Shri Bakul Jain retire by rotation . The details as required under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988 are annexed .
.P Singhania with David Sonenscher. DIRECTORS Shri O. Large number of franchises have been appointed across the country for retreading both bias and radial truck tyres using JK Treads.
At JK Tornel Plants in 2694 Mexico. Motorsport Asia Ltd.
1990-91 2000-01 2005-06 2009-10
GROSS BLOCK ` CRS.
CONSERVATION OF ENERGY ETC. Dr. Shri Tripathy will hold office as a Director upto the date of the ensuing Annual General Meeting. MOTORSPORTS As is well known that JK Tyre has been promoting motorsports in India. The Company achieved higher market share in the Mexican replacement market and increased its exports to USA and South American countries. substantial improvement in the operational 2107 efficiencies were achieved.Annexure – 1. sales increased by 29%. Exports out of JK Tornel have further strengthened your Company’s brand standing in the global markets. successfully using it as a plank for its brand promotion.
IDBI Bank Ltd. 1st November 2010. Reports of the Board and the Auditors of all the Subsidiary Companies have not been attached to the Balance Sheet of the Company. 51/12/2007-CL-III dated 8th February. 1956 read with General Circular No. However. However. 2011. in place of Dr. 6th January 2011. SUBSIDIARY COMPANIES The particulars required under the provisions of the Companies Act. The Statement pursuant to Section 212 of the Companies Act. PARTICULARS OF EMPLOYEES Information in accordance with the provisions of Section 217(2A) of the Companies Act 1956 read with the Companies (Particulars of Employees) Rules 1975 as amended regarding employees is annexed to this Report. Mukhopadhyay. 2011 is being conducted by the Cost Auditor and the Cost Audit Report will be submitted to the Ministry of Corporate Affairs. the Report and Accounts are being sent to all shareholders of the Company. 1956 in respect of the subsidiary companies are appended.f. Bajoria receiving The Power Brand Certification from Prof. Pande. representative of Life Insurance Corporation of India resigned from the Board of the Company consequent upon his appointment as Insurance Ombudsman (UP and Uttarakhand) at Lucknow Centre..B.K. nominated Shri Ashok U. the annual accounts of the Subsidiary Companies and the related detailed information shall be made available to the shareholders of the Company and of the Subsidiary Companies seeking such information at any point of time. retire and are eligible for reappointment.e.K. Pande ceased to be a Director of the Company w. Profit & Loss Account. Arindam Chaudhary in presence of Mr. T.B. excluding the aforesaid information. 1956. The annual accounts of the Subsidiary Companies are also available for inspection by any shareholder at the Head Office of the Company and that of the Subsidiary Companies concerned. COST AUDIT The Audit of the Cost Accounts of the Company for the year ended 31st March. Shri G. Accordingly. Any shareholder interested in obtaining such
Arun K. on the Board of the Company w. Government of India.e. The observations of the Auditors in their report on Accounts read with the relevant notes are self explanatory. 2011 of the Ministry of Corporate Affairs. Chartered Accountants. Mukhopadhyay and Shri G. as per the provisions of Section 219(1)(b)(iv) of the Companies Act.B. Auditors of the Company. containing the
details of the Company’s subsidiaries is attached. Alyque Padamsee
. Pande during their respective tenures of office. Katra.f. The Board records its deep appreciation for the valuable services rendered by Dr. AUDITORS M/s Lodha & Co. In terms of the said Circular dated 8th February. T. Shri G. copies of the Balance Sheet.
dealers and in particular the valued customers. 2011 New Delhi
H. suppliers. 2010 • Greentech Excellence Award
. Corporate Governance Report and Auditors Certificate regarding compliance of conditions of Corporate Governance are made a part of this Annual Report. various central and state government agencies. which has enabled the Company to surge ahead in these challenging times. banks. and iv) the annual accounts have been prepared on a going concern basis.
particulars may write to the Secretary at the Company’s New Delhi address.S.PBIDT ` CRS. Pursuant 46 to Clause 49 of the Listing Agreement with the Stock Exchanges. a Management Discussion and Analysis. Directors record their appreciation for the dedication and hard work put in by the Team JK Tyre. the accounting policies have been selected and applied consistently and judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period. shareholders. On behalf of the Board
Your Company 169 reaffirms its 146 commitment to the good corporate g o v e r n a n c e practices. the applicable accounting standards have been followed along with proper explanation relating to material departures. 2010
• Export Excellence Award. the technical collaborators M/s Continental AG – Germany. In particular. C O R P O R A T E GOVERNANCE
for preventing and detecting fraud and other irregularities. your Directors state that :i) in the preparation of annual accounts. SINGHANIA CHAIRMAN
• National Award for Excellence in Energy Management.
ACKNOWLEDGEMENTS Your Directors wish to place on record their appreciation for the continued support and co-operation received from the financial institutions.
1990-91 2000-01 2005-06 2009-10 2010-11
DIRECTORS RESPONSIBILITY STATEMENT As required under Section 217 (2AA) of the Companies Act 1956. proper and sufficient care has been taken for maintenance of adequate accounting records in accordance with the provisions of the said Act for safeguarding the assets of the Company and
The 24th May.
JK Tyre with its “Tech Centre” at Faridabad “Centre of Excellence” at Chennai and in association with HASETRI
During the period under review. Similarly in case of Passenger Radials. against Global leaders. is meeting stringent challenges in Truck/Bus Radials. energy consumption and process optimisation.00-57 has been developed by JK Tyre. Truck & Bus Tyre launch
with sky rocketing Raw Material costs. counter flow cooling towers. focused approach towards cost optimisation. Innovation and creativity in R&D is the key to success. India’s first largest OTR tyre 40. In case of Bias Technology. besides offering best in class Truck/ Bus Bias Tyres. B) TECHNOLOGY ABSORPTION
JK Tyre Truck Wheels Centre at Vijaywada
Research & Development a) Areas of R&D Activities:
With ever increasing market competition with the global giants present and setting up shop in India. new products have been developed for high performance new generation vehicles launched by MNCs in India. installation of energy efficient compressors. water harvesting. These include installation of waste heat recovery. a testimony to R&D efforts. VFDs in various areas.
JET Xtra. extensive reverse engineering. conversion of oil fired boilers. This has been achieved through high end predictive technologies using simulation Techniques. better insulation system. replacement of inefficient steam traps. efficient load distribution system.
. besides other categories. R&D team focused upon usage of alternative material for improved performance at reduced cost. JK Tyre has also entered into Ultra Large OTR category.ANNEXURE
A) ENERGY CONSERVATION
Your Company maintained its focus on energy consumption in face of rising energy costs by continual investment in latest energy efficient system. Your Company’s Truck Radial Tyres are today benchmark in India. water recycling and actions based on energy audits conducted by external experts. coupled
(Hari Shankar Singhania Elastomer & Tyre Research Institute) a SIRO set up.
60 5093 11.72 820. we have launched new range of Farm tyres for North American Markets. In addition.72 184577 76. In addition. JK Tyre continues to maintain Technology leadership in India. Furnace Oil Quantity (KL) Total Amount (` in Crores) Average Rate (` /Ltr. skill development of people.68 4. TECHNOLOGY INNOVATION ABSORPTION. which was 0.80 4.80 3. C.54
. By continuously scanning the latest global technologies of products. EXPORT.76 3.03 132. materials and process. Power & Fuel Consumption 2010-11 1.53 293.57 22.85 2009-10
The expenditure on R&D during the year was ` 23. Consumption per unit of production : Electricity (kwh/MT) Coal/Furnace Oil 931 0. PARTICULARS OF CONSERVATION OF ENERGY I. As a result. FOREIGN EXCHANGE EARNINGS AND OUTGO
2010-11 Foreign Exchange Earnings Foreign Exchange Outgo 425.30 26.R&D efforts are also directed for application of its outcome to its Mexican operations.I. ADAPTATION &
In an environment where innovation and experimentation is encouraged.46 5.72 3950 407. Electricity a) Purchased: Unit (Kwh in lacs) Total Amount (` in Crores) Rate / Unit (`) b) Own Generation: Fuel Oils Unit (kwh in lacs) Unit / Ltr. enhanced investment in Predictive Technologies and Technology skill development.53 83.58
II. Technologists and Engineers who are constantly engaged in developing new Products & Processes.16 748.20 755.44 405.37 990.94 Crores. evaluation and testing techniques. use of cleaner and greener Technologies. of Fuel Oil (kwh) Cost / Unit (`) c) Turbo Generator: Thru Coal Unit (kwh in lacs) Unit / MT of Coal Cost / Unit (`) 2.35 2009-10 363.32 63.16 4. b) Research & Development expenses:
Annexure . Coal Quantity (MT) Total Amount (` in Crores) Average Rate (` /MT) 3.86 1313. through continuous upgradation and modernisation of plants.54 928 0.70 1724. D. the relevant ones are adapted and adopted both in products and processes.59 5. our focus for future development is to continue and develop better performing products with reduced cost. apart from achieving cost optimisations.08 4.45% of the turnover. at JK Tornel.) 2744 7. Given the highly competitive market scenario. OEM business has also been recently clinched from a leading global auto manufacturer. we have trained a highly skilled team of Scientists.81 4161 166382 65.
Production of trucks and buses increased by 38% and that of passenger cars by 28%. Globally. While top line growth has been achieved.
Mr. Michael Boneham President & MD Ford India receiving the ICOTY Award from Dr. Truck/Bus radials will be the growth driver with radialisation expected to reach a level of 35 % in the next few years. which are a matter of serious concern for the Indian Tyre Industry and your Company was no exception thereto. Raghupati Singhania
slowing down in the second half of the year. RAW MATERIALS The major challenge during the year was unabated increase in raw material prices as well as its availability. Raghupati Singhania presenting the prestigious IMOTY Award to Honda
. radialisation in Truck tyres exhibited steady growth and is currently estimated at 75% across the world.MANAGEMENT
A N A LY S I S
The Indian economy has been on the move with GDP growing at around 8. as tyre prices have not kept pace with the rising costs. There has been a significant increase in the import of both commercial and passenger tyres in India. The demand and supply gap in the natural rubber widened due to production shortfall. inflation remains a cause of worry. However. In the last six years almost 12 million cars have been added to the Indian Roads. Some sectors registered lower growth especially with industrial production
the year has been the unprecedented increase in input costs. AUTOMOTIVE INDUSTRY The Automotive sector has performed well with an overall growth of 27%. This has impacted the profitability of the industry. Natural rubber prices have almost doubled during the year. unorganised imports will get curbed to some extent. Recent global happenings has led to a spiraling rise in the price of crude and other derivatives. while Agricultural output is on the upswing. Steep increase in commodity prices is a matter of great concern to the entire Industry. This has led to contraction in the size of the market for Bias tyres. the greatest concern during
Dr.5%. TYRE INDUSTRY SCENARIO The Tyre Industry’s combined turnover will be almost ` 30. especially that of natural rubber. thus intensifying competition in this segment. All this has been driving tyre demand. Various initiatives taken by the Government to check inflation are yielding some results though impacting growth. adversely affecting the economy as a whole. It is expected that with introduction of BIS norms. In the commercial segment.000 Crores during 2010-11. owing to growing global demand and inadequate increase in production.
1 Truck Bus Radial (TBR) manufacturer having crossed 4 million number mark. Eighteen ‘JK Radial Tyre Care Centres’ set up along major National Highways. JK Tyre continues to be a leading player across these segments. a strategic thrust has been made on increasing the sales of Hi-performance tyres like Jet Extra. which delivers added value to its users. due to volatility in the crude prices and adverse demand/supply gap.Prices of crude based raw materials like synthetic rubber. It has so far exported 1 million tyres to the global markets – a testimony to the high quality of its tubeless TBRs. Jet One and Jet R Miles. during the year. In addition. This has reinforced our leadership in the OTR segment.our prime customer for these tyres. in one go. Your Company continues its approach of developing cost effective global sources and vendor relationship management. and the cars will be christened “Formula JK Tyre Pacific”.6 Tons. JK Tyre has acquired the title rights of renowned world series ‘Formula BMW Pacific’ and will now be known as “JK Racing Asia Series”. Wheel Alignment. I n its largest Motorsport endeavour. JK TYRE – MARCHING AHEAD Despite these challenges. for all its manufacturing locations. Carbon black and Nylon tyre cord were on the upswing. ‘Service Tyre’ facility etc. for the 1st time in the country.
. Mexico. In this segment. Tyre Repair.00.20 JDL was introduced for long haul applications. Among the many achievements are: • A growth of 33% in turnover to ` 5268 Crores from Indian operations and consolidated turnover of ` 6421 Crores (US $ 1. “Truck Wheels” Centre was established in Vijayawada which provides comprehensive tyre care services for both Radial and Bias tyres. to overcome partly such an alarming situation..
Arun K.5%. Working capital management remained an area of high focus throughout the year. as also new tyre sales. caused by unit costs and prices increasing sharply. the zeal for growth and achieving excellence has enabled JK Tyre to stride ahead. Y our Company has been awarded “2010 TPM Excellence Award” by JIPM (Japan Institute of Plant Maintenance). Ultra Large OTR Tyre of 12 ft height. such as. across the target markets. TRUCK/BUS RADIAL JK Tyre continues to drive the radial revolution in the truck/bus segment in India. A new Lug Tyre 10.
COMMERCIAL TYRES Commercial tyres segment comprising of Truck/Bus Bias & Radial and LCV/SCV Bias & Radial account for 81% of Company’s turnover. Turkey
J K Tyre has been recognised as Power Brand and ranked among the top 200 most valuable Brands in the country. Bajoria presenting memento to channel partner during National Fleet Conference. Japan. Extensive communication and customer centric activities have been conducted for these tyres. First time ever. weighing 3. Wheel Balancing. This has been delivered to BEML . TRUCK BIAS JK Tyre sales grew by 15% in the competitive domestic Truck Bias segment as against the market degrowth by 4. J K Tyre produced. J K Tyre continues to be India’s No.4 Billion) including JK Tornel.
. Significant brand building initiatives by way of outdoor campaigns. which operate on 365 days/24 hours basis.24 to newly launched 40. PASSENGER CAR RADIAL In the passenger car radial segment JK Tyre makes every drive a delight for millions of happy customers across India.P Andhra Pradesh. This proved to be great motivator and helped build close relationship with customers. It offers a wide range from 1200. New Generation Cars like Maruti Ritz. OEM & INSTITUTIONAL BUSINESS
JK Tyre expands its Steel Wheels network
Leading Automotive Manufacturers continue to repose their confidence in JK Tyre which continues
. Relationships with OEMs were further cemented by undertaking various joint promotion activities. was organised culminating in a National Contest. Volkswagen’s Polo & Vento. an annual painting competition for the children of LCV drivers and owners.offer after-sales service for Truck/Bus Radials. ‘Mera Sapna Contest 2010’. in line with customer needs. a customer care campaign covering 2 lac customers was conducted in Mumbai. To reach out to channel partners ‘Radial Star’ programme for dealers completed its third year and ‘Radial Baadshah’ programme for fleets successfully completed its fourth year. Rajasthan & Haryana and also . LIGHT COMMERCIAL VEHICLE In the LCV segment JK Tyre products continue to gain larger acceptance with the consumers. The retail network was further strengthened with the opening of fifteen new ‘Steel Wheels’. as well as “Drive Safe Campaigns” were undertaken
JK Tyre stall at Kisan Mela
during the year. In the fast growing Small Commercial Vehicle (SCV) Segment. The Constitution Club Car Rally for the cause of Road Safety was organised for parliamentarians and diplomats. Today 125 such outlets are operational in 75 cities contributing a significant portion of PCR sale. JK Tyre participated in several Kisan Melas in U. FARM TYRE In the Farm Tyre segment. as a part of marketing thrust. GM’s Chevrolet Cruz . received recognition in these agricultural fairs. JK Tyre is the market leader and has significantly increased volumes.a premium D segment car. which enabled close bonding with the end consumers and their families. As a part of customer engagement programme. JK Tyre partnered with Delhi Police and SAFE (a SIAM initiative) during the National Road Safety Week.00 -57 an Ultra large OTR Tyre. as well as. OFF THE ROAD TYRES (OTR) JK Tyre continues to be the dominant player with the highest market share in this segment. Chevrolet Beat. widened its product offerings. To promote the cause of Road Safety. Visits of cross section of customers and transport leaders was organised to our Truck/Bus Radial Plant at Mysore. ride on premium JK Tyre Tubeless Radials. Fiat Punto. Family rallies were organised across the country in several cities.
Volkswagen. which are at par with similar international awards. TAFE. The Formula JK Tyre Pacific is made of carbon-fibre Kevlar. Ashok Leyland. Eicher. This year the 13th National Racing Championship was conducted – a record in the history of Motorsport as
single sponsor continuing the championship for 14 calendar years. with the total exports being ` 752 Crores. in association with the leading auto magazines in India. with sales reaching high levels of tread rubber. Apart from exporting tyres from its Indian plants. The race cars will run on JK Tyres. Force Motors. For the 5th year in succession JK Tyre. John Deere. MOTORSPORTS JK Tyre is the leader of Motorsport in the country and has once again taken India to the global arena by acquiring the title rights of renowned world series ‘Formula BMW Pacific’ which now will be known as “JK Racing Asia Series” and the cars will be christened “Formula JK Tyre Pacific”. 3121 Service programmes on tyre care were conducted for the after market and institutional buyers like OEM. Tata Motors. Fiat. The 4th JK TYRE BAJA SAE India event was conducted in Indore with participation by 1700 students from 79 Engineering colleges. CUSTOMER FIRST INITIATIVES Excellence has always been encouraged by JK Tyre. it also exports from its subsidiary JK Tornel in Mexico. presented country’s most prestigious awards in the automotive industry .to be preferred partner to Maruti Suzuki.the “Indian Car of the Year” (ICOTY) and the “Indian Motorcycle of the Year” (IMOTY). Mahindra & Mahindra. As a customer care programme. a number of new cars were exclusively launched on JK Tyres in addition to several other launches on JK Tyres. GLOBAL PRESENCE JK Tyre improved its international presence considerably during the year with its exports growing by 41%. The Company has thus large global presence in over 80 countries across the six continents. JK Racing Asia Series will feature an ultra-modern standard specification race car. in the very first year of operations itself. which has been proven to be of the highest safety standards. 2011 and Honda CB Twister bagged the Indian Motorcycle of the Year. JK TREAD BUSINESS As a strategy JK Tyre entered the retread business to produce precured tread rubber and allied materials. Product training is being continuously imparted for all field Sales and Service team to add to their skill set.
JK Tyre National Racing Championship. 2011. Good response has been received from the market. Of great pride is the fact that under this Championship JK Tyre has partnered Volkswagen for the ‘VW JK Tyre POLO Cup’ which is yet another feather in the cap and has provided another avenue of opportunities to talent in the country. Steps have been taken to double the size of this business in the current year. In another continuing initiative the 7th JK Tyre Rotax Max Championship was organised for young drivers in Go-Karting. Defence etc. As mentioned above. Tyre Fitters were successfully trained and certified as “JK Tyre Master Tyre Fitter” in important trucking centres during the year. General Motors. Ford Figo was conferred with the Indian Car of the Year. These programmes also included training of drivers on tyre care. AMW etc. 2010
. This year. Around 100 franchises in eight regions across the country have been appointed for retreading of both bias and truck radial tyres using JK Treads. Swaraj Mazda.
Govt of Tamil Nadu. It is indeed a matter of great pride that JK Tyre has been awarded “2010 TPM Excellence Award” by JIPM (Japan Institute of Plant Maintenance) outside Japan. employee engagement and customer first as the corner stones of its HR strategies. titled as “Krishna . talent retention. coaching and counselling are practiced in developing talent. HUMAN RESOURCE The Company firmly believes that talented and engaged employees are the critical differentiators and provide competitive advantage for sustaining and growing the business in the intensified spiral of global competition. 2011
. Realising the emerging need of Indian auto industry.Arjuna” has been successfully working in the Company. by fostering. Bajoria . As such. The name of the initiative “Krishna – Arjuna” adds philosophical and spiritual touch and
T. Hon’ble Minister of Sports. A noble initiative for mentoring the young talent. the Company continues its focus on high performance. P M. Temperature generation during running. more than exemplifies our people’s commitment to excellence. This. Mohideen Khan. Your Company’s in-house R&D relentlessly pursues its activities to live up to the expectations of the nation. all dimensions of mentoring. have been developed and integrated into product development process of your Company.Prediction of Rolling Resistance of Tyres. promoting and sustaining basic and applied research in the field of elastomer and tyre technology. 2010
• Quality Circle Forum of India. JK Tyre Test Track at Chennai enables ultimate endorsement of technology. 2010
RESEARCH AND TECHNOLOGY Your Company. has been a pioneer in introducing radial technology in India and has played a vital role in enhancing the pace of radialisation in all segments of automobiles in India. These R&D Centres work in the field of advanced material. It is one of the most successful Industry academia joint R&D project in the country. Innovation and creativity are driving forces behind Research and Technology efforts of your Company. advanced tyre mechanics including tyre characterisation and other relevant areas in association with HASETRI. The technological strength of your Company is derived from its in-house R&D facility located at Plants and “JK TyreTech Centre” at Faridabad. to produce world-class products and provide pro-active service to our valued customers. premier scientific and industrial research organisation (SIRO). and Karun Chandhok F1 driver giving away the National Championship Trophy at JK Tyre National Racing Championship. Arun K. Under this initiative. simulation & predictive technology. your Company has tied up with IIT Madras to use powerful computation tools for stimulations and predictive technologies to deliver new and reliable design in a shortest possible time through “Centre of Excellence for Tyre and Vehicle Mechanics” at IIT Madras. for all its manufacturing locations. durability etc. Several tools and techniques like
• 5th Social & Corporate Governance Award. in one go. since its inception during 70s.
68 82. Your Company has an Internal Audit Department which prepares the audit programmes of all Units/Offices to cover significant areas to ensure conformance with internal checks
Lakshmipat Singhania – IIM Lucknow ‘National Leadership Awards’ – Hon’ble Finance Minister of India Sh.66 245. Dr. The raw material costs have gone up significantly. Management Development Programmes. Competency Mapping and Assessment Centres.67 30.43 277. Induction of Trainees at various levels and other human resource development initiatives are pursued on a continuous basis. INTERNAL CONTROL SYSTEM The philosophy of the Company with regard to adequacy of internal control system has been the formulation of effective systems and their strict implementation to ensure that assets and interests of your Company are safeguarded.P Singhania was awarded “CEO of the .PERFORMANCE OF THE COMPANY Particulars Sales & Other Income Operating Profit (PBIDT) Interest Profit Before Tax (PBT) Provision for Tax/(Credit) Net Profit
JK Tyre SAE BAJA. Kankroli Tyre Plant has received “Asia’s Best Employer Branding for Excellence in Training” and Banmore Plant has been accredited with “Golden Peacock National Quality Award”.32
` Crores 2009-10
3971. R.35 61.21 163.K. 2010
During the year.42 94.65 91. which have been partly mitigated through increased all round efficiencies and other measures. President J. 360 Degree Feedback.47
reinvigorates commitment to make it happen on part of both – the mentor and the mentee. Year” by Asia Pacific HRM Congress. Pranav Mukherjee and H.01 420.S Singhania. Vikrant Tyre Plant has been conferred with “The Global HR Excellence Award for Innovative Practices”.29 88. the Company recorded its highest ever sales by crossing Rupees Five thousand crore sales. checks and balances are put in place to determine the accuracy and reliability of financial data. Organisation along with distinguished winners
performance or achievements could thus differ materially from those projected in such forward-looking statements. or connoting the same. Effective budgetary control system is in place and has resulted in significant savings. The Company assumes no responsibility to publicly amend. All the efficiency parameters are reviewed with reference to the annual targets and budgets. All statements that address expectations or projections about the future. Management Information System (MIS) is the backbone of the Company’s review and monitoring system. India is fast emerging as global hub of automobiles
• Greentech Safety Award. RISKS AND CONCERNS As in the case of any large industry. All these factors pose challenge to the financial performance of the tyre industry of which the Company is a major constituent. statements about your Company’s strategy for growth. 2010 • Greentech Environment Excellence Award. Your Company’s actual results. product development. modify or revise any forward-looking statements on the basis of any subsequent development.
and controls. The Internal Audit Department carries out extensive audits throughout the year covering all areas of operations and the reports are reviewed by senior management and placed before Audit Committee of the Board of Directors alongwith actions taken.2010
. expenditures and financial results are forward-looking statements. including the demand for tyres. CAUTIONARY STATEMENT “Management Discussion and Analysis Report” contains forward-looking statements. The inflationary conditions and the measures taken by the Government to check the same may lead to decline in pace of industrial growth. Annual budgets and targets are placed before the Board and material deviations are reported to the Board on quarterly basis. including but not limited to. tyre industry also has a co-relation with overall condition of the economy. information or events.and attracting huge investment in the manufacturing capacities from multinational tyre manufacturing companies having deep rooted global distribution and R&D networks. 2010
• Global HR Excellence Award. the already competitive tyre industry. This is likely to further intensify. market position. This coupled with steep rise in the prices of natural rubber as well as other petro based raw materials continue to put pressure on the margins. which may be identified by the use of the words in that direction.
Meira Kumar and members of Constitution Club of India
JK Tyre has been instrumental in driving home the importance of road safety. Commissioner of Police. Drivers’ training programmes were held on the importance of maintaining correct tyre inflation pressure. Raghupati Singhania with Hon’ble Vice President of India Shri Hamid Ansari at the Flag Off Ceremony
Dr. a member of the JK Tyre family.
STAY IN TOTAL CONTROL. Road safety campaigns were conducted on major Highways. has been an active participant in the drive for road safety awareness internationally. Over the years. vehicle and driving management as well as other factors essential for safe driving. tyre care. Expressways and
Constitution Club of India. a painting competition with Road Safety as the theme was organised. organised under the aegis of the Ministry of Surface Transport.
. The Formula 1 driver Karun Chandhok. The quality of drive also depends on the sense of safety the driver has. Every year. in New Delhi. Mehta.S. Thus roping in decision-makers in this unique initiative. It conveyed the message of road safety through various on-ground activities as well as events displaying the message. The Company organised a Rally of Parliamentarians in association with the educate the younger generation about the importance of road safety. JK Tyre partners with Delhi Traffic Police to celebrate “National Road Safety Week”. Karun Chandhok. Marketing Director with Jt. Raghupati Singhania presenting memento to the Hon’ble speaker of Lok Sabha Smt. Bajoria.
A. JK Tyre has also helped in creating ‘Road Safety Clubs’ in numerous schools. The Company is determined to use its access to advance technologies for safer and smoother rides.JK TYRE AND ROAD SAFETY
Arun K. JK Tyre has enhanced the quality of drive by introducing tyres with
DRIVE SAFE. Thousands of students from various schools participated in ‘Road Safety March’ and took an oath to obey traffic rules. Dr. Delhi
Metros across the country.
DRIVE RESPONSIBLY. To
best grip and control over all terrains. to create safety awareness among motorists.
In addition to the above. in the manufacturing category for excellence in environment protection. Organisation several decades ago. The plant is “Zero Discharge Plant” and no effluent is discharged. Recycled effluents are used for making soft water to the extent of 80% and balance 20% is used for horticulture and ash quenching. UK.
Green Belt at JK Tyre Plant
JK Tyre continues to participate in community health care. parks and public places have been adopted and are being maintained. this is a tradition that was laid down by the founding fathers of the J. literacy and efforts were made to reach out and make a difference to the lives of people. greening efforts continued at all Plant locations by planting thousand of trees. More so. Vikrant Tyre Plant (VTP) has won “Green Tech Environment Award 2010 – Gold Category”. This breakthrough initiative for the Indian tyre industry was showcased as ”Soles with Souls”. JK Tyre is known for adopting environment-friendly practices.SOCIAL
JK TYRE–A SOCIALLY RESPONSIBLE CORPORATE CITIZEN
JK Tyre as a corporate citizen has consistently strived to improve the quality of life of people in and around its area of operations and society at large. JK Tyre continued its endeavour to contribute to the community welfare in the fields of environment. in association with the Footwear Design and Development Institute. in the towns and cities in and around the plants of the Company. With the growth of the Automotive Industry. Government of India) innovative use of old tyres was explored. health. In yet another pioneering effort in India. project ‘Parivartan’ is providing focused ‘Reproductive Child & Health’ and general curative services to the needy and deprived community
. the magnitude of this problem is increasing.
Disposal of discarded tyres is an environmental hazard worldwide and the greater concern is that there is very limited awareness/ focus on this issue in India. The students of the said Institute were encouraged to create designs and prototypes of footwear and
Free eye check-up camp at Banmore
JK Tyre’s Banmore plant was awarded the Golden Peacock Environment Management Award by the World Environment Foundation. During the year under review.K.
JK TYRE-THE GREEN CITIZEN
accessories and the outcome was amazing. Needless to say. VTP has also been partnering with the Karnataka State Pollution Control Board in creating environmental awareness. (under the aegis of Ministry of Commerce & Industry.
reduced birth rates. free Medical Camps alongwith distribution of medicines as also blood donation camps at various locations.000 people have been treated for STIs. During the year. to not only. JK Tyre has adopted three ITIs to upgrade them as “Centre of Excellence”. The 12 ‘Adult Literacy Centers’ run around Banmore have enabled 1100 deprived and less fortunate women to become literate. Children from rural background have been given basic educational aids and meritorious students from economically challenged background have been provided scholarships. Similarly. in addition to free eye check-up camps around Banmore. JK Tyre actively participates in the AIDS prevention programme.
Pushpawati Singhania Research Institute. were organised around Mysore. The students of Noorabad Middle School near Banmore were provided with computers and are imparted computer literacy. a hostel for backward class girls.EDUCATION
District level recognition has been accorded by the Government of Rajasthan to JK Tyre personnel at Jaykaygram for their consistent contributions in the field of school education. More than 2700 people were benefited from these camps and nearly 900 people were also successfully operated upon for Cataract. Free Medical Camps including distribution of medicines.
Adult literacy has been provided to many citizens as an enabler to cope with the challenges of modern day life. 14 Clinics along the highways. So far 50. general awareness and precautionary measures are communicated.000 people have been covered through 400 mobile clinics under this project. which is highly vulnerable group for HIV infections. adult education in villages. enabling them to become self employed and self reliant. The outcome of this effort is. and for service contributions to Special Children. Further. as a part of prevention of AIDS programme. Maternal Mortality Rate and Child Mortality Rate. apart from distribution of educational literature. more than 1300 persons and till date almost 5000 persons have benefited from this programme. Two villages in Yelwala Taluk and the Central Jail in Mysore were identified as centres to impart adult literacy. Further. are run by JK Tyre with the help of a NGO where more than 1 Lac footfalls have taken place and around 20. ‘Seminars’ for wider exposure are organised as part of the soft support that the Company provides. coming to our plants. has been adopted and maintained for last several years in Kankroli. under the Public Private
Adult Literacy programme
. have been organised. New Delhi
within 15 – 20 kms radius of the Jaykaygram plant. Master Trainers and Peer Educators have been trained to impart such awareness. JK Tyre employees but also truck drivers and loaders.
Kabaddi championship etc. to promote this cause.partnership scheme of the Government of India.
GENERAL SOCIAL WELFARE
Distribution of sewing machines to needy widows and tricycles to physically challenged persons was undertaken around Mysore Plant. The Company also supports Karting Tracks for Army personnel at Udhampur and Guwahati. JK Tyre promotes road safety awareness by distributing literature and conducting media campaigns across the country. Leader of Motorsports in the country.
Temple at JK Tyre plant. This year the 13th National Racing Championship was conducted – a record in the history of Motorsports as single sponsor continuing the championship for 14 calendar years. JK Tyre has supported many locally popular sports events like “DUNGALS” (Wrestling competition).
Road safety awareness being an important concern for the citizens.
To promote sports. JK Tyre. State Volley Ball championship. JK Tyre also participates in ‘No Honking Campaigns’.
JK Tyre supporting rural sport
At national level. Under this Championship. Banmore
. These are being run with the objective of raising the skills of workmen and special curriculum has been designed keeping in mind the specific skills required for the industry. JK Tyre has already put in place a structured Motorsports programme from the entry level participation in Karting to Racing. JK Tyre has partnered Volkswagen for the ‘VW JK Tyre POLO Cup’ which is yet another feather in the cap and has provided another avenue of opportunities to young talent in the country. as also supporting various activities like children’s painting competition in an effort to spread the message of road safety. JK Tyre has been partnering with Delhi Police and SAFE (a SIAM initiative) during the “National Road Safety Week”. has once again taken India to the global arena by acquiring the title rights of renowned world series ‘Formula BMW Pacific’ which will now be known as “JK Racing Asia Series” and the cars will be christened “Formula JK Tyre Pacific” and the race cars will run on JK Tyre.
N. Pande (LIC Representative)*^ Dr.
and Conduct reiterating its commitment to maintain the highest standards in its interface with stakeholders and clearly laying down the core values and corporate ethics to be practiced by its entire management cadre. T. Sethi. Dy. in place of Dr. Managing Director Shri Vikrampati Singhania. N. out of which five are Independent Directors(IND).A. Raghupati Singhania.A. 14th August 2010. Whole-time Director Shri Arun K.A.The core values of the Company are: • • • • C ommitment to excellence and customer satisfaction Maximising long term shareholders’ value Socially valued enterprise and Caring for people and environment.A.e. President & Director Shri G. Pande has ceased to be a Director of the Company w. BOARD OF DIRECTORS:
In a nutshell.f. on 25th May 2010. 2.e. T.B. the philosophy can be described as observing of business practices with the ultimate aim of enhancing long-term shareholders’ value and commitment to high standard of business ethics. Chairman Dr.C.A.A.f. Shri G. Committee Memberships ** 2 1 4 1 1 5 N. 1st November 2010.
. Not Applicable. The Chairman is Non-executive.f. Katra.K. Four Board Meetings were held during the twelve months period from 1st April 2010 to 31st March 2011 i.e. Shri Ashok U.P Khaitan .A.
COMPANY’S PHILOSOPHY ON CODE OF GOVERNANCE:
Corporate Governance is an integral part of values. Lender/Investor
NED Executive IND IND IND IND IND Executive Executive Executive Executive IND IND
Yes Yes Yes Yes Yes N. ethics and the best business practices followed by the Company. 30th October 2010 and 24th January 2011. Yes Yes Yes Yes Yes Yes
Shri Ashok U. Katra has been nominated by IDBI Bank Ltd.K. As per Section 275 read with Section 278 of the Companies Act 1956.
Name of the Director
Number of Board Meetings Attended 4 4 3 3 4 1 4 4 4 4 3 3
Whether last AGM attended
Shri Hari Shankar Singhania. Shri Kalpataru Tripathy was appointed as an Additional Director of the Company w.A. (IDBI Bank Nominee)*# Shri Kalpataru Tripathy@ Shri Bharat Hari Singhania. Attendance and other details are as given below:
1. N. Managing Director Shri S. The Company has in place a Code of Corporate Ethics
The Board of Directors presently consists of Eleven Directors of which five are Executive Directors and six are Non-Executive Directors(NED). Mukhopadhyay (IDBI Bank Nominee)*#
* # @ ^ $ ** N.B. 6th January 2011. 1st October 2010. N. Only covers Memberships/Chairmanships of Audit Committee and Shareholders/Investors Grievance Committee. Bajoria. Committee Chairmanships ** 1 3 1 1 N..A. Vice Chairman & Managing Director Shri Arvind Singh Mewar Shri Bakul Jain Shri O. of other Directorships and Committee Memberships/ Chairmanships Directorships $ 3 7 2 8 1 4 3 5 N.e. Mukhopadhyay w.
All the complaints were settled to the satisfaction of the shareholders.P Khaitan . Pande¢ Shri O.e.P Khaitan . Head of Internal Audit. Katra Shri S. Shri Vikrampati Singhania Shri S. This Report contains a declaration to this effect signed by Vice Chairman & Managing Director.C. There were four Investor complaints during the financial year ended 31st March 2011. Shri Kalpataru Tripathy attended the Audit Committee meeting held on 24th January 2011. Dates of the meetings and the number of the Members attended are:
Date of the Meeting 25th May 2010 14th August 2010 30th October 2010 24th January 2011 Number of Members attended 4 4 4 3¢
The Company has an Audit Committee of Directors since 1986. of Meetings attended 3¢ 4 4 4
The names of the Members of the Committee and their attendance at the Meetings are as follows:
Name Shri O. Shri Arvind . T. All valid requests for transfer of shares in physical form were processed in time and there were no pending transfers of shares.K. Four meetings of the Audit Committee were held during the financial year ended 31st March 2011. The ‘Terms of Reference’ of the Committee are in conformity with the provisions of Section 292A of the Companies Act. 1956 and Clause 49 of the Listing Agreement with the Stock Exchanges. Katra. Company Secretary and the Statutory Auditor. there are no complaints pending in respect of previous period. Mukhopadhyay. 5.
The Company has a Remuneration Committee comprising of Shri O. Mewar Dr. The composition of the Committee is in conformity with Clause 49 of the Listing Agreement.com). of Meetings attended 4 3 3 4
Shri G. All the Committee Meetings were attended by the Head of Finance Function. all being Non-executive Independent Directors to consider. REMUNERATION COMMITTEE (Non-Mandatory)
Shri Ashok U. Pande ceased to be a Director of the Company w. Singh Mewar and Shri Ashok U. the Board has laid down a Code of Conduct for all Board Members and Senior Management of the Company and the same is available on the website of the Company (www. if any.f. Vice President (Legal) & Company Secretary is the Compliance Officer.jktyre. During the financial year ended 31st March 2011.C. 6th January 2011 and consequently he ceased to be Chairman/ Member of the Committee also. AUDIT COMMITTEE :
4. 23 Meetings of this Committee were held.B.e. Sethi Status Chairman Member Member Member Member No. The Board has delegated the power of share transfer to a Committee of Directors and the share transfer formalities are attended as required.
SHAREHOLDERS/ INVESTORS GRIEVANCE COMMITTEE:
The Company has Shareholders/ Investors Grievance Committee at the Board level which consists of four Directors out of which two are Non-executive Independent Director and two are Executive Directors.S. Shri P K Rustagi. All the Board Members and Senior Management Personnel have affirmed compliance with the said Code.f. determine and recommend
. 3. Also. The Company has a Code of Conduct for Management Cadre Staff (including Executive Directors). Katra has been nominated as a Member of the Committee w. Four meetings of the said Committee were held during the financial year ended 31st March 2011. Dates of the meetings and the number of the Members attended are:
Date of the Meeting 25th May 2010 14th August 2010 30th October 2010 24th January 2011 Number of Members attended 4 4 4 3
The names of the Members of the Committee and their attendance at the Meetings are as follows:
Name Shri G. Mukhopadhyay Shri Ashok U. out of which three are Non-executive Independent Directors and one is Executive Director. Shri A.K. T. The Company Secretary acts as the Secretary of the Committee. The Committee consists of four Directors.B.The Board periodically reviews Compliance Reports of all laws applicable to the Company and steps taken by the Company to rectify instances of non-compliances. Sethi Status Chairman Member Member Member No. 1st November 2010 in place of Dr.P Khaitan (Chairman of the Committee). In terms of the provisions of Clause 49 of the Listing Agreement and contemporary practices of good Corporate Governance.
2010 11. commission payable to Shri Hari Shankar Singhania. 7. penalties.
.com’. Kolkata – 700 020 at 11.M. perquisites and contribution to Provident Fund and Superannuation Fund for the financial year ended 31st March 2011 to the Vice Chairman & Managing Director.00 lacs to each of the other Non-executive Directors. on any matter related to capital markets. Shri S.85 lacs plus ` 10.2. 94/2.50 lacs plus ` 31.50 lacs payable as Commission. Rotary 26.1. (c) The Company has strengthened its risk management system and has further laid down procedures to inform Board Members about risk assessment and minimization procedures. Chairman is ` 70. Managing Director is remuneration for the unexpired residue of respective terms or for three years.M. Managing Director and Dy. (i) GENERAL SHAREHOLDERS INFORMATION : Registered Office 7. Time & Venue Friday. Management Discussion and Analysis forms part of the Annual Report. ` 3. These procedures are being periodically reviewed to ensure that executive management controls risk through means of a properly defined framework. whichever is shorter. transactions of the Company of material nature. (a) Disclosures on materially significant related party transactions i.jktyre. Raghupati Singhania ` 243.e.2008 3. Jawahar Lal Nehru Road (Chowringhee Road).74 lacs plus ` 33. 6. The Company does not have any Stock Option Scheme. Shri Vikrampati Singhania ` 126. Phone No: 033-22486181
Location and time for the last three Annual General Meetings (AGM) of the Company were :
Financial Year Location Date Time . Council House Street.50 lacs payable as Commission and Shri Arun K. Managing Director.e Shares) held by the Non-executive Directors as on 31st March 2011 are: Shri Hari Shankar Singhania.00 lacs to Shri Kalpataru Tripathy(proportionate) and ` 6.00 lacs payable as Commission. Shri O. Shri Bharat Hari Singhania ` 21.200 Shares. Whole-time Director and President & Director is as follows : Dr. No Special Resolution was required to be put through postal ballot during the financial year ended 31st March 2011.840 Shares.49. Bajoria ` 166. 31
Annual General Meeting (AGM)
(a) Date.60 lacs to Representative of LIC(proportionate). ` 4. their subsidiaries or relatives etc. 2009-2010 Same as above 14. Jawahar Lal Nehru Road (Chowringhee Road).2009 11. Suitable disclosure as required by Accounting Standard(AS-18) – Related Party Transactions has been made in the Annual Report. During the financial year.C. The said results are promptly furnished to the Stock Exchanges for display on their respective websites and are also displayed on the Company’s website ‘www. Non-executive Directors did not have any other pecuniary relationship or transaction vis-à-vis the Company during the year except as stated above. Three Special Resolutions were passed at the AGM held in year 2009 and one Special Resolution was passed in the AGM held in year 2008. There were no cases of non-compliance of any matter related to capital markets during the last three years. Managing Director. (b) Details of non-compliance by the Company. 29th July 2011 at Shripati Singhania Hall.90 lacs to all Non-executive Directors for attending the meetings of the Board and/or Committees thereof.03. The Company does not have any outstanding convertible instruments. Shri Arvind Singh Mewar –Nil Shares. 8.Nil Shares.00 lacs payable as Commission.45 A. Rotary Sadan. GENERAL BODY MEETINGS:
Quarterly. 10. the directors or the management. 9. Shares. ii) Non-executive Directors : The Company has paid sitting fees aggregating to ` 7. that may have potential conflict with the interests of Company at large : None. with its promoters.24 lacs plus ` 150. notice period is six months.08. during the last three years. Katra .m.00 P Sadan. 94/2.M. half-yearly and annual results are published in leading English Newspapers and also in a Bengali language Newspaper(published from Kolkata). In addition to sitting fees.00 a. P Khaitan .22 Lacs plus ` 150. strictures imposed on the Company by Stock Exchanges or SEBI or any statutory authority. Sethi ` 81. The number of Equity Shares of ` 10 each (i.Nil Shares and Shri Ashok U. MEANS OF COMMUNICATION:
i) Executive Directors : The aggregate value of salary. Severance Fees for the Vice Chairman & Managing Director. 2006-2007 Shripati Singhania Hall. one Meeting of the Committee was held on 30th October 2010. Shri Bakul Jain – 1.remuneration of the Executive Directors to the Board. In the case of Whole-time Director and President & Director.00 lacs payable as Commission.08. Kolkata – 700 020 2007-2009 Same as above 31.00 lacs. REMUNERATION PAID TO DIRECTORS:
One Special Resolution was passed at the last AGM held in year 2010.30 A. Dy. Shri Kalpataru Tripathy .736 . Kolkata-700 001.
01 93.34 19521.65
JK Tyre & Industries Ltd.40 134.17 82.25 100.90 132.30 145.42% of the Equity Shares are held in dematerialized form.
Shares held in Demat Form with NSDL & CDSL and in Physical Form as on 31st March 2011
(vii) Security Code for Company’s Equity Shares on Stock Exchanges and ISIN (viii) Stock Market Price Data
Bombay Stock Exchange National Stock Exchange Month April-2010 May-2010 June-2010 July-2010 August-2010 September-2010 October-2010 November-2010 December-2010 January-2011 February-2011 March-2011 High (`) 215.00 157.29 17971.2011): No.(b) As required under Clause 49(IV)(G)(i).60 158.25 20509. a brief resume and other particulars of Directors seeking appointment or reappointment at the aforesaid AGM are given in the Notes to the Notice convening the said Meeting.50 82.76 102.27 2483 7. 2011 3 rd Quarter ending December 31.00 132.34 34491 100.28%
As on 31st March 2011. all the requests for nomination. 2011 2 nd Quarter ending September 30.30 104.JKTI’s Share Price (Closing) (Relative (`)
Values to 100)
Month April-2010 May-2010 June-2010 July-2010 August-2010 September-2010 October-2010 November-2010 December-2010 January-2011 February-2011 March-2011
BSE Sensex (Closing) (Relative Actual
Values to 100)
Annual General Meeting for the financial year 2011-12
197.30 102.30 114.76 35181875 85.3.90 139.65 153.40 202.68 41059346 100.2012 Within 45 days of the end of the quarter W ithin 60 days of the end of the 4th quarter Between July and September. 98. In respect of shares held in demat form.00 96.00 100.50 100.80 104. The Company has got voluntary delisting of its Equity Shares from the Calcutta Stock Exchange under SEBI (Delisting of Equity Shares) Regulations. change of address and rematerialisation etc.00
(iv) Dividend Payment Date (v) Date of Book Closure (vi) Listing on Stock Exchanges
During August 2011 26th July to 29th July.75 169. (iii) Financial Calendar (tentative) Financial Reporting for the quarter ending : • • • • 1 st Quarter ending June 30.12 20032.35 188.77 47.75 178.22
100.35 114. 2009 w.55 93.73 82.10 134.14%
NSDL 93. are to be made only to the Depository Participant with whom the shareholders have opened their Demat Account.23 778435 1.20 1011 2.28 118 0. the transfers are processed by National Securities Depository Limited(NSDL)/ Central Depository Services (India) Limited(CDSL) through the respective Depository Participants.85 168.86 85.
. The Equity Shares of the Company are actively traded on BSE and NSE.80 166.30 170.12 20069.00 157.58%
CSDL 5.05 162.’s (JKTI’s) Share Performance v/s BSE Sensex (April 2010 – March 2011) BSE . of Equity Shares Held 1-250 251-500 501-1000 1001-5000 5001-10000 10001 & above Total No.00 204.00 Shareholders Number % of Total 30101 87.93 682 1.81 101.18 116.50 157.60 196.65 74.The annual listing fee for the financial year 2011-12 has been paid to both the aforesaid Stock Exchanges.50 189.40 82.91 43.00 166. BSE – 530007 NSE – JKTYRE ISIN – INE573A01034.50 202.00 162.76 17823.09 18327.42 80.85 102.00 181.50 High (`) 215. 2011 The Equity Shares of the Company are listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).76 915115 2.00 90.80 159.19 51.15 169. 2011 4th Quarter ending March 31.05 77.71 16944.74
(ix) Distribution of Shareholding (as on 31. NSDL and CDSL.e. of Shares Total % of Total 1954556 4.38 101.15 75.25 163.40 19445.36
17558.90 (BSE) Low (`) 190.65 86.40 170.65 163.90 1504923 3.30 32
Physical 1.00 139.90 17868.50 173.67 724442 1.90 (NSE) Low (`) 181.30 104.f.15 101.39 68.00 182. (xi) Dematerialisation of Shares and liquidity Trading in the Equity Shares of the Company is permitted only in dematerialised form.
Share Transfer System
The transfer/transmission of shares in physical form is normally processed and completed within a period of 15-20 days from the date of receipt thereof.63 17700. Shareholders may dematerialise their holdings with any one of the Depositories – namely.51 110.10 184. 18th August 2010.10 155.15 130.00 196. In case of shares in electronic form.98 96 0.50 153.70 173.60 200.09 111.45 147.
For LODHA & CO. We further state that such compliance is neither an assurance as to future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company. Southern Spinners and Processors Ltd. Ltd. In our opinion and to the best of our information and according to the explanations given to us.under construction. It is neither an audit nor an expression of opinion on the financial statements of the Company.com DECLARATION :
2. Dwarkesh Energy Ltd.
Disclosure of names of persons constituting group in relation to JK Tyre & Industries Ltd. CliniRx Research Pvt.: 91-11-30179260 Fax No... Rouncy Trading Pvt. LVP Foods Pvt. Nav Bharat Vanijya Ltd. JK Paper Ltd. we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement. Chartered Accountants N.alankit.... Lodha Partner Place: New Delhi Dated: 24th May 2011 Firm Registration No. Panchmahal Properties Ltd.. M/s Habras International. Credit & .) Finance Ltd. Our examination was limited to procedures and implementation thereof. We have examined the compliance of conditions of Corporate Governance by JK Tyre & Industries Ltd.... Saptrishi Consultancy Services Ltd. Secretarial Department Gulab Bhawan 6A. Hansdeep Industries and Trading Company Ltd. Ltd.. Umang Dairies Ltd.. JK Enviro-Tech Ltd. Phone No...85155
Chennai Plant. Rajasthan Banmore. Bhopal Udyog Ltd.jktyre.com Website : www.. Natext Biosciences Pvt.. pursuant to Regulation 3(1)(e)(i) of the SEBI (Substantial Acquisition of Shares & Takeovers) Regulations 1997 JK Lakshmi Cement Ltd. The compliance of conditions of Corporate Governance is the responsibility of the Management. Alankit House 2E/21. 91-11-23541234 Fax No: 91-11-42541967 Email: rta@alankit.K. New Delhi-110 055 (India) Phone No. Juggilal Kamlapat Udyog Ltd. Karnataka Mysore Plant III.. BMF Investments Ltd. Param Shubham Vanijya Ltd. Madhya Pradesh Mysore Plant I . Ltd..
Dr..Bahadur Shah Zafar Marg.K. Fenner (India) Ltd.(xii)
Outstanding GDRs/ADRs/Warrants/Options :-or any Convertible instruments. New Delhi -110 002. conversion date and likely impact on equity Plant Locations (i) (ii) (iii) (iv) (v) (vi) Jaykaygram..com Website: www. Accurate Finman Services Ltd.:301051E Membership No. JK Plant Bio Sciences Research Ltd. :91-11-42541234. Ltd. Karnataka Mysore Plant II. Tamil Nadu . Florence Alumina Ltd. Jaykaypur Infrastructure & Housing Ltd.... adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance.. Vice President (Legal) & Company Secretary JK Tyre & Industries Ltd. Elate Builders Pvt...
It is hereby declared that all the members of the Board and the Senior Management personnel have affirmed compliance with the “Code of Conduct for Members of the Board and Senior Management of JK Tyre & Industries Ltd. Karnataka
AUDITOR’S COMPLIANCE CERTIFICATE ON CORPORATE GOVERNANCE :
The Members of JK Tyre & Industries Ltd. Bengal & Assam Company Ltd.P Company Ltd. as stipulated in Clause 49 of the Listing Agreement of the said Company with the Stock Exchanges. Songadh Infrastructure & Housing Ltd..K. Risk Managers and Insurance Brokers Ltd. for the financial year ended 31st March 2011. Sago Trading Ltd..
(xiv) Address for Correspondence for Share Transfer and Related Matters 1.. Ltd...com Registrar & Share Transfer Agent Alankit Assignments Ltd. M/s Juggilal Kamlapat Lakshmipat and Directors of the promoter group and their relatives. Modern Cotton Yarn Spinners Ltd. Raghupati Singhania Vice Chairman & Managing Director
.. J.. J.. JK Sugar Ltd.. Acron Engineering Ltd. : 91-11-23322059 Email: investorjktyre@jkmail. JK Agri Genetics Ltd. Pranav Investment (M. Jhandewalan Extension.” during the Financial Year ended 31st March 2011.
Balance Sheet. In our opinion and to the best of our information and according to the explanations given to us. the said accounts read together with Significant Accounting Policies and Notes thereon. 1956. 2011. Accordingly. (a) The Inventory of the Company (except stock lying with third parties and in transit. proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. (b) The procedures of physical verification of inventory followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business. (e) As per the information and explanations given to us. of the cash flows for the year ended on that date. a statement on the matters specified in the paragraphs 4 and 5 of the said Order. 1956. 1956. we enclose in the Annexure. as at 31st March. (b) In our opinion. evidence supporting the amounts and disclosures in the financial statements. These financial statements are the responsibility of the Company’s Management. LODHA Partner Firm Registration No. Chartered Accountants N. 2011 1. In our opinion and according to the information and explanations given to us. on a test basis. we report that: (a) We have obtained all the information and explanations. 2003 (as amended) (The Order) issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act. The discrepancies noticed on such physical verification of inventory as compared to book records were not material. fixed assets disposed off during the year were not substantial. 5. (d) In our opinion. As required by the Companies (Auditor’s Report) Order. (b) The fixed assets have been physically verified by the Management according to the programme of periodical verification in phased manner which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. An audit includes examining. secured or unsecured to and from companies. there is adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. none of the directors of the Company is disqualified from being appointed as a director under clause (g) of sub-section (1) of section 274 of the Companies Act. we are of the opinion that 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 and the transactions made in pursuance of such contracts or arrangements (exceeding the value of five lacs rupees in respect of each party during the financial year) have been made at prices which are generally reasonable having regard to the prevailing market prices at the relevant time. the Profit and Loss Account and also the Cash Flow Statement of the Company for the year ended on that date annexed thereto. 2. (c) As per the records and information and explanations given to us. (f) & (g) of the Order are not applicable. and
ANNEXURE TO THE AUDITORS’ REPORT Referred to in paragraph (1) of our Report of even date of JK Tyre & Industries Limited for the year ended 31st March. Based on the audit procedure performed and on the basis of information and explanations provided by the Management. of the state of affairs of the Company as at 31st March. Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act. We believe that our audit provides a reasonable basis for our opinion. and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us during the course of audit. (c) The Company is maintaining proper records of inventory.
. 2011. give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
In the case of the Cash Flow Statement. of the Profit for the year ended on that date. the provisions of clause 4 (iii) (b) to (d). Our responsibility is to express an opinion on these financial statements based on our audit. the 24th May. Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. Further to our comments in the Annexure referred to in Paragraph 1 above. 4. According to the information and explanations provided by the Management and based upon audit procedures performed.
For LODHA & CO. 1956 (The Act). The discrepancies noticed on such physical verification were not material. for which confirmations have been received / materials received) has been verified by the Management at reasonable intervals. The Company has neither granted nor taken any loan. firms or other parties as covered in the register maintained under section 301 of the Companies Act. 2.
In the case of the Profit & Loss Account. 3.K. as well as evaluating the overall financial statement presentation. 85155
New Delhi. 301051E Membership No. 1.AUDITORS’ REPORT
TO THE MEMBERS
We have audited the attached Balance Sheet of JK Tyre & Industries Limited. An audit also includes assessing the accounting principles used and significant estimates made by Management. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. We conducted our audit in accordance with the auditing standards generally accepted in India. 2011
In the case of Balance Sheet. which to the best of our knowledge and belief were necessary for the purposes of our audit. (c) The Balance Sheet. during the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control system. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements.
In our opinion and according to the information and explanations given to us, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of Sections 58A and 58AA or any other relevant provisions of the Act and the rules framed thereunder with regard to deposits accepted from the public. According to the information and explanations given to us, 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 in this regard. In our opinion, the Company has an internal audit system commensurate with the size of the Company and nature of its business. We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 209(1) (d) of the Act in respect of the Company’s products to which the said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate or complete. (a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Custom duty, Excise duty, Cess and other material statutory dues with the appropriate authorities to the extent applicable and there are no undisputed statutory dues payable for a period of more than six months from the date they became payable as at 31st March, 2011 except excise duty ` 22.29 lacs (since deposited). (b) According to the records and information & explanations given to us, there are no dues in respect of Income tax, Wealth tax and Cess that have not been deposited with the appropriate authorities on account of any dispute and the dues in respect of Sales tax, Excise duty, Custom duty and Service tax that have not been deposited with the appropriate authorities on account of dispute and the forum where the dispute is pending are given below:
Nature of the dues Sales Tax Amount Forum where dispute (` in Lacs) is pending 2.15 Deputy Commissioner 124.88 Deputy Commissioner (Appeals) 0.51 Additional Commissioner 1.65 Tribunal 1.80 54.50 99.81 182.47 19.68 241.15 32.34 83.80 28.39 35.33 High Court Commissioner (Appeals) Additional Commissioner CESTAT Supreme Court Supreme Court Commissioner (Appeals) Deputy Commissioner CESTAT High Court
10. The Company does not have accumulated losses at the end of the financial year and has not incurred cash losses in the current financial year and in the immediately preceding financial year. 11. In our opinion, on the basis of audit procedures and according to the information and explanations given to us, the company has not defaulted in repayment of dues to financial institutions or banks or debenture holders. 12. According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. The Company is not a chit fund or a nidhi / mutual benefit fund / society, therefore, the provisions of clause 4 (xiii) of the said Order are not applicable to the Company. 14. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. 15. According to the information and explanations given to us, the Company does not have any guarantee outstanding for loans taken by others from bank. In our opinion, the terms and conditions on which the Company had given guarantee for loan taken by others from bank are not prima facie prejudicial to the interest of the Company. However, the Company has not given any guarantee for loan taken by others from financial institutions. 16. In our opinion, on the basis of information and explanations given to us, the term loans were applied for the purposes for which the loans were obtained. 17. On the basis of information and explanations given to us and on an overall examination of the financial statements of the Company, no funds raised on short-term basis have been used for long-term investment. 18. According to the information and explanations given to us, the Company has not made any preferential allotment of shares during the year to any parties or companies covered in the Register maintained under section 301 of the Companies Act, 1956. 19. On the basis of records made available to us and according to the information and explanations given to us, the Company has created securities as stated in footnote (1) of Schedule 3 in respect of debentures outstanding during the year. 20. The Company has not raised any money by way of public issue during the year. 21. Based on the audit procedure performed and on the basis of information and explanations provided by the Management, no fraud on or by the Company has been noticed or reported during the course of the audit.
For LODHA & CO. Chartered Accountants
Name of the Statute Sales Tax Act
Central Excise Act
Custom Act Finance Act
Custom Duty Service Tax
The Rajasthan Entry Tax Tax on Entry of Goods into Local Area Act, 1999 Read with note no. B 11 of Schedule 14.
New Delhi, the 24th May, 2011 35
N.K. LODHA Partner Firm Registration No. 301051E Membership No. 85155
AS AT 31st MARCH 2011
Schedule SOURCES OF FUNDS SHAREHOLDERS’ FUNDS CAPITAL RESERVES AND SURPLUS 1 2 41.06 673.66 714.72 LOANS SECURED LOANS UNSECURED LOANS 3 758.68 559.35 1318.03 DEFERRED TAX 144.86 2177.61 APPLICATION OF FUNDS FIXED ASSETS GROSS BLOCK LESS: DEPRECIATION NET BLOCK CAPITAL WORK IN PROGRESS 4 2737.33 1321.02 1416.31 287.88 1704.19 INVESTMENTS CURRENT ASSETS, LOANS AND ADVANCES LESS: CURRENT LIABILITIES AND PROVISIONS NET CURRENT ASSETS 5 6 7 93.56 1726.50 1346.64 379.86 2177.61 2561.90 1209.13 1352.77 132.02 1484.79 90.24 1212.67 1095.00 117.67 1692.70 433.33 426.85 860.18 139.10 1692.70 41.06 652.36 693.42 31.03.2011 ` in Crores (10 Million) 31.03.2010
ACCOUNTING POLICIES AND NOTES ON ACCOUNTS
As per our report of even date
Schedules 1 to 7 and 14 attached to the Balance Sheet are an integral part thereof.
H.S. SINGHANIA For LODHA & CO. Chartered Accountants Dr. RAGHUPATI SINGHANIA BHARAT HARI SINGHANIA ARVIND SINGH MEWAR ASHOK U. KATRA BAKUL JAIN OM PRAKASH KHAITAN ARUN KUMAR BAJORIA S.C. SETHI VIKRAMPATI SINGHANIA Chairman Vice Chairman & Managing Director Managing Director
N.K. LODHA Partner
P RUSTAGI .K. Secretary
New Delhi, the 24th May, 2011
PROFIT & LOSS ACCOUNT
FOR THE YEAR ENDED 31ST MARCH 2011
Schedule INCOME SALES LESS: EXCISE DUTY OTHER INCOME INCREASE / (DECREASE) IN FINISHED GOODS EXPENDITURE MATERIALS AND MANUFACTURING EMPLOYEES FREIGHT AND TRANSPORTATION OTHER EXPENSES OPERATING PROFIT (BEFORE INTEREST & DEPRECIATION) INTEREST PROFIT BEFORE DEPRECIATION DEPRECIATION TRANSFER FROM CAPITAL RESERVE PROFIT BEFORE TAX PROVISION FOR CURRENT TAX DEFERRED TAX PROFIT AFTER TAX TAX PROVISION FOR EARLIER YEAR DEBENTURE REDEMPTION RESERVE NO LONGER REQUIRED SURPLUS FROM PREVIOUS YEAR APPROPRIATIONS DEBENTURE REDEMPTION RESERVE GENERAL RESERVE PROPOSED DIVIDEND CORPORATE DIVIDEND TAX SURPLUS CARRIED TO BALANCE SHEET BASIC / DILUTED EARNINGS PER SHARE (`) - CASH - AFTER TAX ACCOUNTING POLICIES AND NOTES ON ACCOUNTS
As per our report of even date H.S. SINGHANIA For LODHA & CO. Chartered Accountants Dr. RAGHUPATI SINGHANIA BHARAT HARI SINGHANIA ARVIND SINGH MEWAR ASHOK U. KATRA BAKUL JAIN OM PRAKASH KHAITAN ARUN KUMAR BAJORIA S.C. SETHI VIKRAMPATI SINGHANIA Chairman Vice Chairman & Managing Director Managing Director
` in Crores (10 Million) 2010-2011 2009-2010
5247.57 436.65 8 9
4810.92 20.86 148.20 4979.98 3989.13 271.80 111.73 329.90 4702.56 277.42 94.65 182.77 114.54 23.44 91.67 24.59 5.76 61.32 3.85 78.27 143.44 0.38 80.00 12.32 2.00 48.74 143.44 38.52 14.93
3677.70 14.72 (72.67) 3619.75 2554.02 253.98 94.64 296.82 3199.46 420.29 88.66 331.63 109.42 23.47 245.68 54.78 27.43 163.47 0.29 5.63 27.23 196.04 1.01 100.00 14.37 2.39 78.27 196.04 67.36 39.74
10 11 12
Schedules 8 to 14 attached to the Profit & Loss Account are an integral part thereof.
N.K. LODHA Partner
P RUSTAGI .K. Secretary
New Delhi, the 24th May, 2011
59.00.03.750 Bonus shares by way of capitalisation of reserves and 86.2011 31.36
23.06 41.23 235.000 of ` 100 each
` in Crores (10 Million) 31.2010
(a) (b) (c)
` 23.10.00 7.346 equity shares of ` 10 each) 41.03.85 2.03.00
Issued.50.06 41.346 of ` 10 each fully paid up (Previous year 4.639 shares issued to the shareholders of erstwhile Vikrant Tyres Ltd.53 59.34 48.14 (c) 29. towards depreciation arising out of revaluation transferred to Profit & Loss Account and ` 0.56 (a) 3.18 220.44 crs.00
Additions 0.12 cr.2011 83.
Schedule 2 RESERVES AND SURPLUS Capital Reserve Capital Redemption Reserve Debenture Redemption Reserve Securities Premium General Reserve Surplus in Profit and Loss Account
31.34 7.06 41.00.27 652. Subscribed and Paid up: Equity Shares .38 80.00.06
Includes 33.00 4.71 218.00 180. Represents revaluation reserve.Schedule 1 SHARE CAPITAL Authorised: Equity Shares -12.34 78.7.38
` in Crores (10 Million) 31. pursuant to the Scheme of Arrangement and Amalgamation without payment being received in cash.51.00 0.
.09 315.74 673.78 (b) 7. Provision for premium on redemption of Zero Coupon Non-Convertible Debentures.00 180.59.000 of ` 100 each Preference Shares .03.00 7.4. adjusted for Fixed Assets sold / transferred.48.00 48.66
107.000 of ` 10 each 14% Cumulative Redeemable Preference Shares .00 80.
e. 01.74 104.f. (b) 12856 Zero Coupon Non-Convertible Debentures (ZCNCDs) of ` 10. reduced to a YTM of 9% p.78 47.11 758.75% p.70 4.03. outstanding as at 31.2005 and a YTM of 9% p.12 crs. with quarterly rests in five instalments at the end of 3 to 7 years from the respective dates of payment of allotment money / call money.2011 Nil (comprised in Term Loans from Banks) was also secured by exclusive hypothecation of specified Book Debt.03. were secured by first pari passu charge created on the specified property of Gujarat and movable and immovable properties of Company’s Plants in Rajasthan and Madhya Pradesh. both present and future.000 each issued to Financial Institutions. These debentures were redeemed at premium based on a YTM of 13.2011 Nil.a.a upto 30.03.07. 01.000 each issued to a Bank.74 417. w.. 2006 to March. are secured by first pari passu charge created on the specified property of Gujarat and movable and immovable properties of Company’s Plants in Karnataka. upto 30.03.06. 2.a.2011 Nil.96 426. w.a..35
14.77 73.e. Term Loan of ` 40 crs.01 433. both present and future. (d) 9057 Zero Coupon Non-Convertible Debentures (ZCNCDs) of ` 10.000 each issued to a Bank.a.68 62.03. were secured by first pari passu charge created on the specified property of Gujarat and movable and immovable properties of Company’s Plants in Rajasthan and Madhya Pradesh.61 81. 2656 ZCNCDs are redeemable at premium based on a YTM of 13.33 74. w.75% p.85
NOTES: 1. Loan outstanding from a Bank as at 31.2005 with quarterly rests in five instalments at the end of 3 to 7 years from the respective dates of payment of allotment money / call money.f.46 268.Banks
` in Crores (10 Million) 31. various dates during January. outstanding as at 31.75% p.2005 with quarterly rests in five instalments at the end of 3 to 7 years from the respective dates of payment of allotment money / call money.12 18.24 34. both present and future.06. are secured by first pari passu charge created on the specified property of Gujarat and movable and immovable properties of Company’s Plants in Karnataka.e. both present and future. 2006 with quarterly rests in five instalments at the end of 3 to 7 years from the respective dates of payment of allotment money / call money. outstanding amount ` 0. both present and future.f.07.43 83.5% p. from a Bank is secured by a first pari passu charge created on movable and immovable properties of Company’s Plant in Madhya Pradesh.000 each issued to a Bank. Term Loans from Financial Institutions and Banks outstanding as at 31.98 559.82 230.Schedule 3 LOANS SECURED LOANS Zero Coupon Non-Convertible Debentures Term Loans: Financial Institutions Banks Others Other Loans from Banks Deferred Sales Tax UNSECURED LOANS Fixed Deposits Deferred Sales Tax Short Term Loans . and 6401 ZCNCDs are redeemable at premium based on a YTM of 13. outstanding amount ` 2. were secured by a first pari passu charge created on movable and immovable properties of the Company’s Plants in Rajasthan and Madhya Pradesh.a. 3. These debentures are redeemable at premium based on a YTM of 13.2010
2.5% p.2005 and a YTM of 9% p.
.a.2011 31.03.63 391. These debentures were redeemed at premium based on a YTM of 13. (a) 63389 Zero Coupon Non-Convertible Debentures (ZCNCDs) of ` 10. both present and future.a.2011 Nil.70 cr. (c) 27353 Zero Coupon Non-Convertible Debentures (ZCNCDs) of ` 10.11 267.
Schedule 4 FIXED ASSETS
Gross Value Assets Land . 8.2010 12. (b) Deferred Sales Tax Loan aggregating ` 4. 10.88 crs.67 299.99 65. constructed on lease land.03.05 crs.54 109. both present and future.53 27.42 1. Madhya Pradesh and Karnataka.16 crs.84 0.3) and second charge created on movable and immovable properties of the Company’s Plants in Rajasthan.13 12.33 2561.2011 Nil were secured by a first pari passu charge created on movable and immovable properties of Company’s Plants in Karnataka.82 12.78 13.33 11. Madhya Pradesh and Karnataka.01 1. Term Loan of ` 0.22 1094.79 0.2010 0.03 2.50 1229. Term Loan of ` 73. both present and future and also secured by way of hypothecation created / to be created on the specified movable assets at Company’s Plants in Rajasthan.78 2561. Madhya Pradesh and Karnataka. 11. Term Loans aggregating ` 5. from Banks are secured by a first pari passu charge created on movable and immovable properties of Company’s Plants in Rajasthan.25 2.47 125. 12.99 5.19 cr.03.03 180. of the Company.06 26.60 10.02 1209.97 1209.13 1101.88 58.19 3.92 28. Other Loans from banks represent Working Capital borrowings aggregating ` 417.Freehold .37 14. both present and future.31 1352.26 22.2011 31. from Madhya Pradesh State Industrial Development Corporation Limited is secured by first available charge on movable and immovable properties created subject to charges referred to in note 1(a & b).Software# As at 31.36 2.50 Depreciation
` in Crores (10 Million)
Net Value For the Sales/ Upto As at As at year Adjustments 31.03.74 102.03. Term Loans from Financial Institutions and Banks outstanding as at 31.4. 40
.2010 0.77 -
* Buildings include ` 2.34 2.47 17.46 1416.78 2737.68 233. 4. secured by hypothecation of stocks and book debts etc.80 201. Term Loans aggregating ` 173. from a body corporate are secured by hypothecation of specified vehicles.28 12.38 11. from Banks are secured by a first pari passu charge created on movable and immovable properties at a Company’s Plant in Karnataka.35 114.81 14.65 1.76 1128.60 10. from a Bank is secured by an exclusive charge by way of hypothecation of specified assets at Company’s Plants in Rajasthan. 5. 9. from a Bank and ` 0. # Being amortised over a period of 5 years.81 1352. Madhya Pradesh and Karnataka.2011 31.18 0. are subject to prior charge of banks on stocks and book debts for working capital borrowings.39 6.25 crs. from Government of Karnataka subordinated to loans from Financial Institutions. yet to be registered in company’s name.03.60 9.06 1.2011 0. both present and future (except specified book debt exclusively hypothecated to a bank against Term Loan as referred to in note no.34 Sales/ As at Adjustments 31.90 Upto 31.31 1. Term Loans carrying first pari passu charge on the movable and immovable properties.Leasehold Buildings* Plant & Machinery Office Equipments.62 295. 7. 3.46 cr.68 259. Term Loan of ` 12.11 cr.70 3.16 13.95 1117.60 9.03. 2.66 5.24 crs.90 Previous year 2009-10 2270. (a) Deferred Sales Tax Loan aggregating ` 29. 6.54 4.25 crs.38 Additions 39.55 crs. from a body corporate will be secured by way of hypothecation on the specified assets at a Company’s Plant in Karnataka.03.45 2346.23 crs. 6 & 7 on movable and immovable properties of Company’s Plant in Madhya Pradesh. 274 shares held in co-operative housing societies and property worth ` 0.93 12. Furniture & Fixtures Vehicles Intangible Assets .77 12.13 1.98 2223.63 7.98 5.32 1321. is secured by a second charge on immovable properties of Company’s Plant in Karnataka.11 6.
641 2. (Zero coupon secured non-convertible bonds) JK Sugar Ltd.65% HDFC Bonds Bonds 14 8.31 0. Mexico.50 0.33
42.31 40.97 1.00 0.01 0.K.61 0.14.V.000 14 10 9 5
Others LIC Mutual Fund Growth Fund Units 2.2010 Numbers ` in Crores (10 Million)
Equity Equity Bonds Preference Equity Equity Equity Equity Preference Equity Equity Equity Equity Equity
24 1.S. (Mexican Pesos 1000 each)* $ J.000 0.I.K. As at 31.00 0. (` 10000. (Euro 1 Each)* Sarvi Holdings Switzerland AG.222 40.25 1.K.2011 Numbers ` in Crores (10 Million) 31.44
90.32 2.A.46 2.00.00.01 25 0.778 11.46 4. Asia Pacific Ltd.58 5.97 1.000 11.35 1.2010: ` 2400) HDFC Bank Ltd. (0.50 13.01% Cumulative Redeemable)# Subsidiary Companies Lankros Holdings Ltd. $ Erstwhile Sunrise Hold Co.58 1.27 0.99.45 0. Lignite Power Pvt.71 19. As at 220.127.116.11 0.05 0.03. Reliance Industries Ltd. As at 31.A.03. As at 31.2010: ` 10000) Aggregate book value of unquoted Investments Aggregate book value of quoted Investments Market Value of quoted Investments # Under lien with Issuer.56 92.35% HDFC Bonds Bonds 9 8.000 19. Ltd. (CHF 1000 each)* JK Tornel.02.000 0.59 0. Employees Co-operative Credit Society Ltd.000 7.96% HDFC Bonds Bonds 33 J. * Pledged with bank for loans availed by certain foreign subsidiaries. Equity 5 (` 5000.360 5.03. Lignite Power Pvt. Larsen & Toubro Ltd.50.641 0.77.S.11 11. (Zero coupon preference shares) Bengal & Assam Company Ltd.000
42.000 0. International Ltd.14.
93.V.000 15.03. V.000 1.61 1.000 100 25 1.2010: ` 10000) JK Agri Genetics Ltd.03.71 0.2010: ` 5000) Government Securities (Deposited with Government Department) National Savings Certificates (` 25000.77. S.00.Schedule 5 INVESTMENTS LONG TERM INVESTMENTS (Other than trade) Names of the Bodies Corporate Hari Shankar Singhania Elastomer & Tyre Research Institute (` 2400.35. (HK$ 1 each) Class of Shares/ Debentures 31.778 1.94 3.11 26.222 26.02. De C.00% Himachal Pradesh Infrastructure Development Board Bonds 10 10.50 15. Ltd.800 0.999 0.03.35 1.05 11.47 0. (£ 1 each) J. De C.35.360 0.24 89.999
24 1.25 1.000 1.# V. S..800 4.94 -
13.00..40 100 0.
96 2.43 6.56 13.44 0.2011 31.82 7.43 238.00 104.19 662. considered good): Debts over six months Other Debts Interest Accrued on Investments Cash and Bank Balances: Cash on hand Remittances in transit and Cheques on hand Balances with Scheduled Banks: On Current Accounts On Deposit Accounts (pledged with bank ` 0.39 84.50 702..03 8.) On Savings Bank Account (For Employees Security Deposit) (31.76 648.04 317.30 1242.66 19.73 5.64
14. CURRENT LIABILITIES Acceptances Sundry Creditors Investor Education and Protection Fund (Refer note B18 of Schedule 14) Other Liabilities Interest accrued but not due on loans PROVISIONS Provision for Retirement Benefits Provision for Taxation Provision for Fringe Benefit Tax Proposed Dividend Provision for Corporate Dividend Tax 203.
.30 9.95 1212.40 201.01 25. LOANS AND ADVANCES A.62 6.58 14.04 987.62 0.49 0.94 473.
0.30 2.15 0.2010: ` 5078) LOANS AND ADVANCES (Considered Good) Secured Loan Unsecured: Loans Subsidiary Companies Advances recoverable in cash or in kind or for value to be received Deposit with Government Authorities and Others Fringe Benefit Tax Advance Payments MAT Credit Entitlement Income Tax Advance Payments
` in Crores (10 Million) 31.17 1488.83 6.00 12.04 9.06 1095. CURRENT ASSETS Raw Materials Stores and Spares Finished Goods Stock-in-Process Debtors (unsecured.74 69.11 51.08 23.Schedule 6 CURRENT ASSETS.2010
296.32 2.65 11.02 41.28 11. 31.31
245.74 78.14 369.03.26 165.03.50
Schedule 7 CURRENT LIABILITIES AND PROVISIONS A.00
B.15 1346.19 1726.82
1010.39 107.2010: ` 2.29 326.17 cr.66 0.89 70.37 2.90 4.03.94 12.06 78.49 9.80 25.30 13.78 114.83 80.37 2.72 0.67
B.70 crs.66 8.62 6.03.
01 0.28 0.94 14.19 20.07 42.18 165.) Reversal of provision for Diminution in value of Long Term Investments Provision of earlier years.80 3989.11 20.87 56..20 237.42 36.08 326.49 13. Wages.72 19.34 46.98
.94 (12.02 cr.02
Schedule 11 EMPLOYEES Salaries.99 11.74) 148. Bonus and Gratuity Contribution to Provident and other Funds Employees’ Welfare and other Benefits 195.72) 67.01 cr.96 17.86
0.28 36.59 41.21 271.78 35.13 2258.82 8.Schedule 8 OTHER INCOME Income From Long Term Investments (other than trade): Dividends Interest (tax at source ` 0. 2009-10: ` Rs. no longer required Miscellaneous Income
` in Crores (10 Million) 2010-2011 2009-2010
Schedule 9 INCREASE / (DECREASE) IN FINISHED GOODS Opening Stock Closing Stock Differential Excise Duty on Increase / Decrease of Finished Goods 165.19 2.62 165.93 184.68 253.57) (72.02 160.18 3.36 4.67)
Schedule 10 MATERIALS AND MANUFACTURING Raw Materials Consumed (Increase) / Decrease in Stock-in-Process Conversion Charges Purchase of Finished Goods Consumption of Stores and spares Power and Fuel Repairs to Buildings Repairs to Machinery 3660.55 0.01 0.10) (0. 0.08 (72.94 (17.80
82 6.) 33.66
Schedule 13 INTEREST Interest on: Debentures.08 64.21 0. 2009-10: ` 0.42 94.63 329.98 57.13 0.90 88.66
.99 98.90 5.32 7.17 cr.66 296.28 0.58 92. Postage.70 160. Telephone. Printing & Stationery.11 41. Term Loans and Fixed Deposits Others Less: Received on Short Term Loans and Others (Tax at source ` 0.10 9.Schedule 12 OTHER EXPENSES Rent Other Taxes Insurance Discount Royalty Advertisement and Sales Promotion Directors’ Fee Commission Loss / (Profit) on sale of Assets (Net) (2009-10: ` 43888) Deferred Revenue Expenditure Written off Bad Debts Written off Provision for Diminution in value of Long Term Investments (` 41746) Provision for Doubtful Debts / Advances Bank charges.36 140.07 3.65 34.09 16.13 cr.45 0.51 2. Travelling and other Miscellaneous Expenses
` in Crores (10 Million) 2010-2011 2009-2010 7.50 71.50 77.08 23.34 9.04 0..55 2.17 36.58 7.75 0.56 3.
10. such a decline is other than temporary. Provision for diminution in the value of long term Investments is made only if. Employees’ Pension Scheme and Employees’ State Insurance are recognised as defined contribution plan and charged as expenses during the period in which the employees perform the services.Schedule 14 ACCOUNTING POLICIES AND NOTES ON ACCOUNTS A. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value being higher of value in use and net selling price. a) Depreciation on fixed assets has been provided using Straight Line Method at rates and manner prescribed under Schedule XIV of the Companies Act. 7. Inventories are valued at lower of cost and net realisable value. The interest rate to the members of the trust shall not be lower than the statutory rate declared by the Central Government under Employees’ Provident Fund and Miscellaneous Provision Act. Borrowing Cost is charged to Profit & Loss Account except cost of borrowings for acquisition of qualifying assets which is capitalised till the date of commercial use of the asset. 11. Revenue Expenditure on Research and Development is charged to Profit & Loss Account and Capital Expenditure is added to Fixed Assets. b) Leasehold Land is being amortised over the lease period. The cost is computed on weighted average basis. if there has been an improvement in recoverable amount. 2. 2006 and relevant provisions of the Companies Act. The carrying amount of assets are reviewed at each Balance Sheet date to assess impairment. if any based on internal / external factors. Premium in respect of forward contracts is recognised over the life of contract. The Employer shall make good deficiency. Fixed assets are stated at cost adjusted by revaluation of certain assets.
. 4. 1956. Expenditure during construction / erection period is included under capital work-in-progress and is allocated to the respective fixed assets on completion of construction / erection. c) Depreciation on the increased amount of assets due to revaluation is computed on the basis of residual life of the assets as estimated by the valuer on Straight Line Method. Actuarial Gains and Losses are recognised immediately in the Profit & Loss Account. Non Monetary Foreign Currency items are stated at cost. 6. 1956. The Provident Fund Contribution other than contribution to Employees’ Regional Provident Fund. Finished Goods and Process Stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Continuous Process Plants as defined in Schedule XIV have been considered on technical evaluation. SIGNIFICANT ACCOUNTING POLICIES
1. 9. The impairment loss recognised in prior accounting period is reversed. Employee Benefits: (a) Defined-contribution plans: Contributions to the Employees’ Regional Provident Fund. 8. (c ) Short term employee benefits: Short term benefits are charged off at the undiscounted amount in the year in which the related service is rendered. Long Term Investments are stated at cost.
The financial statements have been prepared under historical cost convention (except for certain fixed assets which were revalued) on accrual basis in compliance with applicable Accounting Standards notified by the Companies (Accounting Standards) Rules. Exchange differences arising on actual payments / realizations and year end translations including on forward contracts are dealt with in Profit and Loss Account. if any. 1952. Monetary assets and liabilities in foreign currencies as at the Balance Sheet date are translated at exchange rate prevailing at the year end. Superannuation fund. is made to trust administered by the trustees. (b) Defined-benefit plans: Retirement benefits in the form of Gratuity and Leave Encashment are considered as defined benefit plan and determined on actuarial valuation using the Projected Unit Credit Method at the Balance Sheet date. 3. The Current Investments are stated at lower of cost or quoted / fair value computed category-wise. 5. An impairment loss is recognised as an expense in the Profit & Loss Account in the year in which an asset is identified as impaired. Foreign currency transactions are recorded at exchange rates prevailing on the date of transaction.
2010 7. the said Court directed the Excise Authorities to determine the valuation of finished goods in accordance with law and observations made in the order.39 23. & other matters ` 21.68 9. Without prejudice to the Company’s stand in this behalf. The revaluation of said assets of Jaykaygram and Banmore was further updated alongwith Factory Land and Township Building as at 1st April. 1961. NOTES ON ACCOUNTS Estimated amount of contracts remaining to be executed on capital account ` 415..86 crs. Capital work in progress includes Machinery in stock / transit. On Writ Petition filed by the Company in the Hon’ble Delhi High Court. Service tax matters ` 1.64 crs.50 15. as per Government’s desire an adhoc amount of ` 5. advances for construction.24 12.2011 of Nil (Previous year: ` 0. 1.12 3.03. ` 2.
7. 1985 & 1st April. 4. However..63 16. (Previous year: ` 164.30 36.40 1. cost paid for land and the following pre-operative expenses pending allocation: ` in Crores (10 Million) 31. 2002 based on replacement cost by a Valuer.34 0.).89 16.) pertaining to Excise duty matters in appeal ` 4. The Company has given guarantee to a bank in respect of loan outstanding as at 31.) in respect of a body corporate against counter indemnity.49 crs.03.78 crs. Excise Duty liability on account of valuation of finished goods is disputed and is yet to be determined.12.76 crs. as at 31. Deferred Tax is recognised for timing differences.45 cr. Income tax matters in appeal ` 6. Project subsidy is credited to Capital Reserve.94 1. & ` 20.45 0.10 6. Bills discounted with banks outstanding ` 13.
5.. The Gross Block includes cumulative surplus of ` 667.24
3.20 18.40 0. Deferred Tax Asset is recognised on the basis of reasonable / virtual certainty that sufficient future taxable income will be available against which the same can be realised.39 crs.70 15.04 1. Export incentives and other benefits are recognised in the Profit & Loss Account.10 2. (Previous year: ` 35.23 crs. Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act.45 crs...74 27. (Previous year: ` 4.64 crs..54 crs.2011 31. 1997 the revaluation of such assets was updated along with similar assets of Banmore plant.).65 1. Sales Tax matters in appeal ` 3. 2.19 32. Machinery. Factory & Service Buildings and Plant and Machinery of Company’s Plant at Jaykaygram were revalued as at 1st January. Contingent liabilities in respect of claims not accepted and not provided for ` 37.03. 13.83 crs.54 9.
Raw Material Consumption Stores Consumption Salaries and Wages Rates and Taxes (including excise) Travelling Expenses Power and Fuel Consumed Interest on Term Loans & Other Loans Miscellaneous Expenditure Less: Sales Add: Expenditure upto previous year Less: Transferred to Fixed Assets
.) arising on revaluation.30 crs.40 crs. B. ` 1.76 crs.87 16. (Previous year: ` 15.28 8.24 0. The same are being amortised over the expected duration of benefits. ` 6. On 1st April. 6. respectively).59 crs. construction / erection materials.49 crs. was paid under protest in earlier years and debited to ‘Advances Recoverable’ and an equivalent amount was provided in Profit and Loss Account.45 crs.03. 1991.2011 (Previous year: ` 667.40 crs. Intangible Assets are being recognised if the future economic benefits attributable to the assets are expected to flow to the company and cost of the asset can be measured reliably.41 0.36 crs.49 2.07 13. 14.39 0.
The Company has worked out reversal of Modvat Credit availed on exports under Value Based Advance Licence in earlier years and reversed the same in accounts.25 Million and ` 9.
13.Euro 24. The details of amounts outstanding under the Micro.58 6. and Advances Nil (Previous year: ` 3.16 Million.03. (ii) Payment made beyond the appointed day during the year: Nil (Previous year: Nil) and (iii) Interest Accrued and unpaid as at 31. the Excise department has issued certain basis for reversal of Modvat.32 cr. if any.) for which legal and other necessary action has been taken. 2006 (MSMED Act) to the extent of information available with the Company are as under: (i) Principal & Interest amount due and remaining unpaid as at 31.87 crs. 14.23 crs.03. 4.
Debts over six months and Advances are net of provisions made for Doubtful Debts ` 3.29 Million) are outstanding as at 31.83 crs.40 Million. .03. 12. 11. ` 0.US $ 16.71 crs.) accounted for on accrual basis in respect of import entitlements against exports made under Duty Exemption Scheme. the Company has also paid interest on such reversals. 15. respectively).66 crs.42 crs.65 crs. the investees’ assets and expected future cash flow from such investments. and ` 0. .2011. Raw materials consumed has been determined after adjusting ` 11. .94 2009-2010 2.03 crs.2011: Nil (Previous year: Nil).Yen 17.19 crs.84 crs. .86 5.GBP 1.
9. . nature of investments. Foreign currency exposure unhedged net payable is ` 94.` 207. . .8.
In respect of certain disallowances and additions made by the Income Tax Authorities.2011: Nil (Previous year: Nil). Forward Contracts for hedging Payables . . ` 152. will be made after the same are finally determined.30 crs.18 Million) as at 31. since in the opinion of the Board.GBP 1. considering the inherent value.74 Million.90 cr.42 3.US $ 44.26 Million (Previous year: ` 76.81 crs. Small and Medium Enterprises Development Act.Euro 11. (Previous year: ` 5. In the opinion of the Management.39 16.2011.52 23. these debts are recoverable and the same have been classified as good. Pursuant to special scheme announced by the Government.83 crs.40 crs.17 crs.
10.33 16. which is disputed and has been contested by the Company in a Writ Petition before the Hon’ble Delhi High Court and directions have been issued to treat the reversal already made by the Company as provisional. .US $ 21.39
.03 Million and ` 9.29 crs.48 7. ` 74. The Company has not provided diminution in the value of certain unquoted long term strategic investments.03. a) b) Exchange difference (net) amounting ` 12. Debts over six months / Advances include ` 3.credited) has been debited in respective heads of account in Profit and Loss account. (Previous year: ` 3.15 Million (Previous year: ` 104.US $ 23. .15 10. appeals are pending before the Appellate Authorities and adjustment. such diminution in their value is temporary in nature. Further. Expenditure on Research and Development (R&D) activities during the year: ` in Crores (10 Million) 2010-2011 i) Revenue Expenditure*: a) Employee Cost b) Cost of Materials and Testing Charges c) Other R & D Expenses Sub total (i) ii) Capital Expenditure Total (i+ii) * Included in respective revenue accounts.41 20. (Previous year: ` 26.
Pursuant to the Accounting Standard on ‘Accounting for Taxes on Income’ (AS-22).01 0. Whole time Director and w.68 0.15 Provision for diminution in value of long term investments (` 41746) VRS Expenses 0.16 0.02 0. and Nil for unclaimed amount on debentures (Previous year: ` 0. Dy.01 0. ` 1.Salaries 3.84 0.09 277.50 cr.02 Remuneration to Managing Directors / Whole Time Directors 10.39 1. 2010 to President & Director: ` in Crores (10 Million) 2010-2011 2009-2010 .56 Provision for doubtful debts / advances written back 0.Executive Directors 1. Computation of Net Profit for the purpose of calculating Managerial Remuneration: Profit as per Profit and Loss Account 91. 18.01 cr.03 0.97 0.Contribution to Provident and other Funds * 0.40 cr.07 7.40 0.08 Commission to Non.16.39 . 20th January.57
245. (Previous year: ` 1.60 0.01 0.46 ii) Provision for doubtful debts 1. 19.97 22.05 11.04 Wealth Tax 0. where the actuarial valuation is done on overall company basis.02 crs.07 Provision for diminution in value of investment written back Net Profit for the purpose of Managerial Remuneration under Section 349 103.67 Add: Directors’ Fee 0.50 0.Value of Perquisites (as per Income Tax Rules) 1.31
Commission payable to Non-Executive Directors as per approval of the Board of Directors is ` 1.10 104.01 10.57 2.34 9. Managing Director. 1961 10.59 3.76 10.).86 139. which shall be deposited on respective due dates. Deferred Tax Liability / (Asset) .02 0.75 17. Amount paid to Auditors : i) Statutory Auditors a) Audit Fee b) Taxation c) Certificates / other services d) Reimbursement of expenses ii) Cost Auditors a) Audit Fee b) Reimbursement of expenses ` 40756 (Previous year: ` 9155)
` in Crores (10 Million) 2010-2011 2009-2010 0.Net 144. for unclaimed dividend (Previous year: ` 0.20 Less: Bad Debts written off out of provision for doubtful debts / advances 0.09 1. Managing Director.64 Provision for doubtful debts / advances 0.50 Loss on sale of assets (Previous year: ` 43888) 0. Investor Education and Protection Fund includes ` 0.63 crs.47 3. for unclaimed fixed deposits (Previous year: ` 1.49 276.) Remuneration to Vice Chairman & Managing Director.91 .97 crs.00 0.01 0.f.01
17.64 crs.Commission 3.e.15 22.25 149. Deferred Tax Asset i) Disallowance under Income Tax Act. Deferred Tax Liability Related to Fixed Assets 156.01 .10
.).).12 0. deferred tax liability / (asset) are as under: ` in Crores (10 Million) 2010-2011 2009-2010 1.07 * Excluding provision for gratuity & leave encashment.
00% 2009-10 ` in Crores (10 Million) Gratuity (Funded) 2010-11 2009-10
3. 2006 are as given below: (a) Defined .51 (3.15 4. The estimates of future salary increase.65) 4.60 0.18 (3.36)
.20 66.98 crs.95 3.36 (8.70 1.71
4.75) 66.75 4.70 1.51 4.97 (3.13) -
55.) has been included under the head Staff Cost. (Refer Schedule 11).35 3.35 (9. The disclosures required under Accounting Standard (AS-15) “Employee Benefits” notified in the Companies (Accounting Standards) Rules. take account of inflation.65 14.Contribution Plans: Employer’s Contributions to Provident and other Funds charged off during the 12 months ended 31st March. (Previous year: ` 16.66 0.13 (3.46 3.25% 8.06) (4. promotion and other relevant factors.00 0.96 100%
* Included Under the head Staff Cost .22 (3.91) 64.25% 8. considered in actuarial valuation. such as supply and demand in the employment market.Refer Schedule -11
The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held.48 3.Benefit Plan: (i) Particulars Leave Encashment (Non Funded) 2010-11 I Expenses recognised in the Statement of Profit & Loss Account * 1 Current Service Cost 2 Past Service Cost 3 Interest Cost 4 Expected return on plan assets 5 Actuarial (Gains) / Losses 6 Total expense II Net Asset / (Liability) recognised in the Balance Sheet as at year end 1 Present Value of Defined Benefit Obligation 2 Fair value of plan assets 3 Funded status [Surplus / (Deficit)] 4 Net asset / (liability) III Change in obligation during the year 1 Present Value of Defined Benefit Obligation at the beginning of the year 2 Current Service Cost 3 Past Service Cost 4 Interest Cost 5 Actuarial (Gains) / Losses 6 Benefits Payments 7 Present Value of Defined Benefit Obligation as at year end IV Change in Assets during the year 1 Fair value of plan assets at the beginning of the year 2 Expected return on plan assets 3 Contributions by employers 4 Actual benefits paid 5 Actuarial gains / (losses) 6 Fair value of plan assets as at year end 7 Total Actual Return on plan assets V The major categories of plan assets as % of total plan Insurer Managed Funds VI Actuarial Assumptions: 1 2 3 4 (ii) Discount Rate Expected rate of return on plan assets Mortality Salary Escalation 8. 2011 of ` 18.94 2.88 cr.94 15.18) -
7.37 (3.25% 8. (Refer Schedule 11) Pending the issuance of the Guidance Note from the Institute of Actuaries of India.45 2.65 2.36) (8.18) 9.35)
8.20 51.) has been included under the head Staff Cost.49 0.75 (3.15 4.26) 1. seniority.56 1.91) (0.35) (9.31 51.66 0.
(iv) Contributions to PF (trust) during the 12 months ended 31st March.15 (4.17
2.44 10.60 0.46 (3. assessed risks of assets management.89 cr.00% LIC (1994-96) Ultimate 5% 8.26) 55. 2011 of ` 0.36 3.81
42. the Company ’s actuary has expressed his inability to reliably measure the provident fund liability.25% 8.06)
8.20.37 5.75 4.49 0.65 4.46 crs.70 4.45
6.21 6. (Previous year: ` 0.59 (3.21 34. Defined . historical results of return on plan assets and the policy for plan assets management.36 3.34 8.95 3.00 0.21 51.94) 2.13) 8.
S. S. Sarvi Holdings Switzerland AG.e.2010 (earlier of ETSA) b) Associates: Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI) Valiant Pacific LLC. (FIL) (w.Subs.V.93 41059346 67.Subs. .2010) Vice Chairman & Managing Director Managing Director Dy.merged into JKTSA w. De C. Related Parties: a) Subsidiaries: J. K.V.) (JKTSA .A. S. De C. 01.V.)
` in Crores (10 Million) 2010-2011 2009-2010 61.18 41059346 38.74
Empresas Tornel.A.f.V. S.52 14.* Gintor Administración. K. (CHT)* Compañía Inmobiliaria Norida.V. Raghupati Singhania Shri Bharat Hari Singhania Shri Vikrampati Singhania Shri Swaroop Chand Sethi Shri Arun Kumar Bajoria d) Enterprise over which KMP is able to exercise Significant Influence: JK Lakshmi Cement Ltd. S. Asia Pacific Ltd.A.A. Earnings Per Share: a) Profit after tax Less: Tax Provision for earlier Years Net Profit b) Weighted average number of equity shares c) Basic and Diluted Earnings per equity share (`) (Face Value ` 10 each) . Managing Director Whole Time Director President & Director
. of Sarvi Holdings Switzerland AG. Ltd. K.11. Asia Pacific (S) Pte.06. De C. (JKLC) Fenner India Ltd. Asia Pacific Ltd.32 163. 01. De C. De C.32 163.36 39. J.Cash . De C. (VPL) c) Key Management Personnel (KMP): Dr. of J.* Hules y Procesos Tornel.e.* General de Inmuebles Industriales.A.V. (Subs. De C.21.A. 01. of Lankros Holdings Ltd. S.29 61.47 0. International Ltd.V.) JK Tornel..* * Subsidiary of JKTSA w. (ETSA .f.) Lankros Holdings Ltd. De C. S.A. S. K.* Compañía Hulera Tacuba.After Tax 22. J.f.V.e. S.A.A. De C.2010) Comercializadora América Universal. De C.A. (Subs.* Compañía Hulera Tornel.(erstwhile Sunrise Hold Co. of JKTSA .11.V. S.V.
70 & JKLC Sale of Tyres to VPL & JKLC Sale of Raw Material & Stores to CHT & HASETRI Sale of Stores to HASETRI Purchase of Tyres from CHT Purchase of Tyres from CHT Purchase of cement from JKLC & Spares from FIL Purchase of cement from JKLC Purchase of Capital Items from CHT Sale of Capital Items to CHT Sale of Capital Items to CHT & HASETRI Sharing of Expenses received .74 (4.0.98.V.0.
10.25 & JKTSA .2010) Compañía Hulera Tornel.92. HASETRI & JKLC Sharing of Expenses paid .04
.56 (0. SUNRISE .14 (15.71 (224. Note: Figures in brackets represent previous year amount.CHT.16 (15. De C.41 & SARVI .0.30.HASETRI .04) 0.1. VPL.26.91 & FIL Loans / Advances repaid . VPL & JKLC Loans / Advances recovered .20) 2. Note . ETSA .12) 8.21.56 (0.52 (1.80. JKLC .A. JKLC .57)
0.67 (4. VPL & JKLC Loans / Advances repaid .CHT .A. 01.53 CHT .28 (6.03 (0.56 Sharing of Expenses received .20) 2. VPL.03) 1.24 (0.56)
(0. S.12) 0.86.24 2.58 2.00 (225.17)
9. S.The following transactions were carried out with related parties in the ordinary course of business:
Nature of Transactions Subsidiaries Associates
` in Crores (10 Million)
Enterprise over which KMP is able to exercise Significant Influence 1. JKLC .CHT .01 (0.12 3. HASETRI .25 Sarvi Holdings Switzerland AG. 17. JKTSA .01 3.85)
23.06) 3. ETSA . De C.CHT. HASETRI .61.68) 2.HASETRI.2.12) 0.55) 3.0. De C.VPL & JKLC Interest Income .52 (42.3.f. Outstanding 2011 during 2010 during 2010-2011 2009-2010 Loans and Advances (in the nature of Loans) :
(Repayable on demand)
Subsidiaries: JK Tornel.11.75 (4. (merged into JKTSA w.75 Interest Income .11) 0.78 (13.CHT.0.30 (42.01 & SUNRISE .74 (4.4.09) 1.0.06 (4.12 (0. VPL & JKLC Loans / Advances recovered . VPL.12 (2.39) 86.7.0. S.01 (0.11 & JKTSA .55.A.30) 5.41) 5. wherever applicable.0.78 (13.53) 2.5.97) 9. (Erstwhile Sunrise Hold Co. VPL & JKLC Loans / Advances given .74 (7.HASETRI.04 (0.99) 0.9.09 VPL .53) 0. JKLC .64) TOTAL
Sale of Tyres to HASETRI. JKLC.0.06) 3.) 9.28 (4.42.60 2.53 Empresas Tornel.53)
258.258.A. Outstanding 31st March.15 & FIL Loans / Advances given to CHT.32.15 (0.2. Loans and Advances pursuant to Clause 32 of the Listing Agreement: ` in Crores (10 Million) Outstanding Maximum Outstanding Maximum as at Amount as at Amount 31st March.2.58 2.22 (0.48) 7.70 .12 (0.V.04)
0. HASETRI.4.80 0.12.76 & FIL Sharing of Expenses paid .08) 0.25)
260.48 & FIL .44) 0.0.V.29) (0.44) 0. De C.05 (0.0.03) 6.53 0.58 VPL .80 -
7.31) 5.08) 0.7.73) 3.07 & JKLC . 0. HASETRI.00)
1.JKLC Royalty income from VPL Royalty income from VPL Contribution to HASETRI Contribution to HASETRI Outstanding as at year end: Receivable: CHT .0.03)
1.0.e.. HASETRI .68) 9.HASETRI.CHT.20) 2.03 (0. JKLC . S.29 (0.29 (15.13 & FIL .75 (4.39) 88.12 (2.95 (15.24 (1.21 (0.03 (3.29) (0.43 (0.01 3.2.2. ETSA .92 & FIL Loans / Advances received .2.04 (0.02 0.VPL .17 Details of remuneration paid to Key Management Personnel (KMP) is given in note no. SARVI & HASETRI Loans / Advances received .22 (0.Loans / Advances to employees as per Company’s policy are not considered.V.53 0.25)
9. VPL.CHT .01 Interest Expense .94 -
98.44) (64.24 40. SINGHANIA For LODHA & CO.60) (20.29 8.61 (91.75 Spares 3. SETHI VIKRAMPATI SINGHANIA
Chairman Vice Chairman & Managing Director Managing Director
` in Crores (10 Million) 2009-2010 7.65 1. Particulars of Raw Materials and Stores and Spares Consumed: 2010-2011 Quantity (MT) Amount i) Raw Materials Rubber Fabric Chemicals Carbon Black Others 135122 28189 42244 63537 % of Total 28.29 Indigenous 94.F.82 (13.71 1.K.20 386.24.29 752.86) (82.40) (2.22 88. Sales and Stocks: INSTALLED CAPACITY PER ANNUM UNITS QTY.89) 2. Figures in brackets represent previous year.36 b) Remittances in foreign Currency on account of: Dividend for the year 2009-2010 (Previous year 2007-09) (i) Number of Non-resident shareholders 1 (ii) Number of equity shares held by them 3487500 (iii) Amount of dividend remitted 1. LODHA Partner
P RUSTAGI .22 65.14 2010-2011
` in Crores (10 Million) 2009-2010 Quantity (MT) Amount 114649 24201 35888 54765
1260.14 2.23 99.07 (4.05) (205.69 365.68) (136.05) (0.43 (7.28 1058.10 1.
25.12 3.78 5.91
26.14 2610.48 5.16 4.03 93.06 328.36 24.88 3668.70) (5.2010 31.50) (31.55 5.I. Includes Trial Run Production and Sales.00) (54.73) (3589.95 Others 8.04 Royalty 3.47) 5.32) (2.44 285. AUTOMOBILE TYRES AUTOMOBILE TUBES AUTOMOBILE FLAPS OTHERS
Lac Nos.32 4780.03.78) (3. Value of Imports: Raw Materials 889. the 24th May. Figures less than ` 50000 have been shown at actual in bracket. KATRA BAKUL JAIN OM PRAKASH KHAITAN ARUN KUMAR BAJORIA S.52 36. Secretary
New Delhi.62 54.82) -
OPENING PRODUCPURCHASES SALES CLOSING STOCK TION STOCK 01.28 3.47) 13.04.C.47 85.49 35. Production.59 # 772.65 520.36)
Installed Capacity .15 2389.
% of Total 34.O. ` in QTY. Chartered Accountants Dr.86 33.04 Professional charges 0. a) Expenditure in Foreign Currency (as remitted): Royalty 6.53 28. ` in QTY.Certified by the Management.46 330.51 51.36 26. ` in QTY.43 2258.20 2.S.36) 2. Lac Nos.B.85 71. wherever necessary.22 c) Earnings in Foreign Currency on account of: F.63) (22.
As per our report of even date H.55) (5.86 #
Imported Indigenous ii) Stores and Spares Imported 5.37 (2.07 84.12 Others 2.00 262.88 1485. 2011
.93) (17.94 357.44 3. Lac Nos.68 136. Figures for the previous year have been regrouped / rearranged / recast.88) (2.21 94.74 Interest Income 1. Purchases.71 Includes Raw Material and Stores consumed during Trial Runs.K. QTY. Particulars of Capacity (Per Annum).60 20.88 5.93 256.47 12.55) (79.50) (4. RAGHUPATI SINGHANIA BHARAT HARI SINGHANIA ARVIND SINGH MEWAR ASHOK U.31) (0.17 1 3487500 0.05 Capital Goods 80.77) (27.98 27. ` in Crores Crores Crores Crores (10 Million) (10 Million) (10 Million) (10 Million) 3.42) (57.47 d) C. value of exports 418.17) (297. Production includes conversion of Finished Goods by outside parties.56) (8.2011 QTY.60) (18.23 4.98 0.15 (5.89 54.
REGISTRATION DETAILS Registration no.93 30 35242480 35242480 410593 6736680 7586741 5593559 1448588 17041897 935618 3798646 Nil Nil Nil Nil Nil Nil 19430 21 31.2011
New Delhi. the 24th May. Expenditure Accumulated Losses IV. POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (Amount in ` Thousands) Total Liabilities Total Assets SOURCES OF FUNDS Paid-up Capital Reserves & Surplus Secured Loans Unsecured Loans Deferred Tax Liability APPLICATION OF FUNDS Net Fixed Assets Investments Net Current Assets Misc. Tubes & Flaps 52684303 51767584 916719 613160 38.S.C.K. 2011
. KATRA BAKUL JAIN OM PRAKASH KHAITAN ARUN KUMAR BAJORIA S. CAPITAL RAISED DURING THE YEAR (Amount in ` Thousands) Public Issue Rights Issue Private Placement Bonus Issue III.52 14. SETHI VIKRAMPATI SINGHANIA
Chairman Vice Chairman & Managing Director Managing Director
P RUSTAGI . State Code Balance Sheet Date II. GENERIC NAME OF PRINCIPAL PRODUCTS / SERVICES OF THE COMPANY (As per Monetary terms) Item Code No.Cash .BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE I. RAGHUPATI SINGHANIA BHARAT HARI SINGHANIA ARVIND SINGH MEWAR ASHOK U.After Tax Dividend Rate (%) V.03.13. 4011. SINGHANIA Dr. PERFORMANCE OF THE COMPANY (Amount in ` Thousands) Turnover including Other Income Total Expenditure Profit Before Tax Profit after Tax Basic / Diluted Earnings per Share (`) .12 Tyres.
78.82) 644.CASH FLOW STATEMENT
For the year ended 31st March.56) 544. SETHI VIKRAMPATI SINGHANIA
Vice Chairman & Managing Director Managing Director
N.66) 327.28 245.49 6.90) 222.37 (264.17 0. CASH FLOW FROM OPERATING ACTIVITIES: Net profit before tax and extraordinary items Adjustment for: Depreciation Transfer from capital reserve Interest Expenses (Profit) / Loss on sale of assets (2009-2010: ` 43888) Deferred revenue expenditure written off Provision for diminution of Investments (` 41746) Earlier Year Provision no longer required Foreign Exchange Fluctuation Reversal of provision for diminution of Investments Interest / Dividend received Provision for Doubtful Debts / Advances and Balances written off Operating Profit before working capital changes (Increase) / Decrease in Trade and Other Receivables (Increase) / Decrease in Inventories Increase / (Decrease) in Trade Payables Cash generated from Operations Direct taxes (Net) Net Cash from / (used in) Operating activities B.42 (23. CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from borrowings Repayment of borrowings Interest Paid Dividend paid (including dividend tax) Net cash from / (used in) Financing activities Net increase in cash and cash equivalents Cash and Cash equivalents as at the beginning of the year Cash and Cash equivalents as at the end of the year Notes: Cash and Cash Equivalents Include: .78 (47.84) (228. Cheques in hand and Remittances in transit .10) (16.27 85.00) (353.68 0.09 22.54 (23.50 274.12 63. LODHA Partner
P RUSTAGI .K.S.84) (3.21 3.98) 0.25 429.79 85.01 (283.68 109.18) 2.27
Dr. SINGHANIA For LODHA & CO.25) 222.99 63. the 24th May. 2011 A.15) (13.19) 1.04 (0.15 12.07 0.64) 21.15 (15.08 (186.26) (290.25) 4.01 (169.49) (94.Balances with Scheduled Banks .28
51.Cash. Chartered Accountants
` in Crores (10 Million) 2010-2011 2009-2010 91. Secretary
New Delhi.19) (2.23) (114.C.00 (552.03 (2.K. CASH FLOW FROM INVESTING ACTIVITIES: Purchase of Fixed Assets Sale of Fixed Assets Movement in Loan Purchase of Investments Interest received Dividend received Net Cash used in Investing activities C.56 5. 2011
.44) 98.11 2.67 114.47) 92.97 591.01 63.30) 306.18 (0. RAGHUPATI SINGHANIA BHARAT HARI SINGHANIA ARVIND SINGH MEWAR ASHOK U.74 (24.22 (173.49) (4.32) 3.Unrealised Translation gain on Foreign Currency balances Total
As per our report of even date H.26) 2.61 (3. KATRA BAKUL JAIN OM PRAKASH KHAITAN ARUN KUMAR BAJORIA S.09) (45.00) (21.38 3.28 41.
89 crs. whose reports have been furnished to us and our opinion. the 24th May. Chartered Accountants
TO THE BOARD OF DIRECTORS OF JK TYRE & INDUSTRIES LIMITED ON THE CONSOLIDATED FINANCIAL STATEMENTS OF JK TYRE & INDUSTRIES LIMITED. The said financial statements have been audited by other auditors whose reports have been furnished to us. for the year then ended. Hari Shankar Singhania Elastomer & Tyre Research Institute have been audited by us. of the consolidated state of affairs of the Company.37 crs. We believe that our audit provides a reasonable basis for our opinion. International Limited) as at 31st March. for the year then ended. its Subsidiaries and its interests in Associates as at 31st March. as at 31st December. ITS SUBSIDIARIES AND ITS INTERESTS IN ASSOCIATES We have examined the attached Consolidated Balance Sheet of JK Tyre & Industries Limited. The financial statements of associate. 2010 and total revenues of ` 1765. of the consolidated cash flows of the Company. An audit includes examining. In the case of the Consolidated Profit & Loss Account. We did not audit the financial statements of any of the subsidiaries. J. was unaudited. . its Subsidiaries and its interests in Associates for the year then ended.01 cr.. which was furnished to us by the management. in all material respects. and our opinion. An audit also includes assessing the accounting principles used and significant estimates made by management as well as. we are of the opinion that the said consolidated financial statements read together with notes thereon. 2011 and the Consolidated Profit and Loss Account and also the Consolidated Cash Flow Statement for the year then ended. 2011
For LODHA & CO. 2011 and total revenue of ` 6.87 crs.: 85155
. Further the financial statements of all other subsidiaries have been audited by other auditors. its subsidiaries and its interests in associates included in the consolidated financial statements.21 crs. Our responsibility is to express an opinion on these financial statements based on our audit. whose financial statements reflect total assets of ` 18. in accordance with an identified financial reporting framework and are free of material misstatements.97 crs. on a test basis. These financial statements are the responsibility of JK Tyre & Industries Limited ’s management. namely. LODHA Partner Firm Registration No.AUDITORS’ REPORT
CONSOLIDATED FINANCIAL STATEMENTS
We did not audit the financial statements of associate. The financial statements of three subsidiaries reflect total assets of ` 2. evaluating the overall financial statement presentation. 2010. its Subsidiaries and its interests in Associates for the year then ended. Valiant Pacific LLC. as at 31st March. 2010 and total revenue of ` 523. for J.301051E Membership No. of the consolidated results of operations of the Company. is based solely on the report of other auditors. give a true and fair view in conformity with the accounting principles generally accepted in India: a) In the case of Consolidated Balance Sheet. in so far as it relates to the amounts included in respect of the said subsidiaries. and In the case of Consolidated Cash Flow Statement. 2011.K. whose audited financial statements reflect total assets of ` 153. 2011 and those of all other subsidiaries reflect total assets of ` 1273. We conducted our audit in accordance with generally accepted auditing standards in India. in so far as it relates to the amounts included in respect of the interest in said associate. (Including ` 0. as at 31st December. namely.
New Delhi.61 crs. On the basis of the information and explanations given to us and on the consideration of the separate audit reports on individual audited financial statements of the Company and its Subsidiaries and its interests in Associates included in the Consolidated Financial Statements. evidence supporting the amounts and disclosures in the financial statements. We report that the consolidated financial statements have been prepared by the Company in accordance with the requirements of Accounting Standard (AS) 21 “Consolidated Financial Statements” and (AS) 23 “Accounting for Investments in Associates in Consolidated Financial Statements” issued by the Institute of Chartered Accountants of India and on the basis of the separate audited financial statements of JK Tyre & Industries Limited. for the year ended on 31st December. International Limited. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are prepared. K. is based solely on the reports of the other auditors. its subsidiaries and its interests in associates as at 31st March. The financial statements of subsidiary.57 crs. K.
76 2151. SINGHANIA For LODHA & CO.03.96 713.48 295.K.34 LOANS SECURED LOANS UNSECURED LOANS 3 1043.31 1687.01 115.45 1521.2011 ` in Crores (10 Million) 31.14 80.13 2066. LODHA Partner
P RUSTAGI .10 2147.79 DEFERRED TAX 144.96 31.19 1952.50 1368. SETHI VIKRAMPATI SINGHANIA Chairman Vice Chairman & Managing Director Managing Director
NOTES ON ACCOUNTS
Schedules 1 to 7 and 14 attached to the Balance Sheet are an integral part thereof.97 1855.62 2616.K.S.06 817.95 188.90 849. 2011
.37 2147.55 1763.96 41.06 808.45 1158.97 569.28 858. RAGHUPATI SINGHANIA BHARAT HARI SINGHANIA ARVIND SINGH MEWAR ASHOK U. Secretary
New Delhi.38 1405.86 2616.24 INVESTMENTS CURRENT ASSETS.C. Chartered Accountants Dr.82 1613.
As per our report of even date H.90 139. KATRA BAKUL JAIN OM PRAKASH KHAITAN ARUN KUMAR BAJORIA S.99 3132.99 APPLICATION OF FUNDS FIXED ASSETS GROSS BLOCK LESS: DEPRECIATION NET BLOCK CAPITAL WORK IN PROGRESS 4 3377.45 445. the 24th May. LOANS AND ADVANCES LESS: CURRENT LIABILITIES AND PROVISIONS NET CURRENT ASSETS 5 6 7 87.CONSOLIDATED BALANCE SHEET
AS AT 31st MARCH 2011
Schedule SOURCES OF FUNDS SHAREHOLDERS’ FUNDS CAPITAL RESERVES AND SURPLUS 1 2 41.69 378.03.45 1520.
91 109.17 474.K.CASH .02 381.04 66.C.63 (85.S.96 43.93 516.87 95.59 6131.CONSOLIDATED PROFIT & LOSS ACCOUNT
31st MARCH 2011
Schedule 2010-2011 6382.51) 143.58 14.78 3124. LODHA Partner
P RUSTAGI .37 2.05
4570.K.07 5.44 38.01 100.63 0.70 313.87 143.30 54.00 12.63 44.85 25.64 85.62 4812.91 432.05 119.64 1.65 8 9 10 11 12 13
` in Crores (10 Million) 2009-2010 4849.39 25.10 219.59 4007.52) 412.85 115.69) 4524.65 5. Secretary
New Delhi. SINGHANIA For LODHA & CO.17 278.76 62.00 0.AFTER TAX NOTES ON ACCOUNTS
Schedules 8 to 14 attached to the Profit & Loss Account are an integral part thereof.25 5808.27 141.74 0.38 80.66) 221.83 42.20 27.00 14. SETHI VIKRAMPATI SINGHANIA Chairman Vice Chairman & Managing Director Managing Director
N. KATRA BAKUL JAIN OM PRAKASH KHAITAN ARUN KUMAR BAJORIA S.71 322. RAGHUPATI SINGHANIA BHARAT HARI SINGHANIA ARVIND SINGH MEWAR ASHOK U.64 142. the 24th May. 2011
.09 436.89 (60.06 16.36 3.21 151. Chartered Accountants Dr.29 4.38 331.73 (11.93 95.30 42.58 111.55 3.36 (7.
As per our report of even date H.59 147.59
INCOME SALES LESS: EXCISE DUTY OTHER INCOME INCREASE / (DECREASE) IN FINISHED GOODS EXPENDITURE MATERIALS AND MANUFACTURING EMPLOYEES FREIGHT AND TRANSPORTATION OTHER EXPENSES OPERATING PROFIT (BEFORE INTEREST & DEPRECIATION) INTEREST UNREALISED EXCHANGE FLUCTUATION ON FOREIGN CURRENCY BORROWINGS OF SUBSIDIARIES PROFIT BEFORE DEPRECIATION DEPRECIATION TRANSFER FROM CAPITAL RESERVE PROFIT BEFORE TAX PROVISION FOR CURRENT TAX DEFERRED TAX PROFIT AFTER TAX TAX PROVISION FOR EARLIER YEARS SHARE IN PROFITS OF ASSOCIATES DEBENTURE REDEMPTION RESERVE NO LONGER REQUIRED SURPLUS / (DEFICIT) FROM PREVIOUS YEAR APPROPRIATIONS DEBENTURE REDEMPTION RESERVE GENERAL RESERVE PROPOSED DIVIDEND CORPORATE DIVIDEND TAX SURPLUS CARRIED TO BALANCE SHEET BASIC / DILUTED EARNINGS PER SHARE (`) .32 2.
41 808.25 817.00 7.06
Includes 33. (b) ` 42.87 7.03.59.00.10. pursuant to the Scheme of Arrangement and Amalgamation without payment being received in cash.87 7.96 (c) 7.94 3.93 4.03.00 0.00 85.85 2.23 235. towards depreciation arising out of revaluation transferred to Profit & Loss Account and ` 0.38 80. Subscribed and Paid up: Equity Shares . adjusted for Fixed Assets sold / transferred.00
41.346 equity shares of ` 10 each)
` in Crores (10 Million) 31.00.639 shares issued to the shareholders of erstwhile Vikrant Tyres Ltd.03.06 41.58 crs. (c) Includes ` 187.2010
125.00 180.00 41.06 41.
Schedule 2 RESERVES AND SURPLUS Capital Reserve Capital Redemption Reserve Debenture Redemption Reserve Securities Premium General Reserve Surplus in Profit and Loss Account Foreign Currency Translation Reserve
` in Crores (10 Million) 31.00 48.00 4. (d) Provision for premium on redemption of Zero Coupon Non-Convertible Debentures.09 315.06
42.4.00 48.00 7.18 220.7.750 Bonus shares by way of capitalisation of reserves and 86.34 0.00.34 25.51.
.14 (d) 24.12 cr.70 (b) 3.2011 270.2010
Additions 4.000 of ` 100 each Issued.000 of ` 10 each 14% Cumulative Redeemable Preference Shares .59.79
(a) Gain on reinstatement of net Capital Reserve on consolidation as at Balance Sheet date.48.50.Schedule 1 SHARE CAPITAL Authorised: Equity Shares -12.03. on consolidation.2011 31.28
308.000 of ` 100 each Preference Shares .346 of ` 10 each fully paid up (Previous year: 4.18 crs.16 76.00 180.79 (a) 0.
11 1043. # Being amortised over a period of 5 years.45 3132.40 6.61 18.74 104.35 151.74 567.07 73.03.2011 31.2010 144.34 2.73) (2.70 179.64 1390.05) (12.30 37.91 40.82
14.58 11.48 1763.2010: ` 10000)
* Share of profits has been recognised in carrying amount of investment in associates.98 4.43 83.46 1855.Schedule 3 LOANS SECURED LOANS Zero Coupon Non-Convertible Debentures Term Loans: Financial Institutions Banks Others Other Loans from Banks Deferred Sales Tax UNSECURED LOANS Fixed Deposits Deferred Sales Tax Short Term Loans .
` in Crores (10 Million) 31.39 11.55 1228.90 9.25 87.46 cr.48 (2.76 7.96 14.15 5.03.63 10.33 20.Others Schedule 4 FIXED ASSETS
Gross Value Assets Land .05 crs.01 713.87 0.12 89.63 402.85 1303. constructed on Leased Land.03.45
1.13 1.56 0.89 23.24) (0.01 0.11 477.97 62.97 1368. @ Represents translation adjustments arising on consolidation of foreign subsidiaries.97 1368. 274 shares held in co-operative housing societies and property worth ` 0.44 for the Year 0.
Schedule 5 INVESTMENTS LONG TERM INVESTMENTS (Other than trade) Investment in Shares: Equity Preference Investment in associates* Bonds Mutual Funds Government Securities (` 25000.50 7.45 Additions 39.05) (3.50 2840.55 14.36 81.03.13
1.03.03.2010 147.68 347.36 2.45 2.46 268.61 49.67 442.03.73) 0.60 445.98) (0.09 2.2011 31.2011 0.78 3132.2010 0.15 12.43 6.70 297.79 0.14 1.45
` in Crores (10 Million)
Net Value As at As at 31.09 22.2010
2.11 0.03.95 144.81 147.47) 1.68 399.39 30.55
* Buildings include ` 2.96 18.99 94.82 17.2011 31.83 142.12 236. As at 31.56) (0.55 14.03.45 569.11 13.Freehold .34 1256.45 74.89) (6.Leasehold Buildings* Plant & Machinery Office Equipments.90 2508.63 3.80 319.22 3.97 17.2011 31.17) (0.63 (0.03.61 21.56 1251.32 1521.25 80.67 0. Furniture & Fixtures Vehicles Intangible Assets# Previous year 2009-10 As at 31.06 2.81 1763.23 34.77 131.78 3377.92 2.63 9.90 10.34 Sales/ Translation As at Upto Adjustments Adjustment@ 31.88 80.03.25 45.30 Depreciation
` in Crores (10 Million) 31.15 47.82 366.53) (2.70 4. yet to be registered in Company’s name.49 2693.55 19.95 Sales/ Translation Upto Adjustments Adjustment@ 31.50 0.
00 165.) On Savings Bank Account (for Employees Security Deposit) (As at 31.82 7.25 0.58 14.03.32 2.Schedule 6 CURRENT ASSETS.45 772..39 0.36 96. PROVISIONS Provision for Retirement Benefits Provision for Taxation Provision for Fringe Benefit Tax Proposed Dividend Provision for Corporate Dividend Tax
203.25 78. As at 31.43 13.44 0.17 cr.24 51. LOANS AND ADVANCES (considered good) Secured Loan Unsecured: Loans Subsidiary Companies Advances recoverable in cash or in kind or for value to be received Deposit with Government Authorities and Others Fringe Benefit Advance Tax Payments MAT Credit Entitlement Income Tax Advance Payments
` in Crores (10 Million) 31.37 2.67 216.03.66 8.92 2066.29 0.31
268.91 41.69 4. CURRENT LIABILITIES Acceptances Sundry Creditors Investor Education and Protection Fund Other Liabilities Interest accrued but not due on loans B.38
Schedule 7 CURRENT LIABILITIES AND PROVISIONS A.04 353.59 1761.45 54.55 29.30 1522.15 0.38 12.31 2.2010
352.11 377.63 54.35 11.2010: ` 5078) B.49 573.43 6.79 82.62 6.76 862.71 28. CURRENT ASSETS Raw Materials Stores and Spares Finished Goods Stock-in-Process Debtors (unsecured.30 0.11
1274.37 22.03.54 134.` 0.60 13.56 1405.06 1687.2010: ` 2.70 crs.39 166.62 6. LOANS AND ADVANCES A.74 76.62 2. considered good): Debts over six months Other Debts Interest Accrued on Investments Cash and Bank Balances: Cash on hand Remittances in transit and Cheques on hand Balances with Banks: On Current Accounts On Deposit Accounts (Pledged with Bank .62 0.76 1520.30 171.67 5.04 26.19 890.53 304.69
14.07 19.74 98.36 245.67 56.2011 31.14 422.24 58.36 1238.45 60.03 8.01
77 3124.24 160.83 238.01 0.81 8.38 4812.16 38.91
Schedule 11 EMPLOYEES Salaries.49 14.44 8.03 216.39 50.17 59.33 89.69 51.55 77.10 21.91 (60.60) 42.85 45.89
Schedule 9 INCREASE / (DECREASE) IN FINISHED GOODS Opening Stock Closing Stock Differential Excise Duty on Increase / Decrease of Finished Goods 216.33 (12.87) 67.59 277.29 0.65 432.87 33.55 474. Bonus and Gratuity Contribution to Provident and other Funds Employees’ Welfare and other Benefits 334.69)
Schedule 10 MATERIALS AND MANUFACTURING Raw Materials Consumed (Increase) / Decrease in Stock-in-Process Conversion Charges Purchase of Finished Goods Consumption of Stores and Spares Power and Fuel Repairs to Buildings Repairs to Machinery 4385.27
308.35 213.70 (16.74) 147.01 0.99 (8.55 4. Wages.91 377.05
.Schedule 8 OTHER INCOME Income From Long Term Investments (other than trade): Dividends Interest Reversal of provision for Diminution in value of Long Term Investments Provision of earlier years no longer required Miscellaneous Income
` in Crores (10 Million) 2010-2011 2009-2010
0.42 48.57) (60.17 2722.10 14.12) (0.62 17.59
18 3. Telephone.10 5.12 0.66 140.03 111.65 0.76 331.85 72.Schedule 12 OTHER EXPENSES Rent Other Taxes Insurance Discount Royalty Advertisement and Sales Promotion Directors’ Fee Commission Loss / (Profit) on Sale of Assets (Net) Deferred Revenue Expenditure Written off Provision for Diminution in value of Long Term Investments (` 41746) Bad Debts Written off Provision for Doubtful Debts / Advances Bank charges.10 9.54 0.23 58.03 381.53 109.63 0. Postage.73
7.36 61. Printing & Stationery.11 42.65 115.59
Schedule 13 INTEREST Interest on: Debentures.89 Less: Received on Short Term Loans and Others 6.32 9.75 0. Term Loans and Fixed Deposits Others 43.09 17. Travelling and other Miscellaneous Expenses
` in Crores (10 Million) 2010-2011 2009-2010
0.97 4.17 39.75 12.38 3.21 -
7.50 98.08 26.15 119.58 7.04 115.
Associates: Name Hari Shankar Singhania Elastomer and Tyre Research Institute. Mexico (erstwhile Sunrise Hold Co. S. Principles of Consolidation: a) The Consolidated Financial Statements comprise of the financial statements of JK Tyre & Industries Limited (Parent Company) and the following as on 31.) Empresas Tornel. S. J..96% 99. S. De C.2011: i) Subsidiaries: Name J.A.V. S.V.2010 Status Ownership Interest Financial Statements as on
There are no significant transactions or other material events that have occurred between the balance sheet date of above companies and the parent company. Mexico Hules y Procesos Tornel.03. India Valiant Pacific LLC.96%
31.V. Impact of minority interest is insignificant and immaterial. Mexico
* Merged into JK Tornel.e. De C..12. S. De C. S.03. International Ltd. S.12.2010 31. K. De C... Mexico Comercializadora América Universal. S..A.V. S. Mexico Compañía Inmobiliaria Norida.V. Hong Kong J.96% 99.12.2010 31. Mexico Gintor Administración.. Cyprus Sarvi Holdings Switzerland AG.12.V.2011 31. Singapore Lankros Holdings Ltd..2011 31.11. De C.V.A..12.V. Asia Pacific Ltd.V.. De C. S.12.V.12.A. Switzerland JK Tornel.2010 31.Schedule 14 NOTES ON CONSOLIDATED FINANCIAL STATEMENTS 1. Asia Pacific (S) Pte Ltd. De C. De C. K.2010 *
99. 01.. Mexico Compañía Hulera Tacuba.V..2011 31.2010 31.03.A. UAE Audited Audited 24% 49% 31.96%
Financial Statements as on 31.96% 99.2010 31.96% 99.A.2010. K. S... Mexico Compañía Hulera Tornel.96% 99.A. hence not considered. U.
. De C.12.2011 31. w.
Proportion of ownership interest 100% 100% 100% 100% 100% 99. De C.12.2010 31.96% 99.2010 31..12. De C.f.A.A..03.03.. Mexico General de Inmuebles Industriales.A.A.12.
h) Significant Accounting Policies and Notes on Accounts of the financial statements of the Company and its subsidiaries are set out in their respective Financial Statements. d) Post acquisition. S. both monetar y and non-monetary. f) The Accounting Policies of the parent company. e) The difference between the cost of investment and the share of net assets at the time of acquisition of shares in the subsidiaries and associates is identified in the financial statements as Goodwill or Capital Reserve as the case may be. income and expenses. K. Investments are accounted for by using equity method in accordance with Accounting Standard (AS) 23 – “Accounting for Investments in Associates in Consolidated Financial Statements”. all the shares representing the capital stock of ETSA have been cancelled against the Investment in Subsidiaries in the books of JKTSA. the Company accounts for its share in the change in net assets of the associates (after eliminating unrealised profits and losses resulting from transactions between the Company and its associates to the extent of its share) through its profit and loss account in respect of the change attributable to the associates’ profit and loss account and through its reserves for the balance. De C. few accounting policies are different as certain subsidiaries / associates located in different countries have to comply with the local regulatory requirements.b) The Financial Statements of the parent company and its subsidiaries have been consolidated on a line by line basis by adding together the book value of like items of assets. (JKTSA) have approved the merger of ETSA into JKTSA in their Extraordinary Shareholders Meeting held on 10th September.V. International Ltd. The accounts of J. 2010. the assets and liabilities of ETSA have become the assets and liabilities of JKTSA.
g) Foreign Subsidiaries – Revenue items have been consolidated at the average rate of foreign exchange prevailing during the year. its subsidiaries and associates are largely similar.A. after eliminating Intra-group balances and Intra-group transactions. The assets and liabilities. The duly executed minutes of the Extraordinary Shareholders’ Meetings of above said companies and the Merger Agreement entered into between them were notarized and duly certified on 29th September. c) In case of associates.
The shareholders of Empresas Tornel. where Company holds directly or indirectly through subsidiaries 20% or more equity or / and exercises significant influence. (ETSA) and JK Tornel. i) 2. As a result. liabilities. 2010.
.A. 2010 making the merger effective from 1st November.V. De C. However. Also. S. Exchange differences arising on monetary and non-monetary items that in substance forms part of the Company’s net investment in non-integral foreign operation are accumulated in the Foreign Currency Translation Reserve. of the non-integral foreign operation are translated at closing rate. are exempt from Audit.
if any. The revaluation of said assets of Jaykaygram and Banmore was further updated alongwith Factory Land and Township building as at 1st April.
a) Debts over six months and Advances are net of Provisions made for Doubtful Debts ` 18.27 crs.
9.). (Previous year: ` 19.41 crs.. The Company has given guarantee to a bank in respect of loan outstanding as at 31. 1997 the revaluation of such assets was updated alongwith similar assets of Banmore plant.39 crs. Fixed Assets of certain foreign subsidiaries at Mexico were revalued as at 12th June.‘Reserves & Surplus’ has been set off towards additional depreciation on revaluation of fixed assets of certain foreign subsidiaries at Mexico. JKTSA has given guarantee to a bank against counter indemnity from a body corporate in respect of non-fund based facilities outstanding ` 40. Excise Duty liability on account of valuation of finished goods is disputed and is yet to be determined.52 crs.) included in note (b) of Schedule 2 .49 crs.86 crs. as at 31. respectively). for which legal and other necessary action has been taken.2011 of Nil (Previous year: ` 0.30 crs. 2008 on the basis of report of a certified Valuer. In respect of certain disallowances and additions made by Income Tax Authorities.71 crs.
. these debts are recoverable and the same have been classified as good.43 crs.. Bills discounted with banks outstanding ` 13.3.03.81 crs. On 1st April. (Previous year: ` 38.83 crs.32 cr.40 crs.76 crs.45 cr.). respectively).71 crs. the said Court directed the Excise Authorities to determine the valuation of finished goods in accordance with law and observations made in the order. (Previous year: ` 4. ` 1. a sum of ` 19.. ` 6. pertaining to Excise Duty matters in appeal ` 4. & Other matters ` 29. appeals are pending before the Appellate Authorities and adjustment. at year end. and Advances Nil (Previous year: ` 11..
8.) arising on revaluation.). 1985 & 1st April. and ` 0.14 crs.
a) Factory & Service buildings and Plant and Machinery of parent company’s Plant at Jaykaygram. Service Tax matters ` 1.2011 (Previous year: ` 1031. Sales Tax matters in appeal ` 3.80 crs.45 crs.
Estimated amount of contracts remaining to be executed on capital account ` 415. On Writ Petition filed by the Company in the Hon’ble Delhi High Court.. The Gross Block includes cumulative surplus of ` 1038. Income Tax matters in appeal ` 6. (Previous year: ` 15. 2002 based on replacement cost by a Valuer. Without prejudice to the Company’s stand in this behalf. Contingent liabilities in respect of claims not accepted and not provided for ` 45.76 crs..45 crs. were revalued as at 1st January. 6.59 crs. an adhoc amount of ` 5. ` 2.
5. & ` 23.13 crs.28 crs. (Previous year: ` 165.66 crs. 1991.23 crs.) in respect of a body corporate against counter indemnity.).03. In the opinion of the Management. b) Debts over six months / Advances include ` 24. will be made after the same are finally determined. Further.40 crs. b) Out of Capital Reserve arising on consolidation of foreign subsidiaries.36 crs. as per Government’s desire. was paid under protest in earlier years and debited to ‘Advances Recoverable’ and an equivalent amount was provided in profit and loss account.
4. (Previous year: ` 3.
` in Crores (10 Million) 2010-2011 14.07 223. the Excise department has issued certain basis for reversal of Modvat.46 1.05 11. Pursuant to special scheme announced by the Government. Earnings Per Share: a) Profit after Tax Less: Tax Provision for earlier years Add: Share in Profits of Associates Net Profit b) Weighted average no.29 4. 12.65 cr. K.91 41059346 219.36 65.34 1.55 3.25 149. Pursuant to the Accounting Standard on ‘Accounting for Taxes on Income’ (AS-22). the Company has also paid interest on such reversals.57 2009-2010
ii) Provision for doubtful debts 3. The Company has worked out reversal of Modvat Credit availed on exports under Value Based Advance Licence in earlier years and reversed the same in the accounts. Deferred Tax Liability / (Asset) . equivalent HK$ 1124838) from an associate company. Deferred Tax Asset i) Disallowance under Income Tax Act.11. equivalent HK$ 1124838 (Previous year: ` 0.Cash .47 139.) 62.52 41059346 2009-2010
c) Basic and Diluted Earnings per equity share (`) (Face Value ` 10 each) .Net
Certain foreign subsidiaries have not recognised deferred tax asset (net) based upon prudence. Deferred Tax Liability Related to Fixed Assets 2. 1961 10. 13. of equity share (Nos.After Tax
44.10 156.30 54.86 9.06 16. deferred tax liability / (asset) are as under: ` in Crores (10 Million) 2010-2011 1.39 144.44
. Asia Pacific Limited have invited attention towards recoverability in respect of amount due ` 0.05
85.74 0.01 10. which is disputed and has been contested by the Company in a Writ Petition before the Hon’ble Delhi High Court and directions have been issued to treat the reversal already made by the Company as provisional. Auditors of a subsidiary company J.66 cr.
0. VPL. Raghupati Singhania Shri Bharat Hari Singhania Shri Vikrampati Singhania Shri Swaroop Chand Sethi Shri Arun Kumar Bajoria Vice Chairman & Managing Managing Dy.65 3.2.24 (1.47.92 & FIL Loans / Advances received .75 (4.75 (4.60 2.40) 9.64) TOTAL
Sale of Tyres to HASETRI.2.98.15.VPL Royalty income from VPL Royalty income from VPL Contribution to HASETRI Contribution to HASETRI Outstanding as at year end: Receivable (` crs. Related Parties: a) Associates: Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI) Valiant Pacific LLC.HASETRI Loans / Advances received .67) 0.15 (0.14 (15.VPL & JKLC Interest Expense .43 (0.22) 0.03 (0. JKLC .4.f. VPL. Managing Whole Time President & Director Director Director Director Director
Enterprise over which KMP is able to exercise significant influence: JK Lakshmi Cement Ltd.12 (0.) VPL .
.11) 0.00) (0.71 (6.0.21. JKLC . VPL. (Previous year: ` 22.56 Sharing of Expenses received .68 (28.HASETRI & JKLC Sharing of Expenses paid .74 (4.15 crs.61)
Remuneration paid to Key Management Personnel (KMP) for the year ` 10.04 (0.HASETRI. (VPL) b) Key Management Personnel (KMP): Dr.0. VPL & JKLC Loans / Advances recovered .HASETRI . wherever applicable.37) 3. HASETRI . VPL & JKLC Loans / Advances given .20) 2.41) 5.2.HASETRI.07 & JKLC .17 (228.0.06) 113.04) 132.HASETRI.73) 3. (FIL) (w.0.68.76 & FIL Sharing of Expenses paid .74 (4. VPL.91 & FIL Loans / Advances repaid .65 3.15 & FIL Loans / Advances given to HASETRI.12) (0.5. (JKLC) Fenner India Ltd.09 VPL .12) (0.09) 2.25) 1.06)
260.37.21 (0. JKLC .03 (3.2. Note: Figures in brackets represent previous year amount.0.48 & FIL .20) 2.29 (0.88 (227.28.22 (36.07 crs.12 (0.258.03) (0. VPL .HASETRI.08) 0.25)
47. VPL & JKLC Loans / Advances recovered .30) 5.17
258.03) 113.81) 3.28 (1.28 (4.48) 7.22 (36.09) 1.44)
49.90 (28. JKLC .16 (15. VPL & JKLC Loans / Advances repaid .).99) 0.68) 9.63 (3.70.22 (0.03) 6. JKLC .99) 3.06 (4.JKLC Guarantee Given .HASETRI.87 & JKLC Sale of Tyres to VPL & JKLC Sale of Raw Material & Stores to HASETRI Sale of Stores to HASETRI Purchase of Raw Material from VPL Purchase of Raw Material from VPL Purchase of cement from JKLC & Spares from FIL Purchase of cement from JKLC Sale of Capital Items to HASETRI Sharing of Expenses received . 01.58) 0.29 (15.28 (6.HASETRI.13 & FIL .2.e.22 (0.06.95 (15.HASETRI .2010) The following transactions were carried out with related parties in the ordinary course of business: ` in Crores (10 Million)
Nature of Transactions Associates Enterprise over which KMP is able to exercise Significant Influence 1.03 (0. JKLC .20) 2.7.04) 132.
66) 27.73) 7.30) 219.03 608. Segment Information for the year ended 31st March.66 11.21
20.06) 11.52 14.81
4304.K.81 2094.65 -
(0. SETHI VIKRAMPATI SINGHANIA Chairman Vice Chairman & Managing Director Managing Director
(0.95 5. wherever necessary.92 4810.10 -
245.49) 3.25 99.07 3.19) (0.73 3692.01 (0. Geographic segments of the Company are India.66 893.83 (14.47 213.53) 892.44 4570.17 85. Secretary
New Delhi.82 13.99 109.68 (82.53 336.47 56.“Segment Reporting” issued by the Institute of Chartered Accountants of India is not applicable. Mexico and Others as its risk and returns are affected predominantly by the fact that it operates in different countries or other geographical areas.C.78 186.64 7.70 1134. LODHA Partner
P RUSTAGI .47 2746.41) 62.09) 56.01 344.04 83.13 0.65) 3677.K.52 (0. India Mexico Others 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 4810.47 163.28 187.96 (49. Figures less than ` 50000 have been shown at actuals in bracket.25 (109.72 17.60 5.03 4585. the 24th May.72 1.16 893.32 (94. RAGHUPATI SINGHANIA BHARAT HARI SINGHANIA ARVIND SINGH MEWAR ASHOK U.88 0. SINGHANIA For LODHA & CO.01) (0.07 223.36 2.70 1134.56 (11.91
313.48 91.09 -
111.16.32 61.49) (0.49) 0.55 3. Chartered Accountants Dr.01) 3677. Tubes & Flaps.S. 18.43 2809. 2011
.10 (27.67 (30.21
17.72 795. KATRA BAKUL JAIN OM PRAKASH KHAITAN ARUN KUMAR BAJORIA S. OTHER INFORMATION Segment assets Segment liabilities Capital Expenditure Depreciation Non Cash Expenses other than Depreciation Notes: a) b) c) The Company has identified geographic segments as its primary segment and business segments as its secondary segment.58 38.86 4831.14 636.92 20.34 (88.36 65.
As per our report of even date H.71) 7.01 0. Therefore.52
91. reporting as required under Accounting Standard (AS-17) .20) 4.01) Total 2010-11 2009-10 5945. Figures pertaining to subsidiary companies have been reclassified wherever necessary to bring them in line with the parent company’s Financial Statement.25 334.04 (93.47 786.66 417.06) 1.79 18.41 (0.68 3552. Business segments comprise of only one segment namely Tyre.20) (0.53 (0.15 -
67.11 0.59 14.53) 5945. REVENUE External Sales Inter segment Sales Total Sales Other Income Total Revenue 2. RESULTS Segment result (PBIT) Interest Expenses Unrealized Exchange Fluctuation on Foreign Currency Borrowings of Subsidiaries Profit / (Loss) before Tax Income Taxes Profit / (Loss) after Tax Share of Profit in Associates Net Profit 3.27 194.42 1152.36) (115.89 5984.45 4571.87 20.21) 163.87 23.78 (19.71 7. 19.32 3486. Figures for the previous year have been regrouped / rearranged / recast.11 (0.34 2703.35) 61.74 4.97 3446. 2011 Information about Primary Geographical Segments: ` in Crores (10 Million)
04 142.32) 6.34 (0.06) (259.48 (249. KATRA BAKUL JAIN OM PRAKASH KHAITAN ARUN KUMAR BAJORIA S.30 (42.26 3.96 (181.09) 90.Unrealised Translation gain / (loss) on Foreign Currency balances Total
As per our report of even date H.80 (0.30 (0. LODHA Partner
P RUSTAGI .48) (132.48) 247.99
Dr.75 0.28 39.09) 7.63) (121. SETHI VIKRAMPATI SINGHANIA
Vice Chairman & Managing Director Managing Director
N.87) 320.83 (42.10 (36. Secretary
New Delhi.CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31st March.25 526.33 0.70) 119.Balances with Banks .K.64
78. RAGHUPATI SINGHANIA BHARAT HARI SINGHANIA ARVIND SINGH MEWAR ASHOK U.58) 115.51 (297.99
51.34) 0.93 0.09) 90.04) (13.96
` in Crores (10 Million)
2009-2010 313.83 (3. 2011
.59 23.01 (175.33 (51. Cheques on hand and Remittances in transit .63 114.34) 210.38 0.39 59. the 24th May.49) (3.27) 1.95) 1.85) 564.00) (349.50) (1.97 (272.K.21 (8.39) 1.81 (62.08) 728.S. CASH FLOW FROM INVESTING ACTIVITIES: Purchase of Fixed Assets Sale of Fixed Assets Movement in Loan Purchase of Investments Interest received Dividend received Net Cash used in Investing activities C.74 51.79 0. 2011 A.20 627.68 35. CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from borrowings Repayment of borrowings Interest Paid Dividend paid (including dividend tax) Net cash from / (used in) Financing activities Net increase in cash and cash equivalents Cash and Cash equivalents as at the beginning of the year Foreign Currency Translation gain / (loss) on Cash and Cash equivalents Cash and Cash equivalents as at the end of the year Notes: Cash and Cash Equivalents Include: .15) (72.02 90.32) 341.24) (16. SINGHANIA For LODHA & CO.13 (10.C.32) (7. Chartered Accountants
2010-2011 111.Cash. CASH FLOW FROM OPERATING ACTIVITIES: Net profit / (loss) before tax and extraordinary items Adjustment for: Depreciation Transferred from capital reserve Interest Expenses (Profit) / loss on sale of assets (Net) Deferred revenue expenditure written off Foreign Exchange Fluctuation Foreign Currency Translation gain / (loss) on Consolidation Diminution in value of Investments (` 41746) Interest / Dividend received Provision for Doubtful Debts / Advances & Balances written off Earlier Year Provisions no longer required Operating Profit before working capital changes (Increase) / Decrease in Trade and Other Receivables (Increase) / Decrease in Inventories Increase / (Decrease) in Trade Payables Cash generated from Operations Direct taxes (net) Net Cash from Operating activities B.03 (4.82) 7.66) 307.63 114.99 0.90) 39.77 (557.01 (292.89 0.10 5.
0. (JKTSA erstwhile Sunrise Hold Co.06
3.FINANCIAL INFORMATION OF SUBSIDIARY COMPANIES
Sl. K. Name of the Subsidiary Company Share Capital Reserves & Surplus/ (Accumulated Losses) (0.05
3.A.36 1. Asia Pacific Ltd.V. 01.00 26.16
9. No.34) Total Assets Total Liabilities Details of Turnover Investments including (other than other investment income in Subsidiary Companies) 0.84 25.72
0. Compañía Inmobiliaria Norida.01
1.84 25.) JK Tornel.
0. S.f. International Ltd.2010) (Subs.11
0. De C. De C.09
31. S. De C. of JKTSA) 14. (Subs.71 0.77
6.95 0.A. 5. De C. Asia Pacific Ltd.A.) Lankros Holdings Ltd. 6. of JKTSA) (* ` 2056)
6. S.. General de Inmuebles Industriales. S.21 -
` in Crores (10 Million)
Profit / Income (Loss) Tax before expense taxation Profit / Proposed (Loss) Dividend after taxation
1. De C. of India.39
0. Asia Pacific (S) Pte.01) (0. 2011. of JKTSA) 12. (Subs.31
0.16) (0. De C.A.V.A.) Comercializadora América Universal. S. of Lankros Holdings Ltd.26 121.V.01 1. De C. (Subs.16) (0. S. De C.35 (1.97
3. However. Ltd.71) 295. (ETSA) (merged with JKTSA w. of Sunrise Hold Co. De C.) Empresas Tornel. (Subs. of J.48
0.A. 4.63 0.A.11) (0. Compañía Hulera Tornel.01 1. K.V.75
(151. De C.66
7. of Sarvi Holdings Switzerland AG. De C.55
21.00 26. S.11) (0.68
Converted at exchange rates as applicable.34 26.
.25 148. S.56
0. New Delhi vide its General Circular No. (Subs.V. The Company has complied with the conditions as stipulated by Ministry of Corporate Affairs.1118. S.56)
64..A. annual accounts of the subsidiary companies and the related detailed information will be made available to the investors of the Company and its subsidiaries seeking such information at any point of time. S.V. of JKTSA) 11.31 27.87
0.A. whereby direction u/s 212(8) of the Companies Act.39
566. 2/2011 dated 8th February. (Subs. 3.
522. of JKTSA)
0. Gintor Administración.48
0. Hules y Procesos Tornel.52 566.34
0. of JKTSA) Compañía Hulera Tacuba. K.04
9.A.36 1.) (Subs.04
0. of JKTSA) 13. The annual accounts of the subsidiary companies are available for inspection by any investor at the Head Office of the Company and the concerned subsidiary. J.48
148. 2. 1956 was issued granting general exemption from attaching the Accounts of subsidiaries of the Company. Sarvi Holdings Switzerland AG. Govt.27